AB37 - Revises provisions related to housing. (BDR 25-257)

(Reprinted with amendments adopted on April 21, 2025) FIRST REPRINT A.B. 37 - *AB37_R1* ASSEMBLY BILL NO. 37–COMMITTEE ON GOVERNMENT AFFAIRS (ON BEHALF OF THE HOUSING DIVISION OF THE DEPARTMENT OF BUSINESS AND INDUSTRY) PREFILED NOVEMBER 18, 2024 ____________ Referred to Committee on Government Affairs SUMMARY—Revises provisions related to housing. (BDR 25-257) 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. AN ACT relating to housing; renaming the position of Housing Advocate within the Housing Division of the Department of Business and Industry as the Housing Liaison; revising provisions relating to the statewide low-income housing database maintained by the Division; revising provisions relating to the Account for Affordable Housing; revising provisions governing the tiers of affordable housing; revising provisions relating to certain reports submitted to the Division by certain local governments relating to affordable housing; and providing other matters properly relating thereto. Legislative Counsel’s Digest: Existing law creates the Housing Division in the Department of Business and 1 Industry and charges the Division, among other duties, with responsibility for 2 increasing the availability of decent, safe and sanitary housing for persons of low 3 and moderate income in this State. (NRS 232.510; chapter 319 of NRS) Existing 4 law creates the position of Housing Advocate within the Division and establishes 5 the duties for the position, which include providing information and assistance to 6 persons who reside in affordable housing and manufactured housing. (NRS 7 319.141) Section 1 of this bill renames the position of Housing Advocate as the 8 Housing Liaison. 9 Existing law requires the Division to create and maintain a statewide low- 10 income housing database. The database is required to include certain information 11 relating to low-income housing, including compilations and analysis of 12 – 2 – - *AB37_R1* demographic, economic and housing data from a variety of sources. (NRS 319.143) 13 Section 2 of this bill requires the inclusion of any survey conducted by the Division 14 in the database. Section 2 also revises the data that is required to be included in the 15 database by: (1) changing the measure for determining the number of households in 16 various population groups experiencing high housing costs from 50 to 30 percent of 17 household income; (2) increasing from 2 years to 3 years the length of the planning 18 period for identifying when subsidized units are forecast to convert to market-rate 19 units; and (3) adding information regarding certain multi-family residential 20 housing. Section 2 further requires the Division, on or before December 31 of each 21 year, to analyze the data in the database and prepare and post on its website a report 22 of its analysis. 23 Existing law creates the Account for Affordable Housing in the State General 24 Fund, which is required to be administered by the Division, and prescribes the 25 distribution and use of money in the Account. (NRS 319.500, 319.510) Under 26 existing law, the costs to create and maintain the statewide low-income housing 27 database are required to be paid from the Account up to a maximum of $175,000 28 per year. (NRS 319.143, 319.510) Sections 2 and 3 of this bill: (1) require payment 29 from the Account of the costs to prepare the new annual report required by section 30 2; and (2) change the maximum annual amount authorized from the Account for the 31 payment of costs related to the database from the fixed amount of $175,000 to not 32 more than 6 percent of the money deposited in the Account in each fiscal year. 33 Existing law also authorizes the Division to expend not more than $40,000 per 34 year or an amount equal to 6 percent of money received pursuant to the federal 35 HOME Investment Partnerships Act, whichever is greater, as reimbursement for 36 administering the Account and that federal money. (NRS 319.510; 42 U.S.C. §§ 37 12701 et seq.) Section 3: (1) eliminates the authority of the Division to receive 38 reimbursement from the Account for administering that federal money; and (2) 39 changes the maximum amount authorized from the Account as reimbursement for 40 administering the Account to not more than 6 percent of the money deposited in the 41 Account in each fiscal year. 42 Existing law requires the Division to distribute a certain portion of the 43 remaining money in the Account to the Division of Welfare and Supportive 44 Services of the Department of Health and Human Services for a program to provide 45 emergency assistance to needy families with children. (NRS 319.510) Section 3 46 eliminates this required distribution to the Division for this program, but 47 specifically authorizes the use of money in the Account for the same purpose. With 48 the elimination of this distribution to the Division, all of the remaining money in 49 the Account will effectively be distributed to the other authorized recipients in 50 existing law, which are certain charitable organizations, housing authorities and 51 local governments for the acquisition, construction and rehabilitation of affordable 52 housing for eligible families, subject to certain requirements. One such eligibility 53 requirement in existing law is that not less than 15 percent of the units acquired, 54 constructed or rehabilitated be affordable to persons whose income is at or below 55 the federally designated level signifying poverty. (NRS 319.510) Section 3: (1) 56 changes the income level for that requirement to at or below 30 percent of the 57 median monthly gross household income for the applicable county; and (2) clarifies 58 that the money is authorized to be distributed to one or more of the types of entities 59 that are eligible recipients. Section 3 also eliminates the eligibility requirement in 60 existing law that a local government sponsor such a project. 61 Existing law establishes three tiers of affordable housing for various purposes 62 in existing law and defines “affordable housing” as housing that falls within any of 63 the three tiers. (NRS 232.860, 244.189, 244.287, 268.058, 268.190, 278.0105, 64 279.385, 279A.020, 279B.020, 315.9625, 319.042) Under existing law, the tiers are 65 based on both household income and the costs of housing as a percentage of that 66 income. With respect to household income: (1) “tier one affordable housing” is 67 – 3 – - *AB37_R1* housing for a household which has a total monthly gross income that is equal to not 68 more than 60 percent of the median monthly gross household income for the county 69 in which the housing is located, which is commonly known as the area median 70 household income; (2) “tier two affordable housing” is housing for a household 71 which has a total monthly gross income that is equal to more than 60 percent but 72 not more than 80 percent of the area median household income; and (3) “tier three 73 affordable housing” is housing for a household which has a total monthly gross 74 income that is equal to more than 80 percent but not more than 120 percent of the 75 area median household income. In addition, with respect to the costs of housing, 76 affordable housing under existing law is housing that costs not more than 30 77 percent of the total monthly gross household income of the household with an 78 income at the maximum percentage of the area median household income for the 79 tier. (NRS 278.01902, 278.01904, 278,01906) Section 4 of this bill creates a new 80 tier of affordable housing, to be known as “tier one affordable housing,” that 81 addresses housing for a household that has a total monthly gross income that is 82 equal to not more than 30 percent of the area median household income. As a result 83 of the creation of this new tier of affordable housing, section 7 of this bill renames 84 “tier one affordable housing” in existing law as “tier two affordable housing” and 85 changes the percentage range for median income for that tier to more than 30 86 percent but not more than 60 percent of the area median household income. Section 87 9 of this bill renames “tier two affordable housing” in existing law, for which the 88 percentage range for median income is more than 60 percent but not more than 80 89 percent of the area median household income, as “tier three affordable housing.” 90 Section 8 of this bill renames “tier three affordable housing” in existing law, for 91 which the percentage range for median income is more than 80 percent but not 92 more than 120 percent of the area median household income, as “tier four 93 affordable housing.” Section 4.5 of this bill creates another new tier of affordable 94 housing, to be known as “tier five affordable housing,” that addresses housing for a 95 household that has a total monthly gross income that is equal to more than 120 96 percent but not more than 150 percent of the area median household income. 97 Section 5 of this bill applies the newly defined terms in sections 4 and 4.5 to the 98 provisions of existing law relating to planning and zoning. Section 11 of this bill 99 makes conforming changes to existing law to reflect the new tiers. 100 Section 6 of this bill renames “affordable housing” as “attainable housing” and 101 includes “tier four affordable housing” and “tier five affordable housing” within its 102 meaning. Sections 2 and 10 of this bill make conforming changes to reflect the 103 new name. 104 Existing law requires the governing body of certain cities or counties to submit 105 to the Division annual progress reports relating to affordable housing. (NRS 106 278.235) Existing law requires: (1) the inclusion of these reports in the statewide 107 low-income housing database; and (2) the Division to compile and post these 108 reports on its Internet website. (NRS 278.235, 319.143) Section 10 moves the 109 deadline for: (1) the submission of the reports to the Division from 110 July 15 to March 15; and (2) the posting of the compilation of the reports by the 111 Division from August 15 to April 15. Because the change in the deadlines is not 112 effective until October 1, 2025, pursuant to section 14 of this bill, the new 113 deadlines apply initially to the reports submitted in 2026. 114 – 4 – - *AB37_R1* THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS: Section 1. NRS 319.141 is hereby amended to read as follows: 1 319.141 1. The Housing [Advocate] Liaison is hereby 2 created within the Division. 3 2. The Administrator shall appoint a person to serve in the 4 position of Housing [Advocate.] Liaison. The Housing [Advocate] 5 Liaison is in the unclassified service of the State and serves at the 6 pleasure of the Administrator. 7 3. The person so appointed pursuant to subsection 2 must be 8 knowledgeable about affordable housing and manufactured housing. 9 4. The Housing [Advocate] Liaison shall: 10 (a) Respond to written and telephonic inquiries received from 11 residents who reside in affordable housing and manufactured 12 housing and provide assistance to such residents in understanding 13 their rights and responsibilities; 14 (b) Conduct community outreach and provide information 15 concerning housing to residents who reside in affordable housing 16 and manufactured housing; 17 (c) Identify and investigate complaints of residents of affordable 18 housing and manufactured housing that relate to their housing and 19 provide assistance to such residents to resolve the complaints; 20 (d) Establish and maintain a system to collect and maintain 21 information pertaining to written and telephonic inquiries received 22 by the Division; and 23 (e) [Any] Perform any other duties specified by the 24 Administrator. 25 5. The Administrator may remove the Housing [Advocate] 26 Liaison from the office for any reason not prohibited by law. 27 Sec. 2. NRS 319.143 is hereby amended to read as follows: 28 319.143 1. The Division shall create and maintain a statewide 29 low-income housing database. 30 2. The database must include, without limitation, the 31 compilation [and analysis] of demographic, economic and housing 32 data from a variety of sources, including, without limitation, reports 33 submitted pursuant to NRS 278.235 [, that:] and any survey 34 conducted by the Division, relating to the information that must be 35 included in the report required by subsection 3. 36 3. On or before December 31 of each year, the Division shall: 37 (a) [Provides for an annual assessment of] Analyze the data in 38 the database and prepare a report which must: 39 (1) Assess the affordable housing market at the city and 40 county level, including data relating to housing units, age of 41 housing, rental rates and rental vacancy rates, new home sales and 42 – 5 – - *AB37_R1* resale of homes, new construction permits, mobile homes, lots 1 available for mobile homes and conversions of multifamily 2 condominiums; 3 [(b) Addresses] 4 (2) Address the housing needs of various population groups 5 in Nevada, such as households that rent, homeowners, elderly 6 households, veterans, persons with disabilities or special needs, 7 homeless persons, recovering persons with a substance use disorder, 8 persons suffering from mental health ailments and victims of 9 domestic violence, with each group distinguished to show the 10 percentage of the population group at different income levels, and a 11 determination of the number of households within each special- 12 needs group experiencing housing costs greater than [50] 30 percent 13 of their income, overcrowding or substandard housing; 14 [(c) Contains] 15 (3) Contain an estimate of the number and condition of 16 subsidized and other low-income housing units at the county level 17 and the identification of any subsidized units that are forecast to 18 convert to market-rate units within a [2-year] 3-year planning 19 period; 20 [(d) Provides] 21 (4) Provide a demographic and economic overview by local 22 and county jurisdiction, if feasible, for the population of Nevada, 23 including age, race and ethnicity, household size, migration, current 24 and forecast employment, household income and a summary 25 relating to the effects of demographics and economic factors on 26 housing demand [Text truncated for display. 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