Carson City, NV October 31, 2024
Today, the Nevada Housing Division (NHD) announces that
$283.3 million of Nevada’s 2024 tax-exempt bonding authority has been earmarked
for the development of affordable housing projects throughout the state.
The investment comes as too many Nevadans are still
feeling the effects of the acute and ongoing housing affordability crisis.
“By utilizing
the State’s tax-exempt bonding authority for the creation and retention of
affordable housing, the Nevada Housing Division is playing a key role in
supporting Governor Lombardo’s goals for implementing policies, programs and
funding sources that encourage additional development,” said Department of
Business and Industry Director Dr. Kristopher Sanchez.
Currently, nine affordable housing projects with a total
of 1,411 units have been approved and are underway while an additional three
projects representing 720 units are pending Board of Finance approval.
According to Christine Hess, NHD CFO, “The utilization
of the volume cap is the State’s most effective means to scale the solution for
more affordable homes with below-market rents.”
The
Department of Business and Industry Director’s Office administers Nevada’s
tax-exempt private activity bond program to facilitate public and private
sector collaboration in financing eligible projects at below market interest
rates. Bonding authority can be used for projects such industrial
manufacturing, research and development facilities, civic and cultural
enterprises, nonprofit educational institutions, healthcare facilities and
affordable housing development.
A
significant share of Nevada’s tax-exempt bonding authority, which is calculated
every year based on the State’s population, has been transferred to NHD for
affordable housing projects. Since 2019, $1.35 billion
of tax-exempt bonding authority has been transferred to NHD, which
has been used to support new construction and rehabilitation of 6,474 housing
units.
Tax-exempt bond authority allocated to NHD is
used to incentivize private developers to increase the number of
affordable housing units built or existing units renovated by providing a
mechanism for financing projects with a lower cost of capital than conventional
financing can offer. Along with developer tax credits offered through the
Low-Income Housing Tax Credit program, these developments will remain
affordable, below-market residential rentals for a minimum of 30 years.
Qualified
low-income seniors and families can find listings for available market and
affordable housing rentals by visiting https://nvhousingsearch.org, a
comprehensive database maintained by NHD.
About
the Nevada Department of Business and Industry
The
Department of Business and Industry is a cabinet-level agency in Nevada State
government. Our objective is to encourage and promote the development and
growth of business and to ensure the legal operation of business to protect
consumers by maintaining a fair and competitive regulatory environment. To
learn more, visit http://business.nv.gov.
About
the Nevada Housing Division
The
Nevada Housing Division, a division of the Department of Business and Industry,
was created by the Nevada Legislature in 1975, with a mission to provide
affordable housing opportunities and improve the quality of life for Nevada
residents. They connect Nevadans with homes by providing financing to
developers to build affordable housing, innovative mortgage solutions and down
payment assistance programs and making homes more energy efficient, thereby
lowering utility expenses. To learn more, visit http://housing.nv.gov.
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