Omaha Secures Bloomberg Grant to Boost Accessory Dwelling Units
Omaha is among 14 cities nationwide selected for a Bloomberg Philanthropies program intended to boost the creation of local housing, specifically accessory dwelling units known as granny flats or in-law suites. Participation in the initiative comes with up to $750,000 in grant funding. Local leaders note that a primary benefit is gaining technical expertise from field-leading specialists and mentoring from cities with established housing strategies.
Adopting the Austin Housing Model for Local Growth
To help mayors adopt proven methods for increasing housing supply, Bloomberg partners program participants with cities that have successful track records. Omaha chose to focus specifically on accessory dwelling units, which are secondary or smaller homes located on the same lot as a primary house. City planners are working with and adapting the model used in Austin, Texas, to fit local demands and regulations, according to Eric Englund, deputy city planning director.
A Pew report documented a turnaround in Austin’s housing market between 2010 and 2019, during which home sale prices rose 82% and rents surged more than any other major American city. Austin amended its city code in 2015 by reducing the minimum lot size for building an accessory dwelling unit, according to Bloomberg. By 2023 and 2024, the city legalized up to three homes on most single-family lots, communicating these changes through a live applications dashboard and webinar series. As a result, accessory dwelling unit permits issued in Austin grew to 260 per year between 2015 and 2024, up from an average of 37 annually during the previous decade.
Zoning Reform and Production Goals in Omaha
Bloomberg selected Omaha based on local housing pressures, population size, demonstrated mayoral leadership, and readiness to adapt. James Anderson of Bloomberg stated that program organizers looked for cities that had already made commitments to zoning reform and softening the ground for supply. Omaha adjusted its zoning code in 2024 to expand the potential for accessory dwelling unit development.
Despite the code changes, city officials report that production has lagged due to a scarcity of builders specializing in the accessory dwelling unit model and barriers from lending institutions. Englund noted that 30 to 35 such units have been built or approved since the zoning code loosened. The city’s goal under the new Bloomberg initiative is to at least double annual production and explore strategies to accelerate other affordable housing types.
Bloomberg Funding Helps Omaha Streamline Housing Permits
Mayor John Ewing Jr., who has proclaimed housing creation a priority, described the Bloomberg initiative as another critical tool for achieving city goals. Grant funding will support engaging architects to draft permit-ready accessory dwelling unit plans and adding technology to streamline the permit process, with Bloomberg covering related travel expenses separately. Organizers state that participation also positions Omaha to benefit from emerging federal incentives created by the ROAD to Housing Act.
Michael R. Bloomberg, founder of Bloomberg Philanthropies, emphasized the broader scope of the initiative in a press release. He noted that as local governments address shortages that drive up rents and push homeownership out of reach, a significant opportunity exists to spread successful strategies nationwide. The housing venture represents the third government innovation effort launched between Omaha and Bloomberg this year, joining the Bloomberg Harvard City Leadership Program focused on street homelessness and a local Youth Climate Action Fund microgrant program.
Common Questions About Omaha Accessory Dwelling Units
What other cities are participating in the Bloomberg Philanthropies housing program?
In addition to Omaha, the 13 other participating municipalities are 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.
How many accessory dwelling units have been built in Omaha since the 2024 zoning changes?
City planning officials report that 30 to 35 accessory dwelling units have been built or approved since the Omaha zoning code was loosened in 2024.
What specific changes did Austin make to increase accessory dwelling unit permits?
Austin amended its city code in 2015 by reducing minimum lot sizes for building accessory dwelling units, and later legalized up to three homes on most single-family lots, supporting the shift with a live applications dashboard and webinar series.
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