(REPRINTED WITH ADOPTED AMENDMENTS) SECOND REPRINT
Assembly Bill No. 74-Committee on Government Affairs
January 27, 1997
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Referred to Committee on Government Affairs
SUMMARY--Authorizes counties and cities to convey certain property to nonprofit organizations for development of affordable housing. (BDR 20-228)
FISCAL NOTE: Effect on Local Government: No.
Effect on the State or on Industrial Insurance: No.
EXPLANATION - Matter in italics is new; matter in brackets [ ] is material to be omitted.
AN ACT relating to local governments; authorizing the board of county commissioners of a county or the governing body of a city to convey certain property to nonprofit organizations for the development of affordable housing; providing for the reversion of that property under certain circumstances; and providing other matters properly relating thereto.
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
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Section 1 Chapter 244 of NRS is hereby amended by adding thereto a new section to read as follows:
1. A nonprofit organization may submit to a board of county commissioners an application for conveyance of property that is owned by the county if the property was:
(a) Received by donation for the use and benefit of the county pursuant to NRS 244.270.
(b) Purchased by the county pursuant to NRS 244.275.
2. If a county that receives an application for conveyance pursuant to subsection 1 has a planning commission, the board of county commissioners shall refer the application to the planning commission. The planning commission shall consider the application and submit its recommendation to the board.
3. Before the board of county commissioners makes a determination on such an application for conveyance, it shall hold at least one public hearing on the application. Notice of the time, place and specific purpose of the hearing must be:
(a) Published at least once in a newspaper of general circulation in the county.
(b) Mailed to all owners of record of real property which is located not more than 300 feet from the property that is proposed for conveyance.
(c) Posted in a conspicuous place on the property that is proposed for conveyance.
The hearing must be held not fewer than 10 days but not more than 40 days after the notice is published, mailed and posted in accordance with this subsection.
4. The board of county commissioners may approve such an application for conveyance if the nonprofit organization demonstrates to the satisfaction of the board that the organization will use the property to develop affordable housing for families whose income does not exceed 80 percent of the median gross income for families residing in the same county, as that percentage is defined by the United States Department of Housing and Urban Development. If the board of county commissioners receives more than one application for conveyance of the property, the board must give priority to an application for conveyance of a nonprofit organization that demonstrates to the satisfaction of the board that the organization will use the property to develop affordable housing for persons who are disabled or elderly.
5. If the board of county commissioners approves an application for conveyance, it may convey the property to the nonprofit organization without consideration. Such a conveyance must not be in contravention of any condition in a gift or devise of the property to the county.
6. As a condition to the conveyance of the property pursuant to subsection 5, the board of county commissioners shall enter into an agreement with the nonprofit corporation that will ensure the affordability of any housing constructed on the property. The agreement must provide that the property automatically reverts to the county if, at any time after the date of conveyance pursuant to subsection 5, the nonprofit corporation fails to provide affordable housing on the property.
7. A board of county commissioners that has conveyed property pursuant to subsection 5 shall:
(a) Prepare annually a list which includes a description of all property that was conveyed to a nonprofit organization pursuant to this section; and
(b) Include the list in the annual audit of the county which is conducted pursuant to NRS 354.624.
8. If, 5 years after the date of a conveyance pursuant to subsection 5, a nonprofit organization has not commenced construction of affordable housing, or entered into such contracts as are necessary to commence the construction of affordable housing, the property that was conveyed automatically reverts to the county.
9. As used in this section, unless the context otherwise requires, "nonprofit organization" means an organization that is recognized as exempt pursuant to 26 U.S.C. § 501(c)(3).
Sec. 2 NRS 244A.739 is hereby amended to read as follows:
244A.739 1. [No] Except as otherwise provided in this section, a county shall [have the power to] not pay out of its general fund or otherwise contribute any part of the costs of acquiring, improving and equipping a project . [and]
2. A county shall not [have the power to] use land already owned by the county, or in which the county has an equity [(unless] interest for the construction of a project unless:
(a) The land was specifically acquired for [uses of the character herein described or unless the land is determined by the board] the purpose of a project;
(b) The board determines that the land is no longer [to be] necessary for other purposes of the county [purposes), for the construction thereon of a project or any part thereof.
2.] ; or
(c) The land is conveyed to a nonprofit organization pursuant to section 1 of this act.
3. The entire cost of acquiring, improving and equipping any project must be paid out of the proceeds from the sale of the bonds, but this provision [shall not be construed to] does not prevent a county from accepting donations of property to be used as a part of any project or money to be used for defraying any part of the cost of any project, including the completion of the project by the lessee, purchaser or obligor without any cost or liability to the county.
Sec. 3 Chapter 268 of NRS is hereby amended by adding thereto a new section to read as follows:
1. A nonprofit organization may submit to the governing body of a city an application for conveyance of property that is owned by the city if the property was purchased or received by the city pursuant to NRS 268.008.
2. If a city that receives an application for conveyance pursuant to subsection 1 has a planning commission, the governing body shall refer the application to the planning commission. The planning commission shall consider the application and submit its recommendation to the governing body.
3. Before the governing body makes a determination on such an application for conveyance, it shall hold at least one public hearing on the application. Notice of the time, place and specific purpose of the hearing must be:
(a) Published at least once in a newspaper of general circulation in the city.
(b) Mailed to all owners of record of real property which is located not more than 300 feet from the property that is proposed for conveyance.
(c) Posted in a conspicuous place on the property that is proposed for conveyance.
The hearing must be held not fewer than 10 days but not more than 40 days after the notice is published, mailed and posted in accordance with this subsection.
4. The governing body may approve such an application for conveyance if the nonprofit organization demonstrates to the satisfaction of the governing body that the organization will use the property to develop affordable housing for families whose income does not exceed 80 percent of the median gross income for families residing in the same city, as that percentage is defined by the United States Department of Housing and Urban Development. If the governing body receives more than one application for conveyance of the property, the governing body must give priority to an application for conveyance of a nonprofit organization that demonstrates to the satisfaction of the governing body that the organization will use the property to develop affordable housing for persons who are disabled or elderly.
5. If the governing body approves an application for conveyance, it may convey the property to the nonprofit organization without consideration. Such a conveyance must not be in contravention of any condition in a gift or devise of the property to the city.
6. As a condition to the conveyance of the property pursuant to subsection 5, the governing body shall enter into an agreement with the nonprofit corporation that will ensure the affordability of any housing constructed on the property. The agreement must provide that the property automatically reverts to the city if, at any time after the date of conveyance pursuant to subsection 5, the nonprofit corporation fails to provide affordable housing on the property.
7. A governing body that has conveyed property pursuant to subsection 5 shall:
(a) Prepare annually a list which includes a description of all property conveyed to a nonprofit organization pursuant to this section; and
(b) Include the list in the annual audit of the city which is conducted pursuant to NRS 354.624.
8. If, 5 years after the date of a conveyance pursuant to subsection 5, a nonprofit organization has not commenced construction of affordable housing, or entered into such contracts as are necessary to commence the construction of affordable housing, the property that was conveyed automatically reverts to the city.
9. As used in this section, unless the context otherwise requires, "nonprofit organization" means an organization that is recognized as exempt pursuant to 26 U.S.C. § 501(c)(3).
Sec. 4 NRS 268.558 is hereby amended to read as follows:
268.558 1. [No] Except as otherwise provided in this section, a city shall [have the power to] not pay out of its general fund or otherwise contribute any part of the cost of acquiring, improving and equipping a project . [and]
2. A city shall not [have the power to] use land already owned by the city, or in which the city has an equity [(unless] interest for the construction of a project unless:
(a) The land was specifically acquired by the city for [uses of the character herein described or unless the land is determined by] the purpose of a project;
(b) The governing body determines that the land is no longer [to be] necessary for other [municipal purposes), for the construction thereon of a project or any part thereof.
2.] purposes of the city; or
(c) The land is conveyed to a nonprofit organization pursuant to section 3 of this act.
3. The entire cost of acquiring, improving and equipping any project must be paid out of the proceeds from the sale of the bonds, but this provision [shall not be construed to] does not prevent a city from accepting donations of property to be used as a part of any project or money to be used for defraying any part of the cost of any project, including the completion of the project by the lessee, purchaser or obligor without any cost or liability to the city.
Sec. 5 NRS 354.624 is hereby amended to read as follows:
354.624 1. Each local government shall provide for an annual audit of all of its:
(a) Funds;
(b) Account groups; and
(c) Separate accounts established pursuant to NRS 354.603.
A local government may provide for more frequent audits as it deems necessary. Except as otherwise provided in subsection 2, each annual audit must be concluded and the report of the audit submitted to the governing body as provided in subsection 5 not later than 5 months after the close of the fiscal year for which the audit is conducted. An extension of this time may be granted by the department of taxation to any local government [which makes] that submits an application for an extension [.] to the department. If the local government fails to provide for an audit in accordance with the provisions of this section, the department of taxation shall cause the audit to be made at the expense of the local government. All audits must be [made] conducted by a public accountant who is certified or registered or by a partnership or professional corporation that is registered [under] pursuant to the provisions of chapter 628 of NRS.
2. The annual audit of a school district must be concluded and the report submitted to the board of trustees as provided in subsection 5 not later than 4 months after the close of the fiscal year for which the audit is conducted.
3. The governing body may, without requiring competitive bids, designate the auditor or firm annually. The auditor or firm must be designated not later than 3 months before the close of the fiscal year for which the audit is to be made.
4. Each annual audit must cover the business of the local government during the full fiscal year. It must be a financial audit conducted in accordance with generally accepted auditing standards, including comment on compliance with statutes and regulations, recommendations for improvements and any other comments deemed pertinent by the auditor, including his expression of opinion on the financial statements. The department of taxation shall prescribe the form of the financial statements , [must be prescribed by the department of taxation,] and the chart of accounts must be as nearly as possible the same as the chart that is used in the preparation and publication of the annual budget. The report of the audit must include:
(a) A schedule of all fees imposed by the local government which were subject to the provisions of NRS 354.5989;
(b) A comparison of the operations of the local government with the approved budget [and] , including a statement from the auditor that [previously noted] indicates whether the governing body has taken action by adoption as recommended, by adoption with modifications or by rejection on any deficiencies in operations and [previously made] recommendations for improvements [contained] which were noted or made in previous reports ; [have been acted upon by adoption as recommended, adoption with modifications or rejection; and]
(c) A statement from the auditor [indicating] that indicates whether each of the following funds established by the local government is being used expressly for the purposes for which it was created, in the form required by NRS 354.6241:
(1) An enterprise fund.
(2) An internal service fund.
(3) A trust and agency fund.
(4) A self-insurance fund.
(5) A fund whose balance is required by law to be:
(I) Used only for a specific purpose other than the payment of compensation to a bargaining unit, as defined in NRS 288.028; or
(II) Carried forward to the succeeding fiscal year in any designated amount [.] ; and
(d) A list and description of any property conveyed to a nonprofit organization pursuant to section 1 or 3 of this act.
5. The recommendations and the summary of the narrative comments contained in the report of the audit must be read in full at a meeting of the governing body held not more than 30 days after the report is submitted to it. Immediately thereafter, the entire report, together with any related letter to the governing body required by generally accepted auditing standards or by regulations adopted pursuant to NRS 354.594, must be filed as a public record with:
(a) The clerk or secretary of the governing body;
(b) The county clerk;
(c) The department of taxation; and
(d) In the case of a school district, the department of education.
6. The governing body shall act upon the recommendations of the report of the audit within 3 months after receipt of the report, unless prompter action is required concerning violations of law or regulation, by setting forth in its minutes its intention to adopt the recommendations, to adopt them with modifications or to reject them for reasons shown in the minutes.
Sec. 6 The provisions of subsection 1 of NRS 354.599 do not apply to any additional expenses of a local government that are related to the provisions of this act.