ICYMI: State Board of Finance approves $75 million to fund the State Infrastructure Bank, along with funding for over 600 affordable housing units

CARSON CITY, NV —  March 09, 2022

Yesterday, the State Board of Finance approved the issuance of up to $75 million in general obligation bonds that will fund priority infrastructure projects through the State Infrastructure Bank.

The launch of the State Infrastructure Bank was a priority outlined in Governor Sisolak’s 2021 State of the State address, and Treasurer Zach Conine secured funding for the Bank through the State’s 2021 Capital Improvement Program (“CIP”).

Additionally, the State Board of Finance approved the issuance of over $150 million in tax-exempt revenue bonds to support 609 affordable multi-family housing units and additional funding for down payment assistance to first-time homebuyers.

“Nevada continues to make historic investments in infrastructure and housing, and I’m so glad that the priority infrastructure projects will begin moving quickly through our State Infrastructure Bank,” said Nevada Governor Steve Sisolak. “These investments mean jobs for Nevadans and these projects will go a long way toward improving the quality of life for our residents. We know that Nevadans have no time to wait and I’m eager to continue this work.”

“Right now, our State is in the middle of a housing crisis, and we’re committed to using every tool available to us to make rents more affordable and homeownership possible for thousands of Nevadans,” said Treasurer Zach Conine. “Through the State Infrastructure Bank, private activity bonds, and funds from the American Rescue Plan, we can create more affordable housing across our State.”

At yesterday’s meeting, the Board of Finance approved the issuance of two series of general obligation bonds in an amount not to exceed $75 million:

  • General Obligation (Limited Tax) Taxable State Infrastructure Bank Bonds, Series 2022A - $40 million
  • General Obligation (Limited Tax) Taxable State Infrastructure Bank Bonds, Series 2022B (Social Bonds) - $35 million

Through the issuance of these bonds, the State intends to provide:

  • Up to $40 million to support projects through an Infrastructure Matching Fund that will leverage hundreds of millions of dollars into Nevada from the Infrastructure Investment and Jobs Act;
  • Up to $20 million to support affordable housing projects in partnership with the AFL-CIO Housing Investment Trust; and
  • Up to $15 million to support the development of charter schools in low-income communities.

Through the issuance of its Series 2022B Bonds for affordable housing and charter schools, the State of Nevada intends to issue its first series of social bonds in history. Bonds may be designated as “social bonds” if the issuer intends to use 100% of bond proceeds to support projects with positive social impacts.

The State of Nevada will be able to issue these social bonds due to the State Infrastructure Bank’s commitment to building social infrastructure projects that:

  • Prioritize the hiring of local residents;
  • Utilize responsible contracting policies;
  • Expand the utilization of registered apprenticeship programs; and
  • Are performed in accordance with Nevada’s 2020 State Climate Strategy.

The State Infrastructure Bank expects to begin funding projects in the next few months. The Bank is projected to create roughly 30,000 good-paying jobs in Nevada over the next decade.

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Contact

Erik Jimenez