Nevada § 271.6316 - Voluntary assessment and direct financing agreements

§ 271.6316. Voluntary assessment and direct financing agreements

1. Notwithstanding any other provision of this chapter, in order to impose an assessment

for a qualified improvement project, the municipality must enter into a written voluntary

assessment agreement with a property owner whereby the property owner: (a) Consents in writing to: (1) The specific amount of the assessment that will be imposed on the real property

for the qualified improvement project to secure repayment of: (I) The direct financing or refinancing provided by the capital provider for the qualified

improvement project, as set forth in the financing agreement; or (II) The repayment of any bonds issued pursuant to NRS 271.475 for the qualified improvement project; and (2) The placement of an assessment lien on the real property; and (b) Provides a written description of the tract to be assessed and the qualified improvements

included in the qualified improvement project that are to be financed or refinanced

by the capital provider and, if applicable, the bonds issued pursuant to NRS 271.475 . 2. Notwithstanding the execution of a voluntary assessment agreement pursuant to subsection

1, except for the imposition and amount of the assessment and the assessment lien,

in no event is the municipality responsible for the form of the voluntary assessment

agreement or any statement, term, provision or other matter contained in the voluntary

assessment agreement. 3. Each voluntary assessment agreement, and any substantive amendment thereto, must

be recorded in the office of the county recorder and, once recorded, is binding on

the owner who signed the voluntary assessment agreement and any other person who holds

any interest in the tract to which the voluntary assessment agreement relates regardless

of whether the interest in the tract came into existence before or after the recording

of the voluntary assessment agreement. 4. Any amendment to a voluntary assessment agreement must be executed by the property

owner and the municipality. If an amendment is a substantive change to the voluntary assessment agreement, the

amendment must be recorded. Any amendment is binding on the property owner and any other person who holds an

interest in the tract. 5. If a direct financing agreement is used to finance a qualified improvement project: (a) A municipality must assign the assessment and assessment lien, including, without

limitation, the right to receive payment in accordance with the terms of the financing

agreement, to the capital provider. (b) The capital provider is solely responsible for the billing, collection and the

enforcement of an assessment imposed on real property pursuant to NRS 271.6301 to 271.6325 , inclusive. (c) Delinquent payment of an assessment will result in the interest and penalties

set forth in the financing agreement. (d) Enforcement of a delinquent payment shall be by judicial foreclosure in the manner

of a mortgage. 6. Assessments not yet due must not be accelerated or eliminated by foreclosure. In the event of foreclosure, any liens securing the payment of general taxes must

be satisfied before the payment of outstanding or delinquent assessments. 7. An assessment lien placed on real property pursuant to NRS 271.6301 to 271.6325 , inclusive: (a) Is created by the voluntary assessment agreement between the municipality and

the property owner; and (b) Is not created by ordinance or resolution of the municipality.