Low-cost home loans proposed to help lure teachers to Nevada

Thursday, May 25, 2000 | 9:44 a.m.

CARSON CITY -- In an effort to solve the growing shortage of schoolteachers, the state is putting the finishing touches on a plan to provide low-cost home loans to out-of-state teachers who come to Nevada and stay on.

Other states are offering bonuses, payments for college tuition, moving costs or tax breaks to lure teachers, who are in short supply nationally. In California, a proposal is being made to eliminate the state income tax on teachers.

Charles Horsey, administrator of the state Housing Division, said Wednesday he has been talking with school districts about the low-cost loan plan to help in the recruitment and retention of teachers.

Horsey and Lon DeWeese, chief financial officer for the division, outlined their plans to the state Board of Finance.

"Conceptually, this is very good," said Gov. Kenny Guinn, chairman of the panel. Guinn said California is paying its starting teachers $32,000, creating a disadvantage for Nevada, where the starting salary is $26,000 in Clark County and $25,000 in Washoe County.

Finance Board members noted that Nevada has no income tax and is offering no extra benefits such as bonuses, moving costs or tax relief for teachers.

The Housing Division now sells tax-exempt bonds and then offers first-time home buyers, based on their income, a package that is below the interest rate of a conventional loan.

George Ann Rice, deputy superintendent for human resources in the Clark County School District, said she is gratified the state is working on the plan, but she said it needs to be creative.

Rice said she was told by state officials that the home loan may be only one-half of 1 percent below the market. She said teachers won't move to Nevada for that benefit but the plan could be tailored so the teacher would make a lower payment in the first three years.

Clark County, which had been recruiting 1,800 new teachers a year, enlisted 2,300 this year.

State Controller Kathy Augustine said she is concerned that the financial advantage would be offered to another occupational group, such as dentists if they are in short supply, but Horsey said this would only involve public school teachers and would not include university professors.

The shortage is felt most in special education, math and science teachers, said DeWeese, who added that it won't be known until the bonds are sold how much a teacher would save on interest payments. He said they would be below a market rate loan.

In other action Wednesday, the Finance Board approved the issuance of $8.7 million in mortgage revenue bonds for construction of a 154-unit apartment complex in Henderson for senior citizens. The project would be near Horizon Ridge Parkway and Eastern Avenue.

Also approved was the sale of $40 million in mortgage revenue bonds to finance home loans for first-time home buyers with low to moderate incomes.