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.

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.

The Council may elect to take no action at this time in which case the bond cap will automatically revert to the State.

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.