Legislature Considers Bills That Could Impact Land Banks

By Gordon HopkinsCurrently under consideration by the Nebraska Legislature are three bills that could impact how land banks operate should they pass. Fairbury City Attorney Kurth Brashear of Rembolt Ludtke, LLP, who also serves as the attorney for the South Jefferson Land Bank, gave an update to the land bank board at a meeting on Wednesday February 11, 2026. LB 811A land bank is an entity created by a municipality which generally allows for the acquisition, maintenance, development, and disposition of real property for the purpose of returning it to productive use.Currently, only metropolitan and primary class cities can form a land bank. Second class cities and smaller municipalities must partner with others in order to form a land bank, which is why the South Jefferson Land Bank is a partnership between the City of Fairbury and the Village of Endicott. As introduced the bill would allow any municipality to form a land bank.While that aspect of the bill would not impact the South Jefferson Land Bank, a proposed amendment by Senator Robert Dover will. The amendment would require land banks to make their properties available to commercial developers before it can be offered to the general public.“Apparently, there’s a lot of legislation in Lincoln right now being drafted to respond to a specific scenario,” said Brashear, who noted that one land bank did not first offer a property to a commercial developer. “Somebody else bought it and it sat vacant for two years. And that seems to be irritating Senator Dover.”The bill was before the Urban Affairs Committee on February 10, 2026.Brashear observed, “One of the things I would tell you is clear from testimony yesterday is there certainly a difference between how large municipalities with land banks think about the issues they have to deal with and the issues that South Jefferson and maybe your fellow smaller land banks have to deal with.” LB 964Another bill is not specifically directed at land banks but could have an impact. As introduced, LB 964 would require any political subdivision, including a land bank, to hold a public hearing on the sale, lease, or purchase of real property. If the governing body decides to proceed, it would need to complete the transaction within two months of the public hearing and, if it fails to do so, hold a new hearing.Brashear said, “Again, I’m going to make the observation this bill is in response to a very specific problem, which was one of our public power districts buying a lot from one of its executives at a fairly significant above market rate. And so, we have a lot of legislation being introduced to address one situation.” LB 1135The third bill, LB 1135, would relax certain requirements of land bank board members, modifies land bank powers and revises reporting requirements.The changes would: Allow voting board members to reside in Jefferson County, although a majority would be required to reside in Fairbury; Relax the specified experience requirements for voting board members to “community development, real estate, and housing”; Allow the Fairbury Mayor to remove a board member upon a two-thirds vote of the Fairbury City Council; Restrict acquisition of commercial zoned properties and change provisions related to depositing of properties with a land bank to clear title issues; Change the reporting to member municipalities to every month in which the board meets or at least quarterly; and Require that the annual report only be submitted to the Urban Affairs Committee.Brashear testified in support of LB 1135’s relaxation of specified experience requirements to the Urban Affairs Committee on behalf of SJLB on February 10.

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