LINCOLN, NEBRASKA — A legislative bill aimed at preventing local governments from imposing rent controls on private properties has taken a significant step forward in Nebraska. Despite some opposition, Legislative Bill 266 (LB 266), introduced by State Senator Rob Dover of Norfolk, advanced on a 32-5 vote in the Nebraska Legislature on Monday.
The bill generally prohibits cities and counties from enforcing rent control laws on private properties. However, two key exceptions allow for ordinances that aim to boost affordable housing through land-use policies or inclusionary housing requirements. It also permits landlords to voluntarily agree to rent restrictions under specific programs.
Supporters Say the Bill Encourages Housing Investments
Sen. Rob Dover, the bill’s sponsor, emphasized that similar laws exist in 37 other states and argued that this measure would attract real estate investors to build more rental properties.
“We need to look at what’s happening nationwide and stay ahead of the curve,” said Dover. He believes that rent control discourages development and that preventing such policies would encourage more construction of rental housing in Nebraska.
Sen. Mike Jacobson of North Platte, a strong supporter of the bill, said the housing market should be ruled by supply and demand rather than government intervention.
“If you want lower rent, you either have to accept lower-quality housing or work on reducing property taxes, insurance costs, and interest rates,” Jacobson stated.
Jacobson also argued that private landlords need the flexibility to set rents based on market conditions so they can meet their financial obligations.
Opposition: “Unnecessary and Restrictive”
However, not everyone agrees. Democratic lawmakers, including Sen. John Cavanaugh of Omaha, criticized LB 266 as unnecessary since no Nebraska city has proposed rent control policies.
“This bill doesn’t solve a problem, but it could create more problems,” Cavanaugh said. “It prevents cities from exploring innovative solutions for the affordable housing crisis.”
Sen. Ashlei Spivey of Omaha shared similar concerns, arguing that local governments should have the flexibility to consider policies that work best for their communities.
Sen. Terrell McKinney of Omaha highlighted that the real issue isn’t preventing rent controls but rather finding ways to increase affordable housing.
“We should be focusing on creating more housing, not stopping potential solutions,” McKinney said.
Potential Conflict of Interest Raises Questions
The bill also raised ethical concerns regarding conflicts of interest among lawmakers involved in real estate.
Sen. Rita Sanders of Bellevue, who leads the committee that advanced LB 266, disclosed a potential conflict of interest since her husband owns commercial and residential retirement properties. However, she did not recuse herself from discussions, stating that any potential benefit was “highly unlikely.”
Sen. Rob Dover, whose business also manages rental properties, did not file a conflict of interest statement, saying he saw no personal financial gain from the bill.
What’s Next?
Despite opposition, LB 266 has moved forward, and further discussions are expected before a final decision. The debate highlights the tension between state control and local decision-making, as well as the ongoing struggle to address affordable housing in Nebraska.
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