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LEGISLATURE OF NEBRASKA
ONE HUNDRED EIGHTH LEGISLATURE
FIRST SESSION
LEGISLATIVE BILL 481
Introduced by Raybould, 28.
Read first time January 17, 2023
Committee: Urban Affairs
1 A BILL FOR AN ACT relating to housing incentives; to adopt the Housing
2 Incentive District Act.
3 Be it enacted by the people of the State of Nebraska,
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1 Section 1. Sections 1 to 15 of this act shall be known and may be
2 cited as the Housing Incentive District Act.
3 Sec. 2. The purpose of the Housing Incentive District Act is to
4 encourage the development and renovation of housing in cities and
5 counties in this state by authorizing cities and counties to assist
6 directly in the financing of public improvements that will support
7 housing in areas that experience a shortage of housing.
8 Sec. 3. For purposes of the Housing Incentive District Act:
9 (1) Authority means the Nebraska Investment Finance Authority;
10 (2) City means an incorporated city or village in this state;
11 (3) County means any county in this state;
12 (4) Developer means the person, firm, or corporation responsible
13 under an agreement with the governing body to develop housing or related
14 public facilities in a district;
15 (5) Director means the Director of Economic Development;
16 (6) District means a housing incentive district established in
17 accordance with the act;
18 (7) Governing body means the village board of a village, the city
19 council of a city, or the county board of a county;
20 (8) Housing development activities means the construction or
21 rehabilitation of infrastructure necessary to support construction of new
22 residential dwellings and the actual construction of residential
23 dwellings;
24 (9) Real property taxes means and includes all taxes levied on an ad
25 valorem basis upon land and improvements thereon; and
26 (10) Taxing subdivision means any county, city, school district, or
27 other political subdivision levying real property taxes, the territory or
28 jurisdiction of which includes a housing incentive district.
29 Sec. 4. (1) The governing body of any city or county is hereby
30 authorized to designate housing incentive districts within such city or
31 county. Any city governing body may designate one or more such districts
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1 in such city, and any county governing body may designate one or more
2 such districts in any part of the unincorporated territory of such
3 county. Prior to making such a designation, the governing body shall
4 conduct a housing needs analysis to determine what, if any, housing needs
5 exist within the proposed district. After conducting the analysis, the
6 governing body shall adopt a resolution containing a legal description of
7 the proposed district, a map depicting the existing parcels of real
8 estate in the proposed district, and a statement containing the following
9 findings:
10 (a) There is a shortage of quality housing of various price ranges
11 in the city or county despite the best efforts of public and private
12 housing developers;
13 (b) The shortage of quality housing can be expected to persist, and
14 additional financial incentives are necessary in order to encourage the
15 private sector to construct or renovate housing in such city or county;
16 (c) The shortage of quality housing is a substantial deterrent to
17 the future economic growth and development of such city or county; and
18 (d) The future economic well-being of the city or county depends on
19 the governing body providing additional incentives for the construction
20 or renovation of quality housing in such city or county.
21 (2) The resolution containing the findings described in subsection
22 (1) of this section shall be published at least once in a legal newspaper
23 in or of general circulation in the city or county.
24 (3) Upon publication of the resolution as required in subsection (2)
25 of this section, the governing body shall send a certified copy of the
26 resolution to the director, requesting that the director review the
27 resolution and advise the governing body whether the director agrees with
28 the findings contained therein. If the director advises the governing
29 body in writing that the director agrees with each of the findings of the
30 governing body, the governing body may proceed to establish the district
31 as set forth in the Housing Incentive District Act. If the director fails
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1 to agree with the findings, the director shall advise the governing body
2 in writing of the specific reasons therefor.
3 Sec. 5. (1) Upon receipt of the approval of the director as
4 provided in section 4 of this act, the governing body may proceed with
5 the establishment of the district. Before doing so, the governing body
6 shall adopt a plan for the development or redevelopment of housing and
7 public facilities in the proposed district. Such plan may include one or
8 more projects. The length of any individual project shall not exceed
9 fifteen years. The plan shall include, but not be limited to, the
10 following:
11 (a) The legal description and map required in section 4 of this act;
12 (b) The existing assessed value of the real estate in the proposed
13 district, listing the land and improvement values separately;
14 (c) A list of the names and addresses of the owners of record of all
15 real estate parcels within the proposed district;
16 (d) A description of the housing and public facility project or
17 projects that are proposed to be constructed or improved in the proposed
18 district, and the location thereof;
19 (e) A listing of the names, addresses, and specific interests in
20 real estate in the proposed district of the developers responsible for
21 the development of the housing and public facilities in the proposed
22 district;
23 (f) The contractual assurances, if any, the governing body has
24 received from such developer or developers, guaranteeing the financial
25 feasibility of specific housing projects in the proposed district; and
26 (g) A comprehensive analysis of the feasibility of providing housing
27 tax incentives in the district as provided in the Housing Incentive
28 District Act, which shows that the public benefits derived from such
29 district will exceed the costs and that the income from the tax
30 incentives, together with other sources of funding, will be sufficient to
31 pay for the project or projects.
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1 (2) Prior to the adoption of the plan and designation of the
2 district, the governing body shall adopt a resolution stating that the
3 governing body is considering such action. The resolution shall provide
4 notice that a public hearing will be held to consider the adoption of the
5 plan and designation of the district and shall contain the following
6 information:
7 (a) The date, time, and place of the public hearing;
8 (b) The information described in subdivisions (1)(a) through (d) of
9 this section;
10 (c) A summary of the contractual assurances by the developer and
11 comprehensive feasibility analysis;
12 (d) A statement that the plan is available for inspection at the
13 office of the clerk of the city or county during normal business hours;
14 and
15 (e) A statement inviting members of the public to review the plan
16 and attend the public hearing on the date announced in the resolution.
17 (3) The date fixed for the public hearing shall not be less than
18 thirty nor more than seventy days following the date of the adoption of
19 the resolution described in subsection (2) of this section. Such
20 resolution shall be published at least once in a legal newspaper in or of
21 general circulation in the city or county, with the final publication
22 being not less than one week and not more than two weeks preceding the
23 date fixed for the public hearing.
24 (4) A certified copy of the resolution shall be delivered to the
25 planning commission of the city or county and the school board of any
26 school district levying taxes on property within the proposed district.
27 If the resolution is adopted by a city governing body, a certified copy
28 shall also be delivered to the governing body of the county in which the
29 proposed district will be located. If the resolution is adopted by a
30 county governing body, a certified copy shall also be delivered to the
31 governing body of any city located within three miles of such proposed
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1 district.
2 Sec. 6. (1) At the public hearing described in section 5 of this
3 act, a representative of the city or county shall present the proposed
4 plan for the development or renovation of housing in the proposed
5 district. Each project proposed for the district shall be identified and
6 explained. At the hearing, the developer or developers that have
7 contracted with the city or county to undertake such project shall be
8 identified and present in person or through a representative. Following
9 the presentation, all interested persons shall be given an opportunity to
10 be heard. The governing body for good cause shown may recess such hearing
11 to a time and date certain, which shall be fixed in the presence of
12 persons in attendance at the hearing.
13 (2) Upon conclusion of the public hearing, the governing body may
14 adopt the plan for the district and may establish the district by
15 ordinance or, in the case of any county, by resolution. The boundaries of
16 such district shall not include any area not designated in the notice
17 required by section 5 of this act. Any addition of area to the district
18 or any substantial change to the plan shall be subject to the same
19 procedure for public notice and hearing as required for the initial
20 establishment of the district.
21 (3) The ordinance or resolution establishing the district shall be
22 null and void if, within thirty days following the conclusion of the
23 public hearing:
24 (a) The governing body of any city located within three miles of a
25 district proposed to be established by a county determines by ordinance
26 that the proposed district will have an adverse effect on such city; or
27 (b) The governing body of the county in which a city governing body
28 proposes to establish such a district determines by resolution that the
29 proposed district will have an adverse effect on such county.
30 Sec. 7. (1) Any governing body that has established a district as
31 provided in the Housing Incentive District Act may purchase or otherwise
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1 acquire real property, but such property shall not be acquired through
2 the exercise of the power of eminent domain. Relocation assistance
3 payments shall be provided by the city or county in accordance with the
4 Relocation Assistance Act to any tenants required to be relocated as a
5 result of the acquisition of such property for any project in the
6 district.
7 (2) Any property acquired by a city or county under the Housing
8 Incentive District Act may be sold or leased to any developer in
9 accordance with the plan for the district adopted under section 6 of this
10 act and under such conditions as shall have been agreed to prior to the
11 adoption of the plan. The city or county and the developers may agree to
12 any additional terms and conditions, but if the developer requests to be
13 released from any obligations agreed to and embodied in the plan, such
14 release shall constitute a substantial change and shall be subject to the
15 requirements provided in subsection (2) of section 6 of this act.
16 Sec. 8. (1) Any city or county that has established a housing
17 incentive district as provided in the Housing Incentive District Act may
18 issue special obligation bonds to finance the implementation of the plan
19 adopted for the district by the governing body. Such special obligation
20 bonds shall be made payable, both as to principal and interest:
21 (a) From property tax increments allocated to, and paid into, a
22 special fund of the city or county under section 10 of this act;
23 (b) From revenue of the city or county derived from or held in
24 connection with the implementation of the project or projects in the
25 district;
26 (c) From any private sources or contributions or other financial
27 assistance from the state or federal government;
28 (d) From any financial sureties or other guarantees provided by the
29 developer;
30 (e) From a pledge of any other lawfully available city or county
31 revenue sources, including, but not limited to, a portion of the local
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1 sales and use tax revenue imposed by the city or county; or
2 (f) By any combination of the payment sources described in
3 subdivisions (a) through (e) of this subsection.
4 (2) The city or county may pledge the payment sources described in
5 subsection (1) of this section to the repayment of the special obligation
6 bonds prior to, simultaneously with, or subsequent to the issuance of
7 such bonds.
8 (3) Bonds issued under this section shall not be general obligations
9 of the city or county, nor in any event shall they give rise to a charge
10 against the general credit or taxing powers of the city or county, or be
11 payable out of any funds or properties other than those set forth in this
12 section. Such bonds shall so state on their face.
13 (4) The bonds issued under this section shall be special obligations
14 of the city or county and are declared to be negotiable instruments. The
15 bonds shall be executed by the mayor and clerk of the city or, in the
16 case of counties, by the chairperson of the county board and clerk of the
17 county, and shall be sealed with the corporate seal of the city or
18 county. All details pertaining to the issuance of such special obligation
19 bonds shall be determined by ordinance of the city or resolution of the
20 county. All special obligation bonds issued pursuant to the Housing
21 Incentive District Act shall be exempt from all state taxes. The special
22 obligation bonds shall contain the following recitals:
23 (a) The authority under which such special obligation bonds are
24 issued and that they are in conformity with the provisions, restrictions,
25 and limitations thereof; and
26 (b) That such special obligation bonds and the interest thereon are
27 to be paid from the money and revenue described in subsection (1) of this
28 section.
29 (5) The maximum maturity on bonds issued under this section shall
30 not exceed sixteen years.
31 (6) Any city or county issuing special obligation bonds under this
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1 section may refund all or part of such issue pursua