Read the full stored bill text
EXEMPT
(Reprinted with amendments adopted on May 28, 2025)
SECOND REPRINT S.B. 193
- *SB193_R2*
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 borrowers.
(BDR 25-42)
FISCAL NOTE: Effect on Local Government: No.
Effect on the State: Contain s 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 borrowers; 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 borrowers to buy down the interest rate of a 30-year 7
fixed-rate mortgage loan for an owner -occupied residence for such an eligible 8
borrower in this State. Section 1 requires the eligible borrower to: (1) be in the 9
process of obtaining his or her first mortgage loan on a residence for the eligible 10
borrower; (2) qualify as a first -time homebuyer; (3) with certain exceptions, have a 11
household income of not more than 160 percent of the median income for the 12
county in this State in which the residence is located; and (4) meet certain 13
underwriting criteria. Section 1 further authorizes the Division to establish a 14
process for an eligible borrower to obtain a waiver of the household income 15
requirement. 16
– 2 –
- *SB193_R2*
Section 2 of this bill makes an appropria tion 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 an 4
eligible borrower who meets the qualifications set forth in 5
subsection 3 to buy down the interest rate of a fixed-rate mortgage 6
loan with an amortization period of 30 years for an owner -7
occupied residence in this State for the eligible borrower that is 8
obtained from a lending institution approved by the Division in 9
accordance with any regulations adopted pursuant to subsection 5. 10
2. The pilot program established pursuant to subsection 1 11
must, without limitation: 12
(a) Include a process for an eligible borrower to apply to 13
participate in the program; and 14
(b) Provide for a buy down for the mortgage loan of the 15
eligible borrower. 16
3. Except as otherwise provided in subsection 4, an eligible 17
borrower may receive assistance from the pilot program 18
established pursuant to subsection 1 if the eligible borrower: 19
(a) Is in the process of obtaining his or her first mortgage loan 20
from a lending institution approved by the Division for the 21
purchase of an owner-occupied residence. 22
(b) Qualifies as a first -time homebuyer. An eligible borrower 23
qualifies as a first-time homebuyer if: 24
(1) The eligible borrower and, except as otherwi se provided 25
in subparagraphs (2) and (3), the spouse of the eligible borrower, 26
if applicable, have had no ownership interest in any residential 27
real property at any time during the 3 -year period immediately 28
preceding the date on which a mortgage for the residence is or will 29
be executed; 30
(2) The eligible borrower is a single person who is a 31
displaced homemaker and, except for owning a home with his or 32
her spouse or residing in a home owned by his or her spouse, 33
meets the requirements of subparagraph (1); or 34
(3) The eligible borrower is a single person who is a single 35
parent and who, except for owning a home with his or her spouse 36
or residing in a home owned by his or her spouse while married, 37
meets the requirements of subparagraph (1). 38
– 3 –
- *SB193_R2*
(c) Has a househ old 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 p rescribed by the Division by 6
regulation. 7
4. The Division may establish a process for an eligible 8
borrower who does not meet the household income requirement 9
set forth in paragraph (c) of subsection 3 to apply to the Division 10
for a waiver of that requirement. 11
5. The Division may adopt regulations to carry out the 12
provisions of this section, which may include, without limitation: 13
(a) The requirements for a lending institution to be approved 14
to participate in the program; and 15
(b) The procedures to apply for a waiver from the Division 16
pursuant to subsection 4. 17
6. As used in this section: 18
(a) “Buy down” means the permanent decrease of the interest 19
rate of a fixed-rate mortgage loan with an amortization period of 20
30 years. 21
(b) “Displaced homemaker” has the meaning ascribed to it in 22
42 U.S.C. § 12854. 23
(c) “Single parent” has the meaning ascribed to it in 42 U.S.C. 24
§ 12854. 25
Sec. 2. 1. There is hereby appropriated from the State 26
General Fund to the Housing Division of th e Department of 27
Business and Industry the sum of $10,000,000 for establishing and 28
carrying out the pilot program to buy down interest rates on 29
mortgage loans for eligible borrowers required by section 1 of this 30
act. 31
2. Any remaining balance of the appropriation made by 32
subsection 1 must not be committed for expenditure after June 30, 33
2027, by the entity to which the appropriation is made or any entity 34
to which money from the appropriation is granted or otherwise 35
transferred in any manner, and any portion of the appropriated 36
money remaining must not be spent for any purpose after 37
September 17, 2027, by either the entity to which the money was 38
appropriated or the entity to which the money was subsequently 39
granted or tr ansferred, and must be reverted to the State General 40
Fund on or before September 17, 2027. 41
Sec. 3. This act becomes effective on July 1, 2025. 42
H