Subcommittee approves Windsor Park funding continuation after questions about land purchase and temporary use of general fund

The subcommittee recommended continued ARPA funding for the Windsor Park relocation and rehabilitation program and directed the Housing Division to provide quarterly progress reports to the Interim Finance Committee after prolonged questioning about the source of funds used to close a land purchase.

Madison Ryan, LCB fiscal analyst, presented the Windsor Park budget account. The account implements the Windsor Park Environmental Justice Act (Senate Bill 450) and reflected updated ARPA expenditure projections that staff asked the subcommittee to approve: $13,600,000 in FY2026 and $435,000 in FY2027 to continue the relocation and rehabilitation project for the 2025–27 biennium. The Housing Division also reported an existing contract with Community Development Program Center of Nevada for construction of up to 93 homes for $37,000,000 and noted the program was initially funded with a $12,000,000 general fund appropriation plus $25,000,000 in ARPA funds.

Subcommittee questioning and land-purchase mechanics

Several members, including the chair and senators, pressed Housing Division staff about a recent land closing in North Las Vegas. Christine Hess, Housing Division CFO, said the division completed escrow and recorded the land purchase; she said the division intended to use ARPA funds for the purchase and that an appraisal matched the selling price so ARPA eligibility was satisfied. Senator Neal and other members described seeing a wire that appeared to originate from the $12,000,000 general fund appropriation rather than directly from ARPA, and they sought clarity on how the general fund amount would be repaid and whether that use complied with the subcommittee's and Interim Finance Committee direction.

The Housing Division and the governor's finance representative

Steve Acroft, Housing Division administrator, acknowledged the division wanted staff to start as soon as possible on Windsor Park work and said the division had asked for an earlier start date for one management analyst. Nima Rizai of the Governor's Office of Finance said he could not explain the earlier account-choice decision because of account changes in the office and offered to follow up. The Housing Division said it had to subvert the typical process and work with the treasurer and comptroller to ensure funds were distributed quickly given Corenvy-related delays affecting ARPA drawdown processes; division staff said there is a paper trail and that the treasurer and controller had received sign-offs.

Reimbursement and repayment plan

Madison Ryan explained that in the state's accounting system the general fund appropriation was the only funding physically in the Windsor Park budget account at the time of the transfer, so that appropriation covered the immediate payment. The Housing Division will submit a request for reimbursement (RFR) to the federal ARPA program to recoup the expenditure and thereby reimburse the general fund. Emily Survey (Business and Industry) confirmed the division is processing the RFR and the ARPA reimbursement should reimburse the general fund shortly after federal approval.

Timing and implementation concerns

Committee members asked about the project timeline and local permitting. Housing Division staff said the land purchase is recorded and the city of North Las Vegas has convened a housing task force to expedite planning, zoning and utilities reviews; staff said the developer and division have conducted required neighborhood meetings. The division offered to provide a written, bullet-point update and said it will continue to brief the Interim Finance Committee on progress. Staff estimated that if homes are not ready by the end of calendar 2026, they would be available shortly thereafter.

Action taken

The subcommittee voted to recommend ARPA Coronavirus State and Local Fiscal Recovery Funds of $13,600,000 in FY2026 and $435,000 in FY2027 to continue Windsor Park funding based on the division's projections and authorized a letter of intent requiring quarterly reports to the IFC on project progress. The motion passed with one abstention; the transcript records the abstention and that the motion was adopted.

Why it matters

Windsor Park is a legislatively created environmental justice relocation and rehabilitation program with a defined developer contract and a requirement for quarter‑by‑quarter oversight. Members pressed the agency on fund flows because using the $12 million general fund appropriation to close the land purchase before ARPA reimbursement changes the timing and risk profile of the project and creates a need for a clear repayment and documentation process.

Follow-up

The Housing Division promised written updates and confirmed the paper trail for the transaction was provided to the treasurer and controller. The subcommittee asked staff to continue quarterly updates to the Interim Finance Committee and retained authority for technical adjustments to the budget account.