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NebraskaLB1114109th Legislature 1st and 2nd SessionslegislatureWALLET

Adopt the Community Improvement District Act and the New Taxpayer Recruitment Grant Act, authorize community improvement districts to levy property taxes, and change provisions related to the Community Development Law, the Municipal Inland Port Authority Act, extraterritorial jurisdiction, sanitary and improvement districts, housing authorities, housing agencies, the Nebraska Housing Agency Act, and the Local Option Municipal Economic Development Act

Sponsored By: Urban Affairs Committee

Signed by Governor

Urban Affairs Committee

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Bill Overview

Analyzed Economic Effects

31 provisions identified: 9 benefits, 3 costs, 19 mixed.

City sewer charges can lien property

If a CID sewer connects to a city or village system, the city can charge users or property owners for sewer use. Those charges are a lien on the property. The city can collect by lawsuit or like a special assessment. The city can also set rates and rules for use.

CID power to take, buy, sell land

A CID can use eminent domain to take or damage private property for public improvements, but only with city or village approval and by following state condemnation law. A CID can also buy needed land or rights, even outside the district, with local approval. If the city already approved project plans and exact costs, that can count as approval to get needed land rights. A CID may sell district land, usually by public auction after three weeks of notice; it can reject bids and negotiate a higher price.

Special assessments and payment rules

A CID can declare a public project is needed and assess benefited lots to pay for it. It must publish the full proposal for two weeks and hold a hearing; owners can block some actions by petition, and you can appeal assessments in district court. After city approval of completed work, the engineer files costs and proposed assessments. You can pay within 50 days without interest; after that, interest applies, and installments can run up to 20 years. Delinquent installments face higher interest and can trigger acceleration, and assessments are collected like property taxes. All assessments and connection charges go first to a sinking fund to pay the project costs and interest.

Renter complaint rights in big cities

If you live in housing run by an agency in a metropolitan‑class city, you can file complaints online, by phone, or in person. The agency must answer in five business days, give you a case number, and aim to resolve it in 14 days or explain the delay. You get a written result. The city can inspect and register agency‑managed rentals, fine for code violations, and require monthly reports, including pest complaints.

Clear rules for workforce housing

The law defines what counts as workforce housing. For owner homes, the construction cost must be $275,000 or less. For rentals, the cost must be $200,000 or less per unit. These caps are updated each year using the Producer Price Index. It also covers rehab work costing over 50% of assessed value and upper‑story housing.

CIDs must pay election costs

A CID must pay the full cost of its elections. This includes owner lists, printing and mailing, election worker pay and mileage, and shared clerical costs. The election office bills the CID within 60 days, and the CID’s attorney must pay within 60 days. CIDs also pay costs when a special issue appears on a statewide primary or general ballot.

New CID property taxes and levies

Community Improvement Districts (CIDs) can levy a property tax on property inside the district. The maximum rate must be stated in the CID’s formation papers and approved by the city or village. Each year, the CID must set a bond tax high enough to pay principal and interest due. CIDs may also promise a minimum levy or build a sinking fund to back their debt, and creditors can enforce those promises. The CID levy does not count against city levy caps. The maximum rate can change only with signatures from a majority of owners and a city or village ordinance.

Court-run CID fixes and admin tax

If a court refers a CID, the city or village must appoint an administrator unless it finds good cause not to. While appointed, the administrator runs CID powers and may levy a separate administration tax to pay fees and costs. The fee is at least $500 per month ($6,000 per year) and may be raised based on the work. The board or administrator may negotiate lower rates or discounts on CID debts and issue new bonds or warrants to settle them, but the county court must approve the new terms.

New taxes and bonds in improvement districts

Community improvement districts can charge special assessments tied to the benefit your property gets. They can also issue bonds for up to 30 years, with first principal due within five years and at least 20% repaid within ten years. District property-tax levies do not count against the county’s 15-cent allocation cap, and young districts (five years or less) are excluded from certain allowable-growth limits. Normally exempt or outside properties are not assessed, but if they get a special benefit, the owner must pay an amount equal to that benefit.

Rules to annex, merge, or dissolve CIDs

Owners of at least 50% of an area can petition to annex land into a CID; the city or village must approve after notices and a hearing. Annexed property must pay CID taxes and assessments after annexation, even for earlier obligations. Two CIDs can merge after notice and hearings; owners holding a majority, any unpaid bondholder, or the city can block it, and the survivor takes all debts. Land can be detached or a CID dissolved only after notice; owners with a majority or the city can block it, and if debts remain, all holders must consent. If land sits in two CIDs, boards must agree which one it belongs to, or a court will decide and adjust debts.

Stronger lien and foreclosure rules in improvement districts

Districts can sue to foreclose unpaid special assessments if the county has not first put them up for tax sale. Final deed cannot be issued until two years after the sheriff’s sale, and occupants must get personal notice before confirmation. Counties no longer must send due notices for CID or SID special assessments unless allowed by the county board. County tax deeds and foreclosure orders do not wipe out unpaid CID or SID special assessments that were never offered for sale, and sale proceeds and surpluses exclude those liens. Counties also do not automatically sell property for these assessments unless the district requests it.

New finance and oversight for CIDs

The county treasurer serves as the CID treasurer and handles collections and payouts as directed. Each CID must get an annual independent audit and file it by December 31. CIDs can pay issuance and professional fees from bond proceeds, replace lost bonds, use facsimile signatures, publish bond notices with a 30‑day challenge window, and are treated as standard issuers under state law. CIDs are covered by the Budget Act and can join interlocal and joint public agencies. They also may file Chapter 9 bankruptcy to adjust debts.

New rules for community improvement districts

Community improvement districts (CIDs) are treated as political subdivisions and as governmental units under state security and credit laws. CIDs can issue refunding bonds. If a CID defaults, the city, county, and state do not owe the debt. CIDs cannot buy and resell electricity. CIDs cannot use eminent domain to take utility facilities or state highways or other state‑owned property. If a project needs changes to state property, the developer or the city pays, and the CID must work with the Department of Transportation or the state agency.

Cities get more control over districts

District projects must follow city zoning and permit rules, and cities must approve plans and costs before infrastructure work or interlocal contracts. District clerks must file key notices and audits, give the city seven days’ meeting notice, and send minutes on time. A district cannot hold more than 10 acres unless the extra land is used for a public purpose within three years, or it must be sold at public auction. Courts can step in when there is default, missing levies, or no functioning board. The court may send the district to the city to appoint an administrator, suspend trustees, call an election, or order needed levies, with mailed and published notice to owners and bondholders.

More tools to build affordable homes

Local economic development funds can help build or fix homes for low‑ and moderate‑income families and for workforce and affordable housing plans. The law counts workforce housing and homes for households under 150% of county median income, and homes under federal section 42, as affordable. Redevelopment areas and projects can include more places, like extraterritorial zoning areas and long‑underused parcels, with added city approvals and some old outside‑city powers removed. The rules lower the bar to declare an area extremely blighted and count the city’s extraterritorial area in blight caps. Cities can also include some former defense sites if they meet county, district, annexation‑intent, and consent conditions.

New grants to recruit residents

The state runs a New Taxpayer Recruitment Grant program. Cities, Indian tribes, and certain nonprofits can apply each year starting July 15. Applications must include a plan with total and itemized costs, roles, a household goal, and tax and economic impact estimates. Each applicant must provide at least a 20% local match; allowed sources include local economic development funds, federal money, private gifts, and in‑kind value. Awards are capped at $250,000 per applicant per fiscal year. The department pays 50% at award and the rest after the recipient reports meeting half of its household goal; missed goals forfeit the remainder. Recipients must report twice a year on applications, incentives paid, and incomes and jobs of approved households. Households that seek incentives must live outside Nebraska when they apply and have at least $55,000 in household income. A cash fund finances the program, and the department may set rules.

Tax-split starts only inside city areas

For a redevelopment plan, the split of ad valorem taxes does not start until the property is inside a city’s limits or its extra‑territorial zoning area. This delays tax‑division effects and can change the timing of TIF‑like financing and local revenues.

Stronger buyer notices for CID homes

Each year by December 31, a CID files a public statement listing its board, advisers, debt as of June 30, and the current levy. Late filings owe $10 per day, up to $300. When selling a home in a CID, the broker or owner must give buyers that statement and get a signed acknowledgment before the buyer is bound. If the seller fails, the buyer can seek damages, but title is not affected.

How CID board elections work

CID trustee elections happen on the first Tuesday after the second Monday in September. The first vote is at least 15 months after the CID is created, then every two years. Candidates file at least 50 days before the election and pay no filing fee. Ballots are mailed at least 20 days before the vote and must be returned by 5 p.m. on election day. Early on, votes are by lot or acre; after 6 and 8 years, more seats are chosen by resident owners. If an administrator takes over, a special election must be held within 60 days. Election officials run and certify the vote, contests follow the Nebraska Election Act, and CIDs must provide maps and info when asked.

New voting mix for sanitary districts

Sanitary and improvement districts change how trustees are chosen over time. At 4 and 6 years after the first election, two trustees are elected by resident owners and three by all owners. At 8 years and after, three are elected by resident owners and two by all owners. This stays in place unless the board later amends its articles.

More reporting by metro housing agency

The metro housing agency must file a yearly report to lawmakers. It must cover pest control actions, eviction filings, complaints and how they were resolved, occupancy rates, and board updates. This improves public oversight and transparency.

Property tax break for inland ports

Improvements and lease deals by an inland port authority count as a public purpose. That makes inland port property and certain leases eligible for property tax exemption under state law.

Local aid for housing builders and childcare

Local economic development programs can now include businesses that mainly build or rehab housing. First‑ and second‑class cities and villages may also fund rural infrastructure and early childhood facilities through these programs.

More inland ports and property tax break

Counties with more than 15,000 people can propose an inland port authority and must have over 300 eligible acres. The statewide limit on inland port districts rises from 5 to 8, and a metro‑class city can still have only one inside its boundaries. Any real or personal property leased to or by an inland port authority is exempt from property tax.

How CIDs form and are governed

Owners inside a city or village can form a CID to build and maintain public infrastructure. Formation needs a majority based on zoning rules; for agricultural land, all owners must agree. The articles must name at least five trustees who live in, own in, or represent owners in the district. The board meets within 30 days, keeps records open, and may hire professionals. The chair files a $5,000 bond, and the clerk and any administrator file $20,000 bonds; bond premiums are paid from district funds.

Recall rules for CID trustees

Trustees can be removed by recall. Only people who could vote for that trustee on the day papers are issued can sign. Each signature is counted by the votes that signer could cast, and the petition must reach 35% of the highest votes for any candidate at the last election. Papers use a uniform form, must include required content, and must be filed within 30 days. If the trustee does not resign, the recall vote is held 45–60 days later or at the next regular election if it is within 120 days. If most voters choose removal, the trustee is removed at once. You cannot file a recall within 6 months after the term starts, within 6 months before the filing deadline, or within 12 months after a failed recall.

Bidding and payment rules for contractors

CID construction contracts over $50,000 must go to the lowest responsible bidder after at least 20 days’ notice. Bid notices run once a week for two weeks and must state the engineer’s estimate; each bid must include a certified check or bond of at least 5% of that estimate. Contractors earn interest on retained amounts starting 20 days after they give completion notice and required records. CIDs may issue warrants for up to 95% of work in progress; capital warrants are due within five years, and operations warrants within three years. If an operations warrant is not issued within 60 days, interest starts on day 61 at 1.5 times the statutory rate.

Faster reviews for some redevelopment

More projects can use expedited plan review. It now covers projects inside a city or its zoning area. The age test drops from 60 years to 25 years. Vacant platted lots and nonconforming lots in blighted areas are eligible. Adding a former defense site does not change utility service areas unless the utility or company agrees or law allows. A county may agree to reimburse a city for services to a redeveloped former defense site.

Higher bidding threshold for district projects

Sanitary and improvement districts must seek competitive bids only for contracts over $50,000. These contracts need at least 20 days’ notice and must go to the lowest responsible bidder, but the board may reject bids.

Old state statutes repealed

The law repeals a list of older Nebraska statutes named in the act. This cleans up the code. Any real‑world effects depend on what each repealed section used to do.

CIDs can take needed rights of way

A CID may use eminent domain to get a right‑of‑way across state or public land when needed for a project. This can help build roads, pipes, or other improvements. It also limits public landholders’ control when a right‑of‑way is necessary.

Sponsors & Cosponsors

Sponsor

  • Urban Affairs Committee

    Affiliation unavailable

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 717 • No: 71

legislature vote • 4/10/2026

Final Reading

Yes: 48 • No: 1

legislature vote • 4/7/2026

Vote

Yes: 25 • No: 1 • Other: 23

legislature vote • 4/7/2026

Vote

Yes: 41 • No: 2 • Other: 6

legislature vote • 4/7/2026

Vote

Yes: 21 • No: 18 • Other: 10

legislature vote • 4/7/2026

Vote

Yes: 25 • No: 1 • Other: 23

legislature vote • 4/7/2026

Vote

Yes: 44 • No: 0 • Other: 5

legislature vote • 4/7/2026

Vote

Yes: 44 • No: 0 • Other: 5

legislature vote • 3/20/2026

Vote

Yes: 27 • No: 0 • Other: 22

legislature vote • 3/20/2026

Vote

Yes: 15 • No: 15 • Other: 19

legislature vote • 3/20/2026

Vote

Yes: 32 • No: 0 • Other: 17

legislature vote • 3/20/2026

Vote

Yes: 35 • No: 0 • Other: 14

legislature vote • 3/20/2026

Vote

Yes: 38 • No: 0 • Other: 11

legislature vote • 3/20/2026

Vote

Yes: 15 • No: 15 • Other: 19

legislature vote • Unknown

Vote

Yes: 25 • No: 1 • Other: 23

legislature vote • Unknown

Vote

Yes: 38 • No: 0 • Other: 11

legislature vote • Unknown

Vote

Yes: 44 • No: 0 • Other: 5

legislature vote • Unknown

Vote

Yes: 35 • No: 0 • Other: 14

legislature vote • Unknown

Vote

Yes: 27 • No: 0 • Other: 22

legislature vote • Unknown

Vote

Yes: 15 • No: 15 • Other: 19

legislature vote • Unknown

Vote

Yes: 38 • No: 0 • Other: 11

legislature vote • Unknown

Vote

Yes: 44 • No: 0 • Other: 5

legislature vote • Unknown

Vote

Yes: 41 • No: 2 • Other: 6

Actions Timeline

  1. Provisions/portions of LB1152 amended into LB1114 by AM2913

    4/17/2026legislature

  2. Provisions/portions of LB1130 amended into LB1114 by AM2360

    4/17/2026legislature

  3. Provisions/portions of LB1129 amended into LB1114 by AM2493

    4/17/2026legislature

  4. Provisions/portions of LB981 amended into LB1114 by AM2633

    4/17/2026legislature

  5. Provisions/portions of LB981 amended into LB1114 by AM2360

    4/17/2026legislature

  6. Provisions/portions of LB976 amended into LB1114 by AM2360

    4/17/2026legislature

  7. Provisions/portions of LB915 amended into LB1114 by AM2360

    4/17/2026legislature

  8. Provisions/portions of LB850 amended into LB1114 by AM2360

    4/17/2026legislature

  9. Presented to Governor on April 10, 2026

    4/17/2026legislature

  10. Approved by Governor on April 16, 2026

    4/16/2026legislature

  11. President/Speaker signed

    4/10/2026legislature

  12. Passed on Final Reading with Emergency Clause 48-1-0

    4/10/2026legislature

  13. Dispensing of reading at large approved

    4/10/2026legislature

  14. Enrollment and Review ST91 recorded

    4/8/2026legislature

  15. Enrollment and Review ST91 filed

    4/8/2026legislature

  16. Placed on Final Reading with ST91

    4/8/2026legislature

  17. Advanced to Enrollment and Review for Engrossment

    4/7/2026legislature

  18. McKinney FA1145 withdrawn

    4/7/2026legislature

  19. Ballard AM2913 adopted

    4/7/2026legislature

  20. McKinney AM2838 adopted

    4/7/2026legislature

  21. McKinney FA1178 adopted

    4/7/2026legislature

  22. McKinney FA1178 to AM2838 filed

    4/7/2026legislature

  23. McKinney AM2838 reconsidered

    4/7/2026legislature

  24. McKinney MO565 prevailed

    4/7/2026legislature

  25. McKinney MO565 Reconsider the vote taken on AM2838 filed

    4/7/2026legislature

Bill Text

  • Introduced

    1/16/2026

    PDF

  • Enrolled / Slip Law

    PDF

  • Final / Enacted

    PDF

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