Omaha’s First Black Elected Mayor Fast-Tracks City’s Biggest Affordable Housing Plan Using Streetcar Funds

Mayor Ewing Advances Affordable Housing Timeline

Omaha Mayor John Ewing Jr. is pushing for what he calls the city’s “single largest investment” in affordable housing. His plan involves using revenue tied to the city’s streetcar project, but years ahead of the original schedule.

Instead of waiting until 2031, the mayor wants to start building affordable homes now. The move will involve selling bonds that would be repaid through Tax-Increment Financing (TIF) — a tool tied to property taxes from new development near the streetcar route.

Funds Tied to Streetcar Development

The $421 million streetcar project was already linked to affordable housing, but on a delayed timeline. Mayor Ewing said that was too far off. “We’re moving that process up five or six years,” he said. “Jump-starting affordable housing now rather than waiting until that income starts coming in.”

The City Council must approve the change. While the full investment amount hasn’t been shared yet, a media event is planned soon to provide more details.

Previous Efforts Laid the Groundwork

In 2022, Omaha directed $20 million in federal COVID-19 relief to Front Porch Investments to support affordable housing. A year later, another $20 million came from the U.S. Department of Housing and Urban Development for similar work.

These past investments helped prepare Omaha to act faster under Ewing’s leadership. Now, the mayor wants to add to those efforts using TIF in a smarter way.

Rethinking Tax-Increment Financing

Mayor Ewing said the city must use TIF more carefully and creatively. Some past TIF projects, he noted, didn’t fit the true definition of “blighted” areas. He believes the tool should be focused on older and underserved parts of Omaha.

“I think it should be utilized in areas where development otherwise would not take place,” Ewing said. He is also open to exploring other options, like land trusts and enterprise zones, to encourage investment in poor neighborhoods.

Understanding How TIF Works

Under TIF, developers borrow money to improve a project site. For 15 to 20 years, new property taxes from the improved land go toward paying off the loan. After that, taxes return to the regular system, helping schools and other city services.

Critics, including state lawmakers and Nebraska’s auditor, argue that cities often misuse TIF. Despite this, Ewing supports keeping the tool but using it more fairly. Omaha currently diverts about 4% of its property taxes through TIF loans.

A Bold Start for Omaha’s First Black Mayor

Mayor John Ewing Jr. made history by defeating a three-term Republican incumbent to become Omaha’s first Black elected mayor. Now, he’s wasting no time pushing bold ideas.

His housing focus fits into a bigger plan to close the poverty gap, especially in neighborhoods like North and South Omaha. “That really creates a city where you have haves and have-nots, and that’s not sustainable in the long run,” he said.

Fighting Poverty Through Smart Investment

The Poverty Elimination Action Plan, passed by the City Council, outlines how different racial groups in Omaha experience poverty. Black households face a poverty rate of nearly 33%, far higher than white households at 9.3%.

Mayor Ewing believes more people contributing to the economy makes Omaha stronger. “The more we can get people to the point where they’re contributing in tax dollars… it increases the viability of the state,” he said.

Looking Ahead

Ewing’s administration is building an advisory team to help guide the plan. The team will focus on areas that need investment the most. It’s part of a wider effort to make Omaha a fairer, more livable city for everyone.

The mayor’s actions show that leadership can speed up progress, especially when backed by a clear plan and long-term vision.