1. A governing body may create a district pursuant to NRS 271.6312 only if:

(a) The governing body has, pursuant to NRS 271.6325, adopted by resolution a procedure for the creation and administration of a district for the purpose of financing one or more energy efficiency improvement projects or renewable energy projects.

(b) Each owner of each tract on which an energy efficiency improvement project or renewable energy project will be located consents in writing to the location of the project on the tract and the levy of an assessment against the tract to pay all or a portion of the cost thereof in an amount up to the estimated maximum benefit to the tract from the installation or improvement. The estimated maximum benefit may not exceed the market value of the tract as determined by the governing body.

(c) Each consent provided pursuant to paragraph (b):

(1) Describes the tract to be assessed and the improvements to be financed;

(2) States the estimated maximum benefit that the owner agrees will be conferred on the tract by virtue of the installation or improvement; and

(3) Is accompanied by:

(I) A signed copy of each contract between an owner of the tract and each contractor described in NRS 271.6321 pursuant to which the contractor agrees to construct, acquire and install the installation or improvement identified in the consent at a total price which does not exceed the limitation set forth in NRS 271.6321 and which contains any terms, including, without limitation, application fees and costs, the total amount financed, annual percentage rate, total amount paid over the life of any assessment, any appraisal fees, bond-related costs, annual administrative fees, closing costs, credit reporting fees and recording fees, and such other terms not inconsistent with the provisions of NRS 271.6312 to 271.6325, inclusive, or with the resolution adopted pursuant to NRS 271.6325, as may be agreed upon by the owner of the tract and the contractor and is acceptable to the governing body; and

(II) A deposit in an amount determined in the manner specified in the resolution adopted pursuant to NRS 271.6325, which may be refunded if the project to which the consent relates is completed and is financed with assessments levied pursuant to this chapter within the period specified in the resolution.

(d) The outstanding amount owed on all recorded instruments which are liens against any tract included in the district does not exceed 90 percent of the estimated fair market value of the property assessed, as defined by the governing body, taking into account the imposition of the liens for assessments pursuant to NRS 271.6312 to 271.6325, inclusive, and the additional value added to the tract by a project financed pursuant to NRS 271.6312 to 271.6325, inclusive.

(e) Any lender who holds a lien on any tract on which an energy efficiency improvement project or renewable energy project will be located consents in writing to the levy of an assessment against the tract to pay all or a portion of the cost of the installation or improvement. A consent signed pursuant to this paragraph must be in a recordable form and is binding on the holder of a lien who signs the consent. A lender described in this paragraph is entitled, within 30 days after providing consent pursuant to this paragraph, to offer a loan to the owner of the tract as the primary lender on the new levy of an assessment.

2. Each consent provided pursuant to paragraph (b) of subsection 1 and each amendment thereto must be recorded in the office of the county recorder and, once recorded, is binding on the owner who signed the consent and any other person who holds any interest in the tract to which the consent relates and who signed the consent.

3. A district created pursuant to NRS 271.6312 may be created at any time as designated by a governing body, but must only include tracts for which a consent has been recorded pursuant to subsection 2.

4. As used in this section, “lender” means a mortgagee, the beneficiary of a deed of trust or other creditor who holds a mortgage, deed of trust or other instrument that encumbers a tract as security for the repayment of a loan used to purchase the tract.

(Added to NRS by 2017, 1394)