Authorize the use of economic development programs for certain construction or rehabilitation of housing in cities of the metropolitan class and cities of the primary class under the Local Option Municipal Economic Development Act

This bill (LB 850) amends Nebraska's Local Option Municipal Economic Development Act to explicitly allow cities of metropolitan class (over 50,000 residents) and primary class (20,000-50,000 residents) to use existing economic development funds for housing construction or rehabilitation. It specifically authorizes these funds for housing projects targeting low/moderate-income residents, workforce housing plans, or affordable housing action plans (as defined in Section 19-5505). The bill updates definitions to include housing construction/rehabilitation as a qualifying business activity for these cities. This change expands current allowable uses of economic development programs without creating new funding. The bill focuses on streamlining how cities can address housing needs through existing local economic development tools.