Last week, I received several questions about a bill the Governor signed in Blair. I was unable to attend the signing ceremony because I was tied up with Nebraskaland Days activities, but I wanted to explain what the bill does.

The bill signed was LB1114, which included my bill, LB1130, the Community Improvement District Act. LB1130 gives cities and villages a new, locally controlled tool to help finance public infrastructure, including streets, sidewalks, sewer, water, utilities, grading, and other improvements needed to encourage housing development.

One of the biggest challenges facing communities across Nebraska is housing. Employers are recruiting workers, young families are buying their first homes, and many communities want to grow but are constrained by the high cost of development. Before a new home can be built, infrastructure must be in place. Those costs are often paid up-front by the builder and then passed along in the final price of the lot or home.

LB1130 will help address that problem by allowing property owners within a defined area to voluntarily form a Community Improvement District (CID). A CID allows infrastructure costs to be financed over time by property owners, rather than requiring all those costs to be paid up front. This can reduce the initial development cost and support the responsible growth of new housing stock.

It is important to note that this is not a government spending program. LB1130 does not use funds from the state or political subdivision. Instead, a bond is issued and marketed to cover the initial improvement costs, and additional taxes are collected from those who benefit from the improvements to repay the bond.

Notably, a CID also cannot be imposed on a neighborhood. A majority of property owners in the proposed district must first support the idea through a petition. There must then be notice and a public hearing, and the city council or village board must approve the district by ordinance. Local elected officials retain control at each major step.

Once created, the CID is governed by a board of local property owners elected from within the district. It must also comply with open meetings laws, budgeting requirements, and audit requirements. In other words, this is a public, accountable process with local oversight.

The Governor’s signing of LB1114 took place at the future site of the Bear Creek housing development in Blair, which plans to use this new tool to build 137 new homes. That project is a good example of how LB1130 can help reduce up-front development costs and make homes more attainable. It is one of over a dozen projects planned statewide and now in progress.

LB1130 will not solve every housing challenge overnight, but it’s another tool in the toolbox. Infrastructure costs are among the largest barriers to new development, and this bill gives communities another tool to address that barrier while keeping decisions local.

It continues to be my privilege to represent District 42 as your state Senator. It is a responsibility that I don’t take lightly, and your input on policies and problems is always welcome. I can be reached at 402-471-2729 or by emailing me at mjacobson@leg.ne.gov.