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

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.