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Nevada Department of Business & Industry

HOUSING DIVISION

NEVADA HOUSING DIVISION Nevada's Housing Finance Agency

1535 Old Hot Springs Road, Suite 50 Carson City, NV 89706 Tel.: (775) 687-2040 Fax.: (775) 687-4040 Toll Free Number: (800) 227-4960 Email: [email protected]

Northern Nevada Office

1771 E. Flamingo Road, Suite 103-B Las Vegas, NV 89119 Tel.: (702) 486-7220 Fax.: (702) 486-7227 Email: [email protected] Website: www.nvhousing.state.nv.us Programs and Performances Fiscal Year 2006

Southern Nevada Office

Page 2 Nevada Housing Division

State of Nevada Dept. of Business & Industry

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The Nevada Housing Division Housing Finance Agency for the State of Nevada

Training

About HFAs

State Housing Finance Agencies (HFAs) are state-chartered authorities established to help meet the affordable housing needs of the residents of their states. The HFAs vary widely in characteristics in regard to their relationship to state government. Some are independent entities governed by a board of directors appointed by the state's governor. Others like the Nevada Housing Division are state agencies within state government. (The Housing Division is an agency within the State's Department of Business & Industry.)

NHD staff conducts annual training.

A one-day mandatory training session is held annually in Las Vegas and Reno. The training is designed to educate frontline staff, property managers and owners of low income tax credit properties on all critical compliance

LIHTC/Bond Program Oriented Training

areas for all NHD tax credit/bond financed properties. Areas covered include applicant/tenant eligibility, income determination and verification, full-time students, the next available rental, and all other documents critical for meeting IRS requirements.

Page 22 Nevada Housing Division

State of Nevada Dept. of Business & Industry

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Research

Rural Areas Key Points

Selected key findings from the 2nd Quarter 2006 survey for Nevada's rural areas reflect the following: 1. The two-bedroom size apartments are the most popular, representing 47% of the residential multifamily housing stock in rural Nevada. 2. The overall vacancy rate for the rural area is 6.2%, a change of ­.5% over 2005 data. 3. The rural area's data reflects a vacancy rate significantly higher than that experienced in the state's two larger urbanized areas. 4. The highest vacancy rate is for those units constructed between 1975 and 1979. 5. The highest vacancy rate is in the one­bedroom and three-bedroom size units. 6. The SRO and studio-size units show the lowest vacancy rates, which indicates those size units might provide housing for workers

who commute from the larger urban areas of the state, or those size units provide housing for a transitional worker base. 7. Of the apartments who responded to the survey, zero vacancies were reported for the Single Room Occupancy and the four-bedroom size units. 8. Rental rates for affordable housing units are 15.59% to 22.39% lower than market rate rents. 9. Rural Nevada shows lower rental rates for all size units compared to rates experienced in the larger metropolitan areas of the Greater Las Vegas Valley and the Greater Reno/Sparks Area. 10. Rural Nevada's group homes and assisted living facilities reflect similar vacancy and rental rates as those facilities located in the state's larger urbanized areas.

¹Affordable rents are those rents provided to individuals or families in which one-third of those families' income is 60% or less of area median income.

Housing Division's Activities

Three federally authorized programs: · Mortgage Revenue Bond (MRB), · Low-Income Housing Tax Credit, and · HOME Investment Partnerships (HOME) program. Other administered program:: · Account for Low-Income Housing Trust Fund, and · Weatherization Program Other activities: · Low-Income Housing Tax Credit Compliance and Monitoring, · Community Outreach, · Research, and · Training.

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Nevada Housing Division

State of Nevada Dept. of Business & Industry

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Research

From The Administrator

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Since 2002, there has been a steady decrease of number of multi-family residential units constructed in the Greater Reno/Sparks Area. Years 1995 through 2004 show a significant increase in the threebedroom size units, with rental units have increased during 2006. a slowing down in both the studio and threebedroom size units beginning in 2005. Rental rates for all size rental units have increased during 2006. With the exception to the studio-size units, affordable rents¹ are 11% to 23% less than marketrate rents in 2006.

reside. · The mean rental rate for the 55+ age group housing ranges from $490 a month for studio units to $723 a month for twobedroom size units. The mean rental rate for beds in group homes and assisted living facilities range from $2,415 as a base minimum to a maximum base cost of $3,900 for dementia/Alzheimer's clients. Each level of service constitutes an added $300 cost to the base rent. For the Greater Reno/ Sparks Area's assisted living facilities, vacancies range from less than 1% in the larger facilities to 14.75% in the smaller group homes.

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Charles L. Horsey

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The Housing Division

The Division's accomplishments for this fiscal year continue to show this agency's role as a major provider of Nevada's affordable multi-family housing. For FY 2006, the Division's Low ­Income Housing Tax Credit Program showed strong support from developers of affordable housing. The Division's Low-Income Housing Trust Fund and the Weatherization Program continued to make strides in helping our state's very-low income residents. This report highlights the many ways in which NHD has been effective in addressing the affordable housing needs of our citizens. Additionally, the report highlights the Division's supportive housing efforts through its community outreach, research, and training efforts. I am very pleased to present our FY 2006 data and continue to congratulate staff on a job well done. Charles L. Horsey

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The one-bedroom size unit remains the most popular size unit for the 55+ age group, representing a staggering 81% of housing where seniors

¹Affordable rents are those rents provided to individuals or families in which one-third of those families' income is 60% or less of area median income.

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S t a t e Page 5 e v a d a of N Dept. of Business & Industry

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Research

· Basic minimum monthly Assisted Daily Living rental rates for beds located in either studio or one-bedroom apartments range from $1,652 a month up to $3,907 a month for Dementia/ Alzheimer care. The average age of the Greater Las Vegas Valley's residents of Assisted Living is 78 years. · · Data reflects an overall vacancy rate of 3.5%, representing a -1.4% change in vacancy rate from the 2005 point-intime survey data. The four bedroom-size unit reflects the highest vacancy rates, with the smaller single room occupancy (SRO) size experiencing the second highest vacancy rate. The Greater Reno/Sparks area is beginning to show a trend of apartment to condominium conversions with over 2,000 apartment units converted to condominiums within the past year. Indicators, however, show that after a time lag some of the units return to the rental stock. Residential rental units converted to condominiums represent 6% of the residential rental housing inventory.

Housing Advisory Committee

The Committee

The Nevada Housing Division Advisory Committee was established by the 1995 Legislature. The Committee is appointed by the Director of the Department of Business and Industry and meets quarterly. The Committee provides advice, recommendations, and other commentary on an array of issues carried forth by the Division.

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Committee Members

Mendy K. Elliott, Chairperson Director, State of Nevada, Department of Business & Industry

Greater Reno/Sparks Area

Selected key findings from the 2nd Quarter 2006 survey reflect the following: · The two­bedroom size apartments continue to remain the most popular unit type. The two-bedroom size apartments comprises 47% of the identified multi-family housing units. ·

Douglas R. Bell, Mgr.,

Community Resources Mgmt. Department of Finance Clark County

Susan Groebe

The Richman Group 1935 Village Center Circle Las Vegas

William L. Brewer

Director USDA -- Rural Development Carson City

Jay Hiner

VP/CRA & Community Dev. Nevada State Bank Las Vegas

Skeet Fitzgerald

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Manager Neighborhood Services City of Henderson

Phyllis Hilsabeck

Branch Mgr., Republic Mortgage 851 S. Rampart, #150 Las Vegas

George Gekakis

President, George Gekakis, Inc. Las Vegas

Robert F. Nielsen

380 Linden Street Reno

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Nevada Housing Division

State of Nevada Dept. of Business & Industry

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Mortgage Revenue Bonds

Multi-Family Bond Program

Through the issuance of tax-exempt and taxable mortgage revenue bonds, the Division is able to assist in the financing of apartment projects that will benefit low­ and moderate­ income households. Financed projects are required to restrict a portion of units to occupancy by households who earn less than a designated percentage of area median income. The restrictions, at a minimum, require either 40 percent of units be rented to households with income less than 60 percent of area median income, or twenty percent of units be rented to households with income less than 50 percent of area median income. The majority of bond financed projects are 100% rent restricted, allowing even more low­ to moderateincome households benefit from the bond financing program. Financings for multifamily housing include:

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Research

NHD Apartment Facts

The FY 2006 annual NHD Apartment Facts multi-family research study marked its 10th year of publication by the Division. The report covers demographic information on apartment units located in the Greater Las Vegas Valley, the Greater Reno/ Sparks Area, and Rural Nevada. Greater Las Vegas Valley: Key Points Selected key findings from the 2nd Quarter 2006 survey reflect the following: · The two-bedroom size apartments continue to remain the most popular unit type. The two-bedroom size apartments comprise nearly half (49%) of the identified multi-family housing units. Data reflects an overall vacancy rate of 3.4%, a 0% change in vacancy rate from the 2005 pointin-time survey data. Nearly 16% of the Greater Las Vegas Valley's multi-family housing inventory has been converted to condominiums, some of which have returned to rentable status. Since 2000, data reflects a downward trend of multifamily construction. · The second quarter 2006 mean rental rates show significantly higher rental rate increases than seen in 2005, for all size units. The greatest rental rate change since 2005 occurred in the one­ and three-bedroom size apartments with over an 8% increase in rental rates. Affordable rents¹ for one, two and three-bedroom size units are an average of 26% lower than market rents for comparable configuration. The one-bedroom size unit continues to be the most popular size unit for the 55+ age group, with 52% of this age group selecting this size unit.

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the issuance of construction loan notes, the issuance of bonds for the purchase of FHAinsured mortgage loans providing long-term financing for multi-family projects, the issuance of bonds to make loans to lending institutions to enable them to make loans to multi-family project sponsors, and the issuance of bonds which are secured by FannieMae pass-through certificates and other credit enhancement, including letters of credit.

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¹Affordable rents are those rents provided to individuals or families in which one-third of those families' income is 60% or less of area median income.

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Nevada Housing Division

State of Nevada Dept. of Business & Industry

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Community Outreach-School Arts Competition

Winners of competition

Mortgage Revenue Bonds

Multi-Family Bond Projects

Project Name Southwest Village Location # of Units Amount of NHD $19,000,000 Type of Housing Family

Community Partnerships

Reno

332

1st Place Winner, Jun Ho Bae. Grade 4. Walter Jacobson Elementary School.

Single-Family Bond Program

FY 2006 Single Family Bond Issues $22,500,000

2nd Place Winner, Jose Becerra. Grade 5. Lincoln-Edison Elementary School.

Helping families achieve the dream of owning their own homes. Commonly referred to as the First-Time Home Buyers Program, this statewide program provides first mortgage financing at below-market interest rates to low- and moderateincome Nevada homebuyers who have not owned a home in the past three years.

3rd Place Winner, Patricia Morales. Grade 5. Sunrise Acres Elementary School.

The Housing Division provides fixed-rate 30- and 40year first mortgages and down payment and closing cost assistance for those who qualify.

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Nevada Housing Division

State of Nevada Dept. of Business & Industry

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Community Outreach Single-Family Bond Program

Qualifications for a First-Time Homebuyer Single Family Loan Maximum Income Limits

County Clark Washoe Carson City Douglas Nye All Others 1-2 Persons $70,920.00 $76,440.00 $69,265.00 $79,614.00 $66,546.00 $59,550.00 3+ Persons $82,740.00 $89,180.00 $79,655.00 $91,556.00 $76,528.00 $68,482.00

Community Partnership Program

School Arts Exhibition "Where I Live"

The Venetian Foundation hosts the Housing Division's Annual Art Contest Program, Reception and Exhibition at The Venetian Resort Hotel/Casino

this program. Each partner plays a significant role in support, publicity, and financial contributions. In partnership with the Division, are the Clark County School District School Community Part-

Maximum Purchase Price Limits

County Clark Washoe Carson City Douglas Nye Lyon All Others New Construction or Existing $318,552.00 $336,552.00 $300,375.00 $343,799.00 $289,657.00 $213,552.00 $214,380.00

The Division's annual "Where I Live" juried art contest is a private/public community partnership effort. The intent of the contest is to increase the awareness of housing for the Kindergarten through 5th NHD's Calendar Cover and Judges Choice Drawing by Jesus Vargas, Grade 1. grade levels Sunrise Acres Elementary School. and also to heighten their awareness of the communership Program, Countrynities in which they live. wide Home Loans, Inc., Strong business Pardee Homes, the Real and community partners Estate Section, Las Vegas have been an integral part Review-Journal, and The of the continued success of Venetian Foundation.

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Nevada Housing Division

State of Nevada Dept. of Business & Industry

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LIHTC Compliance & Monitoring

Mission

The Housing Division's mission of its LowIncome Housing Tax Credit Monitoring and Compliance activities is: · To ensure compliance with the monitoring requirements of Section 42 of the Internal Revenue Code and the Low-Income Housing Credit Regulatory Agreement, and · To ensure that limited housing resources are used for the purpose which they were originally funded and benefit the population they were intended to serve. Primary Components Annual certification by project owners and certification compliance review by DHCR; 1. Collection and processing of compliance monitoring fees; 2. On-site compliance monitoring of each project annually; 3. Resolution and reporting of all noncompliance issues; and 4. Provide technical assistance and training to project owners and property managers and leasing agents. The Division's current state-wide portfolio consists of 192 active projects with a total of 22,863 residential rental units of which 22,349 are tax credit/ bond units.

Low Income Housing Tax Credit (LIHTC) Program Low-Income Housing Tax Credits

The Low-Income Housing Tax Credit (LIHTC) Program has been the major federal program for producing affordable rental housing since its creation as part of the Tax Reform Act of 1986. The LIHTC represents a partnership among a variety of public and private sector entities. The basic premise of the LIHTC is to offer federal tax credits to private investors in return for their providing equity for the development of affordable rental housing. For FY 2006, Nevada's cap for tax credits totaled more than $5 million; allowing seven new multifamily projects to be constructed and providing additional credits for eight projects which were previously awarded tax credits. Through tax-credit statewide public hearings, held prior to a final qualified allocation plan, areas of geographic and socio-economic concerns are addressed annually by the Division. FY 2006's Low Income Housing Tax Credit Program's priorities targeted providing more affordable housing inventory for the 55+ age group and the special needs populations.

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Nevada Housing Division

State of Nevada Dept. of Business & Industry

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LIHTC Reservations for FY06

Apartments Location Tax Credit Reservations Type of Housing # of Units

Weatherization Program

The Low Income Weatherization Assistance Program was established in 1977 to assist low income persons reduce their utility bills by providing for various energy conservation measures. Assistance is provided free of charge and no liens or financial obligations are placed on individuals receiving assistance. To be eligible for Weatherization assistance a household's annual gross income must be at or below 150% of the federal poverty income guidelines established by the federal Office of Management and Budget. Approximately 69% of Nevada's Weatherization Program's eligible households reside in Clark County which is served by HELP of Southern Nevada and the City of Henderson. Nearly 16% of the State's remaining eligible households reside in Washoe County, served by the Community Services Agency in Reno. The remaining 15% of eligible households are located throughout the rural areas of the state and are served by Citizens for Affordable Homes located in Dayton and the Rural Nevada Development Corporation located in Ely.

Units Weatherized FY 2006

Total # of Units Weatherized 1,139 Home Owners Rental Units Average Cost Per Unit Weatherized $2,309

Harmon Pines Horizon Crest Pacific Pines III Sierra Run Stewart Pines III Summit Crest Wells Ave.

Total for New Construction or Rehab

Clark County Clark County Clark County Rural Las Vegas Rural Rural

$1,000,000 $999,998 $900,416 $232,282 $785,719 $496,027 $529,948 $4,944,390

Seniors Special Needs Seniors Family Seniors Family Senior

105 78 50 21 56 27 39 376

Additional Funding Autumn Hills Autumn Hills II Harrison Pines III Honolulu Street Pacific Pines II Quail Run Rural Rural Clark County Clark County Clark County Rural $4,991 $11,943 $16,720 $69,731 $14,081 $14,070 $68,801 $38,160 $5,182,887 Senior Senior Senior Family Senior Family Senior Senior 46 41 20 60 51 59 120 41

Sen. Richard Bryan Clark County Silver Sage Total Reserved Washoe County

639

500

814

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Nevada Housing Division

State of Nevada Dept. of Business & Industry

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Account for Low-Income Housing Trust Funds

Trust Funds Allocated During FY06 Jurisdiction

Henderson Clark County Washoe County Rural County Lyon County NHD Special Projects Welfare Set Aside: Henderson Clark County Washoe County Rural County Total $149,838 $966,977 $257,185 $208,500 $10,820,000

Home Investments Partnership (HOME) HOME PROGRAM

The Division has administered the HOME program since 1992. Each year the state receives $3 million in HOME funds from the federal government. These funds are then allocated by formula to participating jurisdictions (PJs). PJs are state and local governments that receive funds directly from the U.S. Dept. of Housing and Urban Development (HUD) to operate the HOME Program.

Amount

$684,921 $4,420,136 $1,306,239 $372,454 $450,000 $803,750 $750,000

Multi-Family Units

The Division's current state-wide multi-family bond/tax credit residential housing portfolio consists of 192 active projects totaling 22,863 residential rental units. Of these units, 22,349 are affordable tax credit/bond units.

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Nevada Housing Division

State of Nevada Dept. of Business & Industry

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HOME Investments Partnership (HOME)

The HOME funds can be used for many of the Housing Division's programs:

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Account for Low-Income Housing Trust Funds Fund Allocations

The Division allocates Low-Income Housing Trust Funds annually to participating jurisdictions based on the most recent state estimate of the population in the jurisdictional area. The Division has administered the Fund since its inception in 1989. The source of the Trust Fund revenue is half of the state real estate transfer fee providing more than $10 million annually. During FY06, 236 units were funded with Trust Funds. These included helping families move into homeownership, home owner rehabilitation, and multifamily activities. A total of 1,783 families were provided assistance for individual housing needs, including needs for emergency housing assistance.

down payment assistance, homeowner rehabilitation programs, construction of new multi-family projects, and rehabilitation of multi-family projects, and tenant- based rental assistance.

The Division allows each jurisdiction the opportunity to use State HOME funds in a manner that best meets the community's needs. The Division accepts applications for projects in the non-entitled areas of the State, which are areas that do not receive HOME funds as a PJ.

HOME Program Dollars Committed

During FY06

Jurisdiction Clark County Western Nevada Rural Areas Total Dollars Committed $415,235.54 $277,717.09 $1,145,078.88 $1,838,031.51 # of Units 6 8 39 53

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