AB 540 — Revises provisions relating to governmental administration. (BDR 25-1036)

Existing law creates the Account for Affordable Housing in the State General Fund, which is required to be administered by the Division, and prescribes the distribution and use of money in the Account.

(NRS 319.500, 319.510) Under - 83rd Session (2025) – 3 – existing law, the costs to create and maintain the statewide low-income housing database are required to be paid from the Account up to a maximum of $175,000 per year.

(NRS 319.143, 319.510) Sections 17.6 and 18.5 of this bill:

(1) require payment from the Account of the costs to prepare the new annual report required by section 17.6;

and (2) change the maximum annual amount authorized from the Account for the payment of costs related to the database from the fixed amount of fiscal year.not more than 6 percent of the money deposited in the Account in each Existing law also authorizes the Division to expend not more than $40,000 per year or an amount equal to 6 percent of money received pursuant to the federal HOME Investment Partnerships Act, whichever is greater, as reimbursement for administering the Account and that federal money.

(NRS 319.510;

42 U.S.C.

§§ et seq.) Section 18.5:

(1) eliminates the authority of the Division to receive reimbursement from the Account for administering that federal money;

and (2) changes the maximum amount authorized from the Account as reimbursement for administering the Account to not more than 6 percent of the money deposited in the Account in each fiscal year.

Existing law requires the Division to distribute a certain portion of the remaining money in the Account to the Division of Welfare and Supportive Services of the Department of Health and Human Services for a program to provide emergency assistance to needy families with children.

(NRS 319.510) Section 18.5 eliminates this required distribution to the Division for this program, but specifically authorizes the use of money in the Account for the same purpose.

With the Account will effectively be distributed to the other authorized recipients inin existing law, which are certain charitable organizations, housing authorities and local governments for the acquisition, construction and rehabilitation of affordable housing for eligible families, subject to certain requirements.

One such eligibility requirement in existing law is that not less than 15 percent of the units acquired, constructed or rehabilitated be affordable to persons whose income is at or below the federally designated level signifying poverty.

(NRS 319.510) Section 18.5:

(1) changes the income level for that requirement to be at or below 30 percent of the median monthly gross household income for the applicable county;

and (2) clarifies that the money is authorized to be distributed to one or more of the types of entities that are eligible recipients.

Section 18.5 also eliminates the eligibility requirement in existing law that a local government sponsor such a project.

theSections reporting19 and 20 of rentalthis paymentsbill toauthorize athe creditDivision reportingto agency.stablishestablish a program for Existingthe lawreporting sets forth certain procedures for a board of countyrental commissionerspayments orto governing body of a citycredit toreporting sellagency. or lease real property.

(NRSExisting 244.281,law 268.061)sets forth certain procedures for a board of county commissioners Sections 23 and 26 of this bill require, before approving the sale or lease of real -property *AB540_R1*for –the 3development –of attainable housing, in addition to other procedures, the board or governing body to evaluate the capacity and commitment of therocedures,the developer to provide long-term benefits to the county in a manner that promotes transparency and does not interfere with equitable competition.

Existing law authorizes a nonprofit organization to submit to a board of county commissioners or governing body of a city an application for conveyance of certain property that is owned by the county.county or city, as applicable.

The board or governing body may approve such an application if the nonprofit organization demonstrates - 83rd Session (2025) – 4 – that the organization or its assignee will use the property to develop affordable housing.

(NRS 244.287,on244.287, 268.058) Sections 24 and 25 of this bill:

Existing law establishes three tiers of affordable housing for various purposes in existing law and defines “affordable housing” as housing that falls within any of 279.385, 279A.020, 279B.020, 315.9625, 319.042) Section 33 of this bill revises the threeterm tiers.“affordable housing” to be “attainable housing.” Under existing law, the tiers are based on both household income and the costs of housing as a percentage of that income.

(NRS 232.860, 244.189, 244.287, 268.058, 268.190, 278.0105, 279.385, 279A.020, 279B.020, 315.9625, 319.042) Section 33 of this bill revises the term “affordable housing” to be “attainable housing.” of housing as a percentage of that income.

(1)s(1) “tier one affordable housing” is housing for a household which has a total monthly gross income that is equal to not more than 60 percent of the median monthly gross household income for the county in which the housing is located, which is commonly known as the area median household income;

and (3) “tier three affordable housing” is housing for a household which has a total monthly gross income that is equal to more than 80 addition,percent withbut respect to the costs of housing, affordable housing under existing law is housing that costs not more than 30120 percent of the total monthly gross household income of the household with an income at the maximum percentage of the area median household incomeincome. for the tier.

(NRSIn 278.01902,addition, 278.01904,with 278,01906)respect to the costs of housing, affordable housing under existing law is housing that costs not more than 30 percent of the total monthly gross household income of the household with an income at the maximum percentage of the area Section 2929.5 of this bill creates a new tier of affordable housing, to be known as “tier fourone affordable housing,” that addresses housing for a household that has a total monthly gross income that is equal to not more than 12030 percent but not more than 150 percent of the area median household income.

ExistingAs lawa setsresult forthof anthe approvalcreation processof forthis thenew subdivisiontier of landaffordable thathousing, governingsection body34 of athis countybill orrenames city,“tier one affordable housing” in existing law as applicable.“tier two affordable housing” and changes the percentage range for median income for that tier to more than 30 percent but not more than 60 percent of the area median household income.

Section 36 of this bill renames “tier two affordable housing” in existing law for which the percentage range for median income is more than 60 percent, but not more than 80 percent of the area median household income, as “tier three affordable housing.” Section 35 of this bill renames “tier three affordable housing” in existing law, for which the percentage range for median income is more than 80 percent but not more than 120 percent of the area median household income, as “tier four affordable housing.” Section 29 of this bill creates a new tier of affordable housing, to be known as “tier five affordable housing,” that addresses housing for a household that has a total monthly gross income that is equal to not more than 120 percent but not more thanSection 37.5 of this bill makes a conforming change to reflect the changes in the tiers.

Existing law sets forth an approval process for the subdivision of land that requires a subdivider to submit a tentative map to the planning commission or governing body of a county or city, as applicable.

Existing law requires the governing body of each county and city, on or before July 1, 2024, to enact by ordinance an expedited process for the consideration and - 83rd Session (2025) – 5 – approval of projects for affordable housing.

1171) Section 30 of this bill requires the governing body of each county and the governing body of each city to adopt an expedited process for the consideration and approval of projects for attainableanattainable housing.

Section 32 of this bill applies the definitions of certain terms relating to planningsections 29-31.ning and zoningthe tonewly defined terms in sections 29-31.29 and 29.5 to Sections 34-36 of this bill, respectively, revise the definitions of “tier one affordable housing,” “tier three affordable housing” and “tier two affordable housing” to provide that the costs of such housing may be offset by certain energy cost savings.

-Existing *AB540_R1*law –requires 4the –governing Sectionsbody 34-36 of thiscertain bill,cities respectively,and revisecounties theto definitionsadopt at least 6 of “tier12 onespecified affordablemeasures housing,”in “tierimplementing threea affordableplan housing”for maintaining and “tierdeveloping two affordable housing”housing, which may include a measure to providereduce thator subsidize impact fees, fees for the costsissuance of suchbuilding housingpermits mayand befees offsetimposed byfor certainthe energypurpose costfor savings.which an enterprise fund was created.

Existing(NRS law278.235) requiresSection the37 governing body of certainthis citiesbill andauthorizes countiesthat tothe adoptgoverning atbody least 6 of 12such specified measures in implementing a plancounty foror maintainingcity and developing affordable housing, which may include a measure to reducealso orreimburse subsidizesuch purposefees. for which an enterprise fund was created.

(NRSExisting 278.235)law Sectionrequires 37 ofhe this bill authorizes that the governing body of suchcertain acities county or citycounties includeto asubmit measure to alsothe reimburseDivision suchannual fees.progress reports relating to affordable housing.

(NRS 278.235) Existing law requires:

(1) the inclusion of these reports in the statewide low-income housing database;

and (2) the Division to compile and post these deadline for:

(1) the submission of the reports to the Division from July 15 to March 15;

and (2) the posting of the compilation of the reports by the Division from August 15 to April 15.

The new deadlines apply starting in 2026, as section 49.5 of this bill requires:

(1) the governing body of a city or county to submit the report to the Division on or before July 15, 2025;

and (2) the Division to compile the reports and post the compilation on the Internet website of the Division on or before August 15, 2025.

Section 40 of this bill provides that, if the Director of the Department of Business and Industry determines that there is a shortage of skilled labor or licensed contractors in a rural area that is adversely impacting the availability of attainable housing for essential workers who are employed in the area, the Director may issue a declaration of such shortage for not more than 3 years.

Upon such a declaration, the Board is required to implement a process to issue provisional contractors’ licenses to certain applicants who will perform work on an attainable housinghousing’ project in certain rural areas.

Sections 41 and 42 of this bill exempt the license by endorsement issued pursuant to section 39 or a provisional license issued pursuant to section 40 from certain licensing requirements and the expiration date that generally apply to contractors’ licenses.

- 83rd Session (2025) – 6 – Sections 48 and 49 of this bill require the Board to:

(1) adopt regulations to submit2026; a report to the Governor and Director of the Legislative Counsel Bureau that includes a recommendation as to whether the requirements to issue such licenses by endorsement and provisional licenses, as required by sections 39 and 40, should be continued, modified or terminated.

and (2) submit a report to the Governor and Director of the Legislative1, Counsel Bureau that includes a recommendation as to whether the requirements to issue such licenses by endorsement and provisional licenses, as required by sections 39 and 40, should be continued, modified or terminated.

general obligation bonds to provide certain loans for the development or000,000 in construction of certain projects.

Section 37.2 makes a conforming change.

EXPLANATION – Matter in bolded italics is new;

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

-program *AB540_R1*that –receives 5a –grant Sec.of money from the Nevadaect or Attainable Housing Account pursuant to section 10 of this act.

4.

“Attainable housing project” means any project or program that receives a grant of money from the Nevada Attainable Housing Account pursuant to section 10 of this act.

- 83rd Session (2025) – 7 – (a) Competitive loans, grants or rebates to support the development of attainable housing.

(b) Competitive loans, grants or rebates for the development of attainable housing projects that qualify for federal low-income housinghou(c) taxThe credits,acquisition asof definedland infor NRSthe 360.863.development of attainable housing projects.

(c) The acquisition of land for the development of attainable housing projects.

“Nevada Attainable Housing Account” or “Account” means the Nevada Attainable Housing Account created by section 9 of this act.

The Division may apply for and - *AB540_R1* – 6 – accept any gift, grant, donation, bequest or other source of money for deposit in the Account.

4.Attainable Housing Account, after deducting any applicableada charges, must be credited to the Account.

The interest and income earned on money in the Nevada Attainable Housing Account, after deducting any applicable charges, must be credited to the Account.

- 83rd Session (2025) – 8 – (c) Financial assistance for supportive housing;

(f) Programs that assist essential workers to purchase homes, including, without limitation, programs that provide down homes, payment assistance, interest rate buydowns or other forms of direct financial support to essential workers for purchasing homes;

-public-private *AB540_R1*partnership –with 7the –State 2.or a local government into a may only receive money from the Account for the following:

Any eligible entity that is a private entity that enters into a public-private partnership with the State or a local government may only receive money from the Account for the following:

(a) Shall prioritize projects that demonstrate the highest potential impact on addressing the attainable housing needs of the State;State, including, without limitation, prioritizing the need for single-family homes that are affordable for households that have a - 83rd Session (2025) – 9 – total monthly gross income that is not more than 150 percent of the median monthly gross household income for the county in which the housing is located;

(1) Request(I) The Federal Government at a discounted price for the creation of affordable housing pursuant to purchasefederal landlaw, ownedincluding, by:without limitation, the provisions of section 7(b) of the Southern Nevada Public Land Management Act of 1998, Public Law 105-263;

(I) The Federal Government at a discounted price for the creation of affordable housing pursuant to federal law, including, without limitation, the provisions of section 7(b) of the Southern Nevada Public Land Management Act of 1998, Public Law 105-263;

Sec.adopt an allocation plan for disbursing money from the Nevadahall Attainable Housing Account for attainable housing.

11.

1.

For each calendar year, the Administrator shall adopt an allocation plan for disbursing money from the Nevada Attainable Housing Account for attainable housing.

- *AB540_R1* – 8 – 2.

The allocation plan adopted pursuant to subsection 1 must, without limitationlimitation, set forth:

- 83rd Session (2025) – 10 – (2) The extent to which the proposed attainable housing project maximizes the use of money from the Account by obtaining additional financial support from federal, local, private or other sources;

and (3) The long-term sustainability of the proposed attainable housing project and its potential to contribute to communitycommunitynable stability, foster economic development and increase access to attainable housing.

Sec.Secs.

13.13 and 14.

14.

(Deleted by amendment.) Sec.

The Division shall submit a report to the Interim Finance Committee for consideration at the last meeting of each fiscal year and the last meeting of each calendar yearyearg relating to the Nevada Attainable Housing Account.

- *AB540_R1* – 9 – (b) The number and the income levels of all households that were assisted by money awarded from the Account during the reporting period;

(e)- The83rd numberSession of(2025) households– and11 demographic– information of recipients of rental assistance from programs for rental assistance or eviction diversion that receive money from the Account;

and (j) Any other information requested by the Interim Finance Committee.ComSec.

Sec.

andand(g) (g) One member appointed by the Governor.

- *AB540_R1* – 10 – (a) One member must have expertise in banking and the financing of housing projects;

- 83rd Session (2025) – 12 – (d) One member must represent a low-income housing organization;

Each person who is required to appoint a member pursuant to subsection 2 must make his or her appointment from a list of persons recommended by the Division.

To the extentextentfrom a practicable, the membership of the Council must represent the geographic diversity of this State.

Sec.1.c.Review and comment on:able Housing Council shall:

17.

The Nevada Attainable Housing Council shall:

1.

Review and comment on:

- *AB540_R1* – 11 – Sec.

17.3.

NRS 319.141 is hereby amended to read as follows:

319.141 1.

The Housing [Advocate] Liaison is hereby created within the Division.

- 83rd Session (2025) – 13 – position of Housing [Advocate.] Liaison.

The Housing [Advocate] Liaison is in the unclassified service of the State and serves at the pleasure of the Administrator.

3.

The person so appointed pursuant to subsection 2 must be knowledgeable about affordable housing and manufactured housing.

4.

The Housing [Advocate] Liaison shall:

(a) Respond to written and telephonic inquiries received from residents who reside in affordable housing and manufactured housing and provide assistance to such residents in understanding their rights and responsibilities;

(b) Conduct community outreach and provide information concerning housing to residents who reside in affordable housing and manufactured housing;

(c) Identify and investigate complaints of residents of affordable housing and manufactured housing that relate to their housing and provide assistance to such residents to resolve the complaints;

information pertaining to written and telephonic inquiries received by the Division;

and (e) [Any] Perform any other duties specified by the Administrator.

5.

The Administrator may remove the Housing [Advocate] Liaison from the office for any reason not prohibited by law.

Sec.

17.6.

NRS 319.143 is hereby amended to read as follows:

319.143 1.

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

2.

The database must include, without limitation, the compilation [and analysis] of demographic, economic and housing data from a variety of sources, including, without limitation, reports submitted pursuant to NRS 278.235 [, that:] and any survey conducted by the Division, relating to the information that must be included in the report required by subsection 3.

(a) [Provides for an annual assessment of] Analyze the data in the database and prepare a report which must:

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

[(b) Addresses] - 83rd Session (2025) – 14 – in Nevada, such as households that rent, homeowners, elderlyroups households, veterans, persons with disabilities or special needs, homeless persons, recovering persons with a substance use disorder, persons suffering from mental health ailments and victims of domestic violence, with each group distinguished to show the percentage of the population group at different income levels, and a determination of the number of households within each special- needs group experiencing housing costs greater than [50] 30 percent of their income, overcrowding or substandard housing;

[(c) Contains] (3) Contain an estimate of the number and condition of subsidized and other low-income housing units at the county level and the identification of any subsidized units that are forecast to convert to market-rate units within a [2-year] 3-year planning period;

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

[(e) Provides] (5) Provide the number of housing units available to a victim of domestic violence from any housing authority, as defined in NRS 315.021, and from participation in the program of housing assistance pursuant to section 8 of the United States Housing Act of 1937, 42 U.S.C.

§ 1437f;

and [(f) Provides] (6) Provide the number of terminations of victims of domestic violence in this State from the program of housing assistance pursuant to section 8 of the United States Housing Act of 193[3.

The costs of creating and maintaining the database:

(a) Must be paid from the Account for Affordable Housing created by NRS 319.500;

and] (b) [May not exceed $175,000 per year.] Post the report on the Internet website of the Division.

4.

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

(a) Accessible to persons with disabilities;

and - 83rd Session (2025) – 15 – (b) [Affordable] Attainable housing, as defined in NRS 278.0105,  has received any loan, grant or contribution for the multifamily residential housing from the Federal Government or the State, the inclusion in the database information concerning each unit of the multifamily residential housing that is available and suitable for use by a person with a disability.

5.

The Division shall adopt regulations to carry out the provisions of subsection 4.

Sec.

The provisions of chapters 355 and 356 of NRS do not apply to such investments or deposits.

18.5.

NRS 319.510 is hereby amended to read as follows:

319.510 1.

Except as otherwise provided in subsection 2, money deposited in the Account for Affordable Housing must be used:

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

private nonprofit charitable organizations, housing authorities and local governments for the acquisition, construction or rehabilitation of affordable housing for eligible families;

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

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

(e) To assist eligible persons by supplementing their monthly rent for the manufactured home lots, as defined by NRS 118B.016, on which their manufactured homes, as defined by NRS 118B.015, are located;

[and] - 83rd Session (2025) – 16 – low-income housing database and preparing the annual reporttewide required by NRS 319.143;

(g) To assist families that have children and whose income is at or below the federally designated level signifying poverty;

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

2.

[Except as otherwise provided in this subsection, the] The Division may expend each fiscal year not more than:

(a) Six percent of the money [from] deposited in the Account as reimbursement for the necessary costs of efficiently administering the Account .

[and any money received pursuant to 42 U.S.C.

§§ et seq.

In no case may the Division expend more than $40,000 per year or an amount equal to 6 percent of any money made available to the State pursuant to 42 U.S.C.

§§ 12701 et seq., than $175,000 per year from]ition, the Division may expend not more (b) Six percent of the money deposited in the Account to create and maintain the statewide low-income housing database and prepare the annual report required by NRS 319.143.

[The Division may expend not more than $75,000 per year] (c) Seventy-five thousand dollars of the money deposited in the Account pursuant to NRS 375.070 for the purpose set forth in paragraph (e) of subsection 1.

[Of the] 3.

The remaining money allocated from the Account [:] after the expenditures made pursuant to subsections 1 and 2 [(a) Except as otherwise provided in subsection 3, 15 percent must be distributed to the Division of Welfare and Supportive Services of the Department of Health and Human Services for use in its program developed pursuant to 45 C.F.R.

§ 233.120, as that section existed on December 4, 1997, to provide emergency assist(1) The Division of Welfare and Supportive Services shallowing:

adopt regulations governing the use of the money that are consistent with the provisions of this section.

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

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

- 83rd Session (2025) – 17 – the money distributed to the Division of Welfare and Supportive Services pursuant to this section must be expended for activities consistent with the provisions of this section.

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

[(1)] (a) Priority may be given to those projects that provide a preference for:

[(I)] (1) Women who are veterans;

[(II)] (2) Women who were previously incarcerated;

[(III)] (3) Survivors of domestic violence;

[(IV)] (4) Elderly women who do not have stable or adequate living arrangements;

and [(V)] (5) Unmarried persons with primary physical custody of a child.

for the federal tax credit relating to low-income housing.hat qualify [(3)] (c) Priority must be given to those projects that anticipate receiving federal money to match the state money distributed to them.

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

[(5)] (e) All money must be used to benefit families whose income does not exceed 120 percent of the median income for families residing in the same county, as defined by the United States Department of Housing and Urban Development.

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

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

3.

The Division may, pursuant to contract and in lieu of distributing money to the Division of Welfare and Supportive Services pursuant to paragraph (a) of subsection 2, distribute any - 83rd Session (2025) – 18 – amount of that money to private or public nonprofit entities for use consistent with the provisions of this section.] Sec.

1.Industry may establish a program for the reporting of rentald payments to a credit reporting agency.

The Housing Division of the Department of Business and Industry may establish a program for the reporting of rental payments to a credit reporting agency.

(a) Criteria for approving an independent third-party vendor to manageman(b) theRequirements collectionfor tenants to be notified and reportingprovide ofproper rentalconsent payments;to participate in the program;

(b) Requirements for tenants to be notified and provide proper consent to participate in the program;

- *AB540_R1* – 12 – 2.

(a)- Establish83rd requirementsSession for(2025) any– landlord19 or– tenant to voluntarily participate in the program, including, withoutwithouto limitation, any safeguard necessary to ensure that participation in the program is voluntary and that tenants are not subject to any adverse action for participating or not participating in the program.

and (c) Procedures for resolving any dispute relating to the reporting of rental payments pursuant to the program.program.to the Sec.

Sec.

(g) Except as otherwise provided in NRS 425.620, the Division of Welfare and Supportive Services of the Department of Health and Hum(h) Except as otherwise provided in NRS 422.390, the Division of Health Care Financing and Policy of the Department of Health and Human Services.

(h) Except as otherwise provided in NRS 422.390, the Division of Health Care Financing and Policy of the Department of Health and Human Services.

- *AB540_R1* – 13 – (j) The Division of Industrial Relations of the Department of Business and Industry acting to enforce the provisions of NRS 618.375.

(k)- The83rd AdministratorSession of(2025) the– Division20 of– Industrial Relations of the Department of Business and Industry in establishing andandtions of adjusting the schedule of fees and charges for accident benefits pursuant to subsection 2 of NRS 616C.260.

(a) Chapter 612 of NRS for the adoption of an emergency regulation or the distribution of regulations by and the judicial review of decisions of the Employment Security Division of the Department of Employment, Training and Rehabilitation;

5.

The provisions of this chapter do not apply to:

- *AB540_R1*83rd –Session 14(2025) – (c)21 A– regulationpursuant adoptedto byNRS the388.255 Stateor 394.1694;tate Board of Education pursuant(d) toThe NRSjudicial 388.255review orof 394.1694;decisions of the Public Utilities Commission of Nevada;

(d) The judicial review of decisions of the Public Utilities Commission of Nevada;

(h) The adoption, amendment or repeal of standards of content and performance for courses of study in public schools by the Council to Establish Academic Standards for Public Schools and the StateSta(i) BoardThe adoption, amendment or repeal of Educationthe statewide plan to allocate money from the Fund for a Resilient Nevada created by NRS 433.732 established by the Department of Health and Human Services pursuant to paragraph (b) of subsection 1 of NRS 389.520;433.734;

(i) The adoption, amendment or repeal of the statewide plan to allocate money from the Fund for a Resilient Nevada created by NRS 433.732 established by the Department of Health and Human Services pursuant to paragraph (b) of subsection 1 of NRS 433.734;

244.281section 1.and NRS 244.189, 244.276, 244.279, 244.2815, 244.2825,tion] 244.2833, 244.2835, 244.284, 244.287, 244.290, 278.479 to 278.4965, inclusive, and subsection 3 of NRS 496.080, except as otherwise required by federal law, except as otherwise required pursuant to a cooperative agreement entered into pursuant to NRS 277.050 or 277.053 or an interlocal agreement in existence on or before October 1, 2004, except if the board of county commissioners is entering into a joint development agreement for real property owned by the county to which the board of county - 83rd Session (2025) – 22 – with a term of 1 year or less, except for the sale or lease of realy property to a public utility, as defined in NRS 704.020, to be used for a public purpose and except for the sale or lease of real property larger than 1 acre which is approved by the voters at a primary or general election or special election:

Except as otherwise provided in this [subsection] section and NRS 244.189, 244.276, 244.279, 244.2815, 244.2825, 244.2833, 244.2835, 244.284, 244.287, 244.290, 278.479 to 278.4965, inclusive, and subsection 3 of NRS 496.080, except as otherwise required by federal law, except as otherwise required pursuant to a cooperative agreement entered into pursuant to NRS 277.050 or 277.053 or an interlocal agreement in existence on or before October 1, 2004, except if the board of county commissioners is entering into a joint development agreement for real property owned by the county to which the board of county commissioners is a party, except for a lease of residential property with a term of 1 year or less, except for the sale or lease of real - *AB540_R1* – 15 – property to a public utility, as defined in NRS 704.020, to be used for a public purpose and except for the sale or lease of real property larger than 1 acre which is approved by the voters at a primary or general election or special election:

(b) Before the board of county commissioners may sell or lease any realrea(1) propertyPost ascopies providedof the resolution described in paragraph (a),(a) itin shall:three public places in the county;

(1) Post copies of the resolution described in paragraph (a) in three public places in the county;

 If no qualified newspaper is published within the county in which the real property is located, the required notice must be published in somea qualifiedgeneral newspapercirculation printedwithin inthat thecounty.tate State of Nevada and having a(c) generalExcept circulationas withinotherwise provided in this paragraph and paragraph (h), if the board of county commissioners by its resolution further finds that county.the real property to be sold or leased is worth more than $1,000, the board shall select two or more disinterested, competent real estate appraisers pursuant to NRS 244.2795 to appraise the real property.

(c)If Exceptthe asboard otherwiseof providedcounty incommissioners thisholds paragrapha andpublic paragraphhearing (h),on if the boardmatter of countythe commissionersfair bymarket itsvalue resolutionof furtherthe findsproperty, thatone thedisinterested, realcompetent propertyappraisal toof bethe soldreal orproperty leased- is83rd worthSession more(2025) than– $1,000,23 the– boardacquired shallpursuant selectto twoNRS or371.047, morethe disinterested,board competentof countyr real estateproperty appraiserscommissioners pursuantshall tonot NRSsell 244.2795or tolease appraiseit thefor realless property.than:

(1) If thetwo boardindependent ofappraisals countywere commissionersobtained, holds a public hearing on the matteraverage of the fairappraisals market value of the property, one disinterested, competent appraisal of the real propertyproperty. is sufficient before selling or leasing it.

Except for real property acquired pursuant to NRS 371.047, the board of county commissioners shall not sell or lease it for less than:

- *AB540_R1* – 16 – (1) If two independent appraisals were obtained, the average of the appraisals of the real property.

or (2) Sell the real property either for cash or for not less than 25 percent cash down and upon deferred payments over a period of not more than 10 years, secured by a mortgage or deed of trust, bearing such interest and upon such further terms as the board of county commissioners may specify.

(e) A board of county commissioners may sell or lease any real property owned by the county without complying with the provisionsprovisi(1) ofA NRSperson 244.282who owns real property located adjacent to the real property to be sold or 244.283leased to:if the board has determined by resolution that the sale will be in the best interest of the county and the real property is a:

(1) A person who owns real property located adjacent to the real property to be sold or leased if the board has determined by resolution that the sale will be in the best interest of the county and the real property is a:

or (III) Parcel which is subject to a deed restriction prohibiting the use of the real property by anyone other than the person who owns real property adjacent to the real property for sale or lease.leas(2) The State or another governmental entity if:

(2) The State or another governmental entity if:

(g)- If83rd realSession property(2025) that– is24 offered– for sale or lease pursuant to this section is not sold or leased at the initial offering of the contract for the sale or lease of the real property, the board of county commissioners may offer the real property for sale or lease a second time pursuant to this section.

The board of county commissioners - *AB540_R1* – 17 – must obtain a new appraisal or appraisals, as applicable, of the real property pursuant to the provisions of NRS 244.2795 before offering the real property for sale or lease a second time if:

(h) If real property that is offered for sale or lease pursuant to this section is not sold or leased at the second offering of the contract for the sale or lease of the real property, the board of county commissioners may list the real property for sale or lease at the appraised value or average of the appraised value if two or more appraisals were obtained, as applicable, with a licensed real estate broker, provided that the broker or a person related to the broker within the first degree of consanguinity or affinity does not have an interest in the real property or an adjoining property.

Before approving the sale or lease of real property owned by the county for the development of attainable housing, in addition to complying with the provisions of subsection 1, the board of county commissioners shall evaluate the capacity and commitment of the developer to provide long-term benefits to the county in a manner that promotes transparency and does not interfere with equitable competition.

(b)- A83rd descriptionSession of(2025) any– previous25 project– for which the developer received federal low-income housing tax credits, as defined in NRS 360.863, with documentation of compliance with any federal requirements;

The - *AB540_R1* – 18 – description must include, without limitation, the name, location, number of units and cost per unit of the attainable housing.

(a)NRS “Attainable278.0105.nable housing” has the meaning ascribed to it in (b) “Flood control facility” has the meaning ascribed to it in NRS 278.0105.244.276.

(b) “Flood control facility” has the meaning ascribed to it in NRS 244.276.

(a) Published at least once in a newspaper of general circulation in (b) Mailed to all owners of record of real property which is located not more than 300 feet from the county.property that is proposed for conveyance.

(b) Mailed to all owners of record of real property which is located not more than 300 feet from the property that is proposed for conveyance.

- 83rd Session (2025) – 26 – 3.

The board of county commissioners may approve such an application for conveyance if the nonprofit organization demonstrates to the satisfaction of the board that the organization or its assignee will use the property to develop [affordable] attainable housing.hou(a) Information that sets forth:e, without limitation:

An application must include, without limitation:

(a) Information that sets forth:

and (2) The number of households in this State who live in attainable housing units that are owned or managed by the - *AB540_R1* – 19 – nonprofit organization or any affiliate of the nonprofit organization;

If the board of county commissioners receives more than one application for conveyance of the property, the board must give priority to an application of a nonprofit organization that demonstrates to the satisfaction of the board that the organization or its assignee will use the property to develop [affordable] attainable housinghou4.] for5. persons who are seniors or disabled .

[orIf elderly.the board of county commissioners approves anrly.

4.]application 5.for conveyance, it may convey the property to the nonprofit organization without consideration.

If the board of county commissioners approves an application for conveyance, it may convey the property to the nonprofit organization without consideration.

- 83rd Session (2025) – 27 – (a) Repossessing the property from the nonprofit organization or its assignee.

(b) Transferring ownership of the property from the nonprofit organization or its assignee to another person or governmental entity thattha[6.] will7. use the property to provide [affordable] attainable housing.

[6.]The 7.agreement required by subsection [5] 6 must be housing.

The agreement required by subsection [5] 6 must be recorded in the office of the county recorder of the county in which the property is located and must specify:

and - *AB540_R1* – 20 – (b) The action that the board of county commissioners will take if the nonprofit organization or its assignee fails to use the property to provide [affordable] attainable housing pursuant to the agreement.

If, 5 years after the date of a conveyance pursuant to subsection [4,] 5, a nonprofit organization or its assignee has not commenced construction of [affordable] attainable housing, or entered into such contracts as are necessary to commence the construction of [affordable] attainable housing, the property that waswas[9.] 10.d aA board of county commissioners may subordinate the interest of the county in property conveyed automaticallypursuant revertsto subsection [4] 5 to a first or subsequent holder of a mortgage on that property to the county.extent the board deems necessary to promote investment in the construction of [affordable] attainable housing.

[9.] 10.

A board of county commissioners may subordinate the interest of the county in property conveyed pursuant to subsection [4] 5 to a first or subsequent holder of a mortgage on that property to the extent the board deems necessary to promote investment in the construction of [affordable] attainable housing.

A nonprofit organization may submit to the governing body of a city an application for conveyance of property that- is83rd ownedSession (2025) – 28 – by the city ifpursuant theto propertyNRS 268.008.perty was purchased or received by2. the city pursuant to NRS 268.008.

2.

- *AB540_R1* – 21 –  The hearing must be held not fewer than 10 days but not more than 40 days after the notice is published, mailed and posted in accordance with this subsection.

The governing body may approve such an application for conveyance if the nonprofit organization demonstrates to the satisfaction of the governing body that the organization or its assignee will use the property to develop [affordable] attainable housing.

and (c) A description of any previous project where the nonprofit organization has obtained additional federal low-income housing tax credits, as defined in NRS 360.863, or alternative financing for the rehabilitation or resyndication of attainable housing.

If the governing body receives more than one application for conveyance of the property, the governing body must give priority to an application of a nonprofit organization that demonstrates to the satisfaction of the governing body that the organization or its assignee- will83rd useSession the(2025) property– to29 develop– [affordable] attainable housing for persons who are seniors or disabled .

[or elderly.elderly.ble 4.] 5.

4.] 5.

-(a) *AB540_R1*Repossessing –the 22property –from (a)the Repossessingnonprofit organization or its(b) Transferring ownership of the property from the nonprofit organization or its assignee.assignee to another person or governmental entity that will use the property to provide [affordable] attainable housing.

(b) Transferring ownership of the property from the nonprofit organization or its assignee to another person or governmental entity that will use the property to provide [affordable] attainable housing.

(a) Prepare annually a list which includes a description of all property conveyed to a nonprofit organization pursuant to this section;

andandveyed to a nonprofit organization pursuant to this (b) Include the list in the annual audit of the city which is conducted pursuant to NRS 354.624.

[9.]- 10.83rd Session (2025) – 30 – city in property conveyed pursuant to subsection [4] 5 to a first or subsequent holder of a mortgage on that property to the extent the governing body deems necessary to promote investment in the construction of [affordable] attainable housing.

A governing body may subordinate the interest of the city in property conveyed pursuant to subsection [4] 5 to a first or subsequent holder of a mortgage on that property to the extent the governing body deems necessary to promote investment in the construction of [affordable] attainable housing.

Except as otherwise provided in this [subsection] section and NRS 268.048 to 268.058, inclusive, 268.063, 268.064, 278.479 to 278.4965, inclusive, and subsection 4 of NRS 496.080, except as otherwise provided by federal law, except as otherwise required pursuant to a cooperative agreement entered into pursuant to NRS 277.050 or 277.053 or an interlocal agreement in existence - *AB540_R1* – 23 – on October 1, 2004, except if the governing body is entering into a joint development agreement for real property owned by the city to which the governing body is a party, except for a lease of residential property with a term of 1 year or less, except for the sale or lease of real property to a public utility, as defined in NRS 704.020, to be used for a public purpose and except for the sale or lease of real property larger than 1 acre which is approved by the voters at a primary or general election, primary or general city election or special election:

(b) Before the governing body may sell or lease any real propertypropert(1) asPost providedcopies of the resolution described in paragraph (a),(a) itin shall:three public places in the city;

(1) Post copies of the resolution described in paragraph (a) in three public places in the city;

(II)- The83rd minimumSession price,(2025) if– applicable,31 of– the real property proposed to be sold or leased;

andandif applicable, of the real property (III) The places at which the resolution described in paragraph (a) has been posted pursuant to subparagraph (1), and any other places at which copies of that resolution may be obtained.

(2)appraised Ifvalue onlyof onethe independentreal appraisalproperty.praisal was obtained, the (d) If the real property is appraised valueat of$1,000 or more, the realgoverning property.body may:

(d)(1) IfLease the real propertyproperty; is appraised at $1,000 or more, the governing body may:

- *AB540_R1* – 24 – (1) Lease the real property;

(1) A person who owns real property located adjacent to the real property to be sold or leased if the governing body has determinedinterest byof resolutionthe thatcity and the salereal orproperty leaseis willa:will be in the best interest(I) ofRemnant thethat citywas andseparated from its original parcel due to the realconstruction propertyof isa a:street, alley, avenue or other thoroughfare, or portion thereof, flood control facility or other public facility;

(I) Remnant that was separated from its original parcel due to the construction of a street, alley, avenue or other thoroughfare, or portion thereof, flood control facility or other public facility;

or (III)- Parcel83rd whichSession is(2025) subject– to32 a– deed restriction prohibiting the use of the real property by anyone other than the person who owns real property adjacent to the real property offered for sale or lease.

(g) If real property that is offered for sale or lease pursuant to this section is not sold or leased at the initial offering of the contract for the sale or lease of the real property, the governing body may offer the real property for sale or lease a second time pursuant to this section.appraisals, as applicable, of the real property pursuant to the provisions of NRS 268.059 before offering the real property for sale or lease a second time if:

The governing body must obtain a new appraisal or appraisals, as applicable, of the real property pursuant to the provisions of NRS 268.059 before offering the real property for sale or lease a second time if:

or - *AB540_R1* – 25 – (2) The appraisal or appraisals, as applicable, were prepared more than 6 months before the date on which the real property is offered for sale or lease the second time.

(h) If real property that is offered for sale or lease pursuant to this section is not sold or leased at the second offering of the contract for the sale or lease of the real property, the governing body may list the real property for sale or lease at the appraised value or average of the appraised value if two or more appraisals were obtained, as applicable, with a licensed real estate broker, provided that the broker or a person related to the broker within the first degree of consanguinity or affinity does not have an interest in the real property or an adjoining property.

Before approving the sale or lease of real property owned by the city for the development of attainable housing, as defined in NRS 278.0105, in addition to complying with the provisions of subsection- 1,83rd theSession governing(2025) body– shall33 evaluate– the capacity and commitment of the developer to provide long-term benefits to the city in a manner that promotes transparency and does not interfere with equitable competition.

and (c) A description of any previous project where the developer has obtained additional federal low-income housing tax credits, as defined in NRS 360.863, or alternative financing for the rehabilitation or resyndication of attainable housing.

and - *AB540_R1* – 26 – (b) Any change to an ordinance or law governing the zoning or use of the real property is void if the change takes place within 5 years after the date of the void sale or lease.

Chapter 278 of NRS is hereby amended by adding thereto the provisions set forth as sections 29,29 30to and31, 31inclusive, of this act.

“Tier fourfive affordable housing” means housing for a household:

(a) Which has a total monthly gross income that is equal to more than 120 percent but not more than 150 percent of thethel to median monthly gross household income for the county in which the housing is located;

- 83rd Session (2025) – 34 – determined based upon the estimates of the United States Department of Housing and Urban Development of the most current median gross family income for the county in which the housing is located;

and (b) The cost of housing for a household determined pursuant to paragraph (b) of subsection 1 may be offset by cost savings to the household of energy efficiency measures.

Sec.

29.5.

1.

“Tier one affordable housing” means housing for a household:

(a) Which has a total monthly gross income that is equal to not more than 30 percent of the median monthly gross household income for the county in which the housing is located;

and (b) Which costs not more than 30 percent of the total monthly gross household income of a household whose income equals 30 percent of the median monthly gross household income for the county in which the housing is located, including the cost of uti2.tiFor purposes of this section:

Such expedited process must prioritize, to the extent practicable, the processing of projects for attainable housing in the county or city, as applicable, over all other projects and allow deviation from the current process for the consideration and approval of projectsprojectsrom for attainable housing.

- 83rd Session (2025) – 35 – 2.

Each reviewing agency shall adopt a process for the expedited review of and comment on a tentative map pursuant - *AB540_R1* – 27 – to NRS 278.330 to 278.3485, inclusive, that prioritizes the review of and comment on tentative maps that include attainable housing.housing.w 2.

2.

As used in this section, “reviewing agency” means any state agency, local government or quasi-governmental entity that is required to review tentative maps pursuant to NRS 278.330 to 278.3485,278(a) inclusive.The Division of Water Resources of the State Department of Conservation and Natural Resources;

The term includes, without limitation:

(a) The Division of Water Resources of the State Department of Conservation and Natural Resources;

and (m)- The83rd boardSession of(2025) trustees– of36 a– generalSec. improvement district.

Sec.

NRS 278.010 is hereby amended to read as follows:follows:t.

278.010 As used in NRS 278.010 to 278.630, inclusive, and sections 29,29 30to and31, 31inclusive, of this act, unless the context otherwise requires, the words and terms defined in NRS 278.0103 to - *AB540_R1* – 28 – 278.0195, inclusive, and sectionsections 29 and 29.5 of this act have the meanings ascribed to them in those sections.

278.0105 [“Affordable] “Attainable housing” means tier one affordable housing, tier two affordable housing,housing , [or] tier three affordable housing [.] or, tier four affordable housing or tier five affordable housing.

“Tier one[one] two affordable housing” means housing for a household:

(a) Which has a total monthly gross income that is equal to not more than 60 percent of the median monthly gross household income for the county in which the housing is located;

Sec.follows:35.

35.NRS 278.01904 is hereby amended to read as 278.01904 1.

NRS“Tier 278.01904[three] isfour herebyaffordable amendedhousing” tomeans readhousing asfor follows:a household:

278.01904 1.

“Tier three affordable housing” means housing for a household:

and (b) Which costs not more than 30 percent of the total monthly gross household income of a household whose income equals 120 percent- of83rd theSession median(2025) monthly– gross37 household– income for the county in which the housing is located, including the cost of utilities.

and - *AB540_R1* – 29 – (b) The costs of housing for a household determined pursuant to paragraph (b) of subsection 1 may be offset by the cost savings to the household of energy efficiency measures.

“Tier two[two] three affordable housing” means housing for a household:

(a) Which has a total monthly gross income that is equal to more than 60 percent but not more than 80 percent of the median monthly gross household income for the county in which the housing is located;

andandold income for the county in which the housing is (b) Which costs not more than 30 percent of the total monthly gross household income of a household whose income equals 80 percent of the median monthly gross household income for the county in which the housing is located, including the cost of utilities.

278.235required 1.to include the housing element in its master plan pursuant to NRS 278.150, the governing body, in carrying out the plan for maintaining and developing [affordable] attainable housing to meet the housing needs of the community, which is required to be included in the housing element pursuant to subparagraph (8) of paragraph (c) of subsection 1 of NRS 278.160, shall adopt at least six of the following measures:

If(a) theReducing governing, body[or] ofsubsidizing a city or countyreimbursing, is required to include the housing element in itswhole masteror plan pursuant to NRS 278.150, the governing body, in carryingpart outimpact thefees, planfees for maintaining and developing [affordable] attainable housing to meet the housingissuance needs of thebuilding community,permits whichcollected is- required83rd toSession be(2025) included– in38 the– housing element pursuant to subparagraphNRS (8)278.580 ofand paragraphfees (c)imposed offor subsectionthe 1purpose offor NRSwhich 278.160,an shallenterprise adoptfund atwas leastcreated. six of the following measures:

(a)(b) ReducingSelling ,land [or]owned subsidizingby orthe reimbursing,city in whole or incounty, partas impactapplicable, fees,to feesdevelopers exclusively for the issuancedevelopment of building[affordable] permitsvalue collectedof pursuantthe toland, NRSand 278.580requiring andthat feesany imposedsuch forsavings, thesubsidy purposeor forreduction whichin anprice enterprisebe fundpassed wason created.to the purchaser of housing in such a development.

(b) Selling land owned by the city or county, as applicable, to developers exclusively for the development of [affordable] attainable housing at not more than 10 percent of the appraised value of the land, and requiring that any such savings, subsidy or reduction in price be passed on to the purchaser of housing in such a development.

- *AB540_R1* – 30 – (c) Donating land owned by the city or county to a nonprofit organization to be used for [affordable] attainable housing.

(h) Providing money, support or density bonuses for [affordable] attainable housing developments that are financed, wholly or in part, with low-income housing tax credits, private activity bonds or money from a governmental entity for [affordable] attainable housing, including, without limitation, money received pursuant to 12 U.S.C.

(l) Providing money for supportive services necessary to enable persons with supportive housing needs to reside in [affordable] attainable housing in accordance with a need for supportive housing identified in the 5-year consolidated plan adopted by the United States Department of Housing and Urban Development for the city or- county83rd Session (2025) – 39 – Part 91.y pursuant to 42 U.S.C.

Part 91.

(a) [When the incomes of all the residents of the project for affordable housing are averaged, the housing would be affordable on average for a family with a total gross income that does not exceed 60 percent of the median gross income for the county - *AB540_R1* – 31 – concerned based upon the estimates of the United States Department of Housing and Urban Development of the most current median gross family income for the county.

(b) The governing body has adopted an ordinance that establishes the criteria that a project for affordable housing must satisfy to receive assistance in maintaining or developing the project for affordable housing.

Such criteria must be designed to put intointoject effect all relevant elements of the master plan adopted by the governing body pursuant to NRS 278.150.

3.body shall submit to the Housing Division of the Department ofng Business and Industry a report, in the form prescribed by the Housing Division, of how the measures adopted pursuant to subsection 1 assisted the city or county in maintaining and developing [affordable] attainable housing to meet the needs of the community for the preceding year.

On or before July 15 of each year, the governing body shall submit to the Housing Division of the Department of Business and Industry a report, in the form prescribed by the Housing Division, of how the measures adopted pursuant to subsection 1 assisted the city or county in maintaining and developing [affordable] attainable housing to meet the needs of the community for the preceding year.

The governing body shall cooperate with the Housing Division to ensure - 83rd Session (2025) – 40 – that the information contained in the report is appropriate for inclusion in, and can be effectively incorporated into, the statewide low-income housing database created pursuant to NRS 319.143.

On or before August[August] April 15 of each year, the Housing Division shall compile the reports submitted pursuant to subsection 3 and post the compilation on the Internet website of the HousingHousingon Division.

37.2.

NRS 349.294 is hereby amended to read as follows:

349.294 All moneys received from the issuance of any securities herein authorized shall be used solely for the purpose or purposes for which issued and to defray wholly or in part the cost of the project thereby delineated [.] , including, without limitation, any proceeds received from the general obligation bonds issued pursuant to section 49.7 of this act.

Any accrued interest and any premium shall be applied to the cost of the project or to the payment of the interest on or the principal of the securities, or both interest and principal, or shall be deposited in a reserve therefor, or any combination thereof, as the Commission may determine.

Sec.

37.5.

NRS 375.070 is hereby amended to read as follows:

375.070 1.

The county recorder shall transmit the proceeds of the tax imposed by NRS 375.020 at the end of each quarter in the following manner:

(a) An amount equal to that portion of the proceeds which is equivalent to 10 cents for each $500 of value or fraction thereof must be transmitted to the State Controller who shall deposit that amount in the Account for Affordable Housing created pursuant to NRS 319.500.

equal to that portion of the proceeds which is equivalent to 60 cents for each $500 of value or fraction thereof must be transmitted to the county treasurer for deposit in the county school district’s fund for capital projects established pursuant to NRS 387.328, to be held and expended in the same manner as other money deposited in that fund.

(c) The remaining proceeds must be transmitted to the State Controller for deposit in the Local Government Tax Distribution Account created by NRS 360.660 for credit to the respective accounts of Carson City and each county.

2.

In addition to any other authorized use of the proceeds it receives pursuant to subsection 1, a county or city may use the proceeds to pay expenses related to or incurred for the development of tier one affordable housing , [and] tier two affordable housing [.] , tier three affordable housing and tier four affordable housing.

A county or city that uses the proceeds in that manner must give - 83rd Session (2025) – 41 – two affordable housing , tier three affordable housing and tier fourier affordable housing for persons who are elderly or persons with disabilities.

3.

The expenses authorized by subsection 2 include, but are not limited to:

(a) The costs to acquire land and developmental rights;

(b) Related predevelopment expenses;

(c) The costs to develop the land, including the payment of related rebates;

(d) Contributions toward down payments made for the purchase of affordable housing;

and (e) The creation of related trust funds.

4.

As used in this section:

(a) “Tier one affordable housing” has the meaning ascribed to it in [NRS 278.01902.] section 29.5 of this act.

(b) “Tier two affordable housing” has the meaning ascribed to it in (c) “Tier three affordable housing” has the meaning ascribed to it in NRS 278.01906.

(d) “Tier four affordable housing” has the meaning ascribed to it in NRS 278.01904.

Sec.

- *AB540_R1* – 32 – (b) Holds a valid and unrestricted contractor’s license in the District of Columbia or any state or territory of the United States and the Board determines that the qualifications for that contractor’s license are substantially similar to the requirements forfor(c) theHas issuanceheld ofthe a contractor’s license described in thisparagraph State;(a) for at least 4 consecutive years;

(c) Has held the contractor’s license described in paragraph (a) for at least 4 consecutive years;

- 83rd Session (2025) – 42 – (f) Submits to the Board a complete set of his or her fingerprints and written permission authorizing the regulatory body to forward the fingerprints to the Central Repository for Nevada Records of Criminal History for submission to the Federal Bureauhas ofpreviously Investigationpassed fora itscomparable reportcriminal orbackground proofcheck;icant thatand the(g) applicantSubmits hasto previouslythe passedBoard athe comparablestatement criminalrequired backgroundby check;NRS 425.520.

and (g) Submits to the Board the statement required by NRS 425.520.

6.NRS 624.3015, a person who meets the requirements of 4 and 7 of paragraphs (b) to (e), inclusive, of subsection 1, may submit a bid on an attainable housing project or enter into a contractual agreement to perform work on an attainable housing project in a rural area for which a contractor’s license is required.

A contractor’s license by endorsement issued pursuant to this section expires on December 31, 2029.

An applicant for a contractor’s license by endorsement shall not perform any work on an attainable housing project until the Board has issued the applicant the contractor’s license by endorsement.

8.

A contractor’s license by endorsement issued pursuant to this section expires on December 31, 2029.

9.

-10. *AB540_R1* – 33 – 8.

(a)- “Attainable83rd housingSession project”(2025) has– the43 meaning– ascribed to it in section 4 of this act.act.roject” has the meaning ascribed to (b) “Rural area” means:

(b) “Rural area” means:

Upon the issuance of a declaration pursuant to subsection 1,contractors’ licenses to any applicant who:ssue provisional (a) Submits to the Board shallproof implementof a processcontractual agreement to issueperform provisionalwork contractors’on licensesan toattainable anyhousing applicantproject who:in a rural area for which a contractor’s license is required;

(a) Submits to the Board proof of a contractual agreement to perform work on an attainable housing project in a rural area for which a contractor’s license is required;

(e) Has not been disciplined by the corresponding regulatory authority of the District of Columbia or any state or territory of the United States in which the applicant currently holds or has held a contractor’s license;

(g) Submits to the Board a complete set of his or her fingerprints and written permission authorizing the regulatory body to forward the fingerprints to the Central Repository for - 83rd Session (2025) – 44 – Nevada Records of Criminal History for submission to the Federal - *AB540_R1* – 34 – Bureau of Investigation for its report or proof that the applicant has previously passed a comparable criminal background check;

and (h)NRS Submits425.520.ts to the Board the statement required by NRS3. 425.520.

3.

ANotwithstanding provisionalthe contractor’sprovisions licenseof issuedsubsections pursuant4 toand this7 sectionof expiresNRS 624.3015, a person who meets the requirements of on Decemberan 31,attainable 2029.housing project or enter into a contractualt a bid agreement to perform work on an attainable housing project in a rural area for which a contractor’s license is required.

TheAn Boardapplicant for a contractor’s license by endorsement shall adoptnot perform any regulationwork necessaryon toan carryattainable outhousing project until the provisionsBoard ofhas thisissued section.the applicant the contractor’s license by endorsement.

A provisional contractor’s license issued pursuant to this section expires on December 31, 2029.

10.

The Board shall adopt any regulation necessary to carry out the provisions of this section.

11.

(b)- “Attainable83rd housingSession project”(2025) – 45 – it in section 4 of this act.roject” has the meaning ascribed to (c) “Essential worker” has the meaning ascribed to it in section 47 of this act.

(c) “Essential worker” has the meaning ascribed to it in section 7 of this act.

[Under] Except as otherwise provided in section 39 or 40 of this act, under reasonable regulations adopted by the Board, the Board may investigate, classify and qualify applicants for - *AB540_R1* – 35 – contractors’ licenses by written or oral examinations, or both, and may issue contractors’ licenses to qualified applicants.

The examinations may, in the discretion of the Board, be given in specificspe2.ficIf classificationsa only.natural person passes the technical examination given by the Board on or after July 1, 1985, to qualify for a classification established pursuant to this chapter, demonstrates to the Board the degree of experience and knowledge required in the regulations of the Board, and is granted a license, the person is qualified for a master’s license, if issued by any political subdivision, in the classification for which the examination was given, if the examination required the person to demonstrate his or her knowledge and ability to:

2.

If a natural person passes the technical examination given by the Board on or after July 1, 1985, to qualify for a classification established pursuant to this chapter, demonstrates to the Board the degree of experience and knowledge required in the regulations of the Board, and is granted a license, the person is qualified for a master’s license, if issued by any political subdivision, in the classification for which the examination was given, if the examination required the person to demonstrate his or her knowledge and ability to:

If a natural person qualified for a license before July 1, 1985, in accordance with NRS 624.260 in a trade for which a master’s license is required by any political subdivision, and if the license is active on or after July 1, 1985, and if the person so qualified wishes to obtain a master’s license, the person must pass either the appropriate examination given by the Board on or after July 1, 1985, in accordance with NRS 624.260 and the regulations of the Board, or the examination given by the political subdivision in the trade for which a master’s license is required.

Sec.- 83rd Session (2025) – 46 – 624.250 1.

42.

NRS 624.250 is hereby amended to read as follows:

624.250 1.

(f) If the applicant is a corporation, the names and physical and mailing addresses of the president, secretary, treasurer, any officers - *AB540_R1* – 36 – responsible for contracting activities in this State, any officersofficerscers responsible for renewing the license of the applicant, any persons used by the applicant to qualify pursuant to NRS 624.260 and any other persons required by the Board.

2.

The application must be:

- 83rd Session (2025) – 47 – 3.

The application form must state in a clear and conspicuous manner that a contribution to the Construction Education Account is voluntary and is in additionadditiono to any fees required for licensure.

- *AB540_R1* – 37 – Sec.

[An] Except as otherwise provided in this subsection, an additional application and license fee may be charged for qualifying of the Department of Business and Industry issues a declaration ofrector shortage pursuant to section 40 of this act, the Board shall not charge any additional application and license fee for qualifying or classifying a licensee in additional classifications.classifications in a rural area until the declaration of shortage is no longer in effect.

If the Director of the Department of Business and Industry issues a declaration of shortage pursuant to section 40 of this act, the Board shall not charge any additional application and license fee for qualifying or classifying a licensee in additional classifications in a rural area until the declaration of shortage is no longer in effect.

Lack of character may be established by showing that the applicant or licensed contractor, any officer, director, partner or associate- thereof,83rd Session (2025) – 48 – applicant has:eof, or any person who qualifies on behalf of the applicant(a) has:Committed any act which would be grounds for the denial, suspension or revocation of a contractor’s license;

(a) Committed any act which would be grounds for the denial, suspension or revocation of a contractor’s license;

Upon the request of the Board, an applicant for a contractor’s license, any officer, director, partner or associate of the applicant and any person who qualifies on behalf of the applicant pursuant to subsection 2 of NRS 624.260 must submit to the BoardBoardt completed fingerprint cards and a form authorizing an investigation of the applicant’s background and the submission of the fingerprints to the Central Repository for Nevada Records of Criminal History and the Federal Bureau of Investigation.

The fingerprint cards and - *AB540_R1* – 38 – authorization form submitted must be those that are provided to the applicant by the Board.

[The] Except as otherwise provided in this subsection, the fee must not exceed the sum of the amounts charged by the Central Repository for Nevada Records of Criminal History and the Federal Bureau of Investigation for processing the fingerprints.

- 83rd Session (2025) – 49 – 5.

(b)(c) GuiltySentencing;guilty and guilty but mentally ill pleas;

(c) Sentencing;

- *AB540_R1* – 39 – 3.

[In] Except as otherwise provided in this section, in addition to the fee required pursuant to subsection 1, the applicant shallby reimburse the Board forin processing the actualapplication.sts costs and expenses incurred by4. the Board in processing the application.

4.

[Each] Except as otherwise provided in sections 39 and 40 of this act, each license issued under the provisions of this chapter expires 2 years after the date on which it is issued, except- that83rd theSession Board(2025) may– by50 regulation– prescribe shorter or longer periods and prorated fees to establish a system of staggered biennial renewals.

Except as otherwise provided in subsection 5, if a license is automatically suspended pursuant to subsection 1, the licensee may have the license reinstated upon filing an application for renewal within 6 months after the date of suspension and paying, in addition - *AB540_R1* – 40 – to the fee for renewal, a fee for reinstatement fixed by the Board, if the licensee is otherwise in good standing and there are no complaints pending against the licensee.

If the licensee is otherwise not in good standing or there is a complaint pending, the Board shall require the licensee to provide a current financial statement prepared by an independent certified public accountant or establish other conditionsaccompanied forby reinstatement.all information required to complete the renewal.

An application for renewal must be accompanied by all information required to complete the renewal.

If a license is automatically suspended pursuant to subsection 1 while the licensee was on active duty as a member of the Armed Forces of the United States, a reserve component thereof or the National Guard, the licensee may submit an application to the Board- requesting83rd theSession reinstatement(2025) of– his51 or– her license without the imposition of any penalty, punishment or disciplinary actionactionhout the authorized by the provisions of this chapter.

and (b) The licensee provides written documentation satisfactory to the Board substantiating his or her claim of service on active duty in the Armed Forces of the United States, a reserve component thereofthereofy in or the National Guard.

- *AB540_R1* – 41 – Sec.

All money that is collecteddeposited forin the useAccount.the of the Account from any source must be deposited2. in the Account.

2.The money in the Nevada Attainable Housing Account must be used for the purposes described in section of this act.

The money in the Nevada Attainable Housing Account must be used for the purposes described in section 10 of this act.

- 83rd Session (2025) – 52 – 4.

[Any] Except as otherwise provided in subsection 6, any money remaining in the Account at the end of the fiscal year must remain in the Account and does not revert to thethel State General Fund, and the balance in the Account must be carried forward to the next fiscal year.

At the end of each fiscal year, any money in the Account that exceeds $150,000,000$133,000,000 must be transferred to the State General Fund.

The State Contractors’ Board shall adopt any regulationact necessarybefore toJanuary carry1, 2026.ry out the provisions of section 40 of this act2. before January 1, 2026.

2.On or before December 31, 2028, the Board shall submit a report to the Governor and the Director of the Legislative Counsel Bureau for transmittal to the 85th Session of the Legislature that, without limitation:

On(a) orEvaluates before December 31, 2028, the Boardimpact shallin submitrural aareas reporton toattainable thehousing, Governorlocal businesses and theeconomic Directordevelopment ofthat thecan Legislativebe Counselattributed -to *AB540_R1*the –issuance 42of –provisional Bureaucontractor’s forlicenses transmittalpursuant to thesection 85th Session of thethis Legislatureact; that, without limitation:

(a) Evaluates the impact in rural areas on attainable housing, local businesses and economic development that can be attributed to the issuance of provisional contractor’s licenses pursuant to section 40 of this act;

49.5.

1.

Each governing body of a city or county shall submit to the Housing Division of the Department of Business and - 83rd Session (2025) – 53 – Industry the report required pursuant to subsection 3 of NRS 278.235, as that section existed on June 30, 2025, on or before July 15, 2025.

2.

On or before August 15, 2025, the Housing Division shall compilation on the Internet website of the Housing Division, asthe required pursuant to NRS 278.235, as that section existed on June 30, 2025.

3.

As used in this section, “governing body” has the meaning ascribed to it in NRS 278.015.

Sec.

49.7.

1.

The State Board of Finance shall issue general obligation bonds of the State of Nevada in the face amount of not more than $50,000,000 in the 2025-2027 biennium, the proceeds of which must be deposited in the Nevada Attainable Housing Infrastructure Account created by subsection 2 and used by the Housing Division of the Department of Business and Industry to make loans for the development or construction of a project:

(a) That will serve attainable housing that is located in a special improvement district or special assessment district;

and (b) For which not less than 85 percent of the total cost of developing or constructing the infrastructure will be paid from assessments levied within the district, or by the applicant, or any combination thereof.

2.

The Nevada Attainable Housing Infrastructure Account is hereby created in the State General Fund.

All money that is collected for the use of the Account from any source must be deposited in the Account.

The Account must be administered by the Hou3.

The proceeds of any bonds issued pursuant to subsection 1 that are deposited in the Nevada Attainable Housing Infrastructure Account must be used for the purposes set forth in subsection 1.

4.

Interest and income earned on money in the Nevada Attainable Housing Infrastructure Account, after deducting any applicable charges, must be credited to the Account.

5.

Any money remaining in the Nevada Attainable Housing Infrastructure Account at the end of the fiscal year must remain in the Account and does not revert to the State General Fund, and the balance in the Account must be carried forward to the next fiscal year.

6.

The Housing Division shall adopt regulations to carry out its duties set forth in subsection 1 and for the administration of the Nevada Attainable Housing Infrastructure Account, but such - 83rd Session (2025) – 54 – bonds issued pursuant to subsection 1 for forgivable loans.

the 7.

Each calendar year, if the uncommitted balance in the Nevada Attainable Housing Infrastructure Account exceeds $1,000,000, the Administrator of the Housing Division shall create an allocation plan for disbursing the money in the Account.

The allocation plan must prioritize projects that are committed to longer periods of affordability and that serve households that have a total monthly gross income that is more than 80 percent but not more than 120 percent of the median monthly gross household income for the county in which the attainable housing is located.

8.

Before adopting a proposed allocation plan pursuant to subsection 7, the Administrator of the Housing Division must:

(a) Hold at least one public hearing on the proposed allocation plan that complies with the provisions set forth in chapter 241 of NRS;

and (b) Make the proposed allocation plan available on the Internet public hearing held pursuant to paragraph (a).ys before the first 9.

The adoption of an allocation plan pursuant to subsection 7 must comply with the regulations adopted pursuant to subsection 6 but is not subject to the requirements of chapter 233B of NRS.

10.

A disbursement of money from the Nevada Attainable Housing Infrastructure Account pursuant to this section must be in the form of a loan and must comply with the allocation plan for the calendar year in which the disbursement is made.