Latest news with #NevadaHousingAccessandAttainabilityAct
Yahoo
4 days ago
- Business
- Yahoo
Lombardo's housing attainability plan shrinks, now expected to help 5,000 households
LAS VEGAS (KLAS) — A scaled-back version of Gov. Joe Lombardo's Nevada Housing Access and Attainability Act will help fewer people, according to state officials. The ambitious plan to use state funds to encourage housing construction and other help for Nevadans who need affordable housing solutions has shrunk. When Lombardo presented the plan in April, it was described as a $250 million plan that would provide homes for 16,000 households. Pressure on state budgets has forced adjustments as spending plans move through the Nevada Legislature. Funding for the affordable housing plan is now set at $133 million, and it's expected to reach about 5,000 households, according to Christine Hess, chief financial officer for the Nevada Housing Division. The lower spending levels didn't seem to dampen support for affordable housing. Kathi Thomas, chief housing officer of the Southern Nevada Regional Housing Authority, called in to support Lombardo's plan. 'We are in the midst of a housing crisis, and we understand that this legislative body has a number of competing priorities and challenges with the budget. But we are all committed to building a strong economy, and there is no economic model that does not have housing at its core,' Thomas said. Hess outlined the new spending levels during a Friday hearing before the Senate Government Affairs Committee. The $133 million will fund programs in three ways: $83 million to support the development of attainable housing to serve those at or below 150% of area median income. The help will come in the form of loans, grants or rebates. This category will also support the development of low-income tax credit properties and land acquisition for attainable housing. $25 million for home ownership opportunities in the form of down payment assistance and interest rate buydowns. $25 million for incentives to develop attainable housing, expected to be in the form of matching grants Hess said previous plans to fund supportive housing development, rental assistance and eviction diversion programs will not be implemented initially as Assembly Bill 540 — the Nevada Housing Access and Attainability Act — ramps up. Those will still be eligible uses, but are not expected to be funded initially because they are available elsewhere. The bill didn't receive an immediate vote after it was heard Friday. 'This is not a fund for 3,000-square-foot homes. This is a fund to really catalyze and get the housing built,' Hess said. 'More housing to have people that are living in RV parks not have to live in RV parks.' Democratic Sen. Edgar Flores said he was concerned that the plan didn't specify goals to help people buy a starter home. He said that's the problem that's happening right now. Ryan Cherry, chief of staff for Lombardo, said that was discussed but not written into the language of the housing act because goals will change over time. He said the governor wants the agency to have the ability to adjust its goals to meet current needs. 'For-sale homes was really the impetus of this initiative,' Hess said. She said that will influence the amount of funding that goes toward helping families who can't qualify. The initial plan included $50 million for home ownership initiatives. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Yahoo
04-04-2025
- Business
- Yahoo
Here's Gov. Joe Lombardo's plan to solve the Nevada housing crisis
LAS VEGAS (KLAS) — A $250 million plan to spur construction of homes and apartments for low- to middle-income Nevadans is projected to provide homes for 16,000 people, according to officials who presented it Wednesday night in Carson City. Republican Gov. Joe Lombardo led the presentation along with state housing officials and a lineup of construction and business executives who support the plan. 'The Nevada Housing Access and Attainability Act represents a bold, innovative and comprehensive approach to addressing our state's housing challenges by lowering the cost of housing, expanding attainable housing options and eliminating barriers to development,' Lombardo said early in the hearing, which started at 5 p.m. and lasted well past 8 p.m. At its core, the proposal would help construction move forward in a business climate that has brought many projects to a halt. Hard questions from Democratic lawmakers on the Assembly Commerce Committee and opposition from unions suggest the bill — Assembly Bill 540 (AB540) — might need some changes if it is to survive in the Nevada Legislature. Part of the bill would allow exceptions from paying construction workers prevailing wages on some housing projects. And that's a major sticking point with unions. 'We agree that housing is a crisis in our state, but AB540 is not the solution. In fact, it does real harm to the very workers who keep this state running,' union representative Ross Kinson said. 'You cannot say you're building housing for essential workers while undermining the wages of the essential workers who build it. This bill invites a race to the bottom,' Kinson said. He was speaking for the Northern Nevada Central Labor Council, the AFL-CIO and Northern Nevada Building Trades. The bill is one of Lombardo's priorities this session, and it would require $200 million from the state general fund. An additional $50 million would come from accounts managed by the Nevada Housing Division. Here's how that money would be allocated: $100 million for competitive loans or other financing to support both multi-family and single family home construction, both rental and for-sale $25 million to support financing of land for housing development $50 million for home ownership, in the form of down payment assistance, interest rate buy-downs or rebates $25 million for rental assistance $25 million for matching grants to local governments $25 million for supportive housing Christine Hess, chief financial officer for the Nevada Housing Division, emphasized that these allocations are currently a 'sketch' that will ultimately be determined by the Nevada Attainable Housing Council. The bill would create the council to direct the allocation of funding. The first two allocations add up to $125 million, half the total funding, and would be part of loan programs. Those loans would be available for middle-income households making up to 150% of the Area Median Income (AMI) where they live. It's that segment of the population that doesn't qualify for help under other government programs, but still can't afford a home in Nevada. Jess Molasky, COO at Nevada-based Ovation Development, called them the 'missing middle,' and said it's a growing segment of the population. They are Nevadans making $60,000 to $100,000. Molasky's grandfather was Irwin Molasky, an important figure in the development of Las Vegas for decades beginning in the 1950s. Hess estimated that the bill would mean homes for about 16,000 Nevadans. Lombardo said the funding for AB540 would go much further than just spending taxpayer dollars once. The $200 million from the general fund would leverage the development of $1 billion in new housing solutions, he said. 'We all know that Home Means Nevada, and this bill seeks to ensure that our state anthem becomes a realized dream for all Nevadans seeking affordable and attainable housing options,' Lombardo said. 'This $200 million of initial funding will aid in the development of attainable housing, provide gap construction financing, provide financial assistance to support housing services for low-income households, provide rental assistance for fixed-income and low-income households, aid in land acquisition for attainable housing development, provide down payment assistance for essential workers like teachers, nurses and law enforcement, and match grants for local governments who commit to increasing attainable housing supply,' he said. Lombardo added that negotiations are continuing with the Bureau of Land Management to identify areas that are eligible for housing development, with a target of May 1 to finalize a list. 'With 85% of our state under federal control, Nevada has struggled to find land to build more housing. However, since taking office, my administration has worked tirelessly to change this,' he said. While unions waited to have their say, executives explained how the approach would break down barriers to construction. Tina Frias, CEO of the Southern Nevada Homebuilders Association, cited a study from the University of California, Berkeley, that estimated prevailing wage requirements had inflated development costs by $94,000 per unit. That's especially problematic in rural Nevada, where the need for affordable housing needs attention. But unions and Democrats pushed back hard on any suggestion that workers should be expected to do the job for less money. 'We believe that if taxpayer funding is going to go into construction projects these should be covered by public works and prevailing wage,' Ronald Young said, speaking for the International Brotherhood of Electrical Workers Local 357. Democratic Assem. Max Carter said labor is less than 10% of the cost for housing, and railed against other provisions of the bill meant to ease construction costs in rural counties. 'We're bending over backwards to create profit streams for out-of-state companies. Why is that?' Ryan Cherry, Lombardo's chief of staff, emphasized that the administration supports prevailing wage. 'What we are trying to do is find a way to balance the cost approach in some of the areas in our communities.' Cherry and Hess both emphasized that contractors who pay prevailing wage would get the preference when they were available. And Nevada Housing Division Administrator Steve Aicroth clarified, 'In the space that we operate, there is not a residential prevailing wage standard.' If the prevailing wage question can be resolved, AB540 appears to have wide support. Builders lined up to testify in support, and a representative of the Clark County Education Association called it 'a game-changer' for teachers, possibly helping more than 5,000 families buy homes. Democratic Assembly Speaker Steve Yeager raised the question of tariffs and how they might impact actual costs and the bill's real impact. 'I would love to say we can build in a perfect environment,' Aicroth answered. 'We haven't seen a perfect environment in a long time and I don't know that we'll see a perfect environment in the near future. But we have to build. 'We can't afford to wait,' Aicroth said. 'It is the hand that we're dealt, and it's the cards we're going to play.' Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Yahoo
02-04-2025
- Business
- Yahoo
Lombardo downplays concerns about impact of Trump tariffs
Gov. Joe Lombardo speaking in Las Vegas Tuesday. (Photo: April Corbin Girnus/Nevada Current) Republican Gov. Joe Lombardo on Tuesday downplayed concerns about the potential consequences of tariffs and other economic policies imposed by the Trump administration, saying Nevada will 'make adjustments on the fly.' Lombardo made his comments in Las Vegas at a press conference at a soon-to-open affordable housing complex for seniors, where he was highlighting his housing bill. The Nevada Housing Access and Attainability Act, as Assembly Bill 540 has been named, will be heard by the Nevada State Legislature's Assembly Commerce and Labor Committee on Wednesday night. It promises to leverage $250 million in state funds to support more than $1 billion of new housing projects. When asked about Trump tariffs driving up the cost of constructing new homes, Lombardo acknowledged that 'tariffs are the great unknown,' before pivoting to saying his housing legislation is designed to be flexible enough to react to the needs of developers. 'We'll make adjustments on the fly,' he said. Housing groups have warned that Trump tariffs on lumber, steel, aluminium and other key goods will increase the cost of constructing homes. The National Association of Home Builders, whose Southern Nevada affiliate participated in Lombardo's press event Tuesday, have estimated that 7% of all goods used in new residential construction are imported. When asked about Trump's broader economic policies and their potential negative impact on Nevada's economy, Lombardo responded that it is the obligation of the governor and the Legislature to identify the state's needs and prioritize. 'You have to triage what your priorities are,' he said. 'You have to identify what the problems are, what the priorities are, and housing is a priority. Housing is a priority and we'll make adjustments within the state budget's services.' Lombardo in his response also alluded to recent conversations about potential cuts to Medicaid and Medicare. Those concerns, which were raised via letters and legislative hearings, are still pending as the federal budgeting process continues. Legislative Republicans have suggested they'd be more open to cutting services than raising revenue to backfill federal cuts. Early data suggests international visitation to the United States is rapidly declining due to concerns about Trump's trade wars, immigration enforcement without due process, and outlandish proposals to buy or take over other countries. Lombardo, who was endorsed by Trump, has previously said that 'Trump will bring down the rising costs of housing, groceries, and gas' and 'oversee a new era of American prosperity.' He expressed none of that enthusiasm Tuesday.
Yahoo
25-03-2025
- Business
- Yahoo
Nevada Gov. Lombardo unveils $1 billion affordable housing plan: ‘We have to expand'
LAS VEGAS (KLAS) — Republican Nevada Gov. Joe Lombardo introduced legislation Monday aimed at building affordable housing across the state, he told 8 News Now. The proposal marks the governor's first legislative proposal this legislative session. The Nevada Housing Access and Attainability Act would create a housing fund to assist in the development of $1 billion in affordable housing, the governor said. About $250 million would go toward rental and downpayment assistance through grants, loans and rebates. 'We are by no means in a situation where we have to restrict growth versus expand upon growth,' Lombardo said. 'And for us to be successful as a community and an economy, we have to expand.' The proposal would also expand affordable housing eligibility for Nevada households making up to 150% of the area median income, the governor's office said. A major part of the proposed law would remove restrictions for builders looking to create affordable housing on government-owned land. Auctions to buy the land often lead to affordable housing builders getting priced out, Lombardo said. 'It becomes cost prohibitive for affordable housing,' Lombardo said about that process. 'If you're going to build custom homes or high-end retail, yeah, it makes sense, but when we're addressing the affordable, attainable housing issues, it's got to be able to pencil out to get builders in the space,' Lombardo said, adding his staff worked on the proposal with Nevada's federal delegation and the White House. The proposal was not entered into the legislative record on Monday afternoon and did not yet have a bill number. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
