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
