[Rev. 11/21/2013 4:03:50 PM--2013]

[NAC-319 Revised Date: 7-11]

CHAPTER 319 - ASSISTANCE TO FINANCE HOUSING

GENERAL PROVISIONS

319.005            Definitions.

319.010            Purpose and objectives.

319.015            Requirements of chapter: Effect of issuance of notes, bonds or other obligations.

319.020            Clarification of, relief from, information on or waiver of regulations.

ADVISORY COMMITTEE ON HOUSING

319.030            “Committee” defined.

319.032            Duties; quorum; meeting by telephone.

319.034            Appointment of members, Chair and Vice Chair; terms of office; removal of members.

319.036            Preparation and distribution of agenda; proxies and alternates prohibited.

319.038            Record of proceedings.

CERTIFICATION OF ASSISTED LIVING FACILITIES

319.251            Definitions.

319.253            “Assisted living facility” defined.

319.255            “Declaration of restrictive covenants and conditions” defined.

319.257            “Sponsor” defined.

319.259            Written request for certification; facilities financed through tax credits relating to low-income housing.

319.261            Action by Division.

319.263            Submission of requested information.

319.265            Notice of certification.

REPORTING CONCERNING RESIDENTIAL HOUSING FOR PERSONS WITH DISABILITIES

319.267            Definitions.

319.269            “Department” defined.

319.271            “Division” defined.

319.275            “Residential dwelling unit” defined.

319.277            “Owner of residential housing” interpreted.

319.279            “Unit of the residential housing that is available and suitable for use by a person with a disability” interpreted.

319.281            Quarterly reports to Division: Form and instructions.

319.283            Quarterly reports to Division: Submission; contents.

LOANS FOR SINGLE-FAMILY HOMES

319.300            Definitions.

319.320            “Deed of trust” defined.

319.325            “Deed of trust note” defined.

319.330            “Eligible borrower” defined.

319.345            “Eligible lending institution” defined.

319.365            “Household income” defined.

319.390            “Mortgage loan” defined.

319.395            “Mortgage purchase agreement” defined.

319.415            “Participating lending institution” defined.

319.420            “Program” defined.

319.425            “Qualified residence” defined.

319.460            Invitations and application for lending institutions to originate, sell and service mortgage loans.

319.463            Criteria for eligibility to participate in program; notice of acceptance.

319.466            Qualifications of eligible borrowers.

319.469            Mobile homes.

319.473            Ground for not purchasing or reconsidering purchase of mortgage loan.

319.476            Purchase of mortgage loans: Mortgage purchase agreement; notice to applicant.

319.479            Service of mortgage loans purchased by Division.

319.483            Persons prohibited from purchasing obligations of Division.

319.486            Examination of books and records.

319.489            Consent to jurisdiction of First Judicial District Court.

EMPLOYER-ASSISTED HOUSING PROGRAMS

319.491            Definitions.

319.492            “Eligible borrower” defined.

319.493            “Employer-assisted housing program” defined.

319.494            “Grant” defined.

319.495            “Participating employee group” defined.

319.496            “Participating employer” defined.

319.497            “Qualified organization” defined.

319.498            Grants to qualified organizations.

319.499            Requirements for loans to eligible borrowers; terms and conditions; limitation on fees.

319.501            Length of employment not a condition of eligibility for loan; multiple loans on same property prohibited.

SECOND MORTGAGE LOANS FOR DOWN PAYMENTS AND CLOSING COSTS

319.505            Definitions.

319.509            “Household income” defined.

319.513            “Median income for this State” defined.

319.516            “Participating lending institution” defined.

319.519            “Program to purchase second mortgage loans for down payments or closing costs” defined.

319.523            “Qualified applicant” defined.

319.526            “Qualified participating lending institution” defined.

319.529            “Qualified residence” defined.

319.533            “Second deed of trust” defined.

319.536            “Second deed of trust note” defined.

319.539            “Second mortgage loan” defined.

319.545            Determination of money available; selection of participating lending institutions; notice of acceptance.

319.549            Agreements for purchase and sale of second mortgage loans.

319.553            Criteria for qualified applicant.

319.556            Service of second mortgage loans by Division.

319.559            Requirements for second mortgage loans.

DEFERRED MORTGAGE LOANS FOR DOWN PAYMENTS AND CLOSING COSTS

319.562            Definitions.

319.5625          “Area median purchase price” defined.

319.563            “Deferred loan agreement” defined.

319.5635          “Deferred loan program for down payments or closing costs” defined.

319.564            “Deferred mortgage loan” defined.

319.5645          “Eligible applicant” defined.

319.565            “Eligible residence” defined.

319.5655          “Household income” defined.

319.566            “Median family income” defined.

319.5665          “Participating lending institution” defined.

319.567            “Second deed of trust” defined.

319.5675          Qualifications of eligible applicant.

319.568            Requirements for deferred mortgage loans.

ASSISTANCE FROM GENERAL RESERVE TRUST

319.572            Definitions.

319.574            “General Reserve Trust” defined.

319.576            “Project” defined.

319.578            “Residential use” defined.

319.580            Determination of availability of money in Trust.

319.584            Submission and approval of applications; fee; terms of assistance.

319.586            Determination of whether project will receive assistance.

319.588            Loans: Purposes; methods of guaranteeing repayment.

 

319.590            Loans: Execution of documents; assignment or sale.

319.592            Required period of tenancy for certain persons.

319.594            Examination of sponsor’s books, accounts and records.

LOANS FOR MULTIPLE-UNIT HOUSING AND SITES FOR MOBILE HOMES

319.600            Definitions.

319.610            “Eligible tenant” defined.

319.620            “Family” defined.

319.660            “Program” defined.

319.670            “Project” defined.

319.680            “Residential use” defined.

319.682            “Senior project” defined.

319.684            “Special needs project” defined.

319.686            “Sponsor” defined.

319.688            “Volume cap” defined.

319.690            Loans for projects.

319.700            Application for loan: Requirements; fee to be established.

319.710            Selection of projects.

319.711            Priorities for allocation of volume cap for projects.

319.7115          Prerequisites for project to receive volume cap from Division.

319.712            Prerequisites for submission of project to State Board of Finance for approval.

319.7125          Prerequisites required of sponsor to receive financing.

319.713            Issuance of taxable and tax-exempt bonds; use of proceeds.

319.7135          Percentage requirements of bonds.

319.714            Payment of cost of issuance of bonds.

319.7145          Review of contract for sale of land.

319.715            Credit enhancement.

319.7155          Amortization.

319.716            Prepayment.

319.7165          Nonrecourse loans.

319.717            Conversion to nonrecourse financing.

319.7175          Property ownership; obligations unrelated to project.

319.718            Debt service coverage.

319.7185          Escrow required of sponsor.

319.719            Loan to value percentage.

319.7195          Subordinate financing.

319.721            Regulatory agreement.

319.7215          Display of sign concerning financing of project.

319.722            Profit and overhead for developer; maximum interest rate on deferred note.

319.7225          Profit and overhead for contractor.

319.723            Assumption of loan.

319.725            Federally insured, guaranteed or subsidized loan required if project sponsored by certain partnerships.

319.730            Obligation of sponsor.

319.740            Interest rate.

319.750            Yield on loans.

319.760            Persons prohibited from purchasing obligations of Division.

319.770            Inspections to determine compliance.

319.780            Consent to jurisdiction of district courts.

319.790            Eligibility of tenant.

LOANS FOR CONSERVATION OF ENERGY

319.800            Definitions.

319.802            “Eligible borrower” defined.

319.804            “Loan to conserve energy” defined.

319.806            “Multiple-unit housing” defined.

319.808            “Program” defined.

319.810            “Residential use” defined.

319.812            Purpose.

319.814            Invitation for lending institutions to apply to sell loans.

319.816            Acceptance of application to sell loans.

319.818            Obligation of Division to purchase loan.

319.820            Contents of notice of acceptance.

319.822            Requirements for loan.

319.824            Requirements for loan for mobile home.

319.826            Loans to finance certain improvements.

319.828            Expected life of equipment and materials purchased with proceeds of loan.

319.830            Equipment and materials that need not be approved before loan is made.

319.832            Equipment and materials that must be approved before loan is purchased; prohibition against certain use of proceeds of loan.

319.834            Yield on loans.

319.836            Examination of books and records of originator or servicer of loan.

319.838            Consent to jurisdiction of district courts.

319.840            Service of loans purchased by Division.

319.842            Persons prohibited from purchasing obligations of Division.

ACQUISITION AND SALE OF LAND

319.850            Definitions.

319.852            Purpose.

319.854            Acquisition of land.

319.856            Financing for eligible housing.

319.858            Acceptance of applications.

319.860            Determination of sales price of land; acquisition of land.

319.862            Sale of land to sponsor.

319.864            Conditions for sale of land to sponsor.

319.866            Establishment of standards to determine prices, income and other requirements for eligible families or persons with special needs.

319.868            Examination of books and records of sponsor.

319.870            Consent to jurisdiction of district courts.

319.872            Persons prohibited from purchasing obligations of Division.

ACCOUNT FOR LOW-INCOME HOUSING

319.885            Definitions.

319.8855          “Account” defined.

319.887            “Eligible family” defined.

319.893            “Housing authority” defined.

319.895            “Local government” defined.

319.897            “Local share” defined.

319.8985          “Participating jurisdiction” defined.

319.899            “Project” defined.

319.906            Entities eligible to apply for money.

319.908            Eligibility of entity in limited partnership with for-profit organization.

319.910            Allocation and administration of money by Division.

319.912            Balance required before distribution; notice of solicitation of proposals; deadline for submission of proposals.

319.914            Solicitation of proposals and notification of money available following initial round of funding.

319.916            Submission of proposals between rounds of funding.

319.918            Proposals for projects not sought through local participating jurisdiction.

319.920            Refusal to consider proposal for failure to perform certain obligations.

319.922            Evaluation of proposals and determination of money awarded by participating jurisdiction; evaluation and approval of proposals by Division.

319.940            Execution of documents by successful applicants.

319.942            Distribution of money to other entities in lieu of Division of Welfare and Supportive Services.

319.944            Auditing of projects receiving money.

319.946            Periodic reports on use of money received.

319.948            Return of money to Division: Failure to use within 3 years.

319.950            Return of money to Division: Defunct projects; failure to benefit eligible families.

TAX CREDITS FOR LOW-INCOME HOUSING

319.951            Definitions.

319.953            “Applicant” defined.

319.955            “Code” defined.

319.956            “Compliance period” defined.

319.957            “Day” defined.

319.958            “Declaration of restrictive covenants and conditions” defined.

319.961            “Project sponsor” defined.

319.962            “Qualified allocation plan” defined.

319.964            “State ceiling” defined.

319.965            “Tax credit” defined.

319.967            Compliance with qualified allocation plan; action or statement by Division not implied or express representation or warranty of financial feasibility.

319.968            Recording of declaration of restrictive covenants and conditions.

319.970            Annual plan: Publication by Division; contents; application form.

319.971            Annual plan: Public hearings before adoption; notice of hearing; adoption; training sessions; fees.

319.972            Initial apportionment of tax credits; set-aside accounts; priorities; preference points; reservation of tax credits; unused tax credits.

319.974            Application: Submission; grounds for rejection; review and retention of rejected applications; subsequent reservation rounds.

319.975            Application: Review and determination of eligibility for reservation or award of tax credits; written notice to applicant; request for review of determination; restriction.

319.977            Application: Tentative ranking; proposed reservation of tax credits; request for review by Administrator; proposed reservation subject to change.

319.978            Final determination of reservation of tax credits; written notice to applicant; change in status of applicant; liability of Division.

319.979            Submission of progress report by project sponsor.

319.980            Carryover of reserved tax credits; written request; report of compliance with certain provisions of Code; limitation on carryover.

319.981            Closure of project after receiving reservation of tax credits; extension of time; termination of reservation; reapplication; fees.

319.983            Submission of final application for tax credits upon completion of project; determination of amount of award; additional statements and forms.

319.984            Administrative review of certain determinations and actions; written request for review; procedure for hearing; transcript of hearing; representation of parties; further proceedings and investigation; final decision; judicial review.

319.985            Receipt of application, notice or other document; computation of time.

319.986            Eligibility for reservation or award of tax credits; inspections by Division; additional conditions and requirements.

319.987            Determination of financial feasibility; analysis of pro forma by Division; additional criteria, assumptions and limitations.

319.988            Eligibility of nonprofit organization for reservation of tax credits; priority ranking; requirements upon final award.

319.989            Criteria for award of preference points.

319.990            Ranking of certain projects that receive equal number of preference points.

319.991            Calculation of reservation of tax credits; qualified census tracts; subsequent allocation rounds.

319.992            No award if amount of tax credits requested or required for project exceeds certain amount.

319.993            Calculation of final award of tax credits.

319.995            Compliance with certain provisions during compliance period; preparation of compliance manual by Division; records and reports; annual certification; inspections; notification of noncompliance; fees.

319.996            Projects financed by tax-exempt bonds: Applicability of certain provisions; application for tax credits.

319.998            Fees.

319.999            Limitation on amount of developer’s fee for certain projects.

 

 

 

GENERAL PROVISIONS

      NAC 319.005  Definitions. (NRS 319.140)  As used in this chapter, unless the context otherwise requires:

     1.  “Administrator” means the Administrator of the Division.

     2.  “Affordable housing” means housing designed for use by a person or family that qualifies for assistance pursuant to a project sponsored by the Division or for use by a person or family whose income does not exceed 180 percent of the median income for a person or family residing in the same county, as defined by the United States Department of Housing and Urban Development.

     3.  “Development corporation” means a corporation that develops, builds or facilitates the building of or manages structures for residential housing or that processes loans for residential properties.

     4.  “Division” means the Housing Division of the Department of Business and Industry.

     5.  “Governmental agency” has the meaning ascribed to it in NRS 319.070.

     6.  “Lending institution” has the meaning ascribed to it in NRS 319.090.

     7.  “Mortgage” has the meaning ascribed to it in NRS 319.100.

     8.  “Mortgage loan” has the meaning ascribed to it in NRS 319.110.

     9.  “Person with special needs” means a person identified by the Division as needing assistance to obtain affordable or specialty housing.

     10.  “Real property” has the meaning ascribed to it in NRS 319.120.

     11.  “Residential housing” has the meaning ascribed to it in NRS 319.130.

     12.  “Specialty housing” means housing that is designated for a specific segment of the population by the Division.

     (Added to NAC by Housing Div., eff. 4-13-88; A by R140-01, 8-2-2002; R124-04, 10-4-2004, eff. 7-1-2009)

      NAC 319.010  Purpose and objectives. (NRS 319.140)  The provisions of this chapter are adopted to accomplish the general purposes of chapter 319 of NRS and the following specific objectives:

     1.  Expanding the supply of money in this State which is available for:

     (a) New residential housing; and

     (b) Construction loans and permanent loans for multiple-unit housing,

Ê for families of low and moderate income;

     2.  Providing additional housing which is needed to remedy any shortage of adequate housing in the State for such families; and

     3.  Encouraging participation by lending institutions in the programs authorized by chapter 319 of NRS, while restricting the financial return and benefit to those lending institutions to that which is necessary and reasonable to induce participation.

     [Housing Division, Loans to Lending Institutions Reg. §§ 1 & 2, eff. 12-5-78; A and renumbered as § 1, 7-23-80; + Loans for Single-Family Homes Reg. §§ 1 & 2, eff. 5-8-78; A and renumbered as § 1, 7-23-80; + Loans for Multifamily Homes Reg. §§ 1 & 2, eff. 12-5-78; A and renumbered as § 1, 7-23-80]—(NAC A 4-13-88)

      NAC 319.015  Requirements of chapter: Effect of issuance of notes, bonds or other obligations. (NRS 319.140)  The issuance of notes, bonds or other obligations by the Division is conclusive evidence that the requirements of this chapter have been met, and the validity of any notes, bonds or other obligations of the Division is not affected by the failure to meet any of the requirements of this chapter.

     (Added to NAC by Housing Div. by R093-00, eff. 11-20-2000)

 

 

      NAC 319.020  Clarification of, relief from, information on or waiver of regulations. (NRS 319.140)

     1.  Any person desiring clarification of the provisions of this chapter, relief from the strict application of any of its terms, or information concerning procedures for dealing with the Division in connection with this chapter should address a written request to the Administrator of the Division.

     2.  The Administrator may waive any provision of this chapter if he or she determines that the waiver will assist in accomplishing the public purposes of the Division.

     [Housing Division, Loans to Lending Institutions Reg. § 12, eff. 7-23-80; + Loans for Single-Family Homes Reg. § 14, eff. 7-23-80; + Loans for Multifamily Homes Reg. § 13, eff. 7-23-80]—(NAC A by R093-00, 11-20-2000)

ADVISORY COMMITTEE ON HOUSING

      NAC 319.030  “Committee” defined. (NRS 319.140, 319.173)  As used in NAC 319.030 to 319.038, inclusive, unless the context otherwise requires, “Committee” means the Advisory Committee on Housing created pursuant to NRS 319.173.

     (Added to NAC by Housing Div., eff. 4-13-88)

      NAC 319.032  Duties; quorum; meeting by telephone. (NRS 319.140, 319.173)

     1.  The Committee shall:

     (a) Advise the Administrator on:

          (1) The issuance of obligations;

          (2) The development of new programs and the improvement of existing programs;

          (3) The Account for Low-Income Housing created by NRS 319.500;

          (4) The budget of the Division; and

          (5) Recent statutory changes that affect the Division.

     (b) Make recommendations for proposed legislation.

     2.  Five members of the Committee constitute a quorum.

     3.  A meeting of the Committee may be conducted by using a telephone conference call.

     (Added to NAC by Housing Div., eff. 4-13-88; A by R140-01, 8-2-2002)

      NAC 319.034  Appointment of members, Chair and Vice Chair; terms of office; removal of members. (NRS 319.140, 319.173)

     1.  The Director of the Department of Business and Industry shall appoint:

     (a) The eight members of the Committee that he or she is authorized to appoint pursuant to NRS 319.173 from a list of names submitted by the organizations represented;

     (b) A member within 90 days after a vacancy occurs; and

     (c) A Chair and Vice Chair from among the members of the Committee.

     2.  The term of office of each appointed member is 3 years, and each appointed member shall continue to serve until a person who is qualified to serve as a replacement is appointed as his or her successor.

     3.  The terms of office of appointed members must be staggered.

     4.  Each appointed member may serve for only two full terms. If a person was appointed to fill an unexpired term, he or she shall be deemed to have served a full term. Except as otherwise provided in subsection 2, an appointed member may not serve more than a total of 6 years on the Committee.

     5.  The Director may remove an appointed member for unexcused absence from two consecutive meetings of the Committee.

     (Added to NAC by Housing Div., eff. 4-13-88; A by R140-01, 8-2-2002; R103-05, 10-31-2005)

      NAC 319.036  Preparation and distribution of agenda; proxies and alternates prohibited. (NRS 319.140, 319.173)

     1.  The Administrator will prepare a written agenda for each meeting of the Committee and send a copy of the agenda by mail, facsimile machine or electronic mail to each member to allow sufficient time for each member to review the agenda before the meeting.

     2.  No member of the Committee may vote by proxy or designate an alternate to represent him or her at a meeting.

     3.  As used in this section:

     (a) “Electronic mail” has the meaning ascribed to it in NRS 41.715.

     (b) “Facsimile machine” means a device that sends or receives a reproduction or facsimile of a document or photograph which is transmitted electronically or telephonically by telecommunications lines.

     (Added to NAC by Housing Div., eff. 4-13-88; A by R140-01, 8-2-2002)

      NAC 319.038  Record of proceedings. (NRS 319.140, 319.173)  The Administrator will prepare a record of the proceedings of each meeting of the Committee and send a copy of the record to each member and to any person requesting it. The Administrator will keep the original as a permanent record.

     (Added to NAC by Housing Div., eff. 4-13-88)

CERTIFICATION OF ASSISTED LIVING FACILITIES

      NAC 319.251  Definitions. (NRS 319.140, 319.147)  As used in NAC 319.251 to 319.265, inclusive, unless the context otherwise requires, the words and terms defined in NAC 319.253, 319.255 and 319.257 have the meanings ascribed to them in those sections.

     (Added to NAC by Housing Div. by R018-06, eff. 6-1-2006)

      NAC 319.253  “Assisted living facility” defined. (NRS 319.140, 319.147)  “Assisted living facility” has the meaning ascribed to it in paragraph (a) of subsection 3 of NRS 422.2708.

     (Added to NAC by Housing Div. by R018-06, eff. 6-1-2006)

      NAC 319.255  “Declaration of restrictive covenants and conditions” defined. (NRS 319.140, 319.147)  “Declaration of restrictive covenants and conditions” has the meaning ascribed to it in NAC 319.958.

     (Added to NAC by Housing Div. by R018-06, eff. 6-1-2006)

      NAC 319.257  “Sponsor” defined. (NRS 319.140, 319.147)  “Sponsor” means a person, government, governmental agency or political subdivision of a government who has applied for and received tax credits for an assisted living facility pursuant to the provisions of NAC 319.951 to 319.999, inclusive, or any other person, government, governmental agency or political subdivision of a government who has an ownership interest in an assisted living facility that is financed through such tax credits or through other public funds.

     (Added to NAC by Housing Div. by R018-06, eff. 6-1-2006)

      NAC 319.259  Written request for certification; facilities financed through tax credits relating to low-income housing. (NRS 319.140, 319.147)

     1.  If the sponsor of an assisted living facility that satisfies the requirements of paragraphs (a) to (d), inclusive, of subsection 1 of NRS 319.147 wishes to obtain certification for the assisted living facility from the Division for the purpose of providing services pursuant to the provisions of the home and community-based services waiver which are amended pursuant to NRS 422.2708, the sponsor must submit a written request for certification to the Division.

 

     2.  If the assisted living facility for which a sponsor submits a request for certification pursuant to subsection 1 is financed through tax credits relating to low-income housing, the Division will provide to the Health Division of the Department of Health and Human Services a copy of:

     (a) The written notification of a reservation of tax credits provided by the Division pursuant to NAC 319.978; and

     (b) If the Division granted a request to carry over tax credits pursuant to NAC 319.980, documentation indicating that the Division granted the request.

     (Added to NAC by Housing Div. by R018-06, eff. 6-1-2006)

      NAC 319.261  Action by Division. (NRS 319.140, 319.147)  Before the Division will certify an assisted living facility for which a sponsor requests certification pursuant to NAC 319.259, the Division will:

     1.  Verify that the construction of the assisted living facility is complete.

     2.  Verify that a certificate of occupancy for the assisted living facility has been issued by the authority having jurisdiction to issue such a certificate of occupancy.

     3.  Conduct an inspection and review of the assisted living facility to determine whether it was constructed in accordance with the applicable requirements of the Division. The inspection and review must include, without limitation, an evaluation of:

     (a) The amenities provided in the assisted living facility;

     (b) The number and type of living units provided in the assisted living facility; and

     (c) Any energy efficiency measures used in the construction of the assisted living facility.

     4.  Review the contract terms of the service provider for the assisted living facility, including, without limitation, the contract terms concerning the services offered and provided to the tenants of the assisted living facility, to determine if those terms comply with the applicable requirements of the Division. The Division will not rate the quality of the services offered in the assisted living facility or certify or verify the standards of practice used in the assisted living facility as part of the review it conducts pursuant to this subsection.

     5.  If the assisted living facility is financed through tax credits relating to low-income housing, record a declaration of restrictive covenants and conditions for the assisted living facility, unless a declaration of restrictive covenants and conditions has already been recorded for the assisted living facility pursuant to the provisions of NAC 319.951 to 319.999, inclusive.

     6.  If the assisted living facility is financed through tax credits relating to low-income housing, verify that the amount of rent proposed to be charged to a tenant of the assisted living facility and any fee other than rent proposed to be charged to a tenant of the assisted living facility comply with the provisions of 26 U.S.C. § 42 concerning low-income housing tax credits.

     7.  Verify that the assisted living facility complies with the Uniform Physical Condition Standards set forth in 24 C.F.R. § 5.703.

     8.  If the assisted living facility is financed through tax credits relating to low-income housing, verify that the assisted living facility complies with the qualified allocation plan as that term is defined in NAC 319.962.

     9.  Verify any other information that the Division determines is necessary to determine whether the assisted living facility satisfies the requirements set forth in this section and NRS 319.147.

     (Added to NAC by Housing Div. by R018-06, eff. 6-1-2006)

 

 

 

 

 

 

      NAC 319.263  Submission of requested information. (NRS 319.140, 319.147)  A sponsor who requests certification for an assisted living facility pursuant to NAC 319.259 shall provide any information requested, in writing, by the Division for the purposes of verifying or obtaining information pursuant to NAC 319.261 within 30 days after receipt of the request from the Division. If the sponsor fails to submit the information within 30 days after receipt of the request from the Division, the Division may deny the request for certification of the assisted living facility.

     (Added to NAC by Housing Div. by R018-06, eff. 6-1-2006)

      NAC 319.265  Notice of certification. (NRS 319.140, 319.147)

     1.  If the Division approves a request for certification of an assisted living facility submitted to the Division pursuant to NAC 319.259, the Division will send a letter, signed by the Administrator, to the sponsor who requested certification for the assisted living facility by certified mail, return receipt requested, indicating that the assisted living facility is certified by the Division for the purpose of providing services pursuant to the provisions of the home and community-based services waiver which are amended pursuant to NRS 422.2708.

     2.  The Division will send a copy of each letter sent pursuant to subsection 1 to the Aging and Disability Services Division of the Department of Health and Human Services.

     3.  The Division may also send a notice of the certification of an assisted living facility to any other person or entity the Division determines should receive notice of the certification.

     (Added to NAC by Housing Div. by R018-06, eff. 6-1-2006)

REPORTING CONCERNING RESIDENTIAL HOUSING FOR PERSONS WITH DISABILITIES

      NAC 319.267  Definitions. (NRS 319.267)  As used in NAC 319.267 to 319.283, inclusive, unless the context otherwise requires, the words and terms defined in NAC 319.269, 319.271 and 319.275 have the meanings ascribed to them in those sections.

     (Added to NAC by Dep’t of Health & Human Services by R010-10, eff. 7-22-2010)

      NAC 319.269  “Department” defined. (NRS 319.267)  “Department” means the Department of Health and Human Services.

     (Added to NAC by Dep’t of Health & Human Services by R010-10, eff. 7-22-2010)

      NAC 319.271  “Division” defined. (NRS 319.267)  “Division” means the Aging and Disability Services Division of the Department.

     (Added to NAC by Dep’t of Health & Human Services by R010-10, eff. 7-22-2010)

      NAC 319.275  “Residential dwelling unit” defined. (NRS 319.267)  “Residential dwelling unit” has the meaning ascribed to it in NRS 278.4977.

     (Added to NAC by Dep’t of Health & Human Services by R010-10, eff. 7-22-2010)

      NAC 319.277  “Owner of residential housing” interpreted. (NRS 319.267)  As used in NRS 319.267 and NAC 319.283, the Department will interpret the term “owner of residential housing” to mean a person listed as the owner of a new or existing residential dwelling unit, as shown on the records of the county assessor for the county where the residential dwelling unit is located.

     (Added to NAC by Dep’t of Health & Human Services by R010-10, eff. 7-22-2010)

 

 

 

      NAC 319.279  “Unit of the residential housing that is available and suitable for use by a person with a disability” interpreted. (NRS 319.267)  As used in NRS 319.267, the Department will interpret the term “unit of the residential housing that is available and suitable for use by a person with a disability” to mean a new or existing residential dwelling unit that is available and includes, without limitation:

     1.  One entrance that is reasonably accessible by a wheelchair;

     2.  One bedroom that is reasonably accessible by a wheelchair; and

     3.  One bathroom that is reasonably accessible by a wheelchair, with a toilet that is reasonably accessible to a person with a disability.

     (Added to NAC by Dep’t of Health & Human Services by R010-10, eff. 7-22-2010)

      NAC 319.281  Quarterly reports to Division: Form and instructions. (NRS 319.267)  The Division shall adopt and provide a form and instructions for the report required pursuant to NRS 319.267.

     (Added to NAC by Dep’t of Health & Human Services by R010-10, eff. 7-22-2010)

      NAC 319.283  Quarterly reports to Division: Submission; contents. (NRS 319.267)

     1.  The information required to be reported by an owner of residential housing to the Division pursuant to NRS 319.267 must be submitted:

     (a) On the form provided by the Division pursuant to NAC 319.281; and

     (b) Not later than 30 calendar days after the end of each calendar quarter.

     2.  The report described in subsection 1, with regard to each dwelling unit that is available and suitable for a person with a disability, must include, without limitation:

     (a) The physical address of the residential dwelling unit;

     (b) The unit number of the residential dwelling unit;

     (c) The square footage of the residential dwelling unit;

     (d) The number of bedrooms in the residential dwelling unit;

     (e) The number of bathrooms in the residential dwelling unit;

     (f) The amount of rent charged for the residential dwelling unit;

     (g) The amount of any available subsidy payments toward the cost of the rent charged for the residential dwelling unit;

     (h) Any accessibility features of the residential dwelling unit, including the accessibility features described in NAC 319.279;

     (i) The physical address, electronic mail address and telephone number of:

          (1) The owner of residential housing; or

          (2) A designee of the owner of residential housing who has authority to rent or lease the residential dwelling unit; and

     (j) An attestation made by the owner of residential housing that, to the best of the knowledge and belief of the owner of residential housing, the information contained in the report is accurate and complete.

     3.  The report described in subsection 1, with regard to each residential dwelling unit that is suitable for a person with a disability but is currently unavailable, must include, without limitation:

     (a) The information required pursuant to paragraphs (i) and (j) of subsection 2; and

     (b) A statement indicating that the residential dwelling unit is currently unavailable.

     (Added to NAC by Dep’t of Health & Human Services by R010-10, eff. 7-22-2010)

LOANS FOR SINGLE-FAMILY HOMES

      NAC 319.300  Definitions. (NRS 319.140, 319.210)  As used in NAC 319.300 to 319.489, inclusive, unless the context otherwise requires, the words and terms defined in NAC 319.320 to 319.425, inclusive, have the meanings ascribed to them in those sections.

     (Supplied in codification; A by Housing Div. by R166-99, 6-15-2000; R192-08, 12-17-2008)

      NAC 319.320  “Deed of trust” defined. (NRS 319.140, 319.210)  “Deed of trust” means an instrument, including, without limitation, a deed of trust, mortgage deed or other mortgage, that secures a mortgage loan and deed of trust note and creates a first lien on a fee interest in real property located within the State.

     [Housing Division, Loans for Single-Family Homes Reg. § 3 subsec. b, eff. 5-8-78; Renumbered as § 2 subsec. 1, 7-23-80]—(NAC A by Housing Div. by R166-99, 6-15-2000)

      NAC 319.325  “Deed of trust note” defined. (NRS 319.140, 319.210)  “Deed of trust note” means a promissory note that:

     1.  Evidences a mortgage loan issued by a participating lending institution to an eligible borrower; and

     2.  Is secured by a deed of trust.

     (Added to NAC by Housing Div. by R166-99, eff. 6-15-2000)

      NAC 319.330  “Eligible borrower” defined. (NRS 319.140, 319.210)  “Eligible borrower” means a person who:

     1.  Desires to obtain financing for the acquisition cost of a qualified residence;

     2.  Qualifies as an eligible family pursuant to NRS 319.060; and

     3.  Has a household income that does not exceed 170 percent of the median income for the area in which the home is located, unless bond counsel selected by the Division approves a higher limit for a particular program.

     [Housing Division, Loans for Single-Family Homes Reg. § 3 subsec. c, eff. 5-8-78; A and renumbered as § 2 subsec. 2, 7-23-80]—(NAC A 4-13-88; R166-99, 6-15-2000; R192-08, 12-17-2008)

      NAC 319.345  “Eligible lending institution” defined. (NRS 319.140, 319.210)  “Eligible lending institution” means a bank, savings bank, mortgage banker or other financial institution that meets the requirements set forth in chapter 319 of NRS and NAC 319.463 for participating in a program as a lending institution.

     (Added to NAC by Housing Div. by R166-99, eff. 6-15-2000)

      NAC 319.365  “Household income” defined. (NRS 319.140, 319.210)  “Household income” means the income of the mortgagor and of any other person who will be living in the qualified residence and who is at least 18 years of age.

     (Added to NAC by Housing Div. by R166-99, eff. 6-15-2000; A by R192-08, 12-17-2008)

      NAC 319.390  “Mortgage loan” defined. (NRS 319.140, 319.210)  “Mortgage loan” means a loan that is:

     1.  Made to an eligible borrower to finance the acquisition cost of a qualified residence;

     2.  Evidenced by a deed of trust note; and

     3.  Secured by a deed of trust.

     (Added to NAC by Housing Div. by R166-99, eff. 6-15-2000)

      NAC 319.395  “Mortgage purchase agreement” defined. (NRS 319.140, 319.210)  “Mortgage purchase agreement” includes, without limitation, any documents incorporated by reference in or supplemental to that agreement.

     (Added to NAC by Housing Div. by R166-99, eff. 6-15-2000)

      NAC 319.415  “Participating lending institution” defined. (NRS 319.140, 319.210)  “Participating lending institution” means an eligible lending institution to which the Division has issued a notice of acceptance pursuant to NAC 319.463.

     (Added to NAC by Housing Div. by R166-99, eff. 6-15-2000)

      NAC 319.420  “Program” defined. (NRS 319.140, 319.210)  “Program” means each program administered by the Division pursuant to which the Division finances the purchase of mortgage loans from participating lending institutions.

     [Housing Division, Loans for Single-Family Homes Reg. § 3 subsec. k, eff. 5-8-78; A and renumbered as § 2 subsec. 8, 7-23-80]—(NAC A by R166-99, 6-15-2000; R136-03, 11-26-2003)

      NAC 319.425  “Qualified residence” defined. (NRS 319.140, 319.210)  “Qualified residence” means a residence that:

     1.  Is a single-family residence; and

     2.  Meets the criteria for a principal residence set forth in 26 C.F.R. § 6a.103A-2(d)(3).

     (Added to NAC by Housing Div. by R166-99, eff. 6-15-2000; A by R192-08, 12-17-2008)

      NAC 319.460  Invitations and application for lending institutions to originate, sell and service mortgage loans. (NRS 319.140, 319.210)

     1.  For each program, the Division will mail to eligible lending institutions invitations to apply to originate and sell mortgage loans to the Division, or to originate and sell mortgage loans to the Division and to service such loans for the Division. The invitations will:

     (a) Describe the documents required to be submitted by a participating lending institution to the Division before the Division will purchase a mortgage loan; and

     (b) Set forth the maximum purchase price for a single-family residence, the maximum income for eligible borrowers and a formula for determining the price at which the Division will purchase a mortgage loan from a participating lending institution for the particular program.

Ê If necessary, the Division may require a participating lending institution to submit more documentation or information than that specified in the invitation.

     2.  Upon request by an eligible lending institution that has received an invitation, the Division will send an application to that institution. To apply to participate in a program, an eligible lending institution must complete and return the application, accompanied by:

     (a) The form provided by the Division, entitled “Form of Opinion by Counsel to Lending Institution Applying to Sell Mortgage Loans to the Nevada Housing Division,” which has been completed by the legal counsel for the eligible lending institution; and

     (b) A copy of the most recent audited annual financial statement of the eligible lending institution.

     [Housing Division, Loans for Single-Family Homes Reg. § 4, eff. 5-8-78; A and renumbered as § 3, 7-23-80]—(NAC A by R166-99, 6-15-2000)

      NAC 319.463  Criteria for eligibility to participate in program; notice of acceptance. (NRS 319.140, 319.210)

     1.  To be eligible to participate in a program, a lending institution must:

     (a) Have a net worth of at least $500,000;

     (b) Maintain at least one office within this State that originates loans and deeds of trusts;

     (c) Customarily engage in originating or servicing loans and deeds of trusts, or in originating and servicing loans and deeds of trusts;

     (d) Be qualified to do business in this State;

     (e) Be licensed as required by applicable law;

     (f) Be authorized to commence business under a certificate issued by the Commissioner of Financial Institutions or the Commissioner of Mortgage Lending, if required by law;

     (g) Be in good standing with the federal, state or local regulatory agency having jurisdiction; and

 

 

 

 

     (h) Be a mortgagee approved by the Federal Housing Administration and the Department of Veterans Affairs, or be a seller or servicer of mortgage loans to and for the Federal Home Loan Mortgage Corporation or the Federal National Mortgage Association.

     2.  The Division will issue a notice of acceptance to each eligible lending institution which applies and is accepted by the Division to participate in a program.

     [Housing Division, Loans for Single-Family Homes Reg. § 5, eff. 5-8-78; A and renumbered as § 4, 7-23-80]—(NAC A 10-26-83; A by R166-99, 6-15-2000; R136-03, 11-26-2003)

      NAC 319.466  Qualifications of eligible borrowers. (NRS 319.140, 319.210)  An eligible borrower must:

     1.  Meet the criteria for underwriting applied by the Federal Housing Administration, the Department of Veterans Affairs, the Rural Development Administration of the United States Department of Agriculture or the private mortgage insurance company, as appropriate, depending on which entity insures or guarantees the mortgage loan.

     2.  Have assets, including, without limitation, savings accounts, stocks, bonds and equity in real property, that do not exceed 50 percent of the acquisition cost of the qualified residence, unless the borrower is disabled or elderly and the Division determines that such assets are the primary source of income for the borrower.

     (Added to NAC by Housing Div. by R166-99, eff. 6-15-2000; A by R192-08, 12-17-2008)

      NAC 319.469  Mobile homes. (NRS 319.140, 319.210)

     1.  The Division will purchase mortgage loans for the financing of mobile homes.

     2.  To be financed by the Division, a mobile home must:

     (a) Meet the requirements applied by the Federal Housing Administration, the Department of Veterans Affairs or a private mortgage insurance company, as appropriate, depending on which entity insures or guarantees the mortgage loan for the financing of the mobile home;

     (b) Have the running gear removed;

     (c) Be permanently affixed to a parcel of land; and

     (d) Be placed on the real property tax roll by the county assessor.

     [Housing Division, Loans for Single-Family Homes Reg. § 9, eff. 7-23-80]—(NAC A by R166-99, 6-15-2000)—(Substituted in revision for NAC 319.480)

      NAC 319.473  Ground for not purchasing or reconsidering purchase of mortgage loan. (NRS 319.140, 319.210)  In addition to any other remedies available to it, the Division will not:

     1.  Purchase a mortgage loan which was obtained by the use of intentionally false or misleading information in the application.

     2.  Reconsider the purchase of such a mortgage loan even if the applicant submits a corrected application.

     [Housing Division, Loans for Single-Family Homes Reg. § 15, eff. 7-23-80]—(NAC A by R166-99, 6-15-2000)—(Substituted in revision for NAC 319.500)

      NAC 319.476  Purchase of mortgage loans: Mortgage purchase agreement; notice to applicant. (NRS 319.140, 319.210)

     1.  For each mortgage loan which is purchased pursuant to a program, the Division will enter into a mortgage purchase agreement with a participating lending institution pursuant to which the participating lending institution agrees to sell to the Division all the right, title and interest of the institution in the mortgage loan that is referenced in the mortgage purchase agreement.

     2.  In making its decision to purchase a mortgage loan, the Division must have the financial records of the applicant for the mortgage loan at its disposal. The Division will issue to the applicant a notice which states substantially the following:

 

 

 

     Regarding your application for a home loan, pursuant to a program of the Housing Division of this State, the Division has examined your application file and financial records. This notice is sent to you pursuant to subsection 3 of NRS 239A.090 to notify you that the examination of your financial records has occurred and the reason for the examination. The examination included a review of all documents submitted with the application, including financial records, credit reports, income tax information and supporting documents.

     The decision on the loan has been communicated to your lender who will communicate with you.

 

     [Housing Division, Loans for Single-Family Homes Reg. §§ 8 & 9, eff. 5-8-78; A and renumbered as § 8, 7-23-80]—(NAC A by R166-99, 6-15-2000)—(Substituted in revision for NAC 319.510)

      NAC 319.479  Service of mortgage loans purchased by Division. (NRS 319.140, 319.210)  All mortgage loans purchased by the Division must be serviced by the Division or a servicer approved by the Division.

     [Housing Division, Loans for Single-Family Homes Reg. § 10, eff. 5-8-78; A 7-23-80]—(NAC A by R166-99, 6-15-2000)—(Substituted in revision for NAC 319.530)

      NAC 319.483  Persons prohibited from purchasing obligations of Division. (NRS 319.140, 319.210)  A lending institution, including any related person as defined in 26 U.S.C. § 147, shall not purchase the bonds or other obligations of the Division in an amount related to the aggregate principal amount of the mortgage loans to be sold to the Division by the lending institution.

     [Housing Division, Loans for Single-Family Homes Reg. § 13, eff. 5-8-78; A 7-23-80]—(NAC A 4-13-88)—(Substituted in revision for NAC 319.540)

      NAC 319.486  Examination of books and records. (NRS 319.140, 319.210, 319.240)  The Division may conduct such an examination of the books and records of each participating lending institution which has sold mortgage loans to the Division as the Division deems necessary or appropriate to determine compliance with the provisions of chapter 319 of NRS, NAC 319.300 to 319.489, inclusive, and any mortgage purchase agreement entered into between the Division and the participating lending institution. Each participating lending institution shall pay the cost of any examination of its books and records.

     [Housing Division, Loans for Single-Family Homes Reg. § 11, eff. 5-8-78; A 7-23-80]—(NAC A by R166-99, 6-15-2000)—(Substituted in revision for NAC 319.550)

      NAC 319.489  Consent to jurisdiction of First Judicial District Court. (NRS 319.140, 319.210)  Each mortgage purchase agreement must require the participating lending institution to consent to the jurisdiction of the First Judicial District Court of this State in any proceeding to enforce compliance with the provisions of chapter 319 of NRS, NAC 319.300 to 319.489, inclusive, and the mortgage purchase agreement.

     [Housing Division Loans for Single-Family Homes Reg. § 12, eff. 5-8-78; A 7-23-80]—(NAC A by R166-99, 6-15-2000)—(Substituted in revision for NAC 319.560)

EMPLOYER-ASSISTED HOUSING PROGRAMS

      NAC 319.491  Definitions. (NRS 319.140, § 3 of ch. 348, Stats. 2007)  As used in NAC 319.491 to 319.501, inclusive, unless the context otherwise requires, the words and terms defined in NAC 319.492 to 319.497, inclusive, have the meanings ascribed to them in those sections.

     (Added to NAC by Housing Div. by R192-08, eff. 12-17-2008)

      NAC 319.492  “Eligible borrower” defined. (NRS 319.140, § 3 of ch. 348, Stats. 2007)  “Eligible borrower” means a person who:

     1.  Is a member of a participating employee group;

     2.  Is a member of an eligible family as defined in NRS 319.060;

     3.  Has a household income that does not exceed 170 percent of the median income for the area in which the home is located, unless the Division approves a higher limit; and

     4.  Completes a homebuyer education class approved by the Division that is in accordance with the homebuyer education topics, guidelines and protocols of the United States Department of Housing and Urban Development.

     (Added to NAC by Housing Div. by R192-08, eff. 12-17-2008)

      NAC 319.493  “Employer-assisted housing program” defined. (NRS 319.140, § 3 of ch. 348, Stats. 2007)  “Employer-assisted housing program” means a program to provide down-payment and closing-cost assistance to employees who are members of a participating employee group and are employed by a participating employer in securing affordable housing in this State.

     (Added to NAC by Housing Div. by R192-08, eff. 12-17-2008)

      NAC 319.494  “Grant” defined. (NRS 319.140, § 3 of ch. 348, Stats. 2007)  “Grant” means a grant of money awarded by the Division pursuant to NAC 319.491 to 319.501, inclusive, to a qualified organization to establish an employer-assisted housing program.

     (Added to NAC by Housing Div. by R192-08, eff. 12-17-2008)

      NAC 319.495  “Participating employee group” defined. (NRS 319.140, § 3 of ch. 348, Stats. 2007)  “Participating employee group” means a recognized group of employees of a participating employer, including, without limitation, a group of employees who are the beneficiaries under a Taft-Hartley Trust formed pursuant to 29 U.S.C. § 186(c)(5) which qualifies as an employee welfare benefit plan and which represents multiple employers.

     (Added to NAC by Housing Div. by R192-08, eff. 12-17-2008)

      NAC 319.496  “Participating employer” defined. (NRS 319.140, § 3 of ch. 348, Stats. 2007)  “Participating employer” means an employer that has agreed to participate in an employer-assisted housing program.

     (Added to NAC by Housing Div. by R192-08, eff. 12-17-2008)

      NAC 319.497  “Qualified organization” defined. (NRS 319.140, § 3 of ch. 348, Stats. 2007)  “Qualified organization” means an organization which:

     1.  Is a nonprofit organization that is exempt from taxation pursuant to 26 U.S.C. § 501(c)(3);

     2.  Is in good standing with the Office of the Secretary of State;

     3.  Has the specifically designated purpose of promoting affordable or subsidized single-family housing located within this State;

     4.  Has demonstrated the ability for a period of not less than 5 consecutive years to process and service loans either directly or in conjunction with a loan servicer approved by the Division; and

     5.  Has a financial net worth of not less than $1,000,000.

     (Added to NAC by Housing Div. by R192-08, eff. 12-17-2008)

      NAC 319.498  Grants to qualified organizations. (NRS 319.140, § 3 of ch. 348, Stats. 2007)

     1.  The Division may award grants of money to qualified organizations to establish employer-assisted housing programs.

     2.  If a qualified organization that receives a grant fails to maintain a net worth of $1,000,000, excluding the value of the grant, the organization shall immediately return to the Division any remaining amount of the grant that has not been committed for expenditure.

     3.  Before a qualified organization that receives a grant may contract or award a subgrant for services of more than $2,000 to be paid from the proceeds of the grant, the contract or subgrant must be approved by the Administrator.

     4.  A qualified organization that receives a grant is subject to audit by the Division with respect to the grant at any reasonable time to ensure its compliance with all applicable laws and regulations of this State.

     (Added to NAC by Housing Div. by R192-08, eff. 12-17-2008)

      NAC 319.499  Requirements for loans to eligible borrowers; terms and conditions; limitation on fees. (NRS 319.140, § 3 of ch. 348, Stats. 2007)

     1.  A qualified organization that receives a grant may make a secured loan of not more than $20,000 from the proceeds of the grant to an eligible borrower for down-payment and closing-cost assistance in the purchase of affordable housing.

     2.  A qualified organization that makes such a loan shall:

     (a) Verify the eligibility of the borrower;

     (b) Ensure timely and accurate disbursement of the loan money to the borrower;

     (c) Administer the loan for as long as the loan has principal outstanding;

     (d) Annually verify, through a current policy of homeowners’ insurance or property tax bill, that the borrower uses the home as his or her primary residence;

     (e) Confirm that the borrower is a member of a participating employee group;

     (f) Not lend to a borrower for a home which is outside this State or which is not located in a county in this State in which his or her employer has an established place of business;

     (g) Provide documentation that informs the borrower of the possibility of federal tax liability if any portion of the principal of the loan is forgiven; and

     (h) Verify that the borrower has completed a homebuyer education class approved by the Division before funding the loan.

     3.  A loan made by a qualified organization pursuant to this section must not be funded unless:

     (a) The participating employer by whom the borrower is employed contributes matching money equal to the amount of the loan; and

     (b) The borrower contributes at least 1 percent of the total purchase price of the home toward the purchase of the home.

     4.  All terms of the loan, including, without limitation, terms of repayment, interest rates, fees and underwriting criteria, must be specified in a memorandum of understanding approved by the qualified organization and an authorized representative of the participating employee group of which the borrower is a member.

     5.  A loan may have an interest rate of zero percent.

     6.  A loan becomes due and payable:

     (a) Upon the sale, transfer or refinancing of the home;

     (b) Upon the death of the borrower and the settlement of his or her estate;

     (c) If the borrower operates a business from the home; or

     (d) If the borrower ceases to reside in the home as his or her primary residence.

     7.  A loan must be secured, but may be subordinated to the rights of not more than two other lenders to allow the borrower to take advantage of other forms of down-payment assistance so long as the total of all forms of secured debt is not more than 99 percent of the verified sale price of the home.

     8.  If a qualified organization imposes administrative fees on borrowers to whom it makes loans, the total amount of such fees imposed on all borrowers must not exceed 10 percent of the amount of the grant received by the qualified organization.

     (Added to NAC by Housing Div. by R192-08, eff. 12-17-2008)

 

 

      NAC 319.501  Length of employment not a condition of eligibility for loan; multiple loans on same property prohibited. (NRS 319.140, § 3 of ch. 348, Stats. 2007)

     1.  The length of a borrower’s employment is not a condition of eligibility for a loan.

     2.  Two or more employees may not apply for multiple loans pursuant to NAC 319.499 on the same property.

     (Added to NAC by Housing Div. by R192-08, eff. 12-17-2008)

SECOND MORTGAGE LOANS FOR DOWN PAYMENTS AND CLOSING COSTS

      NAC 319.505  Definitions. (NRS 319.140, 319.210)  As used in NAC 319.505 to 319.559, inclusive, unless the context otherwise requires, the words and terms defined in NAC 319.509 to 319.539, inclusive, have the meanings ascribed to them in those sections.

     (Added to NAC by Housing Div. by R166-99, eff. 6-15-2000)

      NAC 319.509  “Household income” defined. (NRS 319.140, 319.210)  “Household income” has the meaning ascribed to it in NAC 319.365.

     (Added to NAC by Housing Div. by R166-99, eff. 6-15-2000)

      NAC 319.513  “Median income for this State” defined. (NRS 319.140, 319.210)  “Median income for this State” means the median income that is established for this State by the United States Department of Housing and Urban Development.

     (Added to NAC by Housing Div. by R166-99, eff. 6-15-2000)

      NAC 319.516  “Participating lending institution” defined. (NRS 319.140, 319.210)  “Participating lending institution” has the meaning ascribed to it in NAC 319.415.

     (Added to NAC by Housing Div. by R166-99, eff. 6-15-2000)

      NAC 319.519  “Program to purchase second mortgage loans for down payments or closing costs” defined. (NRS 319.140, 319.210)  “Program to purchase second mortgage loans for down payments or closing costs” means each program administered by the Division pursuant to which the Division purchases second mortgage loans from qualified participating lending institutions.

     (Added to NAC by Housing Div. by R166-99, eff. 6-15-2000)

      NAC 319.523  “Qualified applicant” defined. (NRS 319.140, 319.210)  “Qualified applicant” means a person who:

     1.  Desires to obtain financing for the down payment or the closing costs, or both, for a qualified residence; and

     2.  Meets the criteria set forth in NAC 319.553.

     (Added to NAC by Housing Div. by R166-99, eff. 6-15-2000)

      NAC 319.526  “Qualified participating lending institution” defined. (NRS 319.140, 319.210)  “Qualified participating lending institution” means a participating lending institution to which the Division has issued a notice of acceptance pursuant to NAC 319.545.

     (Added to NAC by Housing Div. by R166-99, eff. 6-15-2000)

      NAC 319.529  “Qualified residence” defined. (NRS 319.140, 319.210)  “Qualified residence” has the meaning ascribed to it in NAC 319.425.

     (Added to NAC by Housing Div. by R166-99, eff. 6-15-2000)

 

      NAC 319.533  “Second deed of trust” defined. (NRS 319.140, 319.210)  “Second deed of trust” means an instrument, including, without limitation, a deed of trust, mortgage deed or other mortgage, that secures a second mortgage loan and second deed of trust note and creates a second lien, which is junior to a first lien, on a fee interest in real property located within this State.

     (Added to NAC by Housing Div. by R166-99, eff. 6-15-2000)

      NAC 319.536  “Second deed of trust note” defined. (NRS 319.140, 319.210)  “Second deed of trust note” means a promissory note that:

     1.  Evidences a second mortgage loan issued by a qualified participating lending institution to a qualified applicant; and

     2.  Is secured by a second deed of trust.

     (Added to NAC by Housing Div. by R166-99, eff. 6-15-2000)

      NAC 319.539  “Second mortgage loan” defined. (NRS 319.140, 319.210)  “Second mortgage loan” means a loan that is:

     1.  Made to a qualified applicant for the payment of the down payment or closing costs, or both, for a qualified residence;

     2.  Evidenced by a second deed of trust note; and

     3.  Secured by a second deed of trust.

     (Added to NAC by Housing Div. by R166-99, eff. 6-15-2000)

      NAC 319.545  Determination of money available; selection of participating lending institutions; notice of acceptance. (NRS 319.140, 319.210)

     1.  The Division will determine annually the amount of money that is available for each program to purchase second mortgage loans for down payments or closing costs.

     2.  To select the participating lending institutions that will participate in a program to purchase second mortgage loans for down payments or closing costs, the Division will:

     (a) Verify the status of the lending institution as a participating lending institution;

     (b) Consider the quality of participation of the participating lending institution in a program administered by the Division pursuant to NAC 319.300 to 319.489, inclusive; and

     (c) Consider the extent of previous participation, if any, of the participating lending institution in a program which is administered by the Division to purchase second mortgage loans for down payments or closing costs.

     3.  The Division will issue a notice of acceptance to each lending institution that is selected by the Division to participate as a qualified participating lending institution in a program to purchase second mortgage loans for down payments or closing costs.

     (Added to NAC by Housing Div. by R166-99, eff. 6-15-2000; A by R136-03, 11-26-2003)

      NAC 319.549  Agreements for purchase and sale of second mortgage loans. (NRS 319.140, 319.210)

     1.  The Division will enter into an agreement for the purchase and sale of second mortgage loans with a qualified participating lending institution selected pursuant to NAC 319.545 that desires to sell second mortgage loans to the Division.

     2.  Each agreement for the purchase and sale of second mortgage loans must:

     (a) Set forth the standards for:

          (1) Eligibility as a qualified applicant; and

          (2) The purchase of a second mortgage loan by the Division; and

     (b) Require the qualified participating lending institution to consent to the jurisdiction of the First Judicial District Court of this State in any proceedings to enforce compliance with the provisions of chapter 319 of NRS and NAC 319.505 to 319.559, inclusive.

     (Added to NAC by Housing Div. by R166-99, eff. 6-15-2000)

      NAC 319.553  Criteria for qualified applicant. (NRS 319.140, 319.210)  A qualified applicant must:

     1.  Have obtained or be in the process of obtaining a mortgage loan for the purchase of a qualified residence pursuant to a program administered by the Division pursuant to NAC 319.300 to 319.489, inclusive;

     2.  Have a household income of not more than 80 percent of the median income for this State unless the mortgage loan is not funded with money from the Federal Government, in which case the Administrator may authorize, in his or her sole discretion, a household income in excess of 80 percent of the median income for this State;

     3.  After paying closing costs for the qualified residence, have no more than $5,000 in liquid assets in his or her possession;

     4.  Meet the criteria for underwriting applied by the Federal Housing Administration, the Department of Veterans Affairs, the private mortgage insurance company or the Federal National Mortgage Association, as the case may be; and

     5.  Have completed a training course on the purchase of a home approved by the:

     (a) Entity that insures or guarantees the mortgage loan; or

     (b) Division, if the entity described in paragraph (a) has not approved such a course.

     (Added to NAC by Housing Div. by R166-99, eff. 6-15-2000; A by R124-04, 10-4-2004)

      NAC 319.556  Service of second mortgage loans by Division. (NRS 319.140, 319.210)  The Division will service the second mortgage loans originated pursuant to a program to purchase second mortgage loans for down payments or closing costs.

     (Added to NAC by Housing Div. by R166-99, eff. 6-15-2000)

      NAC 319.559  Requirements for second mortgage loans. (NRS 319.140, 319.210)  Each second mortgage loan purchased by the Division must:

     1.  Be of an amount that:

     (a) Does not exceed $3,500 for a qualified applicant with a household income of more than 60 percent but not more than 80 percent of the median income for this State; or

     (b) Does not exceed $5,000 for a qualified applicant with a household income equal to or less than 60 percent of the median income for this State; and

     2.  Meet the applicable terms and conditions of the agreement for the purchase and sale of second mortgage loans entered into by the Division and the qualified participating lending institution.

     (Added to NAC by Housing Div. by R166-99, eff. 6-15-2000)

DEFERRED MORTGAGE LOANS FOR DOWN PAYMENTS AND CLOSING COSTS

      NAC 319.562  Definitions. (NRS 319.140, 319.145, 319.210)  As used in NAC 319.562 to 319.568, inclusive, unless the context otherwise requires, the words and terms defined in NAC 319.5625 to 319.567, inclusive, have the meanings ascribed to them in those sections.

     (Added to NAC by Housing Div. by R136-03, eff. 11-26-2003)

      NAC 319.5625  “Area median purchase price” defined. (NRS 319.140, 319.145, 319.210)  “Area median purchase price” means 95 percent of the median purchase price for a single-family residence in the area in which the residence is located, as established by the United States Department of Housing and Urban Development.

     (Added to NAC by Housing Div. by R136-03, eff. 11-26-2003)

 

 

      NAC 319.563  “Deferred loan agreement” defined. (NRS 319.140, 319.145, 319.210)  “Deferred loan agreement” means an agreement that:

     1.  Evidences a deferred mortgage loan issued to an eligible applicant; and

     2.  Is secured by a second deed of trust.

     (Added to NAC by Housing Div. by R136-03, eff. 11-26-2003)

      NAC 319.5635  “Deferred loan program for down payments or closing costs” defined. (NRS 319.140, 319.145, 319.210)  “Deferred loan program for down payments or closing costs” means each program administered by the Division for which the Division uses money received from the United States Department of Housing and Urban Development pursuant to the HOME Investment Partnerships Act, 42 U.S.C. §§ 12701 et seq., to finance deferred mortgage loans.

     (Added to NAC by Housing Div. by R136-03, eff. 11-26-2003)

      NAC 319.564  “Deferred mortgage loan” defined. (NRS 319.140, 319.145, 319.210)  “Deferred mortgage loan” means a loan, the repayment of which is deferred, that is:

     1.  Made to an eligible applicant for the payment of the down payment or the closing costs, or both, for an eligible residence;

     2.  Evidenced by a deferred loan agreement; and

     3.  Secured by a second deed of trust.

     (Added to NAC by Housing Div. by R136-03, eff. 11-26-2003)

      NAC 319.5645  “Eligible applicant” defined. (NRS 319.140, 319.145, 319.210)  “Eligible applicant” means a person who:

     1.  Desires to obtain financing for the down payment or the closing costs, or both, for an eligible residence; and

     2.  Meets the criteria set forth in NAC 319.5675.

     (Added to NAC by Housing Div. by R136-03, eff. 11-26-2003)

      NAC 319.565  “Eligible residence” defined. (NRS 319.140, 319.145, 319.210)  “Eligible residence” means a residence that:

     1.  Is a single-family residence constructed after 1978;

     2.  Meets the criteria for a principal residence set forth in 26 C.F.R. § 6a.103A-2(d)(3);

     3.  Has a value that does not exceed the area median purchase price;

     4.  Has not been occupied by a tenant, other than the eligible applicant, during the 6 months immediately preceding the date on which the eligible applicant applied for the deferred mortgage loan;

     5.  Meets the criteria for underwriting applied by the Federal Housing Administration or the Department of Veterans Affairs, depending on which entity insures or guarantees the mortgage loan; and

     6.  Is not located in a designated runway clear zone or clear zone, as defined in 24 C.F.R. § 51.301(d).

     (Added to NAC by Housing Div. by R136-03, eff. 11-26-2003)

      NAC 319.5655  “Household income” defined. (NRS 319.140, 319.145, 319.210)  “Household income”:

     1.  Means the income of the mortgagor and of any other person who will be living in the eligible residence and who is at least 18 years of age; and

     2.  Must be determined in accordance with the provisions of 42 U.S.C. § 1437f and the regulations adopted pursuant thereto concerning determination of income.

     (Added to NAC by Housing Div. by R136-03, eff. 11-26-2003)

 

      NAC 319.566  “Median family income” defined. (NRS 319.140, 319.145, 319.210)  “Median family income” means the percentage of median family income as prescribed by the HOME Investment Partnerships Act, 42 U.S.C. §§ 12701 et seq., adjusted for household size, which is established for each area of this State by the United States Department of Housing and Urban Development.

     (Added to NAC by Housing Div. by R136-03, eff. 11-26-2003)

      NAC 319.5665  “Participating lending institution” defined. (NRS 319.140, 319.145, 319.210)  “Participating lending institution” has the meaning ascribed to it in NAC 319.415.

     (Added to NAC by Housing Div. by R136-03, eff. 11-26-2003)

      NAC 319.567  “Second deed of trust” defined. (NRS 319.140, 319.145, 319.210)  “Second deed of trust” means an instrument, including, without limitation, a deed of trust, mortgage deed or other mortgage, that secures a deferred mortgage loan and a deferred loan agreement and creates a second lien, which is junior to a first lien, on a fee interest in real property located within this State.

     (Added to NAC by Housing Div. by R136-03, eff. 11-26-2003)

      NAC 319.5675  Qualifications of eligible applicant. (NRS 319.140, 319.145, 319.210)  An eligible applicant must:

     1.  Have obtained or be in the process of obtaining a mortgage loan for the purchase of an eligible residence pursuant to a program administered by the Division pursuant to NAC 319.300 to 319.489, inclusive;

     2.  Submit a completed application for a mortgage loan pursuant to NAC 319.300 to 319.489, inclusive, to a participating lending institution indicating the desire to be considered for a deferred mortgage loan;

     3.  Have a household income of not more than the median family income;

     4.  After paying closing costs for the eligible residence, have not more than $5,000 in liquid assets in his or her possession;

     5.  Contribute a minimum cash investment of $500;

     6.  Meet the criteria for underwriting applied by the Federal Housing Administration or the Department of Veterans Affairs, depending on which entity insures or guarantees the mortgage loan; and

     7.  Have completed a training course on the purchase of a home approved by the:

     (a) Entity that insures or guarantees the mortgage loan; or

     (b) Division, if the entity described in paragraph (a) has not approved such a course.

     (Added to NAC by Housing Div. by R136-03, eff. 11-26-2003)

      NAC 319.568  Requirements for deferred mortgage loans. (NRS 319.140, 319.145, 319.210)  Each deferred mortgage loan financed by the Division must:

     1.  Be of an amount that:

     (a) Does not reduce the ratio of mortgage payment to income of the eligible applicant, calculated as prescribed by the Federal Housing Administration, below 29 percent; or

     (b) Does not reduce the ratio of total fixed payment to income of the eligible applicant, calculated as prescribed by the Department of Veterans Affairs, below 41 percent;

     2.  Not provide for money to be used for any purpose other than the down payment or the closing costs, or both;

     3.  Not provide to the eligible applicant at closing any cash refund that is $50 or more;

     4.  Not create a ratio of combined loan to value, including the mortgage loan and the deferred mortgage loan, exceeding 100 percent; and

     5.  Meet the applicable requirements of the HOME Investment Partnerships Act, 42 U.S.C. §§ 12701 et seq.

     (Added to NAC by Housing Div. by R136-03, eff. 11-26-2003)

ASSISTANCE FROM GENERAL RESERVE TRUST

      NAC 319.572  Definitions. (NRS 319.140)  As used in NAC 319.572 to 319.594, inclusive, unless the context otherwise requires, the words and terms defined in NAC 319.574, 319.576 and 319.578 have the meanings ascribed to them in those sections.

     (Added to NAC by Housing Div., eff. 4-13-88; A by R140-01, 8-2-2002; R124-04, 10-4-2004, eff. 7-1-2009)

      NAC 319.574  “General Reserve Trust” defined. (NRS 319.140)  “General Reserve Trust” means the Trust created by the Division for the benefit of the Division and the owners of designated bonds and to:

     1.  Provide money to pay the costs incurred in creating, developing, maintaining or carrying out projects;

     2.  Pay, upon the approval of the Administrator, the principal or interest or redemption premium, if any, on designated bonds specified by the Division if no other money is available for those payments;

     3.  Provide money for the general operating expenses of the Division; and

     4.  Provide money for loans, grants, services and commitments for loans, grants and services from the Division that assist the Division in exercising its powers and carrying out its duties and objectives as set forth in chapter 319 of NRS.

     (Added to NAC by Housing Div., eff. 4-13-88; A by R140-01, 8-2-2002; R124-04, 10-4-2004, eff. 7-1-2009)

      NAC 319.576  “Project” defined. (NRS 319.140)  “Project” means a housing facility for residential use which consists of two or more dwelling units for occupancy by eligible tenants on a rental basis.

     (Added to NAC by Housing Div., eff. 4-13-88; A by R140-01, 8-2-2002)

      NAC 319.578  “Residential use” defined. (NRS 319.140)  “Residential use” means the use of each unit in a project as the principal residence of the tenant but not as a vacation or second home or place of business.

     (Added to NAC by Housing Div., eff. 4-13-88; A by R140-01, 8-2-2002; R124-04, 10-4-2004, eff. 7-1-2009)

      NAC 319.580  Determination of availability of money in Trust. (NRS 319.140)  At least once each year, the Administrator will determine the amount available in the General Reserve Trust to finance or create a project after first determining the ongoing obligations of the Division for budgeting and debt service that are secured by the existing money in the General Reserve Trust.

     (Added to NAC by Housing Div., eff. 4-13-88; A 9-1-89; R140-01, 8-2-2002; R124-04, 10-4-2004, eff. 7-1-2009)

      NAC 319.584  Submission and approval of applications; fee; terms of assistance. (NRS 319.140)

     1.  To apply for a loan, grant, service or commitment for a loan, grant or service from the Division for a project, a completed application must be submitted to the Division.

     2.  Any application submitted by a sponsor organized for profit must be accompanied by a nonrefundable fee of $1,250.

     3.  The Division will approve or disapprove an application for a loan, grant, service or commitment for a loan, grant or service from the Division within 90 days after it receives the application. If the application is approved, the Division will award a commitment letter to the sponsor of the project.

     4.  The Division will determine the terms and conditions of each loan, grant, service or commitment for a loan, grant or service that it approves. Such terms and conditions must be consistent with accepted banking and risk analysis principles.

     (Added to NAC by Housing Div., eff. 4-13-88; A 9-1-89; R140-01, 8-2-2002; R124-04, 10-4-2004, eff. 7-1-2009)

      NAC 319.586  Determination of whether project will receive assistance. (NRS 319.140)  In determining whether a project will receive a loan, grant, service or commitment for a loan, grant or service from the Division, the Division will use the criteria set forth in NAC 319.710.

     (Added to NAC by Housing Div., eff. 4-13-88; A by R140-01, 8-2-2002; R124-04, 10-4-2004, eff. 7-1-2009)

      NAC 319.588  Loans: Purposes; methods of guaranteeing repayment. (NRS 319.140)

     1.  The Division may make a loan for:

     (a) The interim financing of the development, construction or rehabilitation of a project;

     (b) The permanent financing of a project; or

     (c) The interim and permanent financing of a project.

     2.  Except as otherwise provided in subsection 3, each loan must be:

     (a) Fully insured by a private source of mortgage insurance which is licensed to do business in this State or any other guarantee acceptable to the Division; and

     (b) Secured by a deed of trust on a project in this State.

     3.  The Division may accept a partial guarantee of not less than 10 percent of the face value of a loan, if:

     (a) The loan is to finance a project in a rural area of this State;

     (b) It determines that there is a shortage of available low-cost housing in the area;

     (c) It determines that there is a shortage of private lenders willing to finance projects in the area;

     (d) It is the beneficiary of a first deed of trust on the project; and

     (e) It is the assignee of rents on the project.

     (Added to NAC by Housing Div., eff. 4-13-88; A 9-1-89; 8-31-90; R140-01, 8-2-2002; R124-04, 10-4-2004, eff. 7-1-2009)

      NAC 319.590  Loans: Execution of documents; assignment or sale. (NRS 319.140)

     1.  Before the initial closing of a loan made pursuant to NAC 319.588, the sponsor must execute any documents which the Division deems necessary or appropriate to regulate the acquisition, development, construction or rehabilitation of the proposed project and the operations of the sponsor in order to carry out the duties and protect the interests of the Division.

     2.  A loan may not be assigned or sold without the prior written approval of the Division.

     3.  The sponsor shall pay to the Division a fee in an amount equal to 1 percent of the unpaid principal balance of the loan upon the execution of an agreement for the sale or assumption of the loan.

     (Added to NAC by Housing Div., eff. 4-13-88; A by R140-01, 8-2-2002)

      NAC 319.592  Required period of tenancy for certain persons. (NRS 319.140)  Each unit in any approved project must be made available to low-income tenants for a period of not less than 30 years.

     (Added to NAC by Housing Div., eff. 4-13-88; A by R140-01, 8-2-2002; R124-04, 10-4-2004, eff. 7-1-2009)

 

 

 

 

 

      NAC 319.594  Examination of sponsor’s books, accounts and records. (NRS 319.140)

     1.  All the sponsor’s books, accounts and records relating to the project must be available for inspection by representatives of the Division during normal business hours.

     2.  The Division may conduct such examinations of the books, accounts and records of the sponsor as it deems necessary or appropriate to determine compliance with the provisions of this section and may require the sponsor to pay the cost of the examination.

     (Added to NAC by Housing Div., eff. 4-13-88; A by R140-01, 8-2-2002; R124-04, 10-4-2004, eff. 7-1-2009)

LOANS FOR MULTIPLE-UNIT HOUSING AND SITES FOR MOBILE HOMES

      NAC 319.600  Definitions. (NRS 319.140)  As used in NAC 319.600 to 319.790, inclusive, unless the context otherwise requires, the words and terms defined in NAC 319.610 to 319.688, inclusive, have the meanings ascribed to them in those sections.

     (Supplied in codification; A by Housing Division, 10-26-83; R093-00, 11-20-2000)

      NAC 319.610  “Eligible tenant” defined. (NRS 319.140)  “Eligible tenant” means a family which is obligated to pay the rent for a dwelling unit and whose income does not exceed the level of maximum income established by the Division pursuant to NAC 319.790.

     [Housing Division, Loans for Multifamily Homes Reg. § 3 subsec. a, eff. 12-5-78; A and renumbered as § 2 subsec. 1, 7-23-80]

      NAC 319.620  “Family” defined. (NRS 319.140)  “Family” means a person or a group of persons consisting of the head of a household and any related persons in the household who are allowable as personal exemptions for federal income tax purposes.

     [Housing Division, Loans for Multifamily Homes Reg. § 3 subsec. b, eff. 12-5-78; A and renumbered as § 2 subsec. 2, 7-23-80]

      NAC 319.660  “Program” defined. (NRS 319.140)  “Program” means the Division’s program of financing projects.

     [Housing Division, Loans for Multifamily Homes Reg. § 3 subsec. f, eff. 12-5-78; A and renumbered as § 2 subsec. 4, 7-23-80]—(NAC A 12-16-82; R093-00, 11-20-2000)

      NAC 319.670  “Project” defined. (NRS 319.140)  “Project” means a housing facility for residential use which consists of two or more dwelling units for occupancy by eligible tenants on a rental basis. The term includes property to be leased, purchased or developed for sites for multifamily housing and upon which the Division takes a security interest and records a regulatory agreement, whether the Division issues bonds, a mortgage loan or a letter of credit for the lease, purchase or development of the multifamily housing.

     [Housing Division, Loans for Multifamily Homes Reg. § 2 subsec. 5, eff. 7-23-80]—(NAC A 12-16-82; R093-00, 11-20-2000)

      NAC 319.680  “Residential use” defined. (NRS 319.140)  “Residential use” means use of each unit in a project as the principal residence of the occupant and not as a recreational home or property for investment in a trade or business. Portions of any project designed or used for any purpose other than as a principal residence must not exceed 15 percent of the usable area of the project.

     [Housing Division, Loans for Multifamily Homes Reg. § 3 subsec. g, eff. 12-5-78; A and renumbered as § 2 subsec. 6, 7-23-80]—(NAC A 4-13-88)

      NAC 319.682  “Senior project” defined. (NRS 319.140)  “Senior project” means a project for housing for persons who are at least 55 years of age.

     (Added to NAC by Housing Div. by R093-00, eff. 11-20-2000)

      NAC 319.684  “Special needs project” defined. (NRS 319.140)  “Special needs project” means a project for housing for a particular demographic group with a special need for housing, as identified by the Division.

     (Added to NAC by Housing Div. by R093-00, eff. 11-20-2000)

      NAC 319.686  “Sponsor” defined. (NRS 319.140)  “Sponsor” means a person who is the primary entity responsible for the promotion of a project.

     (Added to NAC by Housing Div. by R093-00, eff. 11-20-2000)

      NAC 319.688  “Volume cap” defined. (NRS 319.140)  “Volume cap” has the meaning ascribed to it in 26 U.S.C. § 146(b) and (c).

     (Added to NAC by Housing Div. by R093-00, eff. 11-20-2000)

      NAC 319.690  Loans for projects. (NRS 319.140)

     1.  If appropriate, the Division shall issue bonds or a letter of credit, or make a mortgage loan for:

     (a) The interim financing of the development, construction or rehabilitation of a project;

     (b) The permanent financing of a project; or

     (c) Both interim and permanent financing of a project.

     2.  A bond issuance or mortgage loan pursuant to subsection 1 must be:

     (a) Fully or partially insured or guaranteed with a credit facility from a governmental agency other than the Division or by a private source of mortgage insurance, bond insurance, guarantee or other credit instrument that is acceptable to the Division; and

     (b) Secured by a deed of trust on a project in this State.

     3.  As a condition precedent to the initial closing of a bond issuance or mortgage loan pursuant to this section, the sponsor must execute any documents which the Administrator deems necessary or appropriate to regulate the acquisition, development, construction or rehabilitation of the proposed project and the operations of the sponsor, in order to protect the interest of the Division and to fulfill the Division’s duties.

     4.  A mortgage loan may only be assigned, transferred, conveyed or pledged by a sponsor or direct lending institution subject to terms and conditions which are approved in writing by the Division before the assignment, transfer, conveyance or pledge. Upon the execution of an agreement for the assumption of the mortgage loan, the sponsor shall pay to the Division a fee of up to 1 percent of the unpaid principal balance of the mortgage loan.

     5.  The obligation of the Division to finance a project is subject to the issuance of a letter of credit from the Division or sale of bonds or other obligations of the Division in an amount sufficient to permit financing.

     6.  Upon the issuance of a letter of conditional commitment and inducement and the acceptance by the sponsor of the terms and conditions of the letter, the sponsor shall submit to the Division, within 10 days after the letter is issued, a fee which is in an amount equal to the Division’s cost for issuing bonds, a mortgage loan or letter of credit and which is in accordance with the Internal Revenue Code of 1986, as amended.

     7.  If the sponsor notifies the Division in writing that it does not wish to proceed with the financing, the Division shall retain a portion of the fee to cover the costs incurred. The Division shall return the remainder of the fee to the sponsor within 10 days after the date the Division conclusively determines the total costs incurred.

     [Housing Division, Loans for Multifamily Homes Reg. § 4 subsecs. a, c, & I, eff. 12-5-78; A and renumbered as § 3, 7-23-80]—(NAC A 12-16-82; 10-26-83; 4-13-88; R093-00, 11-20-2000)

 

 

 

 

      NAC 319.700  Application for loan: Requirements; fee to be established. (NRS 319.140)

     1.  The Division shall publish application requirements in hard copy or on its website which must describe in detail the procedure for reviewing an application and any other requirements prescribed by the Division.

     2.  The Administrator, in consultation with the Advisory Committee on Housing, will establish a fee for applying for financing from the Division.

     [Housing Division, Loans for Multifamily Homes Reg. § 4 subsec. b & d-g, eff. 12-5-78; A and renumbered as § 4, 7-23-80]—(NAC A 4-13-88; R093-00, 11-20-2000)

      NAC 319.710  Selection of projects. (NRS 319.140)  The Division shall finance those projects which:

     1.  Receive approval from a local government that governs the area which includes the project and, if the project includes private activity bonds, receive a transfer from such local government an amount of volume cap deemed necessary by the Division;

     2.  Are financially feasible at the interest rate to be charged under the Division’s program and the rents which have been agreed upon but not at the prevailing market rate of interest with such rents for the units designated as set-aside units;

     3.  Will be rented at or below the rents charged for comparable housing which is affordable by tenants of low or moderate income;

     4.  Meet the needs identified by the Division and local government for increasing the supply or improving the quality of decent, safe and sanitary housing for eligible tenants;

     5.  Comply with the requirements of NAC 319.600 to 319.790, inclusive; and

     6.  Meet the underwriting criteria of the Division that is published and updated periodically by the Division.

     [Housing Division, Loans for Multifamily Homes Reg. § 5, eff. 7-23-80]—(NAC A 10-26-83; R093-00, 11-20-2000)

      NAC 319.711  Priorities for allocation of volume cap for projects. (NRS 319.140)

     1.  Except as otherwise provided in this section, when allocating volume cap, the Division shall give priority to senior projects and special needs projects if the Division determines that there is a need for such projects.

     2.  A local government may establish a priority for the allocation of volume cap for projects proposed by the local government. If a local government has established a priority for allocation and if the Division has determined that it has sufficient volume cap for projects to supplement volume cap on all projects submitted by a local government, the Division shall apply the priority of the local government to all projects proposed by the local government when allocating volume cap to the projects of the local government. If the Division has determined that it does not have sufficient volume cap to supplement volume cap on all projects submitted by a local government, the Division:

     (a) May give priority to senior projects or special needs projects; and

     (b) Shall not finance family projects proposed by the local government until the Division has sufficient volume cap to supplement volume cap for those projects.

     3.  As used in this section, “family project” means a project for housing that does not discriminate as to family size, age of head of household or dependents, or marital status of the residents.

     (Added to NAC by Housing Div. by R093-00, eff. 11-20-2000)

      NAC 319.7115  Prerequisites for project to receive volume cap from Division. (NRS 319.140)

     1.  For a project to receive volume cap from the Division:

     (a) The findings of the Administrator relating to the project must be approved by the State Board of Finance pursuant to chapter 319 of NRS; and

     (b) The project must have the support of a local government as described in subsection 2.

     2.  Except as otherwise provided in this subsection, the Division shall not provide financing to a project unless one or more local governments will provide a minimum of 50 percent of the total volume cap for the project. The Division may finance a project that has less than 50 percent of the total volume cap from a local government if the project is in a rural community.

     (Added to NAC by Housing Div. by R093-00, eff. 11-20-2000)

      NAC 319.712  Prerequisites for submission of project to State Board of Finance for approval. (NRS 319.140)  The Division shall not submit a project to the State Board of Finance for approval unless the Division determines that:

     1.  The project has binding commitments on either the mortgage or bonds, as required, from a credit enhancer who has a credit rating on his or her outstanding long-term debt of not less than “Aa2” by Moody’s Investors Service, Inc., or “AA” by Standard and Poor’s Ratings Services, or their successors, if any, and has been approved by the Division;

     2.  If tax-credit equity is to be part of the total financing, the project has binding commitments from the tax-credit equity investor; and

     3.  Sources of funding for the proposed project have all been identified and are adequate to fund the project to completion.

     (Added to NAC by Housing Div. by R093-00, eff. 11-20-2000; A by R124-04, 10-4-2004)

      NAC 319.7125  Prerequisites required of sponsor to receive financing. (NRS 319.140)  To receive financing from the Division for a project, the sponsor must:

     1.  Pay the application fee described in NAC 319.700;

     2.  Prove to the satisfaction of the Division that the project will comply with the provisions of NAC 319.600 to 319.790, inclusive; and

     3.  Submit the following documents, as applicable, to the Division:

     (a) A binding letter of commitment from a credit enhancer which is rated AA/Aa or AAA/Aaa and which covers the principal of and interest on the bonds through the earlier of:

          (1) The maturity of the proposed bond issue; or

          (2) A mandatory tender or redemption date;

     (b) If tax-credit equity is to be used as a source of funding for the project, a binding letter of commitment from the tax-credit syndicator verifying the amount and timing of money from the sale of tax credits less all associated fees;

     (c) A document describing:

          (1) The proposed final sources and uses of funds for the project, including, without limitation, net bond proceeds, tax-credit equity, grants and any subordinated debt; and

          (2) The proposed draw schedule for use of bond proceeds;

     (d) The partnership agreement or articles of incorporation of the sponsor;

     (e) The certificate of registration issued by the Secretary of State pursuant to NRS 86.545 or 88.580, as applicable, for the sponsor;

     (f) The articles of organization and any resolutions or operating agreements that establish the authority of a person to sign documents associated with the financing of the project;

     (g) A written contract to purchase or option to purchase the property on which the project is to be built, or a title report showing ownership of the property on which the project is to be built;

     (h) A title report for the site of the project that includes a list of all exceptions and a pro forma American Land Title Association policy to be issued to the lending organization;

     (i) A copy of the most recent Phase I Environmental Report, that is less than 12 months old, for the site of the project;

     (j) A copy of the most recent geotechnical report, that is less than 12 months old, for the site of the project;

     (k) A copy of a certified appraisal of the site of the project that is performed by an appraiser certified pursuant to chapter 645C of NRS or that is approved by the credit enhancer;

     (l) A copy of a certified “as-built” survey of the site of the project which is American Land Title Association qualified and which shows the project in its proper place on the site and all exceptions to title;

     (m) A copy of any development agreement with the owner of the proposed project;

     (n) A copy of any management agreement to be used for the proposed project;

     (o) A copy of any general contractor’s agreement between the sponsor and the proposed general contractor for the project;

     (p) A parcel map of the site of the project that is recorded with the county recorder;

     (q) If the site of the project is located on a flood zone as designated by the Federal Emergency Management Agency, a map that shows the bounds of the flood zone, the property on which the project is to be located and the project;

     (r) A copy of the zoning restrictions on the site of the project showing that the applicable zoning laws and regulations allow for the development of the project on the site;

     (s) An audit or report, completed by a specialist in the efficient use of energy who is approved by the Division, which details the components of the project which are necessary for the efficient use of energy and which must be installed and used in the construction or rehabilitation of the project; and

     (t) A physical assessment of the capital needs of any project that is more than 10 years old.

     (Added to NAC by Housing Div. by R093-00, eff. 11-20-2000; A by R124-04, 10-4-2004)

      NAC 319.713  Issuance of taxable and tax-exempt bonds; use of proceeds. (NRS 319.140)

     1.  For a project approved by the Division, the Division may issue a combination of taxable and tax-exempt bonds.

     2.  Except as otherwise provided in this subsection, the proceeds of bonds issued pursuant to subsection 1 must be used to construct or permanently finance projects in this State with loan amounts on a single project from $5,000,000 to $30,000,000. The Administrator may waive the minimum or maximum loan amounts.

     (Added to NAC by Housing Div. by R093-00, eff. 11-20-2000)

      NAC 319.7135  Percentage requirements of bonds. (NRS 319.140)

     1.  The Division may require that up to 25 percent of the bonds issued for a project be taxable bonds.

     2.  The Division may impose a percentage requirement for a mixed-use project that is partially a senior project or a special needs project which is less than the percentage requirement for other types of projects.

     3.  As used in this section, “mixed-use project” means a project for housing for more than one demographic group, as determined by the Division.

     (Added to NAC by Housing Div. by R093-00, eff. 11-20-2000)

      NAC 319.714  Payment of cost of issuance of bonds. (NRS 319.140)

     1.  Upon approval of a loan application by the Division, a sponsor must submit:

     (a) If the application is for a new project, a down payment of $75,000 toward the cost of issuance of the bonds for the project; or

     (b) If the application is for refinancing of an existing project, a deposit in an amount that is less than $75,000, as determined by the Division, toward the cost of issuance of the bonds for the project.

     2.  The balance of the cost of issuance of the bonds is due at closing.

     (Added to NAC by Housing Div. by R093-00, eff. 11-20-2000)

      NAC 319.7145  Review of contract for sale of land. (NRS 319.140)  When determining whether to approve a loan application, the Division shall review the contract for the sale of land on which the project is to be built. If the contract reveals a high percentage markup of the cost of the land without documented improvements that add value, the Division may disapprove the application or decrease the amount of financing that it will provide by the amount of the markup that is disapproved by the Division.

     (Added to NAC by Housing Div. by R093-00, eff. 11-20-2000)

      NAC 319.715  Credit enhancement. (NRS 319.140)

     1.  Each project must have adequate credit enhancement from a credit enhancer that is long-term rated AA/Aa, including variable rate transactions. The credit enhancement must:

     (a) Be in the form of a surety bond, Federal Housing Administration mortgage insurance, mortgage-backed security, credit facility, letter of credit or other credit instrument that is acceptable to the Division; and

     (b) Cover the principal of and interest on the bonds through the earlier of:

          (1) The maturity of the bonds; or

          (2) A mandatory tender or redemption date.

     2.  If, during the life of the bonds, the sponsor of a project does not renew the credit enhancement, upon the termination of the credit enhancement, the Division shall require a tendering of the bonds.

     (Added to NAC by Housing Div. by R093-00, eff. 11-20-2000)

      NAC 319.7155  Amortization. (NRS 319.140)  Except as otherwise provided in this section, following the construction or rehabilitation period, fixed rate and variable rate loans on a project must be fully amortizing with a maximum term of 30 years. A loan insured by the Federal Housing Administration may have a maximum term of more than 30 years.

     (Added to NAC by Housing Div. by R093-00, eff. 11-20-2000)

      NAC 319.716  Prepayment. (NRS 319.140)  All bond and loan documents for a project must contain provisions relating to prepayment and must provide for yield maintenance on issuer and trustee fees for at least the first 15 years.

     (Added to NAC by Housing Div. by R093-00, eff. 11-20-2000)

      NAC 319.7165  Nonrecourse loans. (NRS 319.140)  Permanent or nonconstruction loans on a project may be nonrecourse except for standard lender and issuer exceptions.

     (Added to NAC by Housing Div. by R093-00, eff. 11-20-2000)

      NAC 319.717  Conversion to nonrecourse financing. (NRS 319.140)  A project may not convert to nonrecourse financing until the project has been at least 90 percent occupied for 90 consecutive days.

     (Added to NAC by Housing Div. by R093-00, eff. 11-20-2000)

      NAC 319.7175  Property ownership; obligations unrelated to project. (NRS 319.140)  Each project must be owned by a natural person or a single entity that is formed for the sole purpose of developing the project. The sponsor shall not encumber the project to secure any obligation unrelated to the project and may not provide in any bond, mortgage or loan document that a default on any obligation unrelated to the project is a default with respect to the project.

     (Added to NAC by Housing Div. by R093-00, eff. 11-20-2000)

      NAC 319.718  Debt service coverage. (NRS 319.140)  The projected ratio for debt service coverage for each project must be a minimum of 115:100 on projects for new construction and 125:100 on projects for acquisition and rehabilitation of existing facilities, at:

     1.  The completion of the construction phase; and

     2.  After a reasonable rent-up period following completion of the project as determined by the Division.

     (Added to NAC by Housing Div. by R093-00, eff. 11-20-2000)

      NAC 319.7185  Escrow required of sponsor. (NRS 319.140)  Each sponsor shall maintain tax, insurance, and repair and replacement escrows for the duration of the loan.

     (Added to NAC by Housing Div. by R093-00, eff. 11-20-2000)

      NAC 319.719  Loan to value percentage. (NRS 319.140)  Each project that uses tax-credit equity must have a loan to value percentage of not more than 85 percent of the appraised value of the project, taking into account all debt. For projects not using tax-credit equity, the Division may allow a 95 percent loan to value percentage if the Division determines that such a percentage is appropriate under the circumstances.

     (Added to NAC by Housing Div. by R093-00, eff. 11-20-2000)

      NAC 319.7195  Subordinate financing. (NRS 319.140)  A project may receive subordinate financing that is not bond or tax-credit financed, for up to 98 percent of the appraised value of the project if the subordinate financing is serviced by not more than 75 percent of projected available cash flow.

     (Added to NAC by Housing Div. by R093-00, eff. 11-20-2000)

      NAC 319.721  Regulatory agreement. (NRS 319.140)  The sponsor of a project must enter a regulatory agreement with the Division. The Division shall file each regulatory agreement with the county recorder. A project must comply at all times with the regulatory agreement.

     (Added to NAC by Housing Div. by R093-00, eff. 11-20-2000)

      NAC 319.7215  Display of sign concerning financing of project. (NRS 319.140)  During construction and rent-up, a developer shall permit the Division to display a sign on the site of the project that states in effect that the project is financed by the Division.

     (Added to NAC by Housing Div. by R093-00, eff. 11-20-2000)

      NAC 319.722  Profit and overhead for developer; maximum interest rate on deferred note. (NRS 319.140)

      1.  The maximum amount of pro forma profit and overhead for a developer on a project is 15 percent of the appraised value of the project. The profit must be paid as follows:

     (a) Ten percent paid on the basis of percentage of completion of the improvements;

     (b) Ten percent paid on the date the construction loan converts to a permanent loan; and

     (c) Eighty percent paid from cash flows after payment of debt service for senior projects and funded repair and replacement reserves.

     2.  The maximum interest rate on a deferred note is limited to the amount needed to maintain the present value of the amount of the developer’s fee that remains unpaid.

     (Added to NAC by Housing Div. by R093-00, eff. 11-20-2000)

      NAC 319.7225  Profit and overhead for contractor. (NRS 319.140)  The maximum amount of profit and overhead for a contractor on a project is limited to 14 percent of profits on improvements. Such profit and overhead must be paid on the basis of percentage of completion.

     (Added to NAC by Housing Div. by R093-00, eff. 11-20-2000)

      NAC 319.723  Assumption of loan. (NRS 319.140)  A loan from the Division is assumable if:

     1.  A loan balance assumption fee of up to 1 percent of the loan balance, as determined by the Division, is paid to the Division;

     2.  A processing fee, as established by the Division, is paid to the Division; and

     3.  The Division approves of the assumption.

     (Added to NAC by Housing Div. by R093-00, eff. 11-20-2000)

 

 

 

      NAC 319.725  Federally insured, guaranteed or subsidized loan required if project sponsored by certain partnerships. (NRS 319.140)  If a project is sponsored by a partnership which:

     1.  Has more than 10 partners; or

     2.  Is a limited partnership,

Ê the project must be financed by a mortgage loan which is insured, guaranteed or subsidized by the United States or a governmental agency or instrumentality thereof.

     (Added to NAC by Housing Division, eff. 10-26-83; A by R140-01, 8-2-2002)

      NAC 319.730  Obligation of sponsor. (NRS 319.140)  Every project must be designed, developed and operated in a manner consistent with all federal and state laws and regulations governing the tax-exempt status of the Division’s obligations, including, but not limited to:

     1.  The maximum percentage of floor space, loan proceeds, development costs or project revenues which may be attributed to other than residential uses;

     2.  The marketing plan employed by the sponsor;

     3.  The percentage of living units occupied by tenants of very low, low and moderate income who receive assistance in paying rent and who are self-sufficient; and

     4.  The maximum amount of bond proceeds which may be paid to any sponsor.

     [Housing Division, Loans for Multifamily Homes Reg. § 6, eff. 7-23-80]

      NAC 319.740  Interest rate. (NRS 319.140)  The Administrator will establish the interest rate charged to the sponsor for a loan for a project and, if appropriate as a result of any refinancing of the money with which the loan was made, adjust the interest rate from time to time.

     [Housing Division, Loans for Multifamily Homes Reg. § 4 subsec. h, eff. 12-5-78]—(NAC A 12-16-82)

      NAC 319.750  Yield on loans. (NRS 319.140)

     1.  Mortgage loans sold to the Division must bear interest at rates and be sold to the Division at prices which in the aggregate produce a yield to the Division sufficient to:

     (a) Pay interest on the principal of the related issue of the Division’s bonds or other obligations;

     (b) Provide adequate reserves for the holders of the Division’s bonds or other obligations whenever necessary;

     (c) Cover the operating costs of the Division; and

     (d) Meet or exceed the minimum yield required by the general certificate or trust indenture governing the series of bonds.

     2.  The yield on the mortgage loans must not exceed the maximum permitted by application of 26 U.S.C. §§ 141 to 149, inclusive, and applicable regulations of the United States Treasury Department.

     [Housing Division, Loans for Multifamily Homes Reg. § 11, eff. 7-23-80]—(NAC A 4-13-88)

      NAC 319.760  Persons prohibited from purchasing obligations of Division. (NRS 319.140)  A person or any “related person” as defined in 26 U.S.C. § 147 from whom the Division acquires obligations under this program shall not purchase obligations of the Division in an amount related to the amount of obligations which the Division has acquired from him or her.

     [Housing Division, Loans for Multifamily Homes Reg. § 7, eff. 12-5-78; A and renumbered as § 10, 7-23-80]—(NAC A 4-13-88)

 

 

      NAC 319.770  Inspections to determine compliance. (NRS 319.140)  All the sponsor’s real and personal property pertaining to the project, including all books, accounts and records pertaining thereto, must be available for inspection by representatives of the Division during the regular business hours. The Division may conduct such inspections as it deems necessary or appropriate to determine compliance with the requirements of the Division and local, state and federal law. The sponsor shall pay the cost of such an inspection to the Division.

     [Housing Division, Loans for Multifamily Homes Reg. § 6, eff. 12-5-78; A and renumbered as § 9, 7-23-80]—(NAC A by R093-00, 11-20-2000)

      NAC 319.780  Consent to jurisdiction of district courts. (NRS 319.140)  Each agreement for a commitment of purchase must require the lending institution to consent to the jurisdiction of the district courts of this State in any proceeding to enforce compliance with the terms of chapter 319 of NRS, NAC 319.600 to 319.790, inclusive, the commitment agreement and the servicing agreement.

     [Housing Division, Loans for Multifamily Homes Reg. § 12, eff. 7-23-80]

      NAC 319.790  Eligibility of tenant. (NRS 319.140)

     1.  The Division will determine the maximum levels of income and other requirements for eligible tenants after considering:

     (a) The median income of residents of each county in the State;

     (b) The requirements and standards, including maximum levels of income, of applicable federal and state statutes and regulations;

     (c) The size of the tenant’s family; and

     (d) Any other factor which it deems relevant.

     2.  A family’s financial eligibility is determined by the family’s verified gross income, including:

     (a) Salary or wages;

     (b) Income from overtime;

     (c) Tips;

     (d) Income from part-time employment;

     (e) Bonuses;

     (f) Dividends;

     (g) Interest;

     (h) Royalties;

     (i) Pensions;

     (j) Compensation received from the Veterans’ Administration;

     (k) Net rental income;

     (l) Alimony;

     (m) Payments for child support;

     (n) Public assistance;

     (o) Compensation for disability;

     (p) Payments received from social security;

     (q) Compensation for unemployment;

     (r) Military allowances;

     (s) Income received from business activities or investments; and

     (t) Income received from trusts.

     [Housing Division, Loans for Multifamily Homes Reg. § 8, eff. 7-23-80]—(NAC A 4-13-88)

 

 

LOANS FOR CONSERVATION OF ENERGY

      NAC 319.800  Definitions. (NRS 319.140, 319.235)  As used in NAC 319.800 to 319.842, inclusive, unless the context otherwise requires, the words and terms defined in NAC 319.802 to 319.810, inclusive, have the meanings ascribed to them in those sections.

     (Added to NAC by Housing Division, eff. 12-16-82)

      NAC 319.802  “Eligible borrower” defined. (NRS 319.140, 319.235)  “Eligible borrower” means:

     1.  In the case of a loan to conserve energy to be used to improve a single-family home, an eligible family as defined in NRS 319.060.

     2.  In the case of a loan to conserve energy to be used to improve multiple-unit housing, the owner of the multiple-unit housing which is occupied by eligible families.

     (Added to NAC by Housing Div., eff. 12-16-82; A 4-13-88)

      NAC 319.804  “Loan to conserve energy” defined. (NRS 319.140, 319.235)  “Loan to conserve energy” means a loan made by the Division to finance the purchase and installation of equipment and materials to be used in residential dwelling units for the conservation of energy or for the use of energy from sources other than fossil fuels, and any related improvements.

     (Added to NAC by Housing Division, eff. 12-16-82)

      NAC 319.806  “Multiple-unit housing” defined. (NRS 319.140, 319.235)  “Multiple-unit housing” means housing designed for residential use which consists of two or more dwelling units for occupancy on a rental basis.

     (Added to NAC by Housing Div., eff. 12-16-82; A 4-13-88)

      NAC 319.808  “Program” defined. (NRS 319.140, 319.235)  “Program” means the Division’s program for the purchase of notes evidencing loans to conserve energy and the accompanying security for the loans.

     (Added to NAC by Housing Division, eff. 12-16-82)

      NAC 319.810  “Residential use” defined. (NRS 319.140, 319.235)

     1.  “Residential use” means:

     (a) In the case of a single-family home, the use of a structure as the principal residence of an eligible borrower; and

     (b) In the case of multiple-unit housing, the use of each dwelling unit as the principal residence of the occupant.

     2.  The term does not include the use of a structure as a recreational home or property for investment in a trade or business. Any portion of the structure designed or used for any purpose other than as a principal residence must not exceed 15 percent of the usable area of the structure.

     (Added to NAC by Housing Div., eff. 12-16-82; A 4-13-88)

      NAC 319.812  Purpose. (NRS 319.140, 319.235)  NAC 319.800 to 319.842, inclusive, are adopted to:

     1.  Effectuate the general purposes of chapter 319 of NRS and the specific purposes of NRS 319.235;

     2.  Expand the supply of money in the State which is available for loans to conserve energy; and

     3.  Encourage participation by lending institutions in the program and restrict the financial return and benefit to the lending institutions to that which is necessary and reasonable to induce their participation.

     (Added to NAC by Housing Division, eff. 12-16-82)

      NAC 319.814  Invitation for lending institutions to apply to sell loans. (NRS 319.140, 319.235)

     1.  The Administrator will from time to time mail invitations to lending institutions so that they may apply to sell loans to conserve energy to the Division.

     2.  The Administrator will mail the invitations with applications and other necessary documents to each lending institution at least 14 days before the applications must be submitted to the Division.

     3.  The invitations will include the following information:

     (a) The date by which the application must be submitted to the Division;

     (b) The date by which the Administrator will accept or reject the application; and

     (c) The fee which must accompany the application.

     (Added to NAC by Housing Division, eff. 12-16-82)

      NAC 319.816  Acceptance of application to sell loans. (NRS 319.140, 319.235)

     1.  The Administrator will specify in each notice of acceptance the aggregate balance of the principal of the loans which the Division agrees to purchase from a lending institution.

     2.  If the Administrator accepts an application, the lending institution must sell loans to the Division in accordance with the terms of the application and the agreement with the Division to originate loans.

     (Added to NAC by Housing Division, eff. 12-16-82)

      NAC 319.818  Obligation of Division to purchase loan. (NRS 319.140, 319.235)  Unless a loan to conserve energy is to be financed by a source other than the proceeds from the sale of bonds, the obligation of the Division to purchase the loan is subject to the issuance and sale of bonds or other obligations of the Division:

     1.  Within the period prescribed by the application;

     2.  In an amount sufficient to permit the purchase; and

     3.  Under terms and conditions which are acceptable to the Division.

     (Added to NAC by Housing Division, eff. 12-16-82)

      NAC 319.820  Contents of notice of acceptance. (NRS 319.140, 319.235)

     1.  The Administrator will designate in each notice of acceptance what percentage of loans to conserve energy which are sold to the Division must be for:

     (a) Systems for conserving energy;

     (b) Passive systems; and

     (c) Active systems.

     2.  For the purposes of this section:

     (a) “Active systems” include those methods of heating or cooling air or water that utilize solar radiation, geothermal energy or other alternatives to fossil fuel by means of mechanical equipment.

     (b) “Passive systems” include those methods of heating or cooling air or water that utilize solar radiation, geothermal energy or other alternatives to fossil fuel by natural means such as radiation, convection or conduction.

     (c) Systems which use natural and mechanical methods for heating or cooling air or water, otherwise known as hybrid systems, shall be considered passive systems.

     (Added to NAC by Housing Division, eff. 12-16-82)

      NAC 319.822  Requirements for loan. (NRS 319.140, 319.235)  Each loan to conserve energy which the Division purchases under the program must:

     1.  Be insured by the Federal Housing Administration or by private insurance which guarantees the mortgage or must be guaranteed by the Veterans’ Administration; and

     2.  Provide, to the extent allowed by any federal or state law or regulation, that:

 

 

     (a) The loan may be assumed only by an eligible borrower; and

     (b) If the borrower rents the dwelling unit to another person without the consent of the Administrator or otherwise fails to occupy the unit as his or her principal residence, the Administrator will:

          (1) Accelerate the rate of interest to the prevailing rate at the time the loan was made; or

          (2) Accelerate to maturity the balance of the payments on the loan.

     (Added to NAC by Housing Division, eff. 12-16-82)

      NAC 319.824  Requirements for loan for mobile home. (NRS 319.140, 319.235)  The Administrator will not purchase a loan to conserve energy to be used to make an addition to or modify a mobile home unless the mobile home meets the requirements of NAC 319.300 to 319.489, inclusive, for a loan for the purchase of the mobile home.

     (Added to NAC by Housing Division, eff. 12-16-82; A by R166-99, 6-15-2000)

      NAC 319.826  Loans to finance certain improvements. (NRS 319.140, 319.235)

     1.  The Division will purchase loans to conserve energy to finance the improvements listed in NAC 319.830 without requiring a study of the energy used by the structure to be improved, unless the Administrator determines that such a study is necessary.

     2.  The Division will purchase loans to conserve energy to finance improvements which are listed in NAC 319.832 only after conducting a study of the energy used by the structure to be improved, unless the Administrator determines that such a study is not necessary.

     (Added to NAC by Housing Division, eff. 12-16-82)

      NAC 319.828  Expected life of equipment and materials purchased with proceeds of loan. (NRS 319.140, 319.235)  Equipment and materials purchased with the major portion of the proceeds of a loan to conserve energy must have an expected life which is at least equal to the term of the loan.

     (Added to NAC by Housing Division, eff. 12-16-82)

      NAC 319.830  Equipment and materials that need not be approved before loan is made. (NRS 319.140, 319.235)  The following equipment and materials need not be approved by the Division or the Department of Energy before a lending institution makes a loan to conserve energy to be purchased by the Division:

     1.  Insulation for an attic or ceiling up to a value of thermal resistance of 48 (R48);

     2.  Insulation for a wall up to a value of thermal resistance of 33 (R33);

     3.  Insulation for a floor up to a value of thermal resistance of 33 (R33);

     4.  Insulation for a pipe or duct;

     5.  Insulation or a jacket for a water heater;

     6.  Insulation for the perimeter of a foundational wall or slab up to a value of thermal resistance of 33 (R33);

     7.  Insulating skirting for a mobile home which qualifies for financing pursuant to NAC 319.469 up to a value of thermal resistance of 33 (R33);

     8.  Storm or thermal windows up to a value of thermal resistance of 3 (R3);

     9.  Storm or thermal doors;

     10.  Evaporative coolers permanently affixed to improvements to real property;

     11.  The replacement of a burner for a furnace with a unit which uses energy more efficiently;

     12.  A device for igniting a furnace which uses energy more efficiently than an existing unit;

     13.  The modification of the opening in a flue;

     14.  Thermostats with automatic setbacks;

     15.  Caulking and weather stripping of windows, doors and other exterior openings;

 

 

     16.  A device for igniting a water heater which uses energy more efficiently than an existing unit; and

     17.  Devices which restrict the flow of hot water.

     (Added to NAC by Housing Division, eff. 12-16-82)

      NAC 319.832  Equipment and materials that must be approved before loan is purchased; prohibition against certain use of proceeds of loan. (NRS 319.140, 319.235)

     1.  All other equipment and materials, including, but not limited to:

     (a) Window film;

     (b) The replacement of a furnace or water heater with a unit that uses energy more efficiently;

     (c) Active or passive systems for the solar heating of water for domestic use;

     (d) Active or passive systems for heating or cooling air;

     (e) Systems for wind, geothermal and hydroelectric energy and their components;

     (f) Heat pumps;

     (g) Greenhouses attached to dwelling units;

     (h) Trombe, drum or water walls which do not bear a load;

     (i) Clerestories;

     (j) Overhangs; and

     (k) Skylights,

Ê must be approved by the Division and the Department of Energy before the lending institution makes a loan to conserve energy to be purchased by the Division.

     2.  The proceeds of a loan to conserve energy may not be used to finance vegetation.

     (Added to NAC by Housing Division, eff. 12-16-82)

      NAC 319.834  Yield on loans. (NRS 319.140, 319.235)

     1.  Loans to conserve energy sold to the Division must bear interest at rates and be sold to the Division at prices which, in the aggregate, produce a yield to the Division which is sufficient to:

     (a) Pay interest on the principal of the related issue of the Division’s bonds or other obligations;

     (b) Provide adequate reserves for the holders of the Division’s bonds or other obligations whenever the reserves are necessary;

     (c) Cover the costs of the Division for operating the program; and

     (d) Meet or exceed the minimum yield required by the general certificate or trust indenture governing the series of bonds.

     2.  The yield on a loan to conserve energy must not exceed the maximum yield permitted by 26 U.S.C. §§ 141 to 149, inclusive, and applicable regulations of the United States Treasury Department.

     (Added to NAC by Housing Div., eff. 12-16-82; A 4-13-88)

      NAC 319.836  Examination of books and records of originator or servicer of loan. (NRS 319.140, 319.235)  The Administrator will conduct such examinations of the books and records of each originator or servicer of a loan to conserve energy as the Administrator deems necessary or appropriate to determine compliance with the provisions of chapter 319 of NRS, NAC 319.800 to 319.842, inclusive, the agreement to purchase the loan and the servicing agreement.

     (Added to NAC by Housing Division, eff. 12-16-82)

      NAC 319.838  Consent to jurisdiction of district courts. (NRS 319.140, 319.235)  Each agreement to purchase or service a loan to conserve energy must require the originator or servicer to consent to the jurisdiction of the district courts of this State in any proceeding to enforce compliance with the provisions of chapter 319 of NRS, NAC 319.800 to 319.842, inclusive, the agreement to originate the loan and the servicing agreement.

     (Added to NAC by Housing Division, eff. 12-16-82)

      NAC 319.840  Service of loans purchased by Division. (NRS 319.140, 319.235)  All loans to conserve energy purchased by the Division must be serviced by a servicer approved by the Division pursuant to a servicing agreement. The Administrator will notify all servicers of the requirements of NAC 319.800 to 319.842, inclusive, in the servicing agreement.

     (Added to NAC by Housing Division, eff. 12-16-82)

      NAC 319.842  Persons prohibited from purchasing obligations of Division. (NRS 319.140, 319.235)  A person from whom the Division acquires obligations under the program or any “related person” as defined in 26 U.S.C. § 147 shall not purchase obligations of the Division in an amount related to the amount of obligations which the Division has acquired from him or her.

     (Added to NAC by Housing Div., eff. 12-16-82; A 4-13-88)

ACQUISITION AND SALE OF LAND

      NAC 319.850  Definitions. (NRS 319.140, 319.175, 319.190)  As used in NAC 319.850 to 319.872, inclusive, unless the context otherwise requires:

     1.  “Eligible housing” means structures for residential use by eligible families as defined in NRS 319.060 and for use by persons with special needs.

     2.  “Residential use” means the use of a structure as the principal residence of the occupant and not as a recreational home or property for investment in a trade or business. Any portion of the structure designed or used for any purpose other than as a principal residence must not exceed 15 percent of the usable area of the structure.

     3.  “Sponsor” means a person or entity which develops eligible housing, including, without limitation, a nonprofit organization that is exempt from taxation pursuant to 26 U.S.C. § 501(c)(3) and a development corporation that provides affordable or specialty housing in this State.

     (Added to NAC by Housing Div., eff. 12-16-82; A 4-13-88; R140-01, 8-2-2002)

      NAC 319.852  Purpose. (NRS 319.140, 319.175, 319.190)  NAC 319.850 to 319.872, inclusive, are adopted to effectuate the general purposes of chapter 319 of NRS and the specific purposes of NRS 319.175 and 319.190.

     (Added to NAC by Housing Division, eff. 12-16-82; A by R140-01, 8-2-2002; R124-04, 10-4-2004, eff. 7-1-2009)

      NAC 319.854  Acquisition of land. (NRS 319.140, 319.175, 319.190)

     1.  Before the Division acquires land, the Administrator will invite sponsors to apply to purchase the land from the Division for the development of eligible housing.

     2.  An applicant must submit to the Division:

     (a) A fee of $300.

     (b) A description of the proposed housing which includes, without limitation, the number and type of dwelling units, the proposed selling or rental prices, and the amenities, equipment and utilities to be included.

     (c) The applicable zoning laws and the manner in which the sponsor proposes to comply with those laws.

     (d) The estimated cost of the development, including, without limitation, estimates of:

          (1) The cost of construction;

          (2) Architectural, legal and other fees;

          (3) Financing and carrying charges;

          (4) The cost of the land; and

          (5) The sponsor’s profit.

 

     (e) The identity of the sponsor, builder, architect and managing agent and a detailed description of their respective qualifications and their prior participation and experience in developing and operating eligible housing. If any of them is not a natural person, the applicant must submit the names of all shareholders, investors, officers and other persons having an interest in the entity.

     (f) A report of the study which was conducted to determine the feasibility of the project.

     (g) A plot of the site, including its dimensions, unusual contours or features on the surface and the proposed locations for housing units and improvements.

     (h) Plans of the interior and basic elevational plans of the housing units containing a description of the basic materials for finishing the exterior of the building, including the siding, roof and trim.

     (Added to NAC by Housing Division, eff. 12-16-82; A by R140-01, 8-2-2002; R124-04, 10-4-2004, eff. 7-1-2009)

      NAC 319.856  Financing for eligible housing. (NRS 319.140, 319.175, 319.190)

     1.  A sponsor may not condition an application to purchase land upon receiving financing for eligible housing from the Division.

     2.  The sponsor may apply for financing from the Division under a separate program and, if approved, use such financing in the calculations required by paragraph (d) of subsection 2 of NAC 319.854. The invitation of the Division to submit a proposal does not imply that the Division will finance eligible housing under any other program.

     (Added to NAC by Housing Division, eff. 12-16-82; A by R140-01, 8-2-2002; R124-04, 10-4-2004, eff. 7-1-2009)

      NAC 319.858  Acceptance of applications. (NRS 319.140, 319.175, 319.190)  The Administrator will accept applications which contain proposals to develop housing that is within the limitations of the selling or rental prices established by the Division and which will be affordable to eligible families.

     (Added to NAC by Housing Division, eff. 12-16-82; A by R140-01, 8-2-2002)

      NAC 319.860  Determination of sales price of land; acquisition of land. (NRS 319.140, 319.175, 319.190)

     1.  The Administrator will not include in his or her determination of the sales price of land any expenses which are incurred by the Division in acquiring and conveying land and which are covered by application fees.

     2.  The Division will only acquire land for which it has accepted a sponsor’s application.

     3.  If the Division is unsuccessful in acquiring a particular parcel, the Administrator will return all application fees which have been submitted for the purchase of that parcel.

     (Added to NAC by Housing Division, eff. 12-16-82; A by R140-01, 8-2-2002; R124-04, 10-4-2004, eff. 7-1-2009)

      NAC 319.862  Sale of land to sponsor. (NRS 319.140, 319.175, 319.190)  The Division will sell land to the sponsor who proposes the lowest price for the rental or sale of housing which is comparable to the prices proposed by other sponsors.

     (Added to NAC by Housing Division, eff. 12-16-82; A by R140-01, 8-2-2002; R124-04, 10-4-2004, eff. 7-1-2009)

      NAC 319.864  Conditions for sale of land to sponsor. (NRS 319.140, 319.175, 319.190)

     1.  The Division will not sell land to a sponsor unless the sponsor:

     (a) Executes and delivers to the Division an agreement to:

          (1) Begin construction on or before a date set by mutual agreement between the Division and the sponsor; and

          (2) Reconvey the land to the Division at a price which does not exceed the sales price of the land charged by the Division to the sponsor if construction is not begun or completed as scheduled or within a reasonable time after it is scheduled to begin or to be completed.

     (b) Arranges to pay for the land in full.

     (c) Supplies a complete set of building plans to the Division.

     2.  The sale of land by the Division is subject to any conditions imposed by the governmental agency that sold the land to the Division.

     3.  The sponsor must covenant in the contract of sale that the sponsor and his or her successors and assigns will:

     (a) Develop eligible housing on the land; and

     (b) Use their best efforts to:

          (1) Rent the housing to families with low or moderate incomes;

          (2) Sell the housing to families with low or moderate incomes; or

          (3) Rent the housing to persons with special needs.

     (Added to NAC by Housing Div., eff. 12-16-82; A 4-13-88; R140-01, 8-2-2002; R124-04, 10-4-2004, eff. 7-1-2009)

      NAC 319.866  Establishment of standards to determine prices, income and other requirements for eligible families or persons with special needs. (NRS 319.140, 319.175, 319.190)  The Administrator will establish standards to determine the selling and rental prices of eligible housing and the maximum levels of income and other requirements for eligible families or persons with special needs in accordance with the criteria established in the programs administered by the Division pursuant to NAC 319.300 to 319.489, inclusive, and loans for projects made pursuant to NAC 319.600 to 319.790, inclusive.

     (Added to NAC by Housing Division, eff. 12-16-82; A by R166-99, 6-15-2000; R140-01, 8-2-2002)

      NAC 319.868  Examination of books and records of sponsor. (NRS 319.140, 319.175, 319.190)  The Administrator will conduct such examination of the books and records of each sponsor who has acquired land from the Division as the Administrator deems necessary or appropriate to determine compliance with the provisions of chapter 319 of NRS, NAC 319.850 to 319.872, inclusive, and any agreement between the Division and the sponsor.

     (Added to NAC by Housing Division, eff. 12-16-82; A by R140-01, 8-2-2002)

      NAC 319.870  Consent to jurisdiction of district courts. (NRS 319.140, 319.175, 319.190)  Each contract for the sale of land must require the sponsor to consent to the jurisdiction of the district courts of this State in any proceeding to enforce compliance with the provisions of chapter 319 of NRS, NAC 319.850 to 319.872, inclusive, and any agreements between the Division and the sponsor.

     (Added to NAC by Housing Division, eff. 12-16-82; A by R140-01, 8-2-2002)

      NAC 319.872  Persons prohibited from purchasing obligations of Division. (NRS 319.140, 319.175, 319.190)  A sponsor or any “related person” as defined in 26 U.S.C. § 147 shall not purchase obligations of the Division in an amount related to the aggregate amount of the principal of the obligations which the Division has acquired from the sponsor.

     (Added to NAC by Housing Div., eff. 12-16-82; A 4-13-88; R140-01, 8-2-2002)

ACCOUNT FOR LOW-INCOME HOUSING

      NAC 319.885  Definitions. (NRS 319.140, 319.520)  As used in NAC 319.885 to 319.950, inclusive, unless the context otherwise requires, the words and terms defined in NAC 319.8855 to 319.899, inclusive, have the meanings ascribed to them in those sections.

     (Added to NAC by Housing Div., eff. 6-20-90; A by R001-02, 6-28-2002)

      NAC 319.8855  “Account” defined. (NRS 319.140, 319.520)  “Account” means the Account for Low-Income Housing established by NRS 319.500.

     (Added to NAC by Housing Div., eff. 6-20-90)—(Substituted in revision for NAC 319.889)

      NAC 319.887  “Eligible family” defined. (NRS 319.140, 319.520)  “Eligible family” means a family of one or more persons whose income is not more than 60 percent of the median income for a family of that size residing in the same county. The median income will be based on statistics from the United States Department of Housing and Urban Development.

     (Added to NAC by Housing Div., eff. 6-20-90)

      NAC 319.893  “Housing authority” defined. (NRS 319.140, 319.520)  “Housing authority” means a housing authority created pursuant to chapter 315 of NRS.

     (Added to NAC by Housing Div., eff. 6-20-90)

      NAC 319.895  “Local government” defined. (NRS 319.140, 319.520)  “Local government” means any county or incorporated city in the State, including Carson City.

     (Added to NAC by Housing Div., eff. 6-20-90)

      NAC 319.897  “Local share” defined. (NRS 319.140, 319.520)  “Local share” means the percentage of money in the Account that is available to any participating jurisdiction in this State. The percentage of money is calculated annually by dividing the most recent state estimate of the population of a participating jurisdiction by the most recent state estimate of the population of the entire State. As used in this section, “state estimate of the population” means the estimate of the population of this State and its political subdivisions determined by the demographer employed pursuant to NRS 360.283.

     (Added to NAC by Housing Div., eff. 6-20-90; A by R001-02, 6-28-2002)

      NAC 319.8985  “Participating jurisdiction” defined. (NRS 319.140, 319.520)  “Participating jurisdiction” means any county, city or town in this State that receives federal money appropriated pursuant to 42 U.S.C. §§ 12701 et seq.

     (Added to NAC by Housing Div. by R001-02, eff. 6-28-2002)

      NAC 319.899  “Project” defined. (NRS 319.140, 319.520)  “Project” means an activity for which an applicant seeks money from the Account.

     (Added to NAC by Housing Div., eff. 6-20-90; A by R001-02, 6-28-2002)

      NAC 319.906  Entities eligible to apply for money. (NRS 319.140, 319.520)

     1.  The following entities may apply for money from the Account:

     (a) A public or private nonprofit charitable organization that is registered and in good standing with the Secretary of State;

     (b) A housing authority; or

     (c) A local government.

     2.  As used in this section, “private nonprofit charitable organization” means a nonprofit organization formed for educational or charitable purposes pursuant to the law of this State.

     (Added to NAC by Housing Div., eff. 6-20-90)

      NAC 319.908  Eligibility of entity in limited partnership with for-profit organization. (NRS 319.140, 319.520)  An entity that applies for money from the Account is not ineligible to receive money from the Account solely because it has been in a limited partnership or plans to form a limited partnership with a for-profit organization for the purpose of financing or operating a project.

     (Added to NAC by Housing Div., eff. 6-20-90)

      NAC 319.910  Allocation and administration of money by Division. (NRS 319.140, 319.520)

     1.  Except as otherwise provided in this section, in each round of funding, the total amount of money available for distribution will be allocated according to the local share available to each participating jurisdiction.

     2.  A participating jurisdiction shall determine whether to accept or reject the local share available to the participating jurisdiction. If the participating jurisdiction rejects the local share, the Division will administer the local share for that participating jurisdiction and consider any proposal for a project in that participating jurisdiction.

     3.  The Division will set aside 10 percent of the money allocated to the Account each year to accept any proposal for a project located in any participating jurisdiction that it deems appropriate. A proposal for a project may be submitted to the Division throughout the year.

     4.  In addition to the money from the Account that will be set aside pursuant to subsection 3, the Administrator may set aside money from the Account to:

     (a) If the proposal for a project is an eligible project pursuant to NRS 319.510 and all local participating jurisdictions agree, ensure that money in the Account will be available to match federal money offered for such a proposal for a project that requires the State to match such federal money as a condition of receiving the federal money; and

     (b) Provide for certain proposals for projects, not to exceed $750,000 per year without the approval from all participating jurisdictions to set aside an amount exceeding $750,000 per year, that the Administrator deems appropriate to carry out the provisions of this chapter.

     (Added to NAC by Housing Div., eff. 6-20-90; A by R001-02, 6-28-2002)

      NAC 319.912  Balance required before distribution; notice of solicitation of proposals; deadline for submission of proposals. (NRS 319.140, 319.520)

     1.  Money will not be allocated from the Account until there is $1,500,000 available for distribution in the Account.

     2.  Upon the initial accumulation of $1,000,000 in the Account, the Division will give public notice of a solicitation of each proposal for a project. The notice will specify:

     (a) The amount of money available for distribution in that round of funding, including the amount of each local share;

     (b) Where and in what form a proposal must be submitted;

     (c) The deadline for the submission of a proposal to the Division;

     (d) The amount of the application fee, if any, that must be submitted with the proposal;

     (e) The criteria used by the Division to evaluate a proposal; and

     (f) The expected schedule for the Division’s review and approval or denial of a proposal.

     3.  The deadline for the submission of a proposal to the Division will be at least 90 days after the date of the public notice.

     (Added to NAC by Housing Div., eff. 6-20-90; A by R001-02, 6-28-2002)

      NAC 319.914  Solicitation of proposals and notification of money available following initial round of funding. (NRS 319.140, 319.520)  After the initial round of funding, the Division will give public notice of a solicitation of each proposal for a project and notify each participating jurisdiction of the money available to the participating jurisdiction if:

     1.  The amount of money in the Account is $1,000,000 or more; and

     2.  The Division determines that the amount of money in the Account is sufficient to fund projects in each participating jurisdiction.

     (Added to NAC by Housing Div., eff. 6-20-90; A by R001-02, 6-28-2002)

 

 

 

 

      NAC 319.916  Submission of proposals between rounds of funding. (NRS 319.140, 319.520)  Upon good cause as determined by the Division, an applicant may submit a proposal for a project to the Division between rounds of funding. The Division will evaluate such a proposal in accordance with its standard criteria for review. If the proposal is awarded money from the Account, the money will be allocated from the 10 percent of the money in the Account set aside each year by the Division pursuant to subsection 3 of NAC 319.910.

     (Added to NAC by Housing Div., eff. 6-20-90; A by R001-02, 6-28-2002)

      NAC 319.918  Proposals for projects not sought through local participating jurisdiction. (NRS 319.140, 319.520)  A proposal for a project that is not sought through a local participating jurisdiction must:

     1.  Be sponsored by the local government within whose jurisdiction the project will be located, as demonstrated by a letter of support or resolution or such other evidence acceptable to the Division;

     2.  If it is a proposal for construction or rehabilitation of a multi-unit residential project, demonstrate the project’s ability to provide housing at a low cost to eligible families for not less than 30 years; and

     3.  Where applicable, meet the Division’s standards for fiscal underwriting.

     (Added to NAC by Housing Div., eff. 6-20-90; A by R001-02, 6-28-2002)

      NAC 319.920  Refusal to consider proposal for failure to perform certain obligations. (NRS 319.140, 319.520)  The Division may refuse to consider a proposal for a project if the sponsor, a partner of the sponsor, a member of the project development team or any other party affiliated with the proposal has failed adequately to perform its obligations in regard to an application for a federal tax credit or financing that involves the Division.

     (Added to NAC by Housing Div., eff. 6-20-90)

      NAC 319.922  Evaluation of proposals and determination of money awarded by participating jurisdiction; evaluation and approval of proposals by Division. (NRS 319.140, 319.520)

     1.  A participating jurisdiction that accepts its local share shall evaluate each proposal for a project and determine which proposal for a project will be awarded money from its local share.

     2.  To be eligible for money from the Account, each proposal for a project must be evaluated and approved by the Division using the criteria established pursuant to NRS 319.510 and the annual plan developed by the Division.

     (Added to NAC by Housing Div., eff. 6-20-90; A by R001-02, 6-28-2002)

      NAC 319.940  Execution of documents by successful applicants. (NRS 319.140, 319.520)  A successful applicant must execute any documents deemed appropriate by the Division before receiving an award of money from the Account.

     (Added to NAC by Housing Div., eff. 6-20-90)

      NAC 319.942  Distribution of money to other entities in lieu of Division of Welfare and Supportive Services. (NRS 319.140, 319.520)  The Division may distribute money from the Account pursuant to subsection 3 of NRS 319.510 if the Division of Welfare and Supportive Services of the Department of Health and Human Services fails to comply with paragraph (a) of subsection 2 of that section.

     (Added to NAC by Housing Div., eff. 6-20-90)

      NAC 319.944  Auditing of projects receiving money. (NRS 319.140, 319.520)  A project which receives money from the Account is subject to regular audits by the Division. The Division may audit a project at any reasonable time to determine compliance with the provisions of NAC 319.885 to 319.950, inclusive, and may require the project to pay the cost of the audit.

     (Added to NAC by Housing Div., eff. 6-20-90)

      NAC 319.946  Periodic reports on use of money received. (NRS 319.140, 319.520)  Each recipient of money from the Account shall, at least two times annually, report upon the use of the money as required by subsection 2 of NRS 319.520.

     (Added to NAC by Housing Div., eff. 6-20-90; A by R001-02, 6-28-2002)

      NAC 319.948  Return of money to Division: Failure to use within 3 years. (NRS 319.140, 319.520)  Except as otherwise provided in this section, if money awarded from the Account has not been expended in relation to the project within 3 years after its award to an applicant, it must be returned to the Division. Upon written request by the applicant and for good cause, the Division may extend the period of the grant for not more than 1 year.

     (Added to NAC by Housing Div., eff. 6-20-90; A by R001-02, 6-28-2002)

      NAC 319.950  Return of money to Division: Defunct projects; failure to benefit eligible families. (NRS 319.140, 319.520)  If a project ceases to exist or ceases to be used to benefit eligible families, any money awarded to the project from the Account that has not been disbursed or expended must be returned to the Account.

     (Added to NAC by Housing Div., eff. 6-20-90)

TAX CREDITS FOR LOW-INCOME HOUSING

      NAC 319.951  Definitions. (NRS 319.140, 319.145)  As used in NAC 319.951 to 319.999, inclusive, unless the context otherwise requires, the words and terms defined in NAC 319.953 to 319.965, inclusive, have the meanings ascribed to them in those sections.

     (Added to NAC by Housing Div. by R057-97, eff. 1-15-98; A by R103-05, 10-31-2005)

      NAC 319.953  “Applicant” defined. (NRS 319.140, 319.145)  “Applicant” means any person who applies for tax credits pursuant to the provisions of NAC 319.951 to 319.999, inclusive.

     (Added to NAC by Housing Div. by R057-97, eff. 1-15-98)

      NAC 319.955  “Code” defined. (NRS 319.140, 319.145)  “Code” means the Internal Revenue Code of 1986, as amended, including any regulations, circulars, letter rulings and policies adopted by the Internal Revenue Service pursuant to the Code.

     (Added to NAC by Housing Div. by R057-97, eff. 1-15-98)

      NAC 319.956  “Compliance period” defined. (NRS 319.140, 319.145)  “Compliance period” means the period during which an applicant agrees to operate a project as a low-income housing project pursuant to a declaration of restrictive covenants and conditions.

     (Added to NAC by Housing Div. by R057-97, eff. 1-15-98)

      NAC 319.957  “Day” defined. (NRS 319.140, 319.145)  “Day” means a calendar day.

     (Added to NAC by Housing Div. by R057-97, eff. 1-15-98)

      NAC 319.958  “Declaration of restrictive covenants and conditions” defined. (NRS 319.140, 319.145)  “Declaration of restrictive covenants and conditions” means an agreement between the Division and an applicant that sets forth the applicable restrictions concerning rent for a project and any other conditions upon which tax credits are awarded to the applicant by the Division pursuant to the provisions of NAC 319.951 to 319.999, inclusive.

     (Added to NAC by Housing Div. by R057-97, eff. 1-15-98)

 

      NAC 319.961  “Project sponsor” defined. (NRS 319.140, 319.145)  “Project sponsor” includes an applicant who receives tax credits and any other person who acquires an ownership interest in a project for which tax credits are awarded by the Division.

     (Added to NAC by Housing Div. by R057-97, eff. 1-15-98)

      NAC 319.962  “Qualified allocation plan” defined. (NRS 319.140, 319.145)  “Qualified allocation plan” means the plan established by the Division for allocating tax credits each year, including:

     1.  The provisions of NAC 319.951 to 319.999, inclusive;

     2.  The annual plan and the application with instructions as adopted for the plan year by the Division pursuant to NAC 319.970; and

     3.  The compliance manual prepared by the Division pursuant to NAC 319.995.

     (Added to NAC by Housing Div. by R057-97, eff. 1-15-98)

      NAC 319.964  “State ceiling” defined. (NRS 319.140, 319.145)  “State ceiling” means the per capita limit on the amount of tax credits awarded to this State for each year pursuant to the provisions of the Code.

     (Added to NAC by Housing Div. by R057-97, eff. 1-15-98)

      NAC 319.965  “Tax credit” defined. (NRS 319.140, 319.145)  “Tax credit” means a credit or reduction in federal tax liability each year for a period of 10 years that is awarded to an owner of rental housing or his or her assigns pursuant to section 42 of the Code.

     (Added to NAC by Housing Div. by R057-97, eff. 1-15-98)

      NAC 319.967  Compliance with qualified allocation plan; action or statement by Division not implied or express representation or warranty of financial feasibility. (NRS 319.140, 319.145)

     1.  Each applicant and project sponsor shall comply with the provisions of the qualified allocation plan. If a provision in the qualified allocation plan conflicts with a provision of the Code, the applicant or project sponsor shall comply with the provision of the Code. Such a conflict occurs if the application or enforcement of a provision in the qualified allocation plan or compliance manual renders a project ineligible for tax credits or disqualifies the qualified allocation plan pursuant to the Code.

     2.  An action or statement made by the Division, including any financial analysis, issuance of reservation letters and final award of tax credits, must not be interpreted or relied on as an implied or express representation or warranty by the Division that the project sponsor or project is financially feasible or is in compliance with any provision of the Code or any other statute, regulation or rule concerning the project. A determination of financial feasibility and compliance is the sole responsibility of each applicant and project sponsor.

     (Added to NAC by Housing Div. by R057-97, eff. 1-15-98)

      NAC 319.968  Recording of declaration of restrictive covenants and conditions. (NRS 319.140, 319.145)  A declaration of restrictive covenants and conditions constitutes a covenant running with the land of a project for the compliance period and must be recorded by the applicant or project sponsor in the county in which the project is located.

     (Added to NAC by Housing Div. by R057-97, eff. 1-15-98)

      NAC 319.970  Annual plan: Publication by Division; contents; application form. (NRS 319.140, 319.145)

     1.  Each calendar year constitutes a plan year for the purposes of the provisions of NAC 319.951 to 319.999, inclusive. The Division will publish an annual plan for each plan year. The annual plan will include:

     (a) Any findings by the Administrator relating to any applicable requirements for low-income housing and the priorities, policies and criteria for use during the plan year;

     (b) Dates for submitting applications and any other deadlines and procedural policies for use during the plan year;

     (c) The amount of the state ceiling and the total amount of tax credits available for reservation and award for the plan year and the manner in which those amounts will be apportioned among the reservation accounts specified in NAC 319.951 to 319.999, inclusive;

     (d) The criteria for selection, including minimum requirements, set-aside provisions, preference points and rules for breaking ties, for establishing the priorities and requirements for the plan year; and

     (e) Any other information or policies relied upon by the Division during the plan year that are in addition to or in lieu of the provisions of NAC 319.951 to 319.999, inclusive.

     2.  The Division will prepare a form for the application for tax credits and instructions for the application for each plan year. The instructions will include a list of documents that must be submitted with the application.

     (Added to NAC by Housing Div. by R057-97, eff. 1-15-98)

      NAC 319.971  Annual plan: Public hearings before adoption; notice of hearing; adoption; training sessions; fees. (NRS 319.140, 319.145)

     1.  Before adopting an annual plan and preparing the application for tax credits, the Administrator will hold at least one public hearing in Clark County, one public hearing in Washoe County and one public hearing in a county other than Clark County or Washoe County designated by the Administrator. The Administrator may hold additional hearings.

     2.  At least one of the hearings specified in subsection 1 will be scheduled as a part of a meeting of the Advisory Committee on Housing created pursuant to NRS 319.173.

     3.  The hearings will be conducted in accordance with the provisions of chapter 241 of NRS. The Division will maintain a list of persons whom the Division will notify for each hearing. The Division will include on the list the name of each person who applied for tax credits during the year immediately preceding the year in which the hearing is held. Any other person may submit a request to the Division to be included on the list. The Division will include the name of such a person on the list for 2 years after the date the request is submitted to the Division.

     4.  The Division will include in its notice for a public hearing held pursuant to this section a statement that persons may submit written comments. If the Administrator receives a written comment not less than 2 days before a scheduled hearing, the comment will be discussed at the hearing.

     5.  The Division will prepare a draft of the annual plan at least 30 days before the first hearing and provide a copy of the plan to each person whose name is included on the list specified in subsection 3.

     6.  After conducting the hearings, the Administrator will adopt a final annual plan and the application for tax credits, including instructions for completing the application.

     7.  After adopting an annual plan and the application and its instructions pursuant to this section, the Division will hold at least one training session in the northern portion of the State and one training session in the southern portion of the State. Each training session will include a discussion of the annual plan, the application and its instructions and the provisions of NAC 319.951 to 319.999, inclusive. In addition to the training sessions, the Division will conduct periodic training sessions to ensure compliance with those sections. The Division may impose a fee for attending a training session to defray the cost of:

     (a) Materials used at a training session;

     (b) Speakers, if the speakers are not employees of the Division; or

     (c) Renting or leasing a facility used for a training session.

     (Added to NAC by Housing Div. by R057-97, eff. 1-15-98)

 

 

 

      NAC 319.972  Initial apportionment of tax credits; set-aside accounts; priorities; preference points; reservation of tax credits; unused tax credits. (NRS 319.140, 319.145)

     1.  In each annual plan, the Division will add any tax credits carried over by the Division from a previous year and any tax credits awarded to the State from the national pool of unused tax credits to determine the total amount of tax credits available for allocation for the plan year. The Division will, pursuant to the annual plan, make an initial apportionment of the total allocation of tax credits in the following order:

     (a) An allocation to a set-aside account specified in this section.

     (b) An allocation to a geographic account or subaccount specified in this section.

     (c) An allocation to the general pool account specified in this section.

     2.  In accordance with the provisions of the Code, the Division will set aside 10 percent of the state ceiling for projects relating to nonprofit organizations as specified in the qualified allocation plan and the Code. The Division will identify those tax credits in the annual plan as minimum tax credits for nonprofit organizations. Pursuant to the annual plan, the Division may set aside additional amounts of tax credits for projects relating to nonprofit organizations and will identify those amounts in the annual plan as additional tax credits for nonprofit organizations. The Division will place any tax credits set aside pursuant to this subsection into a set-aside account. Any reservations and final awards of tax credits from that account will first be charged against the minimum tax credits set aside for nonprofit organizations and then charged against any additional tax credits that are set aside for nonprofit organizations. If the total amount of the minimum tax credits that are set aside for nonprofit organizations is not reserved during the first reservation round, the Division will carry over any unreserved portion of that amount into subsequent rounds as a minimum tax credit to be set aside for nonprofit organizations. Any unreserved minimum amount will not be apportioned to other accounts and will not be carried over into the next plan year. Any unreserved or unused additional tax credits may be reapportioned to other accounts or may be carried over into the next plan year by the Division.

     3.  The Division may, pursuant to the annual plan, establish set-aside accounts other than those specified in subsection 2 into which the Division will place tax credits after the minimum and additional tax credits specified in that subsection have been set aside by the Division. The Division will reserve tax credits from the accounts specified in this subsection in accordance with the annual plan. Unless otherwise provided in the annual plan, any unreserved amounts of tax credits remaining in each of those accounts after all eligible applications for a reservation of tax credits from those accounts have been considered during the first reservation round will be transferred to a set-aside account and identified as additional tax credits for nonprofit organizations. The Division may transfer those tax credits before the end of the first reservation round to maximize reservations during that round.

     4.  After each apportionment has been made to a set-aside account pursuant to subsections 2 and 3, the Division will:

     (a) Place an amount of tax credits specified in the annual plan into a geographic distribution account; and

     (b) Apportion those credits among geographic subaccounts for counties as provided in the annual plan.

     5.  The Division will make reservations of tax credits from the geographic subaccounts specified in subsection 4 based on the location of the project. If, during the first reservation round, the Division does not reserve all of the tax credits placed into the subaccount for:

     (a) Clark County, the Division will transfer any surplus tax credits remaining in that subaccount to the subaccount for Washoe County.

     (b) Washoe County, the Division will transfer any surplus tax credits remaining in that subaccount to a subaccount for all of the counties other than Clark County and Washoe County.

Ê If, at the end of the first round, the Division does not reserve any tax credits from a subaccount described in this subsection, the Division will transfer the tax credits to a general pool account to be carried over or allocated by the Division during a second round.

 

     6.  If the Division does not apportion any tax credits to an account or subaccount pursuant to this section, the Division will place those tax credits into a general pool account. Except as otherwise provided in this section, if the Division does not reserve any tax credits that remain in an account or subaccount after the Division considers all eligible applicants during the first round, the Division will transfer those tax credits to the general pool account and may reserve those tax credits from that account during the first round. Upon completion of the first round, the Division will transfer any unreserved tax credits other than minimum tax credits set aside for nonprofit organizations to the general pool account. The Division will make all subsequent reservations of tax credits from that account in accordance with the provisions of NAC 319.989 and 319.990, regardless of the amount of any tax credits that are set aside for or the geographic location of the project of an applicant.

     7.  In addition to any tax credits placed into the general pool account pursuant to subsection 1, the Division will place into that account:

     (a) Any tax credits received by the Division from the national pool of unused tax credits; and

     (b) Any other credits returned to or received by the Division after the date the Division publishes the annual plan.

     8.  Except as otherwise provided in this subsection, if an applicant is eligible for tax credits that have been set aside, the Division will first consider his or her application for a reservation of tax credits against the set-aside accounts specified in this section. If the applicant does not receive a reservation of tax credits from a set-aside account, the Division will include the application with all other applications and consider the application for a reservation of tax credits against any appropriate geographic account or subaccount. If an applicant does not receive tax credits from a geographic account or subaccount, the Division will consider reserving tax credits for the applicant from the general pool account. If an applicant qualifies for tax credits that have been set aside and:

     (a) Is the only qualifying applicant for a reservation from a set-aside account or a geographic account or subaccount, the Division may reserve tax credits for that applicant in any manner that maximizes the use of the tax credits that have been set aside and the tax credits in the geographic accounts or subaccounts.

     (b) The amount of tax credits requested in the application exceeds the amount of tax credits available for reservation from a set-aside account, the Division may, based on the number of preference points awarded to the applicant, reserve tax credits for that applicant from any other set-aside account or geographic account or subaccount. Any tax credits reserved pursuant to this paragraph will be an amount that is equal to the amount of tax credits by which the tax credits requested by the applicant exceeds the amount of tax credits available for reservation from the set-aside account.

     9.  The Division will award to each applicant a total number of preference points in accordance with the provisions of NAC 319.989. The application of any applicant who is eligible for a reservation of tax credits against an account or subaccount specified in this section will be ranked in order of priority according to the number of preference points awarded to the applicant pursuant to that section. If an application cannot be ranked because the applicant has been awarded a number of preference points that is equal to the number of preference points awarded to another eligible applicant, the Division will rank the application in accordance with the provisions of NAC 319.990. Tax credits will be reserved in accordance with the ranking established pursuant to that section until the account or subaccount is exhausted or the application that is ranked next in order of priority exceeds the balance in the account. Except as otherwise provided in subsection 10, to maximize any reservations against an account or subaccount specified in this section, if the Division makes a reservation of tax credits until an applicant whose application that is ranked next in order of priority requests an amount of tax credits that exceeds the amount available in the account or subaccount and there is a difference of 5 percent or less between the amount requested by the applicant and the amount of tax credits available for reservation, the Division may:

     (a) Offer a reduced amount of tax credits to the applicant, if the amount requested by the applicant may be reduced by 5 percent or less without impairing the financial feasibility of the project; or

     (b) Transfer not more than 5 percent of the amount requested by the applicant from the general pool account and reserve the tax credits accordingly, if a sufficient amount of tax credits has been placed into the general pool account.

     10.  If the Division makes a reservation of tax credits until an applicant whose application is ranked next in order of priority requests an amount of tax credits that exceeds the amount available in an account, the Division may award tax credits to an applicant:

     (a) Whose application is ranked next in order of priority to that application; and

     (b) Who requests an amount of tax credits that is equal to or less than the remaining balance in the account.

Ê If an application is not considered for a reservation of tax credits pursuant to this subsection, the Division will consider the application for a reservation of tax credits against another account based on the number of preference points awarded to the applicant.

     11.  If all tax credits are not awarded in a reservation round, the Division may:

     (a) Carry over the unused tax credits to the next plan year or place any unused tax credits, other than minimum tax credits set aside for nonprofit organizations, into the general pool account; and

     (b) Initiate a new reservation round.

     (Added to NAC by Housing Div. by R057-97, eff. 1-15-98)

      NAC 319.974  Application: Submission; grounds for rejection; review and retention of rejected applications; subsequent reservation rounds. (NRS 319.140, 319.145)

     1.  An application for tax credits, an additional copy of the application and the appropriate fees established in the annual plan must be received by the Division before 5 p.m. on the date specified in the annual plan for the submission of applications. The application must be:

     (a) Completed by the applicant;

     (b) Signed in all places where signatures are required; and

     (c) Accompanied by any documents required in the application and instructions for the application.

Ê Except as otherwise provided in subsection 3, the Division will not accept an application, document or fee if the application, document or fee is received by the Division after the date specified in the annual plan for the receipt thereof. If a fee for an application is paid by check on or before the date the fee is required to be paid and the check is dishonored, the Division will reject the application for which the fee was submitted.

     2.  If the United States Department of Housing and Urban Development conducts a review of a project to determine the amount of subsidies the applicant or project sponsor is receiving for the project from sources other than tax credits awarded pursuant to the Code and NAC 319.951 to 319.999, inclusive, the applicant shall provide a copy of the review with the application. If a copy of the review is not included with the application, the Division will reject the application.

     3.  If any required information or documents are not included in an application or if further documentation or clarification is required by the Division to complete a review of an application, the Division will notify the applicant. The information or documentation requested by the Division in the notice must be submitted within 5 days after the date of the notice. Except as otherwise provided in this subsection, if the information or documentation is not received within that period, the Division will reject the application. If the requested documentation relates to preference points, the preference points will not be awarded.

     4.  The Division may reject an application if:

     (a) It determines that the project for which the application is submitted does not comply with the requirements for an award of tax credits;

     (b) The amount of tax credits requested or required for the project exceeds the maximum amount of tax credits established pursuant to NAC 319.992; or

     (c) The applicant or any person who controls the applicant, including a general partner, shareholder or member who controls or owns an interest in the applicant of 25 percent or more, controlled a person of a previous applicant or project sponsor who:

          (1) Failed to complete a project in accordance with the application approved by the Division;

          (2) Within the 2 years immediately preceding the year in which the application is submitted, made a material misrepresentation to the Division concerning tax credits; or

          (3) Has, as determined by the Division, knowingly and materially failed to comply with the Code or a declaration of restrictive covenants and conditions concerning a project.

     5.  If an application is rejected, the applicant may request a review of the application by the Administrator pursuant to the provisions of NAC 319.984.

     6.  The Division will retain all rejected applications. Completed applications, supporting documents and any communication with the Division concerning those applications and documents, other than the financial statements of a natural person, are public records and will be made available by the Division for inspection and copying in accordance with the provisions of chapter 239 of NRS.

     7.  If all tax credits are not reserved during a reservation round and the Division initiates subsequent rounds, the Division will notify each applicant who did not receive tax credits during the previous round and allow him or her to resubmit an application. If an application was rejected in a previous round or must be changed upon resubmission, the application must be accompanied by a resubmission fee as provided in the annual plan. If time allows, the Division may accept new applications for a subsequent round. If any tax credits are subject to forfeiture or any other loss if not reserved during the plan year, the Division may reduce the period for submission of applications and the period for analysis and review of the applications to ensure that those tax credits are awarded not later than the end of the plan year.

     (Added to NAC by Housing Div. by R057-97, eff. 1-15-98)

      NAC 319.975  Application: Review and determination of eligibility for reservation or award of tax credits; written notice to applicant; request for review of determination; restriction. (NRS 319.140, 319.145)

     1.  The Division will:

     (a) Review each application and any supporting documents to determine whether the requirements for eligibility for a reservation or award of tax credits are met and the amount of preference points that may be awarded, regardless of whether an application qualifies for a reservation or award of tax credits that are set aside for projects involving nonprofit organizations; and

     (b) Determine the amount of tax credits for which the project may be eligible.

     2.  The Division will notify each applicant in writing of the results of its review. An applicant may, after receiving a notice pursuant to this subsection, request a review of the application with the Division. The Division may change the results of its review.

     3.  A request for a review submitted pursuant to subsection 2 must be made in writing and received by the Division within 5 days after the notice is sent pursuant to that subsection. An applicant may not, after submitting a request for review, contact the Administrator concerning the application until the Division notifies the applicant that the review is complete.

     4.  An application and any supporting documents will not be changed during a review conducted by the Division unless the change is necessary to clarify or document the status of the project sponsor or project as the sponsor or project existed at the time the application was filed.

     5.  If the Division reviews an application pursuant to this section, an applicant may not request a review of the application by the Administrator pursuant to NAC 319.984 until the Division gives notice of the proposed reservations of tax credits.

     (Added to NAC by Housing Div. by R057-97, eff. 1-15-98)

      NAC 319.977  Application: Tentative ranking; proposed reservation of tax credits; request for review by Administrator; proposed reservation subject to change. (NRS 319.140, 319.145)

     1.  Upon completion of the review of an application for tax credits, the Division will:

     (a) Make any appropriate changes to the application;

     (b) Tentatively rank the application; and

     (c) Establish proposed reservations of tax credits for projects from the apportionment accounts.

     2.  The Division will notify each applicant of the proposed reservations of tax credits. An applicant may request a review by the Administrator of the proposed reservation of tax credits for the project pursuant to NAC 319.984. An applicant may discuss the proposed reservation with a member of the staff of the Division who may extend the date for requesting a review. Such an extension must be in writing.

     3.  An applicant may not rely on a proposed reservation of tax credits as creating an obligation by the Division to reserve or award the amount of tax credits specified in the notice provided to the applicant pursuant to subsection 2. The Division may change any proposed reservation of tax credits or reject an application at any time.

     (Added to NAC by Housing Div. by R057-97, eff. 1-15-98)

      NAC 319.978  Final determination of reservation of tax credits; written notice to applicant; change in status of applicant; liability of Division. (NRS 319.140, 319.145)

     1.  Upon completion of the review of an application conducted pursuant to NAC 319.984, the Administrator will make a final determination concerning the reservation of tax credits. After making the final determination, the Administrator will notify each applicant, in writing, of the amount of tax credits, if any, that have been reserved for his or her project.

     2.  A reservation of tax credits becomes final after each applicant is notified pursuant to subsection 1. Any fees charged to the applicant by the Division for reserving tax credits are due upon receipt of the notice. No further review or appeals concerning the reservation of tax credits will be conducted by the Administrator.

     3.  A reservation of tax credits is a commitment to hold the reserved tax credits available for final award to a project until the reservation is terminated or a final award of tax credits is made. A reservation of tax credits is applicable only to the project for which those credits are reserved and may not be transferred to any other project.

     4.  Any change in the status of the applicant or project sponsor must be reviewed and approved by the Division. Such a change includes, but is not limited to:

     (a) A change in any proprietor, joint venturer, general partner, member or any shareholder who owns more than 25 percent of the outstanding stock of the applicant or project sponsor; and

     (b) Any dissolution, winding up of affairs, sale of assets, merger or business combination of any applicant or project sponsor.

     5.  Any change in the specifications or finances of a project must be approved by the Division.

     6.  If any change specified in subsection 4 or 5 occurs, the Division may require the applicant to submit a new application with the appropriate application fee.

     7.  An officer, employee or agent of the Division is not personally liable concerning any reservation or allocation of tax credits made pursuant to the provisions of NAC 319.951 to 319.999, inclusive.

     (Added to NAC by Housing Div. by R057-97, eff. 1-15-98)

      NAC 319.979  Submission of progress report by project sponsor. (NRS 319.140, 319.145)  Each project sponsor shall submit a progress report to the Division every 90 days beginning on the date he or she is notified by the Division of a reservation of tax credits. The failure of a project sponsor to submit a progress report within that period may result in the forfeiture of the reservation of tax credits for the project.

     (Added to NAC by Housing Div. by R057-97, eff. 1-15-98)

      NAC 319.980  Carryover of reserved tax credits; written request; report of compliance with certain provisions of Code; limitation on carryover. (NRS 319.140, 319.145)

     1.  If a final award of tax credits is not made by the end of a calendar year, any reserved amount of those credits may be carried over to the next year in accordance with the provisions of the Code and NAC 319.951 to 319.999, inclusive.

     2.  If an applicant wishes to carry over any reserved tax credits, the Division must receive, not later than the date set forth in the written notification of a reservation of tax credits provided to the applicant by the Division:

     (a) A written statement from the applicant requesting that the tax credits be carried over with the appropriate fees; and

     (b) The report specified in subsection 3.

Ê The Division will not grant an extension of time for the submission of the statement.

     3.  A project sponsor must submit a report by a certified public accountant on a form approved by the Division. The accountant must attest in the report that the tax credits carried over comply with the provisions of section 42(h)(1)(D), (E) and (F) of the Code.

     4.  Unless otherwise provided in the annual plan:

     (a) A declaration of restrictive covenants and conditions will be prepared for the project and recorded at the time the tax credits are carried over.

     (b) The Division will not carry over any tax credits pursuant to this section unless the property for the proposed project is zoned for multifamily units and for projects that are the size of the proposed project. If a special use permit is required for the proposed project, the Division may carry over the tax credits regardless of whether the applicant obtains a special use permit.

     (Added to NAC by Housing Div. by R057-97, eff. 1-15-98)

      NAC 319.981  Closure of project after receiving reservation of tax credits; extension of time; termination of reservation; reapplication; fees. (NRS 319.140, 319.145)

     1.  Except as otherwise provided in this section, each project that receives a reservation of tax credits must be closed within 270 days after the date the Division provides written notification to the applicant of the reservation. If a project is not closed within that period, the Division will terminate the reservation of tax credits. Before the expiration of the period, the applicant must demonstrate to the Division that he or she has closed the project within that period by providing proof satisfactory to the Division that he or she has:

     (a) Purchased and holds title in fee simple to the project site in the applicant’s name.

     (b) Entered into a written agreement with a contractor who is licensed in this State to begin construction before the expiration of the period.

     (c) Obtained adequate financing for the construction of the project. The applicant must provide written commitments or contracts from third parties.

     (d) Executed a written commitment for a loan for permanent financing for the construction of the project in an amount that ensures the financial feasibility of the project. The commitment may be subject to the condition that the construction is completed and the project is appraised for an amount sufficient to justify the loan in accordance with the requirements of the lender for credit. If the project is a rural development project that receives loans or grants from the United States Department of Agriculture, the applicant must provide a form approved by the Division that indicates that money has been obligated for the construction of the project before the expiration of the period. An advance of that money is not required before the expiration of the period.

     2.  A project that is not closed within the period and in the manner specified in subsection 1 will lose its reservation of tax credits unless the Division receives from the applicant a written request for an extension of 45 days and the fee as provided in the annual plan. The request must be accompanied by proof satisfactory to the Division indicating that:

     (a) The requirements for financing the project have been substantially completed;

     (b) The delay in closing was the result of circumstances that could not have been anticipated by and were outside the control of the applicant at the time the application was filed by the applicant; and

     (c) The project will be closed within the 45-day period.

Ê Only one extension may be granted pursuant to this subsection. If the project is not closed before the expiration of the extension period, the reservation of tax credits will terminate.

     3.  The Division may terminate a reservation of tax credits at any time if, as determined by the Division:

     (a) The applicant fails to pay the fee for the reservation of tax credits within 30 days after receiving the notice of the reservation from the Division;

     (b) The applicant or project sponsor fails to pursue diligently the construction and completion of the project;

     (c) Any event or other circumstance occurs or is discovered by the Division that is likely to cause the project to fail to comply with any of the requirements for the project or is likely to cause the project to fail to qualify for any tax credits that have been set aside, preference point award or rule for breaking ties for which the tax credits were reserved;

     (d) Any statement or representation made to the Division by the applicant or project sponsor was inaccurate or misleading at the time it was made and that statement or representation is material to any determination by the Division to make or continue the reservation of tax credits;

     (e) The applicant fails to provide any required reports or otherwise comply during the reservation period with the provisions of the Code or any regulations adopted pursuant to the Code, the annual plan or NAC 319.951 to 319.999, inclusive;

     (f) The applicant or project sponsor has, for any other project for affordable housing for which the applicant or project sponsor received a tax credit or financing for the project from the proceeds of tax-exempt bonds, failed to comply with the provisions of NAC 319.951 to 319.999, inclusive, during the compliance period for that project and failed to correct the failure to comply in a timely and reasonable manner; or

     (g) Any other event, circumstance or condition occurs for which a reservation of tax credits may be terminated as provided in the annual plan.

     4.  If the Division terminates a reservation of tax credits:

     (a) No fees paid by the applicant will be returned by the Division.

     (b) The applicant may submit a new application for tax credits during any subsequent allocation round conducted during the plan year if the Division accepts new applications for that round. The application must be accompanied by a new application fee. If the applicant receives a reservation of tax credits, the applicant must pay an additional reservation fee in an amount specified in the annual plan.

     (Added to NAC by Housing Div. by R057-97, eff. 1-15-98; A by R103-05, 10-31-2005)

      NAC 319.983  Submission of final application for tax credits upon completion of project; determination of amount of award; additional statements and forms. (NRS 319.140, 319.145)

     1.  Upon the completion of a project, the project sponsor shall submit a final application for tax credits to the Division on a form provided by the Division. The final application must be accompanied by a report from a certified public accountant attesting:

     (a) To the amount of the actual costs of construction of the project; and

     (b) That those costs may be included in the eligible basis of the project pursuant to the provisions of section 42 of the Code.

Ê The report must be submitted on a form approved by the Division.

     2.  The Division will complete a review of the project sponsor and project. If at the time the review is conducted:

     (a) The project complies with the requirements upon which tax credits were reserved pursuant to NAC 319.951 to 319.999, inclusive; and

     (b) The appropriate declaration of restrictive covenants and restrictions has been recorded,

Ê the Division will determine the appropriate amount of tax credits for that project and prepare an Internal Revenue Service Form 8609 or other appropriate form. The amount of tax credits determined pursuant to this subsection may not exceed the amount of those tax credits reserved for the applicant pursuant to the provisions of NAC 319.951 to 319.999, inclusive.

     3.  Before a form specified in subsection 2 is submitted by the Division to the project sponsor, the project sponsor must submit a written statement to at least one housing authority as defined in NRS 315.021 or any other public agency that administers public housing projects in this State. The statement must:

     (a) Provide information to the housing authority or public agency concerning the proposed project, including the location of the project, the number of units in the project, any restrictions on rent for the units in the project and the anticipated date of completion of construction of the project; and

     (b) Indicate that the applicant has requested the housing authority or public agency to refer persons who are on waiting lists for public housing to apply for units in the project.

Ê Upon submitting a statement to a housing authority or public agency pursuant to this subsection, the project sponsor shall submit a copy of the statement to the Division.

     4.  The project sponsor must submit to the Division:

     (a) A copy of the completed Internal Revenue Service Form 8609 or other appropriate form before the end of the first year the tax credits are taken; and

     (b) A copy of Internal Revenue Service Form 8586 before the end of each year of the credit period as defined in section 42(f)(1) of the Code.

     (Added to NAC by Housing Div. by R057-97, eff. 1-15-98)

      NAC 319.984  Administrative review of certain determinations and actions; written request for review; procedure for hearing; transcript of hearing; representation of parties; further proceedings and investigation; final decision; judicial review. (NRS 319.140, 319.145)

     1.  The following determinations or actions by the Division are, upon the request of an applicant, subject to review by the Administrator:

     (a) The rejection of an application;

     (b) The refusal to accept a document or other information from the applicant;

     (c) A tentative award or the denial of a reservation of tax credits and any determination or action upon which the tentative award or denial of the reservation was based;

     (d) A termination of a reservation of tax credits;

     (e) A decision to deny an award of tax credits or the determination of the final award of tax credits;

     (f) A determination or action taken during the compliance period; and

     (g) Any other determination or action for which review by the Administrator is provided for in the annual plan or approved by the Administrator.

     2.  To request a review pursuant to this section, the applicant must submit a written request to the Administrator within 7 days after the applicant receives notice of the determination or action for which the review is requested. The request must indicate the nature of the determination or action to be reviewed. The request may specify the reason why the applicant believes the determination or action by the Division was improper. The Division may submit a written response to the Administrator concerning the request.

     3.  The Administrator will schedule a hearing on the matter. Before the hearing is conducted, the applicant may inspect any document or other information included in the file of the applicant maintained by the Division regarding the determination or action of the Division, other than confidential communications between an attorney and his or her client. The applicant and the attorney, if any, may interview any officer or employee of the Division who participated in the determination or action. The attorney for the Division may be present at the interview.

     4.  At the hearing, the members of the staff of the Division may discuss the reasons for the determination or action and present documents or other information relating to the determination or action. After the discussion, the applicant may present arguments and any evidence supporting those arguments. After the applicant has presented the arguments and evidence, the members of the staff of the Division may respond to the arguments of the applicant. The Administrator may allow closing comments, ask questions at any time during the hearing or require written briefs for the hearing.

     5.  Each document in the file of the applicant maintained by the Division shall be deemed admitted in any review conducted pursuant to this section and may be reviewed by the Administrator regardless of whether those documents are marked as exhibits. To create a record of the hearing, a document or any other information that is not included in the file of the applicant maintained by the Division may be submitted at the hearing and considered by the Administrator. Before the document or other information is included in the file, the Administrator must specifically state in the written decision that the document or other information is included in the file. If the Administrator does not make such a statement, the Division will not include the document or other information in the file of the applicant maintained by the Division.

     6.  The Administrator will record on audiotape any hearing conducted pursuant to this section. The applicant may, at the expense of the Division, request a copy of the audiotape. If requested by the applicant, the Division will, at the expense of the applicant, provide a transcript of the audiotape to him or her.

     7.  The applicant may be represented by an attorney who is licensed to practice law in this State. An attorney who represents the Division may, at the request of the Administrator, be present at any hearing conducted pursuant to this section and may comment on the presentations by the Division and the applicant. If the attorney was involved in the determination or action that is the subject of the review, the attorney shall disclose that fact, but is not required to disclose any confidential communications with an officer or employee of the Division or the Administrator. The Administrator may exclude any other person from the hearing. If a person testifies on behalf of a party at the hearing, the opposing party may cross-examine that person. A review conducted pursuant to this section is not subject to the rules of evidence provided for civil actions. The Administrator will make all procedural and evidentiary decisions.

     8.  After a review is conducted pursuant to this section, the Administrator may conduct further proceedings and investigations if any information or arguments presented at the hearing were insufficient. The Administrator may communicate ex parte with the applicant or his or her attorney, the staff of the Division and any attorney representing the Division. If the Administrator:

     (a) Communicates ex parte with any attorney representing the Division, the communication is confidential.

     (b) Discovers a document or other information that is not included in the file of the applicant maintained by the Division or was not submitted at the hearing, and that document or other information is the basis for an adverse decision by the Administrator against the applicant, the applicant may review and comment on the document or other information.

     9.  The Administrator will issue the decision in writing. The decision is a final decision for the purposes of judicial review.

     10.  If an applicant files a petition for judicial review of a final decision of the Administrator pursuant to chapter 233B of NRS, the Division will, unless enjoined or otherwise ordered by the court in which the petition is filed:

     (a) Reserve and award tax credits for applicants other than the applicant who filed the petition for the plan year in which the petition is filed; and

     (b) Consider the applicant for a reservation or final award of tax credits for the plan year immediately after the plan year in which the petition is filed.

     (Added to NAC by Housing Div. by R057-97, eff. 1-15-98; A by R103-05, 10-31-2005)

      NAC 319.985  Receipt of application, notice or other document; computation of time. (NRS 319.140, 319.145)  Except as otherwise provided in NRS 238.100:

     1.  For the purposes of NAC 319.951 to 319.999, inclusive, an application, supporting document or any other document submitted pursuant to the provisions of those sections shall be deemed received when it is placed in the physical possession of an officer or employee of the Division.

 

     2.  A notice provided pursuant to the provisions of NAC 319.951 to 319.999, inclusive, unless otherwise provided in the notice, shall be deemed given and received as follows:

     (a) If the notice is provided by telephone or an oral communication, on the date that the conversation occurs between an officer or employee of the Division and the applicant or an employee of the applicant.

     (b) If the notice is provided by a facsimile machine, on the date the sender sends the facsimile and receives confirmation of a completed transmission or, if the confirmation is not received, on the date the facsimile is received by the recipient.

     (c) If the notice is provided by first-class mail, on the date the mail is postmarked.

     (d) If the notice is provided by certified mail, on the date the mail is received as indicated on the return receipt.

     (e) If the notice is provided by overnight delivery service, on the date the notice is received by the carrier.

     (f) If the notice is provided in person, on the date the notice is personally delivered in the office of the recipient to a person employed by the recipient.

     3.  For the purposes of NAC 319.951 to 319.999, inclusive, if a period for the submission or receipt of any application, notice or other document is stated in a number of days, the period begins on the day after the date that notice is provided. The period ends at midnight on the last day of the period, unless the last day is a holiday or a Saturday or Sunday. If the last day is a holiday or a Saturday or Sunday, the period is extended until the next business day the office of the Division is open.

     (Added to NAC by Housing Div. by R057-97, eff. 1-15-98)

      NAC 319.986  Eligibility for reservation or award of tax credits; inspections by Division; additional conditions and requirements. (NRS 319.140, 319.145)

     1.  The requirements for eligibility for a reservation or award of tax credits pursuant to NAC 319.951 to 319.999, inclusive, are as follows:

     (a) Each applicant and project sponsor must execute a letter of commitment in which the applicant and project sponsor agree to operate the project for not less than 30 years in accordance with the requirements set forth in those sections. The letter of commitment must be included with the application submitted by the applicant to the Division. If the Division makes a final award of tax credits for the project, the applicant and project sponsor must execute a declaration of restrictive covenants and conditions and record the declaration in the county in which the project is located.

     (b) The rent for the units in the project must be restricted and:

          (1) At least 20 percent of the units must be occupied by households with incomes that are 50 percent or less than the median income of the area in which the project is located, adjusted for family size pursuant to the Code; or

          (2) At least 40 percent of the units must be occupied by households with incomes that are 60 percent or less than the median income of the area in which the project is located, adjusted for family size pursuant to the Code.

Ê For the purposes of this subsection, the rent of a unit is restricted if the gross rents paid do not exceed 30 percent of the applicable limitations on income set forth in the Code.

     (c) The project must be financially feasible at the time the applicant submits his or her application to the Division and at the time the Division makes a final award of tax credits.

     (d) The reservation or award of tax credits for the project must be consistent with the fostering of decent, safe and sanitary housing for low-income persons as set forth in any applicable statutes and regulations and must comply with the requirements set forth in the Code or the qualified allocation plan. The Division may conduct an inspection of a project to ensure compliance with any applicable provisions of the Fair Housing Act of 1968, 42 U.S.C. §§ 3601 et seq., or the Americans with Disabilities Act of 1990, 42 U.S.C. §§ 12101 et seq., as amended, to ensure that any building or facility of the project is accessible to persons with disabilities. The Division:

          (1) May impose additional conditions on a proposed project to ensure that the project complies with the requirements of those acts; and

          (2) Will reject the application for that project if those conditions are not satisfied.

     (e) Each applicant must include with his or her application the report of a study conducted by a person other than the applicant or project sponsor. The report must be submitted on a form approved by the Division and:

          (1) Describe the project;

          (2) Provide evidence of the need for the project in the proposed location of the project; and

          (3) Specify the methods upon which any findings or conclusions included in the study are based.

     2.  The Division may establish in the annual plan any additional requirements for eligibility for a reservation or award of tax credits pursuant to the provisions of NAC 319.951 to 319.999, inclusive.

     (Added to NAC by Housing Div. by R057-97, eff. 1-15-98)

      NAC 319.987  Determination of financial feasibility; analysis of pro forma by Division; additional criteria, assumptions and limitations. (NRS 319.140, 319.145)

     1.  To meet the requirements of financial feasibility of a project for which an application for tax credits is submitted, the applicant must demonstrate to the satisfaction of the Division that the project will be financially feasible based on the amount of rent charged for units in the project as stated by the applicant in the application.

     2.  In evaluating the financial feasibility of each project, the Division will, in addition to any criteria set forth in the annual plan, consider:

     (a) The reasonableness of construction costs, using the maximum amount of costs established in the annual plan;

     (b) The cost of the project;

     (c) The cost per unit of the project;

     (d) The projected income, expenses and cash flow for the period specified in the annual plan;

     (e) The reasonableness of the projections of income and expenses and the assumptions upon which those projections are based;

     (f) The fees for developers or contractors;

     (g) The sources and uses of money for the project;

     (h) The projected proceeds from the sale of tax credits;

     (i) The plan for financing the project;

     (j) The percentage of the housing credits used for the cost of the project;

     (k) The demonstrated stability of the project sponsor, including an analysis of the financial statements of the project sponsor; and

     (l) Any other criteria set forth in the annual plan or required by the Code.

     3.  Unless otherwise provided in the annual plan or in the instructions included in an application, the Division will use the following assumptions and limitations to analyze a pro forma included with each application:

     (a) A minimum debt service coverage ratio of 1.15 on all combined debt based upon the mortgage rates at the time the Division considers the application. In determining the ratio, the Division will not consider any notes that do not require payment until the sale of the property. Developer or deferred notes will be included by the Division in the determination at the beginning of the repayment period. If a project receives money or any other assistance from the Rural Development Program of the United States Department of Agriculture, the ratio of debt service coverage established by that department for that program shall be deemed acceptable to the Division. If the applicant demonstrates to the satisfaction of the Division that a permanent lender has agreed to provide all of the permanent financing for the project at a ratio of debt service coverage other than 1.15, the Division will consider the ratio of that lender. To be considered by the Division, the commitment must be:

 

          (1) In writing;

          (2) Specifically limited to that project; and

          (3) Unconditional unless the commitment is conditioned upon the successful completion of the construction of the project and the award of tax credits for that project.

     (b) Tax credits will not be reserved to finance or capitalize any type of reserve account including, but not limited to, operating reserves or replacement reserves.

     (c) Annual increases in income and expenses that are less than 3 percent.

     (d) A vacancy factor of not more than 7 percent after each unit in the project is rented.

     (e) An operating ratio of at least 35 percent but not more than 45 percent.

     (f) Replacement reserves must be funded at a level of not less than $150 per unit per year for projects for older persons that received preference points pursuant to NAC 319.989 and at a level of not less than $200 per unit per year for any other project.

     4.  The Division will consider an amount that is more than 14 percent of the construction costs for the total of builder’s profit, builder’s overhead and general requirements to be excessive. General requirements include the cost to:

     (a) Install temporary fencing at the site of the project;

     (b) Provide services of a public utility to the site during the construction of the project; and

     (c) Provide an office or supervisor at the site of the project.

     5.  Additional criteria, assumptions and limitations may be required in the annual plan and instructions for an application.

     (Added to NAC by Housing Div. by R057-97, eff. 1-15-98; A by R124-04, 10-4-2004; R103-05, 10-31-2005)

      NAC 319.988  Eligibility of nonprofit organization for reservation of tax credits; priority ranking; requirements upon final award. (NRS 319.140, 319.145)

     1.  Unless otherwise provided in the annual plan, the Division will reserve tax credits from amounts that are set aside for nonprofit organizations pursuant to NAC 319.972 if the nonprofit organization:

     (a) Has received a determination letter from the Internal Revenue Service indicating that the organization qualifies pursuant to section 501(c)(3) or 501(c)(4) of the Code and no changes in the organizational or operational characteristics of the organization have occurred after the issuance of the determination letter that affect the validity of the determination;

     (b) Owns an interest in the project directly or through liquidation or dissolution rights as stated in the organizational documents of the applicant;

     (c) Participates on a regular, continuous and substantial basis in the development and operation of the project as specified in sections 42(h)(5) and 469(h) of the Code during the compliance period;

     (d) Is not affiliated with or controlled by a for-profit organization as determined by the Division in accordance with section 42(h)(5)(c)(ii) of the Code;

     (e) Has adopted organizational documents, including articles of incorporation, a partnership agreement and other similar documents that include as one of its purposes the fostering of low-income housing; and

     (f) Otherwise complies with the provisions of section 42(h)(5) or any other applicable provision of the Code.

     2.  If more than one project is eligible for the tax credits that are set aside for nonprofit organizations, the Division will rank the projects in order of priority in accordance with the provisions of NAC 319.989 and 319.990.

     3.  If the Division makes a final award of tax credits to a nonprofit organization specified in subsection 1, the organization shall:

     (a) Continuously and substantially participate in the management and operation of the project during the compliance period; and

     (b) Submit annually to the Division a certified statement indicating that it is in compliance with the provisions of paragraph (a).

     (Added to NAC by Housing Div. by R057-97, eff. 1-15-98)

      NAC 319.989  Criteria for award of preference points. (NRS 319.140, 319.145)

     1.  The Division will include in each annual plan the following criteria for awarding preference points:

     (a) The location of the project;

     (b) Housing needs;

     (c) The characteristics of the project and project sponsor;

     (d) Participation in the project by local tax-exempt organizations;

     (e) Populations of tenants who require special housing;

     (f) Waiting lists for public housing; and

     (g) Projects that serve tenants with the lowest incomes and that are required pursuant to the Code to serve qualified tenants for the longest period.

     2.  The Division will, in each annual plan, include provisions to assess housing characteristics and requirements and establish specific criteria intended to satisfy the goals of the Administrator for the year for which the plan is adopted. The Administrator will consider the criteria specified in subsection 1 and may use any other criteria he or she establishes to carry out those goals. The criteria may be used to establish the requirements for a reservation or award of tax credits, requirements for setting aside tax credits and preference points or other systems of allocation. The provisions of this section provide guidelines and requirements for specific criteria if those criteria are used for awarding preference points in the annual plan. If a conflict occurs between a provision in the annual plan and any provision of NAC 319.951 to 319.999, inclusive, the provision in the annual plan must be applied for the plan year.

     3.  The Division may award preference points for a project that is located in any area identified in the annual plan.

     4.  The Division may award preference points for a project that is located in an area where rents are substantially higher than the proposed rents for the project as stated in the annual plan. To qualify for preference points pursuant to this subsection, an applicant must provide market surveys or any other reports satisfactory to the Division.

     5.  The Division may award preference points to a project if the rent for not less than 20 percent of the units in the project is restricted and those units are occupied by tenants whose incomes are 50 percent or less than the median income of the area in which the project is located in accordance with section 42(g)(1) of the Code.

     6.  The Division may award preference points to a project if the applicant chooses to rent units to persons whose incomes are lower than the requirements of paragraph (b) of subsection 1 of NAC 319.986. The declaration of restrictive covenants and conditions signed by an applicant who requests preference points pursuant to this subsection must state that the units in the project are restricted to lower levels of rent during the compliance period. There must be a pro rata mix of types of units.

     7.  The Division may award preference points based on the percentage of units in the project for which rent is restricted as provided in the declaration of restrictive covenants and conditions recorded for the project.

     8.  The Division may award preference points based on the number of units in the project with three or four bedrooms that are suitable for large families.

     9.  The Division may, as provided in the annual plan, award preference points for amenities provided for a project.

     10.  The Division may award preference points for projects for older persons. To qualify as a project for older persons, the project must comply with the requirements for housing older persons set forth in the Fair Housing Act of 1968, 42 U.S.C. §§ 3601 et seq., as amended, and any regulations adopted by the United States Department of Housing and Urban Development pursuant to that Act.

 

 

 

 

 

     11.  The Division may award preference points to an applicant if:

     (a) The applicant, at the time he or she is considered for the award, signs an agreement on a form provided by the Division agreeing that:

          (1) The construction of the project will begin not later than 270 days after the date of any reservation of tax credits; and

          (2) If the construction does not begin during that period, any tax credits awarded to the applicant will be forfeited and the applicant may not apply for tax credits for the project during the allocation round, including any tax credits the project sponsor has forfeited; or

     (b) The title to the property for the project is vested in the name of the applicant at the time he or she submits the application and is free from any conditions, liens or encumbrances other than:

          (1) A condition that the property is used for low-income housing or that tax credits must be awarded for the project;

          (2) A monetary lien, including a judgment lien, deed of trust, mechanic’s lien or similar lien whose payment is specified in any document submitted pro forma for the project; or

          (3) Any other condition, lien or encumbrance approved by the Division.

     12.  The Division may award preference points if the appropriate zoning authority submits a letter to the Division describing the project and indicating that the property for the project is zoned for the size and type of project described in the application.

     13.  The Division may award preference points if a project sponsor agrees to extend the compliance period for more than 30 years and a letter is included in the application indicating the number of years that the sponsor agrees to extend the compliance period.

     14.  The Division may award preference points to an applicant who is based in this State. An applicant shall be deemed to be based in this State if he or she:

     (a) Is a sole proprietor and is a resident of this State.

     (b) Is a business entity and:

          (1) Is organized as a corporation, partnership, limited-liability company or other similar entity pursuant to the laws of this State; and

          (2) Maintains an office in this State:

               (I) From which a general partner, managing member or principal officer of the applicant, including a president or chief financial or operating officer, conducts regular business; and

               (II) That is sufficiently identified and staffed to ensure that a member of the general public may visit the office to discuss matters relating to the project.

     15.  The Division may award preference points to a corporation, partnership or limited-liability company whose general partner, managing member or principal officer, including a president or chief financial or operating officer, has not less than 5 years of experience in the construction of housing in this State. To qualify for preference points pursuant to this subsection, the application:

     (a) Must include documents that establish that the applicant has engaged in business in this State for at least 5 years within the previous 10 years;

     (b) May include documents that indicate any housing projects constructed by the applicant and supporting documents, including loan agreements, construction agreements, parcel or subdivision maps, certificates of occupancy, building permits or other similar documents; and

     (c) May include audited financial statements if the statements specify any income the applicant received for the construction of housing in this State.

     16.  The Division may award preference points to an applicant, including a sole proprietor or general partner, managing member, president or chief operating or financial officer of an applicant, who has demonstrated experience in substantially participating in the development or construction of low-income housing projects. To qualify for preference points pursuant to this subsection, the application must:

     (a) Include the address of each of those projects; and

     (b) Identify each officer or employee of the applicant who substantially participated in the development or construction of the project and the nature and extent of that participation.

     17.  The Division may award preference points based on the amount of participation in a project by a tax-exempt organization that is a public housing authority organized pursuant to the laws of this State or a nonprofit organization that:

     (a) Is organized pursuant to the laws of this State;

     (b) Is in good standing in this State; and

     (c) Complies with the requirements set forth in NAC 319.988.

     18.  The Division may award preference points to a project based on the amount of capital invested by a tax-exempt organization specified in subsection 17, regardless of whether any other participant in the project resides or is based in this State.

     19.  The Division may award preference points to a project for which units are reserved for persons who require special housing as provided in the annual plan. The reservation of those units must be for the compliance period and be described in the declaration of restrictive covenants and conditions recorded for the project.

     20.  The Division may award preference points to a project for which units are reserved for handicapped persons as defined in the Fair Housing Act of 1968, 42 U.S.C. §§ 3601 et seq., and any regulations adopted pursuant to that Act by the United States Department of Housing and Urban Development. The annual plan will specify the requirements for the units that are so reserved. To qualify for preference points pursuant to this subsection, the applicant must designate the units that are reserved for handicapped persons with physical disabilities and the units that are reserved for handicapped persons with mental disabilities. Before any tax credits may be awarded for the project, if the unit is:

     (a) For a person with a physical disability, the unit must be:

          (1) Designed to meet the requirements set forth in the annual plan for buildings that provide accessibility for persons with disabilities. As a part of the application, the architect for the project must certify that the designated units meet or exceed those requirements and, before any final award of tax credits, the Division must receive a certificate or other evidence satisfactory to the Division that each of those units complies with those requirements.

          (2) Constructed with such additional amenities and equipment as are necessary to ensure that the units are usable for persons with disabilities as specified in the annual plan. The applicant must agree to provide the amenities and equipment as a condition of the application.

     (b) For a person with a mental disability, the applicant must enter into an agreement with a licensed public or private mental health organization to provide, on the site of the project, counseling and rehabilitative or other appropriate support services to a tenant in the unit. The agreement must specify the number of units for which those services must be available and the nature of services that may be provided by the organization for the tenants. The agreement must be included in the application and be satisfactory to the Division before preference points may be reserved and awarded.

Ê During the compliance period, the reserved unit may be substituted for another unit if the substituted unit is appropriately equipped to accommodate the tenant and if handicapped persons occupy the total percentage of units that qualified the project to receive preference points pursuant to this subsection.

     21.  The Division may award preference points to a project for which units are reserved for households with single parents. The units must be specifically identified in the application. During the compliance period, any unit may be substituted for a unit specified in the application if the required percentage of total units are occupied by households with single parents.

     22.  The Division may establish in each annual plan additional criteria for awarding preference points for the plan year.

     (Added to NAC by Housing Div. by R057-97, eff. 1-15-98)

 

 

 

 

      NAC 319.990  Ranking of certain projects that receive equal number of preference points. (NRS 319.140, 319.145)  If two or more projects are eligible for a reservation of tax credits against the same apportionment account and have received the same number of preference points, the Division will rank the projects in order of priority based on criteria established in the annual plan. If the projects cannot be so ranked using those criteria, the Division will conduct a lottery to rank the projects.

     (Added to NAC by Housing Div. by R057-97, eff. 1-15-98)

      NAC 319.991  Calculation of reservation of tax credits; qualified census tracts; subsequent allocation rounds. (NRS 319.140, 319.145)

     1.  Except as otherwise provided in NAC 319.992, the amount of tax credits to be reserved will be:

     (a) The amount of tax credits requested, as calculated pursuant to subsection 2; or

     (b) The annual amount of tax credits required for the project, as calculated pursuant to subsection 3,

Ê whichever is less.

     2.  To determine the amount of tax credits requested pursuant to paragraph (a) of subsection 1, the Division will:

     (a) Calculate the total eligible basis for the project by subtracting the amount of any federal grants used to finance development, nonqualifying nonrecourse financing and the nonqualifying portion of the higher-quality unit costs from an amount that is equal to 70 percent of the total estimated costs of the project;

     (b) Calculate the total adjusted eligible basis for the project by multiplying the total eligible basis calculated pursuant to paragraph (a) by the applicable factor specified in the annual plan pursuant to subsection 4, if the project is located in a qualified census tract or an area that is difficult to develop;

     (c) Calculate the total qualified basis for the project by multiplying the total eligible basis for the project calculated pursuant to paragraph (b) by the ratio of units in the project for which rent is restricted to all units in the project or the ratio of the square footage of the units in the project for which rent is restricted to the square footage of all units in the project, whichever is less; and

     (d) Multiply the total qualified basis calculated pursuant to paragraph (c) by:

          (1) Except as otherwise provided in subparagraphs (2) and (3), 9 percent;

          (2) Except as otherwise provided in subparagraph (3), 4 percent, if the tax credits applied for are in connection with the financing of bonds; or

          (3) An amount specified in the annual plan.

     3.  To determine the annual amount of tax credits required for the project pursuant to paragraph (b) of subsection 1, the Division will:

     (a) Calculate the adjusted costs of the project by subtracting the amount of any fees that exceed the maximum amount set forth in NAC 319.987 from the total amount of money used for the project, including the cost of any land for the project and any other costs that are not included in the eligible basis of the project;

     (b) Subtract the total amount of money for the project received from mortgages, grants, investments by project sponsors, developer notes and similar sources of money from the adjusted costs of the project calculated pursuant to paragraph (a);

     (c) Divide the amount determined pursuant to paragraph (b) by the amount of the syndicate pricing factor; and

     (d) Divide the amount determined pursuant to paragraph (c) by 10.

     4.  If the project is located in an area that is difficult to develop as specified in the annual plan or in a qualified census tract, the Division may adjust the eligible basis of the project as provided in the annual plan. For the purposes of this subsection, the following areas are qualified census tracts:

 

 

 


Reno.................................. Tract 0001.00

                                           Tract 0009.00

                                           Tract 0018.00

Las Vegas.......................... Tract 0003.01

                                           Tract 0003.02

                                           Tract 0004.00

                                           Tract 0005.04

                                           Tract 0007.00

                                           Tract 0008.00

                                           Tract 0009.00

                                           Tract 0011.00

                                           Tract 0022.01

Las Vegas (cont.).............. Tract 0035.00

                                           Tract 0036.02

                                           Tract 0038.00

                                           Tract 0039.98

                                           Tract 0046.00

Elko County...................... Tract 9501.00

                                           Tract 9505.00

                                           Tract 9506.00

                                           Tract 9515.00

Humboldt County............. Tract 9603.00

Lyon County..................... Tract 9606.00

 

     5.  If increases in the costs of the project occur after the Division makes a reservation of tax credits for the project, an applicant may submit an application during any subsequent allocation round for additional tax credits. The Division will consider an application submitted pursuant to this subsection as a new application. The application will be reviewed as provided in NAC 319.951 to 319.999, inclusive.

     (Added to NAC by Housing Div. by R057-97, eff. 1-15-98; A by R124-04, 10-4-2004)

      NAC 319.992  No award if amount of tax credits requested or required for project exceeds certain amount. (NRS 319.140, 319.145)  The Division will not award any tax credits for a project if:

     1.  The amount of tax credits requested as calculated pursuant to subsection 2 of NAC 319.991; or

     2.  The annual amount of tax credits required for the project as calculated pursuant to subsection 3 of that section,

Ê exceeds the maximum amount of tax credits that are available as established in the annual plan for the year in which the tax credits are reserved.

     (Added to NAC by Housing Div. by R057-97, eff. 1-15-98)

      NAC 319.993  Calculation of final award of tax credits. (NRS 319.140, 319.145)

     1.  The amount of a final award of tax credits will be:

     (a) The amount of tax credits requested, as calculated pursuant to subsection 2; or

     (b) The annual amount of tax credits required for the project, as calculated pursuant to subsection 3 of NAC 319.991,

Ê whichever is less.

     2.  To determine the amount of tax credits requested pursuant to paragraph (a) of subsection 1, the Division will:

     (a) Calculate the total eligible basis for the project by subtracting the amount of any federal grants used to finance development, nonqualifying nonrecourse financing and nonqualifying portion of higher-quality unit costs from an amount that is equal to 70 percent of the total actual costs of the project;

     (b) Calculate the total adjusted eligible basis for the project by multiplying the total eligible basis calculated pursuant to paragraph (a) by the applicable factor specified in the annual plan pursuant to subsection 4 of NAC 319.991, if the project is located in a qualified census tract or an area which is difficult to develop;

     (c) Calculate the total qualified basis for the project by multiplying the total eligible basis for the project calculated pursuant to paragraph (b) by the ratio of units in the project for which rent is restricted to all units in the project or the ratio of the square footage of the units in the project for which rent is restricted to the square footage of all units in the project, whichever is less; and

 

     (d) Multiply the total qualified basis calculated pursuant to paragraph (c) by the applicable percentage of housing credits prescribed by the Secretary of the Treasury pursuant to section 42(b)(2) of the Code.

     (Added to NAC by Housing Div. by R057-97, eff. 1-15-98)

      NAC 319.995  Compliance with certain provisions during compliance period; preparation of compliance manual by Division; records and reports; annual certification; inspections; notification of noncompliance; fees. (NRS 319.140, 319.145)

     1.  Each project sponsor shall, for the compliance period, comply with the provisions of NAC 319.951 to 319.999, inclusive, the declaration of restrictive covenants and conditions and the Code. The failure of the project sponsor to comply with those provisions may result in a revocation of the allocated tax credits by the Internal Revenue Service.

     2.  The Division will prepare and periodically revise a compliance manual specifying the forms that must be used and any other requirements for project sponsors. The Division will provide a copy of the compliance manual to each applicant when tax credits are allocated pursuant to the provisions of NAC 319.951 to 319.999, inclusive. The Division will send a copy of each revision of the compliance manual to each project sponsor. A project sponsor may obtain additional copies from the Division upon the payment of a fee to cover the costs of those copies.

     3.  Each project sponsor shall maintain records for each building in the project. The records must include the following information for each year of the compliance period:

     (a) The total number of units in the building, including the number of bedrooms and the size in square feet of each of those units;

     (b) The percentage of units in the building that are low-income units;

     (c) The rent charged for each unit in the building, including any allowances for utilities;

     (d) The number of occupants in each low-income unit, if the rent for those units is determined by the number of occupants in each unit pursuant to the provisions of section 42(g)(2) of the Code that are in effect before the effective date of the amendments to the Code made pursuant to the Revenue Reconciliation Act of 1989, 26 U.S.C. §§ 898, 4471, 4472, 4681, 4682, 4978B and 6662 to 6665, inclusive;

     (e) The vacancies in the low-income units in the building and any information that indicates the date and each person to whom the next available units were rented;

     (f) An annual certification of the income of each low-income tenant;

     (g) Documentation to support the certification of the income of each low-income tenant;

     (h) The eligible basis and qualified basis of the building at the end of the first year of the credit period as defined in section 42(f)(1) of the Code;

     (i) The character and use of the nonresidential portion of the building included in the eligible basis of the building pursuant to section 42(d) of the Code; and

     (j) The date that each resident initially occupies a rental unit.

     4.  The project sponsor shall maintain:

     (a) The records specified in subsection 3 for at least 6 years after the date for filing the federal income tax return for that year; and

     (b) The records for the first year of the credit period as defined in section 42(f)(1) of the Code for at least 6 years after the date for filing the federal income tax return for the last year of the compliance period as defined in section 42(i)(1) of the Code relating to a building in the project.

     5.  The project sponsor shall, at least annually, certify to the Division under penalty of perjury that, during the immediately preceding 12 months:

     (a) The project was in compliance with the provisions of the declaration of restrictive covenants and conditions concerning the number of units in the project for which rent is restricted and the amount of rent for those units;

     (b) The project sponsor has received an annual certification of the income of each low-income tenant and documentation to support that certification or, if the tenant receives payments for housing assistance pursuant to section 8 of the United States Housing Act of 1937, 42 U.S.C. § 1437f, a statement from a public housing authority;

     (c) The rent for each low-income unit in the project was restricted pursuant to section 42(g)(2) of the Code;

     (d) Each unit in the project, other than transitional housing for the homeless provided pursuant to section 42(i)(3)(B)(iii) of the Code, was available for occupancy by a member of the public and used on a nontransient basis;

     (e) Each building in the project was suitable for occupancy in accordance with local health, safety and building codes;

     (f) The eligible basis of any building in the project did not change, or if there was a change, the nature of the change;

     (g) The applicable fraction, as defined in section 42(c)(1)(B) of the Code, of any building in the project did not change;

     (h) The facilities for tenants included in the eligible basis of any building in the project pursuant to section 42(d) of the Code, including swimming pools, parking areas and any other recreational facilities, were provided on a comparable basis without charge to each tenant in the building;

     (i) If a low-income unit in the project has been vacant during the year, reasonable efforts were made to rent that unit or the next available unit of comparable or smaller size to tenants who had a qualifying income before any units in the project were rented to tenants who did not have a qualifying income;

     (j) If the income of tenants of a low-income unit in the project increased above the limit specified in section 42(g)(2)(D)(ii) of the Code, the next available unit of comparable or smaller size in the project was rented to tenants who had a qualifying income; and

     (k) The project remained subject to the declaration of restrictive covenants and conditions for low-income housing tax credits.

     6.  Each project sponsor shall, on or before the first day of each calendar quarter, provide a report to the Division on the form provided in the compliance manual. The report must include:

     (a) The number of units occupied by low-income tenants and other tenants;

     (b) The number of certified units;

     (c) The identification number of the building;

     (d) The amount of rent for and the type of each unit; and

     (e) The name, household size, annual household income and annual date for certifying the income of each tenant.

     7.  The Division will review each report submitted pursuant to subsection 6. The Division will periodically conduct reviews of any portion of the records of the low-income units in each project. The Division will notify each project sponsor of those units that are designated by the Division for review. The notice must include a request for copies of documents, including:

     (a) Rental applications submitted by tenants;

     (b) The certification of annual income for each tenant, including the documents to support the certification; and

     (c) The lease agreement for each tenant.

     8.  The Division will review the annual certifications and quarterly reports for compliance with the requirements of the Code and compliance manual. Each year, the Division will:

     (a) Review at least 20 percent of the completed projects; and

     (b) Randomly review the documentation of at least 20 percent of the low-income tenants, including a copy of the certification of annual income, the documentation the project sponsor has received to support that certification and the lease and the rental record.

Ê The Division will notify the project sponsor before it conducts the inspection. The notice will not specify the records that will be examined.

     9.  The Division may perform inspections of any low-income housing project and each unit in the project during the compliance period. The inspection is in addition to any review of certifications of annual income, supporting documents and rental records specified in this section.

 

     10.  If the Division determines that a project sponsor has not complied with any provision of the Code or NAC 319.951 to 319.999, inclusive, the Division will notify the project sponsor and the Internal Revenue Service of the noncompliance. The Division will notify the project sponsor in writing if the Division does not receive the annual certification or does not receive or is not allowed to inspect the certifications of annual income of the tenants, supporting documents and rental records as specified in this section or in the compliance manual, or determines that the project is not in compliance with the provisions of the Code. The Division will file Internal Revenue Service Form 8823 with the Internal Revenue Service and indicate on the form the nature of the noncompliance or failure to certify and whether the project sponsor has corrected the noncompliance or failure to certify. Any change in the applicable fraction or eligible basis that results in a decrease in the qualified basis of the project pursuant to section 42(c)(1)(A) of the Code constitutes noncompliance that will be reported to the Internal Revenue Service. The Division will notify the Internal Revenue Service of any noncompliance regardless of whether the noncompliance is corrected by the project sponsor.

     11.  The Division will charge such fees as are necessary to cover the costs and expenses it incurs for any review conducted pursuant to this section.

     (Added to NAC by Housing Div. by R057-97, eff. 1-15-98)

      NAC 319.996  Projects financed by tax-exempt bonds: Applicability of certain provisions; application for tax credits. (NRS 319.140, 319.145)

     1.  Except as otherwise provided in this section, tax credits awarded to a project that is financed by 50 percent or more of the proceeds of tax-exempt bonds are governed by the provisions of NAC 319.951 to 319.999, inclusive.

     2.  The provisions of NAC 319.972 to 319.978, inclusive, 319.980, 319.981, 319.988, 319.990, 319.991 and 319.992 do not apply to tax credits awarded to a project specified in subsection 1.

     3.  An application for tax credits for a project specified in subsection 1 must be completed and will be evaluated in connection with the application for the financing of any bonds for that project.

     (Added to NAC by Housing Div. by R057-97, eff. 1-15-98; A by R124-04, 10-4-2004)

      NAC 319.998  Fees. (NRS 319.140, 319.145)  The Division will establish in the annual plan any fee required to be paid pursuant to NAC 319.951 to 319.999, inclusive. The fees established by the Division pursuant to this section are not refundable.

     (Added to NAC by Housing Div. by R057-97, eff. 1-15-98)

      NAC 319.999  Limitation on amount of developer’s fee for certain projects. (NRS 319.140, 319.145)  The total amount of a developer’s fee for a project for which an application for tax credits is submitted or for a project that is financed by 50 percent or more of the proceeds of tax-exempt bonds, including any profit or overhead of the developer and any fees for consultants or processing agents, must not exceed 15 percent of the eligible basis of the project, excluding the developer’s fee.

     (Added to NAC by Housing Div. by R103-05, eff. 10-31-2005)