A rendering of the Sierra Flats affordable housing project off Butti Way in Carson City.
Oikos Development Corp.
Developers plan to break ground on the 160-unit Sierra Flats affordable housing project in Carson City on Thursday.
PalaSeek LLP, Oikos Development Corp., and CM Development — which make up Sierra Flats Senior GP — will break ground on the 160-unit HUD project located on Butti Way, with Mayor Lori Bagwell, Gov. Steve Sisolak, and developer representatives in attendance.
“The Sierra Flats project will bring much-needed relief to low-income renters in Carson City who have struggled to keep up with the rising cost of living here in Northern Nevada,” Bagwell said in a statement. “Public-private partnerships such as this are critical to ensure our community can continue to increase the number of available affordable housing units and create sustainable solutions for our housing crisis.”
Phase one of the project will include 40 senior housing units and 40 family units with average rental prices expected to be between $450 and $1,150, according to a joint press release issued by developers and the city.
“The project is intended for seniors and families whose income is not more than 60 percent of the Carson City median gross income,” the release says. “Average rents in Northern Nevada have jumped 89 percent in the last seven years, from below $900 to $1,680, according to the real estate appraisal and consulting firm Johnson Perkins Griffin.”
According to the National Low-Income Housing Coalition, Nevada has a shortage of more than 84,000 affordable rental homes for extremely low-income renters.
“There are only 20 affordable and available rental homes for every 100 extremely low-income renter households in the state,” the release said.
Carson City acquired the property for the project in 1960 and directed city staff to request proposals from developers for an affordable housing project in January 2019. In early August, the Board of Supervisors voted to subordinate interest in the property so that it could be conveyed to developers — at no cost — per a previous development agreement. That agreement stipulates the land must be used for affordable housing for at least 51 years.
“Our company was created in direct response to the lack of affordable housing across the country,” Oikos Development Corp., President and CEO Michael Snodgrass said. “We want to provide beautiful, energy-efficient, and sustainable solutions for low-income families and their communities.”
According to developers, the project will be built to the National Green Building Standard, which focuses on site design, resource efficiency, water efficiency, energy efficiency, indoor environmental quality, and operation and maintenance.
Sierra Flats will also include solar power to reduce tenant electricity costs and electric vehicle charging stations.
"A lack of affordable housing impacts all aspects of us — our health, our happiness and our ability to dedicate ourselves to our families and careers," Sisolak said in a statement. "The work we are doing together is imperative: getting just one more person into a home makes an incredible difference. I'm proud to work with organizations across the state to do this critical work."
The project is being financed through State of Nevada Housing Division tax credits, the National Housing Trust Fund, and the HOME Investment Partnerships Program. Sierra Flats is expected to be complete before the end of 2023.