Senate Bill No. 78–Committee on Government Affairs

 

CHAPTER..........

 

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:

 

    Section 1. 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:

    (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;

    (e) Develop or purchase, lease or otherwise acquire one or

 more information systems that the Division determines are

 necessary or convenient for the exercise of its powers and duties

 pursuant to this chapter and acquire any consulting, support or

 other service for such information systems;

    (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] must 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. 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 may [employ] :

    (a) 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 [.] ;

 and

    (b) Develop or purchase, lease or otherwise acquire one or

 more information systems that the Division determines are

 necessary or convenient for the exercise of its powers and duties

 pursuant to this chapter and acquire any consulting, support or

 other service for such information systems.

    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] must 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.

    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[,] and may make temporary loans and advances in

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

 finance the acquisition, construction, development, renewal,

 redevelopment, rehabilitation or refinancing of residential housing,

 including , without limitation, multifamily housing, within this

 state.

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

 acquisition, construction, development, renewal, redevelopment,

 rehabilitation or refinancing of residential housing, including,

 without limitation, multifamily housing, within this state if, at the

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

 within one of the three highest rating categories of a nationally

 recognized rating agency.

    Sec. 4.  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 [,] and may 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

 rehabilitation of residential housing, including , without limitation,

 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 to finance the

 acquisition, construction or rehabilitation of residential housing,

 including, without limitation, multifamily housing, only if

 [sufficient] :

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

 credit rating within one of the three highest rating categories of a

 nationally recognized rating agency;

    (b) 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 [.] ;

    (c) The aggregate amount of outstanding letters of credit issued

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

 exceed $5,000,000 [.] ; and

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

 not otherwise available from a private lender upon reasonable

 equivalent terms and conditions.

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

    319.270  1.  Subject to the limitation imposed by subsections 4

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

 principal amount as the Administrator determines to be necessary to

 provide sufficient money for achieving any of its statutory

 purposes, including the payment of interest on notes and bonds of

 the Division, establishment of bond reserve funds and other

 reserves to secure the notes and bonds, and all other expenditures of

 the Division necessary or convenient to carry out its statutory

 purposes and powers.

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

 notes and bonds issued by the Division are special obligations of

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

 the Division pledged thereto.

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

 agency or instrumentality of the State of Nevada.

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

 section, except those issued for the purpose of refunding

 outstanding

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

of the conditions prerequisite to the financing of residential housing

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

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

 the amount approved, subject to the further limitation of subsection

 5.

    5.  The aggregate principal amount of outstanding bonds, notes

 and other obligations of the Division must not exceed

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

 allocated to veterans who qualify for loans under this chapter,

 exclusive of any bonds, notes or obligations which have been

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

 a credit rating within one of three highest rating categories of a

 nationally recognized rating agency. The establishment of this

 debt limitation does not prohibit the Division from issuing

 additional bonds, notes or other obligations if the debt limitation is

 subsequently increased.

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

    242.131  1.  The Department shall provide state agencies and

 elected state officers with all their required design of information

 systems. All agencies and officers must use those services and

 equipment, except as otherwise provided in subsection 2.

    2.  The following agencies may negotiate with the Department

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

 of this chapter, and the Department shall provide those services and

 the use of that equipment as may be mutually agreed:

    (a) The Court Administrator;

    (b) The Department of Motor Vehicles;

    (c) The Department of Public Safety;

    (d) The Department of Transportation;

    (e) The Employment Security Division of the Department of

 Employment, Training and Rehabilitation;

    (f) The Division of Wildlife of the State Department of

 Conservation and Natural Resources;

    (g) The Housing Division of the Department of Business and

 Industry;

    (h) The Legislative Counsel Bureau;

    [(h)] (i) The State Controller;

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

 Commission; and

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

 Nevada.

    3.  Any state agency or elected state officer who uses the

 services of the Department and desires to withdraw substantially

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

 application must set forth justification for the withdrawal. If the

 Director denies the application, the agency or officer must:

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

approval of the Legislature by concurrent resolution.

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

 the approval of the Interim Finance Committee. The Director shall,

 within 45 days after receipt of the application, forward the

 application together with his recommendation for approval or

 denial to the Interim Finance Committee. The Interim Finance

 Committee has 45 days after the application and recommendation

 are submitted to its Secretary within which to consider the

 application. Any application which is not considered by the

 Committee within the

45-day period shall be deemed approved.

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

 capability of the Department to provide them, the Department may

 contract with other agencies or independent contractors to furnish

 the required services or use of equipment and is responsible for the

 administration of the contracts.

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

 page 2123, is hereby amended to read as follows:

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

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

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

 become effective on July 1, 2003.

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

 2009.

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

 2009.

 

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