S.B. 552
Senate Bill No. 552–Committee on Government Affairs
March 26, 2001
____________
Referred to Committee on Government Affairs
SUMMARY—Makes various changes relating to assistance to finance housing. (BDR 25‑1448)
FISCAL NOTE: Effect on Local Government: No.
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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).
AN ACT relating to affordable housing; expanding the powers of the housing division of the department of business and industry; exempting the officers and employees of the housing division from the state personnel system; requiring the housing division to make certain information relating to obligors open for public inspection; exempting the housing division from the state purchasing act; exempting the housing division from certain provisions relating to the department of information technology; changing prerequisites for the housing division to provide financing for residential housing; changing requirements for use of money in the account for low-income housing; exempting transfers by a local government from the provisions of the Uniform Commercial Code—Secured Transactions; repealing certain powers of the housing division; removing certain requirements for loans made by the housing division; repealing certain provisions relating to bond reserve funds; removing certain requirements for bonds issued by the housing division; and providing other matters properly relating thereto.
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
1-1 Section 1. Chapter 319 of NRS is hereby amended by adding thereto
1-2 the provisions set forth as sections 2 to 7, inclusive, of this act.
1-3 Sec. 2. “Bond” means any bond, note, certificate, letter of credit,
1-4 commercial paper or other evidence of indebtedness.
1-5 Sec. 3. 1. The administrator may appoint such officers and
1-6 employees as the division may require for the performance of its duties.
1-7 For each officer and employee appointed, the administrator shall
1-8 prescribe the terms and conditions of employment, including, without
1-9 limitation, the salary and duties of each position, leaves of absence,
1-10 annual leave and sick and disability leave, within the limits of legislative
1-11 appropriations or authorizations.
1-12 2. Officers and employees of the division are exempt from the
1-13 provisions of chapter 284 of NRS.
2-1 Sec. 4. 1. Except as otherwise provided in subsection 2, upon
2-2 request, the division shall make available for public inspection
2-3 information provided to the division by an obligor to receive a loan from
2-4 the division.
2-5 2. Except as ordered by a court of competent jurisdiction or as
2-6 required by federal law, the division shall not, without the prior consent
2-7 of the obligor, disclose proprietary information or financial statements or
2-8 records of the obligor that are not otherwise available to the public
2-9 unless the obligor has:
2-10 (a) Requested in writing that the information, statements or records be
2-11 made public; or
2-12 (b) Furnished the information, statements or records for a purpose
2-13 other than obtaining a loan from the division.
2-14 3. As used in this section:
2-15 (a) “Obligor” means a person who receives a loan from the division
2-16 pursuant to this chapter.
2-17 (b) “Proprietary information” means any trade secret or other
2-18 information which, if disclosed to members of the general public, may
2-19 result in a competitive disadvantage to the obligor, including, without
2-20 limitation:
2-21 (1) Documents concerning the marketing or strategic planning of
2-22 the obligor;
2-23 (2) Data, studies and reports concerning the development of new
2-24 products or services; and
2-25 (3) Data that identify the share of the market of the obligor.
2-26 (c) “Trade secret” has the meaning ascribed to it in NRS 600A.030.
2-27 Sec. 5. 1. Upon the approval of the state board of finance, the
2-28 division may enter into instruments, agreements and other such
2-29 transactions for one or more of the following purposes:
2-30 (a) Reducing or modifying the amount or duration of any payment,
2-31 interest rate, spread or similar risk;
2-32 (b) Lowering the cost of borrowing when used in combination with
2-33 the issuance or carrying of bonds or investments; or
2-34 (c) Enhancing the relationship between risk and return with respect to
2-35 the programs of the division for lending or investment or any portion
2-36 thereof.
2-37 2. In entering into such instruments, agreements or other such
2-38 transactions, the division shall consider the creditworthiness of the
2-39 counterparties and other relevant criteria relating to the objectives of the
2-40 programs of the division.
2-41 Sec. 6. An action questioning the legality of any contract, loan,
2-42 agreement, indenture, mortgage, instrument or bond executed, adopted
2-43 or taken in connection with any bonds issued by the division may not be
2-44 initiated more than 30 days after:
2-45 1. The submission to the state board of finance of the findings of the
2-46 administrator pursuant to NRS 319.270; or
2-47 2. In the case of refunding bonds, the submission by the
2-48 administrator to the state board of finance of a statement equivalent to
2-49 the finding submitted pursuant to NRS 319.270.
3-1 Sec. 7. No recourse may be had for the payment of any bonds of the
3-2 division or for any claim based thereon or otherwise upon any action
3-3 authorizing their issuance or other instrument appertaining thereto,
3-4 against any member of the state board of finance, the administrator, the
3-5 chief financial officer of the division or other officer, agent or employee
3-6 of the division, past, present or future, either directly or indirectly
3-7 through the division, or otherwise, whether by virtue of any statute or
3-8 rule of law, or by the enforcement of any penalty or otherwise, all such
3-9 liability, if any, being by the acceptance of the bonds and as a part of the
3-10 consideration of their issuance specially waived and released.
3-11 Sec. 8. NRS 319.020 is hereby amended to read as follows:
3-12 319.020 The legislature finds and declares that:
3-13 1. There exists a serious shortage of decent, safe and sanitary housing
3-14 in this state available to persons and families of low and moderate income
3-15 and that many other persons and families are unable to secure or afford,
3-16 without assistance, decent, safe and sanitary housing.
3-17 2. [This condition is conducive to disease, crime, environmental
3-18 decline and poverty, impairs the economic value of large areas, which are
3-19 characterized by depreciated value, impaired investments, reduced capacity
3-20 to pay taxes, and lack of new] The lack of new housing development to
3-21 meet the needs of [area residents, and] the residents of this state is a
3-22 menace to the health, safety, morals and welfare of the residents of this
3-23 state.
3-24 3. [This condition results in a loss of population and further
3-25 deterioration accompanied by added costs to communities for creation of
3-26 new public facilities and services elsewhere.
3-27 4. It is difficult and uneconomic for individual owners independently
3-28 to remedy this condition.
3-29 5.] One major cause of [this condition] the lack of affordable housing
3-30 in this state has been recurrent shortages of money at affordable rates
3-31 from private sources, and such shortages have contributed to reductions in
3-32 construction of new residential housing and [have made the sale and
3-33 purchase of existing residential housing a virtual impossibility in certain
3-34 parts of the state. Other causes of this condition include increases in rental
3-35 values and decreases in the availability of federal funding for housing.
3-36 6.] to a chronic undersupply of existing housing that is affordable to
3-37 persons and families of low and moderate income.
3-38 4. The ordinary operations of private enterprise have not in the past
3-39 corrected these conditions.
3-40 [7.] 5. The reduction in housing construction has caused substantial
3-41 unemployment and underemployment in the construction industry which[,
3-42 together with the shortage of affordable housing, results in hardships,
3-43 wastes human resources, increases the public assistance burdens of the
3-44 state, impairs the security of family life,] impedes the economic and
3-45 physical development of the state and adversely affects the welfare, health
3-46 and prosperity of all the people of this state.
3-47 [8.] 6. A stable supply of adequate money for the financing and
3-48 provision of other assistance to obtain housing is required to encourage
3-49 new housing in an orderly and sustained manner, to increase the
4-1 availability of affordable housing, and thereby to reduce these detrimental
4-2 results.
4-3 7. Encouraging the construction, rehabilitation and improvement of
4-4 housing in central urban areas, including those areas undergoing
4-5 renewal, redevelopment and rehabilitation, would encourage persons of
4-6 all social and economic positions to inhabit urban areas, thereby
4-7 rendering these areas more economically self-sufficient, socially
4-8 balanced, and resistant to stagnation and deterioration.
4-9 8. Providing housing for teachers, public safety employees and other
4-10 public employees, including, without limitation, housing in areas in
4-11 which governments are a major employer, is essential to the efficient
4-12 provision of public services.
4-13 9. It is necessary to create a housing division in the department of
4-14 business and industry to encourage the investment of private capital and
4-15 stimulate the financing of housing through the use of public financing to
4-16 provide mortgage loans and to make loans to and purchase mortgage loans
4-17 from mortgage lenders, and to perform any other function authorized by
4-18 this chapter.
4-19 10. It is appropriate for the housing division to issue obligations
4-20 regardless of their characterization for the purposes of federal income
4-21 taxation by the United States Department of the Treasury.
4-22 11. All of the purposes set forth in this chapter are public purposes and
4-23 uses for which [public] money may be borrowed, expended, advanced,
4-24 loaned [or granted.] granted or guaranteed.
4-25 This chapter must be liberally construed to accomplish the public purposes
4-26 and to alleviate the detrimental conditions set forth in this section. The
4-27 provisions of this chapter are in addition to powers conferred by other
4-28 laws and must not be construed to restrict or limit the authority of the
4-29 division or the authority of any other public entity that is otherwise
4-30 granted by law to the division or other public entity.
4-31 Sec. 9. NRS 319.030 is hereby amended to read as follows:
4-32 319.030 As used in this chapter, unless the context otherwise
4-33 requires, the words and terms defined in NRS 319.040 to 319.135,
4-34 inclusive, and section 2 of this act, have the meanings ascribed to them in
4-35 those sections.
4-36 Sec. 10. NRS 319.060 is hereby amended to read as follows:
4-37 319.060 “Eligible family” means a person or family, selected without
4-38 regard to race, creed, national origin or sex, determined by the division to
4-39 require such assistance as is made available by this chapter on account of
4-40 insufficient personal or family income or on account of other special
4-41 needs after taking into consideration, without limitation, such factors as:
4-42 1. The amount of the total income of that person or family available
4-43 for housing needs;
4-44 2. The size of the family;
4-45 3. The cost and condition of housing facilities available;
4-46 4. The ability of the person or family to compete successfully in the
4-47 normal private housing market and to pay the amounts at which private
4-48 enterprise is providing decent, safe and sanitary housing;
5-1 5. If appropriate, standards established for various federal programs
5-2 determining eligibility based on income of those persons and families;
5-3 [and]
5-4 6. Service in the Armed Forces of the United States with a minimum
5-5 of 90 days on active duty [at some time between:
5-6 (a) April 21, 1898, and June 15, 1903;
5-7 (b) April 6, 1917, and November 11, 1918;
5-8 (c) December 7, 1941, and December 31, 1946;
5-9 (d) June 25, 1950, and January 31, 1955; or
5-10 (e) January 1, 1961, and May 7, 1975,
5-11 and at least 2 years’ continuous residence in Nevada immediately
5-12 preceding any application for assistance under this chapter.] ;
5-13 7. Service as a public employee in this state, including, without
5-14 limitation, service as a teacher and service as an employee whose duties
5-15 are related to public safety; and
5-16 8. Any other conditions relating to the person or family that the
5-17 division determines results in a lack of sufficient housing or creates
5-18 special housing needs.
5-19 Sec. 11. NRS 319.090 is hereby amended to read as follows:
5-20 319.090 “Lending institution” means any bank or trust company,
5-21 Federal National Mortgage Association approved mortgage banker,
5-22 national banking association, savings and loan association or other
5-23 financial institution or governmental agency of the United States which
5-24 [customarily] provides service or otherwise aids in the financing of
5-25 mortgages located in this state.
5-26 Sec. 12. NRS 319.130 is hereby amended to read as follows:
5-27 319.130 “Residential housing” means one or more new or existing
5-28 residential dwelling units financed pursuant to the provisions of this
5-29 chapter for one or both of the following primary [purpose of providing]
5-30 purposes:
5-31 1. Providing decent, safe and sanitary dwelling accommodations for
5-32 eligible families in need of housing[, including] ; or
5-33 2. Encouraging the construction and upgrading of housing in urban
5-34 areas, including those areas undergoing renewal, redevelopment and
5-35 rehabilitation.
5-36 The term includes, without limitation, any buildings, manufactured
5-37 homes, mobile homes, mobile home parks, land, improvements,
5-38 equipment, facilities, other real or personal property, or other related
5-39 nonhousing facilities which are necessary, convenient or desirable in
5-40 connection therewith, [and including but not limited to] including, without
5-41 limitation, streets, sewers, utilities, parks, site preparation, landscaping and
5-42 other nonhousing facilities such as administrative, community,
5-43 transportation, health, recreational, educational, commercial, retail, welfare
5-44 and public facilities which the division determines improve the quality of
5-45 the residential living [for eligible families.] being provided.
5-46 Sec. 13. NRS 319.140 is hereby amended to read as follows:
5-47 319.140 1. The division shall administer the provisions of this
5-48 chapter. The administrator may adopt, amend or rescind regulations,
6-1 consistent with the provisions of this chapter, appropriate to carry out its
6-2 purposes.
6-3 2. The administrator may make copies of all proceedings and other
6-4 records and documents of the division and issue certificates under the seal
6-5 of the division to the effect that the copies are true copies, and all persons
6-6 dealing with the division may rely upon such certificates.
6-7 3. The division has perpetual succession, subject to termination in
6-8 accordance with statute, and may [employ] :
6-9 (a) Sue and be sued in its own name, subject to chapter 41 of NRS;
6-10 (b) Adopt an official seal and alter the same at the pleasure of the
6-11 division;
6-12 (c) Maintain such offices at any place or places within the state as it
6-13 determines necessary to carry out the provisions of this chapter;
6-14 (d) Adopt, amend and repeal regulations as provided in chapter 233B
6-15 of NRS, consistent with the provisions of this chapter and appropriate to
6-16 carry out its purposes;
6-17 (e) Maintain records, proceedings and documents of the division,
6-18 subject to chapters 239, 239A and 239B of NRS and section 4 of this act;
6-19 (f) Make and execute contracts and all other instruments necessary or
6-20 convenient for the exercise of its powers and functions pursuant to this
6-21 chapter with any governmental agency, private corporation or other
6-22 entity, or natural person;
6-23 (g) Enter into agreements or other transactions with, and accept
6-24 grants from and cooperate with, any governmental agency or other
6-25 source in furtherance of the purposes of this chapter;
6-26 (h) Acquire real or personal property or any interest therein, by gift,
6-27 purchase, foreclosure, deed in lieu of foreclosure, lease, option or
6-28 otherwise;
6-29 (i) Hold, sell, assign, lease, encumber, mortgage, release or otherwise
6-30 dispose of any real or personal property or any interest therein, by public
6-31 or private sale, with or without public bidding, notwithstanding any other
6-32 provision of law;
6-33 (j) Employ or contract for the services of attorneys, accountants,
6-34 financial experts and any other advisers, employees, consultants and agents
6-35 as the administrator may determine to be necessary[.] ;
6-36 (k) Create or cause to be created legal entities, including nonprofit
6-37 corporations, grantor trusts and other legal entities, which the division
6-38 determines are necessary or convenient for the exercise of its powers and
6-39 duties pursuant to this chapter, provided, however, that the issuance of
6-40 bonds by any legal entity controlled by the division is subject to the
6-41 approval of the state board of finance;
6-42 (l) Provide advice, technical information, training and educational
6-43 services related to the development of housing, building technologies and
6-44 related fields;
6-45 (m) Conduct research, make grants, and promote the development of
6-46 housing, building technologies and related fields; and
6-47 (n) Do any and all things necessary or appropriate to carry out its
6-48 purposes and exercise the powers expressly granted pursuant to this
6-49 chapter.
7-1 4. Before September 1 of each even-numbered year , the division shall
7-2 submit a report of its activities for the biennium ending June 30 of that year
7-3 to the governor, state treasurer and the legislature. Each such report shall
7-4 set forth a complete operating and financial statement of the division
7-5 during such biennium. The division shall cause an audit of its books and
7-6 accounts to be made at least once in each fiscal year by a certified public
7-7 accountant. The certified public accountant may audit the division’s books
7-8 and accounts for consecutive audit periods as requested by the division.
7-9 5. The division is exempt from the provisions of chapter 333 of NRS.
7-10 Sec. 14. NRS 319.170 is hereby amended to read as follows:
7-11 319.170 1. Except as otherwise provided in NRS 319.500, the
7-12 division may:
7-13 [1.] (a) Establish such funds or accounts as may be necessary or
7-14 desirable for furtherance of the purposes of this chapter.
7-15 [2.] (b) Invest or deposit its money, subject to any agreement with
7-16 bondholders , [or noteholders,] and is not required to keep any of its money
7-17 in the state treasury. The provisions of chapters 355 and 356 of NRS do not
7-18 apply to such investments or deposits.
7-19 2. The division is hereby authorized to expend the money in the
7-20 funds or accounts established pursuant to subsection 1, subject to any
7-21 agreement with the holders of bonds:
7-22 (a) To the extent necessary for the payment of principal, interest,
7-23 redemption premiums and other carrying costs of the bonds of the
7-24 division; and
7-25 (b) To the extent approved by the state board of finance for the
7-26 payment of the costs of the issuance of bonds.
7-27 Sec. 15. NRS 319.173 is hereby amended to read as follows:
7-28 319.173 1. There is hereby created an advisory committee on
7-29 housing to review and provide to the director of the department of business
7-30 and industry and the administrator advice, recommendations and other
7-31 commentary regarding:
7-32 (a) The investment of money or issuance of obligations by the division.
7-33 (b) The development of new programs or the improvement of existing
7-34 programs of the division.
7-35 (c) The improvement of policies and procedures of the division,
7-36 including those relating to the dissemination of relevant information to
7-37 persons who participate in or are otherwise interested in programs of the
7-38 division.
7-39 (d) The administration of the account for low-income housing.
7-40 (e) Any other matters referred to the advisory committee by the director
7-41 or administrator.
7-42 2. The advisory committee consists of the director of the department of
7-43 business and industry or his representative, and eight members appointed
7-44 by the director. The director shall appoint to the advisory committee:
7-45 (a) One representative of an association of mortgage bankers in this
7-46 state, selected from a list of names submitted to the director by that
7-47 association.
7-48 (b) One representative of persons engaged in residential construction in
7-49 this state.
8-1 (c) One representative of banks or savings and loan associations in this
8-2 state who is knowledgeable about making mortgage loans.
8-3 (d) One member who is knowledgeable about the sale and marketing or
8-4 the management of real property in this state.
8-5 (e) One member who is knowledgeable about the development or
8-6 management of nonprofit housing in this state.
8-7 (f) One member who is knowledgeable about housing programs
8-8 sponsored, administered or supported by local governments in this state.
8-9 (g) One member who is knowledgeable about federal housing programs
8-10 administered by the division.
8-11 (h) One member who is an advocate of affordable housing.
8-12 The members of the advisory committee are not entitled to any additional
8-13 compensation for their service in that capacity.
8-14 3. The director of the department of business and industry or his
8-15 representative shall serve as the chairman of the advisory committee. The
8-16 advisory committee shall meet at least once each calendar quarter, and at
8-17 the call of the chairman or upon the written request of the administrator or
8-18 a majority of the members of the committee.
8-19 4. The administrator shall submit annually to the advisory committee
8-20 for its review, comment and recommendations a work plan for the
8-21 activities of the division for the succeeding calendar year. The work plan
8-22 must include:
8-23 (a) The expected needs for financing and anticipated demand for tax
8-24 credits and sources of funding for each of the programs administered by the
8-25 division.
8-26 (b) Strategies for meeting those needs and demands.
8-27 (c) A plan for resolving any anticipated problems in carrying out those
8-28 strategies.
8-29 (d) A plan for the allocation of the resources of the division, including
8-30 the allotment of its employees’ time, to carry out the work plan in such a
8-31 manner as to serve the entire area of the state adequately.
8-32 (e) Any other matters which are critical to the success of any programs
8-33 administered by the division.
8-34 5. [Before the:
8-35 (a) Investment of money of the division pursuant to NRS 319.171; or
8-36 (b) Submission of findings to the state board of finance pursuant to
8-37 subsection 4 of NRS 319.323,
8-38 the administrator shall submit a plan of investment or a plan of financing,
8-39 together with any proposed findings relating to that plan, to the advisory
8-40 committee for its review and comment.
8-41 6.] The administrator shall report to the advisory committee at least
8-42 once each calendar quarter on the activities of the division and the
8-43 implementation of the division’s work plan for that year.
8-44 Sec. 16. NRS 319.190 is hereby amended to read as follows:
8-45 319.190 [1.] The division may make, undertake commitments to
8-46 make and participate with lending institutions in the making of mortgage
8-47 loans, make temporary loans and advances in anticipation of mortgage
8-48 loans, and issue letters of credit [pursuant to subsection 2] to finance the
8-49 acquisition, construction [or] , development, renewal, redevelopment,
9-1 rehabilitation or refinancing of residential housing, including multifamily
9-2 housing[. Any loan made by the division pursuant to this section must be
9-3 insured or guaranteed unless it is financed by an issue of obligations of the
9-4 division that are insured or secured by surety bonds, letters of credit not
9-5 issued by the division, guaranties or other means of assuring repayment of
9-6 those obligations. Such loans may be made or letters of credit issued only
9-7 after a determination by the administrator that mortgage loans or letters of
9-8 credit are not otherwise available from private lenders upon reasonable
9-9 equivalent terms and conditions.
9-10 2. The division may issue a letter of credit only if sufficient reserves in
9-11 the funds established by the division are deposited in a separate account to
9-12 be used to pay any liabilities that may be incurred by issuing the letter of
9-13 credit. The aggregate amount of outstanding letters of credit issued by the
9-14 division must not exceed $5,000,000.] , within this state.
9-15 Sec. 17. NRS 319.200 is hereby amended to read as follows:
9-16 319.200 Any [insured] mortgage loan made by the division [shall:
9-17 1. Not exceed the amount permitted under the insurance program
9-18 under which the mortgage is insured.
9-19 2. Be] must be secured in such manner, be repaid in such period and
9-20 bear interest at [a] such rate or rates as are determined by the division .
9-21 [and permitted under the insurance program under which the mortgage is
9-22 insured. In addition to such interest charges, the division may charge and
9-23 collect such fees and charges, including reimbursement of the division’s
9-24 operating expenses, financing costs, service charges, insurance premiums
9-25 and mortgage insurance premiums as the division determines to be
9-26 reasonable.]
9-27 Sec. 18. NRS 319.210 is hereby amended to read as follows:
9-28 319.210 [1.] The division may:
9-29 [(a)] 1. Invest in, purchase or make commitments to purchase, and
9-30 take assignments from lending institutions of mortgage loans and
9-31 promissory notes accompanying such mortgage loans, including federally
9-32 insured mortgage loans or participations with lending institutions in such
9-33 promissory notes and mortgage loans, for the acquisition, construction,
9-34 development, renewal, redevelopment, rehabilitation[, purchase, leasing]
9-35 or refinancing of residential housing , including, without limitation,
9-36 multifamily housing, within this state[.
9-37 (b)] ; and
9-38 2. Sell, at public or private sale, with or without public bidding, any
9-39 mortgage loan, promissory note or other obligation held by the division.
9-40 [2. At or before the time of purchase, the lending institution shall
9-41 certify to the division with respect to all mortgage loans transferred to the
9-42 division:
9-43 (a) That the mortgage loans transferred to the division are for residential
9-44 housing for eligible families within this state; or
9-45 (b) That the proceeds of sale or its equivalent will be reinvested in
9-46 mortgage loans for residential housing for eligible families within this state
9-47 in an aggregate principal amount equal to the amount of such sale
9-48 proceeds.]
10-1 Sec. 19. NRS 319.220 is hereby amended to read as follows:
10-2 319.220 The division may:
10-3 1. Renegotiate, refinance or foreclose, or contract for the foreclosure
10-4 of, any mortgage in default;
10-5 2. Waive any default or consent to the modification of the terms of any
10-6 mortgage;
10-7 3. Commence any action to protect or enforce any right conferred upon
10-8 it by any law, mortgage, contract or other agreement;
10-9 4. Bid for and purchase property upon which it holds a mortgage at
10-10 any foreclosure or at any other sale, or acquire and take possession of any
10-11 such property;
10-12 5. Operate, manage, lease, dispose of and otherwise deal with such
10-13 property in such manner as may be necessary to protect the interest of the
10-14 division and the holders of its bonds[, notes] and other obligations; and
10-15 6. Consent to any modification with respect to rate of interest, time and
10-16 payment of any installment of principal or interest, security or any other
10-17 term of any contract, mortgage, mortgage loan, mortgage loan
10-18 commitment, contract or agreement of any kind to which the division is a
10-19 party, subject to any agreement with bondholders . [or noteholders.]
10-20 Sec. 20. NRS 319.230 is hereby amended to read as follows:
10-21 319.230 [1.] The division may:
10-22 [(a)] 1. Make loans to lending institutions under terms and conditions
10-23 requiring the proceeds of the loans to be used by the lending institutions for
10-24 the making of new mortgage loans for residential housing;
10-25 [(b)] 2. Purchase securities from lending institutions under terms and
10-26 conditions requiring that the securities finance mortgage loans for
10-27 residential housing; and
10-28 [(c)] 3. Require that loans to or securities purchased from lending
10-29 institutions be additionally secured as to payment of both principal and
10-30 interest by a pledge of and lien upon collateral security in such amounts
10-31 and consisting of such obligations, securities[,] and mortgage loans as the
10-32 administrator determines to be necessary to assure the payment of the loans
10-33 or securities purchased and the interest on them as they become due.
10-34 [2. The division may require in the case of any lending institution that
10-35 any required collateral be lodged with a bank or trust company, located
10-36 either within or outside the state, designated by the division as custodian
10-37 therefor. In the absence of this requirement, a lending institution shall, if
10-38 collateral is to be provided for the loan or securities purchased, upon
10-39 receipt of the proceeds from the division, enter into an agreement with the
10-40 division containing any provisions the division deems necessary to identify
10-41 adequately and maintain and service the collateral and providing that the
10-42 lending institution shall hold the collateral as trustee for the benefit of the
10-43 division and shall be held accountable as the trustee of an express trust for
10-44 the application and disposition thereof and the income therefrom solely to
10-45 the uses and purposes in accordance with the provisions of the agreement.
10-46 A copy of the agreement and any of its revisions or supplements, which
10-47 revisions or supplements may add to, delete from, or substitute items of
10-48 collateral pledged by the agreement, must be filed with the secretary of
10-49 state. The filing shall be deemed to perfect the security interest of the
11-1 division in the collateral and no filing, recording, possession or other action
11-2 required under any other law of this state is necessary, and the lien and
11-3 trust for the benefit of the division so created is binding from the time
11-4 made against all parties having any prior unperfected claim or claims of
11-5 any kind in tort, contract or otherwise or any subsequent security interests
11-6 against the lending institution. The division may also establish any
11-7 additional requirements the administrator deems necessary with respect to
11-8 the pledging, assigning, setting aside or holding of the collateral and the
11-9 making of substitutions for it or additions to it and the disposition of
11-10 income and receipts from it.
11-11 3. The division may collect, enforce the collection of and foreclose on
11-12 any collateral securing its loan to or purchase of securities from lending
11-13 institutions and acquire or take possession of the collateral and sell the
11-14 collateral at public or private sale, with or without public bidding, and
11-15 otherwise deal with the collateral as may be necessary to protect the
11-16 interest of the division in it, all subject to any agreement with bondholders
11-17 or noteholders.]
11-18 Sec. 21. NRS 319.250 is hereby amended to read as follows:
11-19 319.250 The division may procure insurance against any loss in
11-20 connection with its basic operations and in connection with its property
11-21 and other assets, including mortgages and mortgage loans, in such amounts
11-22 and from such insurers as it deems desirable.
11-23 Sec. 22. NRS 319.260 is hereby amended to read as follows:
11-24 319.260 The division shall not finance any residential housing unless,
11-25 [prior to] before such financing, the administrator finds that:
11-26 1. [There exists a shortage of decent, safe and sanitary housing at
11-27 rentals or prices which eligible families can afford within the general
11-28 housing market area as determined by the administrator.] Financing the
11-29 residential housing will assist in accomplishing one or more of the public
11-30 purposes specified in NRS 319.020.
11-31 2. Private enterprise and investment have been unable, without
11-32 assistance, to provide an adequate supply of [decent, safe and sanitary
11-33 housing in] residential housing or to provide such housing [market area] at
11-34 rentals or prices which [persons or families of low and moderate income
11-35 can afford or to provide sufficient mortgage financing for residential
11-36 housing for occupancy by such persons or families.] eligible families can
11-37 afford.
11-38 3. The proposed [residential housing] financing will increase the
11-39 supply or improve the quality of [decent, safe and sanitary housing for
11-40 eligible families.] residential housing.
11-41 4. The residential housing to be developed or assisted by the division
11-42 pursuant to the provisions of this chapter will be of public use and will
11-43 provide a public benefit.
11-44 5. The costs of issuing financing are reasonable.
11-45 6. The division’s estimates of its revenues from the financing of the
11-46 residential housing, together with all subsidies, grants or other financial
11-47 assistance from governmental agencies or other entities to be received in
11-48 connection with the residential housing, will be sufficient to pay the
11-49 amount estimated by the division as necessary for debt service on its [notes
12-1 and] bonds to be issued for the financing of the residential housing[.] , and
12-2 any agreements or instruments entered into by the division in connection
12-3 with such financing to reduce one or more risks related to such
12-4 financing are necessary or appropriate to their purposes.
12-5 Sec. 23. NRS 319.270 is hereby amended to read as follows:
12-6 319.270 1. Subject to the limitation imposed by [subsections 4 and
12-7 5,] subsection 4, the division may issue its negotiable [notes and] bonds in
12-8 such principal amount as the administrator determines to be necessary to
12-9 provide sufficient money for achieving any of its statutory purposes,
12-10 including the payment of interest on [notes and] bonds of the division,
12-11 establishment of bond reserve funds and other reserves to secure the [notes
12-12 and] bonds, and all other expenditures of the division necessary or
12-13 convenient to carry out its statutory purposes and powers.
12-14 2. [Subject to] Except as otherwise provided by any agreements with
12-15 holders of [notes or] bonds, all [notes and] bonds issued by the division are
12-16 special obligations of the division payable out of any revenues, money or
12-17 other assets of the division pledged thereto. The bonds do not constitute
12-18 the debt or indebtedness of the state within the meaning of any provision
12-19 or limitation of the constitution of this state or any statute of this state,
12-20 and do not constitute or give rise to a pecuniary liability of the state or a
12-21 charge against the general credit or taxing powers of this state. This
12-22 limitation must be plainly stated on the face of each bond.
12-23 3. In issuing the [notes and] bonds, the division acts as an agency or
12-24 instrumentality of the State of Nevada.
12-25 4. Before any [notes or] bonds may be issued pursuant to this section,
12-26 except those issued for the purpose of refunding outstanding [notes or]
12-27 bonds, the administrator must submit a copy of his finding of the
12-28 conditions prerequisite to the financing of residential housing under this
12-29 chapter to the state board of finance. If that board approves, the division
12-30 may proceed to issue its [notes or] bonds in the amount approved . [,
12-31 subject to the further limitation of subsection 5.
12-32 5. The aggregate principal amount of outstanding bonds, notes and
12-33 other obligations of the division must not exceed $2,000,000,000, of which
12-34 $100,000,000 must be allocated to veterans who qualify for loans under
12-35 this chapter, exclusive of any bonds, notes or obligations which have been
12-36 refunded. The establishment of this debt limitation does not prohibit the
12-37 division from issuing additional bonds, notes or other obligations if the
12-38 debt limitation is subsequently increased.]
12-39 Sec. 24. NRS 319.280 is hereby amended to read as follows:
12-40 319.280 1. The [notes and] bonds must be signed by the
12-41 administrator, or his designee, who may use a facsimile signature for this
12-42 purpose, must bear the date or dates of maturity and must mature at [such
12-43 a] the time or times [as] that the administrator determines. The bonds may
12-44 be issued [as serial bonds payable in annual installments or as term bonds
12-45 or as a combination thereof. The notes and bonds must] in such form, bear
12-46 interest at such [a] fixed or variable rate or rates, be in such
12-47 denominations, have such registration privileges, be executed in such [a]
12-48 manner, be payable in such [a] medium of payment, at such a place or
12-49 places within or outside of the state, and be subject to such terms of
13-1 redemption as the administrator determines. The [notes and] bonds of the
13-2 division may be sold by the division at public or private sale at such a price
13-3 or prices as the administrator determines except that no note, bond or other
13-4 obligation bond issued by the division may be initially distributed to the
13-5 public unless it has received a rating in one of the three highest rating
13-6 categories from a national rating service.
13-7 2. If the administrator whose signature appears on any [notes or] bonds
13-8 or coupons ceases to act in that capacity before the delivery of the [notes
13-9 or] bonds, his signature is valid and sufficient for all purposes as if he had
13-10 remained in office until their delivery.
13-11 3. The provisions of any other chapter of NRS that relates to the
13-12 issuance of bonds, including, without limitation, chapter 349 of NRS , do
13-13 not apply to [any bonds, notes or other obligations issued] the issuance of
13-14 bonds by the division under the provisions of this chapter.
13-15 Sec. 25. NRS 319.290 is hereby amended to read as follows:
13-16 319.290 The division in issuing any [notes or] bonds may contract
13-17 with the holders thereof as to:
13-18 1. Pledging all or any part of the revenues of the division to secure the
13-19 payment of the [notes or] bonds subject to such agreements with
13-20 [noteholders or] bondholders as may then exist.
13-21 2. Pledging all or any part of the assets of the division, including
13-22 mortgages and obligations securing such assets, to secure the payment of
13-23 the [notes or] bonds subject to such agreements with [noteholders or]
13-24 bondholders as may then exist.
13-25 3. The use and disposition of the gross income from mortgages owned
13-26 by the division and the payment of principal of mortgages owned by the
13-27 division.
13-28 4. The setting aside of reserves or sinking funds and the regulation and
13-29 disposition thereof.
13-30 5. Limitations on the purpose to which the proceeds of sale of [notes
13-31 or] bonds may be applied and pledging such proceeds to secure the
13-32 payment of the [notes or] bonds or of any issue thereof.
13-33 6. Limitations on the issuance of additional [notes or] bonds, the terms
13-34 upon which additional [notes or] bonds may be issued and secured, and the
13-35 refunding of outstanding or other [notes or] bonds.
13-36 7. The procedure, if any, by which the terms of any contract with
13-37 [noteholders or] bondholders may be amended or abrogated, the amount of
13-38 [notes or] bonds the holders of which must consent thereto, and the manner
13-39 in which such consent may be given.
13-40 8. Limitations on the amount of moneys to be expended by the
13-41 division for operating expenses of the division.
13-42 9. Vesting in a trustee or trustees such property, rights, powers and
13-43 duties in trust as the administrator may determine, which may include any
13-44 or all of the rights, powers and duties of the trustee appointed by the
13-45 bondholders pursuant to this chapter and limiting or abrogating the right of
13-46 the bondholders to appoint a trustee under this act or limiting the rights,
13-47 powers and duties of such trustee.
13-48 10. Defining the acts or omissions which [shall] constitute a default in
13-49 the obligations and duties of the division to the holders of the [notes or]
14-1 bonds and providing for the rights and remedies of the holders of the [notes
14-2 or] bonds in case of such default, including as a matter of right the
14-3 appointment of a receiver, but such rights and remedies shall not be
14-4 inconsistent with the general laws of this state and the other provisions of
14-5 this chapter.
14-6 11. Any other matters, of like or different character, which in any way
14-7 affect the security or protection of the holders of the [notes or] bonds or
14-8 the marketability of the bonds.
14-9 Any pledge made by the division is valid and binding from the time when
14-10 the pledge is made. [The] Notwithstanding any other provision of law, the
14-11 revenues, moneys or property so pledged and thereafter received by or on
14-12 behalf of the division are immediately subject to the lien of such pledge
14-13 without any physical delivery thereof or further act, and the lien of any
14-14 such pledge is valid and binding as against all persons having claims of any
14-15 kind in tort, contract or otherwise against the division, whether or not such
14-16 persons have notice thereof. Neither the proceedings of the division
14-17 relating to the bonds [or notes] nor any other instrument by which a pledge
14-18 is created need be recorded.
14-19 Sec. 26. NRS 319.300 is hereby amended to read as follows:
14-20 319.300 In the discretion of the administrator, bonds issued by the
14-21 division may be secured by a trust indenture or trust indentures by and
14-22 between the division and a corporate trustee, which may be any trust
14-23 company or bank having the power of a trust company within or outside
14-24 this state. Such trust indenture may contain such provisions for protecting
14-25 and enforcing the rights and remedies of the bondholders as may be
14-26 reasonable and proper and not in violation of law, including covenants
14-27 setting forth the duties of the division in relation to the exercise of its
14-28 statutory powers and the custody, safeguarding and application of all
14-29 moneys. The division may provide by such trust indenture for the payment
14-30 of the proceeds of the bonds and the revenues to the trustee under such
14-31 trust indenture or other depository, and for the method of disbursement
14-32 thereof, with such safeguards and restrictions as the administrator may
14-33 determine. All expenses incurred in carrying out such trust indenture may
14-34 be treated as part of the operating expenses of the division. Such trust
14-35 indenture may limit or abrogate the right of the holders of any bonds[,
14-36 notes or other obligations] of the division to appoint a trustee under this
14-37 chapter or limit the rights, powers and duties of such trustee.
14-38 Sec. 27. NRS 319.310 is hereby amended to read as follows:
14-39 319.310 The division may procure or agree to the procurement of
14-40 insurance or guarantees from any governmental agency or from any private
14-41 insurance company, of the payment of any bonds [or notes or any other
14-42 evidences of indebtedness thereof] issued by the division or by any lending
14-43 institution, and may pay premiums on such insurance.
14-44 Sec. 28. NRS 319.320 is hereby amended to read as follows:
14-45 319.320 1. The division, subject to such agreements with
14-46 [noteholders or] bondholders as may then exist, may, out of any money
14-47 available therefor, purchase its [notes or] bonds to retire and cancel them.
14-48 [The price must not exceed:
15-1 (a) The redemption price then applicable plus accrued interest to the
15-2 next interest payment thereon if the notes or bonds are then redeemable; or
15-3 (b) The redemption price applicable on the first date after the purchase
15-4 upon which the notes or bonds become subject to redemption plus accrued
15-5 interest to that date if the notes or bonds are not redeemable.]
15-6 2. The division may, in connection with any remarketing or refunding
15-7 of its [notes or] bonds or for any of its purposes, acquire, or cause to be
15-8 acquired, its [notes or] bonds without retiring and canceling them.
15-9 Sec. 29. NRS 319.325 is hereby amended to read as follows:
15-10 319.325 The division may:
15-11 1. Provide that any bonds [or notes] issued by the division be insured
15-12 or be secured by surety bonds, letters of credit not issued by the division,
15-13 guaranties or other means of assuring repayment of such bonds . [or notes.]
15-14 2. Require that any loans, including a mortgage loan, made or
15-15 purchased by the division be insured or be secured by surety bonds, letters
15-16 of credit not issued by the division, guaranties or other means of assuring
15-17 repayment of such loans.
15-18 3. Pay the fees, charges, premiums and any other costs associated with
15-19 obtaining and maintaining insurance, or other means of assuring
15-20 repayment, from any available money of the division including premiums,
15-21 fees and charges assessed against sponsors, lending institutions or other
15-22 participants or beneficiaries of the programs of the division.
15-23 Sec. 30. NRS 319.327 is hereby amended to read as follows:
15-24 319.327 The division may:
15-25 1. Waive, by such means as the division deems appropriate, any
15-26 exemption from federal income taxation of interest on the division’s bonds
15-27 [, notes or other obligations] provided by 26 U.S.C. §§ 103 and 141 to 149,
15-28 inclusive, and related portions of the Internal Revenue Code or any
15-29 succeeding code or other federal statute providing a similar exemption; or
15-30 2. Issue [notes, bonds or other obligations,] bonds, the interest on
15-31 which is not exempt from federal income taxation or excluded from gross
15-32 revenue for the purpose of federal income taxation, if necessary to carry
15-33 out the purposes of this chapter.
15-34 Sec. 31. NRS 319.330 is hereby amended to read as follows:
15-35 319.330 1. The division may issue refunding [obligations] bonds to
15-36 refund any [obligations] bonds then outstanding which have been issued
15-37 under the provisions of this chapter, including the payment of any
15-38 redemption premium thereon and any interest accrued or to accrue to the
15-39 date of redemption of the [obligations] bonds and for any statutory purpose
15-40 of the division. The issuance of the [obligations,] bonds, the maturities and
15-41 other details thereof, the rights of the holders thereof, and the rights, duties
15-42 and obligations of the division in respect to them are governed by the
15-43 provisions of this chapter which relate to the issuance of original
15-44 obligations insofar as appropriate.
15-45 2. Refunding [obligations] bonds issued as provided in this section
15-46 may be sold or exchanged for outstanding [obligations] bonds issued under
15-47 this chapter and, if they are sold, the proceeds thereof may be applied, in
15-48 addition to any other authorized purposes, to the purchase, redemption or
15-49 payment of the outstanding [obligations. Pending the application of the
16-1 proceeds of the refunding obligations, with any other available funds, to
16-2 the purpose for which they are issued, the proceeds may be invested in
16-3 direct obligations of, or obligations the principal of and the interest on
16-4 which are unconditionally guaranteed by, the United States of America, or
16-5 obligations of any agency or instrumentality of the United States, which
16-6 mature or which are subject to redemption by the holders thereof, at the
16-7 option of such holders, not later than the respective dates when the
16-8 proceeds, together with the interest accruing thereon, will be required for
16-9 the purposes intended.] bonds upon the terms and conditions determined
16-10 by the division, subject to any agreements with the holders of the bonds.
16-11 Sec. 32. NRS 319.340 is hereby amended to read as follows:
16-12 319.340 [1.] The division may establish one or more bond reserve
16-13 funds, and shall pay into each such bond reserve fund[:
16-14 (a)] as required for that fund:
16-15 1. Any money appropriated by the legislature for the purpose of the
16-16 fund;
16-17 [(b)] 2. Any proceeds of sale of [notes or] bonds to the extent
16-18 provided in connection with the issuance thereof; and
16-19 [(c)] 3. Any other money which may be available to the division for
16-20 the purpose of the fund from any other source or sources.
16-21 All money held in any bond reserve fund, [except as otherwise expressly
16-22 provided in this chapter, must be used, as required, solely for the payment
16-23 of the principal of bonds secured in whole or in part by the fund or of the
16-24 sinking fund payments with respect to such bonds, the purchase or
16-25 redemption of such bonds, the payment of interest on such bonds or the
16-26 payment of any redemption premium required to be paid when the bonds
16-27 are redeemed before maturity.
16-28 2. Money in such a fund must not be withdrawn from the fund at any
16-29 time in an amount that would reduce the amount of the fund below the
16-30 requirement established for that fund, except to pay when due, with respect
16-31 to bonds secured in whole or in part by that fund, principal, interest,
16-32 redemption premiums and sinking fund payments for the payment of which
16-33 other money of the division is not available. Any income or interest earned
16-34 by or incremental to any bond reserve fund resulting from the investment
16-35 thereof may be transferred by the division to other funds or accounts of the
16-36 division and to the account for low-income housing created pursuant to
16-37 NRS 319.500, to the extent that the amount of that bond reserve fund is not
16-38 reduced below the requirement for the fund.] including, without limitation,
16-39 any investment earnings thereon, must be used in the manner provided
16-40 for in the agreements with the holders of the bonds.
16-41 Sec. 33. NRS 319.370 is hereby amended to read as follows:
16-42 319.370 1. If the division defaults in the payment of principal [of] or
16-43 interest on any bonds [or notes] issued under this chapter after it is due,
16-44 whether at maturity or upon call for redemption, [and such default
16-45 continues for a period of 30 days,] or if the division fails or refuses to
16-46 comply with the provisions of this chapter or defaults in any agreement
16-47 made with the holders of an issue of its bonds , [or notes,] the holders of 25
16-48 percent in aggregate principal amount of the bonds [or notes] of such issue
16-49 then outstanding, by instrument or instruments filed in the office of the
17-1 secretary of state and proved or acknowledged in the same manner as a
17-2 deed to be recorded, may appoint a trustee to represent the holders of such
17-3 bonds [or notes] for the purposes provided in this section.
17-4 2. The trustee may, and upon written request of the holders of 25
17-5 percent in principal amount of such bonds [or notes] then outstanding shall,
17-6 in his or its own name:
17-7 (a) Enforce the right of the bondholders [or noteholders] to require the
17-8 division to collect interest and amortization payments on the mortgages
17-9 held by it adequate to carry out any agreement as to, or pledge of, such
17-10 interest and amortization payments, and to require the division to carry out
17-11 any other agreements with the holders of such bonds [or notes] and to
17-12 perform its duties under this act.
17-13 (b) Enforce the right of the bondholders [or noteholders] to collect and
17-14 enforce the payment of principal of and interest due or becoming due on
17-15 loans to lending institutions and collect and enforce any rights in respect to
17-16 collateral securing such loans or sell such collateral, so as to carry out any
17-17 contract as to, or pledge of revenues, and to require the division to carry
17-18 out any contract as to, or pledge of revenues, and to require the division to
17-19 perform its duties under this chapter.
17-20 (c) Bring suit upon all or any part of such bonds . [or notes.]
17-21 (d) By civil action, require the agency to account as if it were the trustee
17-22 of an express trust for the holders of such bonds . [or notes.]
17-23 (e) By civil action, enjoin any acts or things which may be unlawful or
17-24 in violation of the rights of the holders of such bonds . [or notes.]
17-25 (f) Declare all such bonds [or notes] due and payable, and if all defaults
17-26 are made good then with the consent of the holders of 25 percent of the
17-27 principal amount of such bonds [or notes] then outstanding, to annul such
17-28 declaration and its consequences.
17-29 (g) Enforce any other right of the bondholders [or noteholders]
17-30 conferred by law or by the proceedings of the division authorizing the
17-31 issuance of the bonds . [or notes.]
17-32 3. The trustee shall, in addition to the powers listed in subsection 2,
17-33 have all the powers necessary or appropriate for the exercise of any
17-34 functions specifically set forth in this section or incident to the general
17-35 representation of bondholders [or noteholders] in the enforcement and
17-36 protection of their rights.
17-37 4. [Before declaring the principal of bonds or notes due and payable,
17-38 the trustee shall give 30 days’ notice in writing to the governor, to the
17-39 administrator and to the attorney general of this state.
17-40 5.] The district [court of the first judicial district has] courts of this state
17-41 have jurisdiction of any suit, action or proceeding by the trustee on behalf
17-42 of bondholders . [or noteholders.]
17-43 Sec. 34. NRS 319.380 is hereby amended to read as follows:
17-44 319.380 1. The State of Nevada hereby pledges to and agrees with
17-45 the holders of any [notes or] bonds issued under this chapter that the state
17-46 will not limit or alter the rights vested in the division by this chapter to
17-47 fulfill the terms of any agreements made with such holders or in any way
17-48 impair the rights and remedies of such holders until such [notes and]
17-49 bonds, together with the interest thereon, with interest on any unpaid
18-1 installments of interest, and all costs and expenses in connection with any
18-2 action or proceeding by or on behalf of such holders, are fully met and
18-3 discharged. The division may include this pledge and agreement of the
18-4 state in any agreement with the holders of such [notes or] bonds.
18-5 2. Obligations issued under the provisions of this chapter, including
18-6 letters of credit issued by the division, do not constitute a debt, liability or
18-7 obligation of this state or of any political subdivision thereof, or a pledge of
18-8 the faith and credit of this state or of any political subdivision thereof, but
18-9 are payable solely from the revenues or assets of the division. Each
18-10 obligation, including a letter of credit, issued under this chapter must
18-11 contain on the face thereof a statement to the effect that , except as
18-12 otherwise provided in the obligation, the division is not obligated to pay
18-13 the obligation or the interest thereon except from the revenues or assets
18-14 pledged therefor and that neither the faith and credit nor the taxing power
18-15 of this state or of any political subdivision thereof is pledged to the
18-16 payment of the principal of or the interest on the obligation.
18-17 Sec. 35. NRS 319.390 is hereby amended to read as follows:
18-18 319.390 1. The [notes and] bonds of the division are legal
18-19 investments in which all public officers and public bodies of the state, its
18-20 political subdivisions, all municipalities and municipal subdivisions, all
18-21 insurance companies and associations and other persons carrying on an
18-22 insurance business, all banks, savings and loan associations and trust
18-23 companies, all administrators, guardians, executors, trustees and other
18-24 fiduciaries, and all other persons who are authorized on or after July 1,
18-25 1975, to invest in bonds or in other obligations of this state, may properly
18-26 and legally invest funds, including capital, in their control or belonging to
18-27 them. The [notes and] bonds are securities which may properly and legally
18-28 be deposited with and received by all public officers and public bodies of
18-29 the state or any agency or political subdivision of the state and all
18-30 municipalities and public corporations for any purpose for which the
18-31 deposit of bonds or other obligations of this state is authorized by law on
18-32 and after July 1, 1975, and may be used as collateral to secure any deposit
18-33 of public moneys.
18-34 2. The [notes and] bonds of the division are securities within the
18-35 meaning of the Uniform Commercial Code-Investment Securities.
18-36 Sec. 36. NRS 319.510 is hereby amended to read as follows:
18-37 319.510 1. Money deposited in the account for low-income housing
18-38 must be used:
18-39 (a) For the acquisition, construction or rehabilitation of housing for
18-40 eligible families by public or private nonprofit charitable organizations,
18-41 housing authorities or local governments through loans, grants or subsidies;
18-42 (b) To provide technical and financial assistance to public or private
18-43 nonprofit charitable organizations, housing authorities and local
18-44 governments for the acquisition, construction or rehabilitation of housing
18-45 for eligible families;
18-46 (c) To provide funding for projects of public or private nonprofit
18-47 charitable organizations, housing authorities or local governments that
18-48 provide assistance to or guarantee the payment of rent or deposits as
18-49 security for rent for eligible families, including homeless persons;
19-1 (d) To reimburse the division for the costs of administering the account;
19-2 and
19-3 (e) In any other manner consistent with this section to assist eligible
19-4 families in obtaining or keeping housing, including , without limitation,
19-5 use as [the] :
19-6 (1) The state’s contribution to facilitate the receipt of related federal
19-7 money[.] ;
19-8 (2) Assistance with rent and related expenses, including, without
19-9 limitation, utility costs; and
19-10 (3) Assistance for emergencies associated with maintaining
19-11 housing.
19-12 2. Except as otherwise provided in this subsection, the division may
19-13 expend money from the account as reimbursement for the necessary costs
19-14 of efficiently administering the account and any money received pursuant
19-15 to 42 U.S.C. §§ 12701 et seq. In no case may the division expend more
19-16 than $40,000 per year or an amount equal to 6 percent of any money made
19-17 available to the state pursuant to 42 U.S.C. §§ 12701 et seq., whichever is
19-18 greater. [Of the remaining money allocated from the account:
19-19 (a) Except as otherwise provided in subsection 3, 15 percent must be
19-20 distributed to the welfare division of the department of human resources
19-21 for use in its program developed pursuant to 45 C.F.R. § 233.120 to
19-22 provide emergency assistance to needy families with children, subject to
19-23 the following:
19-24 (1) The welfare division shall adopt regulations governing the use of
19-25 the money that are consistent with the provisions of this section.
19-26 (2) The money must be used solely for activities relating to low-
19-27 income housing that are consistent with the provisions of this section.
19-28 (3) The money must be made available to families that have children
19-29 and whose income is at or below the federally designated level signifying
19-30 poverty.
19-31 (4) All money provided by the Federal Government to match the
19-32 money distributed to the welfare division pursuant to this section must be
19-33 expended for activities consistent with the provisions of this section.
19-34 (b) Eighty-five percent must be distributed to public or private nonprofit
19-35 charitable organizations, housing authorities and local governments for the
19-36 acquisition, construction and rehabilitation of housing for eligible families,
19-37 subject to the following:
19-38 (1) Priority must be given to those projects that qualify for the federal
19-39 tax credit relating to low-income housing.
19-40 (2) Priority must be given to those projects that anticipate receiving
19-41 federal money to match the state money distributed to them.
19-42 (3) Priority must be given to those projects that have the commitment
19-43 of a local government to provide assistance to them.
19-44 (4) All money must be used to benefit families whose income does
19-45 not exceed 60 percent of the median income for families residing in the
19-46 same county, as defined by the United States Department of Housing and
19-47 Urban Development.
19-48 (5) Not less than 15 percent of the units acquired, constructed or
19-49 rehabilitated must be affordable to persons whose income is at or below the
20-1 federally designated level signifying poverty. For the purposes of this
20-2 subparagraph, a unit is affordable if a family does not have to pay more
20-3 than 30 percent of its gross income for housing costs, including both utility
20-4 and mortgage or rental costs.
20-5 (6) To be eligible to receive money pursuant to this paragraph, a
20-6 project must be sponsored by a local government.
20-7 3. The division may, pursuant to contract and in lieu of distributing
20-8 money to the welfare division pursuant to paragraph (a) of subsection 2,
20-9 distribute any amount of that money to private or public nonprofit entities
20-10 for use consistent with the provisions of this section.]
20-11 Sec. 37. NRS 104.9109 is hereby amended to read as follows:
20-12 104.9109 1. Except as otherwise provided in subsections 3 and 4,
20-13 this article applies to:
20-14 (a) A transaction, regardless of its form, that creates a security interest
20-15 in personal property or fixtures by contract;
20-16 (b) An agricultural lien;
20-17 (c) A sale of accounts, chattel paper, payment intangibles or promissory
20-18 notes;
20-19 (d) A consignment;
20-20 (e) A security interest arising under NRS 104.2401, 104.2505,
20-21 subsection 3 of NRS 104.2711, or subsection 5 of NRS 104A.2508, as
20-22 provided in NRS 104.9110; and
20-23 (f) A security interest arising under NRS 104.4210 or 104.5118.
20-24 2. The application of this article to a security interest in a secured
20-25 obligation is not affected by the fact that the obligation is itself secured by
20-26 a transaction or interest to which this article does not apply.
20-27 3. This article does not apply to the extent that:
20-28 (a) A statute, regulation or treaty of the United States preempts this
20-29 article;
20-30 (b) Another statute of this state expressly governs the creation,
20-31 perfection, priority or enforcement of a security interest created by this
20-32 state or a governmental unit of this state;
20-33 (c) A statute of another state, a foreign country, or a governmental unit
20-34 of another state or a foreign country, other than a statute generally
20-35 applicable to security interests, expressly governs creation, perfection,
20-36 priority, or enforcement of a security interest created by the state, country,
20-37 or governmental unit; or
20-38 (d) The rights of a transferee beneficiary or nominated person under a
20-39 letter of credit are independent and superior under NRS 104.5114.
20-40 4. This article does not apply to:
20-41 (a) A landlord’s lien, other than an agricultural lien;
20-42 (b) A lien, other than an agricultural lien, given by statute or other rule
20-43 of law for services or materials, but NRS 104.9333 applies with respect to
20-44 priority of the lien;
20-45 (c) An assignment of a claim for wages, salary or other compensation of
20-46 an employee;
20-47 (d) A sale of accounts, chattel paper, payment intangibles or promissory
20-48 notes as part of a sale of the business out of which they arose;
21-1 (e) An assignment of accounts, chattel paper, payment intangibles or
21-2 promissory notes which is for the purpose of collection only;
21-3 (f) An assignment of a right to payment under a contract to an assignee
21-4 that is also obligated to perform under the contract;
21-5 (g) An assignment of a single account, payment intangible or
21-6 promissory note to an assignee in full or partial satisfaction of a preexisting
21-7 indebtedness;
21-8 (h) A transfer of an interest in or an assignment of a claim under a
21-9 policy of insurance, other than an assignment by or to a health-care
21-10 provider of a health-care-insurance receivable and any subsequent
21-11 assignment of the right to payment, but NRS 104.9315 and 104.9322 apply
21-12 with respect to proceeds and priorities in proceeds;
21-13 (i) An assignment of a right represented by a judgment, other than a
21-14 judgment taken on a right to payment that was collateral;
21-15 (j) A right of recoupment or set-off, but:
21-16 (1) NRS 104.9340 applies with respect to the effectiveness of rights
21-17 of recoupment or set-off against deposit accounts; and
21-18 (2) NRS 104.9404 applies with respect to defenses or claims of an
21-19 account debtor;
21-20 (k) The creation or transfer of an interest in or lien on real property,
21-21 including a lease or rents thereunder, except to the extent that provision is
21-22 made for:
21-23 (1) Liens on real property in NRS 104.9203 and 104.9308;
21-24 (2) Fixtures in NRS 104.9334;
21-25 (3) Fixture filings in NRS 104.9501, 104.9502, 104.9512, 104.9516
21-26 and 104.9519; and
21-27 (4) Security agreements covering personal and real property in NRS
21-28 104.9604;
21-29 (l) An assignment of a claim arising in tort, other than a commercial tort
21-30 claim, but NRS 104.9315 and 104.9322 apply with respect to proceeds and
21-31 priorities in proceeds; [or]
21-32 (m) An assignment of a deposit account in a consumer transaction, but
21-33 NRS 104.9315 and 104.9322 apply with respect to proceeds and priorities
21-34 in proceeds[.] ; or
21-35 (n) A transfer by a government or governmental unit.
21-36 Sec. 38. NRS 242.111 is hereby amended to read as follows:
21-37 242.111 The director shall adopt regulations necessary for the
21-38 administration of this chapter, including:
21-39 1. The policy for the information systems of the executive branch of
21-40 government, excluding the University and Community College System of
21-41 Nevada , the housing division of the department of business and industry,
21-42 and the Nevada criminal justice information computer system, as that
21-43 policy relates, but is not limited, to such items as standards for systems and
21-44 programming and criteria for selection, location and use of information
21-45 systems to meet the requirements of state agencies and officers at the least
21-46 cost to the state;
21-47 2. The procedures of the department in providing information services,
21-48 which may include provision for the performance, by an agency which uses
22-1 the services or equipment of the department, of preliminary procedures,
22-2 such as data recording and verification, within the agency;
22-3 3. The effective administration of the communication and computing
22-4 division, including security to prevent unauthorized access to information
22-5 systems and plans for the recovery of systems and applications after they
22-6 have been disrupted; and
22-7 4. Specifications and standards for the employment of all personnel of
22-8 the department.
22-9 Sec. 39. NRS 242.115 is hereby amended to read as follows:
22-10 242.115 1. Except as otherwise provided in subsection 2, the
22-11 planning and research unit of the planning and programming division of
22-12 the department shall:
22-13 (a) Develop policies and standards for the information systems of the
22-14 executive branch of government;
22-15 (b) Coordinate the development of a biennial state plan for the
22-16 information systems of the executive branch of government;
22-17 (c) Develop guidelines to assist state agencies in the development of
22-18 short- and long-term plans for their information systems;
22-19 (d) Develop guidelines and procedures for the procurement and
22-20 maintenance of the information systems of the executive branch of
22-21 government;
22-22 (e) Develop standards to ensure the security of the information systems
22-23 of the executive branch of government; and
22-24 (f) Perform other planning and research functions at the direction of
22-25 the director.
22-26 2. This section does not apply to the University and Community
22-27 College System of Nevada , the housing division of the department of
22-28 business and industry, or the Nevada criminal justice information
22-29 computer system used to provide support for the operations of law
22-30 enforcement agencies in this state.
22-31 Sec. 40. NRS 242.131 is hereby amended to read as follows:
22-32 242.131 1. The department shall provide state agencies and elected
22-33 state officers with all their required design of information systems. All
22-34 agencies and officers must use those services and equipment, except as
22-35 otherwise provided in subsection 2.
22-36 2. The following agencies may negotiate with the department for its
22-37 services or the use of its equipment, subject to the provisions of this
22-38 chapter, and the department shall provide those services and the use of that
22-39 equipment as may be mutually agreed:
22-40 (a) The court administrator;
22-41 (b) The department of motor vehicles and public safety;
22-42 (c) The department of transportation;
22-43 (d) The employment security division of the department of employment,
22-44 training and rehabilitation;
22-45 (e) The division of wildlife of the state department of conservation and
22-46 natural resources;
22-47 (f) The legislative counsel bureau;
22-48 (g) The state controller;
23-1 (h) The state gaming control board and Nevada gaming commission;
23-2 [and]
23-3 (i) The University and Community College System of Nevada[.] ; and
23-4 (j) The housing division of the department of business and industry.
23-5 3. Any state agency or elected state officer who uses the services of the
23-6 department and desires to withdraw substantially from that use must apply
23-7 to the director for approval. The application must set forth justification for
23-8 the withdrawal. If the director denies the application, the agency or officer
23-9 must:
23-10 (a) If the legislature is in regular or special session, obtain the approval
23-11 of the legislature by concurrent resolution.
23-12 (b) If the legislature is not in regular or special session, obtain the
23-13 approval of the interim finance committee. The director shall, within 45
23-14 days after receipt of the application, forward the application together with
23-15 his recommendation for approval or denial to the interim finance
23-16 committee. The interim finance committee has 45 days after the application
23-17 and recommendation are submitted to its secretary within which to
23-18 consider the application. Any application which is not considered by the
23-19 committee within the 45-day period shall be deemed approved.
23-20 4. If the demand for services or use of equipment exceeds the
23-21 capability of the department to provide them, the department may contract
23-22 with other agencies or independent contractors to furnish the required
23-23 services or use of equipment and is responsible for the administration of
23-24 the contracts.
23-25 Sec. 41. NRS 333.020 is hereby amended to read as follows:
23-26 333.020 As used in this chapter, unless the context otherwise requires:
23-27 1. “Chief” means the chief of the purchasing division.
23-28 2. “Director” means the director of the department of administration.
23-29 3. “Invitation to bid” means a written statement which sets forth the
23-30 requirements and specifications of a contract to be awarded by competitive
23-31 selection.
23-32 4. “Proprietary information” means:
23-33 (a) Any trade secret or confidential business information that is
23-34 contained in a bid or proposal submitted on a particular contract; or
23-35 (b) Any other trade secret or confidential business information
23-36 submitted in a bid or
proposal and designated as proprietary by the
chief.
23-37 As used in this subsection, “confidential business information” means any
23-38 information relating to the amount or source of any income, profits, losses
23-39 or expenditures of a person, including data relating to cost or price
23-40 submitted in support of a bid or proposal. The term does not include the
23-41 amount of a bid or proposal.
23-42 5. “Purchasing division” means the purchasing division of the
23-43 department of administration.
23-44 6. “Purchasing officer” means a person who is authorized by the chief
23-45 or a using agency to participate in:
23-46 (a) The evaluation of bids or proposals for a contract;
23-47 (b) Any negotiations concerning a contract; or
23-48 (c) The development, review or approval of a contract.
24-1 7. “Request for proposals” means a written statement which sets forth
24-2 the requirements and specifications of a contract to be awarded by
24-3 competitive selection.
24-4 8. “Trade secret” has the meaning ascribed to it in NRS 600A.030.
24-5 9. “Using agencies” means all officers, departments, institutions,
24-6 boards, commissions and other agencies in the executive department of the
24-7 state government which derive their support from public money in whole
24-8 or in part, whether the money is provided by the State of Nevada, received
24-9 from the Federal Government or any branch, bureau or agency thereof, or
24-10 derived from private or other sources. The term does not include the
24-11 Nevada rural housing authority, the housing division of the department of
24-12 business and industry, local governments as defined in NRS 354.474,
24-13 conservation districts, irrigation districts and the University and
24-14 Community College System of Nevada.
24-15 10. “Volunteer fire department” means a volunteer fire department
24-16 which pays premiums for industrial insurance pursuant to the provisions of
24-17 chapters 616A to 616D, inclusive, or chapter 617 of NRS.
24-18 Sec. 42. NRS 319.045, 319.080, 319.150, 319.160, 319.165, 319.171,
24-19 319.172, 319.175, 319.180, 319.323, 319.350 and 319.360 are hereby
24-20 repealed.
24-21 Sec. 43. The provisions of NRS 284.380 regarding layoffs and
24-22 reemployment apply to each classified employee of the housing division of
24-23 the department of business and industry who is laid off as a result of the
24-24 amendatory provisions of this act.
24-25 Sec. 44. 1. This section and sections 1 to 36, inclusive, and 38 to 43,
24-26 inclusive, of this act become effective on July 1, 2001.
24-27 2. Section 37 of this act becomes effective at 12:01 a.m. on July 1,
24-28 2001.
24-29 3. Section 43 of this act expires by limitation on July 1, 2003.
24-30 LEADLINES OF REPEALED SECTIONS
24-31 319.045 “Collateralized mortgage obligation” defined.
24-32 319.080 “Insured mortgage” defined.
24-33 319.150 Contracts and other transactions; grants.
24-34 319.160 Information, research and promotion.
24-35 319.165 Division may create instrumentalities to carry out
24-36 purposes of chapter; notes, bonds or obligations subject to
24-37 statutory requirements.
24-38 319.171 Investment in collateralized mortgage obligations or
24-39 trusts.
24-40 319.172 Authority to make loans of investment securities.
24-41 319.175 Acquisition and sale of land.
24-42 319.180 Powers of division as mortgagee.
24-43 319.323 Issuance of collateralized mortgage obligations; use of
24-44 proceeds; submission of findings to state board of finance.
24-45 319.350 Bond reserve funds: Limitations.
25-1 319.360 Bond reserve funds: Purpose; status reports.
25-2 H