2014 2:00:00 PM

Monday, August 25, 2014 2:00 PM
Council Chambers, Legislative Bldg, 745 4th St., Sparks

General Business: 9.1

Title: Consideration and possible adoption of Resolution No. 3263, a resolution authorizing the transfer of the City of Spark’s 2014 State Volume Bond Capacity of $4,850,938.14 to the Nevada Department of Business and Industry for their 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’ 2014 State Volume Bond Cap share of $4,850,938.14 to the Nevada Department of Business and Industry for their First Time Homebuyer Program provided by the Nevada Housing Division (NHD).

Financial Impact: None. The bonds will be issued by the State of Nevada.

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 2014 State Volume Bond Cap share ($4,850,938.14) 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 2014, the City of Sparks’ share of this equates to $4,850,938.14. 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 July 14, 2014 that they had no need for an allocation in 2014 and requested that the full allocation be made available to NHD. Accordingly, staff recommends full amount of the City’s 2014 capacity be allocated to NHD.

Analysis: Staff received a request from the Nevada Housing Division for the City’s 2014 volume cap to capitalize their respective First Time Homebuyer Program. NRHA and NHD have consistently and actively provided mortgage products to City of Sparks’ residents such as: * Down Payment Assistance * Grants * Mortgage Credit Certificates Last year combined community investment from NRHA and NHD totaled approximately $48,343,500.

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 to approve the adoption of Resolution No. 3263 to authorize the transfer of the City’s 2014 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:

City of Sparks - Certificate of Transfer - 2014.pdf

RESOLUTION DOCUMENT - AUGUST, 2014.pdf

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