Omaha to Build More Backyard Homes With Bloomberg Grant

Omaha city officials announced a new partnership with Bloomberg Philanthropies on Monday. The agreement will provide funding to increase the number of accessory dwelling units in the city. These structures are secondary homes built on the same lot as a primary residence. Eric Englund, the city's deputy planning director, stated the grant amount will fall between $450,000 and $750,000. He noted that planners are still determining the specific allocation of these funds.

Potential uses for the money include drafting construction plans for residents and developing digital resources. Englund described these tools as methods to provide information and create websites for homeowners. The city is not prioritizing specific neighborhoods for this new construction. Officials say the program will apply broadly across the metro area without targeting particular zip codes.

Local builder Nick Knihnisky, who founded Platte and Pine Construction and Remodel last year, sees immediate opportunities in this sector. Knihnisky previously worked as an attorney before shifting his focus to residential construction. His company specializes in building ADUs, which are also called granny flats or in-law suites. He identified the 2024 revision of Omaha's zoning laws as a catalyst for his business growth.

Knihnisky explained that local motivations for these builds differ from coastal markets. While residents in other regions often seek rental income, Omaha homeowners frequently look for multigenerational living spaces. "I think over on the coasts you hear a lot about adding income, a rental structure or a tenant of some kind. But here it's more so aging in place..multigenerational living..having your parents closer to you," Knihnisky said. He said his company has begun serving a new customer base interested in keeping family members nearby.

Englund addressed concerns about construction traffic and neighborhood congestion. He emphasized the small physical footprint of these projects compared to other residential developments. "What's great about ADUs is that it's a very gentle and minimal way to increase density that isn't as impactful as some of the other residential projects in place," Englund said. He argued that the minimal disruption makes these projects easier for neighbors to accept.

Omaha is one of several cities selected for this Bloomberg Philanthropies initiative. The program draws inspiration from Austin, Texas, which has seen successful growth in ADU construction. The organization has identified potential for 16 additional cities nationwide to join the current group of partners. This expansion could extend the reach of the grant program beyond the initial cohort of municipalities.