Sparks City Council Meeting 8/22/2016 2:00:00 PM

    Monday, August 22, 2016 2:00 PM
    Council Chambers, Legislative Building, 745 Fourth Street, Sparks, NV

General Business: 9.3

Title: Consideration and possible adoption of Resolution No. 3301 authorizing the transfer of the City of Spark’s 2016 State Volume Bond Capacity of $4,890,856.59 to the Nevada Rural Housing Authority (NRHA) Single Family Programs in the City of Sparks and other communities.
Petitioner/Presenter: Community Services Department/George T. Graham, Housing Specialist
Recommendation: Staff recommends that City Council authorize the transfer of the City of Sparks’ 2016 State Volume Bond Cap share of $4,890,856.59 to the Nevada Rural Housing Authority (NRHA) Single Family Programs (see attached Certificate of Transfer).
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 2016 State Volume Bond Cap share ($4,890,856.59) to the Nevada Rural Housing Authority (NRHA) for their Single Family Programs.



Background:

Under the federal tax reform act enacted in 1986; the State of Nevada receives an annual allocation of tax exempt private activity bond cap (PABC) authority.  For 2016, the City of Sparks’ share of PABC equates to $4,890,856.59.  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 a specific 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 a request from NRHA on May 3, 2016 that they had a need of the City of Sparks PABC allocation to supplement their Single Family Programs (see attached letter dated May 3, 2016).  Accordingly, staff recommends the full amount of the City’s 2016 capacity be allocated to NRHA.



Analysis:

Staff received a request from the Nevada Rural Housing Authority (NRHA) for the City’s 2016 volume cap to capitalize their respective Single Family Housing Programs (see attached).  NRHA have consistently provided mortgage products to City of Sparks’ residents such as:

* Down Payment Assistance

* Grants

* Mortgage Credit Certificates

Over the past five years the NRHA has invested approximately $240.5 million in the Sparks community; assisting a total of 1,300 families in the City of Sparks.



Alternatives:

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 adopt Resolution No. 3301 to authorize the transfer of the City’s 2016 tax exempt bond volume capacity to the Nevada Rural Housing Authority for the purpose of supplementing their Single Family Housing Programs.



Attached Files:
     PABC Request Letter_Sparks.pdf
     R3301 Bond Capacity transfer.pdf
     Certificate of Transfer letter from Clerk 2016.pdf
     9.3 RHA handouts at meeting.pdf
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