Nevada Gov. Joe Lombardo has announced a new housing development bill that would allocate $250 million in state funds to support housing projects aimed at essential workers. The governor’s objective is to use this investment to generate over $1 billion in total housing development.

The legislation, Assembly Bill 540, was discussed on Wednesday by the Assembly Committee on Commerce and Labor and had also been reviewed last week during two meetings of the Assembly Committee on Government Affairs.

“It’s my hope that every Nevadan will be able to realize the dream of home ownership,” said Lombardo at a press conference Tuesday outside the recent Heirloom at Pebble seniors housing project.

Funding Plan and Target Beneficiaries

To reach the $1 billion goal, developers would be required to match state funding with their own investments into projects. The funds would be used to develop affordable housing for individuals earning up to 150% of the area median income.

“Which will support essential workers like teachers, nurses and first responders,” said Lombardo. “The middle mile, correct? The missing middle … They deserve access to affordable and attainable homes in the very neighborhoods they serve.”

Support from Industry Leaders

Lombardo’s proposal has received support from Laborers Union Local 872, which represents construction workers, as well as the Southern Nevada Home Builders Association.

“We feel confident that once this bill gets passed, and we’re going to support this bill and we’re going to be right with the governor on this, that we’ll be able to build these homes, build these buildings,” said Tommy White, secretary-treasurer of Local 872. “I like other states. But if you know anything about Las Vegas, you know we can build them [houses] better and we can build them faster, and we can build them without any problems.”

Federal Land and Housing Development

A key challenge in Nevada’s housing development has been the high percentage of federally owned land, which accounts for nearly 80% of the state’s land. Lombardo announced that a formal decision on where some of this federal land might be used for housing development will be made on May 1.

Political Opposition and Criticism

Despite support from unions and industry groups, Lombardo has faced criticism from Nevada Assembly Democrats. They argue that his past vetoes of 2023 housing bills contributed to the state’s ongoing housing crisis.

“Under Joe Lombardo, Nevada has the highest unemployment rate in the nation, and its ongoing housing crisis is leading to skyrocketing eviction rates and homelessness,” said Tai Sims, spokesman for the Nevada State Democratic Party, to KNTV. “Despite this, Joe Lombardo still refuses to offer a plan that holds large corporate investors accountable and limits their ability to buy up housing stock and artificially increase costs, leaving everyday Nevadans with little to no affordable options.”

Lombardo has previously expressed concern over real estate investment from outside Nevada but clarified that this bill does not address that issue.

Concerns Over Construction Costs

When asked about the potential impact of federal tariffs on construction costs, Lombardo admitted uncertainty. “The tariffs are the great unknown in how we deal with the logistics of some of the construction,” he said.

With both support and opposition surrounding the bill, AB 540 is expected to be a central topic in Nevada’s legislative discussions as the state seeks solutions to its housing challenges.