2026 Legislative Update

The Second Regular Session of 109th Nebraska Legislature convened on January 7 and officially adjourned sine die (legislative speak for adjourned with no planned date for resumption) on April 17. Top of mind for elected officials was the budget, however several positive bills also managed to make their way through to signing, along with a few concerning bills. Below is a summary of the bills APA Nebraska’s Legislative Committee was tracking and their outcomes. While all bills died the day the legislature adjourned, it doesn’t mean the bill won't be reintroduced next session.

Vetoed by Governor:

• LB839: Requires metropolitan, primary, and first class cities with a population of at least 20,000 to identify the number of multifamily housing units constructed in their corporate limits since January 2, 2021 and the number of such units that were designed and constructed in accordance with the accessibility requirements of the federal Fair Housing Act in their July 1 affordable housing report; Prohibits NDED from approving a multifamily rental project for assistance from the Affordable Housing Trust Fund unless at least 5% of the project’s units are accessible for people with mobility impairments and 2% are accessible for people with hearing or vision impairments.

Passed” All of the following bills will take effect July 16, 2026.

• LB883: Amended the definition of historic building or district under the Civic and Community Center Financing Act to mean any property (instead of building) that is determined by SHPO eligible for the National Register of Historic places or local landmark designation. The bill also relaxed rules to allow demolition of property, not limited to substandard and abandoned buildings, but requires documentation showing preservation-based mitigation strategies have been agreed to by the SHPO.

• LB1067: Removed the ability to transfer Affordable Housing Trust Fund money to other funds after July 1, 2027. The bill also increased the stamp tax from $2.32 to $3.32 until January 1, 2032. The bill also reallocates percentages of that money. Many communities rely on this funding and therefore it's important to protect.

• LB663: A carry over bill that requires education for members of county planning commissions and county boards and changes provisions relating to conditional use or special exception determinations by county planning commissions and county boards.

• LB852: Requires the recipient of money from the Convention Center Support Fund to maintain its principal place of business or primary operations within the area with a high concentration of poverty for at least three years following the funding. Failure to do so would result in a recapture of the funding. 

• LB1114: This was a major Christmas tree bill with seven bills rolled into it. It changes provisions of expedited review under the Community Development Law to reduce the amount of time a structure needs or vacant platted lot or nonconforming lot of record to be in the corporate limits from 60 years to 25; Allows use of TIF in under developed parcels that have been in the ETJ for more than 25 years; Requires housing agencies in metropolitan cities to submit annual reports on pest control management and evictions and complaints filed during the reporting period as well as allows metropolitan cities to regulate any housing agency; Increases the number of inland port districts from five to eight and revises edibility requirements for counties; Allows metropolitan and primary cities to use Local Option Municipal Economic Development (LB 840) funds for certain housing projects; Updates requirements for SIDs; Creates Community Improvement Districts for the construction, maintenance, and repair of public infrastructure; Creates the New Taxpayer Recruitment Grant to incentivize households to relocate to Nebraska.

No Movement (dies in session):

• LB740: Proposes to create the Housing First Supportive Services Act and Fund. This would direct the Department of Health and Human Services to seek federal approval to authorize Medicaid reimbursement for supportive housing services under a housing first program. This is generally a positive program for supporting housing and services for low income households.

• LB811: Proposes to allow all municipalities in Nebraska, regardless of their classification, to establish a land bank.

• LB850: Proposes to amend the Local Option Municipal Economic Development Act (LB840) to allow an economic development program to also include for any municipality funds for construction or rehabilitation for sale or lease of housing (a) for persons of low or moderate income, (b) as part of a workforce housing plan, or (c) as part of an affordable housing action plan as well as for any municipality a business that derives its principle source of income from the construction or rehabilitation of housing.

• LB1045:Proposes to create the Nebraska Public Housing Preservation Trust Act. The Trust's purpose would be to serve as a financing and rehabilitation entity and oversee major capital improvements to public housing in Nebraska.

• LB819: Proposes to amend the definition of workforce housing to increase the construction cost from $325,000 to $375,000 for owner occupied and $250,000 to $300,000 for rental housing units. This is generally just keeping in line with increasing costs.

• LB840: Proposes to limit the Department of Economic Development's ability to use Nebraska Affordable Housing Act assistance on multifamily housing projects unless (a) at least 20% of the units will be accessible for persons with mobility impairment and (b) at least 10% of the units will be accessible for persons with hearing or vision impairments.

• LB1041: Proposes to require cities to allow at least one accessory dwelling unit on the same lot as a single-family residence with some conditions including the size of the ADU and if historic buildings, deed restrictions or HOA restrictions exist. The bill also limits the restrictions a city can place on the ADU. APANE recognizes the balance between pre-emption of cities as well as the need to build more housing quickly and therefore remains neutral.

• LB1098: Proposes to adopt the State Rail Plan Act.

• LB1129:Proposes to amend the Community Development Law to extend the ability to declare an area blighted and substandard to the existence of underdeveloped parcels that have been within a community's ETJ for more than 25 years and adds development of such an area to the definition of a redevelopment project. The bill also proposes to amend the definition of extreme blight to reduce the percentage of unemployment from 200% to 150%, decrease the average poverty rate from 20% to 15%, and adds the provision that extreme blight could also be a substandard and blighted area that has a higher-than-average unemployment rate and higher-than-average poverty rate when compared to the rest of the state using any data available if the governing body deems the federal data unreliable or lacking for the area in question.

• LB1204: Adopt the Nameplate Capacity Tax Facility Standards Act and change provisions relating to property tax exemptions and the nameplate capacity tax. This limits zoning to certain setbacks from wind, solar and battery storage to 1 and 1/10th times the height for wind and 200 feet for solar from neighboring occupied dwellings walls, not property lines, walls. It also limits property valuations for renewable energy projects. APANE recognizes the balance between pre-emption of cities as well as the need to build more renewable energy projects.

• LB809: Proposes to prohibit local governments from having the power to regulate a landlord's ability to refuse to lease or rent a privately owned single family, multi family, or commercial property to a person because that person's lawful source of income to pay rent includes funding from a federal or other housing assistance program. The Chapter has concerns over fair housing compliance issues and source of income discrimination that this bill would impact.

• LB925: Proposes to adopt the Safe Parks and Public Spaces Act, which would make it unlawful for any person to knowingly camp on public property or right-of-way not designated for such action. The bill also authorizes residents or business owners of the county to bring a lawsuit against a political subdivision that does not enforce these regulations. If a political subdivision is found in violation, the State Treasurer shall suspend distribution of state funds designated for addressing housing or homelessness to that political subdivision. Funds withheld for six months or longer shall be forfeited and returned to the General Fund. This bill is contrary to APA National's priorities on decriminalizing homelessness.

• LB988: Proposes to amend the Community Development Law to change the definition of blight and generally reduce the ability to use this economic development bill. This bill would be especially damaging to western Nebraska communities.

• LB1094: Proposes to adopt the By-Right Housing Development Act which would require cities to approve all proposed housing developments that meet the criteria outlined in the applicable zoning codes and land use regulations by right without discretionary review or approval by a planning commission, zoning board, or other regulatory authority. The bill also allows an applicant who has been denied the right to appeal to district court. Further, the bill also proposes to adopt the Permitting Approval Timeliness Act which requires a permitting authority to process permit applications in a timely manner and render a decision within 75 days after its submission. This bill takes away local review without streamlining the process.

• LB1130: Proposes to adopt the Community Improvement District Act, which would allow property owners to form a community improvement district within a village or city in order to pay for construction, installation, improvement, equipping, maintenance, and repair of public infrastructure within the district. There is little evidence this creates more affordable lots and this approach is generally not supported by most communities.

• LB1026: Would prohibit retirement, shutdown, cessation of operation, and alteration of operation of certain facilities as prescribed; to harmonize provisions; and to repeal the original section. This would put hurdles in place for developing local energy projects and pre-empts local governments on making decisions for their own power generation.

• LB1027: Proposes to eliminate certain exemptions applicable to privately developed renewable energy generation facilities; to change requirements for the construction of privately developed renewable energy generation facilities; to harmonize provisions; and to repeal the original sections. Another bill that would prohibit local utilities from making decisions about their own power generation resources undermining local control.