2012 2:00:00 PM

Monday, August 13, 2012 2:00 PM
Sparks Council Chambers, 745 4th Street, Sparks, NV

General Business: 6.6

Title: Consideration and possible adoption of Resolution #3219 authorizing the transfer of the City of Sparks’ 2012 State Volume Bond Capacity of $4,825,026.64 to the Nevada Department of Business and Industry for First Time Homebuyers Programs offered by the Nevada Housing Division (NHD) and Nevada Rural Housing Authority (NRHA) in the City of Sparks.

Petitioner/Presenter: Community Services/George Graham

Recommendation: Staff recommends Council authorize the transfer of the City of Sparks’ 2012 State Volume Bond Cap Share of $4,825,026.64 to the Nevada Department of Business and Industry for First Time Homebuyer Programs provided by the Nevada Housing Division (NHD) and Nevada Rural Housing Authority (NRHA). The bond capacity allocation is to be distributed on a 50%/50% basis to each entity.

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 report proposes the recommended allocation and transfer of the City’s 2012 State Volume Bond Cap Share ($4,825,026.64) to the Nevada Housing Division (NHD) and Nevada Rural Housing Authority (NRHA) for their respective First Time Homebuyers 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 volume authority. For 2012, the City of Sparks’ share of Private Activity Bonds (PAB) equates to $4,825,026.64. 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 recent years, including 2011 City Council has allocated their State Volume Cap for First Time Homebuyer Programs through the Nevada Housing Division (NHD) and the Nevada Rural Housing Authority (NRHA). NHD and NHRA use the proceeds from the sale of bonds to provide mortgages to first time homebuyers. Over the past year the Nevada Housing Division (NHD) and the Nevada Rural Housing Authority (NRHA) executed their First Time Homebuyer Programs in the City of Sparks with much success. As a result, the City of Sparks has been a major beneficiary with a total community investment of approximately $16,748,996 from the First Time Homebuyer Programs offered by NHD and NRHA combined. This community investment represents a 54% increase in First Time Homeowner activity from 2010, a positive indicator of housing market recovery in the Sparks community. The aforementioned successes of the two programs have proven to be a great asset to the Sparks community. Staff believes the availability of the two programs, which differ in a few ways, provides Sparks’ homeowners greater opportunity for affordable home ownership.

Analysis: Staff has received requests for the City’s volume cap from both the Nevada Housing Division (NHD) and Nevada Rural Housing Authority (NRHA) to capitalize their respective First Time Homebuyer Programs. NHD and NRHA have both demostrated success in implementing their respective programs in the Sparks community. Staff has not received any other requests for use of the City’s volume cap. Therefore, staff recommends a 50 – 50% allocation of the City’s cap to the Nevada Housing Division and Nevada Rural Housing Authority for their respective First Time Homebuyer Programs.

Alternatives: Alternatives to staff’s recommendation include: 1. The Council may choose to select either program to receive the full amount of $4,825,026.64 as both entities have expressed interest in Sparks’s share of the State Volume Bond Capacity. 2. 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 #3219 to authorize the transfer of the City’s 2012 tax exempt bond volume capacity to the Nevada Department of Business and Industry to be equally split between the Nevada Housing Division (NHD) and Nevada Rural Housing Authority (NRHA) for the purpose of supplementing their first time homebuyer programs in the Sparks community.

Attached Files:

RESOLUTION DOCUMENT - AUGUST, 2012.pdf

City of Sparks - Certificate of Transfer - 2012.pdf

Previous Item

Next Item

Return To Meeting