County experiments with senior housing project plan

J. Craig Anderson

Tuesday, Nov. 15, 2005 | 8:23 a.m.

Clark County is experimenting with a pilot affordable housing project for seniors that would test whether developers are willing to buy federal land to build low-rent apartments under current Bureau of Land Management guidelines.

County officials said if area developers pass on the deal -- which wouldn't surprise them -- they hope the failure will spark discussions with the BLM about streamlining its process.

The pilot project, which has been in the county approval process since June, would create an apartment complex with up to 105 units for seniors whose annual income is no more than 80 percent of the area's median income. Median income in Clark County is now just under $30,000, meaning if the project was completed, the income level would be about $24,000.

The county has chosen a 5-acre section of BLM land on the north side of Harmon Avenue just east of South Jones Boulevard. The parcel is already zoned R-3 for multifamily housing.

The County Commission will vote today on a proposal to seek bids from developers on the project, but the official who spearheaded the plan said he isn't confident the private sector will bite.

Douglas Bell, county manager of community resources, said the BLM's Interim Guidance Policies and Procedures, approved in 2004, are convoluted and create potentially insurmountable obstacles for private homebuilders, but the county can't push for changes until it has shown a real effort to work with the current system.

"We are trying to take this out for a spin, to see how it's going to work," Bell said.

One problem, he said, is that developers looking to buy BLM land at a discount for affordable housing can't purchase the property directly from the federal agency. A government entity such as the county must buy the land and then transfer it to the builder.

Using the county as a "middle man" extends the amount of time from concept to completion, Bell said, since the county must devise plans for a development, put the contract out for competitive bids, choose a winning bid, draft and sign a development agreement with the builder and buy and sell the land.

Clark County would prefer to have the BLM sell the land directly to an interested developer, Bell said. The federal agency also has its own due diligence process that can delay the developer from getting control of the site for up to six months.

"Time is money to a developer," he said.

Another problem is that most developers of affordable housing seek financial assistance from the Department of Housing and Urban Development, and that the guidelines don't allow them to apply with HUD until after they have committed to the project.

Bell questioned whether developers would agree to build such a project without any guarantee of government aid.

But BLM officials said the interim guidance, which established a system for buying BLM land for affordable housing at discounts up to 95 percent, is dictated to a great extent by the Southern Nevada Public Lands Management Act of 1998.

Juan Palma, the BLM's Las Vegas field manager, said the law requires that discounted land be sold "only to state or local government entities."

"We don't have any latitude in terms of selling land directly to developers," Palma said.

But Bell said other parts of the BLM's guidelines are based on the agency's interpretations of the law.

"We believe BLM could change them internally if they wish," he said.

Merv Boyd, BLM field manager for sales and acquisitions, said he isn't familiar with the HUD restrictions, and HUD officials could not be reached for comment Monday.

Palma said about 1,000 acres have been set aside for affordable housing projects but BLM hasn't received any specific proposals.

Gov. Kenny Guinn's office has proposed purchasing the entire 1,000 acres for $1 per acre and acting as a broker to developers of affordable housing, but the BLM is not expected to sell at such a low price.

Still, Palma and Boyd said they would welcome discussions with local government officials about changes to the guidance policies.

"We've had no requests from local government for any kind of modifications for interim guidance," Boyd said.

The county's goal is to make the senior housing project a success, Bell said, but if developers reject the idea, officials are hoping to gather feedback to use in discussions with BLM.

In either case, Bell said, it's going to take more than the federal government to solve the valley's housing problem, and he suggested that big employers such as hotels ultimately have to subsidize housing for their employees.

J. Craig Anderson can be reached at 259-2320 or at craig@lasvegassun.com.