1. Assembly Bill No. 318–Assemblywoman Buckley

CHAPTER........

AN ACT relating to local government; authorizing a local government to donate certain

personal property to a governmental entity for certain purposes; revising the

provisions governing the conveyance of certain property owned by a local

government to a nonprofit organization for use as affordable housing; and providing

other matters properly relating thereto.

 

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

Section 1. NRS 244.1505 is hereby amended to read as follows:

  1. 244.1505 1. A board of county commissioners may expend money
  1. for any purpose which will provide a substantial benefit to the inhabitants
  1. of the county. The board may grant all or part of the money to a nonprofit
  1. organization created for religious, charitable or educational purposes to be
  1. expended for the selected purpose.
  1. 2. A board of county commissioners or its authorized representative
  1. may donate:
  1. (a) Commodities, supplies, materials and equipment that the board
  1. determines to have reached the end of their useful lives; and
  1. (b) Stolen or embezzled property for which the county treasurer has
  1. obtained an order authorizing him to donate the property pursuant to
  1. subsection 6 of NRS 179.165,
  1. to a nonprofit organization created for religious, charitable or educational
  1. purposes [.] or to another governmental entity, to be used for any purpose
  1. which will provide a substantial benefit to the inhabitants of the county.
  1. 3. A grant or donation to a nonprofit organization created for religious,
  1. charitable or educational purposes and a donation to a governmental
  1. entity pursuant to this section must be made by resolution. The resolution
  1. must specify:
  1. (a) The purpose of the grant or donation;
  1. (b) If applicable, the maximum amount to be expended from the grant;
  1. and
  1. (c) Any conditions or other limitations upon the expenditure of the grant
  1. or the use of the donated property.
  1. 4. As used in this section:
  1. (a) "Authorized representative" has the meaning ascribed to it in NRS
  1. 332.025.
  1. (b) "Nonprofit organization created for religious, charitable or
  1. educational purposes" means an organization that meets the requirements
  1. set forth in NRS 372.3261.

Sec. 2. NRS 244.287 is hereby amended to read as follows:

  1. 244.287 1. A nonprofit organization may submit to a board of county
  1. commissioners an application for conveyance of property that is owned by
  1. the county if the property was:
  1. (a) Received by donation for the use and benefit of the county pursuant
  1. to NRS 244.270.
  1. (b) Purchased by the county pursuant to NRS 244.275.
  1. 2. [If a county that receives an application for conveyance pursuant to
  1. subsection 1 has a planning commission, the board of county
  1. commissioners shall refer the application to the planning commission. The
  1. planning commission shall consider the application and submit its
  1. recommendation to the board.
  1. 3.] Before the board of county commissioners makes a determination
  1. on such an application for conveyance, it shall hold at least one public
  1. hearing on the application. Notice of the time, place and specific purpose of
  1. the hearing must be:
  1. (a) Published at least once in a newspaper of general circulation in the
  1. county.
  1. (b) Mailed to all owners of record of real property which is located not
  1. more than 300 feet from the property that is proposed for conveyance.
  1. (c) Posted in a conspicuous place on the property that is proposed for
  1. conveyance.
  1. The hearing must be held not fewer than 10 days but not more than 40 days
  1. after the notice is published, mailed and posted in accordance with this
  1. subsection.
  1. [4.] 3. The board of county commissioners may approve such an
  1. application for conveyance if the nonprofit organization demonstrates to
  1. the satisfaction of the board that the organization or its assignee will use
  1. the property to develop affordable housing for families whose income at
  1. the time of application for such housing does not exceed 80 percent of the
  1. median gross income for families residing in the same county, as that
  1. percentage is defined by the United States Department of Housing and
  1. Urban Development. If the board of county commissioners receives more
  1. than one application for conveyance of the property, the board must give
  1. priority to an application [for conveyance] of a nonprofit organization that
  1. demonstrates to the satisfaction of the board that the organization or its
  1. assignee will use the property to develop affordable housing for persons
  1. who are disabled or elderly.
  1. [5.] 4. If the board of county commissioners approves an application
  1. for conveyance, it may convey the property to the nonprofit organization
  1. without consideration. Such a conveyance must not be in contravention of
  1. any condition in a gift or devise of the property to the county.
  1. [6.] 5. As a condition to the conveyance of the property pursuant to
  1. subsection [5,] 4, the board of county commissioners shall enter into an
  1. agreement with the nonprofit [corporation that will ensure the affordability
  1. of any housing constructed on] organization that requires the nonprofit
  2. organization or its assignee to use the property [.] to provide affordable
  1. housing for at least 50 years. If the nonprofit organization or its assignee
  1. fails to use the property to provide affordable housing pursuant to the
  1. agreement, the board of county commissioners may take reasonable
  1. action to return the property to use as affordable housing, including,
  1. without limitation:
  1. (a) Repossessing the property from the nonprofit organization or its
  1. assignee.
  1. (b) Transferring ownership of the property from the nonprofit
  1. organization or its assignee to another person or governmental entity that
  1. will use the property to provide affordable housing.
  1. 6. The agreement required by subsection 5 must [provide that the
  1. property automatically reverts to the county if, at any time after the date of
  1. conveyance pursuant to subsection 5,] be recorded in the office of the
  1. county recorder of the county in which the property is located and must
  1. specify:
  1. (a) The number of years for which the nonprofit organization or its
  1. assignee must use the property to provide affordable housing; and
  1. (b) The action that the board of county commissioners will take if the
  1. nonprofit [corporation] organization or its assignee fails to use the
  1. property to provide affordable housing [on the property.] pursuant to the
  1. agreement.
  1. 7. A board of county commissioners that has conveyed property
  1. pursuant to subsection [5] 4 shall:
  1. (a) Prepare annually a list which includes a description of all property
  1. that was conveyed to a nonprofit organization pursuant to this section; and
  1. (b) Include the list in the annual audit of the county which is conducted
  1. pursuant to NRS 354.624.
  1. 8. If, 5 years after the date of a conveyance pursuant to subsection [5,]
  1. 4, a nonprofit organization or its assignee has not commenced construction
  1. of affordable housing, or entered into such contracts as are necessary to
  1. commence the construction of affordable housing, the property that was
  1. conveyed automatically reverts to the county.
  1. 9. A board of county commissioners may subordinate the interest of
  1. the county in property conveyed pursuant to subsection 4 to a first or
  1. subsequent holder of a mortgage on that property to the extent the board
  1. deems necessary to promote investment in the construction of affordable
  1. housing.
  1. 10. As used in this section, unless the context otherwise requires,
  1. "nonprofit organization" means an organization that is recognized as
  1. exempt pursuant to 26 U.S.C. § 501(c)(3).

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

  1. 268.058 1. A nonprofit organization may submit to the governing
  1. body of a city an application for conveyance of property that is owned by
  1. the city if the property was purchased or received by the city pursuant to
  1. NRS 268.008.
  2. 2. [If a city that receives an application for conveyance pursuant to
  1. subsection 1 has a planning commission, the governing body shall refer the
  1. application to the planning commission. The planning commission shall
  1. consider the application and submit its recommendation to the governing
  1. body.
  1. 3.] Before the governing body makes a determination on such an
  1. application for conveyance, it shall hold at least one public hearing on the
  1. application. Notice of the time, place and specific purpose of the hearing
  1. must be:
  1. (a) Published at least once in a newspaper of general circulation in the
  1. city.
  1. (b) Mailed to all owners of record of real property which is located not
  1. more than 300 feet from the property that is proposed for conveyance.
  1. (c) Posted in a conspicuous place on the property that is proposed for
  1. conveyance.
  1. The hearing must be held not fewer than 10 days but not more than 40 days
  1. after the notice is published, mailed and posted in accordance with this
  1. subsection.
  1. [4.] 3. The governing body may approve such an application for
  1. conveyance if the nonprofit organization demonstrates to the satisfaction of
  1. the governing body that the organization or its assignee will use the
  1. property to develop affordable housing for families whose income at the
  1. time of application for such housing does not exceed 80 percent of the
  1. median gross income for families residing in the same city, as that
  1. percentage is defined by the United States Department of Housing and
  1. Urban Development. If the governing body receives more than one
  1. application for conveyance of the property, the governing body must give
  1. priority to an application [for conveyance] of a nonprofit organization that
  1. demonstrates to the satisfaction of the governing body that the organization
  1. or its assignee will use the property to develop affordable housing for
  1. persons who are disabled or elderly.
  1. [5.] 4. If the governing body approves an application for conveyance, it
  1. may convey the property to the nonprofit organization without
  1. consideration. Such a conveyance must not be in contravention of any
  1. condition in a gift or devise of the property to the city.
  1. [6.] 5. As a condition to the conveyance of the property pursuant to
  1. subsection [5,] 4, the governing body shall enter into an agreement with the
  1. nonprofit [corporation that will ensure the affordability of any housing
  1. constructed on] organization that requires the nonprofit organization or
  1. its assignee to use the property [.] to provide affordable housing for at
  1. least 50 years. If the nonprofit organization or its assignee fails to use the
  1. property to provide affordable housing pursuant to the agreement, the
  1. governing body may take reasonable action to return the property to use
  1. as affordable housing, including, without limitation:
  1. (a) Repossessing the property from the nonprofit organization or its
  1. assignee.
  2. (b) Transferring ownership of the property from the nonprofit
  1. organization or its assignee to another person or governmental entity that
  1. will use the property to provide affordable housing.
  1. 6. The agreement required by subsection 5 must [provide that the
  1. property automatically reverts to the city if, at any time after the date of
  1. conveyance pursuant to subsection 5,] be recorded in the office of the
  1. county recorder of the county in which the property is located and must
  1. specify:
  1. (a) The number of years for which the nonprofit organization or its
  1. assignee must use the property to provide affordable housing; and
  1. (b) The action that the governing body will take if the nonprofit
  1. [corporation] organization or its assignee fails to use the property to
  1. provide affordable housing [on the property.] pursuant to the agreement.
  1. 7. A governing body that has conveyed property pursuant to subsection
  1. [5] 4 shall:
  1. (a) Prepare annually a list which includes a description of all property
  1. conveyed to a nonprofit organization pursuant to this section; and
  1. (b) Include the list in the annual audit of the city which is conducted
  1. pursuant to NRS 354.624.
  1. 8. If, 5 years after the date of a conveyance pursuant to subsection [5,]
  1. 4, a nonprofit organization or its assignee has not commenced construction
  1. of affordable housing, or entered into such contracts as are necessary to
  1. commence the construction of affordable housing, the property that was
  1. conveyed automatically reverts to the city.
  1. 9. A governing body may subordinate the interest of the city in
  1. property conveyed pursuant to subsection 4 to a first or subsequent
  1. holder of a mortgage on that property to the extent the governing body
  1. deems necessary to promote investment in the construction of affordable
  1. housing.
  1. 10. As used in this section, unless the context otherwise requires,
  1. "nonprofit organization" means an organization that is recognized as
  1. exempt pursuant to 26 U.S.C. § 501(c)(3).

Sec. 4. Section 5 of Senate Bill No. 139 of this session is hereby

amended to read as follows:

Sec. 5. Chapter 268 of NRS is hereby amended by adding

thereto a new section to read as follows:

1. The governing body of a city may expend money for any

purpose that will provide a substantial benefit to the inhabitants of

the city. The governing body may grant all or part of the money to a

nonprofit organization created for religious, charitable or

educational purposes to be expended for a selected purpose.

2. The governing body of a city or its authorized representative

may donate commodities, supplies, materials and equipment that the

governing body determines have reached the end of their useful

lives to a nonprofit organization created for religious, charitable or

educational purposes [.] or to another governmental entity, to be

used for any purpose which will provide a substantial benefit to

the inhabitants of the city.

3. A grant or donation to a nonprofit organization created for

religious, charitable or educational purposes and a donation to a

governmental entity pursuant to this section must be made by

resolution. The resolution must specify:

(a) The purpose of the grant or donation;

(b) If applicable, the maximum amount to be expended from the

grant; and

(c) Any conditions or other limitations on the expenditure of the

grant or the use of the donated property.

4. As used in this section:

(a) "Authorized representative" has the meaning ascribed to it in

NRS 332.025.

(b) "Nonprofit organization created for religious, charitable or

educational purposes" means an organization that meets the

requirements set forth in NRS 372.3261.

Sec. 5. This act becomes effective upon passage and approval.

~