This bill establishes requirements for cities, villages, and counties in Nebraska regarding the approval and regulation of accessory dwelling units (ADUs) on the same lot as single-family residences. It mandates that at least one ADU must be allowed, provided it complies with applicable building regulations and does not exceed 1,000 square feet or 50% of the size of the primary residence, whichever is larger. The bill also outlines conditions under which cities and counties can limit or prohibit ADUs, primarily related to existing historic building ordinances, deed restrictions, and homeowners' association rules. Additionally, if a manufactured or mobile home is used as an ADU, it must be converted to real property.

The legislation further restricts local governments from imposing more stringent requirements on ADUs than those applicable to single-family residences, including regulations on appearance, rental use, parking, and occupancy. It requires that permit applications for ADUs be approved without discretionary review if they meet the established criteria, and mandates that any denial of a permit must be communicated in writing with reasons and potential remedies. The bill also clarifies definitions related to ADUs, ensuring consistency across jurisdictions.