S.B. 393 - *SB393* SENATE BILL NO. 393–SENATOR NEAL MARCH 17, 2025 ____________ Referred to Committee on Revenue and Economic Development SUMMARY—Revises the Windsor Park Environmental Justice Act. (BDR S-701) FISCAL NOTE: Effect on Local Government: No. Effect on the State: No. ~ EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted. AN ACT relating to housing; revising the Windsor Park Environmental Justice Act; clarifying the boundaries of the Windsor Park neighborhood for the purposes of determining eligibility to participate in the program established by the Act; revising the requirement that to be eligible to acquire a new single-family residence under the Act, a person must own a single-family residence in the Windsor Park neighborhood on a certain date; authorizing the owner of a vacant lot in the Windsor Park neighborhood to exchange the vacant lot under the program; providing certain methods to establish ownership of a single-family residence in the Windsor Park neighborhood for the purposes of the Act; revising provisions governing the property taxes levied on a single-family residence acquired under the Act; revising provisions governing the use of certain money for the purposes of the Act; extending the reversion date of appropriations made for the purposes of the Act; and providing other matters properly relating thereto. Legislative Counsel’s Digest: Existing law contains the Windsor Park Environmental Justice Act, which 1 establishes a program for the relocation of persons residing in the Windsor Park 2 neighborhood of the City of North Las Vegas whose residences have been damaged 3 by the sinking of the ground beneath the residences. (Chapter 531, Statutes of 4 Nevada 2023, at page 3538) Under the Act, the Housing Division of the 5 Department of Business and Industry is required to establish and administer a 6 – 2 – - *SB393* program by which the owner of a single-family residence in the Windsor Park 7 neighborhood who owns the residence on July 1, 2023, may exchange the residence 8 in the Windsor Park neighborhood for a new residence constructed in accordance 9 with the Act. (Section 9 of chapter 531, Statutes of Nevada 2023, at page 3540) 10 This bill makes revisions to the Act. 11 Section 1 of this bill clarifies the boundaries of the Windsor Park neighborhood 12 for the purposes of determining the owners of single-family residences or vacant 13 lots who are eligible to participate in the program. Section 2 of this bill: (1) 14 requires that to be eligible to participate in the program, an owner of a single-family 15 residence or vacant lot in the Windsor Park neighborhood must have owned that 16 single-family residence or lot on December 31, 2023, rather than July 1, 2023; (2) 17 authorizes an owner of a vacant lot in the Windsor Park neighborhood to participate 18 in the program by exchanging the vacant lot for another vacant lot in an area as 19 near as reasonably practicable to the Windsor Park neighborhood; (3) authorizes a 20 person who resides in the Windsor Park neighborhood to establish that he or she is 21 the owner of a single-family residence or a vacant lot in the Windsor Park 22 neighborhood and, thus, eligible to participate in the program, by executing an 23 affidavit, under penalty of perjury, that he or she acquired title to the single-family 24 residence or vacant lot from a deceased relative by operation of law; and (4) 25 provides that for the purposes of determining the amount of property taxes levied 26 on single-family residences acquired pursuant to the Act, the assessed value of such 27 residences must be determined as if such residences were not new improvements. 28 Section 3 of this bill: (1) requires that in addition to transferring the proceeds of 29 certain bonds to the Division, the City is required to transfer the interest on those 30 proceeds to the Division for the purposes of the program; and (2) removes the 31 requirement for the Division to pay moving expenses and restitution to owners of 32 single-family residences in the Windsor Park neighborhood from certain 33 Community Development Block Grant funds transferred to the Division and, 34 instead, authorizes those funds to be used by the Division to pay relocation 35 expenses for those persons. Section 4 of this bill provides that money appropriated 36 from the State General Fund for the purposes of the Act reverts at the end of the 37 2025-2027 biennium rather than at the end of the 2023-2025 biennium. 38 THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS: Section 1. Section 8 of the Windsor Park Environmental 1 Justice Act, being chapter 531, Statutes of Nevada 2023, at page 2 3540, is hereby amended to read as follows: 3 Sec. 8. “Windsor Park neighborhood” means the area of 4 the City lying north of West Cartier Street, west of Clayton 5 Street, east of Chamberlain Lane, and south of West Evans 6 Avenue. The area includes single-family residences and 7 vacant lots on the south side of West Cartier Street and 8 otherwise within the area defined in this section. 9 Sec. 2. Section 9 of the Windsor Park Environmental Justice 10 Act, being chapter 531, Statutes of Nevada 2023, at page 3540, is 11 hereby amended to read as follows: 12 Sec. 9. 1. The Housing Division shall establish and 13 administer a program pursuant to which the owner of [a] : 14 – 3 – - *SB393* (a) A single-family residence in the Windsor Park 1 neighborhood who owns that residence on [July 1,] 2 December 31, 2023, may exchange that single-family 3 residence for another single-family residence constructed in 4 accordance with this section. 5 (b) A vacant lot in the Windsor Park neighborhood who 6 owns that vacant lot on December 31, 2023, may exchange 7 that vacant lot for another vacant lot in an area as near as 8 reasonably practicable to the Windsor Park neighborhood 9 in accordance with this section. 10 For the purposes of the program established pursuant to 11 this section, a person may establish that he or she is the 12 owner of a single-family residence or a vacant lot in the 13 Windsor Park neighborhood by executing an affidavit, 14 under penalty of perjury, that he or she acquired title to the 15 single-family residence or vacant lot from a deceased 16 relative by operation of law. 17 2. The Housing Division shall apply for any available 18 grants of money from the Federal Government to carry out 19 the provisions of sections 1 to 9.7, inclusive, of this act and 20 shall select a governmental agency, nonprofit corporation or 21 other entity engaged in the development of affordable 22 housing to develop single-family residences on vacant land 23 [adjacent] in areas as near as reasonably practicable to the 24 Windsor Park neighborhood. The governmental agency, 25 nonprofit corporation or other entity selected by the Housing 26 Division pursuant to this subsection shall, in accordance with 27 a financing agreement entered into pursuant to subsection 5, 28 contract with qualified professionals for a study of vacant 29 land adjacent to the Windsor Park neighborhood that could be 30 acquired to ensure that such land will not subside, acquire 31 vacant land adjacent to the Windsor Park neighborhood if the 32 study finds that such land will not subside and enter into 33 contracts to develop and construct single-family residences 34 on that land. In awarding such contracts, a preference with a 35 relative weight of 5 percent must be assigned to an applicant 36 that is a business in which at least 50 percent of the interest is 37 owned by a resident or former resident of the Windsor Park 38 neighborhood. Any restriction on the price which the Housing 39 Division may pay to acquire a parcel of real property does not 40 apply to an acquisition pursuant to this section. 41 3. The number of single-family residences constructed 42 pursuant to this section must be sufficient in number to enable 43 each [household residing in] owner of a single-family 44 residence in the Windsor Park neighborhood on [July 1,] 45 – 4 – - *SB393* December 31, 2023, to obtain such a single-family residence, 1 and the single-family residences constructed pursuant to this 2 section must enable [a household residing in] an owner of a 3 single-family residence in the Windsor Park neighborhood on 4 [July 1,] December 31, 2023, to obtain a single-family 5 residence with at least the same amount of square footage as 6 the residence in the Windsor Park neighborhood. The 7 number of vacant lots acquired pursuant to this section 8 must be sufficient in number and size to enable each owner 9 of a vacant lot in the Windsor Park neighborhood who 10 owned a vacant lot in the Windsor Park neighborhood on 11 December 31, 2023, to exchange the vacant lot in the 12 Windsor Park neighborhood for a vacant lot with at least 13 the same number of acres as the vacant lot in the Windsor 14 Park neighborhood. 15 4. The City shall grant the employees and 16 representatives of the governmental entity, nonprofit 17 corporation or other entity selected by the Housing Division, 18 and the Housing Division, access to any right-of-way owned 19 or controlled by the City and access to any lots owned by the 20 City within the Windsor Park neighborhood when such access 21 is necessary to carry out the provisions of this section, and the 22 City shall not unreasonably withhold such access. 23 5. The governmental entity, nonprofit corporation or 24 other entity selected by the Housing Division pursuant to 25 subsection 2, the City and the Housing Division shall enter 26 into an agreement to finance the development and 27 construction of single-family residences pursuant to this 28 section. The agreement must require: 29 (a) The use of money appropriated or authorized by the 30 Legislature to the Housing Division for the purposes set forth 31 in this section. 32 (b) Any other money from any public or private source, 33 including, without limitation, any gift, grant, appropriation or 34 contribution, available to be used for the purposes set forth in 35 this section. 36 6. Upon acquisition of a vacant lot in the Windsor Park 37 neighborhood pursuant to this section, the owner of a 38 vacant lot in the Windsor Park neighborhood who owned 39 that vacant lot on December 31, 2023, may exchange the 40 vacant lot for a vacant lot acquired pursuant to this section 41 with at least the same number of acres as the vacant lot 42 being exchanged. Upon the issuance of a certificate of 43 occupancy for each single-family residence constructed 44 pursuant to this section, the owner of a single-family 45 – 5 – - *SB393* residence in the Windsor Park neighborhood who owns that 1 residence on [July 1,] December 31, 2023, may exchange that 2 single-family residence for a single-family residence which 3 was constructed pursuant to this section and which has at 4 least the same amount of square footage as the residence 5 being exchanged. If the single-family residence being 6 exchanged is: 7 (a) Encumbered by a mortgage or deed of trust, the 8 single-family residence may not be exchanged unless the 9 existing mortgage or deed of trust is paid in full. The Housing 10 Division shall provide assistance to arrange any financing 11 necessary to pay off the existing mortgage or deed of trust, 12 including, without limitation, any down payment assistance 13 available under any program administered by the Housing 14 Division. 15 (b) Leased to a tenant occupying the single-family 16 residence under a lease agreement, the lease agreement 17 remains in effect with the same terms and conditions. 18 Any single-family residence acquired pursuant to this 19 subsection may not be sold for a period of 5 years after the 20 single-family residence is acquired, except that such a single-21 family residence may be transferred in a transaction that is 22 exempt from the taxes imposed by chapter 375 of NRS 23 pursuant to NRS 375.090. 24 7. Until July 1, 2057, a single-family residence 25 acquired pursuant to subsection 6 is entitled to an 26 exemption from property taxes that is equal to the difference 27 between the assessed value of the single-family residence in 28 the Windsor Park neighborhood that was acquired pursuant 29 to subsection 6, as determined pursuant to NRS 361.225 and 30 361.227, and the assessed value that the single-family 31 residence would have had if it were not considered a new 32 improvement on the date on which the residence was 33 acquired. 34 8. The power, sewer and other connection fees imposed 35 by the City on a single-family residence in the Windsor Park 36 neighborhood must be transferred to a single-family residence 37 acquired pursuant to this section as the power, sewer and the 38 connections fees to be imposed on that single-family 39 residence. 40 [8.] 9. Any property in the Windsor Park neighborhood 41 that is exchanged pursuant to this section must be used only 42 for the purposes of a public park to memorialize the past and 43 present residents of the Windsor Park neighborhood. For the 44 purposes of creating such a public park, the governmental 45 – 6 – - *SB393* agency, nonprofit corporation or other entity selected by the 1 Housing Division pursuant to subsection 2 shall demolish 2 any residences transferred pursuant to this section. 3 Sec. 3. Section 9.3 of the Windsor Park Environmental Justice 4 Act, being chapter 531, Statutes of Nevada 2023, at page 3542, is 5 hereby amended to read as follows: 6 Sec. 9.3. 1. The Housing Division shall establish a 7 program to pay: 8 (a) The [moving] relocation expenses of [and restitution 9 to] the owners of single-family residences in the Windsor 10 Park neighborhood [in the manner set forth in this section.] 11 who acquire a single-family residence pursuant to section 9 12 of this act and who move from the Windsor Park 13 neighborhood to the acquired single-family residence. 14 (b) The cost of the rehabilitation of the homes constructed 15 with money received by the City from Community 16 Development Block Grants for the purpose of rehabilitating 17 homes in the Windsor Park neighborhood [.] in an amount 18 not to exceed $10,000 per single-family residence. 19 2. The City shall transfer to the Housing Division: 20 (a) Any remaining proceeds of general obligation bonds 21 issued by the City and purchased by the Federal National 22 Mortgage Association for the purpose of relocating residents 23 of the Windsor Park neighborhood [.] , and any remaining 24 interest on those proceeds. 25 (b) Any money remaining from Community Development 26 Block Grants awarded to the City for the purpose of 27 relocating residents in the Windsor Park neighborhood. 28 (c) Any money remaining from Community Development 29 Block Grants awarded to the City for the purpose of 30 constructing residences for the residents of the Windsor Park 31 neighborhood. 32 Any money received pursuant to this subsection must be 33 accounted for separately and may be used only to carry out 34 the provisions of this section. 35 3. [From amounts transferred to the Housing Division 36 pursuant to paragraphs (a) and (b) of subsection 2, the 37 Housing Division shall: 38 (a) Pay restitution in the amount of $50,000 to the owner 39 of a single-family residence in the Windsor Park 40 neighborhood who resides in the neighborhood on July 1, 41 2023, and who was the initial occupant of that single-family 42 residence, or to the descendants of that owner who inherited 43 the single-family residence from the initial occupant and who 44 reside in the single-family residence on July 1, 2023. 45 – 7 – - *SB393* (b) Pay restitution in the amount of $10,000 to the person 1 who was the initial occupant of a single-family residence in 2 the Windsor Park neighborhood, or to the descendants of that 3 person who inherited the single-family residence from the 4 initial occupant. 5 (c) Pay the actual moving expenses of a person who 6 acquires a single-family residence pursuant to section 9 of 7 this act and who moves from the Windsor Park neighborhood 8 to that acquired single-family residence. 9 4. From the amount transferred to the Housing Division 10 pursuant to paragraph (c) of subsection 2, the Housing 11 Division shall pay, in an amount not to exceed $10,000 per 12 single-family residence, the cost of rehabilitating a single-13 family residence constructed for a resident of the Windsor 14 Park neighborhood using money received by the City from a 15 Community Development Block Grant. The governmental 16 entity, nonprofit corporation or other entity selected by the 17 Housing Division pursuant to subsection 2 of section 9 of this 18 act shall inspect the single-family residence to determine 19 whether or not the rehabilitation has been satisfactorily 20 completed. 21 5.] To the extent that money transferred to the Housing 22 Division pursuant to subsection 2 is insufficient to make the 23 entire amount of the payments required by subsection [3 or 24 4,] 1, the Housing Division shall reduce such payments on a 25 pro rata basis. 26 Sec. 4. Section 11 of chapter 531, Statutes of Nevada 2023, at 27 page 3543, is hereby amended to read as follows: 28 Sec. 11. 1. There is hereby appropriated from the 29 State General Fund to the Housing Division of the 30 Department of Business and Industry the sum of $12,000,000 31 for the purposes set forth in sections 1 to 9.7, inclusive, of 32 this act. 33 2. Any remaining balance of the appropriation made by 34 subsection 1 must not be committed for expenditure after 35 June 30, [2025,] 2027, by the entity to which the 36 appropriation is made or any entity to which money from the 37 appropriation is granted or otherwise transferred in any 38 manner, and any portion of the appropriated money 39 remaining must not be spent for any purpose after 40 September [19, 2025,] 17, 2027, by either the entity to which 41 the money was appropriated or the entity to which the 42 money was subsequently granted or transferred, and must be 43 reverted to the State General Fund on or before 44 September [19, 2025.] 17, 2027. 45 – 8 – - *SB393* Sec. 5. This act become effective upon passage and approval. 1 H