1.  A governing body may designate a historic neighborhood in a county or city for the purpose of promoting the educational, cultural, economic and general welfare of the public through the preservation and protection of sites, buildings, structures and areas of historic interest. To be eligible for designation as a historic neighborhood, an area must:

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(a) Be subdivided or developed and consist of 10 or more residential dwelling units, of which at least two-thirds of such units must be 40 or more years of age; and

(b) Have been identified by the governing body as having a distinctive character or traditional quality that can be distinguished from surrounding areas or new developments in the vicinity. Such a character or quality may include, without limitation:

(1) Significance to the cultural, social, political or economic history of the area in which it is located;

(2) Association with a significant person, group or event in local, state or national history;

(3) Representation of an established and familiar visual feature of an area because of its location, design, architecture or singular physical appearance; or

(4) Meeting the criteria for eligibility for listing on the State or National Register of Historic Places.

2.  Before designating a historic neighborhood, the governing body shall hold a public hearing. Notice of the time and the place of the hearing, the purpose of the hearing and the boundaries of the proposed historic neighborhood must be posted in a manner that, at a minimum, satisfies the requirements of subsection 4 of NRS 241.020. At the hearing, any person may appear in support of or in opposition to the establishment of the proposed historic neighborhood.

3.  Within 15 days after the hearing, the governing body shall:

(a) Designate the historic neighborhood and fix its boundaries; or

(b) Determine not to establish the historic neighborhood.

4.  An ordinance under which a historic neighborhood is designated must, without limitation:

(a) Contain criteria which substantially achieve the preservation and protection of sites, buildings and structures of historic significance to the historic neighborhood; and

(b) Provide for a designated review board with the power to review proposed alterations to buildings and structures within the historic neighborhood.

5.  If a historic neighborhood is designated, the governing body may adopt any other ordinances that it determines are in the best interest of the historic neighborhood in accordance with the purposes expressed in subsection 1.