Rural Housing deal for Dayton housing
August 25, 2016
Nevada Rural Housing Authority is going in a new direction, starting with an agreement with Chicanos Por La Causa.
The partners will soon close on NRHA's sale of about 7 acres in Dayton to CPLC, which will build 44 detached and attached single-family houses for moderate income working families.
The deal is the first in what NRHA plans to be a shift away from doing its own development to acting as a guide for other developers.
"I don't want to have to use the hammers and saws because we can't help as many communities," said Gary Longaker, executive director, NRHA. "CPLC is certainly the first, but there could be other developers that come down the pike."
The two signed a memorandum of understanding that included the sale of the Dayton property; the transfer of Eddie Hult, NRHA's director of real estate operations, to CPLC; and CPLC's right of first refusal on other development sites, including about five acres in Battle Mountain and 3.5 acres in Tonopah, both suitable for multifamily housing.
In addition, NRHA has made room in its Carson City office for two full-time CPLC staff with at least two more planned.
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CPLC is a Phoenix-based community development organization who provides an array of services, including housing, education, health services and workforce development.
The 47-year-old group initially focused on serving the Hispanic community but now provides services to everyone based on income, said Longaker.
Meanwhile, NRHA is planning to acquire about a dozen existing properties from Rural Nevada Development Corp. in Ely, which is getting out of the multifamily business to focus on small business lending, said William Brewer, deputy director, NRHA.
The properties include two sites each in Elko, Ely, Pahrump and Tonopah.
Each deal is being negotiated separately, but NRHA will assume the existing loans and pay the equity out of cash reserves, said Brewer.
The reason is to make sure the housing units remain affordable.
"The subsidies required to be compliant are a few years, then they can be flipped or sold," Brewer said. "Our purpose is to preserve those properties as low income housing. It's part of our mission."