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AB 241

Revises provisions relating to housing. (BDR 22-65)

2025 Regular Session Introduced by Sandra Jauregui

Requires every Nevada county/city to authorize by-right multifamily or mixed-use residential development on commercially zoned parcels, with local standards and key exclusions.

Approved by the Governor. Chapter 174.
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Bill Summary · AB 241

AB 241 — Revises provisions relating to housing (BDR 22‑65)

Status: Approved by Governor (Chapter 174, May 31, 2025). Introduced Jan 14, 2025.

Purpose / Intent

AB 241 is a statewide zoning reform aimed at increasing housing supply by requiring every Nevada county and city governing body to adopt an ordinance authorizing “by‑right” multifamily or mixed‑use developments that include residential uses on commercially zoned parcels. The law intends to reduce regulatory barriers that can delay or prevent housing development in commercial areas.

Key provisions

  • Mandatory local ordinance: Not later than March 1, 2026, each county and city governing body must adopt an ordinance that authorizes by‑right a multifamily housing development or mixed‑use development containing residential uses on property zoned for commercial use. The ordinance may establish standards and requirements developers must meet to qualify for by‑right approval (e.g., design, parking, setbacks — specifics left to local ordinance).
  • Scope exclusions:
    • “Property zoned for commercial use” expressly does NOT include property zoned for industrial use.
    • Ordinances under this section do not apply to property that is: (a) zoned for or in relation to an airport; or (b) within the Tahoe Regional Planning Compact region (NRS 277.200).
  • Preemption: Any county or city ordinance, regulation, or rule that conflicts with AB 241 is declared void as to the conflicting provision.
  • Judicial review timeline: Any action seeking judicial relief relating to a final local action under this law must be commenced within 25 days after filing notice of the final action with the clerk/secretary (conforming change to NRS 278.0235).
  • State property transfers: Authorizes the State Land Registrar, subject to conditions, to transfer certain State‑owned real property without consideration to Catholic Charities of Northern Nevada and the Reno‑Sparks Gospel Mission; requires surveys/legal descriptions, deed restrictions and reversion clauses, with the Reno Redevelopment Agency to cover transfer costs.

Who is affected

  • Local governments (counties and cities): must draft, adopt and implement the required ordinance by the statutory deadline; the bill contains an unfunded mandate and may have fiscal impacts on local planning staff and processes.
  • Developers and property owners of commercially zoned parcels: gain a by‑right option for multifamily or mixed‑use residential projects where eligible.
  • Communities located near airports and within the Tahoe Basin: largely exempted from the by‑right requirement.

Procedural / timeline notes

  • Governor approved (Chapter 174) May 31, 2025; enrolled May 29, 2025.
  • Local ordinances required by March 1, 2026.
  • Contains a 25‑day deadline for initiating judicial review of final local actions related to the statute.

Stakeholder concerns & fiscal note

  • The bill contains an unfunded mandate for local governments; fiscal impact on local agencies “may” occur.
  • Planning professionals (APA Nevada) testified neutral, noting concerns about one‑size‑fits‑all approaches, land‑use compatibility (noise, nuisance uses, gaming, industrial adjacencies), and the need for collaborative, context‑sensitive zoning reforms.
  • Local governments (Clark, Washoe, Douglas) proposed amendments (largely reflected in exclusions and timeframes) to address airport and Tahoe‑area compatibility and timing.

This summary highlights the statute’s main regulatory changes: a statewide requirement to allow by‑right multifamily/mixed‑use residential development in commercial zones (with specified exclusions), the preemption of conflicting local rules, a short judicial review window, and limited state property transfer authority for homelessness/housing providers.

Compiled from official sources — confirm details with the bill’s official record.

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