Senate Bill No. 78–Committee on Government Affairs

 

(On Behalf of the Department of Business
and Industry, Housing Division)

 

February 11, 2003

____________

 

Referred to Committee on Government Affairs

 

SUMMARY—Makes various changes relating to assistance to finance housing. (BDR 25‑467)

 

FISCAL NOTE:  Effect on Local Government: No.

                           Effect on the State: No.

 

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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; revising requirements relating to eligibility for housing assistance; providing that the Division may develop or acquire one or more information systems; establishing the circumstances under which the Division may issue a letter of credit; increasing the permissible aggregate principal amount of the outstanding obligations of the Division; repealing the prospective expiration of certain provisions regarding assistance to finance housing; 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. NRS 319.060 is hereby amended to read as follows:

1-2  319.060  “Eligible family” means a person or family, selected

1-3  without regard to race, creed, national origin or sex, determined by

1-4  the Division to require such assistance as is made available by this

1-5  chapter on account of insufficient personal or family income or

1-6  other criteria established by the Administrator that are consistent

1-7  with the intent of this chapter, after taking into consideration,

1-8  without limitation : [, such factors as:]

2-1  1.  The amount of the total income of that person or family

2-2  available for housing needs;

2-3  2.  The size of the family;

2-4  3.  The cost and condition of housing facilities available;

2-5  4.  The ability of the person or family to compete successfully

2-6  in the normal private housing market and to pay the amounts at

2-7  which private enterprise is providing decent, safe and sanitary

2-8  housing;

2-9  5.  Any identifiable factor other than those set forth in

2-10  subsections 1 to 4, inclusive, that the Administrator determines is

2-11  common to a group of persons or families and which causes the

2-12  group to be unable to obtain decent, safe and sanitary housing in

2-13  an area;

2-14      6.  If appropriate, standards established for various federal

2-15  programs determining eligibility based on income of those persons

2-16  and families; and

2-17      [6.] 7. Service in the Armed Forces of the United States with a

2-18  minimum of 90 days on active duty at some time between:

2-19      (a) April 21, 1898, and June 15, 1903;

2-20      (b) April 6, 1917, and November 11, 1918;

2-21      (c) December 7, 1941, and December 31, 1946;

2-22      (d) June 25, 1950, and January 31, 1955; or

2-23      (e) January 1, 1961, and May 7, 1975,

2-24  and at least 2 years’ continuous residence in Nevada immediately

2-25  preceding any application for assistance under this chapter.

2-26      Sec. 2.  NRS 319.140 is hereby amended to read as follows:

2-27      319.140  1.  The Division shall administer the provisions of

2-28  this chapter. The Administrator may adopt, amend or rescind

2-29  regulations, consistent with the provisions of this chapter,

2-30  appropriate to carry out its purposes.

2-31      2.  The Administrator may make copies of all proceedings and

2-32  other records and documents of the Division and issue certificates

2-33  under the seal of the Division to the effect that the copies are true

2-34  copies, and all persons dealing with the Division may rely upon

2-35  such certificates.

2-36      3.  The Division has perpetual succession, subject to

2-37  termination in accordance with statute, and may:

2-38      (a) Sue and be sued in its own name, subject to chapter 41 of

2-39  NRS;

2-40      (b) Adopt an official seal and alter the same at the pleasure of

2-41  the Division;

2-42      (c) Maintain such offices at any place or places within the State

2-43  as it determines necessary to carry out the provisions of this chapter;

3-1  (d) [Adopt, amend and repeal regulations as provided in chapter

3-2  233B of NRS, consistent with the provisions of this chapter and

3-3  appropriate to carry out its purposes;

3-4  (e)] Maintain records, proceedings and documents of the

3-5  Division, subject to chapters 239, 239A and 239B of NRS;

3-6  (e) Develop or purchase, lease or otherwise acquire one or

3-7  more information systems that the Division determines are

3-8  necessary or convenient for the exercise of its powers and duties

3-9  pursuant to this chapter and acquire any consulting, support or

3-10  other service for such information systems;

3-11      (f) Make and execute contracts and all other instruments

3-12  necessary or convenient for the exercise of its powers and functions

3-13  pursuant to this chapter with any governmental agency, private

3-14  corporation or other entity, or natural person;

3-15      (g) Enter into agreements or other transactions with, and accept

3-16  grants from and cooperate with, any governmental agency or other

3-17  source in furtherance of the purposes of this chapter;

3-18      (h) Acquire real or personal property or any interest therein, by

3-19  gift, purchase, foreclosure, deed in lieu of foreclosure, lease, option

3-20  or otherwise;

3-21      (i) Hold, sell, assign, lease, encumber, mortgage, release or

3-22  otherwise dispose of any real or personal property or any interest

3-23  therein, by public or private sale, with or without public bidding,

3-24  notwithstanding any other provision of law;

3-25      (j) Employ or contract for the services of attorneys, accountants,

3-26  financial experts and any other advisers, employees, consultants and

3-27  agents as the Administrator may determine to be necessary;

3-28      (k) Create or cause to be created legal entities, including

3-29  nonprofit corporations, grantor trusts and other legal entities, which

3-30  the Division determines are necessary or convenient for the exercise

3-31  of its powers and duties pursuant to this chapter, provided, however,

3-32  that the issuance of bonds, notes or other evidence of indebtedness

3-33  by any legal entity controlled by the Division is subject to the

3-34  approval of the State Board of Finance;

3-35      (l) Provide advice, technical information, training and

3-36  educational services related to the development of housing, building

3-37  technologies and related fields;

3-38      (m) Conduct research, make grants, and promote the

3-39  development of housing, building technologies and related fields;

3-40  and

3-41      (n) Do any and all things necessary or appropriate to carry out

3-42  its purposes and exercise the powers expressly granted pursuant to

3-43  this chapter.

3-44      4.  Before September 1 of each even-numbered year, the

3-45  Division shall submit a report of its activities for the biennium

4-1  ending June 30 of that year to the Governor, State Treasurer and the

4-2  Legislature. Each such report [shall] must set forth a complete

4-3  operating and financial statement of the Division during such

4-4  biennium. The Division shall cause an audit of its books and

4-5  accounts to be made at least once in each fiscal year by a certified

4-6  public accountant. The certified public accountant may audit the

4-7  Division’s books and accounts for consecutive audit periods as

4-8  requested by the Division.

4-9  5.  The Division is exempt from the provisions of chapter 333

4-10  of NRS.

4-11      Sec. 3.  NRS 319.190 is hereby amended to read as follows:

4-12      319.190  1.  The Division may make, undertake commitments

4-13  to make and participate with lending institutions in the making of

4-14  mortgage loans[,] and may make temporary loans and advances in

4-15  anticipation of mortgage loans[, and issue letters of credit] to

4-16  finance the acquisition, construction, development, renewal,

4-17  redevelopment, rehabilitation or refinancing of residential housing,

4-18  including , without limitation, multifamily housing, within this

4-19  state.

4-20      2.  The Division may issue letters of credit to finance the

4-21  acquisition, construction, development, renewal, redevelopment,

4-22  rehabilitation or refinancing of residential housing, including,

4-23  without limitation, multifamily housing, within this state if, at the

4-24  time a letter of credit is issued, the Division has a credit rating

4-25  within one of the three highest rating categories of a nationally

4-26  recognized rating agency.

4-27      Sec. 4.  NRS 319.270 is hereby amended to read as follows:

4-28      319.270  1.  Subject to the limitation imposed by subsections 4

4-29  and 5, the Division may issue its negotiable notes and bonds in such

4-30  principal amount as the Administrator determines to be necessary to

4-31  provide sufficient money for achieving any of its statutory purposes,

4-32  including the payment of interest on notes and bonds of the

4-33  Division, establishment of bond reserve funds and other reserves to

4-34  secure the notes and bonds, and all other expenditures of the

4-35  Division necessary or convenient to carry out its statutory purposes

4-36  and powers.

4-37      2.  Subject to any agreements with holders of notes or bonds, all

4-38  notes and bonds issued by the Division are special obligations of the

4-39  Division payable out of any revenues, money or other assets of the

4-40  Division pledged thereto.

4-41      3.  In issuing the notes and bonds, the Division acts as an

4-42  agency or instrumentality of the State of Nevada.

4-43      4.  Before any notes or bonds may be issued pursuant to this

4-44  section, except those issued for the purpose of refunding outstanding

4-45  notes or bonds, the Administrator must submit a copy of his finding

5-1  of the conditions prerequisite to the financing of residential housing

5-2  under this chapter to the State Board of Finance. If that Board

5-3  approves, the Division may proceed to issue its notes or bonds in the

5-4  amount approved, subject to the further limitation of subsection 5.

5-5  5.  The aggregate principal amount of outstanding bonds, notes

5-6  and other obligations of the Division must not exceed

5-7  [$2,000,000,000,] $5,000,000,000, of which $100,000,000 must be

5-8  allocated to veterans who qualify for loans under this chapter,

5-9  exclusive of any bonds, notes or obligations which have been

5-10  refunded[.] or which were issued at a time when the Division had

5-11  a credit rating within one of three highest rating categories of a

5-12  nationally recognized rating agency. The establishment of this debt

5-13  limitation does not prohibit the Division from issuing additional

5-14  bonds, notes or other obligations if the debt limitation is

5-15  subsequently increased.

5-16      Sec. 5.  NRS 242.131 is hereby amended to read as follows:

5-17      242.131  1.  The Department shall provide state agencies and

5-18  elected state officers with all their required design of information

5-19  systems. All agencies and officers must use those services and

5-20  equipment, except as otherwise provided in subsection 2.

5-21      2.  The following agencies may negotiate with the Department

5-22  for its services or the use of its equipment, subject to the provisions

5-23  of this chapter, and the Department shall provide those services and

5-24  the use of that equipment as may be mutually agreed:

5-25      (a) The Court Administrator;

5-26      (b) The Department of Motor Vehicles;

5-27      (c) The Department of Public Safety;

5-28      (d) The Department of Transportation;

5-29      (e) The Employment Security Division of the Department of

5-30  Employment, Training and Rehabilitation;

5-31      (f) The Division of Wildlife of the State Department of

5-32  Conservation and Natural Resources;

5-33      (g) The Housing Division of the Department of Business and

5-34  Industry;

5-35      (h) The Legislative Counsel Bureau;

5-36      [(h)] (i) The State Controller;

5-37      [(i)] (j) The State Gaming Control Board and Nevada Gaming

5-38  Commission; and

5-39      [(j)] (k) The University and Community College System of

5-40  Nevada.

5-41      3.  Any state agency or elected state officer who uses the

5-42  services of the Department and desires to withdraw substantially

5-43  from that use must apply to the Director for approval. The

5-44  application must set forth justification for the withdrawal. If the

5-45  Director denies the application, the agency or officer must:

6-1  (a) If the Legislature is in regular or special session, obtain the

6-2  approval of the Legislature by concurrent resolution.

6-3  (b) If the Legislature is not in regular or special session, obtain

6-4  the approval of the Interim Finance Committee. The Director shall,

6-5  within 45 days after receipt of the application, forward the

6-6  application together with his recommendation for approval or denial

6-7  to the Interim Finance Committee. The Interim Finance Committee

6-8  has 45 days after the application and recommendation are submitted

6-9  to its Secretary within which to consider the application. Any

6-10  application which is not considered by the Committee within the

6-11  45-day period shall be deemed approved.

6-12      4.  If the demand for services or use of equipment exceeds the

6-13  capability of the Department to provide them, the Department may

6-14  contract with other agencies or independent contractors to furnish

6-15  the required services or use of equipment and is responsible for the

6-16  administration of the contracts.

6-17      Sec. 6.  Section 8 of chapter 418, Statutes of Nevada 2001, at

6-18  page 2123, is hereby amended to read as follows:

6-19      Sec. 8. This act becomes effective on July 1, 2001 . [,

6-20  and expires by limitation on July 1, 2003.]

6-21      Sec. 7.  This act becomes effective on July 1, 2003.

 

6-22  H