BLM Land Control and Public Lands

BLM Land Control And Public Lands

In Nevada, one unique challenge stands out: navigating site control for Bureau of Land Management (BLM) properties in affordable housing projects. If you’re unfamiliar with this issue, you’re not alone. It involves a small group of stakeholders, including BLM officials, Congress, and various agencies dedicated to managing these vast federal lands.

Federal land covers 80% of Nevada, a proportion unmatched except perhaps by Alaska. A significant portion, approximately 60%, is under BLM jurisdiction. In southern Nevada especially, these federally controlled lands often border existing urban areas and are in prime locations for city expansion. When we’re talking about affordable housing, we already know that the availability of land and site control can make a huge difference in development and whether we have the resources to solve the housing shortage.

Historically, BLM-controlled lands could not be allocated for affordable housing without Congressional approval, a process that remains lengthy and complex in parts of Nevada. However, legislative changes have provided developers with a crucial tool to access new sites.

Generally, applications for these projects must come from local or state governments, including public housing authorities. Most developers involved must operate as non-profits. Addressing the housing shortage hinges significantly on overcoming these land access challenges.

What is “SNPLMA”? Southern Nevada Public Land Management Act

The Southern Nevada Public Land Management Act (SNPLMA) is federal legislation enacted in 1998 to regulate the sale of public lands by the Bureau of Land Management (BLM) within a specific geographic area of southern Nevada. For affordable housing projects seeking site control within this region, SNPLMA can expedite the appraisal process for federal lands.

Prior to SNPLMA, each land conveyance required individual approval by Congress, a process that remains possible but is complex and infrequent. Revenues generated from land sales under SNPLMA contribute to Nevada's education, water infrastructure, and other public funds such as trails and conservation efforts. While SNPLMA also governs market sales and includes regulations on noise zones and other specifics, t land conveyance for the purpose of affordable housing is a common usage of this law.

A significant consideration when acquiring BLM land is the extended timeline for approval before development can begin. To mitigate this, several local jurisdictions in Southern Nevada have proactively reserved parcels through the BLM, including the City of Las Vegas, Clark County, and the City of Henderson.

BLM Land Considerations

The Bureau of Land Management (BLM) does not accept external surveys, environmental reviews, or appraisals. Determinations regarding internal surveys may involve the Department of the Interior or another relevant agency.

Developers planning projects on BLM land must account for roads, land rights, and utility easements, all of which require surveying and approval, especially where they intersect BLM land surrounded by other properties. For instance, in West Henderson, NV, a community earmarked for significant development prompted the city to engage in early collaboration with BLM when planning a roundabout, addressing utilities, rights-of-way, and easements. This may significantly increase the lead time required compared to the average developer experience.

A crucial requirement is obtaining a BLM-approved National Environmental Policy Act (NEPA) assessment. Note that a HUD-approved environmental review may not suffice, so consult with BLM early on to determine whether they will accept a HUD review as a starting point. It's essential to recognize that BLM adheres to a distinct NEPA process.

Finally, keep in mind that developers cannot directly engage with BLM; all communications must go through the local jurisdiction (such as a housing authority). For this reason, set up regular meetings involving the local jurisdiction where the developer can ask questions directly. The application is called a nomination application, which the developer prepares and then gives to the government agency in the deal for them to sign and submit to the BLM.

A Glossary of Navigating BLM Lands:

Alliquot lots	Alliquot lots refer to parcels of land managed by the Bureau of Land Management (BLM), typically standardized into five-acre sections known as aliquots. BLM divides land using a large grid map, and if a piece of land does not neatly fit into a five-acre aliquot, BLM may need to conduct a survey to establish appropriate boundaries. These surveys can cause significant delays in the approval process for development projects.
Patents	BLM refers to their land deeds as patents. This will be the legal document you try to attain in the transfer or sale of ownership.
Reverter clause	A reverter clause contains reversionary language that grants BLM the option to reclaim the land under certain conditions. If triggered, such as during construction or due to a failure to obtain a Certificate of Occupancy within five years, the clause requires payment of the fair market value of any structures on the site at that time (e.g., $20 million). Additionally, the project must maintain affordability; failure to do so may also trigger reversion. Historically, mismanagement could prompt BLM intervention, necessitating compensation or return of the land. Understandably, many banks and lenders were critical of this clause which led to barriers for financing. Recently, under the Southern Nevada Public Land Management Act (SNPLMA), the requirement tied to project affordability has been removed, addressing concerns from lenders. Efforts to refine language and improve processes between federal agencies and private lenders are ongoing.