Dayton, Lyons County, Nevada
RCAC was forced to foreclose on land intended for affordable housing
RCAC sold land to another affordable housing developer in Nevada
RCAC funded a $1,672,649 loan to Citizens of Affordable Housing, Inc. (CAHI) to finance water rights acquisition and land development for a 34-lot single family affordable housing subdivision. However, during the Great Recession the borrower went bankrupt and RCAC was forced to foreclose and take control of the property. Housing market conditions and a water rights issue on the property made selling the property for affordable housing development difficult.
In 2014, RCAC successfully resolved the water rights suit making the site available for development or procurement.
RCAC then sold the property to Nevada Rural Housing Authority (NRHA) to build housing for low- and moderate-income households. RCAC sold the land to NRHA at a reduced price to help make the affordable housing project feasible. NRHA is moving forward with plans to develop both single-family and multifamily housing on the property; construction is expected to begin in summer 2015.
RCAC assists nonprofit housing organizations to develop, finance and operate affordable housing programs and projects. The sale to NRHA enabled RCAC to sell an inventory property and ensured the property would be used for affordable housing development.