NOTICE TO PUBLIC AND TO ALL INTEREST

89701 | 06/22/2019 | Ad id: 7-0000442986-01
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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 2019A (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, USDA 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, 2021. 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 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 refinancing of certain subprime loans, all mortgagors must not have an ownership interest in a residence at any time during the three-year 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 Executive Director, William Brewer, at (775) 887-1795 or write the Nevada Rural Housing Authority, 3695 Desatoya Drive, Carson City, Nevada, 89701, Attention: Executive Director. 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 Executive Director, William Brewer, at (775) 887-1795 or write the Nevada Rural Housing Authority at 3695 Desatoya Drive, Carson City, Nevada, 89701, Attention: Executive Director, no later than September 1, 2019. 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: June 22, 2019 Ad#0000442986