Read the full stored bill text
LEGISLATURE OF NEBRASKA
ONE HUNDRED NINTH LEGISLATURE
SECOND SESSION
LEGISLATIVE BILL 1246
Introduced by Dover, 19.
Read first time January 21, 2026
Committee: Banking, Commerce and Insurance
A BILL FOR AN ACT relating to money and financing; to amend section1
58-201, Revised Statutes Cumulative Supplement, 2024, and section2
58-708, Revised Statutes Supplement, 2025; to define terms; to3
provide duties for the Nebraska Investment Finance Authority; to4
change provisions relating to reporting requirements under the5
Nebraska Affordable Housing Act; to harmonize provisions; and to6
repeal the original sections. 7
Be it enacted by the people of the State of Nebraska,8
LB1246
2026
LB1246
2026
-1-
Section 1. Section 58-201, Revised Statutes Cumulative Supplement,1
2024, is amended to read: 2
58-201 Sections 58-201 to 58-273 and section 2 of this act shall be3
known and may be cited as the Nebraska Investment Finance Authority Act.4
Sec. 2. (1) For purposes of this section: 5
(a) Budget administrator means the budget administrator of the6
budget division of the Department of Administrative Services; and7
(b) Public funds has the same meaning as in section 81-11,106.8
(2) The authority shall: 9
(a) Record all revenue, fund balances, and expenditures from all10
public funds in an accounting system; 11
(b) Submit a report to the budget administrator, the Legislative12
Fiscal Analyst, and the Director of Economic Development showing the13
condition of public funds held by the authority. Such report shall be14
submitted at least twenty days before the commencement of each regular15
session of the Legislature; 16
(c) Submit an accounting of transactions undertaken with public17
funds to the budget administrator, the Legislative Fiscal Analyst, and18
the Director of Economic Development. Such accounting shall be submitted19
on a monthly basis and at the request of the budget administrator, the20
Legislative Fiscal Analyst, or the Director of Economic Development. Such21
accounting shall include the amount of payments on grant and loan awards22
with public funds, invoices of expenditures made on grant and loan awards23
with public funds, and expenditures on administration and contracting24
which utilized public funds; and 25
(d) Furnish to the budget administrator, the Legislative Fiscal26
Analyst, and the Director of Economic Development, at any such27
individual's request, any information in the authority's possession,28
including records received from other officers, boards, commissions, or29
departments of state government, whether such information is retained in30
computer files or otherwise, if such information is directly related to31
LB1246
2026
LB1246
2026
-2-
the expenditure, planned or actual, of public funds.1
Sec. 3. Section 58-708, Revised Statutes Supplement, 2025, is2
amended to read: 3
58-708 (1) During each calendar year in which funds are available4
from the Affordable Housing Trust Fund for use by the Department of5
Economic Development, the department shall make its best efforts to6
allocate not less than thirty percent of such funds to each congressional7
district. The department shall announce a grant and loan application8
period of at least ninety days duration for all projects. Before a grant9
application for any new construction project can be submitted to the10
department, the land for the project shall be identified. In selecting11
projects to receive trust fund assistance, the department shall develop a12
qualified allocation plan and give first priority to financially viable13
projects that serve the lowest income occupants for the longest period of14
time. The qualified allocation plan shall: 15
(a) Set forth selection criteria to be used to determine housing16
priorities of the housing trust fund which are appropriate to local17
conditions, including the community's immediate need for affordable18
housing, proposed increases in home ownership, private dollars leveraged,19
level of local government support and participation, and repayment, in20
part or in whole, of financial assistance awarded by the fund; and21
(b) Give first priority in allocating trust fund assistance among22
selected projects to those projects which are located in whole or in part23
within an enterprise zone designated pursuant to the Enterprise Zone Act24
or an opportunity zone designated pursuant to the federal Tax Cuts and25
Jobs Act, Public Law 115-97, serve the lowest income occupant, are26
located in an area that has been declared an extremely blighted area27
under section 18-2101.02, and are obligated to serve qualified occupants28
for the longest period of time. 29
(2) Beginning on July 1, 2026: 30
(a) The Department of Economic Development shall disburse grant31
LB1246
2026
LB1246
2026
-3-
funds to a qualified recipient equal to eighty percent of the housing1
development costs of such recipient, excluding general administration2
costs, housing management fees, lead-based paint test costs, and3
technical assistance costs, once the department approves such recipient4
for grant funds; and 5
(b) The department shall disburse grant funds to a qualified6
recipient equal to twenty percent of the housing development costs of7
such recipient, excluding general administration costs, housing8
management fees, lead-based paint test costs, and technical assistance9
costs, upon the completion of the project. 10
(3)(a) Beginning on October 1, 2025, a qualified recipient shall11
submit to the Department of Economic Development a schedule of uses of12
funds for eligible activities on a quarterly basis, no later than thirty13
days after the end of each calendar quarter, during the time of14
performance under the award agreement. 15
(b) The schedule of uses of funds for eligible activities shall16
include an itemization of costs for eligible activities. If reasonable,17
the department may require source documentation and proof of payment,18
including, but not limited to, a paid invoice, completed payment, or19
cleared check, to be submitted with the schedule as evidence of20
appropriate use of funds. Qualified recipients shall ensure proper use of21
funds. The department is not responsible for the audit or approval of22
each of the qualified recipient's transactions involving funds.23
(c) The department may initiate any of the following actions if a24
qualified recipient does not submit a schedule of uses of funds for25
eligible activities: 26
(i) Disqualification of the qualified recipient in pending27
applications for the Affordable Housing Trust Fund;28
(ii) Disqualification of the qualified recipient in pending29
applications for other department programs; 30
(iii) Disqualification of the qualified recipient as an eligible31
LB1246
2026
LB1246
2026
-4-
applicant for Affordable Housing Trust Fund applications for up to1
twenty-four months from the date of the department action; or2
(iv) Other actions deemed necessary by the department to meet the3
department's responsibility to ensure proper use of funds so long as such4
actions do not unduly harm a qualified recipient's reputation and ability5
to successfully operate in Nebraska. This subdivision does not prohibit6
the department from taking appropriate actions against qualified7
recipients that have committed illegal actions, such as fraud and theft.8
(4) Beginning July 1, 2027, the department shall prescribe annual9
reporting requirements to collect sufficient information from qualified10
recipients to determine the amount of funds obligated to projects, the11
repayment terms of such funds, and the current balance of funds unspent12
or repaid. The reporting requirements shall also require qualified13
recipients to provide an accounting of awards granted for the purpose14
described in subdivision (10) of section 58-706, including the award15
amount and estimates related to equity earned on homes purchased with16
such awards. If a qualified recipient fails to meet the reporting17
requirements of this subsection, such qualified recipient may be required18
to return all awarded funds to the department and transfer equity19
positions of recoverable housing assistance funds to the department to20
the satisfaction of the department. 21
(5) (4) The Department of Economic Development shall fund in order22
of priority as many applications as will utilize available funds less23
actual administrative costs of the department in administering the24
program. In administering the program the department may contract for25
services or directly provide funds to other governmental entities or26
instrumentalities. 27
(6)(a) (5)(a) The Department of Economic Development may recapture28
any funds which were allocated to a qualified recipient for an eligible29
project through an award agreement if such funds were not utilized for30
eligible costs within the time of performance under the agreement and are31
LB1246
2026
LB1246
2026
-5-
therefore therefor no longer obligated to the project.1
(b) Upon completion of a project, the department shall recapture a2
percentage of the funds which were allocated to a qualified recipient for3
an eligible project through an award agreement equal to the percentage of4
the housing development the qualified recipient agreed to construct under5
the award agreement but failed to complete. Any funds recaptured under6
this subdivision shall be credited to the Affordable Housing Trust Fund.7
(c) A qualified recipient shall recapture any funds allocated to8
such recipient from the Affordable Housing Trust Fund that are provided9
to a homebuyer by the recipient as financial assistance for the purchase10
of a home upon sale of such home from the net proceeds of such sale, if11
any. 12
Sec. 4. Original section 58-201, Revised Statutes Cumulative13
Supplement, 2024, and section 58-708, Revised Statutes Supplement, 2025,14
are repealed. 15
LB1246
2026
LB1246
2026
-6-