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2005 Nevada Revised Statutes - Chapter 319 — Assistance to Finance Housing

CHAPTER 319 - ASSISTANCE TO FINANCE HOUSING

GENERAL PROVISIONS

NRS 319.020 Legislativefindings and declaration; liberal construction.

NRS 319.030 Definitions.

NRS 319.040 Administratordefined.

NRS 319.045 Collateralizedmortgage obligation defined.

NRS 319.050 Divisiondefined.

NRS 319.060 Eligiblefamily defined.

NRS 319.070 Governmentalagency defined.

NRS 319.080 Insuredmortgage defined. [Effective July 1, 2009.]

NRS 319.090 Lendinginstitution defined.

NRS 319.100 Mortgagedefined.

NRS 319.110 Mortgageloan defined.

NRS 319.120 Realproperty defined.

NRS 319.130 Residentialhousing defined.

NRS 319.135 Sponsordefined.

NRS 319.140 Generalpowers and duties of Division; reports; audit; exemption from State PurchasingAct. [Effective through June 30, 2009.]

NRS 319.140 Generalpowers and duties of Division; reports; audit. [Effective July 1, 2009.]

NRS 319.145 Designationas housing credit agency; authority to administer HOME Investment PartnershipAct; duty to administer program to increase efficiency in use of energy indwellings owned or occupied by persons of low income.

NRS 319.147 Certificationof assisted living facilities: Requirements; regulations.

NRS 319.150 Contractsand other transactions; grants. [Effective July 1, 2009.]

NRS 319.160 Information,research and promotion. [Effective July 1, 2009.]

NRS 319.165 Divisionmay create instrumentalities to carry out purposes of chapter; notes, bonds orobligations subject to statutory requirements. [Effective July 1, 2009.]

NRS 319.167 Divisionmay enter into instruments, agreements and other transactions for certainpurposes. [Effective through June 30, 2009.]

NRS 319.170 Fundsand accounts; investments and deposits.

NRS 319.171 Investmentin collateralized mortgage obligations or trusts.

NRS 319.172 Authorityto make loans of investment securities.

NRS 319.173 AdvisoryCommittee on Housing: Creation; members; meetings; submission and review ofwork plan; duties.

NRS 319.175 Acquisitionand sale of land. [Effective July 1, 2009.]

NRS 319.180 Powersof Division as mortgagee. [Effective July 1, 2009.]

NRS 319.190 Authorityto make loans and issue letters of credit. [Effective through June 30, 2009.]

NRS 319.190 Authorityto make loans and issue letters of credit; limitations. [Effective July 1,2009.]

NRS 319.200 Termsand conditions of mortgage loan. [Effective through June 30, 2009.]

NRS 319.200 Termsand conditions of mortgage loan. [Effective July 1, 2009.]

NRS 319.210 Investmentin mortgages. [Effective through June 30, 2009.]

NRS 319.210 Investmentin mortgages. [Effective July 1, 2009.]

NRS 319.220 Mortgagesin default: Foreclosure; modification of terms.

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

NRS 319.235 Financingrental sites for mobile homes and equipment for conservation of energy inresidential dwelling units.

NRS 319.240 Lendingfees and charges.

NRS 319.250 Insurance.

NRS 319.260 Prerequisitesto financing residential housing.

ISSUANCE OF NOTES, BONDS AND OTHER OBLIGATIONS

NRS 319.270 Notesand bonds: Issuance; limitation on outstanding obligations.

NRS 319.280 Notesand bonds: Execution; terms; chapter 349 ofNRS inapplicable.

NRS 319.290 Notesand bonds: Pledges as security.

NRS 319.300 Bonds:Trust indentures as security.

NRS 319.310 Notesand bonds: Guarantees of payment.

NRS 319.320 Notesand bonds: Redemption; remarketing or refunding.

NRS 319.323 Issuanceof collateralized mortgage obligations; use of proceeds; submission of findingsto State Board of Finance.

NRS 319.325 Divisionmay provide that bonds, notes or loans be insured or secured; payment of costsassociated with insurance.

NRS 319.327 Exemptionof interest on Divisions bonds from federal income taxation: Waiver; issuanceof obligations not exempt from taxation.

NRS 319.330 Refundingobligations: Issuance, sale and exchange.

NRS 319.340 Bondreserve funds: Establishment; use; requirements.

NRS 319.350 Bondreserve funds: Limitations.

NRS 319.360 Bondreserve funds: Purpose; status reports.

NRS 319.370 Remediesof bondholders and noteholders.

NRS 319.380 Pledgeagainst impairment of holders rights and remedies; credit of State notpledged.

NRS 319.390 Notesand bonds as legal investments.

ACCOUNT FOR LOW-INCOME HOUSING

NRS 319.500 Creation;investment of money; claims.

NRS 319.510 Useand distribution of money in Account.

NRS 319.520 Regulationsconcerning distribution and use of money in Account; requirements for recipientof money.

UNLAWFUL ACTS

NRS 319.900 Falsestatements; penalty.

_________

GENERAL PROVISIONS

NRS 319.020 Legislativefindings and declaration; liberal construction. TheLegislature finds and declares that:

1. There exists a serious shortage of decent, safe andsanitary housing in this state available to persons and families of low andmoderate income and that many other persons and families are unable to secureor 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, reducedcapacity to pay taxes, and lack of new development to meet the needs of arearesidents, and is a menace to the health, safety, morals and welfare of theresidents of this state.

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

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

5. One major cause of this condition has beenrecurrent shortages of money from private sources, and such shortages havecontributed to reductions in construction of new residential housing and havemade the sale and purchase of existing residential housing a virtualimpossibility in certain parts of the State. Other causes of this conditioninclude increases in rental values and decreases in the availability of federalfunding for housing.

6. The ordinary operations of private enterprise havenot in the past corrected these conditions.

7. The reduction in housing construction has causedsubstantial unemployment and underemployment in the construction industrywhich, 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 physicaldevelopment of the State and adversely affects the welfare, health andprosperity of all the people of this state.

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

9. It is necessary to create a Housing Division in theDepartment of Business and Industry to encourage the investment of privatecapital and stimulate the financing of housing through the use of publicfinancing to provide mortgage loans and to make loans to and purchase mortgageloans from mortgage lenders, and to perform any other function authorized bythis chapter.

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

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

This chaptermust be liberally construed to accomplish the public purposes and alleviate thedetrimental 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 meaningsascribed to them in those sections.

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

NRS 319.040 Administratordefined. Administrator means the Administratorof the Division.

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

NRS 319.045 Collateralizedmortgage obligation defined. Collateralizedmortgage obligation means an obligation which represents an interest in a loanor a group of loans or which may be issued by the owner of one or more loansand secured by an assignment of or an interest in the principal or interestpayable from such a loan or loans or by an interest in the underlying loan.

(Added to NRS by 1987, 1350)

NRS 319.050 Divisiondefined. Division means the Housing Divisionof the Department of Business and Industry.

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

NRS 319.060 Eligiblefamily defined. Eligible family means aperson or family, selected without regard to race, creed, national origin orsex, determined by the Division to require such assistance as is made availableby this chapter on account of insufficient personal or family income aftertaking into consideration, without limitation, such factors as:

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

2. The size of the family;

3. The cost and condition of housing facilitiesavailable;

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

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

6. Service in the Armed Forces of the United Stateswith 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;

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

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

and at least2 years continuous residence in Nevada immediately preceding any applicationfor assistance under this chapter.

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

NRS 319.070 Governmentalagency defined. Governmental agency meansthe United States of America, this state or any department, division, publiccorporation, public agency, political subdivision or other publicinstrumentality of either.

(Added to NRS by 1975, 626)

NRS 319.080 Insuredmortgage defined. [Effective July 1, 2009.] Insuredmortgage means a mortgage loan for residential housing insured or guaranteedby private mortgage insurance or by the United States or a governmental agencyor instrumentality thereof.

(Added to NRS by 1975, 626; A 1979, 1186; R temp. 2001, 2123; 2003, 2194, expiresby limitation on July 1, 2009)

NRS 319.090 Lendinginstitution defined. Lending institutionmeans any bank or trust company, Federal National Mortgage Association approvedmortgage banker, national banking association, savings and loan association orother financial institution or governmental agency of the United States whichcustomarily provides service or otherwise aids in the financing of mortgageslocated in this state.

(Added to NRS by 1975, 626)

NRS 319.100 Mortgagedefined. Mortgage means a mortgage deed,deed of trust or other instrument which constitutes a lien on real property infee simple or on a leasehold under a lease whose remaining term, at the timesuch mortgage is acquired, does not expire for at least that number of yearsbeyond the maturity date of the obligation secured by such mortgage as isestablished by the Division as necessary to protect its interest as mortgagee.

(Added to NRS by 1975, 627)

NRS 319.110 Mortgageloan defined. Mortgage loan means an interest-bearingobligation secured by a mortgage on land and improvements in this state.

(Added to NRS by 1975, 627)

NRS 319.120 Realproperty defined. Real property means alllands, including rights to space above the lands, improvements and fixtures onthe lands and property of any nature appurtenant to or used in connection withthe lands, and every estate, interest and right, legal or equitable, in thelands, including terms of years and liens by way of judgment, mortgage orotherwise and the indebtedness secured by such liens.

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

NRS 319.130 Residentialhousing defined. Residential housing meansone or more new or existing residential dwelling units financed pursuant to theprovisions of this chapter for the primary purpose of providing decent, safeand 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, orother related nonhousing facilities which are necessary, convenient ordesirable in connection therewith, and including but not limited to streets,sewers, utilities, parks, site preparation, landscaping and other nonhousingfacilities such as administrative, community, transportation, health,recreational, educational, commercial, retail, welfare and public facilitieswhich the Division determines improve the quality of the residential living foreligible families.

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

NRS 319.135 Sponsordefined. 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, hasagreed to subject itself to regulation by the Division.

(Added to NRS by 1977, 195)

NRS 319.140 Generalpowers and duties of Division; reports; audit; exemption from State PurchasingAct. [Effective through June 30, 2009.]

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

2. The Administrator may make copies of allproceedings and other records and documents of the Division and issuecertificates under the seal of the Division to the effect that the copies aretrue copies, and all persons dealing with the Division may rely upon suchcertificates.

3. The Division has perpetual succession, subject totermination 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 thepleasure of the Division;

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

(d) Maintain records, proceedings and documents of theDivision, subject to chapters 239, 239A and 239Bof NRS;

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

(f) Make and execute contracts and all otherinstruments necessary or convenient for the exercise of its powers andfunctions pursuant to this chapter with any governmental agency, privatecorporation 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 othersource in furtherance of the purposes of this chapter;

(h) Acquire real or personal property or any interesttherein, 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 interesttherein, 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, consultantsand 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 ofits powers and duties pursuant to this chapter, provided, however, that theissuance of bonds, notes or other evidence of indebtedness by any legal entitycontrolled by the Division is subject to the approval of the State Board of Finance;

(l) Provide advice, technical information, training andeducational services related to the development of housing, buildingtechnologies and related fields;

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

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

4. Before September 1 of each even-numbered year, theDivision shall submit a report of its activities for the biennium ending June30 of that year to the Governor, State Treasurer and the Legislature. Each suchreport must set forth a complete operating and financial statement of theDivision during such biennium. The Division shall cause an audit of its booksand accounts to be made at least once in each fiscal year by a certified publicaccountant. The certified public accountant may audit the Divisions books andaccounts 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)

NRS 319.140 General powers and duties ofDivision; reports; audit. [Effective July 1, 2009.]

3. The Division may:

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

(b) Develop or purchase, lease or otherwise acquire oneor more information systems that the Division determines are necessary orconvenient for the exercise of its powers and duties pursuant to this chapterand acquire any consulting, support or other service for such informationsystems.

(Added to NRS by 1975, 627; A 1979, 1186; 2001, 2120; 2003, 2190, 2192, 2194, effective July1, 2009)

1. The Division is hereby designated as the housingcredit 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 forlow-income housing pursuant to 26 U.S.C. 42.

2. The Division:

(a) May adopt regulations establishing proceduresnecessary for the proper allocation and distribution of credits for low-incomehousing pursuant to 26 U.S.C. 42; and

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

3. The Division may act for the State of Nevada as theagency to facilitate the states designation as a participating jurisdiction inthe HOME Investment Partnership Act (42 U.S.C. 12701 et seq.). Uponreceiving such a designation, the Division may exercise all powers necessary toadminister the program.

4. The Division shall administer the programestablished to increase the efficiency with which energy is used in dwellingsowned or occupied by persons of low income pursuant to 42 U.S.C. 6861 etseq.

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

NRS 319.147 Certificationof assisted living facilities: Requirements; regulations.

1. The Division shall certify an assisted livingfacility for the purpose of providing services pursuant to the provisions ofthe home and community-based services waiver which are amended pursuant to NRS 422.2708 if the facility:

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

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

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

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

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

3. As used in this section:

(a) Assisted living facility has the meaning ascribedto it in paragraph (a) of subsection 3 of NRS422.2708.

(b) Assisted living supportive services has themeaning ascribed to it in paragraph (b) of subsection 3 of NRS 422.2708.

(Added to NRS by 2005, 922)

NRS 319.150 Contractsand other transactions; grants. [Effective July 1, 2009.] The Division may:

1. Make and execute contracts and all otherinstruments necessary or convenient for the exercise of its powers andfunctions under this chapter with any governmental agency, private corporationor other entity, or natural person.

2. Enter into agreements or other transactions with,and accept grants from and cooperate with any governmental agency or other sourcein furtherance of the purposes of this chapter.

(Added to NRS by 1975, 627; R temp. 2001, 2123; 2003, 2194, expiresby limitation on July 1, 2009)

NRS 319.160 Information,research and promotion. [Effective July 1, 2009.] TheDivision may provide advice, technical information, training and educationalservices, conduct research and promote the development of housing, buildingtechnology and related fields.

(Added to NRS by 1975, 628; R temp. 2001, 2123; 2003, 2194, expiresby limitation on July 1, 2009)

NRS 319.165 Divisionmay create instrumentalities to carry out purposes of chapter; notes, bonds orobligations subject to statutory requirements. [Effective July 1, 2009.]

1. The Division may create or cause to be created:

(a) Nonprofit corporations, pursuant to chapter 82 of NRS;

(b) Grantor trusts; or

which theDivision determines are necessary or convenient for the exercise of its powersand duties pursuant to this chapter.

2. Any corporation created pursuant to subsection 1must be subject to the control of the Administrator. The purposes, powers andoperation of the corporation must be consistent with the purposes, powers andduties of the Division.

3. Any notes, bonds or other obligations issued by acorporation, trust or other instrumentality created pursuant to subsection 1are subject to the same requirements prescribed for notes, bonds and otherobligations of the Division in NRS 319.171,319.270, 319.280, 319.323and 319.327.

(Added to NRS by 1987, 1350; A 1991, 1312; R temp. 2001, 2123; 2003, 2194, expiresby limitation on July 1, 2009)

NRS 319.167 Divisionmay enter into instruments, agreements and other transactions for certainpurposes. [Effective through June 30, 2009.]

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

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

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

(c) Enhancing the relationship between risk and returnwith respect to the programs of the Division for lending or investment or anyportion thereof.

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

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

NRS 319.170 Fundsand accounts; investments and deposits. Exceptas otherwise provided in NRS 319.500,the Division may:

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

2. Invest or deposit its money, subject to anyagreement with bondholders or noteholders, and is not required to keep any ofits money in the State Treasury. The provisions of chapters355 and 356 of NRS do not apply to suchinvestments or deposits.

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

NRS 319.171 Investmentin collateralized mortgage obligations or trusts. Exceptas otherwise provided in NRS 319.500,the Division may invest its money in collateralized mortgage obligations or intrusts created to finance, acquire or invest in collateralized mortgageobligations if the collateralized mortgage obligations or trusts so createdare:

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

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

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

NRS 319.172 Authorityto make loans of investment securities.

1. The Division may lend any securities in which itinvests pursuant to NRS 319.170 if theDivision receives collateral from the borrower in the form of cash ormarketable securities that are:

(a) Acceptable to the Division; and

(b) At least 102 percent of the value of the securitiesborrowed.

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

(Added to NRS by 1999, 927)

NRS 319.173 AdvisoryCommittee on Housing: Creation; members; meetings; submission and review ofwork plan; duties.

1. There is hereby created an Advisory Committee onHousing to review and provide to the Director of the Department of Business andIndustry and the Administrator advice, recommendations and other commentaryregarding:

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

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

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

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

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

2. The Advisory Committee consists of the Director ofthe Department of Business and Industry or his representative, and eightmembers appointed by the Director. The Director shall appoint to the AdvisoryCommittee:

(a) One representative of an association of mortgagebankers in this State, selected from a list of names submitted to the Directorby that association.

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

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

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

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

(f) One member who is knowledgeable about housingprograms sponsored, administered or supported by local governments in thisState.

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

(h) One member who is an advocate of affordablehousing.

The membersof the Advisory Committee are not entitled to any additional compensation fortheir service in that capacity.

3. The Director of the Department of Business andIndustry or his representative shall serve as the Chairman of the AdvisoryCommittee. The Advisory Committee shall meet at least once each calendarquarter, and at the call of the Chairman or upon the written request of theAdministrator or a majority of the members of the Committee.

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

(a) The expected needs for financing and anticipateddemand for tax credits and sources of funding for each of the programsadministered by the Division.

(b) Strategies for meeting those needs and demands.

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

(e) Any other matters which are critical to the successof 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 ofFinance pursuant to subsection 4 of NRS319.323,

theAdministrator shall submit a plan of investment or a plan of financing, togetherwith any proposed findings relating to that plan, to the Advisory Committee forits review and comment.

6. The Administrator shall report to the AdvisoryCommittee at least once each calendar quarter on the activities of the Divisionand the implementation of the Divisions work plan for that year.

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

NRS 319.175 Acquisitionand sale of land. [Effective July 1, 2009.] TheDivision, with the approval of the State Board of Finance:

1. May acquire land from any governmental agency;

2. Shall sell the land for the purpose of developmentof housing for persons of low or moderate income pursuant to this chapter; and

3. Shall charge a price for the land which is equal toits cost of acquiring and transferring the land.

(Added to NRS by 1979, 1185; R temp. 2001, 2123; 2003, 2194, expiresby limitation on July 1, 2009)

NRS 319.180 Powersof Division as mortgagee. [Effective July 1, 2009.] TheDivision may, in connection with any property of which it is the mortgagee:

1. Acquire or contract to acquire real or personalproperty, or any interest therein, on a temporary or permanent basis in its ownname by gift, purchase, transfer, foreclosure, lease or otherwise, includingrights or easements in property;

2. Hold, sell, assign, lease, encumber, mortgage orotherwise dispose of any real or personal property or any interest therein;

3. Hold, sell, assign or otherwise dispose of anymortgage interest owned by it or under its control, custody or in itspossession;

4. Release or relinquish any right, title, claim,lien, interest, easement or demand however acquired, including any equity orright of redemption in property foreclosed by it; and

5. Make any such disposition by private sale, with orwithout public bidding.

(Added to NRS by 1975, 628; A 1979, 1187; R temp. 2001, 2123; 2003, 2194, expiresby limitation on July 1, 2009)

NRS 319.190 Authorityto make loans and issue letters of credit. [Effective through June 30, 2009.]

2. The Division may issue letters of credit to financethe acquisition, construction, development, renewal, redevelopment,rehabilitation or refinancing of residential housing, including, withoutlimitation, multifamily housing, within this state if, at the time a letter ofcredit is issued, the Division has a credit rating within one of the threehighest 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)

NRS 319.190 Authority to make loans and issueletters of credit; limitations. [Effective July 1, 2009.]

1. The Division may make, undertake commitments tomake and participate with lending institutions in the making of mortgage loansand may make temporary loans and advances in anticipation of mortgage loans tofinance the acquisition, construction or rehabilitation of residential housing,including, without limitation, multifamily housing. Any loan made by theDivision pursuant to this section must be insured or guaranteed unless it isfinanced by an issue of obligations of the Division that are insured or securedby surety bonds, letters of credit not issued by the Division, guaranties orother means of assuring repayment of those obligations. Such loans may be madeonly after a determination by the Administrator that mortgage loans are nototherwise available from private lenders upon reasonable equivalent terms andconditions.

2. The Division may issue a letter of credit tofinance the acquisition, construction or rehabilitation of residential housing,including, without limitation, multifamily housing, only if:

(a) At the time a letter of credit is issued, theDivision has a credit rating within one of the three highest rating categoriesof a nationally recognized rating agency;

(b) Sufficient reserves in the funds established by theDivision are deposited in a separate account to be used to pay any liabilitiesthat may be incurred by issuing the letter of credit;

(c) The aggregate amount of outstanding letters ofcredit issued by the Division and the proposed letter of credit does not exceed$5,000,000; and

(d) The Administrator has determined that a letter ofcredit is not otherwise available from a private lender upon reasonableequivalent terms and conditions.

(Added to NRS by 1975, 628; A 1977, 195; 1987, 1354;1991, 214; 2001, 2121;2003, 2192, 2194, effective July1, 2009)

NRS 319.200 Termsand conditions of mortgage loan. [Effective through June 30, 2009.] Any mortgage loan made by the Division must be secured insuch manner, be repaid in such period and bear interest at such rate or ratesas are determined by the Division.

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

NRS 319.200 Terms and conditions of mortgageloan. [Effective July 1, 2009.] Any insuredmortgage loan made by the Division shall:

1. Not exceed the amount permitted under the insuranceprogram under which the mortgage is insured.

2. Be secured in such manner, be repaid in such periodand bear interest at a rate determined by the Division and permitted under theinsurance program under which the mortgage is insured. In addition to suchinterest charges, the Division may charge and collect such fees and charges,including reimbursement of the Divisions operating expenses, financing costs,service charges, insurance premiums and mortgage insurance premiums as theDivision determines to be reasonable.

(Added to NRS by 1975, 628; A 2001, 2122; 2003, 2194,effective July 1, 2009)

NRS 319.210 Investmentin mortgages. [Effective through June 30, 2009.]

1. The Division may:

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

(b) Sell, at public or private sale, with or withoutpublic bidding, any mortgage or other obligation held by the Division.

2. At or before the time of purchase, the lendinginstitution shall certify to the Division with respect to all mortgage loanstransferred to the Division:

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

(b) That the proceeds of sale or its equivalent will bereinvested in mortgage loans for residential housing for eligible familieswithin this state in an aggregate principal amount equal to the amount of suchsale proceeds.

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

NRS 319.210 Investment in mortgages. [EffectiveJuly 1, 2009.]

1. The Division may:

(a) Invest in, purchase or make commitments topurchase, and take assignments from lending institutions of mortgage loans andpromissory notes accompanying such mortgage loans, including federally insuredmortgage loans or participations with lending institutions in such promissorynotes 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 withoutpublic bidding, any mortgage or other obligation held by the Division.

2. At or before the time of purchase, the lendinginstitution shall certify to the Division with respect to all mortgage loanstransferred to the Division:

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

(Added to NRS by 1975, 628; A 2001, 2122; 2003, 2194,effective July 1, 2009)

NRS 319.220 Mortgagesin default: Foreclosure; modification of terms. TheDivision may:

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

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

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

4. Bid for and purchase property upon which it holds amortgage at any foreclosure or at any other sale, or acquire and takepossession of any such property;

5. Operate, manage, lease, dispose of and otherwisedeal with such property in such manner as may be necessary to protect theinterest of the Division and the holders of its bonds, notes and otherobligations; and

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

(Added to NRS by 1975, 629)

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

1. The Division may:

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

(b) Purchase securities from lending institutions underterms and conditions requiring that the securities finance mortgage loans forresidential housing;

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

2. The Division may require in the case of any lendinginstitution that any required collateral be lodged with a bank or trustcompany, located either within or outside the State, designated by the Divisionas custodian therefor. In the absence of this requirement, a lendinginstitution shall, if collateral is to be provided for the loan or securitiespurchased, upon receipt of the proceeds from the Division, enter into anagreement with the Division containing any provisions the Division deemsnecessary to identify adequately and maintain and service the collateral andproviding that the lending institution shall hold the collateral as trustee forthe benefit of the Division and shall be held accountable as the trustee of anexpress trust for the application and disposition thereof and the incometherefrom solely to the uses and purposes in accordance with the provisions ofthe 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 ofcollateral 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 inthe collateral and no filing, recording, possession or other action requiredunder any other law of this state is necessary, and the lien and trust for thebenefit of the Division so created is binding from the time made against allparties having any prior unperfected claim or claims of any kind in tort,contract or otherwise or any subsequent security interests against the lendinginstitution. The Division may also establish any additional requirements theAdministrator deems necessary with respect to the pledging, assigning, settingaside or holding of the collateral and the making of substitutions for it oradditions to it and the disposition of income and receipts from it.

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

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

NRS 319.235 Financingrental sites for mobile homes and equipment for conservation of energy inresidential dwelling units. The Division mayfinance, through the use of any power conferred on it by this chapter:

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

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

and anyrelated improvements appropriate to any of these purposes.

(Added to NRS by 1981, 1664)

NRS 319.240 Lendingfees and charges. The Division may charge andcollect such fees and charges as the Division may establish from time to timefor its lending and mortgage purchase programs.

(Added to NRS by 1975, 630)

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

(Added to NRS by 1975, 630)

NRS 319.260 Prerequisitesto financing residential housing. The Divisionshall not finance any residential housing unless, prior to such financing, theAdministrator finds that:

1. There exists a shortage of decent, safe andsanitary housing at rentals or prices which eligible families can afford withinthe 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 sanitaryhousing in such housing market area at rentals or prices which persons orfamilies of low and moderate income can afford or to provide sufficientmortgage financing for residential housing for occupancy by such persons orfamilies.

3. The proposed residential housing will increase thesupply or improve the quality of decent, safe and sanitary housing for eligiblefamilies.

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

5. The Divisions estimates of its revenues from thefinancing of the residential housing, together with all subsidies, grants orother financial assistance from governmental agencies or other entities to bereceived in connection with the residential housing, will be sufficient to paythe amount estimated by the Division as necessary for debt service on its notesand bonds to be issued for the financing of the residential housing.

(Added to NRS by 1975, 630)

ISSUANCE OF NOTES, BONDS AND OTHER OBLIGATIONS

NRS 319.270 Notesand bonds: Issuance; limitation on outstanding obligations.

1. Subject to the limitation imposed by subsections 4and 5, the Division may issue its negotiable notes and bonds in such principalamount as the Administrator determines to be necessary to provide sufficientmoney for achieving any of its statutory purposes, including the payment ofinterest on notes and bonds of the Division, establishment of bond reservefunds and other reserves to secure the notes and bonds, and all otherexpenditures of the Division necessary or convenient to carry out its statutorypurposes and powers.

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

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

4. Before any notes or bonds may be issued pursuant tothis section, except those issued for the purpose of refunding outstandingnotes or bonds, the Administrator must submit a copy of his finding of theconditions prerequisite to the financing of residential housing under thischapter to the State Board of Finance. If that Board approves, the Division mayproceed to issue its notes or bonds in the amount approved, subject to thefurther limitation of subsection 5.

5. The aggregate principal amount of outstandingbonds, 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 qualifyfor loans under this chapter, exclusive of any bonds, notes or obligationswhich have been refunded or which were issued at a time when the Division had acredit rating within one of the highest rating categories of a nationallyrecognized rating agency. The establishment of this debt limitation does notprohibit the Division from issuing additional bonds, notes or other obligationsif 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 Notesand bonds: Execution; terms; chapter 349 of NRS inapplicable.

1. The notes and bonds must be signed by theAdministrator, who may use a facsimile signature for this purpose, must bearthe date or dates and must mature at such a time or times as the Administratordetermines. The bonds may be issued as serial bonds payable in annualinstallments or as term bonds or as a combination thereof. The notes and bondsmust bear interest at such a rate or rates, be in such denominations, have suchregistration privileges, be executed in such a manner, be payable in such amedium 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. Thenotes and bonds of the Division may be sold by the Division at public orprivate sale at such a price or prices as the Administrator determines exceptthat no note, bond or other obligation issued by the Division may be initiallydistributed to the public unless it has received a rating in one of the threehighest rating categories from a national rating service.

2. If the Administrator whose signature appears on anynotes or bonds or coupons ceases to act in that capacity before the delivery ofthe notes or bonds, his signature is valid and sufficient for all purposes asif he had remained in office until their delivery.

3. The provisions of chapter349 of NRS do not apply to any bonds, notes or other obligations issued bythe Division under the provisions of this chapter.

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

NRS 319.290 Notesand bonds: Pledges as security. The Divisionin issuing any notes or bonds may contract with the holders thereof as to:

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

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

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

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

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

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

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

8. Limitations on the amount of moneys to be expendedby 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, whichmay include any or all of the rights, powers and duties of the trusteeappointed by the bondholders pursuant to this chapter and limiting orabrogating the right of the bondholders to appoint a trustee under this act orlimiting the rights, powers and duties of such trustee.

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

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

Any pledgemade by the Division is valid and binding from the time when the pledge ismade. The revenues, moneys or property so pledged and thereafter received bythe Division are immediately subject to the lien of such pledge without anyphysical delivery thereof or further act, and the lien of any such pledge isvalid and binding as against all persons having claims of any kind in tort,contract or otherwise against the Division, whether or not such persons havenotice thereof. Neither the proceedings of the Division relating to the bondsor notes nor any other instrument by which a pledge is created need berecorded.

(Added to NRS by 1975, 631)

NRS 319.300 Bonds:Trust indentures as security. In thediscretion of the Administrator, bonds issued by the Division may be secured bya trust indenture or trust indentures by and between the Division and acorporate trustee, which may be any trust company or bank having the power of atrust company within or outside this state. Such trust indenture may containsuch provisions for protecting and enforcing the rights and remedies of thebondholders as may be reasonable and proper and not in violation of law,including covenants setting forth the duties of the Division in relation to theexercise of its statutory powers and the custody, safeguarding and applicationof all moneys. The Division may provide by such trust indenture for the paymentof the proceeds of the bonds and the revenues to the trustee under such trustindenture or other depository, and for the method of disbursement thereof, withsuch safeguards and restrictions as the Administrator may determine. Allexpenses incurred in carrying out such trust indenture may be treated as partof the operating expenses of the Division. Such trust indenture may limit orabrogate the right of the holders of any bonds, notes or other obligations ofthe 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 Notesand bonds: Guarantees of payment. The Divisionmay procure or agree to the procurement of insurance or guarantees from any governmentalagency or from any private insurance company, of the payment of any bonds ornotes or any other evidences of indebtedness thereof issued by the Division orby any lending institution, and may pay premiums on such insurance.

(Added to NRS by 1975, 633)

NRS 319.320 Notesand bonds: Redemption; remarketing or refunding.

1. The Division, subject to such agreements withnoteholders or bondholders as may then exist, may, out of any money availabletherefor, purchase its notes or bonds to retire and cancel them. The price mustnot exceed:

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

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

2. The Division may, in connection with anyremarketing 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 andcancelling them.

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

NRS 319.323 Issuanceof collateralized mortgage obligations; use of proceeds; submission of findingsto State Board of Finance.

1. The Division may, in addition to the notes andbonds authorized by NRS 319.270, issuefrom time to time its collateralized mortgage obligations or other negotiablenotes, 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 participationsor other interests in loans or participations. Any money acquired from such anissuance must be applied by the Division to carry out its purposes.

2. Any such collateralized mortgage obligations orother notes, bonds or obligations are subject to the limitations of subsection5 of NRS 319.270 to the extent they constitutea debt under generally accepted accounting principles.

3. Using the proceeds of collateralized mortgageobligations or other available money, the Division may purchase or otherwiseacquire the loans or participations or other interests in loans orparticipations which are collateral for, secure or evidence or are evidenced bycollateralized mortgage obligations or other notes, bonds or obligations issuedby the Division pursuant to this section. Such loans may be secured bymortgages on real property outside of this state.

4. Before the issuance of any collateralized mortgageobligations or other bonds, notes or obligations pursuant to this section, theAdministrator shall submit to the State Board of Finance a copy of his findingsthat:

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

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

If thatBoard approves, the Division may proceed to issue such collateralized mortgageobligations or other notes, bonds or obligations in the amount approved.

(Added to NRS by 1987, 1351)

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

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

3. Pay the fees, charges, premiums and any other costsassociated with obtaining and maintaining insurance, or other means of assuringrepayment, from any available money of the Division including premiums, feesand charges assessed against sponsors, lending institutions or otherparticipants or beneficiaries of the programs of the Division.

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

NRS 319.327 Exemptionof interest on Divisions bonds from federal income taxation: Waiver; issuanceof obligations not exempt from taxation. TheDivision may:

1. Waive, by such means as the Division deemsappropriate, any exemption from federal income taxation of interest on thedivisions bonds, notes or other obligations provided by 26 U.S.C. 103 and141 to 149, inclusive, and related portions of the Internal Revenue Code or anysucceeding code or other federal statute providing a similar exemption; or

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

(Added to NRS by 1987, 1352)

NRS 319.330 Refundingobligations: Issuance, sale and exchange.

1. The Division may issue refunding obligations torefund any obligations then outstanding which have been issued under theprovisions of this chapter, including the payment of any redemption premiumthereon and any interest accrued or to accrue to the date of redemption of theobligations and for any statutory purpose of the Division. The issuance of theobligations, the maturities and other details thereof, the rights of theholders thereof, and the rights, duties and obligations of the Division inrespect to them are governed by the provisions of this chapter which relate tothe issuance of original obligations insofar as appropriate.

2. Refunding obligations issued as provided in thissection may be sold or exchanged for outstanding obligations issued under thischapter and, if they are sold, the proceeds thereof may be applied, in additionto any other authorized purposes, to the purchase, redemption or payment of theoutstanding obligations. Pending the application of the proceeds of therefunding obligations, with any other available funds, to the purpose for whichthey are issued, the proceeds may be invested in direct obligations of, orobligations the principal of and the interest on which are unconditionallyguaranteed by, the United States of America, or obligations of any agency orinstrumentality of the United States, which mature or which are subject toredemption by the holders thereof, at the option of such holders, not laterthan the respective dates when the proceeds, together with the interestaccruing thereon, will be required for the purposes intended.

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

NRS 319.340 Bondreserve funds: Establishment; use; requirements.

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

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

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

All moneyheld in any bond reserve fund, except as otherwise expressly provided in thischapter, must be used, as required, solely for the payment of the principal ofbonds secured in whole or in part by the fund or of the sinking fund paymentswith respect to such bonds, the purchase or redemption of such bonds, thepayment of interest on such bonds or the payment of any redemption premiumrequired to be paid when the bonds are redeemed before maturity.

2. Money in such a fund must not be withdrawn from thefund at any time in an amount that would reduce the amount of the fund belowthe requirement established for that fund, except to pay when due, with respectto bonds secured in whole or in part by that fund, principal, interest,redemption premiums and sinking fund payments for the payment of which othermoney of the Division is not available. Any income or interest earned by orincremental to any bond reserve fund resulting from the investment thereof maybe transferred by the Division to other funds or accounts of the Division andto the Account for Low-Income Housing created pursuant to NRS 319.500, to the extent that the amountof 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 Bondreserve funds: Limitations. The Division shallnot at any time issue bonds, secured in whole or in part by a bond reservefund, if upon the issuance of those bonds, the amount in that bond reserve fundwill be less than the bond reserve fund requirement for that fund, unless theDivision at the time of issuance of those bonds deposits in that fund from theproceeds of the bonds issued, or from other sources, an amount which, togetherwith the amount then in that fund, will not be less than the bond reserve fundrequirement for that fund. The bond reserve fund requirement, as of anyparticular date of computation, is an amount of money, specified in theproceedings of the Division authorizing the bonds with respect to which the fundis established, necessary to provide adequate reserves for debt service on thebonds.

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

NRS 319.360 Bondreserve funds: Purpose; status reports. Theprovision of bond reserve fund requirements is designed to assure the continuedoperation and solvency of the Division for the carrying out of its statutorypurposes. The Administrator shall, on or before the date of convening of anyregular session of the Nevada Legislature, make and deliver to the Governor,the President of the Senate and the Speaker of the Assembly his report givingthe status of this fund.

(Added to NRS by 1975, 635)

NRS 319.370 Remediesof bondholders and noteholders.

1. If the Division defaults in the payment ofprincipal of or interest on any bonds or notes issued under this chapter afterit is due, whether at maturity or upon call for redemption, and such defaultcontinues for a period of 30 days, or if the Division fails or refuses tocomply with the provisions of this chapter or defaults in any agreement madewith the holders of an issue of its bonds or notes, the holders of 25 percentin 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 andproved or acknowledged in the same manner as a deed to be recorded, may appointa trustee to represent the holders of such bonds or notes for the purposes providedin this section.

2. The trustee may, and upon written request of theholders of 25 percent in principal amount of such bonds or notes thenoutstanding shall, in his or its own name:

(a) Enforce the right of the bondholders or noteholdersto require the Division to collect interest and amortization payments on themortgages 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 carryout any other agreements with the holders of such bonds or notes and to performits duties under this act.

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

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

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

(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 25percent of the principal amount of such bonds or notes then outstanding, toannul such declaration and its consequences.

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

3. The trustee shall, in addition to the powers listedin subsection 2, have all the powers necessary or appropriate for the exerciseof any functions specifically set forth in this section or incident to thegeneral representation of bondholders or noteholders in the enforcement andprotection of their rights.

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

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

(Added to NRS by 1975, 635)

NRS 319.380 Pledgeagainst impairment of holders rights and remedies; credit of State notpledged.

1. The State of Nevada hereby pledges to and agreeswith the holders of any notes or bonds issued under this chapter that the Statewill not limit or alter the rights vested in the Division by this chapter tofulfill the terms of any agreements made with such holders or in any way impairthe rights and remedies of such holders until such notes and bonds, togetherwith the interest thereon, with interest on any unpaid installments ofinterest, and all costs and expenses in connection with any action or proceedingby or on behalf of such holders, are fully met and discharged. The Division mayinclude this pledge and agreement of the State in any agreement with theholders of such notes or bonds.

2. Obligations issued under the provisions of thischapter, including letters of credit issued by the Division, do not constitutea debt, liability or obligation of this state or of any political subdivisionthereof, or a pledge of the faith and credit of this state or of any politicalsubdivision thereof, but are payable solely from the revenues or assets of theDivision. Each obligation, including a letter of credit, issued under thischapter must contain on the face thereof a statement to the effect that the Divisionis not obligated to pay the obligation or the interest thereon except from therevenues or assets pledged therefor and that neither the faith and credit northe taxing power of this state or of any political subdivision thereof ispledged 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 Notesand bonds as legal investments.

1. The notes and bonds of the Division are legalinvestments in which all public officers and public bodies of the State, itspolitical subdivisions, all municipalities and municipal subdivisions, allinsurance companies and associations and other persons carrying on an insurancebusiness, all banks, savings and loan associations and trust companies, alladministrators, guardians, executors, trustees and other fiduciaries, and allother persons who are authorized on or after July 1, 1975, to invest in bondsor in other obligations of this state, may properly and legally invest funds,including capital, in their control or belonging to them. The notes and bondsare securities which may properly and legally be deposited with and received byall public officers and public bodies of the State or any agency or politicalsubdivision of the State and all municipalities and public corporations for anypurpose for which the deposit of bonds or other obligations of this state isauthorized by law on and after July 1, 1975, and may be used as collateral tosecure any deposit of public moneys.

2. The notes and bonds of the Division are securitieswithin the meaning of the Uniform Commercial CodeInvestment 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 Fundthe Account for Low-Income Housing, to be administered by the Division. Allmoney that is collected for the use of the Account from any source, includingpursuant to a specific statute, tax, legislative appropriation, gift or grant,or from interest earned on specified public or private accounts, must bedeposited in the Account.

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

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

NRS 319.510 Useand distribution of money in Account.

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

(a) For the acquisition, construction or rehabilitationof housing for eligible families by public or private nonprofit charitableorganizations, housing authorities or local governments through loans, grantsor subsidies;

(b) To provide technical and financial assistance topublic or private nonprofit charitable organizations, housing authorities andlocal governments for the acquisition, construction or rehabilitation ofhousing for eligible families;

(c) To provide funding for projects of public orprivate nonprofit charitable organizations, housing authorities or localgovernments that provide assistance to or guarantee the payment of rent ordeposits as security for rent for eligible families, including homelesspersons;

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

(e) In any other manner consistent with this section toassist eligible families in obtaining or keeping housing, including use as theStates 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 thenecessary costs of efficiently administering the Account and any money receivedpursuant to 42 U.S.C. 12701 et seq. In no case may the Division expend morethan $40,000 per year or an amount equal to 6 percent of any money madeavailable to the State pursuant to 42 U.S.C. 12701 et seq., whichever isgreater. Of the remaining money allocated from the Account:

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

(1) The Division of Welfare and SupportiveServices shall adopt regulations governing the use of the money that areconsistent with the provisions of this section.

(2) The money must be used solely for activitiesrelating to low-income housing that are consistent with the provisions of thissection.

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

(4) All money provided by the Federal Governmentto match the money distributed to the Division of Welfare and SupportiveServices pursuant to this section must be expended for activities consistentwith the provisions of this section.

(b) Eighty-five percent must be distributed to publicor private nonprofit charitable organizations, housing authorities and local governmentsfor the acquisition, construction and rehabilitation of housing for eligiblefamilies, subject to the following:

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

(2) Priority must be given to those projectsthat anticipate receiving federal money to match the state money distributed tothem.

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

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

(5) Not less than 15 percent of the unitsacquired, constructed or rehabilitated must be affordable to persons whoseincome is at or below the federally designated level signifying poverty. Forthe purposes of this subparagraph, a unit is affordable if a family does nothave 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 tothis paragraph, a project must be sponsored by a local government.

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

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

NRS 319.520 Regulationsconcerning distribution and use of money in Account; requirements for recipientof money.

1. The Administrator shall consult withrepresentatives of housing authorities, organizations of persons with lowincome, providers of housing, financial institutions and other personsinterested in the provision of low-income housing, and adopt regulationsestablishing:

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

(b) Procedures for the Division and the localgovernments that receive money pursuant to NRS319.510 to monitor the use of money from the Account and to enforce theprovisions of this section and NRS 319.500and 319.510.

Theregulations must be designed to maximize the efficient use of money in theAccount and to promote the participation and assistance of local governments.

2. A recipient of money from the Account shall complywith the regulations of the Administrator and provide such reports to theDivision and the local governments that receive money pursuant to NRS 319.510 upon the use of the money asthe Administrator requires.

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

UNLAWFUL ACTS

NRS 319.900 Falsestatements; penalty. Any person who knowinglymakes or causes to be made, either directly or indirectly, or through anyagency whatsoever, any false statement in writing concerning an applicantsincome, employment, financial position, the size of his family, his intent tooccupy premises as his primary residence or the cost of the residence, withintent that the statement be relied upon for the purpose of obtaining financialassistance 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)

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