Lawmakers hear testimony on measure to preempt government-imposed rent control 

LINCOLN — Real estate representatives told state lawmakers Wednesday what they feel is coming: attempts by cities in Nebraska to control rent on private property.

“It’s not made up that this is a boogeyman,” said Dennis Tierney of the Metro Omaha Property Owners Association. “We’re trying to be proactive.”

But opponents of Nebraska Legislative Bill 266 — which seeks to prohibit cities and counties from enacting local laws that impose rent controls on private housing — called the proposal a solution in search of a problem.

“There are currently no political subdivisions in Nebraska seeking to enact rent control policies,” said Erin Feichtinger of the Women’s Fund of Omaha. “We are a long way from rent control, and there is no effort to drive out private landlords from the market.”

Feichtinger said affordable housing advocates, including herself, recognize the value of private landlords and the options they bring to the market.

She and Tierney were among Nebraskans who testified at a public hearing before the Legislature’s Government, Military and Veterans Affairs Committee. LB 266, introduced by State Sen. Rob Dover of Norfolk, drew four proponents and one opponent. Online, 37 people registered support and 22 were opposed, said State Sen. Rita Sanders of Bellevue, the committee chair.

37 other states

Lynn Fisher of the Statewide Property Owners Association told the committee that his group asked Dover to introduce the bill, because members believe rent control ordinances are on the way to Nebraska, similar to states like California and New York.

Dover, who has real estate businesses, told the legislative committee that 37 other states have passed laws preempting government-enforced limits on rents that property owners can charge for private housing.

He said his proposal would not apply to affordable housing units subsidized by government programs or public incentives.

Dover said that mandated rent control for private housing, however, would “distort the market” and be a disincentive for developers who see it cutting into their return on investment. He said such restrictions  would be harmful for economic growth.

Responding to a question by State Sen. John Cavanaugh of Omaha, Dover said he did not know of any Nebraska communities pondering a rent control ordinance but that he saw the bill as being proactive.

“I’m not in favor of telling localities what they can and can’t do, especially when there is no evidence anybody is actually considering doing this,” Cavanaugh said after the hearing.

Controversy, uncertainty

Fisher said members of his organization are concerned that Omaha’s Housing Affordability Action Plan contemplates rent control.

Omaha housing manager Greg Paskach said in an interview, however, that the plan does not recommend rent control. 

Instead, the plan says that given controversy and uncertainty over how effective rent control policies are, other “more known strategies for securing affordable housing” would be more appropriate for Omaha.

Feichtinger said that if rental control ever became a discussion point, it should be left to local communities and not a “one-size-fits-all approach” imposed by the Legislature.

“Taking away a tool that may possibly one day exist in the future to address a community’s unique needs is unnecessary,” she said.

The Government, Military and Veterans Affairs Committee took no action on whether to advance the bill for consideration by the full Legislature.