Douglas County legal - 35316

Notice to Public aNd to all iNterested Mortgage leNders

Nevada rural HousiNg autHority Mortgage credit certificate PrograM

The Nevada Rural Housing Authority (the “Authority”) intends to implement a Mortgage

Credit Certificate Program, Series 2023 (the “Program”) that will entitle eligible low and

moderate income first-time homebuyers and borrowers of qualified home improvement loans

and qualified rehabilitation loans to a federal income tax credit.

Under the Program, a homebuyer who satisfies the eligibility requirements described below

may receive a federal income tax credit in an amount equal to the product of the certificate

credit rate established under the Program and the interest paid or accrued by the homeowner

during the taxable year on the remaining principal of the certified indebtedness amount

incurred by the homeowner to acquire the principal residence of the homeowner; provided

that, if the certificate credit rate exceeds 20 percent, such credit allowed in any taxable year

may not exceed $2,000. In order to qualify to receive a credit certificate, the homebuyer must

qualify for a conventional, FHA, VA, RHS or other home mortgage loan from a lending institution

and must meet the other requirements of the Program.

Home improvement loans of up to $15,000 may also be eligible for a mortgage credit

certificate. To qualify, the home improvements must substantially improve or protect the

livability or energy efficiency of the home; such as new or renovated plumbing or electric

systems, renovation of the kitchen, or the installation of improved heating or air-conditioning

system. Installation of a swimming pool, tennis court, hot tub or other recreational and

entertainment facilities will not qualify.

In addition, qualified rehabilitation loans may also be eligible for a mortgage credit certificate.

Qualified rehabilitation loans are incurred by the owner in connection with a qualified

rehabilitation or the acquisition of a residence with respect to which there has been a qualified

rehabilitation, but only if the mortgagor to whom such financing is provided is the first resident

of the residence after the completion of the rehabilitation. A “qualified rehabilitation” is a

rehabilitation of a building that meets certain specific requirements as to the building’s age,

the amount of the structure retained in place and the expenditures for the rehabilitation as a

percentage of the mortgagor’s basis in the residence.

The credit certificates will be issued to qualified mortgagors on a first-come, first-served basis

by the Authority acting through an administrator, which will review applications from lending

institutions and prospective mortgagors to determine compliance with the requirements of the

Program and determine that credit certificates remain available under the Program. No credit

certificates will be issued prior to 90 days from the date of publication of this notice or after

the date that all of the credit certificate amount has been allocated to homebuyers and in no

event with respect to debt incurred after December 31, 2025.

In order to satisfy the eligibility requirements for a certificate under the Program, (a) the

prospective residence must be a single-family residence located within the Nevada Counties

of Churchill, Clark, Douglas, Elko, Esmeralda, Eureka, Humboldt, Lander, Lincoln, Lyon, Mineral,

Nye, Pershing, Storey, Washoe and White Pine and Carson City, Nevada but excluding the

Nevada Cities of Enterprise, Henderson, Las Vegas, North Las Vegas and Reno and excluding the

Nevada Towns of Paradise, Spring Valley and Sunrise Manor (collectively, the “Program Area”),

that can be reasonably expected to become the principal residence of the mortgagor within a

reasonable period of time after the financing is provided; (b) except for residences in certain

federally-designated targeted areas and residences for certain veterans, and except for home

improvement loans, qualified rehabilitation loans, and refinancings of certain subprime loans,

all mortgagors must not have an ownership interest in a residence at any time during the threeyear

period ending on the date the mortgage is executed; (c) the prospective homebuyer’s

current family income must not exceed, (i) for families of three or more persons, 115% (140%

in certain targeted areas) of the area median income, and (ii) for individuals and families of two

persons, 100% (120% in certain targeted areas) of the area median income; (d) the acquisition

cost of the residence must not exceed 90% (110% in certain targeted areas) of the average

area purchase price applicable to the residence; and (d) except for qualified rehabilitation

loans, no part of the proceeds of the qualified indebtedness may be used to acquire or replace

an existing mortgage. Credit certificates may also be issued in connection with refinancing

mortgages on homes financed with certain subprime loans. To obtain additional information

on the Program as well as the current income and purchase price limits (which are subject to

revision and adjustment from time to time by the Authority pursuant to applicable federal and

state law), please call Director of Homeownership Programs, Diane Arviso, at (775) 315-1939

or write the Nevada Rural Housing Authority, 3695 Desatoya Drive, Carson City, Nevada 89701,

Attention: Director of Homeownership Programs.

The Authority intends to maintain a list of single family mortgage lenders that will participate

in the Program by making loans to qualified holders of these mortgage credit certificates. Any

lender interested in appearing on this list or in obtaining additional information regarding the

Program should call Director of Homeownership Programs, Diane Arviso, at (775) 315-1939

or write the Nevada Rural Housing Authority at 3695 Desatoya Drive, Carson City, Nevada

89701, Attention: Director of Homeownership Programs, no later than September 15, 2023. If

adequate interest is expressed, the Authority may schedule a meeting with lenders to discuss

in greater detail the requirements of the Program.

This notice is published in satisfaction of the requirements of Section 25 of the Internal

Revenue Code of 1986, as amended, and Treasury Regulation Sections 1.25-7T and

1.25-3T(j)(4) issued thereunder regarding the public notices prerequisite to the issuance of

mortgage credit certificates and to maintaining a list of participating lenders.

Pub Date: July 19, 2023

Ad # 35316