Nevada Housing Division Requirements for the General Contractor and Construction Phase

QAP section 7.4.5 turns the contractor fee into a scoring item. It awards one point for each 1 percent reduction in contractor fees, up to three: three points for a fee under 12 percent, two points for 12 to 12.99 percent, one point for 13 to 13.99 percent and none at 14 percent or higher. The plan allows the dollar fee to rise later only if the percentage stays the same, and section 2.4 says that in a request for additional credits the contractor fee cannot go above the original percentage in the initial application. A general contractor that agrees to a 12.5 percent fee to help the score is typically held to that percentage for the life of the deal, so the bid should be built at that number from the start.

Related-party construction draws extra attention. When the developer and the builder share an identity of interest, section 6.6 lets the Division hire an estimating consultant at the applicant's expense, and the Division may limit the builder's profit, overhead and general requirements or require the use of an alternate builder. Sponsors that build with an affiliated contractor typically document the cost basis carefully at application so the estimate can stand up to an outside estimate.

The 2026 QAP caps the developer fee at 15 percent. For 4 percent tax credit projects the base is total development cost excluding developer fees; for 9 percent projects the base is eligible basis. Any deferred developer fee must be paid in full by year 15.

NAC 319.722 sets the payment pattern for the Division's bond program: a fee of up to 15 percent of tax-credit-eligible basis, with not more than 50 percent paid on the basis of percentage of completion of the improvements, not more than 25 percent at conversion to the permanent loan and at least 25 percent from cash flow. For the construction team, the practical effect is that the developer's own cash from fee is tied to progress, which is one reason lenders and investors watch the construction schedule and draw requests closely.

Section 12.5 of the QAP cites NAC 319.981(1), which looks for a written agreement with a contractor licensed in the State to begin construction within 270 days of the reservation. A sponsor that has not chosen a Nevada-licensed general contractor, or whose preferred builder holds licenses only in other states, can put that timeline at risk, so licensing is typically confirmed before the reservation rather than after.

Section 6.11.1 asks for financial statements of the owners, the general contractor and the property management company for the prior two full calendar years. The bond program application in NAC chapter 319 also lists a copy of any general contractor's agreement between the sponsor and the proposed general contractor. A contractor new to Division projects should expect its balance sheet and its contract terms to be read by the Division and, separately, by the lender, the credit enhancer and the investor. None of these filings means a contractor or a project will qualify or receive an allocation; each step depends on the Division's evaluation under the current year's rules.

Section 6.4 of the 2026 QAP caps total development cost per unit, excluding land, on 9 percent projects at $350,000 in Clark County and $370,000 in all other counties, and the same section lists higher limits of $530,000 and $540,000 that apply to rent-to-own and Tribal projects; confirm in the current QAP which limit applies to a given project and county. A Las Vegas valley project with structured parking or a podium can press against the Clark County figure, and the construction budget, including contingency and insurance, sits inside it.

Under section 6.6 the Division evaluates feasibility three times: at application, at carryover and at final cost certification, with a minimum debt coverage ratio of 1.15. Section 12.4 says the sponsor must meet the 10 percent test by November 5, 2027, for this round. Section 13 then requires a CPA certification of costs with the Form 8609 request, which the Division will consider the true and correct document. For a general contractor, that means change orders, allowances and the final contractor fee are typically traced back to the contract and the draw history, so clean cost records through closeout matter as much as the bid.

The Division's Multi-Family Bond Financing page, which is undated, states that state law requires credit enhancement on bond-financed projects and that it must carry an Aa/AA or Aaa/AAA long-term rating. The page also says applicants must obtain local government endorsement of the project by council resolution. NAC 319.7115(2) expects local governments to provide at least 50 percent of the volume cap, subject to exceptions. NAC 319.719 limits a Division first lien to 85 percent of appraised value unless the Division allows more. Starting January 1, 2026, QAP section 3.1 caps new private activity bonds per project at 30 percent of aggregate basis.

NAC 319.7185 requires each sponsor to maintain tax and insurance escrows, plus repair and replacement escrows, for the duration of the loan. That rule speaks to the operating years, not to construction-phase coverage, but it shows that property insurance becomes a continuing loan obligation once the project converts. Because the credit enhancer stands behind the bonds, its own documents are typically where construction insurance, completion and bonding terms are written, and they can vary by enhancer and transaction.

The 2026 QAP and NAC chapter 319 do not set builder's risk limits, general liability limits, additional insured or loss payee wording, payment and performance bonds, prevailing wage or retainage. The only insurance the QAP text mentions is the owner's title insurance policy. Those construction terms typically come from the construction lender, the bond issuer or credit enhancer and the tax credit investor, and they are confirmed in the loan agreement, the bond documents and the partnership agreement. If HOME, trust fund or other public money is layered into the project, confirm with each funder whether its own wage or contract terms apply.

In practice the sponsor collects each party's insurance exhibit early and reconciles them before the construction contract is signed, because the general contractor's policies and bonds have to satisfy all of them at once. Coverage is subject to underwriting and the terms of the policies and bonds issued, and requirements can vary by lender, investor and program.

• Builder's risk amount, deductible and loss payee: construction lender and investor documents
• General liability and excess limits, additional insured and waiver of subrogation: loan agreement and partnership agreement
• Payment and performance bonds or another completion assurance: lender, credit enhancer or investor
• Retainage and draw conditions: construction loan agreement and the construction contract
• Prevailing wage: the terms of any public funding layered into the deal