Nevada officials have abandoned their proposal to change the funding plan for the relocation of residents in North Las Vegas’ blighted Windsor Park neighborhood following backlash from Democratic legislators and residents of the historically Black neighborhood that has become dilapidated because the ground is sinking.

Earlier this year, Gov. Joe Lombardo and officials from the Nevada Housing Division sought to rework the funding plan amid concerns that the state would not be able to use all of the federally allocated money before spending deadlines. The request prompted swift outcry from residents of the neighborhood, who panned the proposal as the latest in decades of mistreatment from government officials.

However, the governor’s office made no request to change the funding source ahead of this week’s meeting of the state’s Interim Finance Committee (IFC) — a group of lawmakers that makes spending decisions when the Legislature is not in session — which was the last possible time to do so before certain funding deadlines.

It’s unknown whether state officials remain concerned about whether the money can be expended by the end of 2026. A spokesperson for the housing division did not offer comment in response to a Nevada Independent request by a  Thursday deadline.

Built between 1964 and 1966, Windsor Park became unsafe in the 1980s because of subsidence — sinking of the ground because of groundwater overuse — leaving homes in the predominantly African American community blighted and disheveled ever since. 

Last year, the Legislature passed SB450, which authorized $37 million to build 93 single-family homes in an adjacent area for remaining residents. The funding includes $12 million from the state’s general fund, with the remainder from coronavirus relief funding made available through the American Rescue Plan (ARP).

However, state officials became concerned this year that the $25 million of coronavirus relief funds would not be fully spent by the end of 2026, a requirement for ARP money. In October, they asked legislators to approve rescinding the $25 million, while pledging to bring back legislation next year to fund the entire project through the state budget.

Ahead of Thursday’s meeting, the governor’s office did not request to de-obligate the funds, which was the last time it could have done so because all coronavirus relief funds must be obligated, or planned for a specific use, by the end of this year.

Even if the request had been made, it was no sure thing to pass out of the committee, which has a Democratic majority.

Democratic members were unhappy with the proposal during the October meeting, condemning officials regarding the possibility that the money might not be spent in the next two years. They also worried that any future legislation was no sure thing, despite Democrats holding majorities in both chambers and the apparent support from the governor’s office.

In October, governor’s office spokesperson Elizabeth Ray said the proposal would ensure the future of the Windsor Park relocation project and described any attempts to suggest otherwise as “political and disingenuous.”

Ray did not respond to multiple requests for comment this week.

September emails between Ryan Cherry, the governor’s chief of staff, and top Democratic legislators indicated that the governor’s office hoped the coronavirus relief funds could instead be used to offer rental and down payment assistance to homebuyers statewide. 

State housing officials said in October that the Windsor Park project is about eight to 10 months behind the timeline set forth by the developer of the new housing. They emphasized that this project is unique in its difficulty because the land is owned by 300 different entities, with the state lacking control of the site and soil testing results not yet available.

Additionally, none of the $37 million had been expended as of October because the state had not received any requests for money from the developers.