2005 Nevada Revised Statutes - Chapter 279A — Rehabilitation of Property in Residential Neighborhoods

CHAPTER 279A - REHABILITATION OF PROPERTYIN RESIDENTIAL NEIGHBORHOODS

NRS 279A.010 Legislativefindings and declarations.

NRS 279A.020 Definitions.

NRS 279A.030 Countyor city may establish program; contents of ordinance.

NRS 279A.040 Loanfor rehabilitation: Qualifications.

NRS 279A.050 Loanfor rehabilitation: Duties of agency.

NRS 279A.060 Loanfor rehabilitation: Evidenced by promissory note; agreement between county orcity and natural person or organization to whom loan is made.

NRS 279A.070 Dutiesof natural person or organization to whom loan is made; deferment of repaymentof loan.

NRS 279A.080 Agencyto provide advice and technical assistance; access to property required;deficiencies in maintenance of property.

NRS 279A.090 Depositof payments in fund; availability of money for future loans.

NRS 279A.100 Preferenceto applicants with low income and applicants that are organizations which servenatural persons with low income; conditions.

NRS 279A.110 Powersof governing body.

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NRS 279A.010 Legislativefindings and declarations. The Legislaturehereby finds and declares that:

1. There exists within the urban areas of this State alarge number of deteriorated, substandard and unsanitary residential propertiesbecause of the inability of their owners, for whatever reason, to pay for theirrepair and maintenance;

2. These properties are a threat not only to thehealth, safety and well-being of the persons who occupy them but also toneighboring persons and property;

3. There is also a shortage of decent, safe andaffordable housing for persons of low or moderate income and the counties andcities of this State have an obligation to encourage persons who ownresidential property to maintain that property in a decent, safe and sanitarycondition;

4. It is in the public interest to encourage thepreservation and maintenance of housing in this State for persons of low ormoderate 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 lawgranting to a county or city the authority to:

(a) Develop affordable housing; and

(b) Rehabilitate residential neighborhoods andindividual properties within those neighborhoods.

(Added to NRS by 1987, 2203; A 2005, 1302)

NRS 279A.020 Definitions. As used in this chapter, unless the context otherwiserequires:

1. Agency means an agency of a county or cityestablished or designated to administer a program.

2. Fund means a revolving fund for loans for therehabilitation of residential property.

3. Governing body means the governing body of acounty or city.

4. Program means a program for the rehabilitation ofresidential neighborhoods established by a governing body pursuant to thischapter.

5. Rehabilitation includes structural improvements,landscaping and any other measure to improve the appearance of property ormaintain property in a decent, safe and sanitary condition.

(Added to NRS by 1987, 2203)

NRS 279A.030 Countyor city may establish program; contents of ordinance.

1. The governing body of a county or city may adopt anordinance establishing a program for the rehabilitation of residentialneighborhoods in that county or city.

2. The ordinance must contain provisions:

(a) Establishing an agency, or designating an existingagency, of the county or city to administer the program.

(b) Creating a revolving fund for loans for therehabilitation of residential property and designating the amount of theoriginal allocation of money by the governing body for the fund.

(c) Providing the criteria and procedures for allocatingadditional money to the fund.

(d) Providing the maximum amount of a loan from thefund and the period and rate of interest of each loan.

(e) Setting forth the criteria for determining theeligibility of an applicant for a loan and of property for rehabilitation.

(f) Setting forth that, with respect to a residentialproperty rehabilitated pursuant to this chapter, the monthly mortgage paymentor monthly rent, as applicable, must not, during the term of any loan madepursuant to this chapter, exceed 50 percent of the gross monthly income of thehousehold occupying the residential property.

(g) Establishing such other requirements forparticipation in the program as the governing body considers necessary.

(Added to NRS by 1987, 2204; A 2005, 1303)

NRS 279A.040 Loanfor rehabilitation: Qualifications.

1. An applicant for a loan for the rehabilitation ofresidential property must, at the time application is made:

(a) Be a natural person who:

(1) Is a resident of or an owner of residentialproperty in the city or an unincorporated area of the county, as the case maybe;

(2) Is a member of a household having a grossincome of less than 80 percent of the median gross income for households of thesame size residing in the same county or city, as applicable, as thatpercentage is defined by the United States Department of Housing and UrbanDevelopment, or rents residential property to such households;

(3) Owns and resides on or rents for residentialpurposes only the property for which the loan is sought;

(4) Has the financial resources to repay theloan in accordance with the terms of the agreement;

(5) Has the ability to complete therehabilitation within a reasonable time and maintain the property in a decent,safe and sanitary condition; and

(6) Meets such other requirements as are imposedby the governing body; or

(b) Be an organization that:

(1) Is recognized as exempt pursuant to 26U.S.C. 501(c)(3) or 501(c)(4);

(2) Provides affordable housing to naturalpersons who meet the criteria set forth in subparagraphs (1) and (2) ofparagraph (a); and

(3) Has the financial resources to repay theloan in accordance with the terms of the agreement.

2. Any residential property for which a loan forrehabilitation is sought must be:

(a) Entirely situated within the boundaries of the cityor 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.

(Added to NRS by 1987, 2204; A 2005, 1303)

NRS 279A.050 Loanfor rehabilitation: Duties of agency.

1. Upon receiving an application for a loan for therehabilitation of residential property, the agency shall:

(a) Inspect the property to determine if rehabilitationof the property is feasible; and

(b) Determine the amount of the loan that the conditionof the property justifies.

2. After inspection of the property, the agency shallinterview the applicant or, if the applicant is an organization described inparagraph (b) of subsection 1 of NRS279A.040, the representative of the organization, to determine if theapplicant satisfies the criteria for eligibility for a loan and, if theapplicant satisfies those criteria, the amount, terms and conditions of theloan.

3. The agency shall recommend to the governing bodythe amount of the loan, if any, and the terms and conditions of the loan.

(Added to NRS by 1987, 2204; A 2005, 1304)

NRS 279A.060 Loanfor rehabilitation: Evidenced by promissory note; agreement between county orcity 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 principalamount of which must be equal to the amount of the loan, secured by a mortgageon the property; and

2. Made pursuant to an agreement between the county orcity and the natural person or organization to whom the loan is made,identifying the property, specifying the amount and period of, and rate ofinterest on, the loan and providing that:

(a) The property must be rehabilitated for decent, safeand sanitary residential use; and

(b) The rehabilitation must begin and be completedwithin a period determined by the governing body.

(Added to NRS by 1987, 2205; A 2005, 1304)

NRS 279A.070 Dutiesof natural person or organization to whom loan is made; deferment of repaymentof loan.

1. A natural person to whom a loan is made pursuant tothis chapter shall:

(a) Maintain the property in a decent, safe andsanitary condition; and

(b) Reside, or have a member of his family reside, onthe property.

2. An organization to which a loan is made pursuant tothis chapter shall maintain the property in a decent, safe and sanitarycondition.

3. If the natural person or organization to whom aloan 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 ofthe loan until the sale of the rehabilitated property.

(Added to NRS by 1987, 2205; A 2005, 1305)

NRS 279A.080 Agencyto provide advice and technical assistance; access to property required;deficiencies in maintenance of property.

1. During the rehabilitation of the property, theagency shall provide such advice and technical assistance as may be reasonablyrequested.

2. The owner of the property shall permitrepresentatives of the agency, the governing body and, if state or federalassistance is involved, the State or Federal Government, to have access to theproperty during normal business hours to ensure compliance with this chapterand with the provisions of the loan and agreement for rehabilitation.

3. If the agency discovers deficiencies in themaintenance of the property during any inspection, it shall advise the owner ofthe property in the proper methods of correcting those deficiencies.

(Added to NRS by 1987, 2205)

NRS 279A.090 Depositof payments in fund; availability of money for future loans. The governing body shall deposit in the fund all moneyreceived in payment on a loan for the rehabilitation of residential propertyand make that money available for future loans.

(Added to NRS by 1987, 2205)

NRS 279A.100 Preferenceto applicants with low income and applicants that are organizations which servenatural persons with low income; conditions. Ifat any time the aggregate amount represented by pending applications from qualifiedapplicants for loans for the rehabilitation of residential property exceeds theamount available in the fund, the governing body shall give preference to:

1. Applicants who are members of households having agross income that is 50 percent or less of the median gross income forhouseholds of the same size within the same geographic area; and

2. Applicants that are organizations which servenatural persons described in subsection 1.

(Added to NRS by 1987, 2205; A 2005, 1305)

NRS 279A.110 Powersof governing body. The governing body may:

1. Contract directly with a contractor for the rehabilitationof the property of a qualified applicant.

2. Establish a panel of contractors who have agreed toprovide continuing maintenance at a discount to property rehabilitated pursuantto this chapter.

3. Use for the purposes of this chapter any money madeavailable to it for housing for persons having low or moderate incomes understate or federal law, if permitted by the terms of the state or federal law.

4. Accept gifts, grants, loans and bequests of moneyfor the purposes of this chapter.

(Added to NRS by 1987, 2206)