(1) There is hereby established the Revitalize Rural Nebraska Grant Program. The governing body of a city of the first class, a city of the second class, or a village may apply, on behalf of the city or village, to the Department of Environment and Energy for approval of a dilapidated commercial property demolition grant. The Director of Environment and Energy shall prescribe the form and manner of application.

(2) The department shall award the grants annually on a competitive basis beginning in fiscal year 2023-24 subject to available funds. The department shall give priority to applications from cities of the second class and villages. If there are funds remaining at the end of each grant period, the department shall consider applications from cities of the first class. A city or village may apply for more than one grant. The department shall give preference to new applicants.

(3) There shall be no limit on the amount that can be awarded to each applicant within the available funding. It is the intent of the Legislature that if the department does not award all of the available appropriation for grants under the program, the unobligated amount of the appropriation shall be reappropriated for the next fiscal year to be awarded during the next grant period.

The Department of Environment and Energy shall award a grant to a city or village under the Revitalize Rural Nebraska Grant Program based on a completed application that demonstrates:

(1) A dilapidated commercial property within the corporate limits of the city or village is in need of demolition;

(2) The city or village owns the property or is completing the process prescribed in section 18-1722;

(3) The property has been abandoned or vacant for at least six months prior to application;

(4) The property is not listed, or eligible to be listed, on the National Register of Historic Places; and

(5) The city or village is able to contribute matching funds, whether in cash or in-kind donations, in the amount of ten percent for a village, fifteen percent for a city of the second class, and twenty percent for a city of the first class.

If a city or village fails to engage in the demolition of the commercial property identified in the application for a grant under the Revitalize Rural Nebraska Grant Program within twenty-four months after receiving the grant, the city or village shall return the grant to the Department of Environment and Energy. The department shall remit such grant money to the State Treasurer for credit to the Revitalize Rural Nebraska Fund.

The Revitalize Rural Nebraska Fund is created. The Department of Environment and Energy shall use the fund for the Revitalize Rural Nebraska Grant Program. The fund shall include transfers as directed by the Legislature, money from grants returned under section 19-1203, and money from private contributions and other sources provided for purposes of the program. Any money in the Revitalize Rural Nebraska Fund available for investment shall be invested by the state investment officer pursuant to the Nebraska Capital Expansion Act and the Nebraska State Funds Investment Act. Any interest earned on the fund shall be used for the program.