EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted. Green numbers along left margin indicate location on the printed bill (e.g., 5-15 indicates page 5, line 15).

1-1 Section 1. NRS 244.287 is hereby amended to read as follows:

1-2 244.287 1. A nonprofit organization may submit to a board of

1-14 on such an application for conveyance, it shall hold at least one public

2-1 hearing on the application. Notice of the time, place and specific purpose

2-2 of the hearing must be:

2-3 (a) Published at least once in a newspaper of general circulation in the

2-4 county.

2-5 (b) Mailed to all owners of record of real property which is located not

2-6 more than 300 feet from the property that is proposed for conveyance.

2-7 (c) Posted in a conspicuous place on the property that is proposed for

2-8 conveyance.

2-9 The hearing must be held not fewer than 10 days but not more than 40

2-10 days after the notice is published, mailed and posted in accordance with

2-11 this subsection.

2-12 [4.] 3. The board of county commissioners may approve such an

2-13 application for conveyance if the nonprofit organization demonstrates to

2-14 the satisfaction of the board that the organization or its assignee will use

2-15 the property to develop affordable housing for families whose income at

2-16 the time of application for such housing does not exceed 80 percent of the

2-17 median gross income for families residing in the same county, as that

2-18 percentage is defined by the United States Department of Housing and

2-19 Urban Development. If the board of county commissioners receives more

2-20 than one application for conveyance of the property, the board must give

2-21 priority to an application [for conveyance] of a nonprofit organization that

2-22 demonstrates to the satisfaction of the board that the organization or its

2-23 assignee will use the property to develop affordable housing for persons

2-24 who are disabled or elderly.

2-25 [5.] 4. If the board of county commissioners approves an application

2-26 for conveyance, it may convey the property to the nonprofit organization

2-27 without consideration. Such a conveyance must not be in contravention of

2-28 any condition in a gift or devise of the property to the county.

2-29 [6.] 5. As a condition to the conveyance of the property pursuant to

2-30 subsection [5,] 4, the board of county commissioners shall enter into an

2-31 agreement with the nonprofit [corporation that will ensure the affordability

2-32 of any housing constructed on] organization that requires the nonprofit

2-33 organization or its assignee to use the property [.] to provide affordable

2-34 housing for at least 50 years. If the nonprofit organization or its assignee

2-35 fails to use the property to provide affordable housing pursuant to the

2-36 agreement, the board of county commissioners may take reasonable

2-37 action to return the property to use as affordable housing, including,

2-38 without limitation:

2-39 (a) Repossessing the property from the nonprofit organization or its

2-40 assignee.

2-41 (b) Transferring ownership of the property from the nonprofit

2-42 organization or its assignee to another person or governmental entity that

2-43 will use the property to provide affordable housing.

3-1 6. The agreement required by subsection 5 must [provide that the

3-2 property automatically reverts to the county if, at any time after the date of

3-3 conveyance pursuant to subsection 5,] be recorded in the office of the

3-4 county recorder of the county in which the property is located and must

3-5 specify:

3-6 (a) The number of years for which the nonprofit organization or its

3-7 assignee must use the property to provide affordable housing; and

3-8 (b) The action that the board of county commissioners will take if the

3-9 nonprofit [corporation] organization or its assignee fails to use the

3-10 property to provide affordable housing [on the property.] pursuant to the

3-11 agreement.

3-12 7. A board of county commissioners that has conveyed property

3-13 pursuant to subsection [5] 4 shall:

3-14 (a) Prepare annually a list which includes a description of all property

3-15 that was conveyed to a nonprofit organization pursuant to this section; and

3-16 (b) Include the list in the annual audit of the county which is conducted

3-17 pursuant to NRS 354.624.

3-18 8. If, 5 years after the date of a conveyance pursuant to subsection [5,]

3-19 4, a nonprofit organization or its assignee has not commenced construction

3-20 of affordable housing, or entered into such contracts as are necessary to

3-21 commence the construction of affordable housing, the property that was

3-22 conveyed automatically reverts to the county.

3-23 9. A board of county commissioners may subordinate the interest of

3-24 the county in property conveyed pursuant to subsection 4 to a first or

3-25 subsequent holder of a mortgage on that property to the extent the board

3-26 deems necessary to promote investment in the construction of affordable

3-27 housing.

3-28 10. As used in this section, unless the context otherwise requires,

3-29 "nonprofit organization" means an organization that is recognized as

3-30 exempt pursuant to 26 U.S.C. § 501(c)(3).

3-31 Sec. 2. NRS 268.058 is hereby amended to read as follows:

3-32 268.058 1. A nonprofit organization may submit to the governing

3-42 application for conveyance, it shall hold at least one public hearing on the

4-1 application. Notice of the time, place and specific purpose of the hearing

4-2 must be:

4-3 (a) Published at least once in a newspaper of general circulation in the

4-4 city.

4-5 (b) Mailed to all owners of record of real property which is located not

4-6 more than 300 feet from the property that is proposed for conveyance.

4-7 (c) Posted in a conspicuous place on the property that is proposed for

4-8 conveyance.

4-9 The hearing must be held not fewer than 10 days but not more than 40

4-10 days after the notice is published, mailed and posted in accordance with

4-11 this subsection.

4-12 [4.] 3. The governing body may approve such an application for

4-13 conveyance if the nonprofit organization demonstrates to the satisfaction of

4-14 the governing body that the organization or its assignee will use the

4-15 property to develop affordable housing for families whose income at the

4-16 time of application for such housing does not exceed 80 percent of the

4-17 median gross income for families residing in the same city, as that

4-18 percentage is defined by the United States Department of Housing and

4-19 Urban Development. If the governing body receives more than one

4-20 application for conveyance of the property, the governing body must give

4-21 priority to an application [for conveyance] of a nonprofit organization that

4-22 demonstrates to the satisfaction of the governing body that the organization

4-23 or its assignee will use the property to develop affordable housing for

4-24 persons who are disabled or elderly.

4-25 [5.] 4. If the governing body approves an application for conveyance,

4-26 it may convey the property to the nonprofit organization without

4-27 consideration. Such a conveyance must not be in contravention of any

4-28 condition in a gift or devise of the property to the city.

4-29 [6.] 5. As a condition to the conveyance of the property pursuant to

4-30 subsection [5,] 4, the governing body shall enter into an agreement with

4-31 the nonprofit [corporation that will ensure the affordability of any housing

4-32 constructed on] organization that requires the nonprofit organization or

4-33 its assignee to use the property [.] to provide affordable housing for at

4-34 least 50 years. If the nonprofit organization or its assignee fails to use the

4-35 property to provide affordable housing pursuant to the agreement, the

4-36 governing body may take reasonable action to return the property to use

4-37 as affordable housing, including, without limitation:

4-38 (a) Repossessing the property from the nonprofit organization or its

4-39 assignee.

4-40 (b) Transferring ownership of the property from the nonprofit

4-41 organization or its assignee to another person or governmental entity that

4-42 will use the property to provide affordable housing.

5-1 6. The agreement required by subsection 5 must [provide that the

5-2 property automatically reverts to the city if, at any time after the date of

5-3 conveyance pursuant to subsection 5,] be recorded in the office of the

5-4 county recorder of the county in which the property is located and must

5-5 specify:

5-6 (a) The number of years for which the nonprofit organization or its

5-7 assignee must use the property to provide affordable housing; and

5-8 (b) The action that the governing body will take if the nonprofit

5-9 [corporation] organization or its assignee fails to use the property to

5-10 provide affordable housing [on the property.] pursuant to the agreement.

5-11 7. A governing body that has conveyed property pursuant to

5-12 subsection [5] 4 shall:

5-13 (a) Prepare annually a list which includes a description of all property

5-14 conveyed to a nonprofit organization pursuant to this section; and

5-15 (b) Include the list in the annual audit of the city which is conducted

5-16 pursuant to NRS 354.624.

5-17 8. If, 5 years after the date of a conveyance pursuant to subsection [5,]

5-18 4, a nonprofit organization or its assignee has not commenced construction

5-19 of affordable housing, or entered into such contracts as are necessary to

5-20 commence the construction of affordable housing, the property that was

5-21 conveyed automatically reverts to the city.

5-22 9. A governing body may subordinate the interest of the city in

5-23 property conveyed pursuant to subsection 4 to a first or subsequent

5-24 holder of a mortgage on that property to the extent the governing body

5-25 deems necessary to promote investment in the construction of affordable

5-26 housing.

5-27 10. As used in this section, unless the context otherwise requires,

5-28 "nonprofit organization" means an organization that is recognized as

5-29 exempt pursuant to 26 U.S.C. § 501(c)(3).

5-30 Sec. 3. This act becomes effective upon passage and approval.