SOUTH LAKE TAHOE - The Tahoe Regional Planning Agency has reversed last month's decision for a limited ban on condominium construction in the Tahoe Basin.
The agency's governing board decided Tahoe counties have demonstrated enough progress in pursuing affordable housing construction to allow the moratorium to be lifted.
The agency's governing board took the action Wednesday after a tense exchange between a Nevada lawmaker and a top TRPA member.
State Sen. Bill O'Donnell, R-Las Vegas, called the ban a violation of property rights and hinted he might take action against TRPA's budget as a Senate Finance Committee member.
O'Donnell, a member of a legislative committee that oversees TRPA, also said he might request an investigation by the Nevada attorney general.
''This violation of one's property rights is tyranny,'' he said. ''This board has victimized the people of the lake and I intend to stand up for them.''
But his comments drew an irritated response from former Rep. Jerome Waldie, the California state Senate's appointee to TRPA's board.
''That sounds like a threat to me, senator, and I've been where you are,'' he said. ''I'm not going to be frightened by any of the threats that you've made.''
Builders and other business interests also urged TRPA's board to lift the moratorium, saying progress is being made with affordable housing.
TRPA agreed with them in a finding that was opposite from one made by the same board in May.
Last month's TRPA finding that the counties have failed to provide enough inexpensive housing automatically triggered the moratorium.
The idea was to prevent the subdivision of land for costly condominiums and to encourage its use for affordable housing instead.
In other business, TRPA board was told a state-of-the-art mass transit system should be in operation at Lake Tahoe by late next year.
Dick Power, transit system project manager, said the system's novelty and complexity have led to delays in its startup.
The system is aimed at reducing traffic congestion and air pollution in the Tahoe Basin.