[Rev. 11/21/2013 10:50:40 AM--2013]

CHAPTER 319 - ASSISTANCE TO FINANCE HOUSING

GENERAL PROVISIONS

NRS 319.020           Legislative findings and declaration; liberal construction.

NRS 319.030           Definitions.

NRS 319.040           “Administrator” defined.

NRS 319.045           “Collateralized mortgage obligation” defined.

NRS 319.050           “Division” defined.

NRS 319.060           “Eligible family” defined.

NRS 319.070           “Governmental agency” defined.

NRS 319.090           “Lending institution” defined.

NRS 319.100           “Mortgage” defined.

NRS 319.110           “Mortgage loan” defined.

NRS 319.115           “Person with a disability” defined.

NRS 319.120           “Real property” defined.

NRS 319.130           “Residential housing” defined.

NRS 319.135           “Sponsor” defined.

NRS 319.140           General powers and duties of Division; audit; exemption from State Purchasing Act.

NRS 319.143           Division required to create and maintain statewide low-income housing database.

NRS 319.145           Designation as housing credit agency; authority to administer HOME Investment Partnership Act; duty to administer program to increase efficiency in use of energy in dwellings owned or occupied by persons of low income.

NRS 319.147           Certification of assisted living facilities: Requirements; regulations.

NRS 319.167           Division may enter into instruments, agreements and other transactions for certain purposes.

NRS 319.170           Funds and accounts; investments and deposits.

NRS 319.171           Investment in collateralized mortgage obligations or trusts.

NRS 319.172           Authority to make loans of investment securities.

NRS 319.173           Advisory Committee on Housing: Creation; members; meetings; submission and review of work plan; duties.

NRS 319.190           Authority to make loans and issue letters of credit.

NRS 319.200           Terms and conditions of mortgage loan.

NRS 319.210           Investment in mortgages.

NRS 319.220           Mortgages in default: Foreclosure; modification of terms.

NRS 319.230           Loans to or purchase of securities from lending institutions; collateral.

NRS 319.235           Financing rental sites for mobile homes and equipment for conservation of energy in residential dwelling units.

NRS 319.240           Lending fees and charges.

NRS 319.250           Insurance.

NRS 319.260           Prerequisites to financing residential housing.

NRS 319.265           Requirements for regulations adopted by Division that establish program for financing certain residential housing projects.

NRS 319.267           Duty of certain owners of residential housing to submit quarterly report to Aging and Disability Services Division of Department of Health and Human Services.

ISSUANCE OF NOTES, BONDS AND OTHER OBLIGATIONS

NRS 319.270           Notes and bonds: Issuance; limitation on outstanding obligations.

NRS 319.280           Notes and bonds: Execution; terms; chapter 349 of NRS inapplicable.

NRS 319.290           Notes and bonds: Pledges as security.

NRS 319.300           Bonds: Trust indentures as security.

NRS 319.310           Notes and bonds: Guarantees of payment.

NRS 319.320           Notes and bonds: Redemption; remarketing or refunding.

NRS 319.323           Issuance of collateralized mortgage obligations; use of proceeds; submission of findings to State Board of Finance.

NRS 319.325           Division may provide that bonds, notes or loans be insured or secured; payment of costs associated with insurance.

NRS 319.327           Exemption of interest on Division’s bonds from federal income taxation: Waiver; issuance of obligations not exempt from taxation.

NRS 319.330           Refunding obligations: Issuance, sale and exchange.

NRS 319.340           Bond reserve funds: Establishment; use; requirements.

NRS 319.350           Bond reserve funds: Limitations.

NRS 319.360           Bond reserve funds: Purpose; status reports.

NRS 319.370           Remedies of bondholders and noteholders.

NRS 319.380           Pledge against impairment of holders’ rights and remedies; credit of State not pledged.

NRS 319.390           Notes and bonds as legal investments.

ACCOUNT FOR LOW-INCOME HOUSING

NRS 319.500           Creation; investment of money; claims.

NRS 319.510           Use and distribution of money in Account.

NRS 319.520           Regulations concerning distribution and use of money in Account; requirements for recipient of money.

UNLAWFUL ACTS

NRS 319.900           False statements; penalty.

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GENERAL PROVISIONS

      NRS 319.020  Legislative findings and declaration; liberal construction.  The Legislature finds and declares that:

      1.  There exists a serious shortage of decent, safe and sanitary housing in this State available to persons and families of low and moderate income and that many other persons and families are unable to secure or afford, without assistance, decent, safe and sanitary housing.

      2.  This condition is conducive to disease, crime, environmental decline and poverty, impairs the economic value of large areas, which are characterized by depreciated value, impaired investments, reduced capacity to pay taxes, and lack of new development to meet the needs of area residents, and is a menace to the health, safety, morals and welfare of the residents of this State.

      3.  This condition results in a loss of population and further deterioration accompanied by added costs to communities for creation of new public facilities and services elsewhere.

      4.  It is difficult and uneconomic for individual owners independently to remedy this condition.

      5.  One major cause of this condition has been recurrent shortages of money from private sources, and such shortages have contributed to reductions in construction of new residential housing and have made the sale and purchase of existing residential housing a virtual impossibility in certain parts of the State. Other causes of this condition include increases in rental values and decreases in the availability of federal funding for housing.

      6.  The ordinary operations of private enterprise have not in the past corrected these conditions.

      7.  The reduction in housing construction has caused substantial unemployment and underemployment in the construction industry which, together with the shortage of affordable housing, results in hardships, wastes human resources, increases the public assistance burdens of the State, impairs the security of family life, impedes the economic and physical development of the State and adversely affects the welfare, health and prosperity of all the people of this State.

      8.  A stable supply of adequate money for the financing and provision of other assistance to obtain housing is required to encourage new housing in an orderly and sustained manner, to increase the availability of affordable housing, and thereby to reduce these detrimental results.

      9.  It is necessary to create a Housing Division in the Department of Business and Industry to encourage the investment of private capital and stimulate the financing of housing through the use of public financing to provide mortgage loans and to make loans to and purchase mortgage loans from mortgage lenders, and to perform any other function authorized by this chapter.

      10.  It is appropriate for the Housing Division to issue obligations regardless of their characterization for the purposes of federal income taxation by the United States Department of the Treasury.

      11.  All of the purposes set forth in this chapter are public purposes and uses for which public money may be borrowed, expended, advanced, loaned or granted.

Ê This chapter must be liberally construed to accomplish the public purposes and alleviate the detrimental conditions set forth in this section.

      (Added to NRS by 1975, 625; A 1987, 1353; 1989, 1213; 1993, 1554)

      NRS 319.030  Definitions.  As used in this chapter, the words and terms defined in NRS 319.040 to 319.135, inclusive, have the meanings ascribed to them in those sections.

      (Added to NRS by 1975, 626; A 1979, 1186; 1987, 1354; 2009, 540)

      NRS 319.040  “Administrator” defined.  “Administrator” means the Administrator of the Division.

      (Added to NRS by 1975, 626; A 1993, 1555)

      NRS 319.045  “Collateralized mortgage obligation” defined.  “Collateralized mortgage obligation” means an obligation which represents an interest in a loan or a group of loans or which may be issued by the owner of one or more loans and secured by an assignment of or an interest in the principal or interest payable from such a loan or loans or by an interest in the underlying loan.

      (Added to NRS by 1987, 1350)

      NRS 319.050  “Division” defined.  “Division” means the Housing Division of the Department of Business and Industry.

      (Added to NRS by 1975, 626; A 1993, 1555)

      NRS 319.060  “Eligible family” defined.  “Eligible family” means a person or family, selected without regard to race, creed, national origin or sex, determined by the Division to require such assistance as is made available by this chapter on account of insufficient personal or family income after taking into consideration, without limitation, such factors as:

      1.  The amount of the total income of that person or family available for housing needs;

      2.  The size of the family;

      3.  The cost and condition of housing facilities available;

      4.  The ability of the person or family to compete successfully in the normal private housing market and to pay the amounts at which private enterprise is providing decent, safe and sanitary housing;

      5.  If appropriate, standards established for various federal programs determining eligibility based on income of those persons and families; and

      6.  Service in the Armed Forces of the United States with a minimum of 90 days on active duty at some time between:

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

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

      (c) December 7, 1941, and December 31, 1946;

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

      (e) January 1, 1961, and May 7, 1975,

Ê and at least 2 years’ continuous residence in Nevada immediately preceding any application for assistance under this chapter.

      (Added to NRS by 1975, 626; A 1979, 1186; 1989, 1214)

      NRS 319.070  “Governmental agency” defined.  “Governmental agency” means the United States of America, this state or any department, division, public corporation, public agency, political subdivision or other public instrumentality of either.

      (Added to NRS by 1975, 626)

      NRS 319.090  “Lending institution” defined.  “Lending institution” means any bank or trust company, Federal National Mortgage Association approved mortgage banker, national banking association, savings and loan association or other financial institution or governmental agency of the United States which customarily provides service or otherwise aids in the financing of mortgages located in this state.

      (Added to NRS by 1975, 626)

      NRS 319.100  “Mortgage” defined.  “Mortgage” means a mortgage deed, deed of trust or other instrument which constitutes a lien on real property in fee simple or on a leasehold under a lease whose remaining term, at the time such mortgage is acquired, does not expire for at least that number of years beyond the maturity date of the obligation secured by such mortgage as is established by the Division as necessary to protect its interest as mortgagee.

      (Added to NRS by 1975, 627)

      NRS 319.110  “Mortgage loan” defined.  “Mortgage loan” means an interest-bearing obligation secured by a mortgage on land and improvements in this state.

      (Added to NRS by 1975, 627)

      NRS 319.115  “Person with a disability” defined.  “Person with a disability” has the meaning ascribed to it in NRS 433.5473.

      (Added to NRS by 2009, 539)

      NRS 319.120  “Real property” defined.  “Real property” means all lands, including rights to space above the lands, improvements and fixtures on the lands and property of any nature appurtenant to or used in connection with the lands, and every estate, interest and right, legal or equitable, in the lands, including terms of years and liens by way of judgment, mortgage or otherwise and the indebtedness secured by such liens.

      (Added to NRS by 1975, 627; A 1977, 50)

      NRS 319.130  “Residential housing” defined.  “Residential housing” means one or more new or existing residential dwelling units financed pursuant to the provisions of this chapter for the primary purpose of providing decent, safe and sanitary dwelling accommodations for eligible families in need of housing, including any buildings, manufactured homes, mobile homes, mobile home parks, land, improvements, equipment, facilities, other real or personal property, or other related nonhousing facilities which are necessary, convenient or desirable in connection therewith, and including but not limited to streets, sewers, utilities, parks, site preparation, landscaping and other nonhousing facilities such as administrative, community, transportation, health, recreational, educational, commercial, retail, welfare and public facilities which the Division determines improve the quality of the residential living for eligible families.

      (Added to NRS by 1975, 627; A 1981, 1664; 1983, 971)

      NRS 319.135  “Sponsor” defined.  “Sponsor” means any natural person, association, corporation, joint venture, partnership, trust, state agency, municipality or other legal entity, or any combination thereof, which:

      1.  Has been approved by the Division to acquire, own, construct, rehabilitate, operate, lease, manage or maintain a housing project; and

      2.  Except for a state agency or municipality, has agreed to subject itself to regulation by the Division.

      (Added to NRS by 1977, 195)

      NRS 319.140  General powers and duties of Division; audit; exemption from State Purchasing Act.

      1.  The Division shall administer the provisions of this chapter. The Administrator may adopt, amend or rescind regulations, consistent with the provisions of this chapter, appropriate to carry out its purposes.

      2.  The Administrator may make copies of all proceedings and other records and documents of the Division and issue certificates under the seal of the Division to the effect that the copies are true copies, and all persons dealing with the Division may rely upon such certificates.

      3.  The Division has perpetual succession, subject to termination in accordance with statute, and may:

      (a) Sue and be sued in its own name, subject to chapter 41 of NRS;

      (b) Adopt an official seal and alter the same at the pleasure of the Division;

      (c) Maintain such offices at any place or places within the State as it determines necessary to carry out the provisions of this chapter;

      (d) Maintain records, proceedings and documents of the Division, subject to chapters 239, 239A and 239B of NRS;

      (e) Develop or purchase, lease or otherwise acquire one or more information systems that the Division determines are necessary or convenient for the exercise of its powers and duties pursuant to this chapter and acquire any consulting, support or other service for such information systems;

      (f) Make and execute contracts and all other instruments necessary or convenient for the exercise of its powers and functions pursuant to this chapter with any governmental agency, private corporation or other entity, or natural person;

      (g) Enter into agreements or other transactions with, and accept grants from and cooperate with, any governmental agency or other source in furtherance of the purposes of this chapter;

      (h) Acquire real or personal property or any interest therein, by gift, purchase, foreclosure, deed in lieu of foreclosure, lease, option or otherwise;

      (i) Hold, sell, assign, lease, encumber, mortgage, release or otherwise dispose of any real or personal property or any interest therein, by public or private sale, with or without public bidding, notwithstanding any other provision of law;

      (j) Employ or contract for the services of attorneys, accountants, financial experts and any other advisers, employees, consultants and agents as the Administrator may determine to be necessary;

      (k) Create or cause to be created legal entities, including nonprofit corporations, grantor trusts and other legal entities, which the Division determines are necessary or convenient for the exercise of its powers and duties pursuant to this chapter, provided, however, that the issuance of bonds, notes or other evidence of indebtedness by any legal entity controlled by the Division is subject to the approval of the State Board of Finance;

      (l) Provide advice, technical information, training and educational services related to the development of housing, building technologies and related fields;

      (m) Conduct research, make grants, and promote the development of housing, building technologies and related fields; and

      (n) Do any and all things necessary or appropriate to carry out its purposes and exercise the powers expressly granted pursuant to this chapter.

      4.  The Division shall cause an audit of its books and accounts to be made at least once in each fiscal year by a certified public accountant. The certified public accountant may audit the Division’s books and accounts for consecutive audit periods as requested by the Division.

      5.  The Division is exempt from the provisions of chapter 333 of NRS.

      (Added to NRS by 1975, 627; A 1979, 1186; 2001, 2120; 2003, 2190, 2194; 2009, 650; 2013, 1619)

      NRS 319.143  Division required to create and maintain statewide low-income housing database.

      1.  The Division shall create and maintain a statewide low-income housing database.

      2.  The database must include, without limitation, the compilation and analysis of demographic, economic and housing data from a variety of sources that:

      (a) Provides for an annual assessment of the affordable housing market at the city and county level, including data relating to housing units, age of housing, rental rates and rental vacancy rates, new home sales and resale of homes, new construction permits, mobile homes, lots available for mobile homes and conversions of multifamily condominiums;

      (b) Addresses the housing needs of various population groups in Nevada, such as households that rent, homeowners, elderly households, veterans, persons with disabilities or special needs, homeless persons, recovering drug abusers, persons suffering from mental health ailments and victims of domestic violence, with each group distinguished to show the percentage of the population group at different income levels, and a determination of the number of households within each special-needs group experiencing housing costs greater than 50 percent of their income, overcrowding or substandard housing;

      (c) Contains an estimate of the number and condition of subsidized and other low-income housing units at the county level and the identification of any subsidized units that are forecast to convert to market-rate units within a 2-year planning period;

      (d) Provides a demographic and economic overview by local and county jurisdiction, if feasible, for the population of Nevada, including age, race and ethnicity, household size, migration, current and forecast employment, household income and a summary relating to the effects of demographics and economic factors on housing demand;

      (e) Provides the number of housing units available to a victim of domestic violence from any housing authority, as defined in NRS 315.021, and from participation in the program of housing assistance pursuant to section 8 of the United States Housing Act of 1937, 42 U.S.C. § 1437f; and

      (f) Provides the number of terminations of victims of domestic violence in this State from the program of housing assistance pursuant to section 8 of the United States Housing Act of 1937, 42 U.S.C. § 1437f.

      3.  The costs of creating and maintaining the database:

      (a) Must be paid from the Account for Low-Income Housing created by NRS 319.500; and

      (b) May not exceed $175,000 per year.

      (Added to NRS by 2009, 539)

      NRS 319.145  Designation as housing credit agency; authority to administer HOME Investment Partnership Act; duty to administer program to increase efficiency in use of energy in dwellings owned or occupied by persons of low income.

      1.  The Division is hereby designated as the housing credit agency for the State of Nevada, as that term is defined in 26 U.S.C. § 42(h)(7)(A), for the purpose of allocating and distributing credits for low-income housing pursuant to 26 U.S.C. § 42.

      2.  The Division:

      (a) May adopt regulations establishing procedures necessary for the proper allocation and distribution of credits for low-income housing pursuant to 26 U.S.C. § 42; and

      (b) Shall exercise all powers necessary to administer the allocation and distribution of those credits.

      3.  The Division may act for the State of Nevada as the agency to facilitate the state’s designation as a participating jurisdiction in the HOME Investment Partnership Act (42 U.S.C. §§ 12701 et seq.). Upon receiving such a designation, the Division may exercise all powers necessary to administer the program.

      4.  The Division shall administer the program established to increase the efficiency with which energy is used in dwellings owned or occupied by persons of low income pursuant to 42 U.S.C. §§ 6861 et seq.

      (Added to NRS by 1987, 1352; A 1991, 1639; 1997, 2612)

      NRS 319.147  Certification of assisted living facilities: Requirements; regulations.

      1.  The Division shall certify an assisted living facility 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 if the facility:

      (a) Provides assisted living supportive services to senior citizens of low or moderate income;

      (b) Provides or arranges for the provision of case management services for its residents;

      (c) Guarantees affordable housing for a period of at least 15 years after the facility is certified;

      (d) Is financed through tax credits relating to low-income housing or other public funds; and

      (e) Satisfies any other requirements set forth by the Division in any regulations adopted by the Division.

      2.  The Division shall adopt regulations concerning the certification of assisted living facilities pursuant to this section.

      3.  As used in this section:

      (a) “Assisted living facility” has the meaning ascribed to it in paragraph (a) of subsection 3 of NRS 422.2708.

      (b) “Assisted living supportive services” has the meaning ascribed to it in paragraph (b) of subsection 3 of NRS 422.2708.

      (Added to NRS by 2005, 922)

      NRS 319.167  Division may enter into instruments, agreements and other transactions for certain purposes.

      1.  Upon the approval of the State Board of Finance, the Division may enter into instruments, agreements and other such transactions for one or more of the following purposes:

      (a) Reducing or modifying the amount or duration of any payment, interest rate, spread or similar risk;

      (b) Lowering the cost of borrowing when used in combination with the issuance or carrying of bonds or investments; or

      (c) Enhancing the relationship between risk and return with respect to the programs of the Division for lending or investment or any portion thereof.

      2.  In entering into such instruments, agreements or other such transactions, the Division shall consider the creditworthiness of the counterparties and other relevant criteria relating to the objectives of the programs of the Division.

      (Added to NRS by 2001, 2120; A 2003, 2194; 2009, 650)

      NRS 319.170  Funds and accounts; investments and deposits.  Except as otherwise provided in NRS 319.500, the Division may:

      1.  Establish such funds or accounts as may be necessary or desirable for furtherance of the purposes of this chapter.

      2.  Invest or deposit its money, subject to any agreement with bondholders or noteholders, and is not required to keep any of its money in the State Treasury. The provisions of chapters 355 and 356 of NRS do not apply to such investments or deposits.

      (Added to NRS by 1975, 628; A 1989, 1214)

      NRS 319.171  Investment in collateralized mortgage obligations or trusts.  Except as otherwise provided in NRS 319.500, the Division may invest its money in collateralized mortgage obligations or in trusts created to finance, acquire or invest in collateralized mortgage obligations if the collateralized mortgage obligations or trusts so created are:

      1.  In furtherance of the purposes of the Division; and

      2.  Rated within one of the top three rating categories of a national rating service at the time the investment is made.

      (Added to NRS by 1987, 1351; A 1989, 1215)

      NRS 319.172  Authority to make loans of investment securities.

      1.  The Division may lend any securities in which it invests pursuant to NRS 319.170 if the Division receives collateral from the borrower in the form of cash or marketable securities that are:

      (a) Acceptable to the Division; and

      (b) At least 102 percent of the value of the securities borrowed.

      2.  The Division may enter into such contracts as are necessary to extend and manage loans pursuant to this section.

      (Added to NRS by 1999, 927)

      NRS 319.173  Advisory Committee on Housing: Creation; members; meetings; submission and review of work plan; duties.

      1.  There is hereby created an Advisory Committee on Housing to review and provide to the Director of the Department of Business and Industry and the Administrator advice, recommendations and other commentary regarding:

      (a) The investment of money or issuance of obligations by the Division.

      (b) The development of new programs or the improvement of existing programs of the Division.

      (c) The improvement of policies and procedures of the Division, including those relating to the dissemination of relevant information to persons who participate in or are otherwise interested in programs of the Division.

      (d) The administration of the Account for Low-Income Housing.

      (e) Any other matters referred to the Advisory Committee by the Director or Administrator.

      2.  The Advisory Committee consists of the Director of the Department of Business and Industry or his or her representative, and eight members appointed by the Director. The Director shall appoint to the Advisory Committee:

      (a) One representative of an association of mortgage bankers in this State, selected from a list of names submitted to the Director by that association.

      (b) One representative of persons engaged in residential construction in this State.

      (c) One representative of banks or savings and loan associations in this State who is knowledgeable about making mortgage loans.

      (d) One member who is knowledgeable about the sale and marketing or the management of real property in this State.

      (e) One member who is knowledgeable about the development or management of nonprofit housing in this State.

      (f) One member who is knowledgeable about housing programs sponsored, administered or supported by local governments in this State.

      (g) One member who is knowledgeable about federal housing programs administered by the Division.

      (h) One member who is an advocate of affordable housing.

Ê The members of the Advisory Committee are not entitled to any additional compensation for their service in that capacity.

      3.  The Director of the Department of Business and Industry or his or her representative shall serve as the Chair of the Advisory Committee. The Advisory Committee shall meet at least once each calendar quarter, and at the call of the Chair or upon the written request of the Administrator or a majority of the members of the Committee.

      4.  The Administrator shall submit annually to the Advisory Committee for its review, comment and recommendations a work plan for the activities of the Division for the succeeding calendar year. The work plan must include:

      (a) The expected needs for financing and anticipated demand for tax credits and sources of funding for each of the programs administered by the Division.

      (b) Strategies for meeting those needs and demands.

      (c) A plan for resolving any anticipated problems in carrying out those strategies.

      (d) A plan for the allocation of the resources of the Division, including the allotment of its employees’ time, to carry out the work plan in such a manner as to serve the entire area of the State adequately.

      (e) Any other matters which are critical to the success of any programs administered by the Division.

      5.  Before the:

      (a) Investment of money of the Division pursuant to NRS 319.171; or

      (b) Submission of findings to the State Board of Finance pursuant to subsection 4 of NRS 319.323,

Ê the Administrator shall submit a plan of investment or a plan of financing, together with any proposed findings relating to that plan, to the Advisory Committee for its review and comment.

      6.  The Administrator shall report to the Advisory Committee at least once each calendar quarter on the activities of the Division and the implementation of the Division’s work plan for that year.

      (Added to NRS by 1987, 1352; A 1995, 2707)

      NRS 319.190  Authority to make loans and issue letters of credit.

      1.  The Division may make, undertake commitments to make and participate with lending institutions in the making of mortgage loans and may make temporary loans and advances in anticipation of mortgage loans to finance the acquisition, construction, development, renewal, redevelopment, rehabilitation or refinancing of residential housing, including, without limitation, multifamily housing, within this state.

      2.  The Division may issue letters of credit to finance the acquisition, construction, development, renewal, redevelopment, rehabilitation or refinancing of residential housing, including, without limitation, multifamily housing, within this state if, at the time a letter of credit is issued, the Division has a credit rating within one of the three highest rating categories of a nationally recognized rating agency.

      (Added to NRS by 1975, 628; A 1977, 195; 1987, 1354; 1991, 214; 2001, 2121; 2003, 2192, 2194; 2009, 650)

      NRS 319.200  Terms and conditions of mortgage loan.  Any mortgage loan made by the Division must be secured in such manner, be repaid in such period and bear interest at such rate or rates as are determined by the Division.

      (Added to NRS by 1975, 628; A 2001, 2122; 2003, 2194; 2009, 650)

      NRS 319.210  Investment in mortgages.

      1.  The Division may:

      (a) Invest in, purchase or make commitments to purchase, and take assignments from lending institutions of mortgage loans and promissory notes accompanying such mortgage loans, including mortgage loans or participations with lending institutions in such promissory notes and mortgage loans, for the construction, rehabilitation, purchase, leasing or refinancing of residential housing within this state.

      (b) Sell, at public or private sale, with or without public bidding, any mortgage or other obligation held by the Division.

      2.  At or before the time of purchase, the lending institution shall certify to the Division with respect to all mortgage loans transferred to the Division:

      (a) That the mortgage loans transferred to the Division are for residential housing for eligible families within this state; or

      (b) That the proceeds of sale or its equivalent will be reinvested in mortgage loans for residential housing for eligible families within this state in an aggregate principal amount equal to the amount of such sale proceeds.

      (Added to NRS by 1975, 628; A 2001, 2122; 2003, 2194; 2009, 650)

      NRS 319.220  Mortgages in default: Foreclosure; modification of terms.  The Division may:

      1.  Renegotiate, refinance or foreclose, or contract for the foreclosure of, any mortgage in default;

      2.  Waive any default or consent to the modification of the terms of any mortgage;

      3.  Commence any action to protect or enforce any right conferred upon it by any law, mortgage, contract or other agreement;

      4.  Bid for and purchase property upon which it holds a mortgage at any foreclosure or at any other sale, or acquire and take possession of any such property;

      5.  Operate, manage, lease, dispose of and otherwise deal with such property in such manner as may be necessary to protect the interest of the Division and the holders of its bonds, notes and other obligations; and

      6.  Consent to any modification with respect to rate of interest, time and payment of any installment of principal or interest, security or any other term of any contract, mortgage, mortgage loan, mortgage loan commitment, contract or agreement of any kind to which the Division is a party, subject to any agreement with bondholders or noteholders.

      (Added to NRS by 1975, 629)

      NRS 319.230  Loans to or purchase of securities from lending institutions; collateral.

      1.  The Division may:

      (a) Make loans to lending institutions under terms and conditions requiring the proceeds of the loans to be used by the lending institutions for the making of new mortgage loans for residential housing;

      (b) Purchase securities from lending institutions under terms and conditions requiring that the securities finance mortgage loans for residential housing;

      (c) Require that loans to or securities purchased from lending institutions be additionally secured as to payment of both principal and interest by a pledge of and lien upon collateral security in such amounts and consisting of such obligations, securities, and mortgage loans as the Administrator determines to be necessary to assure the payment of the loans or securities purchased and the interest on them as they become due.

      2.  The Division may require in the case of any lending institution that any required collateral be lodged with a bank or trust company, located either within or outside the State, designated by the Division as custodian therefor. In the absence of this requirement, a lending institution shall, if collateral is to be provided for the loan or securities purchased, upon receipt of the proceeds from the Division, enter into an agreement with the Division containing any provisions the Division deems necessary to identify adequately and maintain and service the collateral and providing that the lending institution shall hold the collateral as trustee for the benefit of the Division and shall be held accountable as the trustee of an express trust for the application and disposition thereof and the income therefrom solely to the uses and purposes in accordance with the provisions of the agreement. A copy of the agreement and any of its revisions or supplements, which revisions or supplements may add to, delete from, or substitute items of collateral pledged by the agreement, must be filed with the Secretary of State. The filing shall be deemed to perfect the security interest of the Division in the collateral and no filing, recording, possession or other action required under any other law of this state is necessary, and the lien and trust for the benefit of the Division so created is binding from the time made against all parties having any prior unperfected claim or claims of any kind in tort, contract or otherwise or any subsequent security interests against the lending institution. The Division may also establish any additional requirements the Administrator deems necessary with respect to the pledging, assigning, setting aside or holding of the collateral and the making of substitutions for it or additions to it and the disposition of income and receipts from it.

      3.  The Division may collect, enforce the collection of and foreclose on any collateral securing its loan to or purchase of securities from lending institutions and acquire or take possession of the collateral and sell the collateral at public or private sale, with or without public bidding, and otherwise deal with the collateral as may be necessary to protect the interest of the Division in it, all subject to any agreement with bondholders or noteholders.

      (Added to NRS by 1975, 629; A 1977, 195; 1979, 1187)

      NRS 319.235  Financing rental sites for mobile homes and equipment for conservation of energy in residential dwelling units.  The Division may finance, through the use of any power conferred on it by this chapter:

      1.  The acquisition and improvement of real property to be used for rental sites for mobile homes, whether or not the mobile homes are to be financed pursuant to this chapter; and

      2.  The purchase and installation of equipment and materials to be used in residential dwelling units for conservation of energy or for use of energy from alternative sources,

Ê and any related improvements appropriate to any of these purposes.

      (Added to NRS by 1981, 1664)

      NRS 319.240  Lending fees and charges.  The Division may charge and collect such fees and charges as the Division may establish from time to time for its lending and mortgage purchase programs.

      (Added to NRS by 1975, 630)

      NRS 319.250  Insurance.  The Division may procure insurance against any loss in connection with its property and other assets, including mortgages and mortgage loans, in such amounts and from such insurers as it deems desirable.

      (Added to NRS by 1975, 630)

      NRS 319.260  Prerequisites to financing residential housing.  The Division shall not finance any residential housing unless, prior to such financing, the Administrator finds that:

      1.  There exists a shortage of decent, safe and sanitary housing at rentals or prices which eligible families can afford within the general housing market area as determined by the Administrator.

      2.  Private enterprise and investment have been unable, without assistance, to provide an adequate supply of decent, safe and sanitary housing in such housing market area at rentals or prices which persons or families of low and moderate income can afford or to provide sufficient mortgage financing for residential housing for occupancy by such persons or families.

      3.  The proposed residential housing will increase the supply or improve the quality of decent, safe and sanitary housing for eligible families.

      4.  The residential housing to be developed or assisted by the Division pursuant to the provisions of this chapter will be of public use and will provide a public benefit.

      5.  The Division’s estimates of its revenues from the financing of the residential housing, together with all subsidies, grants or other financial assistance from governmental agencies or other entities to be received in connection with the residential housing, will be sufficient to pay the amount estimated by the Division as necessary for debt service on its notes and bonds to be issued for the financing of the residential housing.

      (Added to NRS by 1975, 630)

      NRS 319.265  Requirements for regulations adopted by Division that establish program for financing certain residential housing projects.

      1.  If the Division adopts regulations which establish a program for the financing of projects, the regulations must not include any provision which restricts or requires the deferral of more than 60 percent of the payment of profits and overhead to a developer of a project that is:

      (a) Constructed, developed, financed or insured in whole or in part through any program established by the United States Department of Housing and Urban Development; and

      (b) Secured by a performance bond,

Ê except that such regulations may establish the maximum amount of pro forma profit and overhead for a developer of a project as a percentage of the appraised value of the project.

      2.  As used in this section, “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 which is 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.

      (Added to NRS by 2009, 606)

      NRS 319.267  Duty of certain owners of residential housing to submit quarterly report to Aging and Disability Services Division of Department of Health and Human Services.

      1.  If an owner of residential housing that is offered for rent or lease in this State and is:

      (a) Accessible to persons with disabilities; or

      (b) Affordable housing,

Ê has received any loan, grant or contribution for the residential housing from the Federal Government, the State or any public body, the owner shall, not less than quarterly, report to the Aging and Disability Services Division of the Department of Health and Human Services information concerning each unit of the residential housing that is available and suitable for use by a person with a disability.

      2.  The Department of Health and Human Services shall adopt regulations to carry out the provisions of this section.

      3.  As used in this section, “affordable housing” has the meaning ascribed to it in NRS 278.0105.

      (Added to NRS by 2009, 540)

ISSUANCE OF NOTES, BONDS AND OTHER OBLIGATIONS

      NRS 319.270  Notes and bonds: Issuance; limitation on outstanding obligations.

      1.  Subject to the limitation imposed by subsections 4 and 5, the Division may issue its negotiable notes and bonds in such principal amount as the Administrator determines to be necessary to provide sufficient money for achieving any of its statutory purposes, including the payment of interest on notes and bonds of the Division, establishment of bond reserve funds and other reserves to secure the notes and bonds, and all other expenditures of the Division necessary or convenient to carry out its statutory purposes and powers.

      2.  Subject to any agreements with holders of notes or bonds, all notes and bonds issued by the Division are special obligations of the Division payable out of any revenues, money or other assets of the Division pledged thereto.

      3.  In issuing the notes and bonds, the Division acts as an agency or instrumentality of the State of Nevada.

      4.  Before any notes or bonds may be issued pursuant to this section, except those issued for the purpose of refunding outstanding notes or bonds, the Administrator must submit a copy of his or her finding of the conditions prerequisite to the financing of residential housing under this chapter to the State Board of Finance. If that Board approves, the Division may proceed to issue its notes or bonds in the amount approved, subject to the further limitation of subsection 5.

      5.  The aggregate principal amount of outstanding bonds, notes and other obligations of the Division must not exceed $5,000,000,000, of which $100,000,000 must be allocated to veterans who qualify for loans under this chapter, exclusive of any bonds, notes or obligations which have been refunded or which were issued at a time when the Division had a credit rating within one of the three highest rating categories of a nationally recognized rating agency. The establishment of this debt limitation does not prohibit the Division from issuing additional bonds, notes or other obligations if the debt limitation is subsequently increased.

      (Added to NRS by 1975, 631; A 1977, 196; 1979, 1188; 1981, 877; 1985, 46; 1999, 959; 2003, 2193)

      NRS 319.280  Notes and bonds: Execution; terms; chapter 349 of NRS inapplicable.

      1.  The notes and bonds must be signed by the Administrator, who may use a facsimile signature for this purpose, must bear the date or dates and must mature at such a time or times as the Administrator determines. The bonds may be issued as serial bonds payable in annual installments or as term bonds or as a combination thereof. The notes and bonds must bear interest at such a rate or rates, be in such denominations, have such registration privileges, be executed in such a manner, be payable in such a medium of payment, at such a place or places within or outside of the State, and be subject to such terms of redemption as the Administrator determines. The notes and bonds of the Division may be sold by the Division at public or private sale at such a price or prices as the Administrator determines except that no note, bond or other obligation issued by the Division may be initially distributed to the public unless it has received a rating in one of the three highest rating categories from a national rating service.

      2.  If the Administrator whose signature appears on any notes or bonds or coupons ceases to act in that capacity before the delivery of the notes or bonds, the signature of the Administrator is valid and sufficient for all purposes as if the Administrator had remained in office until their delivery.

      3.  The provisions of chapter 349 of NRS do not apply to any bonds, notes or other obligations issued by the Division under the provisions of this chapter.

      (Added to NRS by 1975, 631; A 1979, 1189; 1987, 1354)

      NRS 319.290  Notes and bonds: Pledges as security.  The Division in issuing any notes or bonds may contract with the holders thereof as to:

      1.  Pledging all or any part of the revenues of the Division to secure the payment of the notes or bonds subject to such agreements with noteholders or bondholders as may then exist.

      2.  Pledging all or any part of the assets of the Division, including mortgages and obligations securing such assets, to secure the payment of the notes or bonds subject to such agreements with noteholders or bondholders as may then exist.

      3.  The use and disposition of the gross income from mortgages owned by the Division and the payment of principal of mortgages owned by the Division.

      4.  The setting aside of reserves or sinking funds and the regulation and disposition thereof.

      5.  Limitations on the purpose to which the proceeds of sale of notes or bonds may be applied and pledging such proceeds to secure the payment of the notes or bonds or of any issue thereof.

      6.  Limitations on the issuance of additional notes or bonds, the terms upon which additional notes or bonds may be issued and secured, and the refunding of outstanding or other notes or bonds.

      7.  The procedure, if any, by which the terms of any contract with noteholders or bondholders may be amended or abrogated, the amount of notes or bonds the holders of which must consent thereto, and the manner in which such consent may be given.

      8.  Limitations on the amount of moneys to be expended by the Division for operating expenses of the Division.

      9.  Vesting in a trustee or trustees such property, rights, powers and duties in trust as the Administrator may determine, which may include any or all of the rights, powers and duties of the trustee appointed by the bondholders pursuant to this chapter and limiting or abrogating the right of the bondholders to appoint a trustee under this act or limiting the rights, powers and duties of such trustee.

      10.  Defining the acts or omissions which shall constitute a default in the obligations and duties of the Division to the holders of the notes or bonds and providing for the rights and remedies of the holders of the notes or bonds in case of such default, including as a matter of right the appointment of a receiver, but such rights and remedies shall not be inconsistent with the general laws of this state and the other provisions of this chapter.

      11.  Any other matters, of like or different character, which in any way affect the security or protection of the holders of the notes or bonds.

Ê Any pledge made by the Division is valid and binding from the time when the pledge is made. The revenues, moneys or property so pledged and thereafter received by the Division are immediately subject to the lien of such pledge without any physical delivery thereof or further act, and the lien of any such pledge is valid and binding as against all persons having claims of any kind in tort, contract or otherwise against the Division, whether or not such persons have notice thereof. Neither the proceedings of the Division relating to the bonds or notes nor any other instrument by which a pledge is created need be recorded.

      (Added to NRS by 1975, 631)

      NRS 319.300  Bonds: Trust indentures as security.  In the discretion of the Administrator, bonds issued by the Division may be secured by a trust indenture or trust indentures by and between the Division and a corporate trustee, which may be any trust company or bank having the power of a trust company within or outside this state. Such trust indenture may contain such provisions for protecting and enforcing the rights and remedies of the bondholders as may be reasonable and proper and not in violation of law, including covenants setting forth the duties of the Division in relation to the exercise of its statutory powers and the custody, safeguarding and application of all moneys. The Division may provide by such trust indenture for the payment of the proceeds of the bonds and the revenues to the trustee under such trust indenture or other depository, and for the method of disbursement thereof, with such safeguards and restrictions as the Administrator may determine. All expenses incurred in carrying out such trust indenture may be treated as part of the operating expenses of the Division. Such trust indenture may limit or abrogate the right of the holders of any bonds, notes or other obligations of the Division to appoint a trustee under this chapter or limit the rights, powers and duties of such trustee.

      (Added to NRS by 1975, 632)

      NRS 319.310  Notes and bonds: Guarantees of payment.  The Division may procure or agree to the procurement of insurance or guarantees from any governmental agency or from any private insurance company, of the payment of any bonds or notes or any other evidences of indebtedness thereof issued by the Division or by any lending institution, and may pay premiums on such insurance.

      (Added to NRS by 1975, 633)

      NRS 319.320  Notes and bonds: Redemption; remarketing or refunding.

      1.  The Division, subject to such agreements with noteholders or bondholders as may then exist, may, out of any money available therefor, purchase its notes or bonds to retire and cancel them. The price must not exceed:

      (a) The redemption price then applicable plus accrued interest to the next interest payment thereon if the notes or bonds are then redeemable; or

      (b) The redemption price applicable on the first date after the purchase upon which the notes or bonds become subject to redemption plus accrued interest to that date if the notes or bonds are not redeemable.

      2.  The Division may, in connection with any remarketing or refunding of its notes or bonds or for any of its purposes, acquire, or cause to be acquired, its notes or bonds without retiring and cancelling them.

      (Added to NRS by 1975, 633; A 1987, 1354)

      NRS 319.323  Issuance of collateralized mortgage obligations; use of proceeds; submission of findings to State Board of Finance.

      1.  The Division may, in addition to the notes and bonds authorized by NRS 319.270, issue from time to time its collateralized mortgage obligations or other negotiable notes, bonds or obligations which may be secured by collateral consisting of, otherwise secured in whole or in part by, or which may evidence loans or participations or other interests in loans or participations. Any money acquired from such an issuance must be applied by the Division to carry out its purposes.

      2.  Any such collateralized mortgage obligations or other notes, bonds or obligations are subject to the limitations of subsection 5 of NRS 319.270 to the extent they constitute a debt under generally accepted accounting principles.

      3.  Using the proceeds of collateralized mortgage obligations or other available money, the Division may purchase or otherwise acquire the loans or participations or other interests in loans or participations which are collateral for, secure or evidence or are evidenced by collateralized mortgage obligations or other notes, bonds or obligations issued by the Division pursuant to this section. Such loans may be secured by mortgages on real property outside of this state.

      4.  Before the issuance of any collateralized mortgage obligations or other bonds, notes or obligations pursuant to this section, the Administrator shall submit to the State Board of Finance a copy of his or her findings that:

      (a) The issuance of the obligation is in furtherance of the purposes of the Division; and

      (b) The estimate of the revenues and other amounts to be derived from such financing is sufficient to pay the amount estimated to be necessary for debt service on the collateralized mortgage obligations or other notes, bonds or obligations issued pursuant to this section.

Ê If that Board approves, the Division may proceed to issue such collateralized mortgage obligations or other notes, bonds or obligations in the amount approved.

      (Added to NRS by 1987, 1351)

      NRS 319.325  Division may provide that bonds, notes or loans be insured or secured; payment of costs associated with insurance.  The Division may:

      1.  Provide that any bonds or notes issued by the Division be insured or be secured by surety bonds, letters of credit not issued by the Division, guaranties or other means of assuring repayment of such bonds or notes.

      2.  Require that any loans, including a mortgage loan, made or purchased by the Division be insured or be secured by surety bonds, letters of credit not issued by the Division, guaranties or other means of assuring repayment of such loans.

      3.  Pay the fees, charges, premiums and any other costs associated with obtaining and maintaining insurance, or other means of assuring repayment, from any available money of the Division including premiums, fees and charges assessed against sponsors, lending institutions or other participants or beneficiaries of the programs of the Division.

      (Added to NRS by 1987, 1351; A 1991, 215)

      NRS 319.327  Exemption of interest on Division’s bonds from federal income taxation: Waiver; issuance of obligations not exempt from taxation.  The Division may:

      1.  Waive, by such means as the Division deems appropriate, any exemption from federal income taxation of interest on the division’s bonds, notes or other obligations provided by 26 U.S.C. §§ 103 and 141 to 149, inclusive, and related portions of the Internal Revenue Code or any succeeding code or other federal statute providing a similar exemption; or

      2.  Issue notes, bonds or other obligations, the interest on which is not exempt from federal income taxation or excluded from gross revenue for the purpose of federal income taxation, if necessary to carry out the purposes of this chapter.

      (Added to NRS by 1987, 1352)

      NRS 319.330  Refunding obligations: Issuance, sale and exchange.

      1.  The Division may issue refunding obligations to refund any obligations then outstanding which have been issued under the provisions of this chapter, including the payment of any redemption premium thereon and any interest accrued or to accrue to the date of redemption of the obligations and for any statutory purpose of the Division. The issuance of the obligations, the maturities and other details thereof, the rights of the holders thereof, and the rights, duties and obligations of the Division in respect to them are governed by the provisions of this chapter which relate to the issuance of original obligations insofar as appropriate.

      2.  Refunding obligations issued as provided in this section may be sold or exchanged for outstanding obligations issued under this chapter and, if they are sold, the proceeds thereof may be applied, in addition to any other authorized purposes, to the purchase, redemption or payment of the outstanding obligations. Pending the application of the proceeds of the refunding obligations, with any other available funds, to the purpose for which they are issued, the proceeds may be invested in direct obligations of, or obligations the principal of and the interest on which are unconditionally guaranteed by, the United States of America, or obligations of any agency or instrumentality of the United States, which mature or which are subject to redemption by the holders thereof, at the option of such holders, not later than the respective dates when the proceeds, together with the interest accruing thereon, will be required for the purposes intended.

      (Added to NRS by 1975, 633; A 1979, 1189)

      NRS 319.340  Bond reserve funds: Establishment; use; requirements.

      1.  The Division may establish one or more bond reserve funds, and shall pay into each such bond reserve fund:

      (a) Any money appropriated by the Legislature for the purpose of the fund;

      (b) Any proceeds of sale of notes or bonds to the extent provided in connection with the issuance thereof; and

      (c) Any other money which may be available to the Division for the purpose of the fund from any other source or sources.

Ê All money held in any bond reserve fund, except as otherwise expressly provided in this chapter, must be used, as required, solely for the payment of the principal of bonds secured in whole or in part by the fund or of the sinking fund payments with respect to such bonds, the purchase or redemption of such bonds, the payment of interest on such bonds or the payment of any redemption premium required to be paid when the bonds are redeemed before maturity.

      2.  Money in such a fund must not be withdrawn from the fund at any time in an amount that would reduce the amount of the fund below the requirement established for that fund, except to pay when due, with respect to bonds secured in whole or in part by that fund, principal, interest, redemption premiums and sinking fund payments for the payment of which other money of the Division is not available. Any income or interest earned by or incremental to any bond reserve fund resulting from the investment thereof may be transferred by the Division to other funds or accounts of the Division and to the Account for Low-Income Housing created pursuant to NRS 319.500, to the extent that the amount of that bond reserve fund is not reduced below the requirement for the fund.

      (Added to NRS by 1975, 634; A 1991, 215; 1993, 640)

      NRS 319.350  Bond reserve funds: Limitations.  The Division shall not at any time issue bonds, secured in whole or in part by a bond reserve fund, if upon the issuance of those bonds, the amount in that bond reserve fund will be less than the bond reserve fund requirement for that fund, unless the Division at the time of issuance of those bonds deposits in that fund from the proceeds of the bonds issued, or from other sources, an amount which, together with the amount then in that fund, will not be less than the bond reserve fund requirement for that fund. The bond reserve fund requirement, as of any particular date of computation, is an amount of money, specified in the proceedings of the Division authorizing the bonds with respect to which the fund is established, necessary to provide adequate reserves for debt service on the bonds.

      (Added to NRS by 1975, 634; A 1979, 1190)

      NRS 319.360  Bond reserve funds: Purpose; status reports.  The provision of bond reserve fund requirements is designed to assure the continued operation and solvency of the Division for the carrying out of its statutory purposes. The Administrator shall, on or before the date of convening of any regular session of the Nevada Legislature, make and deliver to the Governor, the President of the Senate and the Speaker of the Assembly his or her report giving the status of this fund.

      (Added to NRS by 1975, 635)

      NRS 319.370  Remedies of bondholders and noteholders.

      1.  If the Division defaults in the payment of principal of or interest on any bonds or notes issued under this chapter after it is due, whether at maturity or upon call for redemption, and such default continues for a period of 30 days, or if the Division fails or refuses to comply with the provisions of this chapter or defaults in any agreement made with the holders of an issue of its bonds or notes, the holders of 25 percent in aggregate principal amount of the bonds or notes of such issue then outstanding, by instrument or instruments filed in the Office of the Secretary of State and proved or acknowledged in the same manner as a deed to be recorded, may appoint a trustee to represent the holders of such bonds or notes for the purposes provided in this section.

      2.  The trustee may, and upon written request of the holders of 25 percent in principal amount of such bonds or notes then outstanding shall, in his, her or its own name:

      (a) Enforce the right of the bondholders or noteholders to require the Division to collect interest and amortization payments on the mortgages held by it adequate to carry out any agreement as to, or pledge of, such interest and amortization payments, and to require the Division to carry out any other agreements with the holders of such bonds or notes and to perform its duties under this act.

      (b) Enforce the right of the bondholders or noteholders to collect and enforce the payment of principal of and interest due or becoming due on loans to lending institutions and collect and enforce any rights in respect to collateral securing such loans or sell such collateral, so as to carry out any contract as to, or pledge of revenues, and to require the Division to carry out any contract as to, or pledge of revenues, and to require the Division to perform its duties under this chapter.

      (c) Bring suit upon all or any part of such bonds or notes.

      (d) By civil action, require the agency to account as if it were the trustee of an express trust for the holders of such bonds or notes.

      (e) By civil action, enjoin any acts or things which may be unlawful or in violation of the rights of the holders of such bonds or notes.

      (f) Declare all such bonds or notes due and payable, and if all defaults are made good then with the consent of the holders of 25 percent of the principal amount of such bonds or notes then outstanding, to annul such declaration and its consequences.

      (g) Enforce any other right of the bondholders or noteholders conferred by law or by the proceedings of the Division authorizing the issuance of the bonds or notes.

      3.  The trustee shall, in addition to the powers listed in subsection 2, have all the powers necessary or appropriate for the exercise of any functions specifically set forth in this section or incident to the general representation of bondholders or noteholders in the enforcement and protection of their rights.

      4.  Before declaring the principal of bonds or notes due and payable, the trustee shall give 30 days’ notice in writing to the Governor, to the Administrator and to the Attorney General of this state.

      5.  The District Court of the First Judicial District has jurisdiction of any suit, action or proceeding by the trustee on behalf of bondholders or noteholders.

      (Added to NRS by 1975, 635)

      NRS 319.380  Pledge against impairment of holders’ rights and remedies; credit of State not pledged.

      1.  The State of Nevada hereby pledges to and agrees with the holders of any notes or bonds issued under this chapter that the State will not limit or alter the rights vested in the Division by this chapter to fulfill the terms of any agreements made with such holders or in any way impair the rights and remedies of such holders until such notes and bonds, together with the interest thereon, with interest on any unpaid installments of interest, and all costs and expenses in connection with any action or proceeding by or on behalf of such holders, are fully met and discharged. The Division may include this pledge and agreement of the State in any agreement with the holders of such notes or bonds.

      2.  Obligations issued under the provisions of this chapter, including letters of credit issued by the Division, do not constitute a debt, liability or obligation of this state or of any political subdivision thereof, or a pledge of the faith and credit of this state or of any political subdivision thereof, but are payable solely from the revenues or assets of the Division. Each obligation, including a letter of credit, issued under this chapter must contain on the face thereof a statement to the effect that the Division is not obligated to pay the obligation or the interest thereon except from the revenues or assets pledged therefor and that neither the faith and credit nor the taxing power of this state or of any political subdivision thereof is pledged to the payment of the principal of or the interest on the obligation.

      (Added to NRS by 1975, 636; A 1991, 215)

      NRS 319.390  Notes and bonds as legal investments.

      1.  The notes and bonds of the Division are legal investments in which all public officers and public bodies of the State, its political subdivisions, all municipalities and municipal subdivisions, all insurance companies and associations and other persons carrying on an insurance business, all banks, savings and loan associations and trust companies, all administrators, guardians, executors, trustees and other fiduciaries, and all other persons who are authorized on or after July 1, 1975, to invest in bonds or in other obligations of this state, may properly and legally invest funds, including capital, in their control or belonging to them. The notes and bonds are securities which may properly and legally be deposited with and received by all public officers and public bodies of the State or any agency or political subdivision of the State and all municipalities and public corporations for any purpose for which the deposit of bonds or other obligations of this state is authorized by law on and after July 1, 1975, and may be used as collateral to secure any deposit of public moneys.

      2.  The notes and bonds of the Division are securities within the meaning of the Uniform Commercial Code—Investment Securities.

      (Added to NRS by 1975, 636)

ACCOUNT FOR LOW-INCOME HOUSING

      NRS 319.500  Creation; investment of money; claims.

      1.  There is hereby created in the State General Fund the Account for Low-Income Housing, to be administered by the Division. All money that is collected for the use of the Account from any source, including pursuant to a specific statute, tax, legislative appropriation, gift or grant, or from interest earned on specified public or private accounts, must be deposited in the Account.

      2.  The money in the Account must be invested as provided in chapters 355 and 356 of NRS. The interest and income earned on the money in the Account, after deducting any applicable charges, must be credited to the Account. All claims against the Account must be paid as other claims against the State are paid.

      (Added to NRS by 1989, 1211; A 1993, 641)

      NRS 319.510  Use and distribution of money in Account.

      1.  Money deposited in the Account for Low-Income Housing must be used:

      (a) For the acquisition, construction or rehabilitation of housing for eligible families by public or private nonprofit charitable organizations, housing authorities or local governments through loans, grants or subsidies;

      (b) To provide technical and financial assistance to public or private nonprofit charitable organizations, housing authorities and local governments for the acquisition, construction or rehabilitation of housing for eligible families;

      (c) To provide funding for projects of public or private nonprofit charitable organizations, housing authorities or local governments that provide assistance to or guarantee the payment of rent or deposits as security for rent for eligible families, including homeless persons;

      (d) To reimburse the Division for the costs of administering the Account; and

      (e) In any other manner consistent with this section to assist eligible families in obtaining or keeping housing, including use as the State’s contribution to facilitate the receipt of related federal money.

      2.  Except as otherwise provided in this subsection, the Division may expend money from the Account as reimbursement for the necessary costs of efficiently administering the Account and any money received pursuant to 42 U.S.C. §§ 12701 et seq. In no case may the Division expend more than $40,000 per year or an amount equal to 6 percent of any money made available to the State pursuant to 42 U.S.C. §§ 12701 et seq., whichever is greater. In addition, the Division may expend not more than $175,000 per year from the Account to create and maintain the statewide low-income housing database required by NRS 319.143. Of the remaining money allocated from the Account:

      (a) Except as otherwise provided in subsection 3, 15 percent must be distributed to the Division of Welfare and Supportive Services of the Department of Health and Human Services for use in its program developed pursuant to 45 C.F.R. § 233.120 to provide emergency assistance to needy families with children, subject to the following:

             (1) The Division of Welfare and Supportive Services shall adopt regulations governing the use of the money that are consistent with the provisions of this section.

             (2) The money must be used solely for activities relating to low-income housing that are consistent with the provisions of this section.

             (3) The money must be made available to families that have children and whose income is at or below the federally designated level signifying poverty.

             (4) All money provided by the Federal Government to match the money distributed to the Division of Welfare and Supportive Services pursuant to this section must be expended for activities consistent with the provisions of this section.

      (b) Eighty-five percent must be distributed to public or private nonprofit charitable organizations, housing authorities and local governments for the acquisition, construction and rehabilitation of housing for eligible families, subject to the following:

             (1) Priority must be given to those projects that qualify for the federal tax credit relating to low-income housing.

             (2) Priority must be given to those projects that anticipate receiving federal money to match the state money distributed to them.

             (3) Priority must be given to those projects that have the commitment of a local government to provide assistance to them.

             (4) All money must be used to benefit families whose income does not exceed 60 percent of the median income for families residing in the same county, as defined by the United States Department of Housing and Urban Development.

             (5) Not less than 15 percent of the units acquired, constructed or rehabilitated must be affordable to persons whose income is at or below the federally designated level signifying poverty. For the purposes of this subparagraph, a unit is affordable if a family does not have to pay more than 30 percent of its gross income for housing costs, including both utility and mortgage or rental costs.

             (6) To be eligible to receive money pursuant to this paragraph, a project must be sponsored by a local government.

      3.  The Division may, pursuant to contract and in lieu of distributing money to the Division of Welfare and Supportive Services pursuant to paragraph (a) of subsection 2, distribute any amount of that money to private or public nonprofit entities for use consistent with the provisions of this section.

      (Added to NRS by 1989, 1211; A 1991, 1639; 1993, 641; 2009, 540)

      NRS 319.520  Regulations concerning distribution and use of money in Account; requirements for recipient of money.

      1.  The Administrator shall consult with representatives of housing authorities, organizations of persons with low income, providers of housing, financial institutions and other persons interested in the provision of low-income housing, and adopt regulations establishing:

      (a) Criteria for the distribution and use of money from the Account for Low-Income Housing; and

      (b) Procedures for the Division and the local governments that receive money pursuant to NRS 319.510 to monitor the use of money from the Account and to enforce the provisions of this section and NRS 319.500 and 319.510.

Ê The regulations must be designed to maximize the efficient use of money in the Account and to promote the participation and assistance of local governments.

      2.  A recipient of money from the Account shall comply with the regulations of the Administrator and provide such reports to the Division and the local governments that receive money pursuant to NRS 319.510 upon the use of the money as the Administrator requires.

      (Added to NRS by 1989, 1213; A 1993, 642)

UNLAWFUL ACTS

      NRS 319.900  False statements; penalty.  Any person who knowingly makes or causes to be made, either directly or indirectly, or through any agency whatsoever, any false statement in writing concerning an applicant’s income, employment, financial position, the size of the applicant’s family, the intent of the applicant to occupy premises as his or her primary residence or the cost of the residence, with intent that the statement be relied upon for the purpose of obtaining financial assistance from the Division is guilty of a gross misdemeanor.

      (Added to NRS by 1981, 877; A 1989, 1215)—(Substituted in revision for NRS 319.400)