Las Vegas developer secures approval for state-backed $33M townhouse complex

Across Southern Nevada, house hunters have pulled back in droves from new subdivisions over the past few years amid a series of financial hurdles.

Now, a local developer has landed state funding to build a more-affordable townhouse complex that he hopes will draw buyers.

The Las Vegas City Council last week approved plans by developer Scott Goldstein’s firm, Prospect Street Capital, for a 97-lot townhome project in the northwest valley. Plans call for three- and four-bedroom homes spanning from 1,359 to 1,518 square feet.

According to a news release, the $33.4 million project is backed by a $10.5 million low-interest loan from the state-run Nevada Attainable Housing Account.

This fund was established by legislation last year that allocated $133 million to help expand affordable housing options statewide.

‘Make homes more affordable’

Goldstein, founder and managing partner of Las Vegas-based Prospect Street, said in an interview that the homes in his project — located along the west side of the 215 Beltway between Ann Road and Centennial Parkway — will be priced between $360,000 and $370,000.

He purchased the roughly 5-acre site last month for $5.5 million, property records show, and he expects to break ground on the project in fall 2027.

As he described it, there is a clear imbalance between the homes being sold in Southern Nevada and what buyers can afford, and he is betting there will be ample demand for his new housing tract.

According to the news release on his project, the state funds help offset development costs and “make homes more affordable for buyers.”

Plus, it noted that homes bought through the program must be owner-occupied.

Overall, homebuilders in the Las Vegas Valley have been selling much fewer houses over the past few years, as high price tags and elevated mortgage rates have made it increasingly difficult for many would-be buyers to afford a purchase.

Builders closed 6,143 home sales in Southern Nevada this year through September, down 20 percent from the same nine-month stretch last year, according to Las Vegas-based Home Builders Research.

This follows a 20 percent drop in closings last year, too.

Down payment funds

Lennar Corp. President and CEO Stuart Miller, who leads one of the biggest homebuilders in the nation, said in an earnings call last month that fewer families “can afford to both produce a down payment and qualify for a mortgage,” noting that in many of its markets, nearly 50 percent of the visitors to its project sites “cannot immediately qualify” for a loan.

Last year, Gov. Joe Lombardo signed Assembly Bill 540 into law, creating the attainable housing account. According to the Nevada Housing Division, the measure aims to support affordable housing for low-and moderate-income households through new developments, homeownership opportunities, and local government matching funds.

In Southern Nevada, Goldstein isn’t the only developer to access these funds for a for-sale housing project.

Las Vegas builder Signature Homes was awarded around $800,000 for down payment assistance for buyers at its new subdivision near the corner of Eastern and Twain avenues.

The project, Paradise Trails, has 29 two-story single-family houses, and Signature President Rick Barron said in an interview that the state funding amounts to $27,500 in down payment support for each home.

He said the funding comes with a 0 percent interest rate and would be paid off when the buyer sells their home or refinances their mortgage.

Contact Eli Segall at [email protected] or 702-383-0342.