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NebraskaLB288109th Legislature 1st and 2nd SessionslegislatureWALLET

Change provisions of the Property Assessed Clean Energy Act, the Community Development Law, the Nebraska Affordable Housing Act, and the Middle Income Workforce Housing Investment Act

Sponsored By: Urban Affairs Committee

Signed by Governor

Urban Affairs Committee

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Bill Overview

Analyzed Economic Effects

6 provisions identified: 1 benefits, 0 costs, 5 mixed.

Trust Fund pays faster, enforces clawbacks

Beginning July 1, 2026, Affordable Housing Trust Fund awards pay 80% of eligible development costs at approval and 20% at project completion. Recipients must file quarterly cost schedules within 30 days after each quarter and provide proof if asked. The department recaptures unspent funds after the award period and also takes back a share equal to any part of the agreed project not built. If Trust Fund dollars helped a buyer purchase a home, that help is repaid from the seller’s net proceeds when the home is sold.

Blight rules tie to affordable housing share

Affordable housing now includes workforce housing, homes for people under 150% of county median income, and homes under federal section 42. An area can be declared blighted if less than 20% of its housing is affordable. If a tax‑division project adds housing there, the city may approve it only if at least 30% of homes will be affordable after completion. Redevelopment projects can include building affordable housing. The law also removes an automatic trigger that forced cities to label areas as extremely blighted just for planned workforce housing.

Simpler energy code reviews for funded housing

The 2018 energy code applies to new state‑funded buildings built after July 1, 2020, except for certain Trust Fund projects named in this law. If a city or county already reviewed plans under a local code that includes the 2018 energy code, the state does not re‑review them. The funding agency must verify the building as built meets or exceeds the code. For Trust Fund‑funded new construction and rental conversions, the department cannot require 2018 energy code compliance or state plan approval.

Workforce Housing Fund sources and sunset rules

The workforce housing fund can take money from the Legislature, grants, private donations, and other sources. The department creates a subaccount to support Economic Recovery Act housing and land‑parcel prep. If a grantee does not start a qualified activity within 24 months, it must return the grant to the department for the General Fund. If a nonprofit stops administering a fund, unallocated grants return to the workforce housing fund before July 1, 2029; on or after that date they go to the department for transfer to the General Fund. Starting July 1, 2029, any money still in the workforce housing fund moves to the General Fund.

Workforce housing grants: lower match, stricter rules

Grants are competitive through FY 2026‑27 and capped at $10 million per nonprofit over two years. Matching funds drop to at least 25% for grants awarded on or after July 19, 2024 (50% before that date). A prior grantee must have spent at least 50% of earlier awards to get more funds. Applicants must identify land before filing for new‑construction grants. The program now includes rent‑to‑own and sets workforce‑housing values for new builds between $125,000 and $330,000. It also allows new tools like homeownership reserve accounts and purchase options. Annual reports and audits are required, and a late report by February 15 can draw a civil penalty up to $5,000.

Clean energy assessments add resiliency and new builds

Cities can now use property‑linked clean energy financing for grid resiliency, like backup power, batteries, and smart‑grid tech. The financing can also cover efficiency work for buildings that will be built on the property. Local ordinances must verify that funded systems are installed correctly and working. These changes make it easier to finance upgrades that can lower utility bills and improve reliability.

Sponsors & Cosponsors

Sponsor

  • Urban Affairs Committee

    Affiliation unavailable

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 403 • No: 6

legislature vote • 5/28/2025

Final Reading

Yes: 43 • No: 6

legislature vote • 5/1/2025

Vote

Yes: 38 • No: 0 • Other: 11

legislature vote • 4/23/2025

Vote

Yes: 41 • No: 0 • Other: 8

legislature vote • 4/23/2025

Vote

Yes: 40 • No: 0 • Other: 9

legislature vote • 4/23/2025

Vote

Yes: 40 • No: 0 • Other: 9

legislature vote • 4/23/2025

Vote

Yes: 42 • No: 0 • Other: 7

legislature vote • Unknown

Vote

Yes: 41 • No: 0 • Other: 8

legislature vote • Unknown

Vote

Yes: 38 • No: 0 • Other: 11

legislature vote • Unknown

Vote

Yes: 40 • No: 0 • Other: 9

legislature vote • Unknown

Vote

Yes: 40 • No: 0 • Other: 9

Actions Timeline

  1. Provisions/portions of LB626 amended into LB288 by AM733

    6/6/2025legislature

  2. Provisions/portions of LB622 amended into LB288 by AM968

    6/6/2025legislature

  3. Provisions/portions of LB531 amended into LB288 by AM1181

    6/6/2025legislature

  4. Provisions/portions of LB450 amended into LB288 by AM733

    6/6/2025legislature

  5. Approved by Governor on May 30, 2025

    5/30/2025legislature

  6. Presented to Governor on May 28, 2025

    5/28/2025legislature

  7. President/Speaker signed

    5/28/2025legislature

  8. Passed on Final Reading 43-6*-0

    5/28/2025legislature

  9. Dispensing of reading at large approved

    5/28/2025legislature

  10. Enrollment and Review ST30 recorded

    5/6/2025legislature

  11. Enrollment and Review ST30 filed

    5/6/2025legislature

  12. Placed on Final Reading with ST30

    5/6/2025legislature

  13. Advanced to Enrollment and Review for Engrossment

    5/1/2025legislature

  14. Kauth AM1181 adopted

    5/1/2025legislature

  15. Kauth AM1181 filed

    5/1/2025legislature

  16. Enrollment and Review ER55 adopted

    5/1/2025legislature

  17. Enrollment and Review ER55 filed

    4/29/2025legislature

  18. Placed on Select File with ER55

    4/29/2025legislature

  19. Advanced to Enrollment and Review Initial

    4/23/2025legislature

  20. Urban Affairs AM733 adopted

    4/23/2025legislature

  21. Dover AM968 adopted

    4/23/2025legislature

  22. McKinney AM1074 adopted

    4/23/2025legislature

  23. McKinney AM1052 withdrawn

    4/23/2025legislature

  24. McKinney AM1074 to AM733 filed

    4/15/2025legislature

  25. McKinney AM1052 to AM733 filed

    4/14/2025legislature

Bill Text

  • Introduced

    1/15/2025

    PDF

  • Enrolled / Slip Law

    PDF

  • Final / Enacted

    PDF

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