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Nebraska Lawmakers Review Housing Programs: What’s Working, What’s Not

Nebraska lawmakers are reviewing the state’s affordable housing programs to assess their effectiveness and identify potential improvements. State Senator Rob Dover, a Realtor and developer, is spearheading the initiative, questioning whether public incentives are achieving the desired outcomes. This review aims to optimize the state’s housing strategy, crucial for its economic growth.

Lawmakers across Nebraska are diving deep into the state’s housing programs, with a particular focus on whether public funds and incentives are being used to their full potential. Senator Rob Dover, an experienced Realtor and developer from Norfolk, has been a strong advocate for affordable housing and is leading an effort to scrutinize the state’s approach. Dover’s involvement stems from his belief that effective housing policies are vital not just for people in need of affordable homes, but for the broader economic development of the state.

The state has several housing programs, including the Affordable Housing Trust Fund and the Rural Workforce Housing Fund, designed to address the housing challenges in urban and rural communities alike. Yet, despite some success, Dover and other lawmakers feel that the return on investment (ROI) from these initiatives could be improved. This week, Dover convened a legislative hearing where experts from across Nebraska, including private developers, city planners, and economic development professionals, offered their perspectives.

Nebraska affordable housing

Assessing the Impact of Housing Funds

The state’s Affordable Housing Trust Fund, Rural Workforce Housing Fund, and tax-increment financing (TIF) are central to the discussion. Lawmakers are looking to ensure that these programs effectively address the demand for affordable housing while generating positive economic returns.

At the core of the issue, as Dover pointed out, is the link between housing and broader economic growth. He argues that a thriving economy requires a robust workforce, and workers need affordable homes to live in. It’s a straightforward equation: economic development needs housing, and housing drives economic development. The key question is whether Nebraska’s current housing initiatives are enough to meet the growing demands of its population.

Several local officials and housing advocates testified during the hearing, providing examples of successful initiatives. Candice Alder, an economic development director in Norfolk, highlighted how the Rural Workforce Housing Fund has been a catalyst for local growth. She pointed out that with state support, 218 new housing units were built, significantly impacting the community’s growth and quality of life. According to Alder, the fund, which provides financial assistance to rural areas to build workforce housing, has been a game-changer for towns struggling to attract workers.

The Role of Tax Increment Financing (TIF)

Another critical program under discussion is TIF, which helps fund housing developments by using increased property taxes from a project’s improvements. TIF has been used extensively in Nebraska and has played a key role in funding housing developments since its inception in 2016. In fact, over 900 housing units have been created using this mechanism, according to Alder’s testimony.

However, TIF’s effectiveness is a topic of debate. Critics argue that while the program has spurred development in blighted areas, it doesn’t always address the underlying issue of affordable housing for low-income residents. Instead, some say, TIF often benefits developers and larger commercial projects that may not necessarily meet the needs of the community’s most vulnerable.

Despite these concerns, Dover remains optimistic about the potential of TIF and similar programs to improve Nebraska’s housing landscape. He’s pushing for legislative reforms that would tweak existing programs to ensure they provide more long-term benefits for residents and local economies. For example, the state’s use of tax increment financing could be refined to focus more on affordable housing rather than high-end developments that don’t serve the broader population.

Housing as a Cornerstone for Nebraska’s Economic Future

Dover’s belief that housing is essential to Nebraska’s economic growth is shared by many of his colleagues. Lawmakers are increasingly recognizing that the state’s future depends on attracting new workers, particularly in rural areas, and housing plays a significant role in that process. As Nebraska continues to see an influx of people moving into the state for work opportunities, the need for housing—especially affordable housing—has never been more critical.

“Economic development requires workers. Workers require housing,” Dover said during the hearing. His words echo the sentiments of many who believe that investing in housing is an investment in the state’s overall prosperity.

Nebraska’s housing challenges are not unique. Across the U.S., cities and states are grappling with rising housing costs and growing demand. For Nebraska, however, the situation is more pressing due to its dependence on a stable workforce in both rural and urban areas. The state’s ability to attract and retain workers hinges, in part, on its ability to provide them with affordable housing options.

What Comes Next?

As Nebraska lawmakers prepare for the upcoming legislative session, discussions about the state’s housing programs will continue to evolve. The insights from the recent hearings will likely shape future policy proposals, with an emphasis on optimizing the use of public funds and improving housing affordability.

Lawmakers, led by Dover, are looking to strike the right balance between incentivizing development and ensuring that housing remains affordable for Nebraskans across the state. The goal is clear: improve the return on investment from state housing programs and make sure that everyone has access to a home they can afford.

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