SNHBA seeks to help create more affordable housing

The Southern Nevada Home Builders Association is backing legislative efforts in Carson City to create more affordable housing in the region, and its leadership is going to Washington D.C. next week to have the federal government make more of its land available for residential development.

There’s been a lot happening on the housing front both at the state and federal level.

Earlier this month, U.S. Rep. Mark Amodei of Northern Nevada led House Republicans in approving a reconciliation bill that included an amendment to sell off more than 65,000 acres of public lands in Nevada to use for affordable housing, a move that blindsided and upset environmentalists and congressional Democrats.

They have backed ongoing bipartisan efforts led by Democratic Sen. Catherine Cortez Masto, that allows Clark County to develop 25,000 acres of federal land for affordable housing and business growth while setting aside more land for conservation. The Southern Nevada Economic Development and Conservation Act that expands from the existing boundary of the valley has been unsuccessful in Congress.

Amodei’s amendment has caused consternation because the proceeds from the federal land sales wouldn’t go to Nevada to pay for infrastructure and conservation as has been past practice, but instead be used to pay for tax cuts proposed by President Donald Trump. The proposal reportedly includes land in Mesquite, Searchlight and Moapa instead of the suburbs of the Las Vegas Valley.

That drama comes on the heels of efforts in Nevada where Gov. Joe Lombardo backs Assembly Bill 540 that allocates $250 million for attainable housing projects and expands the definition of those who qualify up to 150 percent of the area median income.

AB 540 is backed by the builder group along with Assembly Joint Resolution 10 that urges Congress to release more land for development and lends support to Sen. Masto’s bill, according to Tina Frias, CEO of Southern Nevada Home Builders Association.

“One of our biggest constraints is on housing production in Nevada and that’s tied to our lack of developable land,” Frias said. “This is an issue we’re facing across the nation. According to the National Association of Home Builders, national values for residential lots have hit an all-time record high and an issue more pronounced in Nevada where usable land is limited.”

Frias said while federal lands represent one of the most powerful tools Nevada has to expand the housing supply, she added that access to that land “must be timely, coordinated and aligned with infrastructure and local planning efforts,” Frias said.

There’s a number of respected institutions that have weighed in on this, including UNLV’s Lied Center for Real Estate, Brookings Mountain West and Nevada Housing Coalition, Frias said. All point to the same conclusion that there’s not enough housing supply in Nevada to meet the growing demand of the growing population.

“This imbalance continues to drive up costs and put more pressure on Nevada families,” Frias said. “Those issues are compounded with limited land availability and the price of land which is between $1 million and $1.8 million per acre and that couple with our median (new-home) price now at $498,974 and interest rates being between 5.5 percent to 7 percent, which obviously impacts monthly housing costs.”

That’s why Frias said they need some bold and coordinated policies at all levels of government. She praised AB 540 as a way to increase supply and Assembly Joint Resolution 10, which targets the supply-side barriers that have made it harder to build affordable and attainable homes.

On the federal level, Frias said SNHBA has publicly supported the Southern Nevada Economic Development and Conservation Act as a critical step forward.

“By expanding access to land for housing development the legislation addresses one of the core issues behind housing affordability,” Frias said. “While we do hope that Congress will allocate additional land for residential use, this bill marks essential progress ensuring more land for Nevada.”

As for Rep. Amodei’s amendment, Frias said while she has not been directly involved with its development, she understands it would redirect funds that are currently used in Nevada for infrastructure, education and environmental conservation into the U.S. Treasury. She said they are seeking clarity on the amendment and what it means and working with his office to better understand what it means for the funds.

“It’s critical that we fully understand the implications of such a change and what it could mean for Nevada’s future,” Frias said. “SNHBA looks forward to engaging Congressman Amodei’s office to gain clarity on this amendment. It’s important to recognize that if Nevada runs out of developable land available for sale through the Bureau of Land Management, the money we currently receive from those sales — funds that support critical local investment — would no longer be available.”

Frias said it’s important to work on both sides of the aisle and make sure there are bipartisan efforts that are focused on the best interests of Nevada.

“This is a time more than ever we need to come together because we’re truly at a crossroads in terms of the challenges our industry is facing,” Frias said. “At the end of the day, homebuyers aren’t partisan. They’re looking for attainable housing.”

Frias also noted that they remain hopeful the United States Federal Joint Task Force on Federal Land for Housing will provide another avenue to support residential development in the region. It’s vital, however, that Nevada’s housing stakeholders have a direct voice in that task force to ensure the region’s unique local needs and growth pressures are properly understood and addressed, she added.

By going to Washington next week to talk with the federal delegation, Frias said they hope to create some momentum for federal legislation and express how important it is to come together and take a multifaceted approach and collaborate in the best interests of Nevada.

“It’s clear the emphasis on Nevadans working united and holding a bipartisan voice putting for Nevada families first. Homes must remain in reach for every Nevadan,” Frias said. “That will require smart federal support, streamlined regulation and targeted investment. SNHBA stands ready to be a committed partner in this effort.”