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; providing that the Housing Division of the Department of Business and Industry may develop or acquire one or more information systems; revising the provisions governing the issuance of letters of credit by the Division; increasing the permissible aggregate principal amount of the outstanding obligations of the Division; extending 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 319.140 is hereby amended to read as follows:

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

1-3  this chapter. The Administrator may adopt, amend or rescind

1-4  regulations, consistent with the provisions of this chapter,

1-5  appropriate to carry out its purposes.

1-6  2.  The Administrator may make copies of all proceedings and

1-7  other records and documents of the Division and issue certificates

1-8  under the seal of the Division to the effect that the copies are true

1-9  copies, and all persons dealing with the Division may rely upon

1-10  such certificates.

2-1  3.  The Division has perpetual succession, subject to

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

2-3  (a) Sue and be sued in its own name, subject to chapter 41 of

2-4  NRS;

2-5  (b) Adopt an official seal and alter the same at the pleasure of

2-6  the Division;

2-7  (c) Maintain such offices at any place or places within the State

2-8  as it determines necessary to carry out the provisions of this chapter;

2-9  (d) [Adopt, amend and repeal regulations as provided in chapter

2-10  233B of NRS, consistent with the provisions of this chapter and

2-11  appropriate to carry out its purposes;

2-12      (e)] Maintain records, proceedings and documents of the

2-13  Division, subject to chapters 239, 239A and 239B of NRS;

2-14      (e) Develop or purchase, lease or otherwise acquire one or

2-15  more information systems that the Division determines are

2-16  necessary or convenient for the exercise of its powers and duties

2-17  pursuant to this chapter and acquire any consulting, support or

2-18  other service for such information systems;

2-19      (f) Make and execute contracts and all other instruments

2-20  necessary or convenient for the exercise of its powers and functions

2-21  pursuant to this chapter with any governmental agency, private

2-22  corporation or other entity, or natural person;

2-23      (g) Enter into agreements or other transactions with, and accept

2-24  grants from and cooperate with, any governmental agency or other

2-25  source in furtherance of the purposes of this chapter;

2-26      (h) Acquire real or personal property or any interest therein, by

2-27  gift, purchase, foreclosure, deed in lieu of foreclosure, lease, option

2-28  or otherwise;

2-29      (i) Hold, sell, assign, lease, encumber, mortgage, release or

2-30  otherwise dispose of any real or personal property or any interest

2-31  therein, by public or private sale, with or without public bidding,

2-32  notwithstanding any other provision of law;

2-33      (j) Employ or contract for the services of attorneys, accountants,

2-34  financial experts and any other advisers, employees, consultants and

2-35  agents as the Administrator may determine to be necessary;

2-36      (k) Create or cause to be created legal entities, including

2-37  nonprofit corporations, grantor trusts and other legal entities, which

2-38  the Division determines are necessary or convenient for the exercise

2-39  of its powers and duties pursuant to this chapter, provided, however,

2-40  that the issuance of bonds, notes or other evidence of indebtedness

2-41  by any legal entity controlled by the Division is subject to the

2-42  approval of the State Board of Finance;

2-43      (l) Provide advice, technical information, training and

2-44  educational services related to the development of housing, building

2-45  technologies and related fields;

3-1  (m) Conduct research, make grants, and promote the

3-2  development of housing, building technologies and related fields;

3-3  and

3-4  (n) Do any and all things necessary or appropriate to carry out

3-5  its purposes and exercise the powers expressly granted pursuant to

3-6  this chapter.

3-7  4.  Before September 1 of each even-numbered year, the

3-8  Division shall submit a report of its activities for the biennium

3-9  ending June 30 of that year to the Governor, State Treasurer and the

3-10  Legislature. Each such report [shall] must set forth a complete

3-11  operating and financial statement of the Division during such

3-12  biennium. The Division shall cause an audit of its books and

3-13  accounts to be made at least once in each fiscal year by a certified

3-14  public accountant. The certified public accountant may audit the

3-15  Division’s books and accounts for consecutive audit periods as

3-16  requested by the Division.

3-17      5.  The Division is exempt from the provisions of chapter 333

3-18  of NRS.

3-19      Sec. 2.  NRS 319.140 is hereby amended to read as follows:

3-20      319.140  1.  The Division shall administer the provisions of

3-21  this chapter. The Administrator may adopt, amend or rescind

3-22  regulations, consistent with the provisions of this chapter,

3-23  appropriate to carry out its purposes.

3-24      2.  The Administrator may make copies of all proceedings and

3-25  other records and documents of the Division and issue certificates

3-26  under the seal of the Division to the effect that the copies are true

3-27  copies, and all persons dealing with the Division may rely upon

3-28  such certificates.

3-29      3.  The Division may [employ] :

3-30      (a) Employ or contract for the services of attorneys, accountants,

3-31  financial experts and any other advisers, employees, consultants and

3-32  agents as the Administrator may determine to be necessary [.] ; and

3-33      (b) Develop or purchase, lease or otherwise acquire one or

3-34  more information systems that the Division determines are

3-35  necessary or convenient for the exercise of its powers and duties

3-36  pursuant to this chapter and acquire any consulting, support or

3-37  other service for such information systems.

3-38      4.  Before September 1 of each even-numbered year, the

3-39  Division shall submit a report of its activities for the biennium

3-40  ending June 30 of that year to the Governor, State Treasurer and the

3-41  Legislature. Each such report [shall] must set forth a complete

3-42  operating and financial statement of the Division during such

3-43  biennium. The Division shall cause an audit of its books and

3-44  accounts to be made at least once in each fiscal year by a certified

3-45  public accountant. The certified public accountant may audit the

4-1  Division’s books and accounts for consecutive audit periods as

4-2  requested by the Division.

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

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

4-5  to make and participate with lending institutions in the making of

4-6  mortgage loans[,] and may make temporary loans and advances in

4-7  anticipation of mortgage loans[, and issue letters of credit] to

4-8  finance the acquisition, construction, development, renewal,

4-9  redevelopment, rehabilitation or refinancing of residential housing,

4-10  including , without limitation, multifamily housing, within this

4-11  state.

4-12      2.  The Division may issue letters of credit to finance the

4-13  acquisition, construction, development, renewal, redevelopment,

4-14  rehabilitation or refinancing of residential housing, including,

4-15  without limitation, multifamily housing, within this state if, at the

4-16  time a letter of credit is issued, the Division has a credit rating

4-17  within one of the three highest rating categories of a nationally

4-18  recognized rating agency.

4-19      Sec. 4.  NRS 319.190 is hereby amended to read as follows:

4-20      319.190  1.  The Division may make, undertake commitments

4-21  to make and participate with lending institutions in the making of

4-22  mortgage loans [,] and may make temporary loans and advances in

4-23  anticipation of mortgage loans [, and issue letters of credit pursuant

4-24  to subsection 2] to finance the acquisition, construction or

4-25  rehabilitation of residential housing, including , without limitation,

4-26  multifamily housing. Any loan made by the Division pursuant to

4-27  this section must be insured or guaranteed unless it is financed by an

4-28  issue of obligations of the Division that are insured or secured by

4-29  surety bonds, letters of credit not issued by the Division, guaranties

4-30  or other means of assuring repayment of those obligations. Such

4-31  loans may be made [or letters of credit issued] only after a

4-32  determination by the Administrator that mortgage loans [or letters of

4-33  credit] are not otherwise available from private lenders upon

4-34  reasonable equivalent terms and conditions.

4-35      2.  The Division may issue a letter of credit to finance the

4-36  acquisition, construction or rehabilitation of residential housing,

4-37  including, without limitation, multifamily housing, only if

4-38  [sufficient] :

4-39      (a) At the time a letter of credit is issued, the Division has a

4-40  credit rating within one of the three highest rating categories of a

4-41  nationally recognized rating agency;

4-42      (b) Sufficient reserves in the funds established by the Division

4-43  are deposited in a separate account to be used to pay any liabilities

4-44  that may be incurred by issuing the letter of credit [.] ;

5-1  (c) The aggregate amount of outstanding letters of credit issued

5-2  by the Division [must] and the proposed letter of credit does not

5-3  exceed $5,000,000 [.] ; and

5-4  (d) The Administrator has determined that a letter of credit is

5-5  not otherwise available from a private lender upon reasonable

5-6  equivalent terms and conditions.

5-7  Sec. 5.  NRS 319.270 is hereby amended to read as follows:

5-8  319.270  1.  Subject to the limitation imposed by subsections 4

5-9  and 5, the Division may issue its negotiable notes and bonds in such

5-10  principal amount as the Administrator determines to be necessary to

5-11  provide sufficient money for achieving any of its statutory purposes,

5-12  including the payment of interest on notes and bonds of the

5-13  Division, establishment of bond reserve funds and other reserves to

5-14  secure the notes and bonds, and all other expenditures of the

5-15  Division necessary or convenient to carry out its statutory purposes

5-16  and powers.

5-17      2.  Subject to any agreements with holders of notes or bonds, all

5-18  notes and bonds issued by the Division are special obligations of the

5-19  Division payable out of any revenues, money or other assets of the

5-20  Division pledged thereto.

5-21      3.  In issuing the notes and bonds, the Division acts as an

5-22  agency or instrumentality of the State of Nevada.

5-23      4.  Before any notes or bonds may be issued pursuant to this

5-24  section, except those issued for the purpose of refunding outstanding

5-25  notes or bonds, the Administrator must submit a copy of his finding

5-26  of the conditions prerequisite to the financing of residential housing

5-27  under this chapter to the State Board of Finance. If that Board

5-28  approves, the Division may proceed to issue its notes or bonds in the

5-29  amount approved, subject to the further limitation of subsection 5.

5-30      5.  The aggregate principal amount of outstanding bonds, notes

5-31  and other obligations of the Division must not exceed

5-32  [$2,000,000,000,] $5,000,000,000, of which $100,000,000 must be

5-33  allocated to veterans who qualify for loans under this chapter,

5-34  exclusive of any bonds, notes or obligations which have been

5-35  refunded[.] or which were issued at a time when the Division had

5-36  a credit rating within one of three highest rating categories of a

5-37  nationally recognized rating agency. The establishment of this debt

5-38  limitation does not prohibit the Division from issuing additional

5-39  bonds, notes or other obligations if the debt limitation is

5-40  subsequently increased.

5-41      Sec. 6.  NRS 242.131 is hereby amended to read as follows:

5-42      242.131  1.  The Department shall provide state agencies and

5-43  elected state officers with all their required design of information

5-44  systems. All agencies and officers must use those services and

5-45  equipment, except as otherwise provided in subsection 2.

6-1  2.  The following agencies may negotiate with the Department

6-2  for its services or the use of its equipment, subject to the provisions

6-3  of this chapter, and the Department shall provide those services and

6-4  the use of that equipment as may be mutually agreed:

6-5  (a) The Court Administrator;

6-6  (b) The Department of Motor Vehicles;

6-7  (c) The Department of Public Safety;

6-8  (d) The Department of Transportation;

6-9  (e) The Employment Security Division of the Department of

6-10  Employment, Training and Rehabilitation;

6-11      (f) The Division of Wildlife of the State Department of

6-12  Conservation and Natural Resources;

6-13      (g) The Housing Division of the Department of Business and

6-14  Industry;

6-15      (h) The Legislative Counsel Bureau;

6-16      [(h)] (i) The State Controller;

6-17      [(i)] (j) The State Gaming Control Board and Nevada Gaming

6-18  Commission; and

6-19      [(j)] (k) The University and Community College System of

6-20  Nevada.

6-21      3.  Any state agency or elected state officer who uses the

6-22  services of the Department and desires to withdraw substantially

6-23  from that use must apply to the Director for approval. The

6-24  application must set forth justification for the withdrawal. If the

6-25  Director denies the application, the agency or officer must:

6-26      (a) If the Legislature is in regular or special session, obtain the

6-27  approval of the Legislature by concurrent resolution.

6-28      (b) If the Legislature is not in regular or special session, obtain

6-29  the approval of the Interim Finance Committee. The Director shall,

6-30  within 45 days after receipt of the application, forward the

6-31  application together with his recommendation for approval or denial

6-32  to the Interim Finance Committee. The Interim Finance Committee

6-33  has 45 days after the application and recommendation are submitted

6-34  to its Secretary within which to consider the application. Any

6-35  application which is not considered by the Committee within the

6-36  45-day period shall be deemed approved.

6-37      4.  If the demand for services or use of equipment exceeds the

6-38  capability of the Department to provide them, the Department may

6-39  contract with other agencies or independent contractors to furnish

6-40  the required services or use of equipment and is responsible for the

6-41  administration of the contracts.

6-42      Sec. 7.  Section 8 of chapter 418, Statutes of Nevada 2001, at

6-43  page 2123, is hereby amended to read as follows:

6-44          Sec. 8. This act becomes effective on July 1, 2001, and

6-45  expires by limitation on July 1, [2003.] 2009.

7-1  Sec. 8.  1.  This section and sections 1, 3, 5, 6 and 7 of this act

7-2  become effective on July 1, 2003.

7-3  2.  Sections 1 and 3 of this act expire by limitation on June 30,

7-4  2009.

7-5  3.  Sections 2 and 4 of this act become effective on July 1,

7-6  2009.

 

7-7  H