[Rev. 12/21/2019 11:27:30 AM--2019]
NRS 279A.010 Legislative findings and declarations.
NRS 279A.020 Definitions.
NRS 279A.030 County or city may establish program; contents of ordinance.
NRS 279A.040 Loan for rehabilitation: Qualifications.
NRS 279A.050 Loan for rehabilitation: Duties of agency.
NRS 279A.060 Loan for rehabilitation: Evidenced by promissory note; agreement between county or city and natural person or organization to whom loan is made.
NRS 279A.070 Duties of natural person or organization to whom loan is made; deferment of repayment of loan.
NRS 279A.080 Agency to provide advice and technical assistance; access to property required; deficiencies in maintenance of property.
NRS 279A.090 Deposit of payments in fund; availability of money for future loans.
NRS 279A.100 Preference to applicants with low income and applicants that are organizations which serve natural persons with low income; conditions.
NRS 279A.110 Powers of governing body.
1. There exists within the urban areas of this State a large number of deteriorated, substandard and unsanitary residential properties because of the inability of their owners, for whatever reason, to pay for their repair and maintenance;
2. These properties are a threat not only to the health, safety and well-being of the persons who occupy them but also to neighboring persons and property;
3. There is also a shortage of decent, safe and affordable housing for persons of low or moderate income and the counties and cities of this State have an obligation to encourage persons who own residential property to maintain that property in a decent, safe and sanitary condition;
4. It is in the public interest to encourage the preservation and maintenance of housing in this State for persons of low or moderate income, in order to improve their living conditions and, in doing so, to benefit the health, safety and welfare of the people of this State; and
5. The provisions of this chapter are in addition to, and do not abrogate or limit the application of, any other provisions of law granting to a county or city the authority to:
(a) Develop affordable housing; and
(b) Rehabilitate residential neighborhoods and individual properties within those neighborhoods.
1. “Affordable housing” has the meaning ascribed to it in NRS 278.0105.
2. “Agency” means an agency of a county or city established or designated to administer a program.
3. “Fund” means a revolving fund for loans for the rehabilitation of residential property.
4. “Governing body” means the governing body of a county or city.
5. “Program” means a program for the rehabilitation of residential neighborhoods established by a governing body pursuant to this chapter.
6. “Rehabilitation” includes structural improvements, landscaping and any other measure to improve the appearance of property or maintain property in a decent, safe and sanitary condition.
1. The governing body of a county or city may adopt an ordinance establishing a program for the rehabilitation of residential neighborhoods in that county or city.
2. The ordinance must contain provisions:
(a) Establishing an agency, or designating an existing agency, of the county or city to administer the program.
(b) Creating a revolving fund for loans for the rehabilitation of residential property and designating the amount of the original allocation of money by the governing body for the fund.
(c) Providing the criteria and procedures for allocating additional money to the fund.
(d) Providing the maximum amount of a loan from the fund and the period and rate of interest of each loan.
(e) Setting forth the criteria for determining the eligibility of an applicant for a loan and of property for rehabilitation.
(f) Setting forth that, with respect to a residential property rehabilitated pursuant to this chapter, the monthly mortgage payment or monthly rent, as applicable, must not, during the term of any loan made pursuant to this chapter, exceed 50 percent of the gross monthly income of the household occupying the residential property.
(g) Establishing such other requirements for participation in the program as the governing body considers necessary.
1. An applicant for a loan for the rehabilitation of residential property must, at the time application is made:
(a) Be a natural person who:
(1) Is a resident of or an owner of residential property in the city or an unincorporated area of the county, as the case may be;
(2) Is a member of a household having a gross income of less than 120 percent of the median gross income for households of the same size residing in the same county or city, as applicable, as that percentage is defined by the United States Department of Housing and Urban Development, or rents residential property to such households;
(3) Owns and resides on or rents for residential purposes only the property for which the loan is sought;
(4) Has the financial resources to repay the loan in accordance with the terms of the agreement;
(5) Has the ability to complete the rehabilitation within a reasonable time and maintain the property in a decent, safe and sanitary condition; and
(6) Meets such other requirements as are imposed by the governing body; or
(b) Be an organization that:
(1) Is recognized as exempt pursuant to 26 U.S.C. § 501(c)(3) or 501(c)(4);
(2) Provides affordable housing to natural persons who meet the criteria set forth in subparagraphs (1) and (2) of paragraph (a); and
(3) Has the financial resources to repay the loan in accordance with the terms of the agreement.
2. Any residential property for which a loan for rehabilitation is sought must be:
(a) Entirely situated within the boundaries of the city or within an unincorporated area of the county, as the case may be;
(b) Capable of rehabilitation within reasonable limits; and
(c) Subject to not more than two encumbrances.
1. Upon receiving an application for a loan for the rehabilitation of residential property, the agency shall:
(a) Inspect the property to determine if rehabilitation of the property is feasible; and
(b) Determine the amount of the loan that the condition of the property justifies.
2. After inspection of the property, the agency shall interview the applicant or, if the applicant is an organization described in paragraph (b) of subsection 1 of NRS 279A.040, the representative of the organization, to determine if the applicant satisfies the criteria for eligibility for a loan and, if the applicant satisfies those criteria, the amount, terms and conditions of the loan.
3. The agency shall recommend to the governing body the amount of the loan, if any, and the terms and conditions of the loan.
NRS 279A.060 Loan for rehabilitation: Evidenced by promissory note; agreement between county or city and natural person or organization to whom loan is made. If the governing body approves the application for a loan, the loan must be:
1. Evidenced by a promissory note, the principal amount of which must be equal to the amount of the loan, secured by a mortgage on the property; and
2. Made pursuant to an agreement between the county or city and the natural person or organization to whom the loan is made, identifying the property, specifying the amount and period of, and rate of interest on, the loan and providing that:
(a) The property must be rehabilitated for decent, safe and sanitary residential use; and
(b) The rehabilitation must begin and be completed within a period determined by the governing body.
1. A natural person to whom a loan is made pursuant to this chapter shall:
(a) Maintain the property in a decent, safe and sanitary condition; and
(b) Reside, or have a member of his or her family reside, on the property.
2. An organization to which a loan is made pursuant to this chapter shall maintain the property in a decent, safe and sanitary condition.
3. If the natural person or organization to whom a loan is made is unable to repay in accordance with the established schedule, the governing body may defer, upon good cause shown, repayment of the amount of the loan until the sale of the rehabilitated property.
1. During the rehabilitation of the property, the agency shall provide such advice and technical assistance as may be reasonably requested.
2. The owner of the property shall permit representatives of the agency, the governing body and, if state or federal assistance is involved, the State or Federal Government, to have access to the property during normal business hours to ensure compliance with this chapter and with the provisions of the loan and agreement for rehabilitation.
3. If the agency discovers deficiencies in the maintenance of the property during any inspection, it shall advise the owner of the property in the proper methods of correcting those deficiencies.
(Added to NRS by 1987, 2205)
NRS 279A.090 Deposit of payments in fund; availability of money for future loans. The governing body shall deposit in the fund all money received in payment on a loan for the rehabilitation of residential property and make that money available for future loans.
(Added to NRS by 1987, 2205)
NRS 279A.100 Preference to applicants with low income and applicants that are organizations which serve natural persons with low income; conditions. If at any time the aggregate amount represented by pending applications from qualified applicants for loans for the rehabilitation of residential property exceeds the amount available in the fund, the governing body shall give preference to:
1. Applicants who are members of households having a gross income that is 50 percent or less of the median gross income for households of the same size within the same geographic area; and
2. Applicants that are organizations which serve natural persons described in subsection 1.
1. Contract directly with a contractor for the rehabilitation of the property of a qualified applicant.
2. Establish a panel of contractors who have agreed to provide continuing maintenance at a discount to property rehabilitated pursuant to this chapter.
3. Use for the purposes of this chapter any money made available to it for housing for persons having low or moderate incomes under state or federal law, if permitted by the terms of the state or federal law.
4. Accept gifts, grants, loans and bequests of money for the purposes of this chapter.
(Added to NRS by 1987, 2206)