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Council asks staff to study bonding vs grants for HB 1406 affordable housing funds
Summary
Council directed staff to explore options for using the county’s annual HB 1406 allocation (about $800,000/year) either as direct grants via RFP or as backing for bonds to leverage larger sums for affordable housing; staff will report back on mechanics, administration, and equity implications.
Clark County Councilors asked staff to explore whether the county’s annual allocation from the state’s HB 1406 revenue-sharing program (commonly called the 14-06 fund) should continue to be awarded via ad-hoc council grants or be used as a revenue stream to support bonded financing that would leverage a larger pool of capital for affordable housing.
Jordan Bogie reviewed the program’s background: the state-authorized revenue sharing remits approximately $800,000 a year to Clark County under the statute for local affordable-housing use. Historically the council has allocated those dollars directly to individual projects on a case-by-case basis; staff have proposed an RFP process to widen access and formalize awards. Bogie also said some stakeholders have suggested the county could bond against the steady annual stream to raise a larger upfront capital amount, using the annual remittance to pay debt service.
Councilors supported further study. Councilor Young asked whether the funding is only tied to unincorporated areas; staff said the allocation mechanism allows jurisdictions to take increments and that the county currently receives the maximum increment available. Councilor Little and others asked staff to analyze tradeoffs: bonding could produce more capital for large developers but might shut out small nonprofit applicants; an RFP process could broaden access but yield smaller individual awards. Participants noted the tax sunsets 20 years after first imposition, so there is a finite revenue stream to consider when sizing bond debt.
The council gave staff consensus direction to research options, including potential RFP structures, bonding mechanics, administrative costs, programmatic equity, and estimated leverage amounts, and to return with recommendations.
Ending
Staff will return with a memo examining the feasibility, risks, and tradeoffs of bonding the HB 1406 stream versus continuing direct grant awards through an RFP process.
