PREPARED BY: Clinton Verner
LB 622 DATE PREPARED: February 20, 2025
PHONE: 402-471-0056
Revision: 00
FISCAL NOTE
LEGISLATIVE FISCAL ANALYST ESTIMATE
ESTIMATE OF FISCAL IMPACT – STATE AGENCIES (See narrative for political subdivision estimates)
FY 2025-26 FY 2026-27
EXPENDITURES REVENUE EXPENDITURES REVENUE
GENERAL FUNDS
CASH FUNDS $3,023,000 $3,023,000 $4,799,000 $4,799,000
FEDERAL FUNDS
OTHER FUNDS
TOTAL FUNDS $3,023,000 $3,023,000 $4,799,000 $4,799,000
Any Fiscal Notes received from state agencies and political subdivisions are attached f ollowing the Legislative Fiscal Analyst Estimate.
LB622 would make the following amendments to the the Affordable Housing Trust Fund (AHTF):
- Creates a new program, the Statewide Housing Assistance Program (SHAP);
- Expands the AHTF to allow for down payment assistance under SHAP;
- Allows for individuals to receive loans from the AHTF under SHAP;
- Expands AHTF to allow homebuyers to receive assistance; and
- Gives priority under AHTF to allocating trust fund assistance to homebuyers in enter prise zones or opportunity zones or in
areas declared extremely blighted .
LB622 creates a new program , SHAP, for providing down payment assistance for homebuyers. LB622 would allow the Department of
Economic Development (DED) to promulgate rules and regulations concerning eligibi lity for homebuyers under SHAP, defines down
payment assistance and caps the assistance to $30,000 per homebuyer.
LB622 raises the Documentary Stamp Tax from $2.25 to $2.55 and credits the difference to the AHTF. Estimates for re venue and
administrative cost provided by the Department of Economic Development appears reasonable. Revenue related to recoupment o f the
loans is not included on this fiscal note as the timing and amounts are unknown and would likely occur outside of this biennium. LB622
does not prescribe the amount allocated to SHAP, for the purposes of this f iscal note it is presumed the new revenue is dedicated to
SHAP.
ADMINISTRATIVE SERVICES STATE BUDGET DIVIS ION: REVIEW OF AGENCY & POLT. SUB. RESPONSE
LB: 468 AM: AGENCY/POLT. SUB: Department of Economic Development
REVIEWED BY: Ryan Yang DATE: 2/1/2025 PHONE: (402) 471- 4178
COMMENTS: The Department of Economic Development assessment of fiscal impact from LB 468 appears reasonable.
Please complete ALL (5) blanks in the first three lines. 2025
LB
(1) 622 FISCAL NOTE
State Agency OR Political Subdivision Name:
(2)
Department of Economic Development
Prepared by:
(3) Dave Dearmont Date Prepared:
(4)
1/27/2025 Phone:
(5)
(402) 471-3777
ESTIMATE PROVIDED BY STATE AGENCY OR POLITICAL SUBDIVISION
FY 2025-26 FY 2026-27
EXPENDITURES REVENUE EXPENDITURES REVENUE
GENERAL FUNDS
CASH FUNDS
$3,292,000 $3,292,000 $4,735,000 $4,735,000
FEDERAL FUNDS
OTHER FUNDS
TOTAL FUNDS
$3,292,000 $3,292,000 $4,735,000 $4,735,000
Explanation of Estimate:
LB622 would create the Statewide Housing Assistance Program (SHAP), administered by a nonprofit organization
under a contract from DED. The bill would amend section 58-706 to make downpayment assistance under SHAP,
an eligible for assistance under the Affordable Housing Trust Fund (AHTF), and Section 58-707 would be amended
to allow individuals to receive direct loans form the AHTF pursuant to the SHAP. Qualifying homebuyers would be
eligible for a loan of up to $30,000 to assist with the down payment on the homebuyer’s primary residence. Loans
under the program would be repaid upon transfer of title of the home and will be subject to a lien for the amount of
assistance. Under SHAP, the first priority in allocating assistance among homebuyers is to homebuyers that have
the lowest incomes and are located in enterprise or opportunity zones, and in areas that have been declared
extremely blighted.
LB622 would also increase the Documentary Stamp Tax from $2.25 per $1,000 of value to $2.55, with the increased
$0.30 credited to the AHTF. The bill does not specify how much of the AHTF should be dedicated to the SHAP. It is
estimated that the increase in the distribution to the AHTF would result in approximately $3.292 million and $4.735
million in FY2025-26 and FY2026-27, respectively.
Costs to implement the provisions of LB622 include an Economic Development Manager to oversee the program
and the contractor’s work, and an IT Data/Database Analyst to manage the applications and data in the
department’s grant management system. We estimate that the cost of the nonprofit contractor to administer the
program would be $300,000 per year. Included in the operating costs are $300,000 for contracting with a nonprofit
agency to administer the SHAP program, $1,710 for licenses for the department’s grant management software and
$3,700 for additional office rent.
_____________________________________________________________________________________________________ _
BREAKDOWN BY MAJOR OBJECTS OF EXPENDITURE
Personal Services:
POSITION TITLE
NUMBER OF POSITIONS
25-26 26-27
2025-26
EXPENDITURES
2026-27
EXPENDITURES
G49550 Econ Dev Manager 0.75 1.0 $52,920 $70,560
A07051 IT Data/Database Analyst 0.25 0.25 18,460 18,460
Benefits………………………………...…… 24,990 31,160
Operating…………………………...………. 427,890 459,470
Travel……………………………………….. 7,140 9,350
Capital outlay…………………...………….. 8,600 0
Aid…………………………………………... 2,257,000 4,146,000
Capital improvements……………………...
TOTAL……………………………… ..... $3,292,000 $4,735,000
LB 622 Fiscal Note 2025
State Agency Estimate
State Agency Name: Department of Revenue Date Due LFO:
Approved by: James R. Kamm Date Prepared: 02/18/2025 Phone: 471-5896
FY 2025-2026 FY 2026-2027 FY 2027-2028
Expenditures Revenue Expenditures Revenue Expenditures Revenue
General Funds
Cash Funds $2,754,000 $4,863,000 $5,009,000
Federal Funds
Other Funds
Total Funds $2,754,000 $4,863,000 $5,009,000
Major Objects of Expenditure
25-26 26-27 27-28 25-26 26-27 27-28
Class Code Classification Title FTE FTE FTE Expenditures Expenditures Expenditures
Benefits………………………………………………………………………………………………………….
Operating Costs………………………………………………………………………………………………….
Travel……………………………………………………………………………………………………………
Capital Outlay…………………………………………………………………………………………………...
Capital Improvements…………………………………………………………………………………………...
Total…………………………………………………………………………………………………………….
LB 622 creates the Statewide Housing Assistance Program (Program). The Program will be administered by a
nonprofit corporation contracted by the Department of Economic Development. The purpose of the Program is
to provide downpayment assistance loans towards the purchase of a new home.
LB 622 raises the documentary stamp tax from $2.25 to $2.55 cents with the additional 0.30 cents to be deposited
into the Affordable Housing Trust Fund to help fund the Program.
It is estimated that increasing Documentary Stamp Tax under L B 622 will have the following impact:
Fiscal Year Affordable Housing Trust Fund
FY25-26 $ 2,754,000
FY26-27 $ 4,863,000
FY27-28 $ 5,009,000
FY28-29 $ 5,160,000
It is estimated that there will be minimal Costs to the Department of Revenue to implement this bill.
The operative date for this bill is October 1, 2025.