Recent real estate market reports regarding Nevada’s housing situation indicate that the long-awaited recovery could be postponed as average prices have dipped for the last few months. Residents and developers are waiting for a way out of this situation and a serious initiative is now under discussion.
A piece of legislation passed back in 1986 called the Low Income Housing Tax Credit is a national program that aimed at encouraging the development of low-income housing. The law offers tax credit to developers planning to construct low-income housing. According to The Las Vegas Sun, a number of developers have voiced their concerns over the fact that this type of legislation is outdated and needs reworking. Tax credit should be offered to a different type of venture than that of simply constructing new housing units as market oversaturation may be in sight.
The Sun also mentioned that a preferred scenario would be that in which a new legislative initiative would drive developers to already existing residential units. State help would be involved only in the sense of incentives for developers that acquire and rehabilitate homes before turning them into rental units. The supply of homes lost to foreclosure would ensure the project’s starting point.
The housing authority’s response is that it has placed acquisitions and rehabilitations higher on the scale of priority and it is now easier for developers that have this type of project to receive tax credits. Another argument presented by Charles Horsey, the administrator of the housing division who was quoted by The Las Vegas Sun, is that an oversaturation of affordable housing is not as near as its seems. He also said that market rate housing could suffer from that phenomenon while there still is a market for apartment developments aimed at those who can’t afford homes from the current supply.