Since 1988, each city and county in Nevada has received an allocation of Private Activity Bonds (the ability to issue tax exempt debt for a public purpose) from the State based on its population. These are small allocations that most cities and counties don’t have a use for and they end up reverting back to the State. In 2006, NHRA implemented a Transfer Matching Funds program to give counties a way to put these funds to work effectively.

I liken the Transfer Matching Funds program to cooking up a statewide soup. Imagine if one community has just a potato, one a carrot, one only beans, another a ham bone. On their own, each community doesn’t have much to eat, but together they can make a nourishing pot of soup. The Transfer Matching Funds are the ingredients for this soup; NRHA is the cook; and the soup, well, that is economic development brought about by home ownership. 

Every year since 2006, NRHA has asked each rural county and city to partner with us by transferring to us their allocation of Private Activity Bonds. By pooling these relatively small allocations, we have been able to catalyze economic activity in rural communities with either a Bond or Mortgage Certificate Program for first time homebuyers.

Our first program was for $10 million dollars. It helped 51 families realize the dream of home ownership.

To date, NRHA has received $115 million in transfers from rural cities and counties and $140 million in matching funds from the State. This means we have preserved over $250 million in potential economic activity for rural Nevada.

We have put $138 million worth of these allocations to work in five different programs that have helped over 600 families buy their first home.

As an example, Lyon County has transferred $5,209,591.13 to NRHA since 2006. The community has had 71 Home at LastTM loans totaling $12,141,788, and approximately $485,671 in free down payment assistance. There have been another three Mortgage Credit Certificate loans totaling $442,484.

So, for a $5.2 million allocation they were unable to use, we have been able to generate over $13 million in economic activity. That’s a pretty good return and a pretty hearty bowl of soup.