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At tomorrow’s Las Vegas City Council meeting, the council will consider a proposal to build an affordable housing development and multi-use project in what has been a blighted area of the city. The former Wonder World Site at 1501 N. Decatur Blvd. has been vacant since 2000. The item is scheduled to be considered at the beginning of the afternoon session, which begins at 1 p.m. in Las Vegas City Hall Council Chambers.
The proposal by Alpha Omega Strategies is to develop 65,000 square feet of commercial and a 416-unit affordable senior housing complex.
On average the city provides 43 percent funding subsidy to new construction of affordable multi-housing developments. This project is requesting a 40 percent subsidy. If approved, the city would allocate $416,000 in federal HOME funds and pledge $10 million through medium term obligation bond to be repaid in future Redevelopment Agency 18 Percent Set-Aside funds over five years. Per Nevada Revised Statue, 18 percent of tax increment funds generated in the Redevelopment Area must be allocated toward affordable housing. The city has also reserved its portion of state Private Activity Bonds ($16.4 million). The bonds must be repaid by the developer. The city's financial commitment to the affordable housing development would equate to $26,816,000, or 40 percent of the cost.
Additional funds would be available through the State Housing Division, which would provide $33,745,296 or 49 percent of the cost. Alpha Omega Strategies will pledge 85 percent of their developer's fee ($7,232,258) or 11 percent.
Affordable housing projects often require federal, state and local government subsidies because it is difficult for the private development community to successfully build these projects. These affordable housing developments cannot raise rents higher than 30 percent of monthly income for low-income families.
According to 2000 Census data and the HUD Comprehensive Housing Affordability Strategy analysis, more than 41,000 low income senior residents in Las Vegas were either spending more than half their income on housing or living in substandard housing.
The affordable rental housing units will serve low income seniors who earn at or below 60 percent of area median income. For example, a single senior citizen with an annual income of $26,820 or a couple with an annual income of $30,660 would be eligible to live in these units. The housing unit rental rates will ensure that these low income senior households are not paying more than 30 percent of their annual income toward housing.
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