LAS VEGAS (KTNV) — A bill proposing a cap on rent increases for Las Vegas tenants passed in the Nevada Senate on Thursday.
Senate Bill 426 would stop landlords from raising the rent on tenants in their first year living in a property. After that, any increases in the property's rent would be limited to 5% each year, though there are exceptions for certain properties.
The bill, which is sponsored by Senator Pat Spearman, allows tenants the right to sue landlords for violating rent control provisions.
"I know this was a highly contested piece of legislation and we're trying to get to an amendable compromise that would not incur additional energy on the part of landlords," Sen. Spearman said in a Thursday work session. "But also [for the] people who were—and are—priced out of their homes."
She continued, "It might not make sense to anyone until it happens to you."
Some amendments proposed to the bill include allowing landlords to increase rent beyond the limitation after sending a petition detailing specific circumstances for the increase to a housing division, which would then need approval. Another amendment would require that the tenant be provided notice of any potential increases or exemptions to rent limitations, to which they could respond with evidence in support or opposition of the application.
Senator Jeff Stone, who testified in opposition during debate on the bill, told the committee that he still had concerns about the bill, since it may have uneven consequences for smaller landlords.
"I believe that the ones that you're truly trying to target, these corporate landlords, which are primarily responsible for land development under this bill, are not going to have to pay or comply with this law for 15 years after they build their units," he said. "I think that creates an unfair playing field, especially for people like myself or other landlords who have been paying property taxes and making capital improvements and in Nevada for four years."
He added, "I also think that the method of which an agency is going to allow for a percentage increase based on the Consumer Price Index is convoluted. It's not clear."
During a hearing on Monday, Sen. Spearman discussed the cost-of-living index and how minimum wage workers across the country are having a hard time affording two-bedroom apartments.
"We have enacted statutes to annually increase our state's minimum wage but it is currently limited to a 75-cent increase per year," Spearman said. "The consequences of this trend are far-reaching and are making people make tough decisions about their living situations often leading to overcrowding, relocation, or even homelessness."
The hearing also saw much opposition from local investors, realtors, as well as the Vegas Chamber of Commerce.
Dylan Keith, the Chamber's Assistant Director of Government Affairs said, "As we look at the severe shortage of housing in Nevada, there are — as of the last report in November — 80,000 units that need to be made to address the housing shortage. This bill will not do that."
