This legislative resolution directs the Urban Affairs Committee to conduct an interim study on innovative methods for housing development, financing, and ownership in Nebraska. The study will explore new approaches such as tokenized credit systems, community-based investment models, and digital infrastructure to improve affordable housing access and public investment transparency. The committee will report its findings and recommendations to the Legislative Council or Legislature upon completion. This action is currently in the early stages of the legislative process and does not enact any new laws.
This bill (LB 768) amends Nebraska's housing finance laws to expand the Nebraska Investment Finance Authority's (NIFA) powers, allowing it to partner with nonprofit entities supporting housing projects. It modifies the Nebraska Affordable Housing Act, Rural Workforce Housing Investment Act, and Middle Income Workforce Housing Investment Act to require the Department of Economic Development to allocate at least 30% of Affordable Housing Trust Fund dollars to each congressional district annually. The bill also eliminates the housing advisory committee and updates fund administration rules, including streamlining grant application processes and clarifying fund transfers. These changes directly affect housing developers, local governments, and low-to-moderate income residents seeking affordable housing assistance under the three affected acts.
LB 1094 adopts two key laws to streamline housing development in Nebraska. It requires local governments to automatically approve most housing projects (including single-family homes, accessory units, and apartment buildings) that meet existing zoning rules, eliminating discretionary reviews by planning commissions. The bill also mandates that permit decisions be made within 75 days, with automatic approval if delayed, and requires clear written reasons for denials. This directly affects developers, homeowners seeking to build accessory units, and local permitting authorities, while excluding restrictions from homeowners' associations. The law includes a court appeal process for denied permits, requiring strict review of permit authority decisions.
LB 988 amends Nebraska's Community Development Law to update definitions and rules for designating blighted areas and using tax-increment financing. It specifically redefines "blighted area" with new criteria, including unemployment rates, building ages, and affordability requirements (e.g., requiring at least 20% affordable housing). The bill also sets strict limits: cities cannot designate more than 35% of their area as blighted (or 50% for smaller cities), with exceptions for defense sites or designated "extremely blighted" areas. These changes aim to standardize redevelopment planning and limit tax-increment financing use while harmonizing existing law sections.
LB 819 amends Nebraska's Rural and Middle Income Workforce Housing Investment Acts to update key definitions and program rules. It specifically revises the cost limits for qualifying workforce housing: owner-occupied units must cost no more than $375,250 (adjusted annually for inflation), and rental units no more than $325,000. The bill also requires nonprofit developers applying for grants to provide 25% matching funds and caps annual grants at $5 million per organization over two years. These changes directly affect rural communities seeking housing development funding and nonprofit organizations managing workforce housing investment funds.
LB 1168 amends Nebraska's Community Development Law to explicitly authorize cities and redevelopment authorities to issue "conduit revenue bonds" under specific taxpayer agreements. These bonds allow private entities (like developers) to fund redevelopment projects while cities use tax increment financing, with private parties repaying bond costs through agreed-upon payments. The bill primarily affects cities pursuing redevelopment in designated "extremely blighted areas" under Sections 18-2101.02 and 18-2147, streamlining how they structure financing for projects like housing or commercial development. Key changes include updating bond issuance rules in Section 18-2124 to include conduit bonds and harmonizing related reporting requirements in Sections 18-2101.02 and 18-2117.01.
This constitutional amendment (LR 312CA) would allow Nebraska cities and villages to borrow money for residential development or redevelopment projects in designated blighted areas. It permits municipalities to issue bonds or loans without being restricted by existing charters and to pledge excess property taxes from the project area (above pre-development values) to repay the debt. The tax pledges would last up to 15 years for residential projects or 20 years for redevelopment (potentially extended under specific high-unemployment/poverty conditions). The amendment requires voter approval at the November 2026 general election and would change existing constitutional provisions governing such projects.
LB 806 creates a specific $2 million grant from Nebraska's Site and Building Development Fund for a city of the first class located in the third congressional district. This grant is only available if the property previously housed a defunct university and is being revitalized to support youth exiting foster care or juvenile court supervision. The funds must be used to improve buildings or infrastructure for housing, employment, and program needs related to these youth. The bill amends existing law to add this targeted grant provision under the Site and Building Development Act.
This bill reduces funding for the Department of Economic Development's Community and Rural Development program by approximately $10 million in the 2026-27 fiscal year. It decreases General Fund allocations from $7.29 million to $6.29 million and cuts Cash Fund allocations significantly (from $36.58 million to $21.67 million and $36.58 million to $27.67 million), while maintaining Federal Funds at about $54.57 million. The bill eliminates $250,000 for prefabricated housing studies, keeps $700,000 for development districts, and maintains $4.88 million for reading mentorship programs. It directly affects the department's budget execution for rural development initiatives, housing studies, and educational support programs. The changes reflect a reallocation of state funds without introducing new policy requirements.
Nebraska's LB 1156 creates a tax credit program to encourage private investment in economically distressed communities. It allows taxpayers to claim a 50% nonrefundable income tax credit for cash contributions to qualifying organizations (like community development banks or innovation hubs) that fund projects in designated distressed areas. These funds support affordable commercial space, workforce training, site preparation, and small developer projects, with annual limits of $26.5 million for tax credits and $20 million for supplemental grants. The program targets small developers and underrepresented businesses in neighborhoods facing high unemployment and poverty, aiming to expand local economic opportunities without direct public funding.
