Nevada governor calls for more affordable housing for ‘missing middle’ households

Gov. Joe Lombardo called on industry leaders’ support in getting his housing bill through the Nevada Legislature one day before its scheduled first public airing in front of lawmakers.

Arguing that a supply issue is behind the challenge of affordable housing for Nevada residents, the Republican governor, home builders and tradesmen introduced key elements of Assembly Bill 540 during a Tuesday press conference at Heirloom at Pebble, a 55-plus, income-restricted apartment complex Ovation Development plans to open next month in Las Vegas.

Steve Aichroth, administrator of the Nevada Housing Division, said the agency has seen firsthand the challenges facing affordable housing development.

“The housing division occupies the space where developers, absent financial assistance, cannot — literally cannot — develop because the deals don’t pencil,” Aichroth said. “When the deals don’t pencil, stuff like this just does not get built.”

Proponents of AB 540 contend the bill would make housing more affordable for the “missing middle,” households who can’t afford to buy a home but don’t qualify for affordable housing units. The bill proposes allocating $250 million in state funds for “attainable housing” projects, expanding the definitions of affordable housing to allow it to benefit people with up to 150 percent of area median income, reducing prevailing wage requirements to preferences and expediting processing for attainable housing developments, among other policy proposals.

“These essential workers are education, public safety and healthcare leaders in our community, and they deserve access to affordable and attainable homes in the very neighborhoods they serve,” Lombardo said.

Jess Molasky, chief operating officer of Ovation Development and Management Group, said the governor’s staff spoke to the general contractor and apartment management company and others in the industry to develop their proposal.

“Unlike deeply subsidized housing, market-rate apartments are scalable, sustainable and flexible. They don’t require years of layered financing or depend on limited public subsidies. They can get built and fast,” Molasky said, adding the bill’s Attainable Housing Account could help restart projects that have stalled because of rising interest rates and construction costs.

Lombardo also said he’s working with the federal government to establish what federally owned land could be released for more development. He said he expects to have a memorandum of understanding by May 1 that will allow the Bureau of Land Management to identify that available land.

Assembly Democrats highlighted their own housing proposals in a press conference Thursday, including bills reforming summary eviction, limiting rent increases for seniors and Social Security users, setting transparency requirements in rental agreements and others.

At the press conference, Lombardo said he continues to “hold the line” against policies like rent control and other bills with the same language as ones that were vetoed in 2023.

He also said that “out of state investors” — an issue he mentioned in his State of the State address in January – had to be addressed through other legislation. Lombardo said he was aware of some bills that could address that. Senate Bill 391, sponsored by Dina Neal, would limit the number of housing units a business could purchase in a year to 100.

“Housing is one of the most critically important issues to Nevadans right now,” Speaker Steve Yeager, D-Las Vegas, said in a statement Tuesday. “I look forward to learning more about the long-awaited Governor’s housing proposals tomorrow evening and continuing to collaborate on all things housing with both the Senate Majority Leader and the Governor, including working to ensure that those who are currently housed aren’t abruptly and unfairly evicted.”

AB 540 will have its first hearing at 5 p.m. Wednesday in the chamber’s Commerce and Labor Committee.

Contact McKenna Ross at mross@reviewjournal.com. Follow @mckenna_ross_ on X.