CLARK COUNTY BOARD OF COMMISSIONERS
AGENDA ITEM
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Petitioner: |
Lisa Kremer, Deputy County Manager Dagny Stapleton, Community Housing Administrator |
Recommendation:
title
Approve and authorize the Chair to sign the Community Land Trust Developer Agreement and Ground Lease between Clark County and Kavison Homes, LLC as project developer on a 7.72-acre site owned by the County (APN# 125-26-204-003); and approve and authorize the fiscal impact of the Community Land Trust Developer Agreement. (For possible action)
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FISCAL IMPACT:
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Fund #: |
2770 |
Fund Name: |
Community Housing |
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Fund Center: |
1270111770 |
Funded PGM/Grant: |
N/A |
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Amount: |
$4,152,440 (not to exceed this amount) |
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Description: |
Rebecca Road Project homebuyer subsidy; provided through second mortgages to homebuyers as needed |
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Additional Comments: |
N/A |
BACKGROUND:
In response to the unprecedented crisis in housing affordability and availability in Southern Nevada, the Board of County Commissioners (Board) has taken significant steps to subsidize and incentivize the development of low- to moderate- income housing. As a part of these efforts in 2023, the County initiated an application process to select a developer to build single-family homes to be sold to first time homebuyers currently priced out of the housing market; this application was for the construction of homes on a parcel already owned by the County.
On May 7, 2024, the Board approved Kavison Homes, LLC as the developer of the 7.72-acre site on Rebecca Road, north of West Tropical Parkway, in the City of Las Vegas (APN# 125-26-204-003). Staff subsequently negotiated a Community Land Trust Developer Agreement with Kavison Homes, LLC to outline the requirements of the development and sale of the homes to households between 80% and 100% of Area Median Income (AMI). The Community Land Trust Developer Agreement stipulates that the homes on this site will be sold under a community land trust model where the County maintains ownership of the underlying land, but the homeowner owns the home and improvements subject to resale restrictions to ensure the homes remain affordable. The Community Land Trust Developer Agreement also includes a Ground Lease between the County and Kavison Homes, LLC, that will go into effect upon execution of the Agreement.
The fiscal impact of the Agreement includes the cost of subsidizing the purchase of the Rebecca homes by the homebuyers. Any subsidies to homebuyers will be provided as second mortgages, which may be assumed by future homebuyers. The amount of subsidy on each home will vary depending on the AMI level of the homebuyer, as well as the need for assistance with down payment and closing costs; however, it is estimated that total subsidy for the development will not exceed $4,152,440.
Staff recommends approval of the Community Land Trust Developer Agreement and accompanying Ground Lease.