AB 476 — Revises provisions concerning affordable housing. (BDR 25-1119)

EXEMPTAssembly (ReprintedBill withNo. amendments adopted on May 27, 2019) SECOND REPRINT A.B.

476476–Assemblymen ABenitez-Thompson, SSEMBLYKramer Band ILLNPeters O.CHAPTER..........

476–A SSEMBLYMEN B ENITEZ-THOMPSON , K RAMER AND P ETERS M ARCH 25, 2019 ____________ Referred to Committee on Growth and Infrastructure SUMMARY—Revises provisions concerning affordable housing.

(BDR 25-1119) FISCAL NOTE:

Effect on Local Government:

No.

Effect on the State:

Yes.

~ EXPLANATION – Matter in bolded italics is new;

matter between brackets [omitted material] is material to be omitted.

authorizing the Advisory Committee to request the drafting of not more than 1 legislative measure for each regular session of the Legislature;

Under the law as it existed between 1987 and 2017, there existed in the Housing Division of the Department of Business and Industry an AdvisorytheAdvisory Committee on Housing with the power and duty to review and provide to the Director of the Department and the Administrator of the Division advice, recommendations and other commentary regarding certain matters relating to housing.

Sectionpowers 1 of this bill recreates the Advisory Committee and revisesduties. its membership, to annually prepare and submit to the Private Activity Bond Council created byee section 3 of this bill a report concerning housing that addresses, without limitation, community needs for housing in the State, housing trends and housing goals for this State.

Among other duties, section 1 requires the Advisory Committeeip, to annually prepare and submit to the Private Activity Bond Council created by section 3 of this bill a report concerning housing that addresses, without limitation, community needs for housing in the State, housing trends and housing goals for this State.

- *AB476_R2* – 2 – Under the Internal Revenue Code, states and local governments are allowed to finance certain projects that primarily benefit or are used by a private entity, but have some public benefit, through the issuance of bonds known as private activity known as qualified private activities, the bondholders are not required to payeral law, federal income taxes on the interest that the bondholders earn on the bonds.

If the bonds are issued for certain private activities specified in federal law, known as qualified private activities, the bondholders are not required to pay federal income taxes on the interest that the bondholders earn on the bonds.

§§ 103, 141) Examples of qualified private activities include multifamily rentalof projects,those airportsqualified andprivate studentactivities, loans.federal law places an annual limit on the total dollar amount of tax-exempt private activity bonds that can be issued in each state, which is known as the “state ceiling.” In 2018, for example, Nevada’s state ceiling was roughly $315 million.

(26Each U.S.C.state is authorized to allocate its state ceiling among state and local governmental agencies and other authorized issuers.

§§An 142-145,allocation 1394) For some of thosethe qualifiedstate privateceiling activities,to federal law places an annualissuer limit on the total dollar amount of tax-exempt private activity bonds that can be issued in each state, which is known as the “stateissuer’s ceiling.”“volume Incap.” 2018,(26 forU.S.C. example, Nevada’s state ceiling among state and local governmental agencies and other authorized issuers.

Anling§ allocation146) Under existing law, the volume cap for State Government is 50 of the state ceiling is allocated to anlocal issuergovernments isin knownproportion asto the issuer’spercentage “volumethat cap.”the (26population U.S.C.of the local government bears to the entire population of - 80th Session (2019) – 2 – Nevada.

§Existing 146)law Underalso existingprovides law,that thean entity’s volume cap for Stateany Government is 50 percent of the state ceiling for each calendar year,year whilemay thebe remainingaugmented 50or percentdiminished of the state ceiling is allocated to local governments in proportionaccordance towith theregulations percentageadopted thatby the populationDirector of the localDepartment governmentof bearsBusiness toand theIndustry. entire population of Nevada.

Existing(NRS law348A.020) alsoUnder providesexisting thatlaw, an entity’s volume cap for any calendar the Director of the Department of Business and Industry.Industry is responsible for regulating private activity bonds in this State.

(NRS 348A.020)ted348A.040) by Under existing law, the Director ofwith therespect Departmentto of Business and Industry is responsible for regulating private activity bondsbonds. in this State.

(NRS(NAC 348A.040)348A.280) ExistingSection regulations3 establishcreatese a committee to serve in anstatute advisory capacity to the DirectorPrivate withActivity respectBond toCouncil privateand activityprescribes bonds.its membership.

(NACSection 348A.280)of Sectionthis 3bill createsrequires inthe statuteCouncil to advise the PrivateGovernor, Activitythe BondState CouncilBoard of Finance or the Director on the allocation of the state ceiling for the issuance of private activity bonds during any calendar year and prescribeson itsany membership.other matter concerning receive and consider the annual report concerning housing submitted by thecil to Advisory Committee on Housing, created by section 1.

SectionEXPLANATION 4– ofMatter thisin billbolded requiresitalics theis Councilnew; to advise the Governor, the State Board of private activity bonds during any calendar year and on any other matter concerning private activity bonds, if requested.

Finally,matter sectionbetween 4brackets requires[omitted thematerial] Councilis material to receivebe andomitted. consider the annual report concerning housing submitted by the Advisory Committee on Housing, created by section 1.

- *AB476_R2* – 3 – (1) One member who is knowledgeable and has experience in supportive housing programs and projects;

- 80th Session (2019) – 3 –  The members of the Advisory Committee are not entitled to any additional compensation for their service in that capacity.

5.Chair from among their membership.

The membersterm of theoffice Advisoryof Committeethe shall select a Chair fromis among2 theiryears. membership.

The termAdvisory ofCommittee officeshall ofmeet theat least once each calendar quarter, and at the call of the Chair or upon thecethe written request of the Administrator or a majority of the members of 6.e The Division shall provide administrative support to the Advisory Committee.

6.

The Division shall provide administrative support to the Advisory Committee.

(1) Community needs for housing in the State;

and (3)housing Housingin goalsthe forState; this State.

(3) Housing goals for this State.

- *AB476_R2* – 4 – (a) “Director” means the Director of the Department of Business and Industry.

The request must be submitted to the - 80th Session (2019) – 4 – Legislative Counsel on or before September 1 preceding the regular session.

NRS 218D.100 is hereby amended to read as follows:fol218D.100 1.