LAS VEGAS (KTNV) — Gov. Joe Lombardo presented his housing plan to Nevada lawmakers Wednesday, as Democrats asked pointed questions, especially about a provision that would waive prevailing wage rules for projects.
Assembly Bill 540 calls for using $200 million in general funds — and another $50 million from the state Housing Division's trust fund — to build new houses, apartments and provide subsidies and assistance for people making up to 150% of the area's median income.
WATCH: Steven Sebelius reports on Lombardo's housing plan
Lombardo introduced the bill at a news conference in Las Vegas on Tuesday. It would also:
- Require developers, in general, to put up matching funds in an amount equal to state money for projects.
- Provide funds for rental assistance and eviction diversion programs.
- Require local governments to adopt an expedited process for considering and approving attainable housing projects.
- Authorize local governments to reimburse building permits and fees for attainable housing projects.
- Issue provisional contractor's licenses for out-of-state contractors in rural areas where there is a shortage of skilled labor that's preventing the building of attainable housing.
But the waiver of prevailing wage rules drew the most opposition, starting with the AFL-CIO of Nevada, which issued a statement on Wednesday opposing the bill.
"Our state faces a critical shortage of affordable housing, but exempting projects funded by the Nevada Attainable Housing Account and the Nevada State Infrastructure Bank from prevailing wage requirements would be counterproductive, misguided, and dangerous," reads a statement released by AFL-CIO of Nevada Executive Secretary-Treasurer Susie Martinez.
Several Democratic lawmakers joined in asking questions about that provision, too.
Assemblyman Max Carter II, D-Clark County, called the prevailing wage provision "...a wholehearted attack on working men and women."
"We're willing to sacrifice Nevadans when we have the highest unemployment rate in the nation," Carter said. "There's not even a thing encouraging the hiring of Nevadans in here let alone any other labor standards. But we're bending over backwards to create profit streams for out-of-state companies. Why is that?"
Housing Division Chief Financial Officer Christine Hess replied the bill's intent was to drive down costs to build affordable homes, projects that are dissimilar to office buildings or other public works that are the usual subject of prevailing wage requirements.
Ryan Cherry, Lombardo's chief of staff, said the governor generally supports prevailing wage laws but was trying to address some of the costs of housing in this bill.
But labor groups including the International Brotherhood of Electrical Workers Local 357, the Service Employees International Union Local 1107, the Teamsters Local 533, the Operating Engineers Local 12 and the Northern Nevada Centeral Labor Council all opposed the bill.
Not all organized labor is against the bill, however. The Clark County Education Association testified in favor, and at Tuesday's news conference, Tommy White, secretary-treasurer of the Laborers International Union of North America Local 872, spoke in favor of the bill.
In addition, the Vegas Chamber, the Southern Nevada Regional Housing Authority, the Reno Housing Authority, the American Council of Engineering Companies and the Nevada Multi-Family Alliance testified for the bill.
Watch Lombardo's bill unveiling here
Democrats — who have criticized Lombardo for several vetoes of bills in the 2023 Legislature that they say would have reduced housing costs — have been advancing a passel of bills of their own aimed at lowering costs and protecting renters from surprise fees.
Governors are entitled to introduce five bills each session, reflecting their top priorities. AB 540 is one of Lombardo's five.
In addition to pushing his housing bill, Lombardo has asked both the Joe Biden and Donald Trump administrations to release more federal land for housing development in Nevada and to put a Nevada representative on a task force studying the use of federal land for housing.
Housing has proven to be one of the most challenging issues for Nevada. In Las Vegas, the average home value is $426,132, up 5.2% from this time last year, according to Zillow. The average rent is $2,076, Zillow says.
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