This bill amends the Community Development Law in Nebraska to enhance the redevelopment process by allowing cities to designate areas as "extremely blighted" and extending the period for dividing ad valorem taxes from a maximum of fifteen years to up to twenty years. It requires cities to conduct studies to assess blighted status and submit redevelopment plans to the Property Tax Administrator, promoting transparency. Key changes include the introduction of conduit revenue bonds, which can be secured by a percentage of annual excess tax revenues, and the establishment of taxpayer agreements that may limit rights to challenge property tax assessments. The designation of an extremely blighted area is confirmed to last at least twenty-five years, with provisions for removal under certain conditions.

Additionally, the bill stipulates that payments under taxpayer agreements related to conduit revenue bonds will be treated similarly to property taxes if they include a property tax lien, with such liens taking priority over existing mortgages. It mandates that at least thirty percent of funds generated from tax divisions be allocated to single-family housing for low-income households, regardless of location. The bill clarifies the duration for dividing ad valorem taxes based on redevelopment area classification and sets specific requirements for notifying the county assessor about tax divisions, with penalties for non-compliance. Several outdated statutes are also repealed to streamline the law.

Statutes affected:
Introduced: 18-2101.02, 18-2117.01, 18-2124, 18-2125, 18-2136, 18-2147