The council approved a package of four related items to transfer a parcel the city purchased with Home Means Nevada Initiative (HMNI) funds to the Reno Housing Authority (RHA) for construction of affordable housing. Housing specialist Amy Jones said the city acquired the 0.207-acre property at 2026 I Street using $2.8 million of HMNI funding specifically for land acquisition and that the HMNI grant requires the land be used for affordable housing serving households at 60% AMI and below, with a minimum affordability period specified.

The RHA's conceptual plan calls for 12 studio and one-bedroom units that will be project-based-voucher assisted and serve households at or below 50% of area median income. Jones said the development agreement requires a minimum of 12 dwelling units, establishes timing provisions (administrative review within two years and a building permit within four years), and creates reconveyance conditions if the project is not timely developed. The city would transfer the parcel by quitclaim deed after RHA assumes the city's obligations under the HMNI grant and the restricted-covenant declaration; the HMNI grant and the Nevada Housing Division will remain the compliance authority for the grant terms.

Council moved to adopt the ordinance approving the development agreement and then approved the assignment-and-assumption agreements to convey the city's duties and the declaration-of-restricted-covenants assignment; the council also adopted resolution 3480 to quitclaim the parcel to the RHA. Each motion was seconded and carried unanimously. Council asked clarifying questions about oversight and timelines; staff said the Nevada Housing Division will ensure ongoing compliance with HMNI terms and the development agreement contains timeliness and reconveyance provisions.

Next steps: the RHA will proceed with design, apply for required permits and pursue construction according to the development agreement time frames; if the project stalls or falls out of compliance, provisions allow reconveyance to the city.