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On Monday, the Nebraska Legislature advanced a bill to fund affordable housing efforts.Legislative Bill 1067 would give a dedicated funding source to the Middle Income and Rural Workforce Housing Funds, funds managed by the Nebraska Department of Economic Development that provide matching grants to nonprofit developers.It would use additional real estate closing costs placed on sellers. The Documentary Stamp Tax would increase from $2.32 to $3.32 per $1,000 in sales. The extra dollar would go to the funds. For sellers of a $300,000 home, it means they’d pay an additional $300 at closing.State Sen. Bob Hallstrom introduced the bill. It originally called for a $1.50 increase in the tax for the funds. After a compromise amendment was accepted on Monday, it was reduced to the $1 increase and will expire after five years.Nebraska Legislature advances housing funds billWhile some senators opposed the legislation because of the tax increase, others said it’s important to act on Nebraska’s housing shortage.Supporters said that more homes mean lower housing prices and that housing is necessary to attract and retain workers in the state.”These vital housing programs have proven to be extremely successful and impactful economic development tools throughout Nebraska,” Carol Nelson Bodeen, the director of policy at the Nebraska Housing Developers Association, told KETV. “In communities both large and small, this investment will result in a better housing environment for families of all income levels.”Habitat for Humanity of Omaha CEO Amanda Brewer said she’s “thrilled” to see the bill advance. Nonprofits like hers will use the help to finance projects and provide down payment assistance, for example, she said.The funds that stand to benefit have been around for years, but putting money in them has been a challenge. Last year, the legislature rejected a proposal to move $8 million from the funds to help address the budget shortfall. Instead, the legislature allowed $8 million to come from the Affordable Housing Trust Fund.This year, Legislative Bill 1072 proposes to move all unobligated funds in the Middle Income and Rural Workforce Housing Funds to the Affordable Housing Trust Fund.
On Monday, the Nebraska Legislature advanced a bill to fund affordable housing efforts.
Legislative Bill 1067 would give a dedicated funding source to the Middle Income and Rural Workforce Housing Funds, funds managed by the Nebraska Department of Economic Development that provide matching grants to nonprofit developers.
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It would use additional real estate closing costs placed on sellers. The Documentary Stamp Tax would increase from $2.32 to $3.32 per $1,000 in sales. The extra dollar would go to the funds. For sellers of a $300,000 home, it means they’d pay an additional $300 at closing.
State Sen. Bob Hallstrom introduced the bill. It originally called for a $1.50 increase in the tax for the funds. After a compromise amendment was accepted on Monday, it was reduced to the $1 increase and will expire after five years.
Nebraska Legislature advances housing funds bill
While some senators opposed the legislation because of the tax increase, others said it’s important to act on Nebraska’s housing shortage.
Supporters said that more homes mean lower housing prices and that housing is necessary to attract and retain workers in the state.
“These vital housing programs have proven to be extremely successful and impactful economic development tools throughout Nebraska,” Carol Nelson Bodeen, the director of policy at the Nebraska Housing Developers Association, told KETV. “In communities both large and small, this investment will result in a better housing environment for families of all income levels.”
Habitat for Humanity of Omaha CEO Amanda Brewer said she’s “thrilled” to see the bill advance. Nonprofits like hers will use the help to finance projects and provide down payment assistance, for example, she said.
The funds that stand to benefit have been around for years, but putting money in them has been a challenge. Last year, the legislature rejected a proposal to move $8 million from the funds to help address the budget shortfall. Instead, the legislature allowed $8 million to come from the Affordable Housing Trust Fund.
This year, Legislative Bill 1072 proposes to move all unobligated funds in the Middle Income and Rural Workforce Housing Funds to the Affordable Housing Trust Fund.
