Overview
In 2017, Nebraska enacted the Rural Workforce Housing Investment Act. Still active today, the Rural Workforce Housing Fund (RWHF) encouraged rural development nonprofits and local economic development firms to build more housing through a state grant program (currently administered by the Department of Economic Development).
In 2020, the RWHF model was expanded to Lincoln and Omaha with the Middle Income Workforce Housing Act. This fund, respectively, became the Middle Income Workforce Housing Fund. Nebraska Housing Resource has utilized this funding to create a revolving workforce housing financing fund for builders. We use our grant dollars to lend to builders at 2% interest.
Guidelines
This funding has two distinct uses: new construction and acquisition rehabilitation projects.
New Construction
New construction housing must be constructed in Lincoln and must be sold to an owner-occupant upon completion. These housing units must have an after-construction appraised value or cost to construct of at least one hundred twenty-five thousand dollars ($125,000) but not more than three hundred seventy-five thousand dollars ($375,000). We have a maximum loan amount per project of $750,000 and a maximum sales price of four hundred twenty thousand dollars ($420,000). This funding can’t be used in combination with federal or state LIHTC, community development block grants, HOME funds, or funds from the Affordable Housing Trust Fund. However, lots developed with these funds may be used in combination with MWHF and these sources may be used for homebuyer assistance for properties constructed with MWHF.
Acquisition Rehabilitation
Acquisition rehabilitation units must be in Lincoln and must be sold to an owner-occupant upon completion. The cost to substantially rehabilitate such housing must exceed twenty-five percent (25%) of its before-construction assessed value; and the after-construction appraised value of the building alone must be at least one hundred twenty-five thousand dollars ($125,000) but not more than three hundred thousand dollars ($300,000). We have a maximum loan amount per project of $750,000. This funding can’t be used in combination with federal or state LIHTC, community development block grants, HOME funds, or funds from the Affordable Housing Trust Fund. However, lots developed with these funds may be used in combination with MWHF and these sources may be used for homebuyer assistance for properties constructed with MWHF.
Applicant Eligibility
Applicants must be members of the Home Builders Association of Lincoln or must be actively pursuing a membership. Applicants may be for-profit builders, non-profits, or public entities.
Process
After initial outreach from the builder or connection with Nebraska Housing Resource, the builder will be asked to fill out a Letter of Interest describing their proposed project and experience. If the builder has a bank they typically work will, NHR is willing to keep funds for the loan at the builder’s bank of choice for ease of drawing funds. After the project is approved by NHR staff and board of directors, the builder will sign a term sheet*, a promissory note, and a Deed of Trust.
Contact us today to learn more about funding availability, eligibility, and how to apply.
Email: t.natevolker@gmail.com
Phone: 308-708-8216
*please note that the term sheet includes language requiring that all general and subcontractors are required to determine the work eligibility of all new employees (after date of term sheet signature) physically performing services in connection with the project.