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NebraskaLB288A109th Legislature 1st and 2nd SessionslegislatureWALLET

Appropriation Bill

Sponsored By: Terrell McKinney

Signed by Governor

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Bill Overview

Analyzed Economic Effects

4 provisions identified: 1 benefits, 0 costs, 3 mixed.

More affordable homes in blighted areas

If a redevelopment project uses division of taxes in an area declared blighted for having less than 20% affordable housing, at least 30% of the homes after completion must be affordable. An “extremely blighted” area designation now lasts at least 25 years from the resolution date unless removed earlier, supporting long‑term redevelopment planning.

Home energy upgrades via property assessments

Cities, villages, and counties can set up clean energy assessment districts after a public hearing with at least 10 days’ notice. You can finance energy projects like EV wiring, backup power, batteries, and solar through an assessment on your property. Financing for energy‑efficiency items cannot exceed 25% of the total project cost. For homes, interest must be fixed, payments follow a fixed schedule, and the term cannot exceed the project’s weighted‑average useful life. Sellers must tell buyers that the buyer takes over the annual assessment, and the city verifies systems work. Single‑family programs must follow FHA and FHFA directives issued on or after January 1, 2016. Counties cannot create districts that include land inside a city or village or its extraterritorial zoning area.

Affordable Housing Trust Fund payments and rules

Beginning October 1, 2025, Trust Fund grantees must file a quarterly, itemized use‑of‑funds schedule within 30 days after each quarter; the department can demand source documents and may disqualify non‑filers for up to 24 months. Starting July 1, 2026, the department pays 80% of eligible housing development costs at approval and 20% at completion; admin costs, management fees, lead‑paint testing, and technical assistance do not count as eligible costs. The department can take back money not used on eligible costs within the performance period and a proportional share if promised homes are not completed. Homebuyers who received purchase help must repay from net sale proceeds when they sell; recaptured funds return to the Trust Fund. The department must publish detailed annual Trust Fund results and cannot require certain energy‑code reviews or Department of Environment and Energy plan approvals for Trust Fund‑funded projects.

Workforce housing grants and oversight rules

The law creates the Middle Income Workforce Housing Investment Fund to award competitive grants through fiscal year 2026–27. No nonprofit can receive more than $10,000,000 over any two‑year period. Grantees must start a qualified activity within 24 months or return the grant. Beginning July 1, 2029, any money left in the fund transfers to the General Fund; unallocated grant funds must be returned before that date and then are transferred after that date. Nonprofits must file an annual report by February 15 or face a civil penalty up to $5,000, and they cannot get another grant until they have spent at least 50% of a prior grant.

Sponsors & Cosponsors

Sponsor

  • Terrell McKinney

    legislature

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 83 • No: 5

legislature vote • 5/28/2025

Final Reading

Yes: 44 • No: 5

legislature vote • 5/8/2025

Vote

Yes: 39 • No: 0 • Other: 10

Actions Timeline

  1. Approved by Governor on May 30, 2025

    6/2/2025legislature

  2. Passed on Final Reading 44-5*-0

    5/28/2025legislature

  3. President/Speaker signed

    5/28/2025legislature

  4. Presented to Governor on May 28, 2025

    5/28/2025legislature

  5. Placed on Final Reading

    5/19/2025legislature

  6. Advanced to Enrollment and Review for Engrossment

    5/14/2025legislature

  7. Placed on Select File

    5/12/2025legislature

  8. Advanced to Enrollment and Review Initial

    5/8/2025legislature

  9. Date of introduction

    5/6/2025legislature

  10. Placed on General File

    5/6/2025legislature

Bill Text

  • Introduced

    6/2/2025

    PDF

  • Enrolled / Slip Law

    PDF

  • Final / Enacted

    PDF

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