Mayor Leirion Gaylor Baird announced Monday that a new affordable housing initiative that will provide home buyers in some areas of Lincoln with a $5,000 tax credit. The new tool is available because of the passage of LB86 in the Nebraska Legislature earlier this year, and because of the work of the City’s Urban Development Department.
The new law takes effect January 1 and allows cities to designate certain areas as “extremely blighted.” Those buying a home for owner occupancy in one of these areas will qualify for a one-time $5,000 credit on their State income tax.
“Maintaining and increasing the supply of safe, quality affordable housing is essential for Lincoln families as our City continues to grow,” said Mayor Gaylor Baird. “The tax credit is a huge benefit to those looking to make the step into home ownership. That kind of social investment into neighborhoods is a key part of our revitalization strategies.”
To qualify as extremely blighted, an area must meet three criteria:
Mayor Gaylor Baird thanked the City’s Urban Development Department for conducting the required study and determining the areas that meet the criteria. The mayor also said the new tools are going into effect at the same time as the community is developing its Affordable Housing Action Plan. The plan is being developed with the help of a national consultant in partnership with neighborhoods, nonprofits and the private sector.
Eligible areas and the study are available at urban.lincoln.ne.gov (listed under “new”).
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