LAS VEGAS (KLAS) — A scaled-back version of Gov. Joe Lombardo’s Nevada Housing Access and Attainability Act will help fewer people, according to state officials.
The ambitious plan to use state funds to encourage housing construction and other help for Nevadans who need affordable housing solutions has shrunk. When Lombardo presented the plan in April, it was described as a $250 million plan that would provide homes for 16,000 households.
Pressure on state budgets has forced adjustments as spending plans move through the Nevada Legislature. Funding for the affordable housing plan is now set at $133 million, and it’s expected to reach about 5,000 households, according to Christine Hess, chief financial officer for the Nevada Housing Division.
The lower spending levels didn’t seem to dampen support for affordable housing.
Kathi Thomas, chief housing officer of the Southern Nevada Regional Housing Authority, called in to support Lombardo’s plan.
“We are in the midst of a housing crisis, and we understand that this legislative body has a number of competing priorities and challenges with the budget. But we are all committed to building a strong economy, and there is no economic model that does not have housing at its core,” Thomas said.
Hess outlined the new spending levels during a Friday hearing before the Senate Government Affairs Committee. The $133 million will fund programs in three ways:
- $83 million to support the development of attainable housing to serve those at or below 150% of area median income. The help will come in the form of loans, grants or rebates. This category will also support the development of low-income tax credit properties and land acquisition for attainable housing.
- $25 million for home ownership opportunities in the form of down payment assistance and interest rate buydowns.
- $25 million for incentives to develop attainable housing, expected to be in the form of matching grants
Hess said previous plans to fund supportive housing development, rental assistance and eviction diversion programs will not be implemented initially as Assembly Bill 540 — the Nevada Housing Access and Attainability Act — ramps up. Those will still be eligible uses, but are not expected to be funded initially because they are available elsewhere.
The bill didn’t receive an immediate vote after it was heard Friday.
“This is not a fund for 3,000-square-foot homes. This is a fund to really catalyze and get the housing built,” Hess said. “More housing to have people that are living in RV parks not have to live in RV parks.”
Democratic Sen. Edgar Flores said he was concerned that the plan didn’t specify goals to help people buy a starter home. He said that’s the problem that’s happening right now.
Ryan Cherry, chief of staff for Lombardo, said that was discussed but not written into the language of the housing act because goals will change over time. He said the governor wants the agency to have the ability to adjust its goals to meet current needs.
“For-sale homes was really the impetus of this initiative,” Hess said. She said that will influence the amount of funding that goes toward helping families who can’t qualify. The initial plan included $50 million for home ownership initiatives.
