Nevada § 268.058 - Conveyance of property to nonprofit organization for development of affordable housing: Application; public hearing; conditions; annual list of property conveyed; subordination of interest in property conveyed

§ 268.058. Conveyance of property to nonprofit organization for development of affordable housing: Application; public hearing; conditions; annual list of property conveyed; subordination of interest in property conveyed

1. A nonprofit organization may submit to the governing body of a city an application

for conveyance of property that is owned by the city if the property was purchased

or received by the city pursuant to NRS 268.008 . 2. Before the governing body makes a determination on such an application for conveyance,

it shall hold at least one public hearing on the application. Notice of the time, place and specific purpose of the hearing must be: (a) Published at least once in a newspaper of general circulation in the city. (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. (c) Posted in a conspicuous place on the property that is proposed for conveyance. 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. 3. 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 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 will use the property to develop affordable housing for persons who

are disabled or elderly. 4. If the governing body approves an application for conveyance, it may convey the

property to the nonprofit organization without consideration. Such a conveyance must not be in contravention of any condition in a gift or devise

of the property to the city. 5. As a condition to the conveyance of the property pursuant to subsection 4, the

governing body shall enter into an agreement with the nonprofit organization that

requires the nonprofit organization or its assignee to use the property to provide

affordable housing for at least 50 years. If the nonprofit organization or its assignee fails to use the property to provide

affordable housing pursuant to the agreement, the governing body may take reasonable

action to return the property to use as affordable housing, including, without limitation: (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 that will use the property to provide

affordable housing. 6. The agreement required by subsection 5 must be recorded in the office of the county

recorder of the county in which the property is located and must specify: (a) The number of years for which the nonprofit organization or its assignee must

use the property to provide affordable housing; and (b) The action that the governing body will take if the nonprofit organization or

its assignee fails to use the property to provide affordable housing pursuant to the

agreement. 7. A governing body that has conveyed property pursuant to subsection 4 shall: (a) Prepare annually a list which includes a description of all property conveyed

to a nonprofit organization pursuant to this section; and (b) Include the list in the annual audit of the city which is conducted pursuant to NRS 354.624 . 8. If, 5 years after the date of a conveyance pursuant to subsection 4, a nonprofit

organization or its assignee has not commenced construction of affordable housing,

or entered into such contracts as are necessary to commence the construction of affordable

housing, the property that was conveyed automatically reverts to the city. 9. A governing body may subordinate the interest of the city in property conveyed

pursuant to subsection 4 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 housing. 10. As used in this section, unless the context otherwise requires: (a) “Affordable housing” has the meaning ascribed to it in NRS 278.0105 . (b) “ Nonprofit organization ” means an organization that is recognized as exempt pursuant to 26 U.S.C. § 501(c)(3) .