NHC Comprehensive Policy Approach

For the 2021 Legislative Session, NHC is leading efforts on five significant affordable housing efforts that all tie together as part of a comprehensive approach.

NHC is committed to supporting each of these efforts through continued education initiatives and convenings to promote collaborative solutions at the local level.

The status quo is unacceptable as Nevada has the country's worst shortage of affordable housing available for extremely low-income renters. We ask the Legislature to TAKE ACTION NOW.

NHC Comprehensive Policy ApproachA successful affordable housing strategy is comprised of many facets that require sound policy and strong collaboration.

Planning & Accountability: Setting 5-year targets for affordable housing production and preservation

Preserving What We Have: Mitigating loss of existing affordable housing through an early notification process

Improving Our Newest Tool: Removing the deadline to utilize state tax credits and other technical fixes

Enabling Two New Tools: Expanding the existing toolbox with two new tools to build local financial capacity

Improving Access: Prohibiting landlords from refusing tenancy based upon source of income (now in SB254)

04-06-2021 Presentation of AB334

Well Being

Education

Health

Equity

Business

Safe and Secure Housing

The Rent Eats FirstHousing is central to wellness and opportunity.


What is Affordable Housing? When more than 30% of a household’s income goes to housing, the household is cost burdened and the housing is UNAFFORDABLE.

Who Needs Affordable Housing MOST in Nevada?Nevada has some of the most severe cost burdens in the country. And attention to basic needs like medical care, food, education, transportation and work stability suffer when households are overpaying for their housing expenses.

NEVADA COST BURDEN BY INCOME


How Much to “Afford” Market Rate Housing?


Nevada’s mean renter earns

only 61% of what is needed

for housing to be affordable.

Clark/Las Vegas hourly housing wage difference

Employer position hourly(1) 26.51

Wynn Room Attendant 10 26.51 -16.51

McDonalds crew member 10 26.51 -16.51

Sonic cook 10.5 26.51 -16.01

7-Eleven store employee 10.5 26.51 -16.01

Sams Club stocking associate 11 26.51 -15.51

CVS retail associate 11 26.51 -15.51

Starbucks barista 11 26.51 -15.51

Plaza Hotel Front Desk Clerk 11 26.51 -15.51

Mentor Network child care giver 11 26.51 -15.51

Topgolf dishwasher 11.75 26.51 -14.76

STS staffing warehouse workers 12 26.51 -14.51

The Wentword caregiver 12 26.51 -14.51

Vons grocery cashier 12 26.51 -14.51

Goodwill Material Handler 12 26.51 -14.51

Footlocker retail sales associate 13 26.51 -13.51

People Ready Flagger 13 26.51 -13.51

SAFE management Allegiant security 14 26.51 -12.51

Securitas mobile security patrol 14 26.51 -12.51

.99 cent store asst. store manager 14.37 26.51 -12.14

Casino(s) line cook 14.4 26.51 -12.11

Casino(s) cage cashier 14.5 26.51 -12.01

Xstellar warehouse logisistics 15 26.51 -11.51

Corwin Swimming Pool Tech 15 26.51 -11.51

Amazon Delivery Driver 15.5 26.51 -11.01

Caliber Home ln production assistant 15.5 26.51 -11.01

Circle K sales associate 16 26.51 -10.51

CVS Pharmacy Tech 16 26.51 -10.51

BG Multifamily Handyman Mainten. 16 26.51 -10.51

US Postal Ser mail processor 16.83 26.51 -9.68

Trillium low voltage technician 17 26.51 -9.51

CCSD entry level teacher 17 26.51 -9.51

Plaza Hotel casino security 17 26.51 -9.51

GE Appliance Service Technician 17.5 26.51 -9.01

SLS AV Technician 17.5 26.51 -9.01

WMS Gaming media production asst 18 26.51 -8.51

CatholicCharities Communications Coordinator 18 26.51 -8.51

Westland RE Co social media coordinator 19 26.51 -7.51Lifetime Fitness Personal Trainer 20 26.51 -6.51

Amer. Hmes Rent document control spec 20 26.51 -6.51

KLAS news product asst 20.19 26.51 -6.32

United Rentals Diesel Mechanic 21 26.51 -5.51

City of Las Vegas customer service rep 21.25 26.51 -5.26

Valvoline Auto Technician 22 26.51 -4.51

Clark county home care specialist 22.6 26.51 -3.91

City of Las Vegas Maintenance worker 23 26.51 -3.51

Caesar's Videographer 23 26.51 -3.51

Colonial Domestic home cleaner 25 26.51 -1.51

Las V. Valley Water Dist Waste Water Technician 25.46 26.51 -1.05

VA Supervisory Health Tec 25.8 26.51 -0.71

Clark County Secretary 25.96 26.51 -0.55

State of NV Enviro Health Specialist 27 26.51 0.49

CCSD school counselor 28.84 26.51 2.33

CCSD avg. pubic school teacher 29 26.51 2.49

Hourly Wages V. Housing WagesLas Vegas / Clark (based on Jan-21 avg rents Las Vegas $1,211 per NVSAA)


Employer Position hourly(1) housing wage difference

Dennys server 9 30.17 -21.17

Eden Senior Care Personal Care Attendant 9.7 30.17 -20.47

Washoe Cty School Dist Teacher's Aide(21 hr/wk) 10.5 30.17 -19.67

Safeway grocery clerk 11.3 30.17 -18.87

CVS store associate 11.5 30.17 -18.67

Planet Fitness Fitness Trainer 11.5 30.17 -18.67

McDonalds crew member 12 30.17 -18.17

STS Staffing industrial sewing oper. 12 30.17 -18.17

Atlantis Spa Concierage 12 30.17 -18.17

Coral Academy Substitute Teacher 13 30.17 -17.17

Kids R Kool Early Childhood Teacher 13 30.17 -17.17

McCormack Baron Leasing Agent 13 30.17 -17.17

Sequoia Equities Apartment leasing agent 13 30.17 -17.17

Blue Skies landscape laborer 13.22 30.17 -16.95

VA nursing assistant 13.5 30.17 -16.67

H and R Block receptionist 14 30.17 -16.17

Life Care Cert Nursing Asst. 14.5 30.17 -15.67

Park 7 Management Community Assistant 14.8 30.17 -15.37

General Logistics package handler (PT PM) 15 30.17 -15.17

Reno BH Hospital Mental Health Tech 15 30.17 -15.17

FSA Administrative Spec. 15 30.17 -15.17

Staffmark Reno Packaging Handler 15.5 30.17 -14.67

Amazon Delivery Driver (start) 15.50 30.17 -14.67

1A Auto warehouse worker (starting)16 30.17 -14.17

Mars Logistics Operator 16.35 30.17 -13.82

General Motors warehouse worker 17 30.17 -13.17

FastTek Global IT Help Desk Technician 17 30.17 -13.17

Renown Community Health Worker 17 30.17 -13.17

Reno Tahoe Airport Airport Security Spec 17.25 30.17 -12.92

Patagonia Child Care Teacher 17.3 30.17 -12.87

StreetPlus outreach worker 17.5 30.17 -12.67

Peppermill security officer 17.5 30.17 -12.67

Discount Tires Tire Technician 17.8 30.17 -12.37

Crunch gym Fitness Manager 18 30.17 -12.17

Washoe Cty School Dist Teacher (avg)) 19 30.17 -11.17

Pacific Dental Services Dental Assistant 19.47 30.17 -10.7

Walmart warehouse worker 20 30.17 -10.17

City of Reno Recreation Program Asst 22.6 30.17 -7.57

Waste Management CDL Truck Driver 23 30.17 -7.17

Reno Housing Authority Asst. Property Manager 23 30.17 -7.17

Home Depot Delivery Driver 24 30.17 -6.17

Washoe County Deputy Sheriff Recruit 24 30.17 -6.17

Reno BH Hospital RN/intake (Master's) 25 30.17 -5.17

city of Reno Fire fighter (starting) 25.32 30.17 -4.85

Kalidescope Ed Sol School Counselor (avg) 26 30.17 -4.17

MedTech Professionals Radiologic Tech 26.44 30.17 -3.73

Washoe County Librarian I 27 30.17 -3.17

Securitas Sec Services security officer 28.85 30.17 -1.32

Aveanna Homecare RN Home Health 28.85 30.17 -1.32

Revature Entry Level Java Dev. 28.85 30.17 -1.32

City of Reno public safety Dispatcher 29 30.17 -1.17

Soliant Occupational Therapy Assistant 30 30.17 -0.17

from ERI Real Estate Sales Agent 31 30.17 0.83

Invo health care &therapy Master social worker 31.51 30.17 1.34

US Secret Service IT Specialist 31.73 30.17 1.56

Petco Business Sys Analyst 31.73 30.17 1.56

Oracle Software developer 33.65 30.17 3.48

VA Social Worker 33.65 30.17 3.48

from Redfin Real Estate Sales Agent 35 30.17 4.83

City of Reno Property Agent 38.46 30.17 8.29

NV Energy Software Engineer 1 41.8 30.17 11.63

Microsoft Bus Analytics and Insight 44.7 30.17 14.53

UNR Professor (avg) 35 30.17 4.83

Hourly Wages V. Housing WagesReno-Sparks / Washoe (based on Jan-21 avg rents Reno-Sparks $1,436 per NVSAA)


Affordable Housing Does Not Just HappenHome sales and rents increasing in NV

CONCERNS AND CONSEQUENCES• Existing affordable housing crisis with a DEFICIT of 84,320

affordable units for Nevadans below 30% AMI and a TOTAL DEFICIT of 105,575 affordable units needed for Nevadans below 50% AMI (NV Tier 1 is below 60% AMI)

• Influx of newcomers seeking our beautiful state and low tax environment, competing in a tight market

• Influx of businesses associated with new development that do not pay a housing wage or create a need for affordable housing through jobs created indirectly.

• Over 7,500 existing affordable housing units are at high risk of going to market rate in the next 5 years without incentive/rehab loans



AB 334 with Conceptual AmendmentEnable (not mandate) two additional affordable housing development tools that give local jurisdictions a balanced and comprehensive suite of tools to address their communities’ affordable housing needs

WHAT AB 334 WILL DO• Revises NRS 278.250 to enable local governments to

adopt two different types of fees1. Fees in Lieu of Inclusionary Zoning 2. Linkage Fees

• Requires a local affordable housing policy/ordinance before implementation that includes stakeholder engagement per the process

• Requires the fees collected be deposited into an affordable housing trust fund or fund of the local jurisdiction restricted to affordable housing

• Caps the maximum linkage fee that a local government may adopt and exempts starter homes and small businesses; lowered cap in response to stakeholder feedback

• Targets 80% of the funds collected for affordable housing at Tier 1 (below 60% AMI) incomes and further prioritize at least 30% of the funds for revitalization efforts in lower income census tracts

WHAT AB 334 WILL NOT DO• Impact the budget - this bill has no fiscal impact

• Mandate inclusionary zoning (Inclusionary Zoning has been authorized in Nevada statute since 1999)

• Mandate the enactment of fees of any kind

• Mandate that local governments take any one specific action to create affordable housing

• Allow local governments to implement (one off) affordable housing actions/fees without an affordable housing policy/ordinance

• Allow any fees a local government chooses to enact to be put into the non-restricted general fund of that local government

• Further, this bill has absolutely nothing to do with rent control


Fees in Lieu of Inclusionary Zoning

FACTS ABOUT IZ AND FEES IN LIEU

• Gives builders a choice. In-lieu fees offer a compliance alternative to inclusionary zoning policies, allowing the developer to opt out of building on-site affordable housing units, while helping to fund affordable housing off-site.

• Aligns existing NV statute with best practices nationwide as approximately two-thirds of jurisdictions with inclusionary zoning have in-lieu fees.

• Fees determined using different proven methods depending on the community.

• Inclusionary Zoning allows communities to address their lack of housing for all income levels, allowing their citizens more choice of where they live, i.e., close to their employment or in a certain school district.

Inclusionary Zoning has been authorized in NRS 278.250 since 1999: “In exercising the powers granted in this section, the governing body may use any controls relating to land use or principles of zoning that the governing body determines to be appropriate, including, without limitation, density bonuses, inclusionary zoning and minimum density zoning.”

FEES IN LIEU NRS 278.250 SECTION 1:

1. Except as otherwise provided in subsections 2 and 3, a governing body may:

(a) Accept a payment of money in lieu of the performance of an obligation related to the development of affordable housing imposed upon a developer by the governing body; or

LINK to NHC One-Pager on Fees In Lieu of Inclusionary Zoning

https://www.nvhousingcoalition.org/resources/Documents/Legislative%20Updates/Leg%20Overview%20Docs/In-Lieu%20Fees%20One%20Pager%2003-2021.pdf

https://www.nvhousingcoalition.org/resources/Documents/Legislative%20Updates/Leg%20Overview%20Docs/In-Lieu%20Fees%20One%20Pager%2003-2021.pdf


Linkage Fees

AB334 REVISES NRS 278.250 SECTION 11. (b) Impose a linkage fee on any residential, commercial or industrial development for the purpose of assisting in the development of affordable housing that the governing body determines will be necessary as a result of the development. Such determination must be based on a finding that there is a [reasonable] relationship in nature and extent between the new development and the need for the affordable housing.2. A governing body may accept a payment of money or impose a linkage fee pursuant to subsection 1 only if authority for such action has been adopted by ordinance as part of the governing body’s affordable housing policy.

LINK to NHC One-Pager on Linkage Fees

FACTS ABOUT LINKAGE FEES

• Link market-rate real estate development to additional affordable housing need it creates.

• Legally justifiable with rigorous economic analysis utilized to establish the “link” and fee schedule.

• Set to ensure development remains financially feasible.

• Provide developers certainty and constituents transparency – no one-offs

• Generate revenue to help meet housing demand caused by jobs created at that location or through respend in the community that do not pay a housing wage

• Fees across residential, commercial and industrial sectors depending upon their impact (“link”)distributes fees more equitably across sectors

• Ease of administration - Municipalities generally charge linkage fees on a per square foot basis.

• Leverage private markets to help create affordable housing and preserve existing affordable rental housing.

https://www.nvhousingcoalition.org/resources/Documents/Legislative%20Updates/Leg%20Overview%20Docs/Linkage%20Fees%20One%20Pager%2003-2021.pdf

https://www.nvhousingcoalition.org/resources/Documents/Legislative%20Updates/Leg%20Overview%20Docs/Linkage%20Fees%20One%20Pager%2003-2021.pdf


Linkage Fee Caps: Ceilings, Not Floors

AB334 REVISES NRS 278.250 SECTION 13. A linkage fee imposed by a governing body:(a) Must not exceed:(1) For an industrial development, $5 per square foot;(2) (1) For a commercial or industrial development, $3 per square foot;(3) (2) For a multifamily residential dwelling, $1.50 per square foot;(4) (3) For a single-family residential dwelling that is 4,000 square feet or more, $1.50 per square foot; and(5) (4) For a single-family residential dwelling that is 1,500 square feet or more but less than 4,000 square feet, $0.75 per square foot.(b) Must not be imposed for the development of:(1) A public or private educational institution;(2) A religious institution;(3) A multifamily development that includes less than 10 individual dwelling units;(4) An owner-occupied small business that is less than 5,000 square feet; and(5) A single-family residential dwelling that is less than 1,500 square feet.

• Affordable Housing Policy / Ordinance• Caps – Very Conservative• Exemptions

• Homes < 1500 sq ft• Multi-family < 10 units• Businesses < 5000 sq ft• Education/Religious Institutions

• Rigorous Economic Analysis

PROTECTIONS FOR FAIR AND SUCCESSFUL IMPLEMENTATION


Accountability and Targeting of Any Fees CollectedAB334 REVISES NRS 278.250 SECTION 14. Any payment of money or linkage fee received pursuant to subsection 1 must be deposited into a trust fund established by the governing body or into a restricted fund described in the enacting ordinance and used only to pay for the development of affordable housing in the city or county, as applicable.5. The ordinance that adopts the jurisdiction’s affordable housing policy shall reflect:(a) No less than 30% of the expenditure of linkage fee revenue shall be geographically targeted to census tracts within the jurisdiction of lowest income, with priority given to areas with established revitalization strategies, unless such restrictions are in conflict with federal housing statutes; and(b) No less than 80% of linkage fee revenue shall be used for the development of affordable housing that assists persons in Tier 16.“Development of Affordable Housing” is inclusive of activities to preserve, rehabilitate and maintain housing which is affordable at Tiers 1, 2 or 3 and activities to design, develop, and build housing with affordability restrictions that is affordable at Tiers 1, 2 or 3, and activities by organizations that assist in the implementation of strategies that incorporate affordable housing into an existing neighborhood revitalization plan.

According to the National Low Income Housing Coalition 2021 GAP Report, Nevada has a total deficit of 105,575 affordable and available units for Nevadans according to the income groups below (numbers are cumulative):

➢ Below 30% AMI: - 84,320 affordable units➢ Below 50% AMI: - 105,575 affordable units

The majority of Nevada’s deficit of affordable units are represented in Nevada’s Tier 1 designation of incomes at or below 60% AMI.


WE HEAR the OPPOSITION - RESPONSE

AND THE IMPACTS OF OUR GROWTH

INCLUDING THE IMPACT OF INCREASED NEED FOR AFFORDABLE HOUSING.

AB334 ENABLES LOCAL GOV’T TO ADDRESS THE CONSEQUENCES OF A LOW TAX ENVIRONMENT and ANTIQUATED TAX STRUCTURE

ONE-OFFS ARE NOT TRANSPARENT

Quick Snapshot of Job Creation Impacts of Diverse Sectors from Business and Industrial Development


Major industry group Direct jobsSupplier

jobs*Induced jobs**

Total indirect jobs

Total indirect

jobs-supplier jobs

Direct plus supplier

Direct % of direct plus

supplier

Induced jobs /100

direct

Mining 100 224 166 390 166 324 31% 51

Construction 100 88 138.1 226.1 138.1 188 53% 73

Durable manufacturing 100 289.1 454.9 744.1 455 389.1 26% 117

Nondurable manufacturing 100 184.8 329.5 514.3 329.5 284.8 35% 116

Transportation and warehousing

100 112.8 163.3 276 163.2 212.8 47% 77

Information 100 252 321.1 573.1 321.1 352 28% 91

Retail trade 100 46.7 75.4 122.1 75.4 146.7 68% 51

Educational services 100 63.8 129.9 193.7 129.9 163.8 61% 79

Health care and social assistance

100 69.4 136.2 205.6 136.2 169.4 59% 80

Arts, entertainment, and recreation

100 123.3 255.2 378.5 255.2 223.3 45% 114

Accommodation and food services

100 53.8 107.4 161.2 107.4 153.8 65% 70

• Some of these sectors pay a HOUSING WAGE and some do not.

• Many of the Indirect Jobs are attributed to the services that come alongside new growth, like retail or food service, and do NOT typically pay a HOUSING WAGE.

• As part of AB334, the economic analysis that is required in order to justify a Linkage Fee will link the different sectors to their impacts on the NEED for MORE AFFORDABLE HOUSING. This refinement happens at the local level.

*Includes materials and capital services supplier jobs ** Includes jobs supported by respending of income from direct jobs and supplier jobs, as well as public-sector jobs supported by tax revenuehttps://www.epi.org/publication/updated-employment-multipliers-for-the-u-s-economy/


RESIDENTIAL LINKAGE FEES AS PROPOSED WITH CAPS CAN MAKE A DIFFERENCE IF A LOCAL GOV’T ENACTS

The information below misleads; none of the X’dcalculations are possible in AB334/AB331. Households looking to purchase new homes may need to save or finance an extra $1,000 or $1500, but they are NOT priced out due to linkage fees.

Potential Impacts of Capped Linkage Fees on Home PricesExample of Affordable Housing

Developed with Fees Collected**

LV* 4/4/21

New Home Price, 2,098 SF

potential linkage

fee/sq ft

Price per square foot

with max fee of .75

new price

one time increase in price;linkag

e fee earned

% increase in price

Fees for every 1500 new

construction homes

Affordable homes/units

built

Over 30 Years,

affordable units

available for families

$311,400 $ 0.75 $148.43 $149.18 $ 312,974 $ 1,574 0.51% $ 2,360,250 157 4710

$311,400 $ .50 $148.43 $148.93 $ 312,449 $ 1,049 0.34% $ 1,573,500 105 3150

LV* 4/3/21

More Luxury Home, 3,010 SF

$475,000 $ 0.75 $157.81 $158.56 $

477,258 $

2,258 0.48% $ 3,386,250 225 6750

$475,000 $ 0.50 $157.81 $158.31 $

476,505 $

1,505 0.32% $ 2,257,500 150 4500

LV* 4/3/21

Luxury Home, 4,288 SF

100 of these sales

$ 877,995

$ 1.50 $204.76 $206.26 $

884,427 $

6,342 0.72% $ 634,200 42 1260

$ 877,995

$ 1.00 $204.76 $205.76 $

882,283 $

4,228 0.48% $ 422,800 28 840

*https://www.realtor.com/realestateandhomes-search/Las-Vegas_NV/beds-4-5/type-single-family-home/

A low-rate linkage fee does not price out Nevadans. The $1,000 linkage

fee collected for every 1,500 new construction homes can support new

construction of 150 affordable homes/units.

**Using the standard calculation that $3 in gap financing can complete $40m financing for an AH project

All Nevadans deserve an opportunity for housing that is Affordable.

Affordable Housing doesn’t just happen.

Support AB334 and support the nearly quarter million of Nevadans who cannot afford their current housing and support our children, OUR FUTURE, as they consider building their lives at home.

Around the country, impact and in-lieu fees have raised $1.7B and funded at least 170,000 affordable units/homes.

Thank you to all our Sponsors and Supporters