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Ely council approves transfer of $243,503.75 in private activity bond cap to Nevada Rural Housing Authority
Summary
The Ely City Council unanimously adopted Resolution 2024-08 to transfer $243,503.75 of its 2024 private activity bond volume cap to the Nevada Rural Housing Authority for single‑family housing programs; NRHA described recent local loan activity and a new 'Launchpad' product offering 6.125% interest and $25,000 in down‑payment assistance.
The Ely City Council on July 25 unanimously approved Resolution 2024‑08 to transfer the city’s 2024 private activity bond volume cap of $243,503.75 to the Nevada Rural Housing Authority (NRHA).
The transfer enables NRHA to use the cap for single‑family homeownership lending targeted to rural Nevada. Mishon Hurst, Deputy Executive Director of the NRHA, told the council the authority used private activity bond cap funds to support three single‑family loans in Ely in the past 12 months, totaling roughly $800,000 in mortgages and about $51,000 in down‑payment assistance, and an additional seven loans in White Pine County totaling about $1.6 million and $70,000 in down‑payment assistance.
“We are excited to announce a new program called Launchpad,” Hurst said, adding it offers a 6.125% locked interest rate and $25,000 in down‑payment assistance. Hurst said the program opened statewide a few days earlier and that a loan in Ely locked on the first day.
The council heard questions about local need and process. Councilwoman Jerri Lynn Williams‑Harper asked whether transferring the cap meant it could no longer be used locally; Hurst explained the State allocates a bond cap amount to each jurisdiction and that if the city does not have a qualifying project it may transfer the cap to NRHA, which pools rural allocations to support eligible borrowers. She said unused local allocations revert to the state after the August 30 deadline if not used or transferred.
Resolution 2024‑08 cites NAC 348A and related NRS provisions and directs the mayor and city clerk to take administrative steps to effectuate the transfer. The resolution states the action does not pledge the city’s faith and credit or obligate the city to issue bonds; it simply transfers usage rights for tax‑exempt private activity bond volume cap to NRHA for the stated purposes.
Next steps: NRHA will notify the State director as required and may use the cap in 2024 or carry it forward per federal tax rules. The council approved the resolution by unanimous vote.
Authorities cited in discussion included NAC 348A and NRS provisions referenced in the resolution itself; the council record does not include additional statutory citations beyond those in the resolution.
