(The Center Square) - A $218 million affordable housing project has been fast-tracked for development on a federal site near Las Vegas.

In addition, the 390-unit project in the city of Henderson is getting help from taxpayer-funded programs. The Nevada state government provided $1.7 million in tax credits, said Christine Hess, the Nevada Housing Division’s CFO.

Hess told The Center Square that the project also received a $10.5 million loan from Clark County and a $4.26 million loan from the state’s Growing Affordable Housing Program.

The project relies on private loans and federal tax investments, but the other funds were needed to cover the financing gap, Hess explained. She said the taxpayer-funded state and county money will allow the project to be completed.

The federal government is playing a significant role. Last week, the Bureau of Land Management transferred almost 19 acres of land near Las Vegas Boulevard and Larson Lane for the housing project.

For the transfer, Ovation, the housing project developer, bought the land at $100 an acre, said Steve Aichroth, administrator of the Nevada Housing Division. He told The Center Square that this type of deal allows these developments to be built.

According to the city of Henderson, transferring land like this typically takes five to eight years, but the city did it in two and a half years.

"The streamlined process creates a pathway for other agencies and organizations to follow, helping accelerate future housing projects across our region," Mayor Michelle Romero said.

Justin Abernathy, the acting Nevada director for the Bureau of Land Management, said the federal agency is proud of its work with the state to make public lands available for affordable housing in Henderson. "Together we are fostering community development and fueling economic opportunity to improve the quality of life for Nevadans."

To qualify for federal tax credits, the housing project must offer rents that are affordable for residents earning 60% of the area’s median income, Aichroth said.

The Nevada Housing Division administrator noted because Clark County provided money, the project will also have units for people who make between 50% and 80% of the area’s median income.

Residents who qualify for the housing units will pay monthly rents ranging from $989 to $1,646, Hess told The Center Square. She added the development must limit rents to those rates for 30 years in order to receive federal tax credits.

Aichroth told The Center Square that if a unit goes to someone earning over 60% of the area’s median income, the next unit must go to someone earning less, so the units average 60%.

For example, if someone in one unit makes 70% of the area’s median income, the next unit must go to someone who makes 50%.

According to Hess, for a one-person household, 50% of the area’s median income is $36,950, and 60% is $44,340.

For a three-person household, those figures are $47,500 and $57,000, respectively, Hess said.

Hess said the housing project will offer one-bedroom, two-bedroom and three-bedroom units.

Alan Molasky, chairman of Ovation, the developer, said the affordable housing project “demonstrates the power of collaboration and what can be accomplished when public agencies and private developers unite around a shared commitment to addressing one of our community’s most pressing needs.”

According to Aichroth, Nevada local governments can reserve land through the BLM and develop it as long as it adheres to regulations for federal housing programs.

He added that the Nevada Housing Division recently hired an employee to help facilitate the reservations and “transfer the land for development of affordable housing.”