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AB241 proposal would require local rezoning of commercial parcels on request to enable multifamily/mixed-use development

2783771 · March 26, 2025
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Summary

Assemblymember Sandra Howdighi offered an amendment to AB241 requiring local governments to adopt ordinances that permit rezoning commercial parcels to multifamily or mixed-use housing upon a property owner’s request, aiming to convert underused retail and office sites into housing.

Assemblymember Sandra Howdighi introduced AB241 with an amendment that, if adopted, would require local governments to establish an administrative path to rezone commercially zoned parcels to allow multifamily or mixed-use housing when a property owner requests rezoning. The sponsor framed the bill as an infill redevelopment tool to turn underused commercial sites — such as vacant big-box stores and obsolete strip centers — into housing near infrastructure, transit and jobs.

Why it matters: Proponents say the measure would speed conversion of underused commercial land into workforce housing and reduce pressure to develop new greenfield sites. Opponents — including Clark County, Washoe County, the Nevada League of Cities and the Nevada Association of Counties — cautioned that comprehensive local planning designates commercial lands to preserve access to goods and services and that mandatory rezoning on request could upset carefully planned community balances.

Sponsor and amendment

Howdighi said the amendment replaces the bill and requires local governments to rezone commercial property to multifamily or mixed-use upon request; she stated the ordinance would allow localities to identify areas where housing is not appropriate (for example airport environs or Lake Tahoe). She said the rezone would be initiated by a buyer of the commercial parcel and that the seller is not forced to sell.

Support

Supporters included the Nevada Multifamily Alliance (Jennifer Lewis), Southern Nevada Regional Housing Authority, Nevada Conservation League, Nevada Realtors, the Nevada State Department Association and housing advocates. Supporters called the proposal a practical infill tool and said it would revitalize underutilized commercial corridors and reduce sprawl.

Opposition and concerns

Local governments and municipal associations urged retaining local planning authority. Washoe County representatives noted the county already adopted an ADU ordinance and that some provisions could be more restrictive than existing rules; Washoe also observed the county holds 78,000 approved but unbuilt housing units, which it argued called for careful planning of commercial-to-residential transitions. City and county officials asked for carve-outs for airport environs and other special areas and for flexibility to protect commercial services in neighborhoods.

Next steps

The sponsor said she will work with jurisdictions on adjustments, including stated carve-outs such as the Lake Tahoe Basin. Committee testimony was extensive; no committee vote on AB241 was recorded in this hearing.