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

7 provisions identified: 1 benefits, 1 costs, 5 mixed.

Workforce housing grants and easier match

The state runs a competitive workforce housing grant program and a dedicated investment fund through FY 2026‑27. No nonprofit can receive more than $10,000,000 in grants over any two‑year period. Matching is at least 50% for awards before July 19, 2024 and at least 25% for awards on or after July 19, 2024. Beginning July 1, 2026, Affordable Housing Trust Fund grants pay 80% of eligible development costs at approval and 20% at completion; admin, management, lead‑test, and technical‑assistance costs do not count. Construction cost caps start at $275,000 for owner‑occupied units and $200,000 per rental unit and are updated each year using the Producer Price Index.

More projects count as affordable housing

Affordable housing now includes workforce housing, homes for households earning up to 150% of the county median income, and Section 42 projects. This lets more projects and households qualify for community development support. You compare your income to your county’s median to check the 150% threshold.

Stronger oversight for housing grants

Starting July 1, 2026, grant recipients must file a quarterly schedule of uses within 30 days after each quarter, and they can be disqualified for up to 24 months for failing to report. The state can recapture money not used for eligible costs or on time, including a proportional recapture if a project is not finished. If a recipient aids a homebuyer, the recipient must recapture that aid from sale proceeds and return it to the fund. If no qualified activity starts within 24 months of the first disbursement, the money must be returned. Nonprofits must file an annual report by February 15 or face a civil penalty up to $5,000. Unused funds return to program accounts before July 1, 2029; on or after that date, remaining balances move to the General Fund.

More PACE upgrades with new limits

Cities can finance more clean‑energy work on private property, including EV‑charging wiring and grid resiliency like generators or solar plus batteries. Your assessment term cannot be longer than the project’s weighted average useful life. For homes, the interest rate must be fixed and use a fixed payment schedule. If a financed item is not permanently attached, it must transfer with the property, and the buyer must be told they take over payments. Cities must verify installations work and follow FHA and FHFA guidance for single‑family homes. A new cap limits city‑financed efficiency items to 25% of the total project cost.

Energy code checks lifted for funded projects

Beginning October 1, 2025, projects that receive Affordable Housing Trust Fund money do not have to meet the 2018 energy code in section 72‑805 or get plan approval from the Department of Environment and Energy. This removes review steps and can lower builder costs. It may also reduce energy performance checks that protect future tenants and buyers.

Blight designations last at least 25 years

When a city declares an area extremely blighted, that designation remains in place for at least 25 years unless removed earlier by law. This sets long timelines for redevelopment decisions in those neighborhoods.

TIF tied to adding affordable homes

An area is counted as substandard when less than 20% of its housing is affordable. In those areas, a city can approve tax‑increment financing only if the project builds homes and, when done, at least 30% of the area’s homes are affordable. This steers TIF toward projects that add affordable housing.

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 4/24/2026

Vote

Yes: 40 • No: 0 • Other: 9

legislature vote 4/24/2026

Vote

Yes: 38 • No: 0 • Other: 11

legislature vote 4/24/2026

Vote

Yes: 41 • No: 0 • Other: 8

legislature vote 4/24/2026

Vote

Yes: 40 • No: 0 • Other: 9

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: 42 • No: 0 • Other: 7

legislature vote 4/23/2025

Vote

Yes: 40 • No: 0 • Other: 9

Actions Timeline

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

    6/6/2025legislature
  2. Provisions/portions of LB531 amended into LB288 by AM1181

    6/6/2025legislature
  3. Provisions/portions of LB622 amended into LB288 by AM968

    6/6/2025legislature
  4. Provisions/portions of LB626 amended into LB288 by AM733

    6/6/2025legislature
  5. Approved by Governor on May 30, 2025

    6/2/2025legislature
  6. Dispensing of reading at large approved

    5/28/2025legislature
  7. Passed on Final Reading 43-6*-0

    5/28/2025legislature
  8. President/Speaker signed

    5/28/2025legislature
  9. Presented to Governor on May 28, 2025

    5/28/2025legislature
  10. Placed on Final Reading with ST30

    5/6/2025legislature
  11. Enrollment and Review ST30 filed

    5/6/2025legislature
  12. Enrollment and Review ST30 recorded

    5/6/2025legislature
  13. Enrollment and Review ER55 adopted

    5/1/2025legislature
  14. Kauth AM1181 filed

    5/1/2025legislature
  15. Kauth AM1181 adopted

    5/1/2025legislature
  16. Advanced to Enrollment and Review for Engrossment

    5/1/2025legislature
  17. Placed on Select File with ER55

    4/29/2025legislature
  18. Enrollment and Review ER55 filed

    4/29/2025legislature
  19. McKinney AM1052 withdrawn

    4/23/2025legislature
  20. McKinney AM1074 adopted

    4/23/2025legislature
  21. Dover AM968 adopted

    4/23/2025legislature
  22. Urban Affairs AM733 adopted

    4/23/2025legislature
  23. Advanced to Enrollment and Review Initial

    4/23/2025legislature
  24. McKinney AM1074 to AM733 filed

    4/15/2025legislature
  25. McKinney AM1052 to AM733 filed

    4/14/2025legislature

Bill Text

  • Introduced

    6/6/2025

  • Enrolled / Slip Law

  • Final / Enacted

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