2013 2:00:00 PM

Monday, August 26, 2013 2:00 PM
City Council Chambers, Legislative Building, 745 Fourth St, Sparks, NV

General Business: 6.8

Title: Consideration and possible adoption of Resolution No. 3245 authorizing the transfer of the City of Spark’s 2013 State Volume Bond Capacity of $4,787,115.21 to the Nevada Department of Business and Industry for the First Time Homebuyers Program offered by the Nevada Housing Division (NHD) in the City of Sparks.

Petitioner/Presenter: Community Services Department/George T. Graham, Housing Specialist

Recommendation: Staff recommends that City Council authorize the transfer of the City of Sparks’ 2013 State Volume Bond Cap share of $4,787,115.21 to the Nevada Department of Business and Industry for the First Time Homebuyer Program provided by the Nevada Housing Division (NHD).

Financial Impact: None. The bonds will be issued by the State of Nevada on behalf of the City of Sparks.

Business Impact (Per NRS 237):
A Business Impact Statement is not required because this is not a rule.

Agenda Item Brief: This agenda item proposes the allocation and transfer of the City’s 2013 State Volume Bond Cap share ($4,787,115.21) to the Nevada Housing Division (NHD) for their First Time Homebuyers program.

Background: Under the federal tax reform act enacted in 1986, the State of Nevada receives an annual allocation of tax exempt private activity bond volume authority. For 2013, the City of Sparks’ share of this equates to $4,787,115.21. The City Council may request (by resolution) that the State reserve the City’s allocation for a specific project, or a number of specific projects, or for program(s). In previous years, City Council has allocated their State Volume Cap for First Time Homebuyer Programs operated by the Nevada Housing Division (NHD) and/or the Nevada Rural Housing Authority (NRHA). This year, the City received notice from NRHA on May 15, 2013 that they had no need for an allocation in 2013 and requested that the full allocation be made to NHD. Accordingly, staff recommends full amount of the City’s 2013 capacity be allocated to NHD.

Analysis: Staff received a request from the Nevada Housing Division for the City’s 2013 volume cap to capitalize their respective First Time Homebuyer Program. NHD has consistently and actively provided mortgages to Sparks’s residents. Over the past three years NHD have provided approximately $13,314,512 in community investment in the form of mortgages and down payment assistance (2010 - $4,956,778.; 2011 - $5,986,000.; 2012 – $2,371,734.) and have assisted a total of 108 households in the City of Sparks over the three year time frame.

Alternatives: Alternatives to staff’s recommendation include: 1. The Council may elect to take no action at this time in which case the bond cap will automatically revert to the State.

Recommended Motion: I move for the adoption of Resolution No. 3245 to authorize the transfer of the City’s 2013 tax exempt bond volume capacity to the Nevada Department of Business and Industry to be allocated to the Nevada Housing Division (NHD) for the purpose of supplementing their first time homebuyer program.

Attached Files:

CommSvc026.PDF

CommSvc027.PDF

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