Nevada's AB540: A Game-Changer for Housing Affordability

Hawk View Apartments in Reno, NV

Nevada's housing crisis has reached a tipping point, with skyrocketing costs pushing essential workers—teachers, firefighters, and nurses—out of the communities they serve. Governor Joe Lombardo's Assembly Bill 540, passed in 2025, represents the most significant state investment in housing affordability in Nevada's history.

What is AB540?

AB540 allocates $250 million in state resources to support over $1 billion worth of housing development. The legislation creates "attainable housing"—a new tier that bridges the gap between traditional affordable housing and market-rate properties for those making up to 150% of median income.

Key Features

Revolving Fund: $125 million revolves every 1.5-4 years through loan repayments, multiplying the investment's impact over time.

Streamlined Processes: The bill expedites approval processes for housing developments and creates incentives for builders to construct affordable homes.

Targeted Support: Essential workers who previously earned too much for affordable housing assistance but couldn't afford market rates can now access help.

Expected Impact

The program is projected to house 16,000 people by unlocking over $1 billion in private investment. It specifically addresses the critical gap where teachers, police officers, firefighters, and healthcare workers have been priced out of their own communities.

Bipartisan Success

Lawmakers from both parties united to pass this major housing proposal, demonstrating rare consensus on addressing Nevada's housing crisis. The legislation creates a sustainable model that can continue generating housing opportunities well into the future.

Looking Forward

AB540 represents more than financial investment—it's recognition that healthy communities need housing options across all income levels. As Nevada implements this program, other states facing similar challenges will watch closely, making Nevada a testing ground for innovative housing solutions.

The true measure of success won't be in appropriation amounts, but in teachers who can live near their schools and firefighters who don't face impossible commutes. For Nevada, AB540 offers something in short supply: hope for a more sustainable housing future.