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. Chapter 244 of NRS is hereby amended by adding thereto a

1-2 new section to read as follows:

1-3 1. A board of county commissioners may donate personal property

1-4 that is owned by the county, but is no longer needed by the county, to a

1-5 private organization, not for profit, or another governmental entity to be

1-6 used for any purpose which will provide a substantial benefit to the

1-7 inhabitants of the county.

1-8 2. A donation to a private organization or governmental entity must

1-9 be made by resolution which must specify:

1-10 (a) The purpose of the donation; and

1-11 (b) Any conditions or other limitations upon its use.

2-1 Sec. 2. NRS 244.287 is hereby amended to read as follows:

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

2-42 any condition in a gift or devise of the property to the county.

3-1 [6.] 5. As a condition to the conveyance of the property pursuant to

3-2 subsection [5,] 4, the board of county commissioners shall enter into an

3-3 agreement with the nonprofit [corporation that will ensure the affordability

3-4 of any housing constructed on] organization that requires the nonprofit

3-5 organization or its assignee to use the property [.] to provide affordable

3-6 housing for at least 50 years. If the nonprofit organization or its assignee

3-7 fails to use the property to provide affordable housing pursuant to the

3-8 agreement, the board of county commissioners may take reasonable

3-9 action to return the property to use as affordable housing, including,

3-10 without limitation:

3-11 (a) Repossessing the property from the nonprofit organization or its

3-12 assignee.

3-13 (b) Transferring ownership of the property from the nonprofit

3-14 organization or its assignee to another person or governmental entity that

3-15 will use the property to provide affordable housing.

3-16 6. The agreement required by subsection 5 must [provide that the

3-17 property automatically reverts to the county if, at any time after the date of

3-18 conveyance pursuant to subsection 5,] be recorded in the office of the

3-19 county recorder of the county in which the property is located and must

3-20 specify:

3-21 (a) The number of years for which the nonprofit organization or its

3-22 assignee must use the property to provide affordable housing; and

3-23 (b) The action that the board of county commissioners will take if the

3-24 nonprofit [corporation] organization or its assignee fails to use the

3-25 property to provide affordable housing [on the property.] pursuant to the

3-26 agreement.

3-27 7. A board of county commissioners that has conveyed property

3-28 pursuant to subsection [5] 4 shall:

3-29 (a) Prepare annually a list which includes a description of all property

3-30 that was conveyed to a nonprofit organization pursuant to this section; and

3-31 (b) Include the list in the annual audit of the county which is conducted

3-32 pursuant to NRS 354.624.

3-33 8. If, 5 years after the date of a conveyance pursuant to subsection [5,]

3-34 4, a nonprofit organization or its assignee has not commenced construction

3-35 of affordable housing, or entered into such contracts as are necessary to

3-36 commence the construction of affordable housing, the property that was

3-37 conveyed automatically reverts to the county.

3-38 9. A board of county commissioners may subordinate the interest of

3-39 the county in property conveyed pursuant to subsection 4 to a first or

3-40 subsequent holder of a mortgage on that property to the extent the board

3-41 deems necessary to promote investment in the construction of affordable

3-42 housing.

4-1 10. As used in this section, unless the context otherwise requires,

4-2 "nonprofit organization" means an organization that is recognized as

4-3 exempt pursuant to 26 U.S.C. § 501(c)(3).

4-4 Sec. 3. Chapter 268 of NRS is hereby amended by adding thereto the

4-5 provisions set forth as sections 4 and 5 of this act.

4-6 Sec. 4. 1. A city council or other governing body of an

4-7 incorporated city may expend money for any purpose which will provide

4-8 a substantial benefit to the inhabitants of the city. The city council or

4-9 other governing body may grant all or part of the money to a private

4-10 nonprofit organization to be expended for the selected purpose.

4-11 2. A grant to a private organization must be made by resolution

4-12 which must specify:

4-13 (a) The purpose of the grant;

4-14 (b) The maximum amount to be expended from the grant; and

4-15 (c) Any conditions or other limitations upon its expenditure.

4-16 Sec. 5. 1. A city council or other governing body of an

4-17 incorporated city may donate personal property that is owned by the city,

4-18 but is no longer needed by the city, to a private nonprofit organization or

4-19 another governmental entity to be used for any purpose which will

4-20 provide a substantial benefit to the inhabitants of the city.

4-21 2. A donation to a private organization or governmental entity must

4-22 be made by resolution which must specify:

4-23 (a) The purpose of the donation; and

4-24 (b) Any conditions or other limitations upon its use.

4-25 Sec. 6. NRS 268.058 is hereby amended to read as follows:

4-26 268.058 1. A nonprofit organization may submit to the governing

4-42 more than 300 feet from the property that is proposed for conveyance.

5-1 (c) Posted in a conspicuous place on the property that is proposed for

5-2 conveyance.

5-3 The hearing must be held not fewer than 10 days but not more than 40 days

5-4 after the notice is published, mailed and posted in accordance with this

5-5 subsection.

5-6 [4.] 3. The governing body may approve such an application for

5-7 conveyance if the nonprofit organization demonstrates to the satisfaction of

5-8 the governing body that the organization or its assignee will use the

5-9 property to develop affordable housing for families whose income at the

5-10 time of application for such housing does not exceed 80 percent of the

5-11 median gross income for families residing in the same city, as that

5-12 percentage is defined by the United States Department of Housing and

5-13 Urban Development. If the governing body receives more than one

5-14 application for conveyance of the property, the governing body must give

5-15 priority to an application [for conveyance] of a nonprofit organization that

5-16 demonstrates to the satisfaction of the governing body that the organization

5-17 or its assignee will use the property to develop affordable housing for

5-18 persons who are disabled or elderly.

5-19 [5.] 4. If the governing body approves an application for conveyance, it

5-20 may convey the property to the nonprofit organization without

5-21 consideration. Such a conveyance must not be in contravention of any

5-22 condition in a gift or devise of the property to the city.

5-23 [6.] 5. As a condition to the conveyance of the property pursuant to

5-24 subsection [5,] 4, the governing body shall enter into an agreement with the

5-25 nonprofit [corporation that will ensure the affordability of any housing

5-26 constructed on] organization that requires the nonprofit organization or

5-27 its assignee to use the property [.] to provide affordable housing for at

5-28 least 50 years. If the nonprofit organization or its assignee fails to use the

5-29 property to provide affordable housing pursuant to the agreement, the

5-30 governing body may take reasonable action to return the property to use

5-31 as affordable housing, including, without limitation:

5-32 (a) Repossessing the property from the nonprofit organization or its

5-33 assignee.

5-34 (b) Transferring ownership of the property from the nonprofit

5-35 organization or its assignee to another person or governmental entity that

5-36 will use the property to provide affordable housing.

5-37 6. The agreement required by subsection 5 must [provide that the

5-38 property automatically reverts to the city if, at any time after the date of

5-39 conveyance pursuant to subsection 5,] be recorded in the office of the

5-40 county recorder of the county in which the property is located and must

5-41 specify:

5-42 (a) The number of years for which the nonprofit organization or its

5-43 assignee must use the property to provide affordable housing; and

6-1 (b) The action that the governing body will take if the nonprofit

6-2 [corporation] organization or its assignee fails to use the property to

6-3 provide affordable housing [on the property.] pursuant to the agreement.

6-4 7. A governing body that has conveyed property pursuant to subsection

6-5 [5] 4 shall:

6-6 (a) Prepare annually a list which includes a description of all property

6-7 conveyed to a nonprofit organization pursuant to this section; and

6-8 (b) Include the list in the annual audit of the city which is conducted

6-9 pursuant to NRS 354.624.

6-10 8. If, 5 years after the date of a conveyance pursuant to subsection [5,]

6-11 4, a nonprofit organization or its assignee has not commenced construction

6-12 of affordable housing, or entered into such contracts as are necessary to

6-13 commence the construction of affordable housing, the property that was

6-14 conveyed automatically reverts to the city.

6-15 9. A governing body may subordinate the interest of the city in

6-16 property conveyed pursuant to subsection 4 to a first or subsequent

6-17 holder of a mortgage on that property to the extent the governing body

6-18 deems necessary to promote investment in the construction of affordable

6-19 housing.

6-20 10. As used in this section, unless the context otherwise requires,

6-21 "nonprofit organization" means an organization that is recognized as

6-22 exempt pursuant to 26 U.S.C. § 501(c)(3).

6-23 Sec. 7. This act becomes effective upon passage and approval.