Urban Affairs Committee
February 4, 2025
Committee Chair: Sen. Terrell McKinney | Bills Heard: 5 | Full Transcript (PDF)
LB324: Change procedures for creation or modification of business improvement districts
Introduced by: Sen. Mike Moser | Testimony: 1 proponents, 1 opponents, 0 neutral | Read bill text (PDF)
Sen. Moser seeks to eliminate 'passive yes' votes in business improvement district creation. The bill would require BIDs to receive more affirmative votes than objections based only on returned postcards, eliminating the current practice of counting non-responses as yes votes.
Why it matters: In a Columbus BID case, 61 property owners objected while only 34 supported it, yet the district was created because 136 non-responses were counted as yes votes. Moser argues this violates democratic principles; the League of Municipalities counters that this is a notice-and-objection process, not a vote, and that no other states use this approach.
What they're saying: - Proponents: "A vote is a vote. Non-votes shouldn't count at all," said business owner Paul Wunderlich. Moser argued the burden should be on BID proponents to affirmatively sell their projects. - Opponents: Lynn Rex (League of Municipalities) emphasized this is a right of remonstrance, not a vote, and that the current weighted system based on property value already protects stakeholder interests.
What's next: No vote was taken. The bill remains in committee.
Committee sentiment: Skeptical: Sen. John Cavanaugh Unclear: Sen. Victor Rountree, Sen. Stan Clouse
Sentiment estimated from questions and comments — not stated positions.
LB441: Allow virtual inspections for residential building permits and establish inspection record database
Introduced by: Sen. Ashley Spivey | Testimony: 3 proponents, 2 opponents, 0 neutral | Read bill text (PDF)
Sen. Spivey revives bill to modernize building inspections through virtual technology and public records. LB441 would allow virtual inspections for residential buildings under three stories and 10,000 square feet, define authorized inspectors, and create a publicly accessible database of inspection records including deviations from code.
Why it matters: Nebraska faces inspector shortages and construction delays. Other states have successfully used virtual inspections. However, the bill's public records requirement has sparked fierce opposition from builders who fear liability and reputational damage from failed inspections that were later corrected.
What they're saying: - Proponents: Jon Nebel (electrical workers) said virtual inspections increase efficiency and public records help track which codes work. Sen. Rountree noted federal agencies accepted virtual inspections during floods and COVID. - Opponents: Jereme Montgomery (builders) argued public records of failed inspections unfairly stigmatize contractors even when issues are corrected. Korby Gilbertson said the bill conflates efficiency improvements with unnecessary record-keeping.
By the numbers: 3 proponents testified in person; 2 opponents testified in person. Online: 3 proponents, 0 opponents, 5 neutral.
What's next: No vote was taken. Sen. Spivey indicated willingness to clarify language around the personnel list requirement, which was a key point of confusion.
Committee sentiment: Supportive: Sen. John Cavanaugh, Sen. Terrell McKinney Skeptical: Sen. Bob Andersen Unclear: Sen. Stan Clouse
Sentiment estimated from questions and comments — not stated positions.
LB288: Expand Middle Income Workforce Housing Fund to include rent-to-own housing
Introduced by: Sen. Terrell McKinney | Testimony: 5 proponents, 0 opponents, 1 neutral | Read bill text (PDF)
Sen. McKinney seeks to open urban housing fund to rent-to-own projects to compete with out-of-state investors. LB288 would allow the Middle Income Workforce Housing Fund to finance rent-to-own housing (up to 10 units) and increase the maximum construction cost to $350,000, mirroring flexibility already available in the Rural Workforce Housing Fund.
Why it matters: Out-of-state investors like VineBrook Homes (2.4 billion in assets) are buying up rental properties in Omaha, extracting wealth from the community. Local developers say rent-to-own would let them compete while keeping money circulating locally. North Omaha has only 39% homeownership versus 66% statewide.
What they're saying: - Proponents: Buey Ray Tut (Spark) said the fund has created 21 units but emerging developers need rent-to-own to compete. Jewel Rodgers, the new state poet, testified that rent-to-own would let her build generational wealth on five properties while providing affordable housing. - Opponents: Tracie McPherson (Habitat for Humanity) said rent-to-own has a poor track record (2 successes in 40 years) and north Omaha needs homeownership, not rentals. She offered to mentor developers on what works.
By the numbers: 5 proponents testified; 0 opponents; 1 neutral. Online: 4 proponents, 0 opponents, 2 neutral.
What's next: No vote was taken. Sen. McKinney indicated willingness to clarify rent-to-own terms in the bill language before advancing it.
Committee sentiment: Supportive: Sen. John Cavanaugh, Sen. Victor Rountree, Sen. Dan Quick, Sen. Terrell McKinney Skeptical: Sen. Bob Andersen
Sentiment estimated from questions and comments — not stated positions.
LB291: Create Aid to Municipalities Act providing $15 million in annual grants for infrastructure
Introduced by: Sen. Terrell McKinney | Testimony: 2 proponents, 0 opponents, 0 neutral | Read bill text (PDF)
Sen. McKinney revives Aid to Municipalities program eliminated in 2011 budget crisis. LB291 would provide $15 million annually in grants (up to $5 million per project) for municipal infrastructure including water, sewer, roads, and convention centers. The original program distributed $8-10 million annually from 1982-2011.
Why it matters: Municipalities lost $250 million in annual tax revenue when the state exempted livestock, farm equipment, and business inventory in 1977. The promised replacement revenue never materialized. Half of Nebraska's 528 municipalities are now at maximum levy limits and struggling to fund basic infrastructure.
What they're saying: - Proponents: Lynn Rex (League of Municipalities) detailed how tax exemptions promised in 1977 were never fully replaced, leaving local governments $250 million short annually. Eric Gerrard (Lincoln) said infrastructure is a top taxpayer priority. - Concerns: Sen. Clouse worried that $5 million per project means only three grants per year, leaving smaller villages out. Sen. Andersen questioned why convention centers are included in an infrastructure bill.
By the numbers: Online testimony: 5 proponents, 5 opponents, 1 neutral.
What's next: No vote was taken. Sen. McKinney acknowledged the state's budget crisis but suggested the bill could be revisited next year if forecasts improve.
Committee sentiment: Skeptical: Sen. Bob Andersen, Sen. Stan Clouse Unclear: Sen. Sorrentino
Sentiment estimated from questions and comments — not stated positions.
LB292: Provide $500,000 grant to study prefabricated housing
Introduced by: Sen. Terrell McKinney | Testimony: 0 proponents, 0 opponents, 0 neutral | Read bill text (PDF)
Sen. McKinney seeks $500,000 to study prefabricated housing as housing crisis solution. LB292 would fund a deeper dive into the viability of prefab housing, building on interim study LR441 conducted last summer. The study would examine incentives for buyers, renters, manufacturers, and developers.
Why it matters: During LR441 hearings, testimony highlighted how Colorado has used modular housing to address its housing crisis. Some Nebraska companies build modular homes but sell primarily out of state. A dedicated study could clarify whether prefab is viable for Nebraska.
What they're saying: Sen. McKinney said the study would "demystify" prefab housing and provide "a definitive answer on what can be done and what cannot be done." The $500,000 comes from interest accruals, not the principal fund.
Concerns: Sen. Andersen questioned the trade-off between funding a study versus funding entrepreneurs directly, noting that money can only be spent once. He also asked whether the study's recommendation for incentives means providing them or just recommending them.
By the numbers: Online testimony: 0 proponents, 5 opponents, 1 neutral.
What's next: No vote was taken. Sen. McKinney waived closing remarks.
Committee sentiment: Skeptical: Sen. Bob Andersen Unclear: Sen. Sorrentino
Sentiment estimated from questions and comments — not stated positions.
Session Notes
Committee Chair Sen. Terrell McKinney opened the hearing with procedural instructions. The committee heard five bills total. For LB324, online comments showed 0 proponents and 2 opponents. For LB441, online comments showed 3 proponents, 0 opponents, and 5 neutral. For LB288, online comments showed 4 proponents, 0 opponents, and 2 neutral. For LB291, online comments showed 5 proponents, 5 opponents, and 1 neutral. For LB292, online comments showed 0 proponents, 5 opponents, and 1 neutral. Committee members present included Sen. John Cavanaugh (District 9), Sen. Dan Quick (District 35), Sen. Victor Rountree (District 3), Sen. Stan Clouse (District 37), and Sen. Bob Andersen (District 49). Legal counsel Elsa Knight and committee clerk Sally Schultz assisted. Pages were Emma Jones (UNL senior, political science) and Arnav Rishi (UNL junior, political science).
Generated by NE Wire Service | Source: Nebraska Legislature Transcribers Office This is an AI-generated summary. Verify all claims against the official transcript.