Urban Affairs Committee
February 25, 2025
Committee Chair: Sen. Terrell McKinney | Bills Heard: 4 | Full Transcript (PDF)
LB321: Clarify assessments for properties outside sanitary and improvement district boundaries
Introduced by: Sen. Sanders (presented by Rachel Hause, legislative aide) | Testimony: 2 proponents, 0 opponents, 0 neutral | Read bill text (PDF)
A Nebraska Supreme Court ruling that barred assessments on for-profit entities benefiting from sanitary district improvements is about to be reversed. LB321 clarifies statute 31-752 to restore legislative intent from a 1967 amendment, allowing special assessments on all properties—regardless of tax status—that receive special benefits from public improvements outside district boundaries.
Why it matters: The 2024 Supreme Court decision in SID No. 596 v. THG Development, LLC created an absurd result: churches, schools, and hospitals could be assessed for improvements, but a for-profit landscaping company that benefited from $1.2 million in infrastructure could not. The bill eliminates the word "exempt" from statute to prevent future misinterpretation.
What they're saying: - Proponents: "This is really a clarification statute to just avoid that interpretation that 'exempt' means tax exempt," said attorney Larry Jobeun, who drafted the revisions. The 1967 legislative history clearly shows the intent was to assess all specially benefited properties, not just nonprofits. - Patrick Sullivan noted the bill also addresses a separate 2022 amendment that inadvertently shortened the developer control period for SIDs from eight to six years, disrupting orderly development.
What's next: No vote was taken. The bill advanced without opposition from committee members.
Committee sentiment: Supportive: Sen. Cavanaugh Unclear: Sen. Clouse
Sentiment estimated from questions and comments — not stated positions.
LB614: Allow cities to exempt farm buildings from building codes within extraterritorial jurisdiction
Introduced by: Sen. Bob Andersen | Testimony: 3 proponents, 0 opponents, 0 neutral | Read bill text (PDF)
A Sarpy County farmer's struggle to build a machine shed without city code compliance has sparked legislation to protect agricultural rights within city extraterritorial zones. LB614 allows cities to exempt farm buildings from building codes when located on land meeting the definition of agricultural farmland (20+ acres producing $1,000+ annually).
Why it matters: As cities annex aggressively, farmers find themselves in extraterritorial jurisdictions where they face city regulations despite being on active farmland. A farmer just outside the city line can build freely; one just inside faces full code compliance. The bill addresses this inequity while preserving agriculture as a protected right in Nebraska.
What they're saying: - Sen. Andersen: "LB614 is a common-sense solution for farming and agriculture to coexist within the city's ETJ to plan for its future zoning and infrastructure projects." - Patrick Sullivan supported the concept but flagged a concern: the bill requires board of adjustment approval, whereas county zoning treats farm buildings as an automatic right. He suggested making it automatic rather than discretionary.
By the numbers: Three proponents testified; zero opponents.
What's next: The bill advanced to General File with no recorded opposition.
Committee sentiment: Supportive: Sen. Clouse, Sen. Cavanaugh
Sentiment estimated from questions and comments — not stated positions.
LB626: Expand tax increment financing eligibility for affordable housing
Introduced by: Sen. Robert Dover | Testimony: 6 proponents, 1 opponents, 0 neutral | Read bill text (PDF)
Nebraska's affordable housing crisis—100,000 to 120,000 units short—could be addressed by explicitly allowing tax increment financing for affordable housing, but only if the state guarantees the money actually builds affordable units. LB626 amends the Community Development Law to make affordable housing an eligible TIF use and expands the definition of blighted areas to include those lacking affordable housing.
Why it matters: TIF is one of only two tools municipalities have to reduce housing costs. Currently, communities stretch blighted area definitions to include undeveloped land just to access TIF for affordable housing. The bill eliminates that workaround. It also removes restrictions on workforce housing, allowing communities like Waverly in Lancaster County to use TIF statewide rather than only in rural areas or extremely blighted zones.
What they're saying: - Sen. Dover: "Why don't we just say it's for affordable housing? Because really, that's what it—I mean, I think it's one of the—that would be the number one reason TIF is used for the state today." - Sen. McKinney: "My concern is if we don't say specifically there has to be some affordable housing, there could be some creative ways to use this and say this area doesn't have any affordable housing; we're going to blight it and develop it, but there's never actually affordable housing constructed there." - Emma Craig, NIFA: Nebraska faces a shortage of 100,000-120,000 units; median home prices grew 21.25% while median income grew 1.05% (2020-2023).
By the numbers: Six proponents, one opponent, zero neutral; one online comment in support.
What's next: No vote taken. Sen. Dover indicated he is working on an amendment to adjust the median income threshold. Multiple committee members, including Sen. McKinney and Sen. Rountree, suggested language to ensure affordable housing is actually built in TIF projects.
Committee sentiment: Supportive: Sen. Clouse, Sen. Cavanaugh, Sen. Rountree Skeptical: Sen. McKinney, Sen. Andersen
Sentiment estimated from questions and comments — not stated positions.
LB702: Neighborhood Empowerment Act—establish grant program for neighborhood associations
Introduced by: Sen. Terrell McKinney | Testimony: 18 proponents, 3 opponents, 0 neutral | Read bill text (PDF)
Nebraska could invest $5 million annually in neighborhood associations—the people who know their communities best—to fix parks, improve lighting, and organize community events. LB702 establishes a grant program with a nine-member advisory board to evaluate applications from active neighborhood associations with regular meetings and community improvement plans.
Why it matters: Neighborhood associations lack resources to implement ideas that could transform their communities. Sen. McKinney, a former community organizer, argues that local engagement drives change more effectively than top-down government programs. The bill prioritizes historically underserved communities while remaining accessible to all rural and urban neighborhoods.
What they're saying: - Sen. McKinney: "It's all about priorities and investing in our people... the lack of local engagement and the lack of resources for neighborhood associations... is why I think this bill is important." - Kimara Snipes, One Omaha: "When residents are connected to their communities and local government, social and economic development follows... we often talk about the gap nonprofits and government try to fill when communities lack resources, but what if we close that gap at the source?" - Sen. Clouse: "I think it's a good start... we'll be back later on making changes and trying to get more money and trying to expand the terms."
By the numbers: 18 proponents, 3 opponents, zero neutral; no online comments.
What's next: No vote taken. Sen. Clouse suggested adding language requiring local jurisdiction partnership for infrastructure projects. Sen. McKinney indicated willingness to distinguish between infrastructure (requiring approval) and community events (not requiring approval). Committee indicated strong support for advancing the bill.
Committee sentiment: Supportive: Sen. Clouse, Sen. Cavanaugh, Sen. Rountree Skeptical: Sen. Andersen
Sentiment estimated from questions and comments — not stated positions.
Session Notes
The committee took a five-minute break between LB614 and LB626 to allow Sen. Dover to arrive. Vice Chair Clouse assumed the chair during portions of the hearing when Chair McKinney was testifying on LB702. The hearing concluded with an announcement that an executive session would follow. No votes were taken on any bills during the hearing portion.
Generated by NE Wire Service | Source: Nebraska Legislature Transcribers Office This is an AI-generated summary. Verify all claims against the official transcript.