SB28 - Revises provisions relating to municipalities. (BDR 22-411)

- 83rd Session (2025) Senate Bill No. 28–Committee on Government Affairs CHAPTER.......... AN ACT relating to municipalities; establishing requirements for a tax increment area for certain projects relating to transportation or affordable housing; and providing other matters properly relating thereto. Legislative Counsel’s Digest: Existing law authorizes the governing body of a municipality to designate a tax increment area for the purpose of creating a special account for the payment of bonds or other securities to defray the cost of certain undertakings, which is defined to include various projects based on the mechanism used to create the tax increment area, including a drainage and flood control project, an overpass project, a sewerage project, a street project, an underpass project, a water project, a natural resources project or a rail project. The designation of a tax increment area provides for the allocation of a portion of the taxes levied upon taxable property in the tax increment area each year to pay the bond requirements of loans, money advanced to or indebtedness incurred by the municipality to finance or refinance the undertaking. (NRS 278C.140, 278C.150, 278C.250) Section 13 of this bill revises the definition of undertaking to include: (1) an affordable housing project; (2) a fixed guideway project; (3) a high-capacity transit project; (4) a multi-family housing project; (5) a transit-oriented development; and (6) a transportation project. Sections 3-11 of this bill define these projects and certain terms relating to these projects. Section 12 of this bill establishes requirements for a governing body of a municipality to order one of these undertakings, including that the tax increment area be located: (1) in an area designated for transit-oriented development or another land use specified in the master plan adopted by the governing body; and (2) not more than one-half mile from certain structures for a fixed guideway or high-capacity transit project. Section 12 also requires the governing body to ensure that the area chosen for the tax increment area meets certain other requirements. Section 12 further requires that if a governing body adopts an ordinance designating the tax increment area and ordering one of these undertakings: (1) the ordinance may include additional requirements for the tax increment area and undertaking; and (2) the governing body must file an exhibit with the ordinance that addresses the determination of the governing body that the area chosen for the tax increment area meets these requirements. EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted. THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS: Section 1. (Deleted by amendment.) – 2 – - 83rd Session (2025) Sec. 2. Chapter 278C of NRS is hereby amended by adding thereto the provisions set forth as sections 3 to 12, inclusive, of this act. Sec. 3. “Affordable housing” has the meaning ascribed to it in NRS 278.0105. Sec. 4. “Affordable housing project” means any land, building or other improvement and all real and personal properties necessary in connection therewith, whether or not in existence, suitable for affordable housing. Sec. 5. “Fixed guideway” has the meaning ascribed to it in NRS 277A.080. Sec. 6. “Fixed guideway project” means any project to design, build, equip, improve or operate and maintain a fixed guideway or any portion of a fixed guideway and all appurtenances and incidentals related thereto. For the purposes of this section, “project” has the meaning ascribed to it in NRS 277A.100. Sec. 7. “High-capacity transit” has the meaning ascribed to it in NRS 277A.400. Sec. 8. “High-capacity transit project” means any project to design, build, equip, improve or operate and maintain high- capacity transit or any portion of high-capacity transit and all appurtenances and incidentals related thereto. For the purposes of this section, “project” has the meaning ascribed to it in NRS 277A.100. Sec. 9. “Multi-family housing project” means any land, building or other improvement and all real and personal properties necessary in connection therewith, whether or not in existence, suitable for a land use or zone that contains a residential building containing five or more individual dwelling units. Sec. 10. “Transit-oriented development” means a land use or zone that includes a mix of integrated residential or commercial use types located in proximity to a fixed guideway or high-capacity transit. Sec. 11. “Transportation project” means any facilities for a municipal system of public transportation, including, without limitation, facilities for a fixed guideway, facilities for high- capacity transit, a passenger terminal, a parking facility and such other buildings, structures, improvements, furnishings and equipment related thereto. Sec. 12. 1. A tax increment area comprising a specially benefited zone designated pursuant to NRS 278C.150 that is – 3 – - 83rd Session (2025) ordered for an undertaking described in subsection 5 of NRS 278C.140, must be located: (a) In an area designated for transit-oriented development or other land use specified in the land use element of the master plan adopted by the governing body pursuant to NRS 278.150; and (b) Not more than one-half mile from a planned or constructed station, terminal or parking facility for a fixed guideway or high- capacity transit project. 2. In addition to the requirements of subsection 1, if a governing body of a municipality orders an undertaking described in subsection 5 of NRS 278C.140, the governing body must ensure that the area chosen for the tax increment area comprising the specially benefited zone: (a) Addresses all relevant elements of the master plan adopted by the governing body pursuant to NRS 278.150; (b) Encourages transit-oriented development, redevelopment and infill development and multi-family or affordable housing projects; (c) Encourages collaboration between the municipality, other municipalities and public agencies of this State; (d) Promotes the growth and use of public transportation; and (e) Increases access to employment or educational opportunities, or both. 3. If the governing body adopts an ordinance pursuant to NRS 278C.220 to create the tax increment area and tax increment account pertaining thereto for an undertaking described in subsection 5 of NRS 278C.140: (a) The ordinance may, if necessary, prescribe additional or conforming policies, regulations, restrictions or requirements relating to the tax increment area and undertaking, including, without limitation, any zoning regulations adopted pursuant to NRS 278.250; and (b) The governing body shall file with the ordinance an exhibit that addresses the determination of the governing body that the location of the tax increment area meets the requirements of subsections 1 and 2. Sec. 13. NRS 278C.140 is hereby amended to read as follows: 278C.140 “Undertaking” means any enterprise to acquire, improve or equip, or any combination thereof: 1. In the case of counties: (a) A drainage and flood control project, as defined in NRS 244A.027; (b) An overpass project, as defined in NRS 244A.037; – 4 – - 83rd Session (2025) (c) A sewerage project, as defined in NRS 244A.0505; (d) A street project, as defined in NRS 244A.053; (e) An underpass project, as defined in NRS 244A.055; or (f) A water project, as defined in NRS 244A.056. 2. In the case of cities: (a) A drainage project or flood control project, as defined in NRS 268.682; (b) An overpass project, as defined in NRS 268.700; (c) A sewerage project, as defined in NRS 268.714; (d) A street project, as defined in NRS 268.722; (e) An underpass project, as defined in NRS 268.726; or (f) A water project, as defined in NRS 268.728. 3. In the case of a city with respect to any tax increment area created pursuant to a cooperative agreement between the city and the Nevada System of Higher Education pursuant to NRS 278C.155, in addition to the projects described in subsection 2: (a) A project for any other infrastructure necessary or desirable for the principal campus of the Nevada State University that is approved by the Board of Regents of the University of Nevada; or (b) An educational facility or other capital project for the principal campus of the Nevada State University that is owned by the Nevada System of Higher Education and approved by the Board of Regents of the University of Nevada. 4. In the case of a county or city with respect to any tax increment area created by an ordinance adopted pursuant to NRS 278C.157, in addition to the projects described in subsections 1 and 2: (a) A natural resources project; or (b) A rail project. 5. In the case of a county or city with respect to any tax increment area created in accordance with the requirements set forth in section 12 of this act, in addition to the projects described in subsections 1 and 2: (a) An affordable housing project; (b) A fixed guideway project; (c) A high-capacity transit project; (d) A multi-family housing project; (e) A transit-oriented development; or (f) A transportation project. Sec. 14. This act becomes effective on July 1, 2025. 20 ~~~~~ 25