Nevada committee hears plan for $200 million attainable housing fund; labor objects to prevailing‑wage carve-outs

CARSON CITY — The Assembly Committee on Commerce and Labor on April 10 heard detailed testimony on Assembly Bill 540, the Nevada Housing Access and Attainability Act, a proposal led by Governor Joe Lombardo to create a Nevada Attainable Housing Fund with a $200 million state appropriation and to change permitting, funding and contractor licensing rules to speed construction of housing statewide.

Supporters, including officials from the Nevada Housing Division and local government and industry representatives, told the committee the bill aims to expand supply across a broad range of incomes and to push more housing into rural communities. Governor Joe Lombardo called the measure “the Nevada Housing Access and Attainability Act” and said it seeks to "lower the cost of housing, expand attainable housing options and eliminate barriers to development." Steve Acroft, administrator of the Nevada Housing Division, told the committee, "If it doesn't pencil, it does not get built," summarizing the agency's view that state financing can bridge gaps that prevent financially viable projects from proceeding.

The bill would create a Nevada Attainable Housing Account and an advisory Nevada Attainable Housing Council. Division officials described a combined capital plan of $250 million — $200 million in proposed general‑fund appropriations plus $50 million the housing division would designate from its trust funds — intended to leverage additional private and federal financing. Christine Hess, chief financial officer of the Nevada Housing Division, described an early sketch of funding tranches the task force discussed: roughly $125 million for competitive loans or other financing mechanisms for multifamily and single‑family projects; $50 million for homeownership programs (down‑payment assistance, rate buy‑downs or rebates); $25 million for rental assistance; $25 million for matching grants to local governments for fee waivers; and $25 million for supportive housing. The division projected that a $250 million initial investment could leverage roughly $1 billion and support about 16,000 Nevada households over four years.

Panels of local officials and private‑sector witnesses described how the money could be used and urged urgency. Clark County Commissioner Marilyn Kirkpatrick and city managers from Reno and other jurisdictions said fee waivers, reimbursements and land acquisition support would help projects clear financial hurdles. Developers and lenders, including Ovation Development and Nevada State Bank, said many projects are designed and entitled but “stuck on the shelf” because current capital markets and material costs leave a funding gap; they described the bill as a potential source of catalytic financing.

Several rural and regional witnesses backed provisions to ease contractor licensing in designated rural shortage areas. David Behar of the Nevada State Contractors Board described proposals for licensure by endorsement and provisional licensing limited to declared rural shortage areas, with fingerprinting and discipline checks required and fee waivers for those limited licenses.

Labor unions and allied groups — including the Northern Nevada Central Labor Council, International Brotherhood of Electrical Workers Local 357, SEIU and several building trades locals — strongly opposed language that would exempt certain attainable housing projects from prevailing‑wage statutes. Ross Kinson of the Northern Nevada Central Labor Council said, "You cannot say you are building housing for essential workers while undermining the wages of the essential workers who build it," and warned the exemptions create a two‑tier system that invites out‑of‑state low‑wage contractors to underbid local trades on taxpayer‑funded work.

Housing division officials and the governor's legislative director said they would continue negotiating language and that the division expects to use an allocation plan, modeled on its existing public‑process Qualified Allocation Plan for low‑income tax credits, to distribute funds quickly without the full state regulatory rule‑making process. The administration said it plans to finalize a memorandum of understanding with the Bureau of Land Management to identify federal land eligible for disposal for housing development by May 1 and that it will work with the attainable housing council and stakeholders on eligibility, compliance and reporting.

The committee took no vote; testimony included dozens of organizations and public commenters in person, by phone and from Las Vegas. Committee members pressed presenters on several policy details — including whether funded homeownership units will include owner‑occupancy or deed restrictions, how the division will enforce affordability over time, whether the division may lend to for‑profit entities under Nevada constitutional limits, how rural projects will secure labor and materials, and what reporting the division will provide to the Legislature. Division counsel and outside counsel addressed the constitutional question about loans and indicated an initial view that state loans for a valid public purpose can meet constitutional requirements when structured not as a guaranty.

The hearing concluded with the administration agreeing to follow up with legislators and stakeholders to tighten language on conflicts of interest, reporting, allocation priorities and prevailing‑wage concerns. No formal action was taken by the committee during the session; presenters and committee members scheduled further meetings to resolve remaining points.