S.B. 193
- *SB193*
SENATE BILL NO. 193–SENATORS DOÑATE, NEAL, SCHEIBLE,
CANNIZZARO, OHRENSCHALL; CRUZ-CRAWFORD, DALY,
DONDERO LOOP, FLORES, LANGE, NGUYEN, PAZINA AND
TAYLOR
FEBRUARY 10, 2025
____________
Referred to Committee on Commerce and Labor
SUMMARY—Establishes a pilot program to reduce interest rates
on mortgage loans to certain eligible families.
(BDR 25-42)
FISCAL NOTE: Effect on Local Government: No.
Effect on the State: Contains Appropriation not included
in Executive Budget.
~
EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.
AN ACT relating to housing; requiring the Housing Division of the
Department of Business and Industry to establish a pilot
program to buy down the interest rate on mortgage loans
for certain eligible families; making an appropriation for
the pilot program; and providing other matters properly
relating thereto.
Legislative Counsel’s Digest:
Existing law authorizes the Housing Division of the Department of Business 1
and Industry to enter into instruments, agreements and other transactions for certain 2
purposes, including: (1) reducing or modifying the amount or duration of any 3
payment, interest rate, spread or similar risk; and (2) lowering the cost of borrowing 4
when used in combination with the issuance or carrying of bonds or investments. 5
(NRS 319.167) Section 1 of this bill requires the Division to establish a pilot 6
program for certain eligible families, which is defined to include certain single 7
persons or a person and his or her spouse, to buy down the interest rate of a 8
mortgage loan for an owner-occupied residence for such an eligible family in this 9
State. Section 1 requires the eligible family to: (1) have obtained or be in the 10
process of obtaining a mortgage loan on a residence for the eligible family; (2) 11
qualify as a first-time homebuyer; (3) with certain exceptions, have a household 12
income of not more than 160 percent of the median income for the county in this 13
State in which the residence is located; and (4) meet certain underwriting criteria. 14
Section 1 further provides that an eligible family may apply to the Division to 15
obtain a waiver of the household income requirement under certain circumstances. 16
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Section 2 of this bill makes an appropriation to the Division for the purpose of 17
establishing and carrying out the pilot program. 18
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. Chapter 319 of NRS is hereby amended by adding 1
thereto a new section to read as follows: 2
1. The Division shall, subject to the availability of funds 3
appropriated for such a purpose, establish a pilot program for 4
eligible families who meet the qualifications set forth in subsection 5
3 to buy down the interest rate of a mortgage loan for an owner-6
occupied residence in this State for the eligible family that is 7
obtained from any lending institution. 8
2. The pilot program established pursuant to subsection 1 9
must, without limitation: 10
(a) Include a process for an eligible family to apply to 11
participate in the program; 12
(b) Provide for a buy-down period for the mortgage loan which 13
may be up to the entire duration of the mortgage loan; and 14
(c) Notify any eligible family who applies for the program of 15
the maximum and estimated amount of increases in mortgage 16
payments that a mortgage loan subject to the program will require. 17
3. Except as otherwise provided in subsection 4, an eligible 18
family may receive assistance from the pilot program established 19
pursuant to subsection 1 if the eligible family: 20
(a) Has obtained or is in the process of obtaining a mortgage 21
loan from any lending institution for the purchase of an owner-22
occupied residence. 23
(b) Qualifies as a first-time homebuyer. An eligible family 24
qualifies as a first-time homebuyer if the eligible family: 25
(1) Is a single person or a person and his or her spouse and 26
the person or person and spouse, as applicable, has had no 27
ownership interest in any residential real property at any time 28
during the 3-year period immediately preceding the date on which 29
a mortgage for the residence is or will be executed; 30
(2) Is a single person who is a displaced homemaker and, 31
except for owning a home with his or her spouse or residing in a 32
home owned by his or her spouse, meets the requirements of 33
subparagraph (1); or 34
(3) Is a single person who is a single parent and who, 35
except for owning a home with his or her spouse or residing in a 36
home owned by his or her spouse while married, meets the 37
requirements of subparagraph (1). 38
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(c) Has a household income of not more than 160 percent of 1
the median income for the county in this State in which the 2
residence to be purchased is located. 3
(d) Meets any criteria for underwriting established by the 4
lending institution. 5
(e) Meets any other requirement prescribed by the Division by 6
regulation. 7
4. If an eligible family does not meet the household income 8
requirement set forth in paragraph (c) of subsection 3, the eligible 9
family may apply to the Division for a waiver if the eligible family 10
provides evidence to the satisfaction of the Administrator of: 11
(a) A temporary income spike during the current calendar year 12
resulting from, without limitation, a one-time bonus, overtime pay 13
or a temporary job. Such evidence must include, without 14
limitation, the federal tax returns for the household from the 15
immediately preceding 2 calendar years. 16
(b) A change in household income resulting from life events, 17
including, without limitation, a job loss or change, a pay 18
reduction, new dependents or the loss of an income-earning 19
member of the household. Such evidence must demonstrate that 20
the federal tax returns of the household for the immediately 21
preceding 2 calendar years do not reflect the current income of the 22
household and may include, without limitation, a letter from an 23
employer, employment termination documents, proof of 24
unemployment benefits, a birth or adoption certificate, proof-of-25
care documents or a divorce decree. 26
(c) Discrepancies in the yearly income of the household 27
resulting from self-employment. Such evidence must include, 28
without limitation, federal tax returns, profit and loss statements 29
or other tax forms from the immediately preceding 3 calendar or 30
fiscal years, as applicable, that demonstrate that the average 31
income of the household for those previous years falls within the 32
household income requirement set forth in paragraph (c) of 33
subsection 3. 34
(d) A financial hardship resulting from long-term medical or 35
disability expenses that is not reflected in the household income of 36
the eligible family. Such evidence must include, without limitation, 37
documentation of the medical expenses or disability. 38
(e) Errors in federal tax returns or other tax forms or tax 39
adjustments. Such evidence may include, without limitation, 40
corrected or amended federal tax returns or a letter from a tax 41
preparer. 42
5. The Division shall adopt regulations to carry out the 43
provisions of this section, which must include, without limitation: 44
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(a) The requirements for a lending institution to participate in 1
the program; and 2
(b) The procedures to apply for a waiver from the Division 3
pursuant to subsection 4. 4
6. As used in this section: 5
(a) “Buy down” means reducing the effective interest rate of a 6
mortgage loan charged to a purchaser of real property by making 7
supplemental payments to the mortgage lender. 8
(b) “Displaced homemaker” has the meaning ascribed to it in 9
42 U.S.C. § 12854. 10
(c) “Single parent” has the meaning ascribed to it in 42 U.S.C. 11
§ 12854. 12
Sec. 2. 1. There is hereby appropriated from the State 13
General Fund to the Housing Division of the Department of 14
Business and Industry the sum of $10,000,000 for establishing and 15
carrying out the pilot program to buy down interest rates on 16
mortgage loans for eligible families required by section 1 of this act. 17
2. Any remaining balance of the appropriation made by 18
subsection 1 must not be committed for expenditure after June 30, 19
2027, by the entity to which the appropriation is made or any entity 20
to which money from the appropriation is granted or otherwise 21
transferred in any manner, and any portion of the appropriated 22
money remaining must not be spent for any purpose after 23
September 17, 2027, by either the entity to which the money was 24
appropriated or the entity to which the money was subsequently 25
granted or transferred, and must be reverted to the State General 26
Fund on or before September 17, 2027. 27
Sec. 3. 1. This section and section 2 of this act become 28
effective upon passage and approval. 29
2. Section 1 of this act becomes effective: 30
(a) Upon passage and approval for the purpose of adopting any 31
regulations and performing any other preparatory administrative 32
tasks that are necessary to carry out the provisions of this act; and 33
(b) On January 1, 2026, for all other purposes. 34
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