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Homebuilders Say AB 421 Would Hurt Housing Affordability

April 23, 2019, Las Vegas Business Press, by Buck Wargo

A bill is making its way through the Nevada Legislature that homebuilders said could add to the cost of new homes and halt the construction boom of town homes and condos.  Assembly Bill 421 would effectively repeal the builder-backed state law enacted in 2015 that shortened the statute of limitations and streamlined the process for repairs, thus reducing construction defect litigation. It would return many of the provisions of 1997 legislation that covered construction defects for 18 years.

Builders said the 2015 law helped revitalize the building industry that had its greatest number of closings in 2018 since the Great Recession and significantly increased the share of attached housing. They’re concerned about returning to a system they say favors litigation over prompt repairs of homes and increases the cost of construction that’s passed onto homeowners.

Supporters of AB 421 said a revision to the 2015 legislation is needed to protect homeowners from problems that develop after the current statute of limitations and give them the ability to recover the cost of litigation. Homebuilders, who have the backing of chambers of commerce across the state, have been bracing for the legislation backed by Democrats, but neither homebuilders nor the Nevada Justice Association, the group of trial lawyers supporting the change in the law, said they know how Gov. Steve Sisolak will respond if it makes it to his desk.  To read entire article click here.

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