STATE OF NEVADA



STATE OF NEVADA

DEPARTMENT OF BUSINESS AND INDUSTRY

OFFICE OF THE DIRECTOR

Special Advisory Committee on Private Activity Bonds

December 19, 2016 at 10:00AM

1. Call to order by Chair

Director Breslow called the meeting to order at approximately 10:07AM

The following were in attendance:

Bruce Breslow, Director, Department of Business & Industry

Marcel Schaerer, Deputy Director, Department of Business & Industry

Tawny Polito, Executive Assistant, Department of Business & Industry

Chris Weiss, Management Analyst, Department of Business & Industry

CJ Manthe, Administrator, Nevada Housing Division

Michael Holliday, Chief Financial Officer, Nevada Housing Division

Bob Potts, Research Director, Governor’s Office of Economic Development

Wes Henderson, Executive Director, Nevada League of Cities

Jeff Fontaine, Executive Director, Nevada Association of Counties

Richard Jost, Fennemore Craig

Peter Keagan, Nevada Attorney General

Gary Longaker, Nevada Rural Housing Authority

Diane Arvizo, Nevada Rural Housing Authority

Bill Brewer, Nevada Rural Housing Authority

Kristin Cooper, Clark County

Lucas Foletta, Legal Counsel for Nevada Rural Housing Authority

Kathleen Concord, Nevada Rural Housing Authority

2. Public Comments – may limit public comment to 3 minutes per speaker

None

3. Approval of the April 27, 2016 meeting minutes

CJ Manthe made a motion to approve the minutes, Bob Potts seconded the motion. All members voted in favor. Motion passed.

4. Report on the allocation of 2016 State Volume CAP to local governments based upon pro rata share of State’s population

According to Director Breslow the 2016 allocation amounts were read at our April 27, 2016 meeting. For today’s meeting the allocations were broken down further by city/town and not just county. Several rural county populations are declining.

5. Report on usage, reversions, and requests for 2016 State Volume CAP by the Director, local governments and agencies receiving Volume CAP. Discussion by the Special Advisory Committee to the Director

a) Carson City: Per Resolution No. 2016-R-8 Carson City would like to transfer their allocation of $2,836,448.81 to the Nevada Rural Housing Authority for their Single Family Programs.

b) Churchill County: Per Resolution No. 10-2016 Churchill County would like to transfer their allocation of $854,819.36 to the Nevada Rural Housing Authority for their Single Family Programs.

c) City of Boulder City: Per Resolution No. 6493 the City of Boulder City would like to transfer their allocation of $826,440.36 to the Nevada Rural Housing Authority for their Single Family Programs.

d) City of Caliente: Per Resolution No. 16-04 the City of Caliente would like to transfer their allocation of $54,824.25 to the Nevada Rural Housing Authority for their Single Family Programs.

e) City of Carlin: Per Resolution No. 2016-05 The City of Carlin would like to transfer their allocation of $142,522.16 to the Nevada Rural Housing Authority for their Single Family Programs.

f) City of Elko: Per Resolution No. 19-16 the City of Elko would like to transfer their allocation of $1,082,583.04 to the Nevada Rural Housing Authority for their Single Family Programs.

g) City of Ely: Per Resolution No. 2016-06 The City of Ely would like to transfer their allocation of $211,980.15 to the Nevada Rural Housing Authority for their Single Family Programs.

h) City of Fallon: Per Resolution No. 16-12 the City of Fallon would like to transfer their allocation of $458,349.58 to the Nevada Rural Housing Authority for their Single Family Programs.

i) City of Fernley: Per Resolution No. 16-007 the City of Fernley would like to transfer their allocation of $989,658.80 to the Nevada Rural Housing Authority for their Single Family Programs.

j) City of Henderson: Per Resolution No. 155 the City of Henderson would like to transfer their allocation of $15,042,855.60 as follows: $6,275,000.00 to the Director of the Department of Business & Industry to be used for the Arroyo Pines Project or another eligible project located in the City, and $8,767,855.60 to the Nevada Rural Housing Authority for their Single Family Programs.

k) City of Las Vegas: Per Resolution No. R-32-2016 the City of Las Vegas would like to transfer their allocation of $32,452,143.44 to the Director of the Department of Business & Industry with a request the Director transfer all of the volume cap to the Nevada Housing Division for the purpose of providing assistance to their home ownership programs for owner occupied housing in Las Vegas, through bonds issued to provide mortgage loans for and mortgage credit certificates issued to provide mortgage assistance for homes to be owned by residents of the City of Las Vegas.

l) City of Lovelock: Per Resolution No. 2016-02: the City of Lovelock would like to transfer their allocation of $98,934.52 to the Nevada Rural Housing Authority for their Single Family Programs.

m) City of Mesquite: Per Resolution No. 897 the City of Mesquite would like to transfer their allocation of $996,191.72 to the Nevada Rural Housing Authority for their Single Family Programs.

n) City of North Las Vegas: Per Resolution No. 2553 the City of North Las Vegas would like to transfer their allocation of $12,221,093.35 to the Nevada Housing Division to be used as follows: $5,829,160.00 for the Madison Palms Senior Apartments located in North Las Vegas and $5,250,000.00 for the Rose Gardens Senior Apartments located in North Las Vegas.

o) City of Reno: Per Resolution No. 8153 the City of Reno would like to transfer a portion of their allocation of $12,470,819.34 (the resolution says their allocation is $12,479,840.70 but it is actually $12,470,819.34) in the amount of $11,250,000.00 to the Department of Business & Industry for the Vintage at Virginia Apartments.

p) City of Reno: Per Resolution No. 8239 the City of Reno would like to transfer a portion of their allocation of $12,470,819.34 in the amount of $1,220,819.00 to the Nevada Housing Division for their Single Family Programs.

q) City of Sparks: Per Resolution No. 3301 the City of Sparks would like to transfer their allocation of $4,890,856.59 to the Nevada Rural Housing Authority for their Single Family Programs.

r) City of Wells: Per Resolution No. 16-03 the City of Wells would like to transfer their allocation of $71,653.05 to the Nevada Rural Housing Authority for their Single Family Programs.

s) City of West Wendover: Per Resolution No. 2016-02 the City of West Wendover would like to transfer their allocation of $234,035.28 to the Nevada Rural Housing Authority for their Single Family Programs.

t) City of Winnemucca: Per Resolution No. 2016-04 the City of Winnemucca would like to transfer their allocation of $407,758.66 to the Nevada Rural Housing Authority for their Single Family Programs.

u) City of Yerington: Per Resolution No. 16-01 the City of Yerington would like to transfer their allocation $166,772.35 to the Nevada Rural Housing Authority for their Single Family Programs.

v) Clark County: Per Resolution No. 7-19-16-2 Clark County would like to transfer their allocation of $49,092,062.51 as follows: $20,000,000.00 to the Housing Division for Multifamily Rental Housing Development in Clark County, $24,000,000.00 to the Housing Division for Single Family Homeowner Programs, $5,092,062.51 to the Nevada Rural Housing Authority for Single Family Homeowner Programs.

w) Douglas County: Per Resolution No. 2016R-046 Douglas County would like to transfer their allocation of $2,520,295.54 to the Nevada Rural Housing Authority for their Single Family Programs.

x) Elko County: Per Resolution No. 04-2016 Elko County would like to transfer their allocation of $1,267,961.14 to the Nevada Rural Housing Authority for their Single Family Programs.

y) Esmeralda County: Per Resolution No. 16-R-04 Esmeralda County would like to transfer their allocation of $48,239.07 to the Nevada Rural Housing Authority for their Single Family Programs.

z) Eureka County: There was no Resolution No. assigned to their transfer so I used the date of the letter which is 5-20-2016. Per Resolution No. 5-20-2016 Eureka County would like to transfer their allocation of $97,314.36 to the Nevada Rural Housing Authority for their Single Family Programs.

aa) Humboldt County: Per Resolution No. 06-07-16 Humboldt County would like to transfer their allocation of $483,697.31 to the Nevada Rural Housing Authority for their Single Family Programs.

ab) Lander County: Per Resolution No. 2016-11 Lander County would like to transfer their allocation of $326,489.15 to the Nevada Rural Housing Authority for their Single Family Programs.

ac) Lincoln County: Per Resolution No. 2016-10 Lincoln County would like to transfer their allocation of $211,091.67 to the Nevada Rural Housing Authority for their Single Family Programs.

ad) Lyon County: Per Resolution No. 16-07 Lyon County would like to transfer their allocation of $1,628,003.36 to the Nevada Rural Housing Authority for their Single Family Programs.

ae) Mineral County: Per Resolution No. 16-006 Mineral County would like to transfer their allocation of $237,223.35 to the Nevada Rural Housing Authority for their Single Family Programs.

af) Nye County: Per Resolution No. 2016-60 Nye County would like to transfer their allocation of $2,406,727.28 to the Nevada Rural Housing Authority for their Single Family Programs.

ag) Pershing County: Per Resolution No. 16-0504 Pershing County would like to transfer their allocation of $253,843.09 to the Nevada Rural Housing Authority for their Single Family Programs.

ah) Storey County: Per Resolution No. 16-438 Storey County would like to transfer their allocation of $208,217.19 to the Nevada Rural Housing Authority for their Single Family Programs.

ai) White Pine County: Per Resolution No. 2016-16 White Pine County would like to transfer their allocation of $328,213.84 to the Nevada Rural Housing Authority for their Single Family Programs.

aj) Total amount of transfers: $17,525,000.00 transferred to the Department of Business & Industry, Director’s Office, $89,894,055.79 transferred to the Nevada Housing Division, $38,201,103.14 transferred to the Nevada Rural Housing Authority (see attached report)

ak) Letter dated August 11, 2016 from Diane Arvizo with the Nevada Rural Housing Authority to Bruce Breslow, Director of the Department of Business & Industry requesting a transfer of 2016 volume cap in the amount of $24,215,901.80 based on 2016 resolutions in which money was transferred to the Nevada Rural Housing Authority (see attached detailing cities/counties included in the request for $24,215,901.80).

a. On August 11, 2016 the Director’s Office transferred $24,215,901.80 to the Nevada Rural Housing Authority through Transfer Certificate No. 16-03 and 16-03 149e.

al) Letter dated September 12, 2016 from Diane Arvizo with the Nevada Rural Housing Authority to Bruce Breslow, Director of the Department of Business & Industry requesting a transfer of 2016 volume cap in the amount of $13,985,201.34 based on 2016 resolutions from the City of Henderson, City of Sparks and Lander County transferring their allocations to the Nevada Rural Housing Authority for their Single Family Programs.

a. On September 13, 2016 the Director’s Office transferred $13,985,201.34 to the Nevada Rural Housing Authority through Transfer Certificate No. 16-05 and 16-05 149e.

am) Letter dated December 5, 2016 from Gary Longaker with the Nevada Rural Housing Authority to Bruce Breslow, Director of the Department of Business & Industry requesting a transfer of 2016 volume cap as indicated in the letter along with additional information.

an) Letter dated December 7, 2016 from Michael Holliday with the Housing Division to Bruce Breslow, Director of the Department of Business & Industry requesting a transfer of 2016 volume cap as indicated in the letter along with additional information.

Director Breslow asked a representative from NRHA and NHD to outline their requests for available volume cap funds from the Director’s Office.

Following the presentations and discussion, Director Breslow said he is considering increasing his planned allocation to NRHA from $50 million to $60 million. There was group discussion on this.

Committee discussion ensued including questions of both Agencies.

Committee Member Jeff Fontaine said going forward we should figure out who we are trying to serve and where and with what programs, and he feels we didn’t get there today.

Committee Member Bob Potts suggested adding up the requests and divide it with $61 million going to the NRHA and $96 million to NHD.

Committee Member Wes Henderson made a motion to allocate $78.5 million to NHRA and $78.5 million to NHD. Committee Member Jeff Fontaine seconded the motion. Director Breslow said his problem is that the rural numbers are a very small percentage of the state. The NHD didn’t get any of the rural bond cap, all of it went to NHRA. Director Breslow said he wants to give NHRA a 20% increase from what they have had before.

Committee Member Wes Henderson said the reason he is recommending the split is because NRHA did not request money in 2014 or 2015 and would like to get them some reserves built up.

Director Breslow said there is a motion to split the money with $78.5 million to NRHA and $78.5 million to NHD. Director Breslow said we have a motion and a second for the committee to recommend to the Director the committee’s opinion. Director Breslow said since he has to make the final decision on this he is going to abstain as well. Director Breslow said he has to look at a lot of factors.

Director Breslow asked for a final vote on the motion to split the money. He asked for a vote from all in favor of giving each organizations half. Wes Henderson and Jeff Fontaine voted in favor and Marcel Schaerer and Bob Potts opposed. The motion did not pass.

Director Breslow said before the deadline he will make the recommendations to staff and letters will go out to the NRHA and NHD before the end of the year.

6. Report on Volume CAP carry forward amounts (for possible action)

Director Breslow said this agenda item was already discussed with agenda item number 5.

7. Suggestion of agenda items for next meeting

Director Breslow mentioned that Committee Member Jeff Fontaine might have suggested that we put an agenda item on our next agenda to discuss the best way to allocate the program statewide. Director Breslow would like to put an agenda item for the next meeting to discuss the MCC program and the administration of the MCC program and all that goes with that.

Committee Member Bob Potts said one of the things we should keep in mind is that with the volume cap everything is going to housing which is great but we are not fighting with NV Energy and a bunch of other places so we really have opportunities and we may want to talk about that in the future.

8. Public comments

None

9. Committee comments

Director Breslow said that of the $150 million allocation to the Director’s Office he has had approximately 15 conversations with companies this year that were interested in doing a bond. He said of the 15 none of them have submitted their paperwork. The interest level and number of people talking about it has grown substantially.

With regards to Industrial Revenue bonds Director Breslow said he has an application and another one that is being amended. Both of those are from companies in northern Nevada.

Director Breslow said there are three companies that want to do processing of rubber, two from the Carson City area. He said we can also do Charter School bonds and thought we would have a lot of applications, seven said they were going to apply but haven’t.

There was some discussion about the Raiders potential move to Las Vegas. Committee Member Bob Potts said Steve Hill with his office is working on the potential Raiders move. Bob said there are a lot of discussions but he doesn’t know where things stand currently.

Director Breslow said 11 agencies within B & I will be moving next year in Las Vegas to 3300 W. Sahara. Industrial Relations, the Taxicab Authority and the Attorney for Injured Workers will not be moving. The building will be called the Nevada State Business Center.

Director Breslow said B & I has 5 policy bills and a couple money bills (for the next legislative session). One of the money bills is to combine the NHD and Manufactured Housing into one agency so they can better serve people who need affordable housing in the State of Nevada.

10. Adjournment

Meeting adjourned.

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BRIAN SANDOVAL

Governor

BRUCE H. BRESLOW

Director

TERRY J. REYNOLDS

Deputy Director

MARCEL F. SCHAERER

Deputy Director

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