Latest news with #NevadaHousingDivision
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
Things Trump's tariffs could sink: Stock market, global economy, and…Lombardo's housing bill
Nevada Housing Division Adminisrator Steve Aichroth and Gov. Joe Lombardo describing Lombardo's housing legislation in Las Vegas Tuesday. (Photo: April Corbin Girnus/Nevada Current) State lawmakers question if President Donald Trump's world-roiling tariffs will undercut Republican Gov. Joe Lombardo housing bill, which allocates $250 million in funding to build more housing and expands the definition of affordable housing to include higher incomes. Lombardo has previously focused his attention on addressing the state's housing crisis by calling on the federal government to release more federal land he argues is needed to build more housing – even as housing groups warn against urban sprawl and a local analysis shows significant infill land available. Assembly Bill 540, heard Wednesday night by the Assembly Commerce and Labor Committee, seeks to use state general funds to help finance the development of housing. The bill also expands the threshold of affordable housing to include households making 150% of area median income and allows out-of-state contractors to develop in rural areas, which is currently prohibited by state law. Lombardo, appearing briefly before the panel Wednesday to introduce the bill, said the legislation 'expedites permanent housing solutions' and described his bill as the 'action plan to get this done so that significant progress is already underway in Nevada before land is even released.' Democratic Assembly Speaker Steve Yeager, citing the tariffs Trump announced on all imports from all countries Wednesday that sent financial markets into a severe tailspin Thursday, said Lombardo's bill doesn't match the times. The National Association of Homebuilders, Yeager added, anticipates tariffs will drive up the cost of all housing and construction costs. 'I do think there is a twinge of irony that we as a state are asking the federal government to give us land to be able to build but at the same time we are seeing federal policies that maybe prevent us from building on that land that's being released,' Yeager said. 'I don't know if this is the left hand not knowing what the right hand is doing.' Yeager asked if Lombardo's office had talked with Trump about the newly announced sweeping tariffs, and how their economic fallout could impede the state from building more housing. Ryan Cherry, the governor's chief of staff, said while the office has talked with the Trump administration about housing costs, 'as far as tariffs, we have not had direct conversations as of this time.' Asked earlier in the week, before the scope and scale of Trump's tariff proposals announced Wednesday were known, about the impacts of tariffs and Trump's other economic policies, Lombardo said Nevada will 'make adjustments on the fly.' Nevada Housing Division Administrator Steve Aichroth, who helped present the bill on Wednesday, noted the state has already had to weather high interest rights and supply chain issues in the last few years. Despite how Covid exacerbated the housing crisis, the state still tried to find a way to build, Aichroth said. While everyone would prefer to 'build in a perfect environment,' Aichroth said, 'we haven't seen a perfect environment in a long time. But we have to build. We have to get projects built and on the ground.' The American Rescue Plan Act, passed and signed into law in 2021 by President Joe Biden, allocated billions of dollars of relief funds to the state. The state directed $500 million of that assistance to the Home Means Nevada fund, which offered financing for housing projects throughout the state and helped prevent building from being stalled, Aichroth said. 'Whether it's tariffs or higher interest rates, any of those challenges we hear from builders and laborers, all of those factor into the current housing eco-system,' he said. 'There is never a perfect time to do this. We have to play the cards we are dealt.' AB 540 would change the definition of affordable housing to 'attainable housing,' creating the Nevada Attainable Housing Fund and Council, which will oversee the allocation of $250 million in funding for housing projects. Christine Hess, the chief financial officer of the Nevada Housing Division, said that $50 million of the funds will be directed toward 'loans and will remain assets of the division's trust so that we can continue to issue the hundreds of millions of bonds annually for home ownership and multi-family rental housing.' Hess said while financing building for buyers with more than 150% of area household median income — more than $120,000 a year in Nevada — 'sounds like a lot,' it was designed to meet the changing landscape of the cost of housing. 'The median home price up and up in Reno is $600,000,' she said. 'The idea was that up to 150% gives the division with input from the communities and stakeholders, to be flexible, and the amount of public funding.' Aichroth added the state has 'programs that basically focus on 60% and 80% and below.' Though there are other resources for lower income earners, the need is far greater. There are only 17 available homes for every 100 extremely low income households making less than 30% of AMI compared to 94 available homes per 100 renter households making 100% of AMI, according to the National Low Income Housing Coalition. Democratic Assemblymember Brittney Miller asked how projects would be prioritized. Aichroth said it would be a combination of community need and financial feasibility. He added the feasibility piece was extremely important 'to ensure that the projects can get built, built to fruition, and house people for a good length of time.' Real estate interests and homebuilding firms supported the bill, saying it would alleviate issues faced when it comes to developing more housing. Val Thomason, with the Democratic Socialists of America, said the bill 'seems like a giveaway to property developers.' Lawmakers asked little about expanding households to include 150% AMI and changing the definition of affordable housing to attainable, and how that portion of the measure might come at the expense of lower income households. Instead they directed much of their focus on the section of the bill that exempts projects from paying prevailing wages to construction workers that state law typically requires of publicly financed projects. Under Lombardo's bill, builders needn't pay prevailing wage if 'the qualified borrower demonstrates that the qualified project addresses a need for critical infrastructure in an area with a shortage of attainable housing.' Tina Frias, the CEO of the Southern Nevada Homebuilders Association argued that state prevailing wage requirements 'make it extremely difficult, if not impossible, for home builders to construct attainable homes.' 'We're willing to sacrifice construction workers,' said Las Vegas Democratic Assemblymember Max Carter, admonishing the provision. The state is 'willing to let them work for substandard wages. In fact, incentivize them working for substandard wages.' Reno Democratic Assemblymember Erica Roth pointed to two housing projects that received funding from the Nevada Infrastructure Bank. 'Both of those projects use prevailing wages and both of those projects didn't have trouble securing financing or penciling out,' she said. Despite the bill's language exempting the prevailing wage, Cherry said it was not the intent 'to be presented this way.' 'I will be clear and on the record for this committee that Governor Lombardo does support the use of prevailing wage on projects across the board,' he said. Labor groups, including the AFL-CIO, and progressive groups, including Battle Born Progress, also opposed the bill's provisions prevailing wage exemption. The committee took no action on the bill.
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.
Associated Press
17-03-2025
- Business
- Associated Press
Nevada Governor Lombardo Applauds FHLBank San Francisco's $10 Million Affordable Housing Investment in the Silver State
SAN FRANCISCO, March 17, 2025 (GLOBE NEWSWIRE) -- The Federal Home Loan Bank of San Francisco (FHLBank San Francisco) is deepening its commitment to increasing access to affordable housing and homeownership by investing in Nevada Housing Division Mortgage Revenue Bonds. Nevada Governor Joe Lombardo celebrates FHLBank San Francisco's investment in the state. 'Attainable homeownership for all Nevadans is one of my highest priorities and we can't do this alone,' said Governor Lombardo. 'The partnership and commitment of FHLBank San Francisco through this investment will give stability to many of Nevada's essential workers.' This $10 million investment strengthens FHLBank San Francisco's efforts to support low- and moderate-income homebuyers in the state of Nevada, which include downpayment assistance grant programs to support homebuyers. 'Our investment in Nevada Housing Division Mortgage Revenue Bonds allows us to reinforce our commitment to safe, affordable homes in Nevada while also delivering on our mission to provide reliable, low-cost liquidity and community investment resources to our member financial institutions,' said Joe Amato, interim president and CEO of FHLBank San Francisco. 'By working together with the Nevada Housing Division, we can strengthen communities in Nevada, foster economic growth and create a more vibrant and resilient future for all.' Supporting Home Affordability in Nevada Nevada has a severe shortage of affordable homes. The demand for more housing supply in the state has made it more difficult for Nevada residents to keep up with the housing market – both in buying and renting. The Nevada Housing Division Mortgage Revenue Bonds are highly rated investment securities (AA+ rating from S&P) backed by single-family mortgage-backed securities (MBS) that facilitate homeownership by supporting loans designed specifically for Nevada households aspiring to own a home. 'The Federal Home Loan Bank of San Francisco is uniquely positioned to address affordability issues for homebuyers in Nevada,' said Stephen Aichroth, Administrator of the Nevada Housing Division. 'We thank the Bank for their confidence in the Nevada Housing Division and their commitment to affordable homeownership for Nevadans.' FHLBank San Francisco is dedicated to supporting housing initiatives throughout its three-state region of Arizona, California, and Nevada. Since the Affordable Housing Program (AHP) was created in 1990, FHLBank San Francisco has awarded over $1.38 billion in AHP grants to support the construction, rehabilitation, or purchase of over 155,000 homes affordable to lower-income households, including $61.8 million in 2024 alone. Together, the 11 regional FHLBanks that make up the Federal Home Loan Bank System are one of the largest privately capitalized sources of grant funding for affordable housing in the United States. About the Nevada Housing Division The Nevada Housing Division, a division of the Department of Business and Industry, was created by the Nevada Legislature in 1975, with a mission to provide affordable housing opportunities and improve the quality of life for Nevada residents. They connect Nevadans with homes by providing financing to developers to build affordable housing, innovative mortgage solutions and down payment assistance programs and making homes more energy efficient, thereby lowering utility expenses. To learn more, visit About the Federal Home Loan Bank of San Francisco The Federal Home Loan Bank of San Francisco is a member-owned cooperative supporting local lenders in Arizona, California, and Nevada to build strong communities, create opportunity, and change lives for the better. The tools and resources we provide to our member financial institutions — commercial banks, credit unions, industrial loan companies, savings institutions, insurance companies, and community development financial institutions — propel homeownership, finance quality affordable housing, drive economic vitality, and revitalize neighborhoods. Together with our members and other partners, we are making the communities we serve more vibrant and resilient. To learn more, visit
Yahoo
12-03-2025
- Business
- Yahoo
Windsor Park deadlines loom, construction yet to start decades after homes began to sink
LAS VEGAS (KLAS) — The state is racing against a deadline to spend money for new homes for the Windsor Park community. About $37 million is allocated to build 93 new homes for people in the North Las Vegas neighborhood just northwest of Martin Luther King Boulevard and Carey Avenue. Some of those residents are still living in homes that have cracks and other major damage that occurred as land sank under the neighborhood. The homes were built in the 1960s in a predominately African-American community. Legislation passed in 2023 set the course for achieving a final solution to the problem, which has gone on for decades. Now, deadlines to spend the money are coming up and new homes still haven't been built. But state officials are optimistic. 'Will the homes be entirely completed by the end of 2026?' Nevada Housing Division administrator Steve Aichroth said Wednesday. 'The money will have to be spent by then. We do have some state funds that don't have that deadline, so it's still a little bit of a moving target. But we would anticipate that if they're not moving in by the end of 2026, it would be shortly thereafter.' Negotiations for land to be used in the project are ongoing, but the first deadline to spend $12 million of the $37 million total is less than a year away. Some of the funding is tied to federal grants that were part of the American Rescue Plan Act (ARPA). 2023: Sinking homes: Windsor Park problems get state's attention in Senate hearing 'They're working diligently to acquire the appropriate land. Once that is acquired, we anticipate the infrastructure being installed, and then the vertical construction of homes can commence,' Aichroth told a joint subcommittee at the Nevada Legislature Wednesday morning. Lawmakers reminded Nevada Housing Division leaders of what's at stake. Christine Hess, chief financial officer for the housing division, said if the houses aren't built in time it would constitute a breach of contract. Frank Hawkins, who played for seven years at running back with the Oakland Raiders after starring at UNR and Western High School, heads up the Community Development Programs Center of Nevada, the company that's handling the Windsor Park construction. Aichroth said the plan is to build one or two 'model homes' so residents can get an early look at what's coming before full construction begins. Windsor Park has been a hot political issue for years. Democratic Sen. Dina Neal, who was the driving force behind Senate Bill 450 in 2023, has accused North Las Vegas officials of ignoring the problem. Senator questions where money went for sinking North Las Vegas neighborhood, city denies wrongdoing Neal was not present at Wednesday's hearing, but was in contact with Democratic Sen. Angie Taylor, feeding her questions to ask. Land subsidence under Windsor Park was blamed on shrinking levels of groundwater in the area just east of the North Las Vegas Airport. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
