Read the full stored bill text
LEGISLATURE OF NEBRASKA
ONE HUNDRED NINTH LEGISLATURE
SECOND SESSION
LEGISLATIVE BILL 1045
Introduced by McKinney, 11; Spivey, 13.
Read first time January 14, 2026
Committee: Urban Affairs
A BILL FOR AN ACT relating to local housing agencies; to adopt the1
Nebraska Public Housing Preservation Trust Act; to provide an2
operative date; and to declare an emergency. 3
Be it enacted by the people of the State of Nebraska,4
LB1045
2026
LB1045
2026
-1-
Section 1. Sections 1 to 15 of this act shall be known and may be1
cited as the Nebraska Public Housing Preservation Trust Act.2
Sec. 2. (1) The Legislature finds and declares that:3
(a) Nebraska's public housing stock faces significant deferred4
maintenance, environmental hazards, and capital-repair needs that exceed5
existing federal and local capacity; 6
(b) Traditional federal funding streams, including section 97
operating and capital funds, have been insufficient to maintain safe,8
decent, and sanitary conditions for residents; 9
(c) A new public financing mechanism is needed to preserve10
affordability, prevent displacement, and modernize aging public housing11
infrastructure while maintaining public ownership and resident control;12
and 13
(d) The Nebraska Public Housing Preservation Trust is being created14
to provide a stable funding model for public housing, ensure long-term15
public ownership, and guarantee tenant protections while enabling large-16
scale rehabilitation and modernization in addition to current federal17
funding. 18
(2) The Legislature further finds and declares that:19
(a) The assets of the Nebraska Public Housing Preservation Trust20
constitute public trust property held for essential governmental21
purposes, including housing stability, public health, and displacement22
prevention; 23
(b) The restrictions imposed by the Nebraska Public Housing24
Preservation Trust Act constitute permissible conditions on public25
property and do not create compensable property interests in favor of26
private parties; and 27
(c) No action taken pursuant to the act shall be construed as a28
taking under the Fifth Amendment to the United States Constitution or29
under Article I, section 21, of the Constitution of Nebraska.30
Sec. 3. For purposes of the Nebraska Public Housing Preservation31
LB1045
2026
LB1045
2026
-2-
Trust Act: 1
(1) Board means the board of trustees of the trust;2
(2) Development means any public housing project owned or operated3
by a local housing agency; 4
(3) Local housing agency has the same meaning as in section 71-1575;5
(4) Preservation conversion means a transfer of operational6
authority and financing structure from section 9 funding to project-based7
section 8 funding or successor funding streams through the trust;8
(5) Resident council means a democratically elected council9
representing residents of a specific development; 10
(6) Section 8 means section 8 of the United States Housing Act of11
1937, 42 U.S.C. 1437f; 12
(7) Section 9 means section 9 of the United States Housing Act of13
1937, 42 U.S.C. 1437g; and 14
(8) Trust means the Nebraska Public Housing Preservation Trust15
created under section 4 of this act. 16
Sec. 4. (1) The Nebraska Public Housing Preservation Trust is17
created as a public corporation and political subdivision of the State of18
Nebraska. The trust shall serve as a financing and rehabilitation entity19
and shall oversee major capital improvement projects for developments.20
(2) The trust shall be governed by a nine-member board of trustees.21
Members of the board shall be appointed by the Governor and shall22
include: 23
(a) Three residents of developments; 24
(b) One representative of a neighborhood alliance association;25
(c) One executive director of a local housing agency;26
(d) One representative of local housing agency employees;27
(e) One member with experience in affordable housing finance;28
(f) One representative of community-based nonprofit organizations;29
and 30
(g) One representative of municipalities. 31
LB1045
2026
LB1045
2026
-3-
(3) The term of each member of the board shall be four years, except1
at initial appointment when the terms shall be staggered so that no more2
than three members shall have terms that end in any given year.3
(4) All real property, leasehold interests, revenues, bond proceeds,4
contract rights, and other assets held by the trust are irrevocably5
dedicated to public purposes, including the preservation, rehabilitation,6
and long-term public ownership of public housing for low-income7
residents. 8
(5) Members of the board shall be deemed fiduciaries and shall owe9
duties of loyalty, care, and obedience to the public purposes of the10
trust and to the residents of developments that are subject to the11
Nebraska Public Housing Preservation Trust Act. In the event of a12
conflict between financial considerations and the health, safety, or13
housing stability of residents of such developments, the interests of the14
residents shall control. 15
(6) In the event the trust is repealed or otherwise ceases to exist,16
all assets of the trust shall automatically and irrevocably transfer to a17
successor public entity or resident-controlled public trust with a18
substantially similar public purpose. Under no circumstances shall trust19
assets revert to the state, be sold, transferred, or conveyed to a20
private entity, or be used for non-housing purposes.21
Sec. 5. (1)(a) No later than January 1, 2027, the trust shall enter22
into an agreement with each local housing agency that wishes to23
participate in the Nebraska Public Housing Preservation Trust Act. The24
agreement shall address and clearly define: 25
(i) The specific public housing properties and assets subject to the26
agreement; 27
(ii) The respective powers of the trust and local housing agency28
regarding financial decisions, capital improvements, and operational29
management; 30
(iii) Procedures for coordinated planning and implementation of31
LB1045
2026
LB1045
2026
-4-
preservation activities; 1
(iv) Protocols for resident engagement and participation in2
decision-making; 3
(v) Financial obligations and resource allocation between the4
parties; 5
(vi) Reporting requirements and information-sharing protocols;6
(vii) Staffing responsibilities and personnel management; and7
(viii) Compliance with federal, state, and local laws and8
regulations. 9
(b) The agreement shall be approved by a majority vote of the10
trust's board and the governing body of the local housing agency.11
(c) No agreement shall be valid or enforceable without written12
certification that residents of the local housing agency's developments13
have been meaningfully consulted during the development of the agreement.14
(d) Each agreement shall be filed with the Department of Economic15
Development within thirty days after its execution.16
(2) Once an agreement has been signed with a local housing agency17
under subsection (1) of this section, the trust shall have the power to:18
(a) Issue bonds to finance the rehabilitation and modernization of19
the local housing agency's developments; 20
(b) Enter into long-term ground leases of up to ninety-nine years,21
provided that such leases shall not be transferable or assignable to a22
private entity and shall retain permanent public ownership of the23
underlying land and improvements; 24
(c) Apply for and receive federal tenant protection vouchers or25
successor funding from the United States Department of Housing and Urban26
Development with respect to the local housing agency's developments; and27
(d) Require development-level capital improvement plans for the28
local housing agency's developments, subject to approval by the29
applicable resident council. 30
Sec. 6. The trust shall not: 31
LB1045
2026
LB1045
2026
-5-
(1) Privatize property management or transfer operations to private1
corporations without the approval of a majority of the residents of the2
affected development; or 3
(2) Sell, transfer, or securitize any real property.4
Sec. 7. No development that is subject to an agreement under5
section 5 of this act and no asset, revenue stream, or contractual6
interest held by the trust shall be subject to receivership, foreclosure,7
bankruptcy proceedings, or involuntary transfer. In the event of8
financial distress with respect to any of the trust's capital improvement9
projects, the sole remedy available shall be a corrective action plan10
approved by the board and any affected resident council.11
Sec. 8. (1) The following shall apply to any development that is12
subject to an agreement under section 5 of this act and that has13
undergone a preservation conversion: 14
(a) Rent shall be capped at thirty percent of the resident's15
household income; 16
(b) Residents shall have the right to return to the development if17
temporary relocation is required for safety or construction;18
(c) Residents shall only be evicted for just cause, and any19
residents who are evicted shall have access to expedited grievance20
procedures; and 21
(d) Residents shall not be subject to income discrimination, lease22
changes, or service reductions due to the conversion.23
(2) No contract, bond covenant, or intergovernmental agreement shall24
be enforceable if it materially impairs the resident protections provided25
in this section. 26
Sec. 9. Any development that is subject to an agreement under27
section 5 of this act and that has undergone a preservation conversion28
shall establish a resident council. The resident council shall have the29
power to: 30
(1) Approve annual capital improvement plans;31
LB1045
2026
LB1045
2026
-6-
(2) Review maintenance budget allocations; 1
(3) Participate in contractor selection; 2
(4) Deny private management proposals; and 3
(5) Review and approve performance metrics. 4
Sec. 10. (1) The trust shall create a website containing the5
following information with respect to developments that are subject to an6
agreement under section 5 of this act: 7
(a) Work orders; 8
(b) Resident complaints and outcomes; 9
(c) Construction timelines; 10
(d) Capital expenditures; 11
(e) Contractor performance; 12
(f) Eviction data; and 13
(g) Resident satisfaction metrics. 14
(2) The trust shall submit quarterly reports on its activities to15
the Legislature and to each resident council. The reports submitted to16
the Legislature shall be submitted electronically.17
Sec. 11. (1) The trust shall adopt local hiring standards that18
apply to construction projects involving developments that are subject to19
an agreement under section 5 of this act. Such hiring standards shall20
require that: 21
(a) At least thirty-five percent of the labor hours be performed by22
public housing residents; and 23
(b) An additional thirty percent of the labor hours be performed by24
businesses located in low-income neighborhoods in the relevant community.25
(2) Each construction project involving a development that is26
subject to an agreement under section 5 of this act shall include a27
community benefits agreement with commitments regarding:28
(a) Job training; 29
(b) Youth programs; 30
(c) Onsite community services; 31
LB1045
2026
LB1045
2026
-7-
(d) Environmental improvements; 1
(e) Use of minority-owned and women-owned businesses; and2
(f) Neighborhood stabilization initiatives. 3
Sec. 12. (1) Bonds issued by the trust shall be backed by:4
(a) Project-based federal vouchers; 5
(b) Contributions from the municipality or county in which the6
development is located; or 7
(c) Funds available in the Public Housing Capital Stabilization8
Fund. 9
(2) The Public Housing Capital Stabilization Fund is created. The10
fund shall be administered by the trust and shall include money received11
from private donations and federal grants. Any money in the fund12
available for investment shall be invested by the state investment13
officer pursuant to the Nebraska Capital Expansion Act and the Nebraska14
State Funds Investment Act. 15
(3) Bond proceeds shall be used for capital improvements for16
developments that are subject to an agreement under section 5 of this17
act. 18
Sec. 13. The trust may undertake the preservation conversion of19
developments subject to an agreement under section 5 of this act in20
phases of five thousand units, contingent upon: 21
(1) Positive annual evaluations from the Auditor of Public Accounts;22
(2) Stable financial performance; 23
(3) No increase in eviction rates; 24
(4) Resident satisfaction above a defined threshold set by the25
trust; and 26
(5) Compliance with the requirements of section 8 of this act.27
Sec. 14. If the conditions within any development that is subject28
to an agreement under section 5 of this act pose an imminent threat to29
the health and safety of the residents of such development, the trust may30
enter into emergency contracts with contractors to address such31
LB1045
2026
LB1045
2026
-8-
conditions without the need to follow the procurement procedures that1
would otherwise be applicable. 2
Sec. 15. Any affected resident council or any group of not fewer3
than ten affected residents shall have standing to bring an action for4
injunctive or declaratory relief to enforce the provisions of the5
Nebraska Public Housing Preservation Trust Act. 6
Sec. 16. This act becomes operative on July 1, 2026.7
Sec. 17. Since an emergency exists, this act takes effect when8
passed and approved according to law. 9
LB1045
2026
LB1045
2026
-9-