Private Activity Bonds (PAB)

Private Activity Bonds (PAB) are tax-exempt debt instruments issued to finance projects that provide a public benefit but are developed by private entities. These bonds are issued by or on behalf of a State or Local Government and offer a lower cost of borrowing for certain qualified projects, such as transportation and infrastructure projects such as airports, healthcare facilities, educational institutions, affordable rental housing, etc.

What Is the Clark County PAB Program?

The State of Nevada Department of Business and Industry (State) receives an annual allocation of PAB volume cap through Section 146 of the Internal Revenue Code, which is adjusted annually based on population. The State retains half of this allocation and distributes the remaining half to County and City jurisdictions, with those allocations based on population data from the State Demographer’s office. The allocation for Unincorporated Clark County for the past several years has been well over $60 million. Incorporated cities within Clark County also receive separate PAB allocations. These bonds provide financing to developers for building or renovating affordable housing. Clark County’s current priority is to use their PAB volume cap allocation in conjunction with 4% LIHTC’s (Low-Income Housing Tax Credits) for affordable housing developments. Pairing the PAB debt financing structure with equity from the LIHTC’s is the primary way affordable, multi-family housing is built for low-income households in Southern Nevada.

Application Process

Clark County distributes their PABs through an annual application process and the State of Nevada Housing Division (NHD) issues the bonds. The Clark County Community Housing Office releases an application for PAB volume cap annually once the State Demographer’s office determines the final allocations, which are based on population statistics. This typically occurs in May or June. The County requires the applications to be completed with enough time to receive Clark County Board of County Commission (BCC) approval while meeting the State’s September 1^st submission deadline. In recent years, the PAB volume cap has not been oversubscribed but we expect this to change in upcoming years, in which case the applications would then be scored competitively to determine allocations.

If you are interested in receiving funding announcements or more information about Clark County’s PAB program, please send your contact information to CHF@ClarkCountyNV.gov.

PAB Resources

Private Activity Bond Guidelines (PDF Document)

Private Activity Bonds Application Only (Fillable PDF Document)