The City of Omaha Modifies Tax Increment Financing Policy To Protect and Promote Affordable Housing

The Omaha City Council (the “City Council”) has made a highly-anticipated change to directly tie its existing tax-increment financing (“TIF”) policy to affordable housing. Developers must now satisfy certain prerequisites that focus on affordable housing to receive TIF funding for residential projects. 

These changes result from the Planning Department convening the Affordable Housing Task Force and the Tax Increment Financing Committee to analyze the City of Omaha’s affordable housing needs. After several months of research, this joint committee issued twelve recommendations. 

On September 1, 2026, the City Council passed Resolution No. 2026‑0726 on a 5-2 vote. The resolution adopted five “Phase 1” recommendations. These new policies are:

• TIF Application Submittals Must Include Housing Information. TIF applicants must now submit information for all housing units within the proposed redevelopment project boundary. This includes the number of residential units and bedrooms and current rent rolls and existing lease expiration dates, as applicable.
• Developers Must Submit Annual Rent Rolls. For the duration of the TIF division period, developers must annually submit all rent rolls for TIF projects that contain rental housing.
• Developers Must Disclose Sales Price Data. For the duration of the TIF period, developers must submit documentation of sale price(s) for all units of a TIF project that contain a for-sale housing component. 
• Income-Restricted Housing Projects Receive Expedited Processing. For all TIF projects that use an income-restricted housing component, the City Council will assign a “Development Process Concierge” to work with the developer throughout the entitlement process.
• The City Implements a No Net Loss Policy. All TIF projects that require demolition of existing residential dwelling units must either (i) rebuild the same number of dwelling units, or (ii) remit a payment-in-lieu of replacement housing to the Affordable Housing Development Fund. 

At the September 1 meeting, the City Council discussed changes to the State of Nebraska’s Community Development Law that governs the issuance of TIF. These could include increasing the total TIF period by five years and establishing a TIF revolving loan fund or tax abatement structure. The City Council would have to work with the Nebraska Legislature to effectuate changes to state law.

The City Council also discussed designating additional areas within the City of Omaha as community redevelopment areas. These new areas would be for the primary purpose of using TIF for affordable housing projects.

We will continue to monitor the City Council’s action on these further items. We will provide updates as necessary. 

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Attorneys at Baird Holm LLP have deep experience in real estate law and real estate development, including permitting, financing, and obtaining governmental entitlements such as tax-increment financing.  Please reach out if you have questions.