CONTACT:
Laura Strimple, (402) 580-9495
Gov. Pillen Holds Blair Signing Ceremony to Highlight Housing Affordability Bill
BLAIR, NE – Today, Governor Jim Pillen joined local leaders, housing advocates and contractors in Blair for the ceremonial bill signing of LB 1114. Advanced as a priority by the Legislature’s Urban Affairs Committee, the comprehensive package contains the Community Improvement District (CID) Act introduced by Senator Mike Jacobson. The new law provides a tool designed to allow property owners to voluntarily form specialized districts to finance, construct, and maintain vital public infrastructure within city or village limits.
To highlight its impact, Gov. Jim Pillen held the event at the future site of the Bear Creek housing development. Bear Creek plans to be among the first in Nebraska to utilize the new CID tool to construct 137 new homes at a starting price of $320,000.
“The rising cost of housing across the country has created a steep barrier for far too many people who want to achieve the dream of owning a home,” said Gov. Jim Pillen. “LB 1114 tackles this problem head-on by paving the way for the development of hundreds of new homes at a more affordable starting price for Nebraska families.”
Traditionally, infrastructure requirements for a new development - such as utility hookups, grading, streets, and sewer lines – add a staggering $30,000 to $50,000 per lot. Because local communities often face financing hurdles to build these systems, affordable housing projects frequently struggle to get off the ground, or they produce homes that are simply too expensive for the middle class.
“The provisions from LB 1130, included in LB 1114, give Nebraska communities a new, locally controlled tool to finance infrastructure and support responsible growth. By reducing upfront development costs, these provisions can encourage the construction of much-needed housing, improve affordability, and create opportunities to address their unique needs,” said Sen. Jacobson. “I appreciate the collaborative effort that brought these ideas together and look forward to the positive impact they will have across Nebraska.”
LB 1114 creates an in-city framework where CIDs can leverage tax-exempt financing to defer upfront infrastructure costs. The debt is slowly repaid over time through revenues generated within the district itself, rather than being front-loaded onto the home’s initial price.
“We would like to thank the Governor’s office, Senator Jacobson, the Urban Affairs Committee, the City of Blair and the Welcome Home Coalition in helping to move this transformation bill forward,” said Adam Flanagan, managing director and co-owner of Bluestem Capital Partners “Bluestem Capital Partners is excited to immediately use this new tool across Nebraska to tackle the housing shortage, particularly, the affordable housing shortage.”
By applying the new CID mechanism to Blair’s Bear Creek development, the project will reduce upfront lot costs and final home prices by approximately 30%. This will save new homeowners hundreds of dollars per month compared to traditional private developments.
“LB 1114 is the most important financial tool that has been passed in the state of Nebraska since the TIF law was passed in 1978,” said Jason Thiellen, CEO of E&A Consulting Group and president of the Welcome Home Coalition. “LB 1114 provides the opportunity for communities all across Nebraska to finance public infrastructure to help them grow and prosper by being able to partner with local developers and builders to provide the much-needed housing stock at a more affordable price than ever before. We at Welcome Home appreciate the public/private partnership it took to get LB 1114 across the finish line.”
Brought forward in partnership with the Welcome Home Coalition, a nonprofit network of individuals, businesses, and organizations dedicated to proactively improving Nebraska’s starter housing market, the CID framework targets upfront development roadblocks. Blair will secure the housing supply and expanded property tax base it needs, while the development itself will drive local jobs and commercial spending.
“We appreciate Governor Pillen joining us today for this historic step forward creating Community Improvement Districts in Nebraska, said Phil Green, Blair city administrator. “This district is an incredible tool in helping finance public infrastructure for communities like Blair.”
