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LEGISLATURE OF NEBRASKA
ONE HUNDRED NINTH LEGISLATURE
SECOND SESSION
LEGISLATIVE BILL 811
Introduced by Dover, 19.
Read first time January 07, 2026
Committee: Urban Affairs
A BILL FOR AN ACT relating to the Nebraska Municipal Land Bank Act; to1
amend sections 18-3404 and 18-3405, Reissue Revised Statutes of2
Nebraska; to change provisions relating to the municipalities3
authorized to form their own land banks; to harmonize provisions;4
and to repeal the original sections. 5
Be it enacted by the people of the State of Nebraska,6
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Section 1. Section 18-3404, Reissue Revised Statutes of Nebraska, is1
amended to read: 2
18-3404 (1) A single municipality may create a land bank if the3
municipality is a city of the metropolitan class or city of the primary4
class. Such municipality shall create the land bank by the adoption of an5
ordinance which specifies the following: 6
(a) The name of the land bank; 7
(b) The initial individuals to serve as members of the board and the8
length of terms for which they are to serve; and 9
(c) The qualifications and terms of office of members of the board.10
(2) Two or more municipalities may elect to enter into an agreement11
pursuant to the Interlocal Cooperation Act to create a single land bank12
to act on behalf of such municipalities, which agreement shall contain13
the information required by subsection (1) of this section.14
(3) A municipality may elect to join an existing land bank by15
entering into an agreement pursuant to the Interlocal Cooperation Act16
with a municipality city of the metropolitan class or city of the primary17
class that has created a land bank pursuant to subsection (1) of this18
section or by joining an existing agreement pursuant to the Interlocal19
Cooperation Act with the municipalities that formed a land bank pursuant20
to subsection (2) of this section. Agreements entered into or joined21
under this subsection shall contain the information required by22
subsection (1) of this section. 23
(4) Each land bank created pursuant to the Nebraska Municipal Land24
Bank Act shall be deemed to be a public corporation acting in a25
governmental capacity and a political subdivision of the state and shall26
have permanent and perpetual duration until terminated and dissolved in27
accordance with section 18-3414. 28
(5) The primary goal of any land bank shall be to facilitate the29
return of vacant, abandoned, and tax-delinquent properties to productive30
use. 31
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Sec. 2. Section 18-3405, Reissue Revised Statutes of Nebraska, is1
amended to read: 2
18-3405 (1) If a land bank is created by a single municipality3
pursuant to subsection (1) of section 18-3404, the board of such land4
bank shall meet the following requirements: 5
(a) The board shall consist of: 6
(i) Seven voting members appointed by the chief executive officer of7
the municipality that created the land bank and confirmed by a two-thirds8
vote of the governing body of such municipality; and9
(ii) The following nonvoting members: 10
(A) The planning director of the municipality that created the land11
bank or his or her designee or, if there is no planning director, a12
person designated by the governing body of the municipality that created13
the land bank; 14
(B) One member of the governing body of the municipality that15
created the land bank, appointed by such governing body; and16
(C) Such other nonvoting members as are appointed by the chief17
executive officer of the municipality that created the land bank and18
confirmed by a two-thirds vote of the governing body of such19
municipality; 20
(b) The seven voting members of the board shall be residents of the21
municipality that created the land bank; 22
(c) If the governing body of the municipality creating the land bank23
has any of its members elected by district or ward, then at least one24
voting member of the board shall be appointed from each such district or25
ward. Such voting members shall represent, to the greatest extent26
possible, the racial and ethnic diversity of the municipality creating27
the land bank; 28
(d) The seven voting members of the board shall have, collectively,29
verifiable skills, expertise, and knowledge in market-rate and affordable30
residential, commercial, industrial, and mixed-use real estate31
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development, financing, law, purchasing and sales, asset management,1
economic and community development, and the acquisition of tax sale2
certificates; 3
(e) The seven voting members of the board shall include:4
(i) At least one member representing a chamber of commerce;5
(ii) At least one member with experience in banking;6
(iii) At least one member with experience in real estate7
development; 8
(iv) At least one member with experience as a realtor;9
(v) At least one member with experience in nonprofit or affordable10
housing; and 11
(vi) At least one member with experience in large-scale residential12
or commercial property rental; and 13
(f) A single voting member may satisfy more than one of the14
requirements provided in subdivision (1)(e) of this section if he or she15
has the required qualifications. It is not necessary that there be a16
different member to fulfill each such requirement.17
(2) If a land bank is created by more than one municipality pursuant18
to an agreement under the Interlocal Cooperation Act as described in19
subsection (2) or (3) of section 18-3404, the board of such land bank20
shall meet the following requirements: 21
(a) The board shall consist of: 22
(i) An odd number of voting members, totaling at least seven,23
appointed by the chief executive officers of the municipalities that24
created the land bank, as mutually agreed to by such chief executive25
officers, and confirmed by a two-thirds vote of the governing body of26
each municipality that created the land bank; and 27
(ii) The following nonvoting members: 28
(A) The planning director of each municipality that created the land29
bank or his or her designee or, if there is no planning director for any30
municipality that created the land bank, a person designated by the31
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governing body of such municipality; 1
(B) One member of the governing body of each municipality that2
created the land bank, appointed by the governing body on which such3
member serves; and 4
(C) Such other nonvoting members as are appointed by the chief5
executive officers of the municipalities that created the land bank, as6
mutually agreed to by such chief executive officers, and confirmed by a7
two-thirds vote of the governing body of each municipality that created8
the land bank; 9
(b) Each voting member of the board shall be a resident of one of10
the municipalities that created the land bank. If a land bank is created11
by a city of the metropolitan class or a city of the primary class, at12
least one voting member of the board shall be appointed from each of the13
municipalities that created the land bank; 14
(c) The voting members of the board shall have, collectively,15
verifiable skills, expertise, and knowledge in market-rate and affordable16
residential, commercial, industrial, and mixed-use real estate17
development, financing, law, purchasing and sales, asset management,18
economic and community development, and the acquisition of tax sale19
certificates; 20
(d) The voting members of the board shall include:21
(i) At least one member representing a chamber of commerce;22
(ii) At least one member with experience in banking;23
(iii) At least one member with experience in real estate24
development; 25
(iv) At least one member with experience as a realtor;26
(v) At least one member with experience in nonprofit or affordable27
housing; and 28
(vi) At least one member with experience in large-scale residential29
or commercial property rental; and 30
(e) A single voting member may satisfy more than one of the31
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requirements provided in subdivision (2)(d) of this section if he or she1
has the required qualifications. It is not necessary that there be a2
different member to fulfill each such requirement. 3
(3) The members of the board shall select annually from among4
themselves a chairperson, a vice-chairperson, a treasurer, and such other5
officers as the board may determine. 6
(4) A public official or public employee shall be eligible to be a7
member of the board. 8
(5) A vacancy on the board among the appointed board members shall9
be filled not later than six months after the date of such vacancy in the10
same manner as the original appointment. 11
(6) Board members shall serve without compensation.12
(7) The board shall meet in regular session according to a schedule13
adopted by the board and shall also meet in special session as convened14
by the chairperson or upon written notice signed by a majority of the15
voting members. The presence of a majority of the voting members of the16
board shall constitute a quorum. 17
(8) Except as otherwise provided in this section and in sections18
18-3410, 18-3417, and 18-3418, all actions of the board shall be approved19
by the affirmative vote of a majority of the voting members present and20
voting. 21
(9) Any action of the board on the following matters shall be22
approved by a majority of the voting members: 23
(a) Adoption of bylaws and other rules and regulations for conduct24
of the land bank's business; 25
(b) Hiring or firing of any employee or contractor of the land bank.26
This function may, by majority vote of the voting members, be delegated27
by the board to a specified officer or committee of the land bank, under28
such terms and conditions, and to the extent, that the board may specify;29
(c) The incurring of debt; 30
(d) Adoption or amendment of the annual budget; and31
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(e) Sale, lease, encumbrance, or alienation of real property,1
improvements, or personal property with a value of more than fifty2
thousand dollars. 3
(10) Members of a board shall not be liable personally on the bonds4
or other obligations of the land bank, and the rights of creditors shall5
be solely against such land bank. 6
(11) The board of a land bank created by a city of the metropolitan7
class that borders a county in which at least three cities of the first8
class are located shall adopt policies and procedures to specify the9
conditions that must be met in order for such land bank to give an10
automatically accepted bid as authorized in sections 18-3417 and 18-3418.11
The adoption of such policies and procedures shall require the approval12
of two-thirds of the voting members of the board. At a minimum, such13
policies and procedures shall ensure that the automatically accepted bid14
shall only be given for one of the following reasons:15
(a) The real property substantially meets more than one of the16
following criteria as determined by two-thirds of the voting members of17
the board: 18
(i) The property is not occupied by the owner or any lessee or19
licensee of the owner; 20
(ii) There are no utilities currently being provided to the21
property; 22
(iii) Any buildings on the property have been deemed unfit for human23
habitation, occupancy, or use by local housing officials;24
(iv) Any buildings on the property are exposed to the elements such25
that deterioration of the building is occurring; 26
(v) Any buildings on the property are boarded up;27
(vi) There have been previous efforts to rehabilitate any buildings28
on the property; 29
(vii) There is a presence of vermin, uncut vegetation, or debris30
accumulation on the property; 31
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(viii) There have been past actions by the municipality to maintain1
the grounds or any building on the property; or 2
(ix) The property has been out of compliance with orders of local3
housing officials; 4
(b) The real property is contiguous to a parcel that meets more than5
one of the criteria in subdivision (11)(a) of this section or that is6
already owned by the land bank; or 7
(c) Acquisition of the real property by the land bank would serve8
the best interests of the community as determined by two-thirds of the9
voting members of the board. In determining whether the acquisition would10
serve the best interests of the community, the board shall take into11
consideration the hierarchical ranking of priorities for the use of real12
property conveyed by a land bank established pursuant to subsection (5)13
of section 18-3410, if any such hierarchical ranking is established.14
(12)(a) A member of the board may be removed for neglect of duty,15
misconduct in office, conviction of any felony, or other good cause as16
follows: 17
(i) In the case of a land bank created pursuant to subsection (1) of18
section 18-3404, a board member may be removed by the chief executive19
officer of the municipality that created the land bank after such removal20
has been approved by a two-thirds vote of the governing body of such21
municipality; or 22
(ii) In the case of a land bank created pursuant to subsection (2)23
or (3) of section 18-3404, a board member may be removed by the chief24
executive officer of the municipality where the member resides after such25
removal has been approved by a two-thirds vote of the governing body of26
such municipality. 27
(b) Such chief executive officer shall send a notice of removal to28
such board member, which notice shall set forth the charges against him29
or her. The member shall be deemed removed from office unless within ten30
days from the receipt of such notice he or she files a request for a31
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hearing. Such request shall be filed with: 1
(i) In the case of a land bank created pursuant to subsection (1) of2
section 18-3404, the city clerk or village clerk of the municipality city3
that created the land bank; or 4
(ii) In the case of a land bank created pursuant to subsection (2)5
or (3) of section 18-3404, the city clerk or village clerk of the6
municipality where the member resides. 7
(c) If a request for hearing is so filed, the governing body of the8
municipality receiving the request shall hold a hearing not sooner than9
ten days after the date a hearing is requested, at which hearing the10
board member shall have the right to appear in person or by counsel and11
the governing body shall determine whether the removal shall be upheld.12
If the removal is not upheld by the governing body, the board member13
shall continue to hold his or her office. 14
Sec. 3. Original sections 18-3404 and 18-3405, Reissue Revised15
Statutes of Nebraska, are repealed. 16
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