(REPRINTED WITH ADOPTED AMENDMENTS)

 

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.

                                 Effect on the State: Yes.

 

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EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.

 

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:

 

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

1-2  new section to read as follows:

1-3    1.  Upon the approval of the state board of finance, the division may

1-4  enter into instruments, agreements and other such transactions for one

1-5  or more of the following purposes:

1-6    (a) Reducing or modifying the amount or duration of any payment,

1-7  interest rate, spread or similar risk;

1-8    (b) Lowering the cost of borrowing when used in combination with

1-9  the issuance or carrying of bonds or investments; or

1-10    (c) Enhancing the relationship between risk and return with respect to

1-11  the programs of the division for lending or investment or any portion

1-12  thereof.

1-13    2.  In entering into such instruments, agreements or other such

1-14  transactions, the division shall consider the creditworthiness of the

1-15  counterparties and other relevant criteria relating to the objectives of the

1-16  programs of the division.

1-17    Sec. 2.  NRS 319.140 is hereby amended to read as follows:

1-18    319.140  1.  The division shall administer the provisions of this

1-19  chapter. The administrator may adopt, amend or rescind regulations,

1-20  consistent with the provisions of this chapter, appropriate to carry out its

1-21  purposes.

2-1    2.  The administrator may make copies of all proceedings and other

2-2  records and documents of the division and issue certificates under the seal

2-3  of the division to the effect that the copies are true copies, and all persons

2-4  dealing with the division may rely upon such certificates.

2-5    3.  The division has perpetual succession, subject to termination in

2-6  accordance with statute, and may [employ] :

2-7    (a) Sue and be sued in its own name, subject to chapter 41 of NRS;

2-8    (b) Adopt an official seal and alter the same at the pleasure of the

2-9  division;

2-10    (c) Maintain such offices at any place or places within the state as it

2-11  determines necessary to carry out the provisions of this chapter;

2-12    (d) Adopt, amend and repeal regulations as provided in chapter 233B

2-13  of NRS, consistent with the provisions of this chapter and appropriate to

2-14  carry out its purposes;

2-15    (e) Maintain records, proceedings and documents of the division,

2-16  subject to chapters 239, 239A and 239B of NRS;

2-17    (f) Make and execute contracts and all other instruments necessary or

2-18  convenient for the exercise of its powers and functions pursuant to this

2-19  chapter with any governmental agency, private corporation or other

2-20  entity, or natural person;

2-21    (g) Enter into agreements or other transactions with, and accept

2-22  grants from and cooperate with, any governmental agency or other

2-23  source in furtherance of the purposes of this chapter;

2-24    (h) Acquire real or personal property or any interest therein, by gift,

2-25  purchase, foreclosure, deed in lieu of foreclosure, lease, option or

2-26  otherwise;

2-27    (i) Hold, sell, assign, lease, encumber, mortgage, release or otherwise

2-28  dispose of any real or personal property or any interest therein, by public

2-29  or private sale, with or without public bidding, notwithstanding any other

2-30  provision of law;

2-31    (j) Employ or contract for the services of attorneys, accountants,

2-32  financial experts and any other advisers, employees, consultants and agents

2-33  as the administrator may determine to be necessary[.] ;

2-34    (k) Create or cause to be created legal entities, including nonprofit

2-35  corporations, grantor trusts and other legal entities, which the division

2-36  determines are necessary or convenient for the exercise of its powers and

2-37  duties pursuant to this chapter, provided, however, that the issuance of

2-38  bonds, notes or other evidence of indebtedness by any legal entity

2-39  controlled by the division is subject to the approval of the state board of

2-40  finance;

2-41    (l) Provide advice, technical information, training and educational

2-42  services related to the development of housing, building technologies and

2-43  related fields;

2-44    (m) Conduct research, make grants, and promote the development of

2-45  housing, building technologies and related fields; and

2-46    (n) Do any and all things necessary or appropriate to carry out its

2-47  purposes and exercise the powers expressly granted pursuant to this

2-48  chapter.

3-1    4.  Before September 1 of each even-numbered year , the division shall

3-2  submit a report of its activities for the biennium ending June 30 of that year

3-3  to the governor, state treasurer and the legislature. Each such report shall

3-4  set forth a complete operating and financial statement of the division

3-5  during such biennium. The division shall cause an audit of its books and

3-6  accounts to be made at least once in each fiscal year by a certified public

3-7  accountant. The certified public accountant may audit the division’s books

3-8  and accounts for consecutive audit periods as requested by the division.

3-9    5.  The division is exempt from the provisions of chapter 333 of NRS.

3-10    Sec. 3.  NRS 319.190 is hereby amended to read as follows:

3-11    319.190  [1.] The division may make, undertake commitments to

3-12  make and participate with lending institutions in the making of mortgage

3-13  loans, make temporary loans and advances in anticipation of mortgage

3-14  loans, and issue letters of credit [pursuant to subsection 2] to finance the

3-15  acquisition, construction [or] , development, renewal, redevelopment,

3-16  rehabilitation or refinancing of residential housing, including multifamily

3-17  housing[. Any loan made by the division pursuant to this section must be

3-18  insured or guaranteed unless it is financed by an issue of obligations of the

3-19  division that are insured or secured by surety bonds, letters of credit not

3-20  issued by the division, guaranties or other means of assuring repayment of

3-21  those obligations. Such loans may be made or letters of credit issued only

3-22  after a determination by the administrator that mortgage loans or letters of

3-23  credit are not otherwise available from private lenders upon reasonable

3-24  equivalent terms and conditions.

3-25    2.  The division may issue a letter of credit only if sufficient reserves in

3-26  the funds established by the division are deposited in a separate account to

3-27  be used to pay any liabilities that may be incurred by issuing the letter of

3-28  credit. The aggregate amount of outstanding letters of credit issued by the

3-29  division must not exceed $5,000,000.] , within this state.

3-30    Sec. 4.  NRS 319.200 is hereby amended to read as follows:

3-31    319.200  Any [insured] mortgage loan made by the division [shall:

3-32    1.  Not exceed the amount permitted under the insurance program

3-33  under which the mortgage is insured.

3-34    2.  Be] must be secured in such manner, be repaid in such period and

3-35  bear interest at [a] such rate or rates as are determined by the division .

3-36  [and permitted under the insurance program under which the mortgage is

3-37  insured. In addition to such interest charges, the division may charge and

3-38  collect such fees and charges, including reimbursement of the division’s

3-39  operating expenses, financing costs, service charges, insurance premiums

3-40  and mortgage insurance premiums as the division determines to be

3-41  reasonable.]

3-42    Sec. 5.  NRS 319.210 is hereby amended to read as follows:

3-43    319.210  1.  The division may:

3-44    (a) Invest in, purchase or make commitments to purchase, and take

3-45  assignments from lending institutions of mortgage loans and promissory

3-46  notes accompanying such mortgage loans, including [federally insured]

3-47  mortgage loans or participations with lending institutions in such

3-48  promissory notes and mortgage loans, for the construction, rehabilitation,

3-49  purchase, leasing or refinancing of residential housing within this state.

4-1    (b) Sell, at public or private sale, with or without public bidding, any

4-2  mortgage or other obligation held by the division.

4-3    2.  At or before the time of purchase, the lending institution shall

4-4  certify to the division with respect to all mortgage loans transferred to the

4-5  division:

4-6    (a) That the mortgage loans transferred to the division are for residential

4-7  housing for eligible families within this state; or

4-8    (b) That the proceeds of sale or its equivalent will be reinvested in

4-9  mortgage loans for residential housing for eligible families within this state

4-10  in an aggregate principal amount equal to the amount of such sale

4-11  proceeds.

4-12    Sec. 6.  NRS 333.020 is hereby amended to read as follows:

4-13    333.020  As used in this chapter, unless the context otherwise requires:

4-14    1.  “Chief” means the chief of the purchasing division.

4-15    2.  “Director” means the director of the department of administration.

4-16    3.  “Invitation to bid” means a written statement which sets forth the

4-17  requirements and specifications of a contract to be awarded by competitive

4-18  selection.

4-19    4.  “Proprietary information” means:

4-20    (a) Any trade secret or confidential business information that is

4-21  contained in a bid or proposal submitted on a particular contract; or

4-22    (b) Any other trade secret or confidential business information

4-23  submitted in a bid or proposal and designated as proprietary by the

4-24  chief.

4-25  As used in this subsection, “confidential business information” means any

4-26  information relating to the amount or source of any income, profits, losses

4-27  or expenditures of a person, including data relating to cost or price

4-28  submitted in support of a bid or proposal. The term does not include the

4-29  amount of a bid or proposal.

4-30    5.  “Purchasing division” means the purchasing division of the

4-31  department of administration.

4-32    6.  “Purchasing officer” means a person who is authorized by the chief

4-33  or a using agency to participate in:

4-34    (a) The evaluation of bids or proposals for a contract;

4-35    (b) Any negotiations concerning a contract; or

4-36    (c) The development, review or approval of a contract.

4-37    7.  “Request for proposals” means a written statement which sets forth

4-38  the requirements and specifications of a contract to be awarded by

4-39  competitive selection.

4-40    8.  “Trade secret” has the meaning ascribed to it in NRS 600A.030.

4-41    9.  “Using agencies” means all officers, departments, institutions,

4-42  boards, commissions and other agencies in the executive department of the

4-43  state government which derive their support from public money in whole

4-44  or in part, whether the money is provided by the State of Nevada, received

4-45  from the Federal Government or any branch, bureau or agency thereof, or

4-46  derived from private or other sources. The term does not include the

4-47  Nevada rural housing authority, the housing division of the department of

4-48  business and industry, local governments as defined in NRS 354.474,

5-1  conservation districts, irrigation districts and the University and

5-2  Community College System of Nevada.

5-3    10.  “Volunteer fire department” means a volunteer fire department

5-4  which pays premiums for industrial insurance pursuant to the provisions of

5-5  chapters 616A to 616D, inclusive, or chapter 617 of NRS.

5-6    Sec. 7. NRS 319.080, 319.150, 319.160, 319.165, 319.175 and

5-7  319.180 are hereby repealed.

5-8    Sec. 8. This act becomes effective on July 1, 2001.

 

5-9  LEADLINES OF REPEALED SECTIONS

 

5-10    319.080  “Insured mortgage” defined.

5-11    319.150  Contracts and other transactions; grants.

5-12    319.160  Information, research and promotion.

5-13    319.165  Division may create instrumentalities to carry out

5-14   purposes of chapter; notes, bonds or obligations subject to statutory

5-15   requirements.

5-16    319.175  Acquisition and sale of land.

5-17    319.180  Powers of division as mortgagee.

 

5-18  H