Existing law exempts from property taxes the portion of real property and tangible personal property that is used for housing and related facilities for persons with low incomes if the portion of property: (1) qualifies as a low-income unit that is part of a qualified low-income housing project; and (2) is funded in part by federal money appropriated under the federal HOME Investment Partnerships Act. (42 U.S.C. §§ 12701 et seq.; NRS 361.082) Section 1 of this bill expands this exemption to include the portion of property which: (1) qualifies as a low-income unit that is part of a qualified low-income housing project that is financed in whole or in part by the federal Low-Income Housing Tax Credit or money from the Account for Affordable Housing; or (2) is financed in part with money from the federal Housing Trust Fund and complies with the affordability requirements for units financed through the Housing Trust Fund. Existing law also exempts from property taxes real property and tangible personal property used exclusively for housing and related facilities for elderly persons or persons with disabilities if the property: (1) was financed by a loan under the federal Housing Act of 1959, as amended; and (2) is owned or operated by a nonprofit corporation. (12 U.S.C. § 1701q; NRS 361.086) Section 2 of this bill provides that the exemption for real property and tangible personal property used exclusively for housing and related facilities for elderly persons or persons with disabilities applies only to the portion of property which is used exclusively for housing and related facilities for very low-income elderly persons or very low-income persons with disabilities, as defined in federal law. (12 U.S.C. § 1701q, 42 U.S.C. § 8013) Section 2 expands the exemption to include the portion of property that was wholly or partially financed by a capital advance issued under the portion of the federal Cranston-Gonzalez National Affordable Housing Act, which authorizes capital advances for supportive housing for very low-income persons with disabilities. (42 U.S.C. § 8013) Section 2 establishes the method for calculating the portion of a property to which this exemption applies. The Nevada Constitution prohibits the Legislature from enacting an exemption from property taxes unless the Legislature makes certain findings regarding the benefits and effects of the exemption. (Nev. Const. Art. 10, § 6) Section 3 of this bill sets forth such findings of the Legislature with respect to the exemptions from property taxes expanded by this bill. Section 4 of this bill provides that the expanded exemptions set forth in sections 1 and 2 apply prospectively only to housing and related facilities approved on or after July 1, 2023, to receive financing under a program described in section 1 or 2.

Statutes affected:
As Introduced: 361.082, 361.086
As Enrolled: 361.082, 361.086
BDR: 361.082, 361.086