Nevada lawmakers support AB 540 to address rural housing and contractor shortages

The Assembly Committee on Commerce and Labor convened on April 2, 2025, to discuss critical legislation aimed at addressing Nevada's housing supply shortage. The primary focus was on Assembly Bill 540 (AB 540), which seeks to enhance housing development, particularly in rural areas, by facilitating contractor licensing and promoting private investment.

Christine Hess, a key presenter, emphasized that AB 540 is a vital step toward resolving the housing crisis while fostering infrastructure development and vibrant communities. The bill proposes measures to tackle workforce challenges in rural areas by allowing licensing reciprocity for contractors from other states. This change aims to increase the availability of licensed contractors in regions where housing demand is high but supply is limited.

David Behar, executive officer of the Nevada State Contractors Board, supported the bill, highlighting its potential to streamline the licensing process for contractors willing to work in rural Nevada. He noted that the legislation would enable licensure by endorsement for out-of-state contractors, provided they meet specific criteria, including having a valid license in another state and no disciplinary actions against them. This provision is expected to expedite the licensing process, allowing contractors to begin work within 60 days.

Bill Brewer, executive director of the Nevada Rural Housing Authority, pointed out the challenges faced by rural communities in attracting contractors due to distance and competition from urban areas. He argued that AB 540 would expand the pool of available contractors, thereby reducing costs and complexities associated with rural development projects.

Sheldon Mudd, executive director of the Northeastern Nevada Regional Development Authority, echoed these sentiments, stating that housing remains a significant barrier to economic development in rural areas. He praised the bill for recognizing the unique challenges faced by these communities and providing necessary support for housing development.

Madeline Armstrong, legislative director for Governor Lombardo, presented the governor's Housing Access and Attainability Act, which aligns with the goals of AB 540. She highlighted the importance of collaboration with local governments and federal partners to facilitate housing development and ensure that federal lands are utilized effectively for residential projects.

The committee members expressed support for the bill while raising concerns about ensuring that housing developed with state funds remains accessible to Nevada residents. Discussions included potential stipulations to prevent out-of-state corporations from purchasing homes funded by the Nevada Attainable Housing Fund.

Overall, the meeting underscored the urgent need for legislative action to address Nevada's housing crisis, particularly in rural areas, and the collaborative efforts required to create sustainable solutions for housing access and affordability across the state. The committee plans to continue discussions on the bill as it progresses through the legislative process.