{"id":41170,"date":"2026-05-15T08:06:59","date_gmt":"2026-05-15T14:06:59","guid":{"rendered":"https:\/\/update.legislature.ne.gov\/?p=41170"},"modified":"2026-05-15T08:06:59","modified_gmt":"2026-05-15T14:06:59","slug":"session-review-urban-affairs-14","status":"publish","type":"post","link":"https:\/\/update.legislature.ne.gov\/?p=41170","title":{"rendered":"Session Review: Urban Affairs"},"content":{"rendered":"<p>The Urban Affairs Committee considered measures this session that update land bank membership and reporting requirements, authorize the formation of community improvement districts and allow for virtual inspections of certain residential buildings.  <\/p>\n<p><strong>City development and operations<\/strong><\/p>\n<p>Previously, first and second class cities and villages were required to approve and advertise for bids for certain public works contracts of over $30,000. LB797, introduced by the committee and passed on a vote of 49-0, increases the minimum amount to $90,000. <\/p>\n<p>The bill also raises the minimum amounts at which municipal electric utilities are allowed to enter into certain contracts without advertising for bids. Minimum contract amounts increase depending on a utility\u2019s gross annual revenue from retail sales.<\/p>\n<p>LB797 creates additional tiers for utilities with revenue in excess of $20 million, $30 million and $75 million. <\/p>\n<p>Under LB798, also introduced by the committee and passed 49-0, planning commissions for second class cities and villages may have three regular members. Previously, they could have only five, seven or nine regular members.  <\/p>\n<p>The bill also allows second class cities that elect city council members by ward to elect some members on an at-large basis if the method is first approved by voters at a general election. At least two members may be elected on an at-large basis, and no more than one-half of the city council may be at-large members.<\/p>\n<p>The committee\u2019s LB1114 revises eligibility provisions that allow for the expedited review of community redevelopment plans under Nebraska\u2019s Community Development Law.  <\/p>\n<p>As amended, the bill includes provisions of seven other measures considered by the committee this session, including LB850, sponsored by Omaha Sen. John Cavanaugh.  <\/p>\n<p>His measure allows metropolitan and primary class cities to use an economic development program for the purpose of building or rehabilitating affordable housing, workforce housing or housing for persons of low or moderate income under the Local Option Municipal Economic Development Act. <\/p>\n<p>Previously, only first or second class cities and villages were allowed to create a program for those purposes. Lincoln is Nebraska\u2019s only primary class city and Omaha is the only metropolitan class city.<\/p>\n<p>The amended provisions of LB915, introduced by Sen. Loren Lippincott of Central City, update the Municipal Inland Port Authority Act. They increase the number of inland port districts that may be designated from five to eight and revise eligibility requirements for counties. <\/p>\n<p>The provisions of LB976, sponsored by Omaha Sen. Bob Andersen, update requirements for sanitary and improvement district elections.<\/p>\n<p>The measure also requires an SID board or administrator to let certain contracts of more than $50,000 to the lowest responsible bidder, an increase from $20,000.  <\/p>\n<p>The amended provisions of the committee\u2019s LB981 require a housing agency in a metropolitan class city to submit an annual report to the committee. The report must include details on pest control management activities, as well as evictions and complaints filed during the reporting period, among other information.<\/p>\n<p>In addition to that requirement, the measure allows a metropolitan class city to regulate any housing agency in the city by ordinance. Regulations may provide for code enforcement, complaint-based inspections and monthly updates to the city council that include information about pest control issues and any mitigation efforts completed by the housing agency. <\/p>\n<p>The provisions of LB1129, introduced by Sen. Robert Dover of Norfolk, allow a city to use tax-increment financing to develop underdeveloped parcels that have been within its extraterritorial zoning jurisdiction for more than 25 years. <\/p>\n<p>The amended provisions of LB1130, sponsored by North Platte Sen. Mike Jacobson, create the Community Improvement District Act. The measure allows property owners to propose the formation of a community improvement district within a city or village for the construction, maintenance and repair of public infrastructure.<\/p>\n<p>A city or village must pass an ordinance approving the formation of a CID, which may levy taxes and special assessments on property within the district and use those funds to pay off outstanding bonds.<\/p>\n<p>The amended provisions of LB1152, introduced by Sen. Beau Ballard of Lincoln, create the New Taxpayer Recruitment Grant Act.<\/p>\n<p>The act authorizes the state Department of Economic Development to award grants to cities, Indian tribes or certain nonprofit organizations, which may use the funds for taxpayer recruitment programs that incentivize households to relocate to Nebraska.<\/p>\n<p>LB1114 passed on a vote of 48-1 and took effect immediately.<\/p>\n<p>LB1135, sponsored by the committee, modifies land bank membership and reporting requirements under the Nebraska Municipal Land Bank Act.<\/p>\n<p>Voting members of a land bank board previously were required to reside within the municipality that created the land bank. Under the bill, voting members also may reside within three miles of the municipality, but a majority must reside within it.<\/p>\n<p>For land banks created by more than one municipality, voting members must reside within one of those municipalities or within three miles. A majority must reside within the municipality in which the majority of land bank property is located. <\/p>\n<p>LB1135 requires land bank boards to submit reports at least quarterly rather than monthly. It also prohibits a land bank from temporarily holding real property on behalf of a private entity for more than one year, unless the entity has entered into a community benefits agreement with the land bank and local community groups. <\/p>\n<p>The bill includes provisions of six other proposals considered by the committee this session:<br \/>\n\u2022\tLB799, introduced by the committee, which requires a metropolitan class city, counties with a population of more than 500,000 and state agencies to submit annual reports on service contracts above a certain amount that were awarded during the prior year;<br \/>\n\u2022\tLB811, sponsored by Dover, which authorizes all Nebraska municipalities to establish stand-alone land banks, something only primary and metropolitan class cities previously were allowed to do;<br \/>\n\u2022\tLB842, introduced by Bellevue Sen. Victor Rountree, which allows first and second class cities and villages to enter into contracts with private entities for the operation, maintenance, management or enforcement of municipal parking facilities;<br \/>\n\u2022\tLB1163, sponsored by Sen. John Fredrickson of Omaha, which updates how liens against delinquent assessments are recorded under the Nebraska Property Assessed Clean Energy Act;<br \/>\n\u2022\tLB1168, introduced by Fremont Sen. Dave Wordekemper, which allows a city\u2019s redevelopment authority to enter into a contract under which it issues conduit revenue bonds; and<br \/>\n\u2022\tLB1250, sponsored by Sen. Dunixi Guereca of Omaha, which allows primary, first and second class cities and villages to sell or transfer any waterworks, sewer system or water system to an Indian tribe under certain conditions.<\/p>\n<p>LB1135 passed 48-1 and took effect immediately.<\/p>\n<p><strong>Housing <\/strong><\/p>\n<p>Under LB441, introduced last session by Omaha Sen. Ashlei Spivey and passed 47-1, any state agency, county, city or village that requires an inspection as part of a building permit may allow for virtual inspection by an authorized inspector under certain conditions. <\/p>\n<p>The inspection must be of an area of a single-family or two-family residential building that is less than three stories in height and under 10,000 square feet.<\/p>\n<p>The bill requires the individual requesting or holding the permit to provide the name of the licensed or registered contractor who is completing the work to be virtually inspected.<\/p>\n<p>Gov. Jim Pillen vetoed a proposal that would have measured the number of accessible housing units in Nebraska and added accessibility requirements to a state affordable housing program.<\/p>\n<p>Under the Municipal Density and Missing Middle Housing Act, metropolitan, primary and first class cities with a population of at least 20,000 are required to submit biennial reports to the committee. The reports provide details on cities\u2019 efforts to address the availability of and incentives for affordable housing.<\/p>\n<p>Under LB839, sponsored by Rountree, cities also would have been required to report the number of accessible multifamily housing units within city limits.<\/p>\n<p>The bill includes provisions of two other measures introduced by Rountree this session. <\/p>\n<p>The amended provisions of LB840 would have prohibited the state Department of Economic Development from approving a multifamily rental unit project for assistance from the state Affordable Housing Trust Fund unless at least 5% of the project\u2019s dwelling units are accessible for people with mobility impairments, and at least 2% are accessible for those with hearing or vision impairments.  <\/p>\n<p>Under the amended provisions of LB1041, the biennial reports also would have included details on cities\u2019 efforts to expand the use of accessory dwelling units, any obstacles to the construction of additional ADUs and areas where they are allowed by right.<\/p>\n<p>Reports also would have had to include recommended actions the state could take to assist cities in the construction of affordable housing.<\/p>\n<p>LB839 passed on a vote of 34-15.<\/p>\n<p>In his veto letter, the governor said requiring housing developers to build an \u201carbitrary\u201d percentage of accessible dwelling units would force them to forgo state assistance or spend additional funds to build units that might go unrented or be rented to those without physical impairments. <\/p>\n<p>An attempt to override the veto failed on a vote of 19-28. Thirty votes were needed.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Urban Affairs Committee considered measures this session that update land bank membership and reporting requirements, authorize the formation of community improvement districts and allow for virtual inspections of certain residential buildings. <\/p>\n","protected":false},"author":1,"featured_media":41118,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"colormag_page_container_layout":"default_layout","colormag_page_sidebar_layout":"default_layout","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[322,23],"tags":[269],"class_list":["post-41170","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-session-review-2026","category-urban-affairs","tag-sen-john-cavanaugh"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/update.legislature.ne.gov\/wp-content\/uploads\/2026\/04\/UrbAff_McKinney.jpg","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/update.legislature.ne.gov\/index.php?rest_route=\/wp\/v2\/posts\/41170","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/update.legislature.ne.gov\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/update.legislature.ne.gov\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/update.legislature.ne.gov\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/update.legislature.ne.gov\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=41170"}],"version-history":[{"count":1,"href":"https:\/\/update.legislature.ne.gov\/index.php?rest_route=\/wp\/v2\/posts\/41170\/revisions"}],"predecessor-version":[{"id":41171,"href":"https:\/\/update.legislature.ne.gov\/index.php?rest_route=\/wp\/v2\/posts\/41170\/revisions\/41171"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/update.legislature.ne.gov\/index.php?rest_route=\/wp\/v2\/media\/41118"}],"wp:attachment":[{"href":"https:\/\/update.legislature.ne.gov\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=41170"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/update.legislature.ne.gov\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=41170"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/update.legislature.ne.gov\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=41170"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}