Housing assistance for abuse survivors proposed

A tax increase on Nebraska real estate transactions would be used to meet the immediate housing needs of survivors of sex trafficking and domestic violence under a bill heard Jan. 22 by the Revenue Committee.

Currently, counties collect a documentary stamp tax on the transfer of real estate at a rate of $2.25 for each $1,000 in value. Counties remit all but 50 cents of each $2.25 collected to the state treasurer, who credits the proceeds to affordable housing and other programs.

LB78, introduced by Lincoln Sen. Eliot Bostar, would increase the rate to $2.32 for each $1,000 in value and direct the additional proceeds to a new fund administered by the state Department of Health and Human Services.

The department would use the funding to provide housing-related assistance, including rental and utility payments, for survivors of domestic violence and sex trafficking based on a formula it would create. The department could contract with qualifying nonprofit organizations to provide the assistance.

Bostar said the bill would create a stable, dedicated funding source to meet the immediate housing needs of an “incredibly vulnerable” population that, without assistance, might become homeless or be forced to remain in a dangerous situation.

“A lack of housing and resources for housing assistance make it more difficult for survivors to later secure stable employment, ensure the safety of their children and address their own emotional well-being,” he said.

The state Department of Revenue estimates that the 7-cent rate increase would generate $830,000 for the program’s cash fund in fiscal year 2025-26, $1.1 million in FY2026-27 and $1.2 million in FY2027-28.

Bostar said LB78 would allow the department to use any leftover funds to acquire or build housing for domestic violence and sex trafficking survivors.

Testifying in support was Jo Bair, executive director of enCourage Advocacy Center, which provides support to those who experience domestic violence, sexual assault, human trafficking and stalking in south central Nebraska. She said most victims of domestic violence are subjected to economic abuse and intentionally isolated from family members, making it “all but impossible” for them to secure safe housing on their own.

Although requests for emergency shelter are increasing, Bair said, decreases in federal funding have forced providers to shelter only those with the highest risk of being killed by their abuser if they cannot flee.

“This bill would offer survivors the stability they need to rebuild their lives, regain their independence and break free from cycles of abuse,” she said.

Randi Ezeafulukwe of Lincoln also testified in support, saying she became homeless after fleeing from an economically abusive partner. Without housing and other assistance from various community programs, Ezeafulukwe said, she would have remained homeless for much longer and might have had to return to the relationship out of financial necessity.

She said LB78 would help others who choose to leave an abusive relationship.

Testifying in opposition to the bill was Korby Gilbertson on behalf of the Nebraska Realtors Association and groups representing Lincoln and Omaha home builders. She said LB78 is one of several bills introduced this session that would raise the documentary stamp tax to pay for various programs rather than using state general funds.

“We would recommend general funds be looked at for this type of issue,” Gilbertson said. “If it is that important to the state of Nebraska, the state of Nebraska should be able to step up and do it, not just … shift the tax to people that are trying to sell their homes.”

The committee took no immediate action on the bill.