‘Make homes more affordable’: State, city leaders look to federal program to help spur affordable housing

LINCOLN, Neb. —

State and local Nebraska leaders are looking to a revamped federal program to bolster struggling communities, increase affordable housing and support economic development.

“How can we make homes more affordable?” Nebraska Gov. Jim Pillen asked during a Wednesday afternoon press conference.

He’s touting a federal program, which state leaders have dubbed “Opportunity Zones 2.0,” as one answer.

“The purpose of the program is to promote investment and drive economic growth in low-income and/or economically disadvantaged communities within opportunity zones,” Nebraska Department of Economic Development Director Maureen Larsen said. “Investments made through certified investment vehicles, created as Opportunity Funds, are used to spur economic growth.”

Investors who participate through qualified opportunity funds can receive tax benefits, including the deferral of certain capital gains, while financing projects in designated communities.

Nebraska has 28 designated opportunity zones under the new program, including 10 in Omaha.

For Omaha Mayor John Ewing Jr., expanding homeownership opportunities is about more than economics.

“I am 65 but can recall with clarity how it felt when my family moved 50 years ago from a rental house to a house we owned,” he said. “I remember feeling relief. I remember feeling safe and feeling proud.”

Ewing also emphasized the importance of investing in neighborhoods that have historically faced economic challenges.

“These tracks hold neighborhoods, history, and people working mightily to improve their lives,” he said.

Among the communities expected to benefit is Lexington, where leaders are working to recover from the closure of a Tyson Foods beef processing plant that has been the city’s largest employer.

Lexington Mayor John Fagot said the community remains hopeful despite the economic setback.

“We have a lot of optimism in our community. People aren’t running away. They aren’t hiding,” Fagot said.

Fagot said Tyson is expected to end its remaining production at the facility in August, and he said the community will look for another use of the facility. City leaders hope opportunity zone incentives will help attract investment to the city.

“The American Dream simply is getting, having young people have to be in housing in a much sooner fashion,” Pillen said.

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