Senate Bill No. 552–Committee on Government Affairs

 

CHAPTER..........

 

AN ACT relating to affordable housing; expanding the powers of the housing division of the department of business and industry; exempting the housing division from the state purchasing act; removing certain requirements for loans made 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:

 

   Section 1. Chapter 319 of NRS is hereby amended by adding thereto a

 new section to read as follows:

   1.  Upon the approval of the state board of finance, the division may

 enter into instruments, agreements and other such transactions for one

 or more of the following purposes:

   (a) Reducing or modifying the amount or duration of any payment,

 interest rate, spread or similar risk;

   (b) Lowering the cost of borrowing when used in combination with

 the issuance or carrying of bonds or investments; or

   (c) Enhancing the relationship between risk and return with respect to

 the programs of the division for lending or investment or any portion

 thereof.

   2.  In entering into such instruments, agreements or other such

 transactions, the division shall consider the creditworthiness of the

 counterparties and other relevant criteria relating to the objectives of the

 programs of the division.

   Sec. 2.  NRS 319.140 is hereby amended to read as follows:

   319.140  1.  The division shall administer the provisions of this

 chapter. The administrator may adopt, amend or rescind regulations,

 consistent with the provisions of this chapter, appropriate to carry out its

 purposes.

   2.  The administrator may make copies of all proceedings and other

 records and documents of the division and issue certificates under the seal

 of the division to the effect that the copies are true copies, and all persons

 dealing with the division may rely upon such certificates.

   3.  The division has perpetual succession, subject to termination in

 accordance with statute, and may [employ] :

   (a) Sue and be sued in its own name, subject to chapter 41 of NRS;

   (b) Adopt an official seal and alter the same at the pleasure of the

 division;

   (c) Maintain such offices at any place or places within the state as it

 determines necessary to carry out the provisions of this chapter;

   (d) Adopt, amend and repeal regulations as provided in chapter 233B

 of NRS, consistent with the provisions of this chapter and appropriate to

 carry out its purposes;

   (e) Maintain records, proceedings and documents of the division,

 subject to chapters 239, 239A and 239B of NRS;

   (f) Make and execute contracts and all other instruments necessary or

 convenient for the exercise of its powers and functions pursuant to this

 chapter with any governmental agency, private corporation or other

 entity, or natural person;


   (g) Enter into agreements or other transactions with, and accept

grants from and cooperate with, any governmental agency or other

 source in furtherance of the purposes of this chapter;

   (h) Acquire real or personal property or any interest therein, by gift,

 purchase, foreclosure, deed in lieu of foreclosure, lease, option or

 otherwise;

   (i) Hold, sell, assign, lease, encumber, mortgage, release or otherwise

 dispose of any real or personal property or any interest therein, by public

 or private sale, with or without public bidding, notwithstanding any

 other provision of law;

   (j) Employ or contract for the services of attorneys, accountants,

 financial experts and any other advisers, employees, consultants and

 agents as the administrator may determine to be necessary[.] ;

   (k) Create or cause to be created legal entities, including nonprofit

 corporations, grantor trusts and other legal entities, which the division

 determines are necessary or convenient for the exercise of its powers and

 duties pursuant to this chapter, provided, however, that the issuance of

 bonds, notes or other evidence of indebtedness by any legal entity

 controlled by the division is subject to the approval of the state board of

 finance;

   (l) Provide advice, technical information, training and educational

 services related to the development of housing, building technologies

 and related fields;

   (m) Conduct research, make grants, and promote the development of

 housing, building technologies and related fields; and

   (n) Do any and all things necessary or appropriate to carry out its

 purposes and exercise the powers expressly granted pursuant to this

 chapter.

   4.  Before September 1 of each even-numbered year , the division shall

 submit a report of its activities for the biennium ending June 30 of that

 year to the governor, state treasurer and the legislature. Each such report

 shall set forth a complete operating and financial statement of the division

 during such biennium. The division shall cause an audit of its books and

 accounts to be made at least once in each fiscal year by a certified public

 accountant. The certified public accountant may audit the division’s books

 and accounts for consecutive audit periods as requested by the division.

   5.  The division is exempt from the provisions of chapter 333 of NRS.

   Sec. 3.  NRS 319.190 is hereby amended to read as follows:

   319.190  [1.] The division may make, undertake commitments to

 make and participate with lending institutions in the making of mortgage

 loans, make temporary loans and advances in anticipation of mortgage

 loans, and issue letters of credit [pursuant to subsection 2] to finance the

 acquisition, construction [or] , development, renewal, redevelopment,

 rehabilitation or refinancing of residential housing, including multifamily

 housing[. Any loan made by the division pursuant to this section must be

 insured or guaranteed unless it is financed by an issue of obligations of the

 division that are insured or secured by surety bonds, letters of credit not

 issued by the division, guaranties or other means of assuring repayment of

 those obligations. Such loans may be made or letters of credit issued only

 after a determination by the administrator that mortgage loans or letters of


credit are not otherwise available from private lenders upon reasonable

equivalent terms and conditions.

   2.  The division may issue a letter of credit only if sufficient reserves in

 the funds established by the division are deposited in a separate account to

 be used to pay any liabilities that may be incurred by issuing the letter of

 credit. The aggregate amount of outstanding letters of credit issued by the

 division must not exceed $5,000,000.] , within this state.

   Sec. 4.  NRS 319.200 is hereby amended to read as follows:

   319.200  Any [insured] mortgage loan made by the division [shall:

   1.  Not exceed the amount permitted under the insurance program

 under which the mortgage is insured.

   2.  Be] must be secured in such manner, be repaid in such period and

 bear interest at [a] such rate or rates as are determined by the division .

 [and permitted under the insurance program under which the mortgage is

 insured. In addition to such interest charges, the division may charge and

 collect such fees and charges, including reimbursement of the division’s

 operating expenses, financing costs, service charges, insurance premiums

 and mortgage insurance premiums as the division determines to be

 reasonable.]

   Sec. 5.  NRS 319.210 is hereby amended to read as follows:

   319.210  1.  The division may:

   (a) Invest in, purchase or make commitments to purchase, and take

 assignments from lending institutions of mortgage loans and promissory

 notes accompanying such mortgage loans, including [federally insured]

 mortgage loans or participations with lending institutions in such

 promissory notes and mortgage loans, for the construction, rehabilitation,

 purchase, leasing or refinancing of residential housing within this state.

   (b) Sell, at public or private sale, with or without public bidding, any

 mortgage or other obligation held by the division.

   2.  At or before the time of purchase, the lending institution shall

 certify to the division with respect to all mortgage loans transferred to the

 division:

   (a) That the mortgage loans transferred to the division are for residential

 housing for eligible families within this state; or

   (b) That the proceeds of sale or its equivalent will be reinvested in

 mortgage loans for residential housing for eligible families within this

 state in an aggregate principal amount equal to the amount of such sale

 proceeds.

   Sec. 6.  NRS 333.020 is hereby amended to read as follows:

   333.020  As used in this chapter, unless the context otherwise requires:

   1.  “Chief” means the chief of the purchasing division.

   2.  “Director” means the director of the department of administration.

   3.  “Invitation to bid” means a written statement which sets forth the

 requirements and specifications of a contract to be awarded by competitive

 selection.

   4.  “Proprietary information” means:

   (a) Any trade secret or confidential business information that is

 contained in a bid or proposal submitted on a particular contract; or


   (b) Any other trade secret or confidential business information

submitted in a bid or proposal and designated as proprietary by the

chief.

As used in this subsection, “confidential business information” means any

 information relating to the amount or source of any income, profits, losses

 or expenditures of a person, including data relating to cost or price

 submitted in support of a bid or proposal. The term does not include the

 amount of a bid or proposal.

   5.  “Purchasing division” means the purchasing division of the

 department of administration.

   6.  “Purchasing officer” means a person who is authorized by the chief

 or a using agency to participate in:

   (a) The evaluation of bids or proposals for a contract;

   (b) Any negotiations concerning a contract; or

   (c) The development, review or approval of a contract.

   7.  “Request for proposals” means a written statement which sets forth

 the requirements and specifications of a contract to be awarded by

 competitive selection.

   8.  “Trade secret” has the meaning ascribed to it in NRS 600A.030.

   9.  “Using agencies” means all officers, departments, institutions,

 boards, commissions and other agencies in the executive department of the

 state government which derive their support from public money in whole

 or in part, whether the money is provided by the State of Nevada, received

 from the Federal Government or any branch, bureau or agency thereof, or

 derived from private or other sources. The term does not include the

 Nevada rural housing authority, the housing division of the department of

 business and industry, local governments as defined in NRS 354.474,

 conservation districts, irrigation districts and the University and

 Community College System of Nevada.

   10.  “Volunteer fire department” means a volunteer fire department

 which pays premiums for industrial insurance pursuant to the provisions of

 chapters 616A to 616D, inclusive, or chapter 617 of NRS.

   Sec. 7. NRS 319.080, 319.150, 319.160, 319.165, 319.175 and

 319.180 are hereby repealed.

   Sec. 8. This act becomes effective on July 1, 2001, and expires by

 limitation on July 1, 2003.

 

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