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 244.1505 is hereby amended to read as follows:

1-2 244.1505 1. A board of county commissioners may expend money

1-3 for any purpose which will provide a substantial benefit to the inhabitants

1-4 of the county. The board may grant all or part of the money to a nonprofit

1-5 organization created for religious, charitable or educational purposes to be

1-6 expended for the selected purpose.

1-7 2. A board of county commissioners or its authorized representative

1-8 may donate:

1-9 (a) Commodities, supplies, materials and equipment that the board

1-10 determines to have reached the end of their useful lives; and

1-11 (b) Stolen or embezzled property for which the county treasurer has

1-12 obtained an order authorizing him to donate the property pursuant to

1-13 subsection 6 of NRS 179.165,

1-14 to a nonprofit organization created for religious, charitable or educational

1-15 purposes [.] or to another governmental entity, to be used for any purpose

1-16 which will provide a substantial benefit to the inhabitants of the county.

2-1 3. A grant or donation to a nonprofit organization created for religious,

2-2 charitable or educational purposes and a donation to a governmental

2-3 entity pursuant to this section must be made by resolution. The resolution

2-4 must specify:

2-5 (a) The purpose of the grant or donation;

2-6 (b) If applicable, the maximum amount to be expended from the grant;

2-7 and

2-8 (c) Any conditions or other limitations upon the expenditure of the grant

2-9 or the use of the donated property.

2-10 4. As used in this section:

2-11 (a) "Authorized representative" has the meaning ascribed to it in NRS

2-12 332.025.

2-13 (b) "Nonprofit organization created for religious, charitable or

2-14 educational purposes" means an organization that meets the requirements

2-15 set forth in NRS 372.3261.

2-16 Sec. 2. NRS 244.287 is hereby amended to read as follows:

2-17 244.287 1. A nonprofit organization may submit to a board of county

2-43 the satisfaction of the board that the organization or its assignee will use

3-1 the property to develop affordable housing for families whose income at

3-2 the time of application for such housing does not exceed 80 percent of the

3-3 median gross income for families residing in the same county, as that

3-4 percentage is defined by the United States Department of Housing and

3-5 Urban Development. If the board of county commissioners receives more

3-6 than one application for conveyance of the property, the board must give

3-7 priority to an application [for conveyance] of a nonprofit organization that

3-8 demonstrates to the satisfaction of the board that the organization or its

3-9 assignee will use the property to develop affordable housing for persons

3-10 who are disabled or elderly.

3-11 [5.] 4. If the board of county commissioners approves an application

3-12 for conveyance, it may convey the property to the nonprofit organization

3-13 without consideration. Such a conveyance must not be in contravention of

3-14 any condition in a gift or devise of the property to the county.

3-15 [6.] 5. As a condition to the conveyance of the property pursuant to

3-16 subsection [5,] 4, the board of county commissioners shall enter into an

3-17 agreement with the nonprofit [corporation that will ensure the affordability

3-18 of any housing constructed on] organization that requires the nonprofit

3-19 organization or its assignee to use the property [.] to provide affordable

3-20 housing for at least 50 years. If the nonprofit organization or its assignee

3-21 fails to use the property to provide affordable housing pursuant to the

3-22 agreement, the board of county commissioners may take reasonable

3-23 action to return the property to use as affordable housing, including,

3-24 without limitation:

3-25 (a) Repossessing the property from the nonprofit organization or its

3-26 assignee.

3-27 (b) Transferring ownership of the property from the nonprofit

3-28 organization or its assignee to another person or governmental entity that

3-29 will use the property to provide affordable housing.

3-30 6. The agreement required by subsection 5 must [provide that the

3-31 property automatically reverts to the county if, at any time after the date of

3-32 conveyance pursuant to subsection 5,] be recorded in the office of the

3-33 county recorder of the county in which the property is located and must

3-34 specify:

3-35 (a) The number of years for which the nonprofit organization or its

3-36 assignee must use the property to provide affordable housing; and

3-37 (b) The action that the board of county commissioners will take if the

3-38 nonprofit [corporation] organization or its assignee fails to use the

3-39 property to provide affordable housing [on the property.] pursuant to the

3-40 agreement.

3-41 7. A board of county commissioners that has conveyed property

3-42 pursuant to subsection [5] 4 shall:

4-1 (a) Prepare annually a list which includes a description of all property

4-2 that was conveyed to a nonprofit organization pursuant to this section; and

4-3 (b) Include the list in the annual audit of the county which is conducted

4-4 pursuant to NRS 354.624.

4-5 8. If, 5 years after the date of a conveyance pursuant to subsection [5,]

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

4-7 of affordable housing, or entered into such contracts as are necessary to

4-8 commence the construction of affordable housing, the property that was

4-9 conveyed automatically reverts to the county.

4-10 9. A board of county commissioners may subordinate the interest of

4-11 the county in property conveyed pursuant to subsection 4 to a first or

4-12 subsequent holder of a mortgage on that property to the extent the board

4-13 deems necessary to promote investment in the construction of affordable

4-14 housing.

4-15 10. As used in this section, unless the context otherwise requires,

4-16 "nonprofit organization" means an organization that is recognized as

4-17 exempt pursuant to 26 U.S.C. § 501(c)(3).

4-18 Sec. 3. NRS 268.058 is hereby amended to read as follows:

4-19 268.058 1. A nonprofit organization may submit to the governing

4-43 the governing body that the organization or its assignee will use the

5-1 property to develop affordable housing for families whose income at the

5-2 time of application for such housing does not exceed 80 percent of the

5-3 median gross income for families residing in the same city, as that

5-4 percentage is defined by the United States Department of Housing and

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

5-6 application for conveyance of the property, the governing body must give

5-7 priority to an application [for conveyance] of a nonprofit organization that

5-8 demonstrates to the satisfaction of the governing body that the organization

5-9 or its assignee will use the property to develop affordable housing for

5-10 persons who are disabled or elderly.

5-11 [5.] 4. If the governing body approves an application for conveyance, it

5-12 may convey the property to the nonprofit organization without

5-13 consideration. Such a conveyance must not be in contravention of any

5-14 condition in a gift or devise of the property to the city.

5-15 [6.] 5. As a condition to the conveyance of the property pursuant to

5-16 subsection [5,] 4, the governing body shall enter into an agreement with the

5-17 nonprofit [corporation that will ensure the affordability of any housing

5-18 constructed on] organization that requires the nonprofit organization or

5-19 its assignee to use the property [.] to provide affordable housing for at

5-20 least 50 years. If the nonprofit organization or its assignee fails to use the

5-21 property to provide affordable housing pursuant to the agreement, the

5-22 governing body may take reasonable action to return the property to use

5-23 as affordable housing, including, without limitation:

5-24 (a) Repossessing the property from the nonprofit organization or its

5-25 assignee.

5-26 (b) Transferring ownership of the property from the nonprofit

5-27 organization or its assignee to another person or governmental entity that

5-28 will use the property to provide affordable housing.

5-29 6. The agreement required by subsection 5 must [provide that the

5-30 property automatically reverts to the city if, at any time after the date of

5-31 conveyance pursuant to subsection 5,] be recorded in the office of the

5-32 county recorder of the county in which the property is located and must

5-33 specify:

5-34 (a) The number of years for which the nonprofit organization or its

5-35 assignee must use the property to provide affordable housing; and

5-36 (b) The action that the governing body will take if the nonprofit

5-37 [corporation] organization or its assignee fails to use the property to

5-38 provide affordable housing [on the property.] pursuant to the agreement.

5-39 7. A governing body that has conveyed property pursuant to subsection

5-40 [5] 4 shall:

5-41 (a) Prepare annually a list which includes a description of all property

5-42 conveyed to a nonprofit organization pursuant to this section; and

6-1 (b) Include the list in the annual audit of the city which is conducted

6-2 pursuant to NRS 354.624.

6-3 8. If, 5 years after the date of a conveyance pursuant to subsection [5,]

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

6-5 of affordable housing, or entered into such contracts as are necessary to

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

6-7 conveyed automatically reverts to the city.

6-8 9. A governing body may subordinate the interest of the city in

6-9 property conveyed pursuant to subsection 4 to a first or subsequent

6-10 holder of a mortgage on that property to the extent the governing body

6-11 deems necessary to promote investment in the construction of affordable

6-12 housing.

6-13 10. As used in this section, unless the context otherwise requires,

6-14 "nonprofit organization" means an organization that is recognized as

6-15 exempt pursuant to 26 U.S.C. § 501(c)(3).

6-16 Sec. 4. Section 5 of Senate Bill No. 139 of this session is hereby

6-17 amended to read as follows:

6-18 Sec. 5. Chapter 268 of NRS is hereby amended by adding

6-19 thereto a new section to read as follows:

6-20 1. The governing body of a city may expend money for any

6-21 purpose that will provide a substantial benefit to the inhabitants of

6-22 the city. The governing body may grant all or part of the money to a

6-23 nonprofit organization created for religious, charitable or

6-24 educational purposes to be expended for a selected purpose.

6-25 2. The governing body of a city or its authorized representative

6-26 may donate commodities, supplies, materials and equipment that the

6-27 governing body determines have reached the end of their useful

6-28 lives to a nonprofit organization created for religious, charitable or

6-29 educational purposes [.] or to another governmental entity, to be

6-30 used for any purpose which will provide a substantial benefit to

6-31 the inhabitants of the city.

6-32 3. A grant or donation to a nonprofit organization created for

6-33 religious, charitable or educational purposes and a donation to a

6-34 governmental entity pursuant to this section must be made by

6-35 resolution. The resolution must specify:

6-36 (a) The purpose of the grant or donation;

6-37 (b) If applicable, the maximum amount to be expended from the

6-38 grant; and

6-39 (c) Any conditions or other limitations on the expenditure of the

6-40 grant or the use of the donated property.

6-41 4. As used in this section:

6-42 (a) "Authorized representative" has the meaning ascribed to it in

6-43 NRS 332.025.

7-1 (b) "Nonprofit organization created for religious, charitable or

7-2 educational purposes" means an organization that meets the

7-3 requirements set forth in NRS 372.3261.

7-4 Sec. 5. This act becomes effective upon passage and approval.