Omaha among 14 U.S. cities tapped for Bloomberg housing program; a goal is more ‘granny flats’ 

OMAHA — Omaha is among 14 cities nationwide selected for a Bloomberg Philanthropies program intended to boost creation of local housing — particularly “accessory dwelling units,” known also as granny flats or in-law suites.

Participation comes with up to $750,000 in grant funding, but local leaders say a key benefit is technical expertise from field-leading specialists and mentoring from cities deemed to have pioneered best strategies.

“We’re excited for the opportunity,” Eric Englund, deputy city planning director, said Friday. He will spearhead Omaha’s role. “We think we can make some great improvements in helping to increase production of ADU units.” 

The team representing Nebraska’s most populous city also hopes to gain insight on innovative building techniques, materials and tips that can help expand affordable housing options. 

Other cities across Nebraska and the nation will have access to strategies and outcomes on Bloomberg’s Idea Exchange site. Potential exists for 16 additional cities to join the program later. 

The initiative comes as the nation confronts a housing shortage the U.S. Chamber of Commerce says has created “cascading economic and social challenges from skyrocketing prices to reduced workforce mobility.” 

Nebraska, meanwhile, continues to pursue goals laid out in an unprecedented strategic housing framework plan in which statewide leaders said Nebraska’s economy depended on solving its “housing crisis.” Cities including Omaha and other Nebraska urban and rural communities have created more tailored roadmaps.

Looking to Austin, Texas

Seeking to help mayors adopt “proven ways” of getting more housing built, Bloomberg  will partner the 14 participants with certain cities that have successful track records.

The group points to San Diego’s relatively fast and digitized permitting process, Atlanta’s housing “strike force” teams and an accessory dwelling unit increase in Austin, Texas. 

Omaha chose its focus to be on creation of ADUs, which are second or smaller homes on the same lot as a primary house. So city planners will be working with and adapting Austin’s model to meet local demands and rules, Englund said. 

A Pew report earlier this year documented a turnaround in Austin’s housing market, where home sale prices had gone up 82% and rents jumped more than any other major American city in the decade of 2010-2019.

Austin amended its city code in 2015, partly by reducing minimum lot size for building an ADU, Bloomberg said. In 2023 and 2024, the city legalized having up to three homes on most single-family lots and communicated that and various other changes via a live applications dashboard, webinar series and more. ADU permits issued from 2015-2024 reportedly grew to 260 per year in the capital city of Texas, up from an average of 37 annually during the previous decade.

Affordability, flexibility

Nonprofit Habitat for Humanity in a 2023 report said ADUs are becoming an increasingly popular housing option because of affordability, flexibility and potential for housing stability. 

Bloomberg said Omaha was chosen for reasons including local housing pressures, population size, demonstrated mayoral leadership on the issue and readiness to adapt.

“We looked at cities that had already made a commitment to zoning reform, softening the ground for supply,” said Bloomberg’s James Anderson.

Omaha changed its zoning code in 2024 to expand potential for ADU development in Omaha. But city officials said they haven’t seen enough production, likely for lack of builders specializing in the ADU model and barriers from lending institutions.

Englund said 30 to 35 ADUs have been built or approved since the zoning code loosened. “It’s an increase, but it’s not substantial,” he said.

A goal of the program is to at least double annual ADU production, Englund said, and to explore ways to help speed up production of other affordable housing types.

Mayor John Ewing Jr., who has proclaimed housing creation a priority, called the Bloomberg initiative “another critical tool toward achieving that goal.”

Related grant funding is to go toward such things as engaging architects to draft permit-ready ADU plans and adding technology to streamline the permit process.

Travel expenses would be covered by Bloomberg separate from the grant, Bloomberg representatives said.

Positioned for federal incentives

They said participation also positions Omaha to capitalize on new federal policy, organizers said, as the ROAD to Housing Act created incentives for similar reforms.

Michael R. Bloomberg, founder of Bloomberg Philanthropies, said in a press release that cities have been taking action to ease the housing shortage that is driving up rents and pushing homeownership out of reach.

“As local governments address this issue, we have a great opportunity to spread the best ideas across the country,” he said. 

Other cities in the Bloomberg initiative: Albuquerque, New Mexico; Alexandria, Virginia; Charleston, South Carolina; Chattanooga, Tennessee; Cleveland, Ohio; Columbia, South Carolina; Durham, North Carolina; Louisville, Kentucky; Miami, Florida; Nashville, Tennessee; Pittsburgh, Pennsylvania; Providence, Rhode Island; and San Jose, California.

The housing venture is the third “government innovation” effort launched this year between Omaha and Bloomberg. Omaha is participating in the Bloomberg Harvard City Leadership Program, a yearlong effort involving various mayors and senior staff who identify a problem and strategies to address it. Omaha’s subject is street homelessness.

The city also received $50,000 to provide Youth Climate Action Fund microgrants to people ages 15 to 24.