Housing division outlines GAHP pilot with NewWest to expand gap financing up to $5M

Nevada Housing Division staff presented an update on the Growing Affordable Housing Program (GAHP), explaining a pilot that pairs the division’s subordinate GAHP funds with private Community Development Financial Institution (CDFI) participation to support larger gap financing for affordable housing projects. "If you walk into a dollar store with $0.91 in your pocket, you come out with nothing, but if you walk into a dollar store with a dollar in your pocket, you do come out with something," Stephen Aichroth said by way of explaining how relatively modest GAHP sums can unlock larger transactions. Christine Hess described the pilot as a way to allow the division’s funds to turn more quickly because the debt is subordinate and repayment typically starts after deferred developer fees are paid off.

Staff said GAHP historically used approximately $3,000,000 as a typical gap amount and that the pilot structure can support packages up to $5,000,000, at an interest rate higher than prior GAHP pricing but still below market, by combining public and private financing. Governor Joe Lombardo asked why the threshold had been set at $3,000,000 originally; staff replied that the figure reflected the prior capital‑stacking pattern observed since GAHP began in 2016 and that inflation may have pushed typical needs to closer to $4.2–$4.5 million. Christine Hess noted the program changes are internal policy choices and that the division will continue to analyze reserves and program terms before expanding GAHP commitments; this was an informational item and no board action was required.