Southern Nevada HBA Win on Utilities May Lower Cost of New Townhomes

Legal
Published

The Southern Nevada Home Builders Association recently won a long battle with the state’s energy authority over the classification of townhomes when calculating the cost to install new electric lines.

For years, Nevada Energy has classified newly constructed townhomes as multifamily properties. The issue for home builders and developers is that Nevada Energy’s Rule 9 Line Extension Allowances are lower for multifamily projects on a per-unit basis than for single-family homes.

Over the last year, the Southern Nevada HBA has been working diligently on behalf of its members, lobbying at the Public Utilities Commission of Nevada to seek clarity on the classification of townhomes. After receiving a grant from the NAHB Legal Action Fund, the HBA submitted a petition to the Public Utilities Commission of Nevada and ultimately won reclassification of townhomes as single-family dwellings.

The reclassification could have a big impact on development in Southern Nevada, which includes Las Vegas. The HBA estimates it could save as much as $3,500 per unit. 

This was a significant issue for prospective home buyers in Las Vegas, where townhomes are one of the most accessible products in the housing market and represent 30% of the Southern Nevada market.

Subscribe to NAHBNow

Log in or create account to subscribe to notifications of new posts.

Log in to subscribe

Latest from NAHBNow

Advocacy | Membership | Spring Leadership Meeting

May 29, 2026

Chairman’s Update: Why You Should Attend NAHB’s Legislative Conference

In his latest Chairman’s Update, 2026 NAHB Chairman Bill Owens spotlights NAHB's Legislative Conference, taking place June 10 in Washington D.C., and highlights the messaging members will be focusing on this year.

Membership

May 29, 2026

Celebrate National Homeownership Month with New NAHB Resources

Promote National Homeownership Month this June with NAHB’s online toolkit, a ready-to-use guide to showcase the value of homeownership nationwide.

View all

Latest Economic News

Economics

May 28, 2026

New Home Sales Down in April on Affordability Concerns

Elevated mortgage rates, higher inflation and economic uncertainty kept more buyers on the sidelines in April as ongoing affordability challenges continue.

Economics

May 27, 2026

Multifamily Missing Middle Construction: First Quarter 2026

The missing middle construction sector includes development of medium-density housing, such as townhouses, duplexes and other small multifamily properties. The multifamily segment of the missing middle (apartments in 2- to 4-unit properties) has generally disappointed since the Great Recession.

Economics

May 26, 2026

First Quarter 2026 Multifamily Construction Data

According to NAHB analysis of quarterly Census data, the count of multifamily, for-rent housing starts increased year-over-year during the first quarter of 2026. For the quarter, 107,000 multifamily residences started construction.