The Annual Action Plan Substantial Amendmentopportunity.nebraska.gov/files/crd/2008/NSP/FINAL...

STATE OF NEBRASKA

DEPARTMENT OF ECONOMIC DEVELOPMENT

2008 HOUSING AND COMMUNITY DEVELOPMENT SUBSTANTIAL PLAN AMENDMENT

GRANT SUBMISSION FOR $19,600,000 COMMUNITY DEVELOPMENT BLOCK GRANT NEIGHBORHOOD

STABILIZATION PROGRAM FUNDS

THE NSP SUBSTANTIAL AMENDMENT

Jurisdiction(s): __State of Nebraska Department of Economic Development____

Jurisdiction Web Address: http://www.neded.org

NSP Contact Person: Lara Huskey Address: PO Box 94666 Lincoln, NE 68509Telephone: 402-471-3759 Fax: 402-471-8405 Email: [email protected]

A. AREAS OF GREATEST NEED

Provide summary needs data identifying the geographic areas of greatest need in the grantee’s jurisdiction.

Note: An NSP substantial amendment must include the needs of the entire jurisdiction(s) covered by the program; states must include the needs of communities receiving their own NSP allocation. To include the needs of an entitlement community, the State may either incorporate an entitlement jurisdiction’s consolidated plan and NSP needs by reference and hyperlink on the Internet, or state the needs for that jurisdiction in the State’s own plan. The lead entity for a joint program may likewise incorporate the consolidated plan and needs of other participating entitlement jurisdictions’ consolidated plans by reference and hyperlink or state the needs for each jurisdiction in the lead entity’s own plan.

HUD has developed a foreclosure and abandonment risk score to assist grantees in targeting the areas of greatest need within their jurisdictions. Grantees may wish to consult this data, in developing this section of the Substantial Amendment.

Response:

(1) The area of greatest need for Community Development Block Grant (CDBG) NSP assistance is determined to be Douglas County and primarily the City of Omaha.County Realty Trac

foreclosure rate

HUD estimated foreclosure rate

Realty Trac number of properties in foreclosure related stages

HUD estimated foreclosures

Douglas 1.85% 3.5% 3,924 4,439

City of Omaha (Omaha-Council Bluffs Metro)Factor Jan-07 Sept-07 Jan-08 Jul-08Outstanding number of active loans in the foreclosure process

806 850 1,032 906

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http://www.huduser.org/publications/commdevl/nsp_target.html

Outstanding number of Real Estate Owned properties.

262 290 358 333

Outstanding Number of mortgages not conforming to Fannie Mae/Freddie Mac Guidelines in the foreclosure process

473 472 529 452

Outstanding Number of mortgages not conforming to Fannie Mae/Freddie Mac Guidelines Real Estate Owned Properties

209 250 287 238

Source: First American Core Logic

(2) The next area of greatest need is determined to be Lancaster County and primarily the City of Lincoln.County Realty Trac

foreclosure rate

HUD foreclosure rate

Realty Trac estimated foreclosures


Lancaster .73% 2% 848 1,391

City of Lincoln (Lincoln Metro)Factor Jan-07 Sept-07 Jan-08 Jul-08Outstanding number of active loans in the foreclosure process

264 125 316 296

Outstanding number of Real Estate Owned properties.

111 87 105 127

Outstanding Number of mortgages not conforming to Fannie Mae/Freddie Mac Guidelines in the foreclosure process

123 112 123 135

Outstanding Number of mortgages not conforming to Fannie Mae/Freddie Mac Guidelines Real Estate Owned Properties

68 66 81 73

Source: First American Core Logic

(3) The next of areas of greatest need are determined to be Cass, Sarpy, and Washington counties.County Realty Trac

foreclosure rate




Cass 1.46% 4.4% 163 309Sarpy 1.83% 2.7% 1,059 1,137Washington 1.75% 3% 141 141

(4) The next areas of greatest need are determined to be the counties of Dakota, Dixon, and Seward.County Realty Trac

foreclosure rate




Dakota 0.19% 4.7% 15 144

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Dixon 0.04% 4.6% 1 34Seward 0.04% 3.5% 3 122

(5) The next areas of greatest need are determined to be the counties of Adams, Buffalo Dodge, Hall, Lincoln, Madison, Platte.County Realty Trac

foreclosure rate




Adams 0.02% 5.1% 3 167Buffalo 0.01% 3.5% 2 189Dodge 0.09% 5.8% 15 289Hall 0.23% 7.0% 53 450Lincoln 0.00% 4.5% 0 225Madison 0.01% 5.0% 1 170Platte 0.01% 3.6% 1 105

(6) Finally, the following counties are determined to have need: Antelope, Arthur, Banner, Blaine, Boone, Box Butte, Boyd, Brown, Burt, Butler, Cedar, Chase, Cherry, Cheyenne, Clay, Colfax, Cuming, Custer, Dawes, Dawson, Deuel, Dundy, Fillmore, Franklin, Frontier, Furnas, Gage, Garden, Garfield, Gosper, Grant, Greeley, Hamilton, Harlan, Hayes, Hitchcock, Holt, Hooker, Howard, Jefferson, Johnson, Kearney, Keith, Keya Paha, Kimball, Knox, Logan, Loup, McPherson, Merrick, Morrill, Nance, Nemaha, Nuckolls, Otoe, Pawnee, Perkins, Phelps, Pierce, Polk, Red Willow, Richardson, Rock, Saline, Saunders, Scotts Bluff, Sheridan, Sherman, Sioux, Stanton, Thayer, Thomas, Thurston, Valley, Wayne, Webster, Wheeler, and York.

This determination is based on review of the data sources and the receipt of pre-application requests for DED NSP funds for projects in counties not included in Greatest Need Areas 1-5 above. Thirty-nine (39) pre-applications indicated a potential need for more than $27 million of NSP funds for eligible uses in these counties.

DED analyzed and compared data from each of the following sources to determine areas of greatest need.

1. First American Core Logic Data;2. Federal Reserve Bank of New York Sub-prime Mortgage Data;3. HUD provided Local Level Data; and4. Realty Trac5. DED CDBG NSP Pre-applications

First American Core Logic Data

Data Sources

Securities Data

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Securities Data is a loan-level dataset with over 80 data fields of static and monthly performance information. All the loans are collateral in non-agency, publicly-placed mortgage backed securities. Historical data goes back to 1992. The data covers 95+% of the non-agency market representing roughly $2 trillion in outstanding balances. Monthly data includes delinquency, foreclosure, payoff and dollar loss.

Servicing Data

Servicing Data is a cooperative loan-level dataset with over 40 data fields of static and monthly performance information. All the loans are contributed by the nation’s largest servicers. The data covers more than 75% of the nation’s active first mortgages, more than 38 million, including all of the Fannie Mae and Freddie Mac portfolios.

Federal Reserve Bank of New York Sub-prime Mortgage Data

SUBPRIME MORTGAGE CONDITIONS IN NEBRASKA COMPARED TO THE OVERALL UNITED STATES

(JULY 2008)

The table below indicates that the banking and housing industries in Nebraska are generally less impacted by difficulties associated with subprime mortgage loans than in the United States as a whole on most measures. The data in the table were released by the Federal Reserve Bank of New York (www.newyorkfed.org). The data are apparently for a period including 2007 and early 2008.

Subprime loans per 1000 housing units. Nebraska had 14.5 percent owner-occupied subprime loans per 1,000 housing units, compared to 23.4 percent for the total United States. The Federal Reserve Bank of New York estimates these data cover 47 percent of subprime loans and assumes that the covered loans are representative of the entire subprime market.

In foreclosure per 1,000 housing units. Nebraska had 0.9 owner-occupied subprime loans per 1,000 housing units where the lender has initiated the foreclosure process but has not completed it. This was considerably less than a rate of 2.5 per 1,000 for the total U.S. This is a measure of the stock of loans in foreclosure at a particular time, not the rate of completed foreclosures.

Real estate-owned properties (REOs) per 1,000 housing units. With real estate-owned properties (REOs), the lender has taken legal title to the property through foreclosure or transference of title from the borrower. Nebraska had 0.5 REOs resulting from subprime loans per 1,000 housing units, compared to 1.6 for the total U.S.

Share adjustable rate mortgages (ARMs). This is the percent of owner-occupied subprime loans that have a variable rate of interest that will be reset periodically in contrast to loans with interest rates fixed to maturity. ARMs are given special consideration because they traditionally have a higher likelihood of being delinquent or foreclosed upon than fixed rate loans. This is true in both the prime and subprime markets. Nebraska’s share of ARMs (62.6%) was only slightly below the U.S. figure (63.1%).

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http://www.newyorkfed.org/

Share current. This is the percent of owner-occupied subprime loans for which the borrower’s payments are up to date. Loans in this category may have at some time been delinquent but were caught up at the end of the period measured. With 66.7% of loans current, Nebraska compared favorably to a rate of 58.3% for the total U.S.

Share 90 days delinquent. This is the percent of owner-occupied subprime loans where the loan payment is 90 or more days overdue but the loan is not in foreclosure or REO. Nebraska has a slightly lower percent (8.4%) on this measure than the overall nation (9.2%).

Share in foreclosure. For 6.3% of Nebraska’s owner-occupied subprime loans, the lender had initiated the foreclosure process but not completed it. Again, this is a more favorable share than for the total U.S. (10.7%).

Median combined loan to value (LTV). The combined loan to value (LTV) is the ratio of the loan amount to the value of property at origination and the median, of course, is the value at which half of LTVs are higher and half are lower. On this measure, Nebraska was higher (90.0%) than the total U.S. (87.4%).

Share low FICO & high combined loan to value (LTV). FICO is a credit bureau risk score. The higher the FICO score, the lower the likelihood of delinquency or default for a loan. Also, the lower the FICO score, generally the higher will be the cost of borrowing (interest rate). For this measure, the share of subprime loans was calculated that had both FICO scores below 620 (the national average) and LTVs above 90%. Here Nebraska did not score as well as the nation as a whole. The Nebraska share was 20%, compared to 13.3% for the total U.S.

Share low or no documentation. This measure is the percent of owner-occupied subprime loans for which the borrower provided little or no verification of income and assets in order to receive a mortgage. Tighter loan standards in Nebraska were indicated by a significantly lower share (19.3%) of loans with low or no documentation compared to the national figure (32.9%).

Share adjustable rate mortgages (ARMs) resetting in 12 months. This measure shows the percent of adjustable rate mortgages (ARMs) for which the rate of interest is scheduled to undergo its first rate reset within the next 12 months. The Nebraska share was 28.5%, compared to 33.1% for the total U.S.

Share late payment last 12 months. Difficulties in paying on time often precede more serious defaults. This measure shows the share of subprime owner-occupied loans for which at least one payment has been late over the past 12 months. Nebraska’s share was 50.3%, compared to a national figure of 56.6%.

Subprime Mortgage Conditions in Nebraska and the Overall United States(Source: Federal Reserve Bank of New York, July 2008)

Measure Nebraska

United

States

Loans Per 1,000 Housing Units 14.5 23.4In Foreclosure Per 1,000 Housing Units 0.9 2.5Real Estate-Owned Properties (REOs) Per 1,000 Housing Units 0.5 1.6

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Share Adjustable Rate Mortgages (ARMs) 62.6% 63.1%Share Current 66.7% 58.3%Share 90 days Delinquent 8.4% 9.2%Share in Foreclosure 6.3% 10.7%Median Combined Loan to Value (LTV) 90.0% 87.4%Share Low FICO & High Combined Loan to Value (LTV) 20.0% 13.3%Share Low or No Documentation 19.3% 32.9%Share Adjustable Rate Mortgages (ARMs) Resetting in 12 months 28.5% 33.1%Share Late Payment Last 12 Months 50.3% 56.6%

HUD provided Local Level DataNeighborhood Stabilization Program - Revised 10-20-08Methodology and Data Dictionary for HUD Provided Data BackgroundUsing data from the Mortgage Bankers Association National Delinquency Survey as of June 2008, HUD has calculated the approximate number of foreclosure starts for all of 2007 and the first six months of 2008 (“Foreclosure Starts over 18 months”) at the statewide level. The Mortgage Bankers Association (MBA) data are not available for geographic areas smaller than states. As such, HUD has identified data collected by other federal agencies that prove to be good predictors of where foreclosures are likely. HUD has used those data to “distribute” the statewide counts of foreclosure starts among the neighborhoods, places, and counties within each state. To test the reliability of HUD’s estimated foreclosure rate at the local level, HUD asked the Federal Reserve to compare HUD’s estimate to data the Federal Reserve had from Equifax showing the percent of households with credit scores that were delinquent on their mortgage payments 90-days or longer. The Equifax data are based on a 5 percent sample of all credit records in the United States. As such, they are more reliable for counties with higher population counts (a larger sample size reduces sampling error) than those with smaller population counts. At the statewide level, 90-day delinquencies from Equifax and the MBA data on foreclosure starts are closely related, that is they have a very high correlation with one another (0.90 where 1 is a perfect correlation). Analysis by the Federal Reserve staff found that when comparing the HUD predicted county foreclosure rates to the Equifax county level rates of delinquencies, HUD’s data and the Equifax data had high intrastate correlations. For example, within the state of California, the correlation was 0.835 (where 1 is a perfect correlation). The county level intrastate correlations were higher when the analysis was restricted to counties with greater than 15,000 households. There are reasons that either the HUD estimated foreclosure rate or Equifax delinquency data could be wrong, but when they are very similar to one another in a particular community we have a greater confidence that HUD’s estimated foreclosure rate and the Equifax delinquency data are accurately targeting the problem. HUD also obtains data from the United States Postal Service (USPS) on addresses that have been vacant for 90-days or longer. The USPS collects these data to reduce delivery

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of bulk mail to homes where no one is picking up the mail. While there are many reasons for homes being vacant for 90-days or longer, HUD believes that if a Census Tract is found to be estimated to have a higher rate of foreclosures and it has a high rate of homes 90-days or more vacant, abandonment risk associated with the foreclosure crisis is higher in those neighborhoods.HUD is providing its data on estimated foreclosures (based on risk) and vacancy data to assist state and local governments in their efforts to target the communities and neighborhoods with the greatest needs. HUD recommends that if states and local governments have local data, such as county data on foreclosure filings, that those data also be given serious consideration in identifying areas of greatest needs. HUD has created data files at several areas of geography to assist local and state governments:

(1) County (2) County-Place(3) Census Tract(4) Block Group (part)

The County, County-Place, and Census Tract files contain the same data: Estimated number and percent of foreclosure starts over the past 18 months

through June 2008 Number and percent of vacant addresses in June 2008 Data used to calculated the estimated foreclosure rates

o Federal Reserves Home Mortgage Disclosure Act Data on high cost loanso Office of Federal Housing Enterprise Oversight Data on falling home

priceso Bureau of Labor Statistics data on place and county unemployment rates

The Block Group (part) file includes: Number and percent of persons estimated at less than 120 percent of median

income A “foreclosure and abandonment risk score” that is a function of the estimated

foreclosure rate and percent of addresses vacant Percent of foreclosure starts over the past 18 months through June 2008 Percent of vacant addresses in June 2008 Data used to calculated the estimated foreclosure rates

o Federal Reserves Home Mortgage Disclosure Act Data on high cost loanso Office of Federal Housing Enterprise Oversight Data on falling home

priceso Bureau of Labor Statistics data on place and county unemployment rates

MethodologyAll of the files provide estimates of foreclosures based on a formula that calculates the rate of foreclosure starts over the past 18 months as a function of:

Metropolitan area decline in home values as of June 2008 against peak home values in June of any previous year between 2000 and 2008. If home values have not declined, it is zero. These data are from the Office of Federal Housing

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Enterprise Oversight (OFHEO)1 Home Price Index. Data for non-metropolitan balances of states are from the March 2008 Home Price Index.

County or Place Level unemployment rate as of June 2008 from the Bureau of Labor Statistics Local Area Unemployment Rate data.

Census Tract Level Data on number of loans made between 2004 and 2006 from the Home Mortgage Disclosure Act (HMDA) data and the number of those loans that are high cost (where the rate spread is 3 percentage points above the Treasury security of comparable maturity).

States with very high rates of correlation between HUD’s foreclosure rate estimates and Equifax 90 day delinquencies (correlation of 0.80 or higher) are California, Connecticut, Hawaii, Maryland, New Jersey, Rhode Island, and South Carolina. States with a modestly high rate of correlation (correlation 0.60 to 0.79) are Arizona, Florida, Massachusetts, Michigan, and South Dakota.While most of the remaining states had correlations that were positive and significant, the correlations were lower. The reason for the lower rate of correlations could be because the model HUD is using to estimate foreclosure rates does not account for the factor or factors most contributing to foreclosures in that state, the sampling errors in the Equifax data makes the comparison data inaccurate, there is not enough variation between counties on the data in the model to show significant variations in county foreclosure rates, or some other reason. Notably, intrastate correlations between the HUD estimated foreclosure rate and the Equifax data improve dramatically when only counties with more than 15,000 households are included in the analysis. When making this restriction, 23 intrastate correlations are greater than 0.6 (see Appendix 1). Since the Equifax data are sample data, their accuracy is improved by having a larger N while the HUD model is also more accurate for communities within the metropolitan areas that OFHEO calculates price change information. All grantees are advised to look to other local data when considering their areas of greatest need, particularly if they are not among the states listed as having high rates of intrastate correlation between the HUD estimated foreclosure rate and the Equifax 90-day delinquency data. Even in states with relatively low correlation, HUD believes that the data it is providing are useful for identifying areas state and local governments should review as possible candidates for targeting funds because they have underlying characteristics that make them at significant risk for foreclosures and abandoned homes.Data Dictionary for County, County-Place, and Tract FilesGeographic Identifiers in Each File Are As Follows:County Level File

countycode - 5 character combination of state and county FIPS codes state - 2 character state FIPS code sta - 2 character state alphanumeric abbreviation county - 3 character county FIPS code countyname - county name

1 Now the Federal Housing Finance Agency (FHFA). Data available from www.ofheo.gov.

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Appendix 1: Pearson Correlation Comparison of HUD County Foreclosure Rate Estimate to Equifax 90-day mortgage delinquency sample data for Counties with over 15,000 Households

State

Correlation when restricted to counties above 15,000 households

N (counties greater than 15,000 households) State


N (counties greater than 15,000 households) State


N (counties greater than 15,000 households)

AK *** 4 KY *** 21 NY 0.545 55AL *** 32 LA *** 27 OH 0.556 62AR 0.606 18 MA 0.779 12 OK *** 22AZ 0.823 11 MD 0.874 18 OR 0.587 18CA 0.862 45 ME *** 10 PA 0.632 55CO 0.735 15 MI 0.777 40 PR *** 0CT 0.840 8 MN 0.466 22 RI 0.942 5DC *** 1 MO 0.587 25 SC 0.788 25DE *** 3 MS 0.625 16 SD 1.000 2FL 0.799 43 MT *** 6 TN 0.570 37GA 0.676 42 NC 0.641 58 TX 0.428 63HI 0.970 4 ND *** 4 UT *** 6IA 0.750 17 NE 0.821 5 VA 0.531 40ID 0.876 7 NH -0.678 9 VT *** 6IL 0.593 34 NJ 0.920 21 WA 0.619 23IN 0.591 37 NM *** 13 WI 0.468 35KS 0.976 11 NV 0.883 5 WV 0.594 14***If data not shown, it was not statistically significant at the .05 level or better WY -1.000 2

States with correlations 0.6 or higher shown in bold.

HUD provided Local Level Data on LMMI block groups (part) and foreclosure risk scoresThis information was found at http://www.huduser.org/publications/commdevl/nsp_target.html

The data used to calculate the risk scores are also included in the file. The data used here are from different levels of geography, as noted below. That is, the data on home price

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http://www.huduser.org/publications/commdevl/nsp_target.html

change is for the whole metropolitan area, not just for the neighborhood and unemployment is for the place or county, not just the neighborhood. The high-risk loan rate and address vacancy data are at the neighborhood (Census Tract) level:

Office of Federal Housing Enterprise Oversight (OFHEO) data on decline in home values as of June 2008 compared to peak home value since 2000 at the Metropolitan/Micropolitan/Non-Metropolitan level ("OFHEO_CBSA_home_price_decline_since_peak").

Federal Reserve Home Mortgage Disclosure Act (HMDA) data on percent of all loans made between 2004 and 2006 that are high cost at the Census Tract Level ("HMDA_hi_cost_loan_rate").

Labor Department data on unemployment rates in places and counties as of June 2008 ("BLS_place_or_county_unempoloyment_rate_0608").

USPS data on residential addresses identified as being vacant for 90 days or longer as of June 2008 at the Census Tract level ("USPS_residential_vacacancy_rate").

B. DISTRIBUTION AND USES OF FUNDS

Provide a narrative describing how the distribution and uses of the grantee’s NSP funds will meet the requirements of Section 2301(c)(2) of HERA that funds be distributed to the areas of greatest need, including those with the greatest percentage of home foreclosures, with the highest percentage of homes financed by a subprime mortgage related loan, and identified by the grantee as likely to face a significant rise in the rate of home foreclosures. Note: The grantee’s narrative must address these three stipulated need categories in the NSP statute, but the grantee may also consider other need categories.

Response:

The distribution and uses of funds are consistent with the requirements of Title III of Housing and Economic Recovery Act Sec. 2301(b)(3) by allocating funds according to the data provided in the Areas of Greatest Need section of this plan. DED proposes to use funds in each of the need areas starting with the area of greatest need, considering also the pre-applications received for NSP funds as an additional demonstration of need. In addition, DED recognizes that grantees will have limitations on the ability to administer the funds within the accelerated timeframe of the CDBG NSP. Therefore, funds distributed to high need areas are limited by the capacity to expend funds within the CDBG NSP deadlines.

Proposed DED CDBG NSP Allocation TableNeed level

Need level geographic area

Total amount requested in pre-

Proposed amount of NSP to be

Proposed uses

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applications awarded 1 Omaha $4,284,000 $4,000,000 (A) Establishing financing

mechanisms for purchase and redevelopment of foreclosed homes and residential properties; (B) Purchasing and rehabilitating homes and residential properties abandoned or foreclosed (D) Demolishing blighted structures; or(E) Redeveloping demolished or vacant properties

Activities that result in the provision of affordable housing for households with incomes at or below 50% of the Area Median Income (AMI)

2 Lincoln $1,000,000 $1,000,000

3 Cass, Douglas, Sarpy, and Washington counties(Omaha Metropolitan Statistical Area (MSA))

$18,251,000 $3,230,000

(A) Establishing financing mechanisms for purchase and redevelopment of foreclosed homes and residential properties; (B) Purchasing and rehabilitating homes and residential properties abandoned or foreclosed; (D) Demolishing blighted structures; or(E) Redeveloping demolished or vacant properties

4 Dakota, Dixon, Lancaster and Seward counties(Lincoln MSA & Sioux City IA-NE-SD MSA)

$7,531,000 $1,600,000

5 Adams, Buffalo Dodge, Hall, Lincoln, Madison, Platte(Counties with communities with populations of 20,000 or more not included in previous allocations)

$3,105,104* $4,500,000

6 All other counties $27,617,035* $4,486,000 (D) Demolishing blighted structures; or(E) Redeveloping demolished or vacant properties

where minimum community standards (such as nuisance ordinances and building codes) are enforced

State Administration N/A $784,000 N/ATotal $61,788,139 $19,600,000 Activities (A), (B), (D) and (E)

*some pre-application requests included project activities in both Level 5 and Level 6 areas. For the purposes of this table, these projects are included in Level 6.

Projects Specified in the DED CDBG NSP Grant Submission for Section G.

Section G. of this DED CDBG NSP Grant Submission was developed using the following method:

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Step 1: DED provided a pre-application form for potential Nebraska projects and held a DED CDBG NSP briefing to present the strategy and pre-application form. The pre-application form was available October 17, 2008 due November 3, 2008. This pre-application was substantially equivalent to the NSP application and checklist required for the DED substantial plan amendment to receive the State allocation of CDBG NSP. DED did inform communities that the pre-application was required to have a potential project included in the DED grant submission.

Step 2: Analyze “area of greatest need” information for the state -see Section A of this plan.

Step 3: Determine general allocation of funds and eligible activities per “areas of greatest needs” data and pre-application interest – See DED CDBG NSP allocation table in this section.

Step 4: Pre-applications were reviewed and an Eligibility and Feasibility score was assigned. DED did not ask pre-applicants to address the Eligibility and Feasibility criteria in the pre-applications. Instead, criteria were more generally presented as (1) the project is eligible, (2) the project can be completed expeditiously, and (3) the project administrator and partners have the capacity to produce the intended results. The below score was developed as an objective measure of these three original criteria.

0 = (a) project will contribute to meeting the state requirement that 25% of the funds will be used to provide housing for families with incomes at or below 50% of the Area Median Family Income, (b) the project timeline is clearly feasible, and (c) the project was determined to be definitely eligible for NSP.

1 = (a) project meets the goals of the NSP to stabilize neighborhoods through targeted activities, and project meets a priority goal of the Housing and Community Development Plans, (b) the national objective can be met quickly or the project timeline is clearly feasible, and (c) the project was determined to be definitely eligible for NSP.

2 = (a) project meets the goals of the NSP to stabilize neighborhoods, or project meets Housing and Community Development plan goals, (b) the national objective can be met quickly or the project timeline is clearly feasible, and (c) the project was determined to be definitely eligible for NSP.

3 = (a) project meets the goals of the NSP to stabilize neighborhoods through targeted activities, or project meets a priority goal of the Housing and Community Development Plans, (b) the national objective can be met quickly or the project timeline is clearly feasible, and (c) the project was determined to have a high likelihood for NSP eligibility.

4 = (a) project meets the goals of the NSP to stabilize neighborhoods, or project meets Housing and Community Development plan goals, (b) the national objective can be met

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quickly or the project timeline is likely feasible, and (c) the project was determined to have a high likelihood for NSP eligibility.

5 = (a) project meets the goals of the NSP to stabilize neighborhoods through targeted activities, or project meets a priority goal of the Housing and Community Development Plans, (b) the national objective can be met quickly or the project timeline is likely feasible; and (c) the likelihood of the project eligibility for NSP is unknown.

6 = (a) project meets the goals of the NSP to stabilize neighborhoods, or project meets Housing and Community Development plan goals, (b) the national objective can be met quickly or the project timeline is likely feasible, and (c) the likelihood of the project eligibility for NSP is unknown.

7 = (a) project does not clearly meet the goals of the NSP to stabilize neighborhoods, or DED priorities and goals, (b) the national objective can be met, however, timeliness is uncertain, and (c) the project was determined to be definitely eligible for NSP.

8 = (a) project does not clearly meet the goals of the NSP to stabilize neighborhoods, or DED priorities and goals, (b) the national objective can be met, however, timeliness is uncertain; and (c) the project was determined to have a high likelihood for NSP eligibility.

9 = (a) project does not clearly meet the goals of the NSP to stabilize neighborhoods, or DED priorities and goals, (b) the national objective can be met, however, timeliness is uncertain; and (c) the likelihood of the project eligibility for NSP is unknown.

10 = project is definitely ineligible for NSP.

Step 6: The pre-applications were sorted by (1) the Eligibility and Feasibility score (lowest to highest), (2) the Area Need Level (lowest to highest – projects with a service area in both levels 5 and 6 were assigned to Level 5 for the purposes of this sorting), and (3) the adjusted amount of NSP requested in the pre-application (highest to lowest in order to meet the CDBG NSP intention to target funds and reach greater impact per project. These projects still had to demonstrate a high likelihood that project activities could be completed in an expeditious manner).

Step 7: Pre-applications were identified (in or whole or in part) according to the Proposed DED CDBG NSP Allocation Table in this section. Note: some projects are proposed to receive a portion of the total requested to ensure eligibility and feasibility of the project.

Step 8: Pre-applications identified and trends of pre-applications submitted were used to develop Section G of this plan.

Step 9: Application Guidelines including all necessary information to determine project eligibility and feasibility will be available February 16, 2009.

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Step 10: Full applications will be due (received) March 31, 2009. All eligible applicants and projects may submit an application for DED CDBG NSP funds by March 31, 2009.

Step 11: Project applications will be selected using the following Feasibility and Priority Score and cross-referenced with the Area Need Level as described in Steps 6 and 7 of this section. This score is very similar to the Eligibility and Feasibility Score, however, eligibility will be determined prior to assigning a score since all projects will have to be eligible to receive award and release of funds. By using a Score that is similar to the score used to complete Section G. it is intended that this will reduce the likelihood that DED will have to submit an amendment to this DED CDBG NSP grant submission.

Feasibility and Priority Score for full applications

1 = (a) project will contribute to meeting the state requirement that 25% of the funds will be used to provide housing for families with incomes at or below 50% of the Area Median Family Income, and (b) the project timeline is clearly feasible considering the capacity of the administrator, and the grantee and the project was submitted in a pre-application in 2008.

2 = (a) project will contribute to meeting the state requirement that 25% of the funds will be used to provide housing for families with incomes at or below 50% of the Area Median Family Income, and (b) the project timeline is likely feasible considering the capacity of the administrator and the grantee, and the project was submitted in a pre-application in 2008.

3 = (a) project meets the goals of the NSP to stabilize neighborhoods through targeted activities, and project meets a priority goal of Housing and Community Development Plans, and (b) the project was submitted as a pre-application in 2008 and the project timeline is clearly feasible considering the capacity of the administrator and the grantee

4 = (a) project meets the goals of the NSP to stabilize neighborhoods through targeted activities, or project meets Housing and Community Development plan goals, and (b) the project was submitted in a pre-application in 2008 or the project timeline is clearly feasible considering the capacity of the administrator and the grantee.

5 = (a) project meets the goals of the NSP to stabilize neighborhoods, or project meets DED Housing and Community Development plan goals, and (b) the project was submitted as a pre-application in 2008, and the project timeline and compliance are likely feasible considering the capacity of the administrator and grantee.

6 = (a) project meets the goals of the NSP to stabilize neighborhoods, or project meets Housing and Community Development plan goals, and (b) the projected was submitted in a pre-application in 2008, or the project timeline and compliance are likely feasible considering the capacity of the administrator and grantee.

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7 = (a) project meets the goals of the NSP to stabilize neighborhoods through targeted activities, or project meets a priority goal of the Housing and Community Development Plans, and (b) the national objective can be met, however, timeliness and compliance are uncertain considering the capacity of the grantee and administrator.

8 = (a) project does not clearly meet the goals of the NSP to stabilize neighborhoods, or DED priorities and goals, however, (b) the project was submitted in a pre-application in 2008 or the project timeline is likely feasible considering the capacity of the administrator and the grantee.

9 = (a) project clearly does not meet the goals of the NSP to stabilize neighborhoods, or DED priorities and goals, however, (b) the national objective can be met, but, timeliness and likelihood for compliance are uncertain considering the capacity of the grantee and administrator.

10 = (a) project clearly does not meet the goals of the NSP to stabilize neighborhoods, or DED priorities and goals, and (b) the project clearly can not meet the proposed timeline considering the capacity of the grantee and administrator

C. DEFINITIONS AND DESCRIPTIONS

(1) Definition of “blighted structure” in context of state or local law.

Response:

Definition of blighted structure

The State of Nebraska definition of blighted structure for purposes of implementing the Community Development Block Grant Neighborhood Stabilization Program is as follows:

Blighted structure includes, but is not limited to, any dwelling, garage, outbuilding, warehouse, commercial building, or any other structure or part of a structure, which:

(a) because of the effects of fire, wind, flood, or other natural disaster;(b) because of physical deterioration; or,(c) because of demolition, or partial demolition, not carried out to

completion within a reasonable period of time; is no longer habitable as a dwelling or, in the case of a non-dwelling structure, is no longer useful for the purpose for which the non-dwelling structure was intended, and which has been designated by a State CDBG-recipient unit of local government or non-profit organization as detrimental to the public health or safety in its present condition and use.

Definition of blighted structure in the context of state law

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A definition for “blighted structure” is not contained in Nebraska law. The above definition was developed by incorporating frequently occurring elements from definitions of blighted structure by other governmental entities with appropriate elements from the definitions for substandard area and blighted area in the Nebraska Community Development Law. The following definitions contained in Nebraska State Law are related to defining blighted structures.

Nebraska Community Development Law - Nebraska Statute Section 18-2103 (10)

Substandard areas means an area in which there is a predominance of buildings or improvements, whether nonresidential or residential in character, which, by reason of dilapidation, deterioration, age or obsolescence, inadequate provision for ventilation, light, air, sanitation, or open spaces, high density of population and overcrowding, or the existence of conditions which endanger life or property by fire and other causes, or any combination of such factors, is conducive to ill health, transmission of disease, infant mortality, juvenile delinquency, and crime, (which cannot be remedied through construction of prisons), and is detrimental to the public health, safety, morals, or welfare;

Nebraska Community Development Law - Nebraska Statute Section 18-2103 (11)

Blighted area means an area, which (a) by reason of the presence of a substantial number of deteriorated or deteriorating structures, existence of defective or inadequate street layout, faulty lot layout in relation to size, adequacy, accessibility, or usefulness, insanitary or unsafe conditions, deterioration of site or other improvements, diversity of ownership, tax or special assessment delinquency exceeding the fair value of the land, defective or unusual conditions of title, improper subdivision or obsolete platting, or the existence of conditions which endanger life or property by fire and other causes, or any combination of such factors, substantially impairs or arrests the sound growth of the community, retards the provision of housing accommodations, or constitutes an economic or social liability and is detrimental to the public health, safety, morals, or welfare in its present condition and use and (b) in which there is at least one of the following conditions: (i) Unemployment in the designated area is at least one hundred twenty percent of the state or national average; (ii) the average age of the residential or commercial units in the area is at least forty years; (iii) more than half of the plotted and subdivided property in an area is unimproved land that has been within the city for forty years and has remained unimproved during that time; (iv) the per capita income of the area is lower than the average per capita income of the city or village in which the area is designated; or (v) the area has had either stable or decreasing population based on the last two decennial censuses. In no event shall a city of the metropolitan, primary, or first class designate more than thirty-five percent of the city as blighted, a city of the second class shall not designate an area larger than fifty percent of the city as blighted, and a village shall not designate an area larger than one hundred percent of the village as blighted;

Nebraska Redevelopment Act - Nebraska Statute Section 58-503(6)

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Blighted and substandard area means an area either within a city or cities or up to ten miles outside of the area of operation of a city or cities of the metropolitan or primary class, up to six miles outside of the area of operation of a city or cities of the first class, and up to three miles outside of the area of operation of a city or cities of the second class or village or villages, or any combination thereof, in which by reason of (a) the existence of significant areas of unimproved or insufficiently developed land, (b) the lack of a significant number of new and growing business enterprises, (c) the lack of sufficient economic growth, (d) the dilapidation, deterioration, age, or obsolescence of buildings and improvements, (e) the lack of a state, regional, or local redevelopment plan or program, (f) the existence of significant conditions which prevent or do not promote economic growth within such area, (g) the lack of medical and health care facilities, (h) the lack of utilities and other government services infrastructure, or (i) any combination of such factors, there exists (i) insufficient safe, sanitary, and available housing for low-income and moderate-income families and persons, including, but not limited to, persons displaced by clearing of slums or blighted areas or by other public programs, (ii) job growth at less than the United States or midwest average job growth rates, (iii) average wages at less than the United States or midwest average wage levels, (iv) a net emigration of population, (v) population growth that is less than that of the United States or the midwest, (vi) the failure to utilize substantial land areas at their highest and best uses in comparison to other areas within such city or cities, (vii) an abundance of property that is not on the tax rolls at levels at least equal to industrial and residential valuation levels, or (viii) any combination of such results;

(2) Definition of “affordable rents.”

Response:

Definition of affordable rents

The State of Nebraska definition of affordable rents for purposes of implementing the Community Development Block Grant Neighborhood Stabilization Program is as follows:

Affordable Rents must meet the following qualifications:

a. Rent Limitation: NSP provides the following maximum NSP rent limits. The maximum NSP rents are the lesser of:

1. The fair market rent for existing housing for comparable units in the area as established by HUD under 24 CFR 888.111; or

2. A rent that does not exceed 30 percent of the adjusted income of a family whose annual income equals 65 percent of the median income for the area, as determined by HUD, with adjustments for number of bedrooms in the unit. The HOME rent limits provided by HUD will include average occupancy per unit and adjusted income assumptions.

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b. Initial rent schedule and utility allowance:

1. The participating jurisdiction must establish maximum monthly allowances for utilities and services (excluding telephone). The participating jurisdiction must review and approve rents proposed by the owner for units subject to the maximum rent limitations in paragraphs (a) or (b) of this section. For all units subject to the maximum rent limitations in paragraphs (a) or (b) of this section for which the tenant is paying utilities and services, the participating jurisdiction must ensure that the rents do not exceed the maximum rent minus the monthly allowances for utilities and services.

c. Subsequent rents during the affordability period:

1. The maximum HOME rent limits are recalculated on a periodic basis after HUD determines fair market rents and median incomes. HUD then provides the new maximum HOME rent limits to participating jurisdictions. Regardless of changes in fair market rents and in median income over time, the HOME rents for a project are not required to be lower than the HOME rent limits for the project in effect at the time of project commitment.

2. The Nebraska Department of Economic Development (DED) NSP grantee must provide project owners with information on updated NSP rent limits so that rents may be adjusted (not to exceed the maximum HOME rent limits in paragraph (a) of this section) in accordance with the written agreement between the DED NSP grantee and the owner. Owners must annually provide the DED NSP grantee with information on rents and occupancy of NSP-assisted units to demonstrate compliance with this section.

3. Any increase in rents for NSP-assisted units is subject to the provisions of outstanding leases, and in any event, the owner must provide tenants of those units not less than 30 days prior written notice before implementing any increase in rents.

This definition is an adoption of the HOME program standards at 24 CFR 92.252 (a), (c), and (f). (3) Describe how the grantee will ensure continued affordability for NSP assisted housing.

Response:

Description of continued affordability

The State of Nebraska description of how the Nebraska Department of Economic Development (DED) will ensure continued affordability for purposes of implementing

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the Community Development Block Grant Neighborhood Stabilization Program is as follows:

NSP-assisted housing must meet the following affordability requirements:

Rental Housing

a. Periods of Affordability. The NSP-assisted units must meet the affordability requirements for not less than the applicable period specified in the following table, beginning after project completion. The affordability requirements apply without regard to the term of any loan or mortgage or the transfer of ownership. They must be imposed by deed restrictions, covenants running with the land, or other mechanisms approved by the Nebraska Department of Economic Development (DED), except that the affordability restrictions may terminate upon foreclosure or transfer in lieu of foreclosure. The DED NSP grantee may use purchase options, rights of first refusal or other preemptive rights to purchase the housing before foreclosure or deed in lieu of foreclosure to preserve affordability. The affordability restrictions shall be revived according to the original terms if, during the original affordability period, the owner of record before the foreclosure, or deed in lieu of foreclosure, or any entity that includes the former owner or those with whom the former owner has or had family or business ties, obtains an ownership interest in the project or property.

Rental Housing Activity Minimum period of affordability in years Rehabilitation or acquisition of existing housing per unit amount of NSP funds:

Under $15,000

5

$15,000 to $40,000 10 Over $40,000 or rehabilitation involving

refinancing 15

New Construction or acquisition of newly constructed housing

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Homeownership

a. Acquisition with or without rehabilitation. Housing that is for acquisition by a family must meet the affordability requirements of this paragraph (a).

1. The housing must be single-family housing.

2. The housing must be modest housing as follows:

i. In the case of acquisition of newly constructed housing or standard housing, the housing has a purchase price for the type of single family housing that

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does not exceed 95 percent of the median purchase price for the area, as described in paragraph (a)(2)(iii) of this section.

ii. In the case of acquisition with rehabilitation, the housing has an estimated value after rehabilitation that does not exceed 95 percent of the median purchase price for the area, described in paragraph (a)(2)(iii) of this section.

iii. If a DED NSP grantee intends to use NSP funds for homebuyer assistance or for rehabilitation of owner-occupied single-family properties, the DED NSP grantee must use the Single Family Mortgage Limits under Section 203(b) of the National Housing Act (12 U.S.C. 1709(b)) (which may be obtained from the HUD Field Office).

3. The housing must be acquired by a homebuyer whose family qualifies as a income qualified family and the housing must be the principal residence of the family throughout the period described in paragraph (a)(4) of this section.

4. Periods of affordability. The NSP-assisted housing must meet the affordability requirements for not less than the applicable period specified in the following table, beginning after project completion. The per unit amount of NSP funds and the affordability period that they trigger are described more fully in paragraphs (a)(5)(i) (resale) and (ii) (recapture) of this section.

Homeownership assistance NSP amount per-unit Minimum period of affordability in years

Under $15,000 5 $15,000 to $40,000 10

Over $40,000 15

5. Resale and recapture. To ensure affordability, the DED NSP-grantee must impose either resale or recapture requirements, at its option. The DED NSP-grantee must establish the resale or recapture requirements that comply with the standards of this section and set forth the requirements in its program guidelines. DED must determine that they are appropriate.

i. Resale. Resale requirements must ensure, if the housing does not continue to be the principal residence of the family for the duration of the period of affordability, that the housing is made available for subsequent purchase only to a buyer who is an income-qualified family and will use the property as its principal residence. The resale requirement must also ensure that the price at resale provides the original NSP-assisted owner a fair return on investment (including the homeowner’s investment and any capital improvement) and ensure that the housing will remain affordable to a reasonable range of income eligible homebuyers as defined by the CDBG NSP. The period of affordability is based on the total amount of NSP funds invested in the housing.

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A. Except as provided in paragraph (a)(5)(i)(B) of this section, deed restrictions, covenants running with the land, or other similar mechanisms must be used as the mechanism to impose the resale requirements. The affordability restrictions may terminate upon occurrence of any of the following termination events: foreclosure, transfer in lieu of foreclosure or assignment of an FHA insured mortgage to HUD. The DED NSP-grantee may use purchase options, rights of first refusal or other preemptive rights to purchase the housing before foreclosure to preserve affordability. The affordability restrictions shall be revived according to the original terms if, during the original affordability period, the owner of record before the termination event, obtains an ownership interest in the housing.

B. Certain housing may be presumed to meet the resale restrictions (i.e., the housing will be available and affordable to a reasonable range of income-eligible homebuyers; an income-eligible homebuyers will occupy the housing as the family’s principal residence; and the original owner will be afforded a fair return on investment) during the period of affordability without the imposition of enforcement mechanisms by the DED NSP-grantee. The presumption must be based upon a market analysis of the neighborhood in which the housing is located. The market analysis must include an evaluation of the location and characteristics of the housing and residents in the neighborhood (e.g., sale prices, age and amenities of the housing stock, incomes of residents, percentage of owner-occupants) in relation to housing and incomes in the housing market area. An analysis of the current and projected incomes of neighborhood residents for an average period of affordability for homebuyers in the neighborhood must support the conclusion that a reasonable range of low-income families will continue to qualify for mortgage financing. For example, an analysis shows that the housing is modestly priced within the housing market area and that families with incomes of 65% to 80% of area median can afford monthly payments under average FHA terms without other government assistance and housing will remain affordable at least during the next five to seven years compared to other housing in the market area; the size and amenities of the housing are modest and substantial rehabilitation will not significantly increase the market value; the neighborhood has housing that is not currently owned by the occupants, but the DED-NSP grantee is encouraging homeownership in the neighborhood by providing homeownership assistance and by making improvements to the streets, sidewalks, and other public facilities and services. If a DED NSP-grantee in preparing a neighborhood revitalization strategy under 24 CFR Part 91.215(e)(2) of its consolidated plan or Empowerment Zone or Enterprise Community application under 24 CFR part 597 has incorporated the type of market data described above, that submission may serve as the required analysis under this section. If the DED NSP-grantee continues to provide homeownership assistance for housing in the neighborhood, it must

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periodically update the market analysis to verify the original presumption of continued affordability.

ii. Recapture. Recapture provisions must ensure that the DED NSP-grantee recoups all or a portion of the NSP assistance to the homebuyers, if the housing does not continue to be the principal residence of the family for the duration of the period of affordability. The DED NSP-grantee may structure its recapture provisions based on its program design and market conditions. The period of affordability is based upon the total amount of NSP funds subject to recapture described in paragraph (a)(5)(ii)(A)(5) of this section.

A. The following options for recapture requirements are acceptable to DED. The DED NSP-grantee may adopt, modify or develop its own recapture requirements for DED approval. In establishing its recapture requirements, the DED NSP-grantee is subject to the limitation that when the recapture requirement is triggered by a sale (voluntary or involuntary) of the housing unit, and there are no net proceeds or the net proceeds are insufficient to repay the NSP investment due, the DED NSP-grantee can only recapture the net proceeds, if any. The net proceeds are the sales price minus superior loan repayment (other than NSP funds) and any closing costs.

1. Recapture entire amount. The DED NSP-grantee may recapture the entire amount of the NSP investment from the homeowner.

2. Reduction during affordability period. The DED NSP-grantee may reduce the NSP investment amount to be recaptured on a prorata basis for the time the homeowner has owned and occupied the housing measured against the required affordability period.

3. Shared net proceeds. If the net proceeds are not sufficient to recapture the full NSP investment (or a reduced amount as provided for in paragraph (a)(5)(ii)(A)(2) of this section) plus enable the homeowner to recover the amount of the homeowner’s downpayment and any capital improvement investment made by the owner since purchase, the DED NSP-grantee may share the net proceeds. The net proceeds are the sales price minus loan repayment (other than NSP funds) and closing costs. The net proceeds may be divided proportionally as set forth in the following mathematical formulas:

NSP Investment/homeowner investment + homeowner investment

X Net Proceeds = NSP amount to be recaptured

homeowner Investment /NSP X Net Proceeds = Amount to homeowner

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Investment + homeownerinvestment

4. Owner investment returned first. The DED NSP-grantee may permit the homebuyer to recover the homebuyer’s entire investment (downpayment and capital improvements made by the owner since purchase) before recapturing the NSP investment.

5. Amount subject to recapture. The NSP investment that is subject to recapture is based on the amount of NSP assistance that enabled the homebuyer to buy the dwelling unit. This includes any NSP assistance that reduced the purchase price from fair market value to an affordable price, but excludes the amount between the cost of producing the unit and the market value of the property (i.e., the development subsidy). The recaptured funds must be used to carry out NSP-eligible activities in accordance with the NSP requirements. If the NSP assistance is only used for the development subsidy and therefore not subject to recapture, the resale option must be used.

6. Special considerations for single-family properties with more than one unit. If the NSP funds are only used to assist an income qualified homebuyer to acquire one unit in single-family housing containing more than one unit and the assisted unit will be the principal residence of the homebuyer, the affordability requirements of this section apply only to the assisted unit. If NSP funds are also used to assist the income qualified homebuyer to acquire one or more of the rental units in the single-family housing, the affordability requirements of Rental Housing apply to assisted rental units, except that the DED NSP-grantee may impose resale or recapture restrictions on all assisted units (owner-occupied and rental units) in the single family housing. If resale restrictions are used, the affordability requirements on all assisted units continue for the period of affordability. If recapture restrictions are used, the affordability requirements on the assisted rental units may be terminated, at the discretion of the DED NSP-grantee, upon recapture of the NSP investment. (If NSP funds are used to assist only the rental units in such a property then the requirements of rental housing affordability requirements would apply and the owner-occupied unit would not be subject to the income targeting or affordability provisions of homeownership housing affordability requirements.)

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7. Lease-purchase. NSP funds may be used to assist homebuyers through lease-purchase programs for existing housing and for housing to be constructed. The housing must be purchased by a homebuyer within 36 months of signing the lease-purchase agreement. The homebuyer must be an income-qualified family at the time the lease-purchase agreement is signed. If NSP funds are used to acquire housing that will be resold to a homebuyer through a lease-purchase program, the NSP affordability requirements for rental housing shall apply if the housing is not transferred to a homebuyer within forty-two months after project completion.

8. Contract to purchase. If NSP funds are used to assist a homebuyer who has entered into a contract to purchase housing to be constructed, the homebuyer must be an income-qualified family at the time the contract is signed.

b. Rehabilitation not involving acquisition. Housing that is currently owned by a family qualifies as affordable housing only if:

1. The estimated value of the property, after rehabilitation, does not exceed 95 percent of the median purchase price for the area, described in paragraph (a)(2)(iii) of this section; and

2. The housing is the principal residence of an owner who is income-qualified at the time NSP funds are committed to the housing.

c. Ownership interest. The ownership in the housing assisted under this section must meet the following definition of “homeownership”:

1. homeownership means ownership in fee simple title or a 99 year leasehold interest in a one- to four-unit dwelling or in a condominium unit, or equivalent form of ownership approved by DED. The ownership interest may be subject only to the restrictions on resale required under homeownership (a) ; mortgages, deeds of trust, or other liens or instruments securing debt on the property as approved by the DED NSP-grantee; or any other restrictions or encumbrances that do not impair the good and marketable nature of title to the ownership interest. For purposes of the insular areas, homeownership includes leases of 40 years or more. For purposes of housing located on trust or restricted Indian lands, homeownership includes leases of 50 years. The DED NSP-grantee must determine whether or not ownership or membership in a cooperative or mutual housing project constitutes homeownership under State law.

d. New construction without acquisition. Newly constructed housing that is built on property currently owned by a family which will occupy the housing upon

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completion, qualifies as affordable housing if it meets the requirements under paragraph (a) of this section.

This description is an adoption of the HOME program standards applicable provisions at 24 CFR 92.252 (e) and 92.254.

(4) Describe housing rehabilitation standards that will apply to NSP assisted activities.

Response:

Description of housing rehabilitation standards

The State of Nebraska description of housing rehabilitation standards that will apply to NSP-assisted activities for purposes of implementing the Community Development Block Grant Neighborhood Stabilization Program is as follows:

NSP-assisted housing activities including rehabilitation of housing must meet the following housing rehabilitation standards:(1) All housing units rehabilitated as an NSP-assisted housing activity must meet local codes that apply; and(2) All housing units rehabilitated as an NSP-assisted housing activity must meet the Nebraska Department of Economic Development (DED) Rehabilitation Standards required for the Nebraska HOME program, Nebraska CDBG program, and Nebraska Affordable Housing Trust Fund. The current DED Rehabilitation Standards are described below.

MINIMUM STANDARDS FOR REHABILITATIONNebraska Department of Economic Development

A. MINIMUM STANDARDS FOR BASIC EQUIPMENT AND FACILITIES

1. KITCHENS – Every dwelling shall have a kitchen room or kitchenette equipped with a kitchen sink, properly connected to both hot and cold running water lines, under pressure, and in working order.

2. TOILET ROOM REQUIRED – Every dwelling unit, except as otherwise permitted for rooming houses, shall contain a room that is equipped with a flush water closet and properly installed lavatory. Said lavatory shall be properly connected to both hot and cold running water, under pressure, and shall be in working order. Fixtures shall be properly installed, free of hazards, leaks and defects, and in functional and sanitary order.

Said flush water closet shall be properly connected to the water supply, under pressure, and shall be in working order.

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3. SHARED TOILET FACILITIES – Shared toilet rooms shall be equipped with a flush water closet and lavatory basin, and shall be connected as provided in Section 2 above. In rooming house type structures, at least 1 toilet and 1 lavatory basin, properly connected as set forth above, shall be supplied for each 8 persons or fractions thereof residing within a rooming house, including members of the operator’s family whenever they share the use of said facilities, provided that in rooming houses where rooms are let only to males, flush urinals may be substituted for not more than ½ of the required number of toilets.

4. BATH REQUIRED – Every dwelling unit shall contain a bathtub and/or shower. Fixtures shall be properly installed, free of hazards, leaks and defects, and shall be in functional and sanitary order.

Potable water supply piping, water discharge outlets, backflow prevention devices or similar equipment shall not be so located as to make possible their submergence in any contaminated or polluted liquid or substance.

Said bathtub and/or shower may be in the same room as the flush water closet and lavatory, or said bathtub and/or shower may be in a separate room. In all cases, these facilities shall be properly connected to both hot and cold running water lines, under pressure, and shall be in working order.

In rooming house type structures, at least 1 bathtub and/or shower, properly connected as set forth above, shall be supplied for each 8 persons or fractions thereof, residing within a rooming house, including members of the operator’s family whenever they share the use of said facilities.

5. PRIVACY IN ROOM CONTAINING TOILET AND BATH – Every toilet and every bath shall be contained in a room or within separate rooms which affords privacy to a person within said room or rooms. Said rooms shall not be the only passageway to the exterior.

Toilets and bathrooms shall have doors with a privacy type lock and such doors, locks and hardware shall be in working order.

6. LOCATION OF COMMUNAL TOILETS AND BATHS – Every communal bath required to be provided in accordance with other provisions, shall be located within a room or rooms accessible to the occupants of each dwelling unit sharing such facilities, without going through a dwelling unit of another occupant and without going outside of the dwelling.

In rooming houses, said room or rooms shall be located on the same floor of the dwelling as, or on the floor immediately above or below, the dwelling unit whose occupants share the use of such facilities.

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7. WATER SUPPLY – All fixture water supplies shall be properly connected to public or private water system.

All water supply inlet orifices (mouth of an opening from any pipe or faucet supplying water) shall have an air gap (The unobstructed vertical distance through the free atmosphere between the lowest opening from any pipe or faucet supplying water to a tank, plumbing fixture or other device and the floor level rim of the receptacle.)

or shall be protected by vacuum breakers (also known as backflow preventers).

8. HOT AND COLD WATER LINES TO BATH AND KITCHEN – Every dwelling shall have supplied water-heating facilities which are properly installed; in working condition and free of leaks; properly connected to hot water lines required; and are capable of supplying hot or tempered water at not less than 110°F to be drawn for every bath, as well as general usage.

Hot water storage associated with water heating facilities shall not be less than the following minimum capacities:

a. 1 dwelling unit 30 gallonsb. 2 dwelling units 40 gallonsc. 3 or more dwelling units 50 gallons or more

and rooming houses

Sizes and/or number of water heaters are to be based upon the number of units served. No water heaters shall be allowed in bathrooms or bedrooms. All hot water heaters shall be properly vented and sealed and equipped with a pressure relief valve and drip leg a maximum of 6” above the floor.

The local rehabilitation division and/or building inspection division may adjust the above-required capacities upward or downward based on the type and recovery time of the hot water system.

9. CONNECTION OF SANITARY FACILITIES TO SEWAGE SYSTEM – Every kitchen sink, toilet, lavatory basin and bathtub/shower shall be in working condition and properly connected to an approved public or private sewage system.

All sewers and vents shall function properly and be free of leaks and blockages.

10. EXITS – Every exit from every dwelling and/or dwelling unit shall comply with the following requirements:

a. It shall be functional;

b. It shall be unobstructed;

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c. All stairways and steps of 4 or more risers shall have at least 1 handrail, and all stairways and steps that are 5 feet or more in width or open on both sides shall have a handrail on each side where possible;

d. Every dwelling unit shall have 2 independent ways of egress;

e. All handrails shall be not less than 30” or more than 42” vertically above the nose of the stair treads and not less than 36” above the stairway platform;

f. All balconies and platforms that are 30” or more above grade, shall have protective guards not less than 30” in height above the balcony or platform level;

g. All multiple dwellings (1 & 2 family residences exempted) shall have a second exit stairway or approved fire escape available to all occupants of units located on second or higher stories;

h. All stairs and steps shall have a riser height of no more than 8” and a tread depth of no less than 9”. This requirement may be waived on the programmatic level if in an existing structure, it would be impossible or cost prohibitive to meet this requirement. In such cases, new stairs could be put in having the same rise and run as the old;

i. In basement units where one means of an exit shall be a window, it shall comply with the International Residential Code, Section 310 Emergency Escape and Rescue Openings.

11. FIRE PROTECTION AND SMOKE ALARMS – All fire protection systems and devices shall be in operable condition. When a dwelling is occupied by any hearing impaired person, smoke alarms shall have an alarm system designed for hearing impaired persons in accordance with NFPA 74 (or successor standards).

Smoke alarms shall be installed: On each story, including basement and cellar (Alarms are not required in

unfinished attics and crawl spaces) Outside of each bedroom In each bedroom

B. MINIMUM STANDARDS FOR LIGHT, VENTILATION AND HEATING

1. REQUIRED WINDOW AREA – Every habitable room, provided such rooms are adequately lighted, shall have at least one open air space. The minimum total window area, measured between stops, for every habitable room shall be as follows:

a. 1/12 of the floor area if two or more separate windows exist or

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b. 1/10 of the floor area if only one window exists;

c. a minimum of 12 square feet of window area is required in habitable rooms other than kitchens;

d. a kitchen may pass without a window area, provided there is a mechanical means of ventilation in working order.

Whenever the only window in a room is a skylight type window, the total window area of such skylight shall be equal to at least 15% of the total floor area of such room. Skylight type windows, if less than 15% of the total floor area shall be increased to 15% of the total floor area, unless another window is to be installed to provide adequate light and ventilation.

2. ADEQUATE VENTILATION REQUIRED - Every habitable room shall have at least one window or skylight which can easily be opened, or other such device as will adequately ventilate the room.

3. LIGHT AND VENTILATION REQUIREMENTS FOR BATHROOMS, TOILET ROOMS AND KITCHENS Every bathroom, toilet room, and kitchen shall comply with the light and ventilation requirements for habitable rooms contained above, except that no window shall be required in adequately ventilated bathrooms, toilet rooms, or kitchens equipped with a ventilation system that filters or exhausts to the exterior.

4. ALTERNATIVE LIGHT AND VENTILATION – Artificial light or mechanical ventilation complying with theInternational Building Code shall be permitted.

5. CLOTHES DRYER VENTING – Clothes dryer exhaust vent shall be a single purpose vent in compliance with the manufacturer’s instructions and vent to the exterior.

6. ELECTRIC OUTLETS AND SERVICE REQUIRED - Where there is suitable electricity available from supply lines no more than 300 feet away from a dwelling, including all existing dwellings now supplied with electrical services, every habitable room within such dwelling shall contain a minimum of two separate and remote wall type electric convenience outlets. Habitable rooms measuring more than 120 square feet shall contain a minimum of three separate and remote wall type electric convenience outlets. Temporary wiring, extension, or zip cords shall not be used as permanent wiring.

Every habitable room shall have at least one ceiling or wall type electric light fixture, controlled by a wall switch, or a wall type grounded electric convenience outlet controlled by a remote switch.

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Every toilet room, bathroom, laundry room, furnace room, and hallway (hallway where applicable) shall contain at least 1 supplied ceiling or wall type electric light fixture, controlled by a wall switch, and at least one wall type grounded electric convenience outlet. Convenience outlets used in bathrooms shall be the GFI type.

Each individual kitchen based on its size and layout shall be wired to meet the requirements of the National Electric Code (N.E.C.).

Receptacle convenience outlets in or on open porches, breezeways or garages shall be of the GFI type with a weather proof receptacle box.

All wall and/or ceiling type lighting fixtures shall be controlled by a wall switch, except porcelain type fixtures used in cellars and/or attics, which may be controlled with a proper pull chain.

All electrical equipment, appliances and wiring shall be properly installed and in safe condition.

All broken and/or missing switch and receptacle plates shall be replaced.

All outlets and fixtures shall be properly installed, shall be in working condition and shall be connected to the source of electric power in a proper manner and in accordance with the electrical code of the city and/or the N.E.C., as applicable.

Minimum electrical service for each dwelling and/or dwelling unit’s circuit breaker box shall be by a three wire 120/240 volt single phase service rated no less than 100 amps, or as adjusted for size and usage of equipment and appliances in accordance with the ICC Electrical Code and approved, in writing, by the electrical inspector of the local jurisdiction or program.

7. HAZARDOUS ELECTRICAL CONDITIONS – Where any condition of the electrical system in the dwelling or structure is identified as, and constitutes a hazard, the hazardous conditions shall be corrected.

8. HEATING FACILITIES –Heating facilities shall be properly installed, be in working condition and be capable of adequately heating all habitable rooms, and toilet rooms contained therein, or intended for use by the occupants capable of maintaining a room temperature of 68°F (20°C) when the outdoor temperature is within the winter outdoor design temperature for the locality as cited in Appendix D of the International Plumbing Code. Space heaters shall not substitute for a central heating unit.

Every installed central heating system shall comply with the following requirements:

a. The central heating unit shall be safe and in good working condition;

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b. Every heat duct, steam pipe and hot water pipe shall be free of leaks and obstructions and deliver an adequate amount of heat where intended;

c. Every seal between any and all sections of a hot air furnace shall be air-tight so noxious gases and fumes will not escape into the heat ducts;

d. Required clearance from combustible materials shall be maintained;

e. All chimneys and vents shall have a flue liner intact and in safe working condition.

Every existing space heater shall comply with the following requirements:a. No space heater burning solid, liquid or gaseous fuels shall be of a portable type;

b. Every space heater burning solid, liquid or gaseous fuels shall be properly vented to a chimney or duct leading to outdoor space and be installed to provide proper draft;

c. Every fuel burning space heater shall have a fire-resistant panel between it and the floor or floor covering as required by the unit’s manufacturer;

d. Whenever a space heater is located within 2 feet of a wall, said wall shall be protected with insulation sufficient to prevent overheating of the wall as required by the unit’s manufacturer; ;

e. Every space heater smoke pipe shall be equipped with approved thimbles or guards, properly constructed of non-flammable material, at the point where the pipe goes through any wall, ceiling or partition;

f. Each dwelling and/or dwelling unit shall be supplied with its own heating systems. Local option may provide for one central forced air system to serve no more than two separate dwelling units.

9. LIGHTING OF PUBLIC HALLS AND STAIRWAYS

a. Public halls and stairways in every dwelling containing 2 to 4 dwelling units shall be provided with convenient wall-mounted light switches controlling an adequate lighting system that will provide at least 2 foot candles of illumination on all parts thereof and be turned on when needed. An emergency circuit is not required for this lighting;

b. Public halls and stairways in every dwelling containing 5 or more dwelling units shall be lighted at all times with an artificial lighting system. Said system shall provide at least 2 foot candles of illumination on all parts thereof at all times by means of properly located electric light fixtures, provided that such artificial

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lighting may be omitted from sunrise to sunset where an adequate natural lighting system is provided;

c. Wherever the occupancy of the building exceeds 100 persons, the artificial lighting system as required herein, shall be on an emergency circuit;

d. All basements and cellars shall be provided with a lighting system that permits safe occupancy and use of the space and contained equipment as intended, and which may be turned on when needed;

e. The required intensity of illumination shall apply to both natural and artificial lighting.

10. SCREENS REQUIRED - For protection against flies, mosquitoes and other insects, every door opening directly from a dwelling unit or rooming unit, to the outdoor space where feasible, shall be supplied with a screen covering at least 50% of the window area of the door, and said door shall be equipped with a self-closing device.

Every window or other opening to outdoor space used or intended to be used for ventilation shall likewise be supplied with screens covering the entire window areas required for ventilation. The material used for all such screens shall be no less than 16 mesh per inch, properly installed, and repaired when necessary to prevent the entrance of flies, mosquitoes and other insects.

Half-screens on windows may be allowed, provided they are properly installed and are bug and insect proof.

11. SCREENS FOR BASEMENT AND CELLAR WINDOWS - Every dwelling unit having operable basement or cellar windows shall be screened to prevent the entry of insects and rodents.

12. EXISTING HEATING TO DWELLINGS OR PARTS THEREOF - Every dwelling owner or operator who rents, leases or lets for human habitation any unit contained within such dwelling, on terms either expressed or implied, shall supply or furnish heat to the occupants.

Whenever a dwelling is heated by means of a furnace, boiler or other heating apparatus under the control of the owner or operator, in the absence of a written contract or agreement to the contrary, said owner and/or operator shall be deemed to have contracted, undertaken, or bound to furnish heat in accordance with the provisions of this section to every unit that contains radiators, furnace heat duct outlets, or other heating apparatus outlets, and to every communal bathroom and communal toilet room located within such unit.

a. Every central heating unit, space heater, water heater and cooking appliance shall be located and installed in a safe working manner to protect against involvement

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of egress facilities or egress routes in the event of uncontrolled fires in the structure;

b. Every fuel burning heating unit or water heater shall be effectively vented in a safe manner to a chimney or duct leading to the exterior of the building. The chimney duct and vents shall be designed to assure proper draft, shall be adequately supported, and shall be clean;

c. No fuel-burning furnace shall be located in any sleeping room or bathroom unless provided with adequate ducting for air supply from the exterior, and the combustion chamber for such heating unit is sealed from the room in an airtight manner. Water heaters are prohibited in bathrooms and sleeping rooms.

d. Every steam or hot water boiler and every water heater shall be protected against overheating by appropriate temperature and pressure limit controls;

e. Every gaseous or liquid fuel burning heating unit and water heater shall be equipped with electronic ignition or with a pilot light and an automatic control to interrupt the flow of fuel to the unit in the event of failure of the ignition device. All such heating units with plenum have a limit control to prevent overheating.

C. MINIMUM STRUCTURAL STANDARDS

1. SIDEWALKS AND DRIVEWAYS – All sidewalks, driveways, stairs and similar areas shall be free of hazardous conditions and in proper repair.

2. PREMISE IDENTIFICATION NUMBERS – Address numbers easily visible and legible from the street or road shall be installed. Numbers shall contrast in color with their background and be at least 4 inches high with a minimum stroke width of one half inch.

3. FOUNDATIONS, EXTERIOR WALLS, ROOFS, SOFFITS AND FASCIA - Every foundation, exterior wall, roof, soffit, and fascia shall be structurally sound, weather-tight, and rodent/insect-proof.

All exterior surface materials shall be protected by lead-free paint or other protective coating in accordance with acceptable standards. The exception is all types of exterior materials acceptable to weatherizing without deterioration.

4. INTERIOR WALLS, FLOORS, CEILINGS, DOORS, AND WINDOWS – Every interior partition, wall floor, ceiling, door and window shall be structurally sound.

Holes in walls should be replastered before new paint is applied.

All interior doors shall be capable of affording privacy for which they were intended.

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5. GRADING AND RAINWATER DRAINAGE FROM ROOF - All rainwater shall be drained and conveyed from every roof so as not to cause dampness within the dwelling. All rainwater drainage devices, such as gutters, downspouts, leaders and splashblocks shall be in safe working order. Ground areas around the habitable unit shall be sloped or drain away from foundation walls to prevent standing water.

6. WINDOWS, EXTERIOR DOORS AND BASEMENT OR CELLAR HATCHWAYS - Every front, rear, side and basement or cellar door shall be no less than 2'4" in width and no less than 6' 6" in height. In existing structures, if replacement to meet these requirements would be impossible or cost-prohibitive, said requirement may be waived by the grantee.

Every window, exterior door and basement or cellar hatchway shall be substantially tight and rodent-proof. In addition, the following requirements shall be met:

a. All exterior doors to the outside or to a common public hall shall be equipped with adequate security locks. Means of egress door locks shall be easily opened from the egress side without a key or special knowledge. All windows accessible from ground level without the aid of mechanical devices shall have a security device. Emergency escape windows shall be openable from the inside without the use of a key, code or tool;

b. Every window sash shall be fully equipped with windowpane glazing materials free of cracks or holes, and all panes shall be secured with retaining devices or an adequate amount of putty. Said putty shall not be cracked, broken or missing;

c. Every window sash shall be in good condition and fit tightly within its frame;

d. Every window, other than a fixed window, shall be easily opened and held in position by window hardware;

e. Every exterior and interior door, door hinge, door latch, and/or lock shall be in good working condition;

f. Every exterior and interior door, when closed, shall fit well within its frame;

g. Every window, door and frame shall be constructed in relation to the adjacent wall construction, to exclude rain and wind as completely as possible from entering the dwelling or structure;

7. STAIRWAYS , DECKS, BALCONIES AND PORCHES - Every interior and exterior stairway, porch, deck, balcony and appurtenance thereto, including hand and guard rails, shall be constructed to be sound and safe to use and capable of supporting the load that normal use may place upon it.

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8. SUPPLIED PLUMBING FIXTURES - Every plumbing fixture and water and waste pipe shall be properly installed in safe, sanitary working condition, free from leaks, defects, and obstructions.

9. BATHROOM, TOILET ROOM, KITCHEN AND UTILITY ROOM FLOORS - Every bathroom, toilet room, kitchen, and utility room floor surface shall be constructed to be impervious to water and to permit such floors to be easily kept clean and sanitary.

Indoor-outdoor type carpeting, when properly installed, shall be allowed in bathrooms, toilet rooms, kitchens and utility rooms except when in conflict with required interim controls or standard treatments required to comply with the lead-based paint regulation.

10. CHIMNEYS AND SMOKE PIPES - Every chimney and smoke pipe shall be adequately supported, structurally sound, and clean.

11. TREES AND VEGETATION – Trees and vegetation endangering the unit and/or it occupants shall be eliminated.

12. INTERNATIONAL RESIDENTIAL CODE FOR ONE AND TWO-FAMILY DWELLINGS – All rehabilitation work must meet or exceed the requirements of the International Residential Code as promulgated by the International Code Council in its current edition or as adopted in ordinance by the local jurisdiction.

a. Work must comply with the permitting and inspection requirements of the local jurisdiction.

b. In the absence of local permitting and inspection services, the local recipient program shall engage qualified inspectors and document code inspection and compliance.

13. LEAD-BASED PAINT – As required under 24 CFR Part 35, the Final HUD Regulation on Lead-Based Paint Hazards in Federally Owned Housing and Housing Receiving Federal Assistance, all assisted dwelling units constructed before January 1, 1978, will be evaluated for lead-based paint hazards or presumed to have lead-based paint present throughout the unit when paint is disturbed.

a. Evaluation will be done by a qualified, certified or licensed person as required under the regulation.

b. All lead-based paint hazards will be identified and reduced or eliminated through paint stabilization, interim controls or abatement with work being done by supervised, trained, qualified, certified or licensed persons as required under the regulation.

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c. Safe work practices will be followed at all times.

d. Occupants shall be protected or temporarily relocated as required by the regulation. With some exceptions, as listed at 24 CFR 35.1345, occupants shall be temporarily relocated before and during hazard reduction activities to a suitable, decent, safe and similarly accessible dwelling unit that does not have lead hazards.

e. The dwelling unit and worksite shall be secured. The worksite shall be prepared and warning signs shall be posted as required by the regulation.

f. Clearance examinations will be performed by qualified personnel and final clearance shall be achieved as required by the regulations.

14. ENERGY CONSERVATION –

a. Equipment, appliances, windows, doors and appurtenances replaced during rehabilitation shall be replaced with Energy Star qualified products.

b. If feasible, attics should be insulated to R38 and walls to a minimum of R11.

c. Replacement heating and/or cooling systems shall be properly sized as evidenced by completion of ACCA/ANSI Manual J® or an equivalent sizing calculation tool.

d. All accessible air ducts shall be tightly sealed.

e. Heating or cooling supply running through unconditioned space should be avoided or rerouted, but when present and accessible, shall be insulated.

15. INDOOR AIR QUALITY – The scope and conduct of rehabilitation of each dwelling unit shall take into consideration the improvement and maintenance of satisfactory and healthy air quality within the unit.

a. A carbon monoxide detector installed per manufacturers’ recommendations shall be present in each unit, and receive primary power from the building wiring or battery. If the house is all electric a carbon monoxide detector is not required.

b. Devices and appurtenances identified to contain mercury shall be removed or replaced excluding CFL bulbs.

c. Materials and methods used in carrying out rehabilitation, shall to the extent feasible, minimize and prevent dust, outgassing, volatile organic compounds and other contaminants within the dwelling unit.

16. UNIVERSAL DESIGN AND ACCESSIBILITY – Rehabilitation of each unit shall be carried out with consideration for the needs of its occupants and to the maximum practical extent in accordance with the principles of universal design. For guidance in implementing universal design features, visit www.design.ncsu.edu/cud

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http://www.design.ncsu.edu/cud

D. MINIMUM SPACE, USE AND LOCATION REQUIREMENTS1. CEILING HEIGHT - Wherever possible, no habitable room in a dwelling or dwelling

unit shall have a ceiling height of less than 7' 6". At least 1/2 of the floor area of every habitable room located above the first floor shall have a ceiling height of 7' 6", and the floor area of that part of any room where the ceiling height is less than 5' shall be considered as part of the floor area in computing the total floor area of the room for the purpose of determining maximum floor area.

2. ROOM WIDTH - All rooms, except kitchens and/or kitchenettes and baths, shall have a minimum width of 7'. Kitchens shall have a clear passage dimension of no less than 3 feet between walls, appliances and cabinets.

3. CELLAR SPACE NOT HABITABLE - No cellar space shall be converted or rehabilitated as habitable room or dwelling unit.

4. REQUIREMENTS FOR HABITABLE BASEMENT SPACE - No basement space shall be used as a habitable room or dwelling unit unless all of the following requirements are met:

a. Such required minimum window area is located entirely above the grade of ground adjoining such window area, or an adequate window well of sufficient size as to allow escape of inhabitants residing within such basement apartment, has been constructed;

b. Such basement dwelling unit or rooming unit shall be entirely sealed off from the central heating plant with a one hour fire separation. To assist grantees in evaluating existing building components, HUD has published the “Guideline on Fire Ratings of Archaic Materials and Assemblies”, February 2000, available at http://www.huduser.org/publications/destech/fire.html;

c. Such basement dwelling unit or rooming unit provides two means of exit, with at least one means of opening directly to the outside;

5. MINIMUM STORAGE AREAS - Each dwelling unit shall have at least one closet with a minimum of 6 square feet of floor area and a minimum height of 6’, located within the dwelling unit. Dwelling units with 2 or more bedrooms shall have a storage floor area of at least 4 square feet per bedroom. This storage requirement does not necessarily have to be located in the bedrooms.

E. MINIMUM STANDARDS FOR GARAGES, FENCES AND PREMISES1. PROTECTION OF EXTERIOR WOOD SURFACES - All exterior wood

surfaces shall be properly protected from the elements against decay and rot by lead-free paint, or other approved protective coating.

2. FENCES - Every residential fence shall be in a state of maintenance and repair or shall be removed. Wood materials that are not decay resistant shall be protected against decay by use of lead-free paint or by other preservative material.

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http://www.huduser.org/publications/destech/fire.html

If a fence is removed and replaced, said installation shall conform with all local requirements.

3. CONDITION OF PREMISES - All areas and all parts of the premises upon which any dwelling or dwelling units are located and all areas adjacent thereto and a part of the premises shall be in a clean and sanitary condition. This shall include, but not be limited to, removal of abandoned and junked automobiles, automobile bodies, chassis, parts, and trailers; inoperable machines and appliances; lumber piles and building materials not used in actual construction; tin cans, broken glass, broken furniture, boxes, crates, and other debris, rubbish, junk and garbage.

4. WATER SUPPLY - CONNECT TO WATER MAIN - Every owner of a dwelling situated on property that abuts any street or alley in which a water main is laid, shall be connected to such main to provide water service.

5. ABANDONED WELLS AND CISTERNS - Every owner of a dwelling that contains an abandoned well or cistern on the premises shall permanently seal or fill it in a proper manner.

6. INFESTATION AND EXTERMINATION – Structures shall be free from rodent and insect infestation.

D. LOW INCOME TARGETING

Identify the estimated amount of funds appropriated or otherwise made available under the NSP to be used to purchase and redevelop abandoned or foreclosed upon homes or residential properties for housing individuals or families whose incomes do not exceed 50 percent of area median income: $_$5,000,000________.

Note: At least 25% of funds must be used for housing individuals and families whose incomes do not exceed 50 percent of area median income.

Response:

DED proposes to award $4,000,000 to the City of Omaha and $1,000,000 to the City of Lincoln for projects that include housing activities that will benefit households with incomes at or below 50% of the Area Median Income (AMI).

E. ACQUISITIONS & RELOCATION

Indicate whether grantee intends to demolish or convert any low- and moderate-income dwelling units (i.e., ≤ 80% of area median income).

If so, include:

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The number of low- and moderate-income dwelling units—i.e., ≤ 80% of area median income—reasonably expected to be demolished or converted as a direct result of NSP-assisted activities.

The number of NSP affordable housing units made available to low- , moderate-, and middle-income households—i.e., ≤ 120% of area median income—reasonably expected to be produced by activity and income level as provided for in DRGR, by each NSP activity providing such housing (including a proposed time schedule for commencement and completion).

The number of dwelling units reasonably expected to be made available for households whose income does not exceed 50 percent of area median income.

Response:

The State of Nebraska intends to demolish 21 low- and moderate-income dwelling units as a direct result of NSP-assisted activities.

The State of Nebraska intends to make available at least 70 dwelling units for low- moderate – and middle income households.

20 units made available through acquisition, rehabilitation and resale of foreclosed, abandoned and vacant properties for households with incomes at or below 50% AMI.

10 units made available through new construction of Habitat for Humanity homes for households with incomes at or below 50% AMI.

20 units made available through acquisition, rehabilitation and resale of foreclosed, abandoned and vacant properties for households with incomes between 51% and 80% AMI.

5 units made available through acquisition, rehabilitation and resale of foreclosed, abandoned and vacant properties for households with incomes between 81% and 120% AMI.

15 units made available through new construction for households with incomes between 81% and 120% AMI.

The State of Nebraska intends to make at least 30 dwelling units available for households whose incomes does not exceed 50 percent of area median income.

F. PUBLIC COMMENT

Provide a summary of public comments received to the proposed NSP Substantial Amendment.

Note: proposed NSP Substantial Amendment must be published via the usual methods and posted on the jurisdiction’s website for no less than 15 calendar days for public comment.

Response:

Public comments were solicited via e-mail or letter to:

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Lara HuskeyDirector, Community and Rural Development DivisionPO Box 94666Lincoln, NE 68509

[email protected]

Public comments were accepted from November 10, 2008 until close of business on November 25, 2008.

The proposed CDBG NSP Substantial Amendment was posted on the web at http://www.neded.org/content/view/818/156/ on November 10, 2008. In addition, an e-mail notification of the availability of the Amendment and related public comment procedures was sent via electronic mail the Nebraska Development List serve, participants in the DED CDBG NSP briefing, and persons who prepared DED CDBG NSP pre-applications.

63 public comments were received. Please find the text of each comment below.

Comment 1

I was disappointed to see that there were no projects in the list for award for the Panhandle of Nebraska. We proposed doing virtually the same type of project as several other applicants. We would have thought some of the projects would be reduced to allow funding for all of the regions to do similar, much-needed projects. Our community is in a very difficult position with Aurora Loan Services being the second largest employer. Because they service mortgage loans and their parent company has declared bankruptcy, we don't know what is going to happen with them in the future and don't know what is going to happen with their 520 employees. We hope you will at least consider a project for someone in the Panhandle prior to submitting this for the final application. I don't care if it is the project for Panhandle Area Development District, Gering, Scottsbluff, or Monument Family Connections, but please include a Panhandle project. If you took a small percentage from each of the projects that are on the award list, you'd have enough to do a project in the Panhandle region.

Comment 2

Due to the nature of the high foreclosure rates, lower median incomes, and the fact that these counties encompass Indian Reservations, 20 percent of the NSP funds ($3.6 million) will also be designated for Indian Reservations. Comment 3

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http://www.neded.org/content/view/818/156/

mailto:[email protected]

Please consider including Habitat for Humanity of Omaha as part of the Neighborhood Stabilization Plan for Nebraska – specifically because of the need in the area of North Omaha and the capacity of Habitat as outlined below.

Omaha has the highest foreclosure rate in our state – nearly double that of any other city in Nebraska. We expect many more additional foreclosures as investors are beginning to go under. North Omaha is an at-risk community. Every home that is boarded up creates more instability in this community in need.

North Omaha is the area of our state with the greatest need for renovation and demolition of old housing stock. There are nearly 800 condemned homes in zip codes 68110 and 68111, over 250 on the demolition list, and the city is only demolishing 30 a year. Fifteen percent of all lots are vacant, and 15% of all homes are vacant.

Habitat for Humanity is uniquely positioned to help in this housing crisis. We renovate old homes, build news ones and have the capacity to demolish existing structures very affordably through partially donated services. 100% of our families are below 50% of median income.

Habitat does not need to wait for a buyer that is interested in the property AND able to qualify for a loan. Habitat does our own underwriting and mortgage lending and has a continuous list of 40 or more families that are waiting for a home.

Habitat is fully supported by the community we serve. We have over 6000 volunteers a year – eager to help with new or renovated construction. Our donor base consists of over 5000 donors.

Habitat is successful. In Douglas & Washington Counties, we have over 240 mortgages and have only foreclosed on 6 loans in 24 years. In 2008, Habitat will build or renovate 30 homes.

Please consider the needs in North & South Omaha and Habitat’s unique ability to quickly renovate and sell homes to families in need. Habitat would be a good partner for you in meeting the goals of NSP.

Comment 4

I think it is vital that Habitat for Humanity of Omaha (serving Douglas and Washington County) be included to receive funds for the $19.5 million dollars for the following reasons.

1) Omaha has the highest foreclosure rate in the state, 2) North Omaha is a blighted community that is most at-risk with foreclosure rates, 3) Habitat has the capacity to help meet the goals of the stabilization plan, and

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4) Habitat rehabs houses and helps prevent neighborhoods from deteriorating.5. These neighborhoods in Northeast and now starting in Southeast Omaha are being TRANSFORMED, block by block. I invite you to come visit our organization and take a tour of our good works in these neighborhoods. The way these streets now look will take your breath away with their transformations from blighted to good, safe and stable neighborhoods.6. Our work benefits helps to increase tax revenues for our community by rehabilitating and building new homes-increasing property values in areas where it has sunk to next to nothing.7. Through our partnership, we will help break the cycle of poverty by offering families a “hand up”, not a hand out. Our homeowners BUY their homes through no-interest loans. Between the time these families are approved for a loan and the completion of their home they must attend classes on home ownership, fiscal responsibility and devote 350 hours of “Sweat Equity,” volunteering their time to help build their own home as well as others.8. In conclusion EVERYONE WINS when investing their funds in our organization in the following ways:

Help break the cycle of poverty Create safer and more stable neighborhoods in blighted areas Increase tax revenues for our community Instead of “giving a man a fish,” we “teach them how to fish,” figuratively

speaking. Offer hope to hard-working low-income families, by creating better futures

through homeownership

Comment 5

As a donor of Habitat for Humanity of Omaha , I really think that they need to be included to receive funds for the $19.5 million dollar grant from HUD for the following reasons.

1) Omaha has the highest foreclosure rate in the state, 2) North Omaha is a blighted community that is most at-risk with foreclosure

rates, plummeted property values. These factors only increase the chance of more neighborhood destabilization by encouraging crime and gang activity.

3) Habitat has the capacity to help meet the goals of the stabilization plan, and 4) Habitat rehabs houses and helps prevent neighborhoods from deteriorating. 5. These neighborhoods in Northeast and now starting in Southeast Omaha are

being TRANSFORMED, block by block.As an example, all you need to do is drive down streets like 33rd and Manderson in Omaha to see for yourself-among others. The way these streets now look will take your breath away with their transformations from blighted to good, safe and stable neighborhoods.

6. Our work benefits helps to increase tax revenues for our community by rehabilitating and building new homes-increasing property values in areas where it has sunk to next to nothing.

7. Through our partnership, we will help break the cycle of poverty by offering families a “hand up”, not a hand out. Our homeowners BUY their homes through

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no-interest loans. Between the time these families are approved for a loan and the completion of their home they must attend classes on home ownership, fiscal responsibility and devote 350 hours of “Sweat Equity,” volunteering their time to help build their own home as well as others.

8. In conclusion EVERYONE WINS when investing their funds in our organization in the following ways:

Help break the cycle of poverty Create safer and more stable neighborhoods in bad ones Increase tax revenues for our community Instead of “giving a man a fish,” we “teach them how to fish,” figuratively

speaking. Offer hope to hard-working low-income families, by creating better futures

through homeownership Thank you for your consideration. I know the director, Amanda Jedlicka, would be glad to answer any questions and even give you a tour of our neighborhoods we have transformed.

Comment 6

Please consider Habitat for Humanity for funding from this grant. They positively affect the lives of the most in need.

Comment 7

Please consider including Habitat for Humanity of Omaha as part of the Neighborhood Stabilization Plan for Nebraska. The reasons Habitat Omaha should be included are many. for instance, Omaha has the highest foreclosure rate in the state. North Omaha in particular is a blighted community that is most at-risk with foreclosure rates. Habitat for Humanity has the capacity to help meet the goals of the stabilization plan because Habitat rehabs houses and helps prevent neighborhoods from deteriorating. I served a year of AmeriCorps National Service at Habitat Omaha, and their mission and what they do is very close to my heart. The joy that Habitat brings to so many families in Omaha could certainly be increased exponentially with their inclusion in the Neighborhood Stabilization Plan. Thank you for your time, and again, please do not exclude Habitat Omaha and all of the good things that they do.

Comment 8

In support of Habitat for Humanity receiving funding, I can attest first hand the changes that Habitat makes in a new home owner's life. I've been to a ceremony called a dedication where Habitat for Humanity hands the keys to the new homeowner. The sacredness of that moment is priceless. The home owner's Pastor or Spiritual Leader will come out and say a prayer for the new family and I've felt the love in that house when that's happening among, once strangers, now a team who finished building a home! The home is more than just wood framing and carpet. It's a stake in the community that needs

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that kind of support and commitment from it's constituents. Please include Habitat for Humanity for this year's, or should I say, next year's funding. Thank you,

Comment 9

Hello, my name is Steven Beck and I am a Community Development Advisory Committee member in Grand Island. I am writing to you as I am concerned that the State is proposing to allow everyone who didn’t submit a pre-app to apply in the open round against everyone who submitted a pre-app. By doing this you are basically demonstrating that is doesn’t matter if you submitted all of the paper work in the correct manner and by the correct time as you still have the same chance as those who chose to do nothing.

They are using other cities information as their plan which they will submit to HUD. At this time there is not an allowance, or priority given to those who qualified in the pre-app. I am asking you to set aside the amount currently allocated for those who submitted pre-apps and then split the rest of the grant funds among those who apply in the open round.

Comment 10

I would like Habitat Omaha to be included in the Neighborhood Stabilization Plan. I am on the Board of Directors for Habitat for Humanity.

1) Omaha has the highest foreclosure rate in the state, 2) North Omaha is a blighted community that is most at-risk with foreclosure rates, 3) Habitat has the capacity to help meet the goals of the stabilization plan, and 4) Habitat rehabs houses and helps prevent neighborhoods from deteriorating.

Please support Habitat. Comment 11

As a board member of Habitat Omaha, I have seen first hand the benefits of this valuable organization. Please consider Habitat Omaha to be included in the Neighborhood Stabilization Plan. There is a great need for affordable house in area of North Omaha. Omaha has the highest foreclosure rate in the state of Nebraska - nearly double that of any other city in our state. We fully expect many more foreclosures as investors are beginning to go under. North Omaha is an at-risk community. Every home that is boarded up creates more instability in this community.

The capacity of Habitat as outlined below:

Habitat for Humanity is uniquely positioned to help in this housing crisis. They renovate old homes, build new ones and have the capacity to demolish existing structures very affordably through partially

45

donated services. 100% of their families are below 50% of median income.

Habitat is fully supported by the Omaha community. They have over 6,000 volunteers a year - eager to help with new or renovated construction. The donor base consists of over 5,000 individuals/organizations.

Habitat does not need to wait for a buyer that is interested in the property AND able to qualify for a loan. Habitat does their underwriting and mortgage lending and has a continuous list of 40 or more families that are waiting for a home.

Habitat is successful. In Douglas & Washington Counties, they have over 240 mortgages and have only foreclosed on 6 loans in 24 years. In 2008, Habitat will have built or renovated 30 homes.

Please take these points into consideration. Habitat would be an excellent partner for you in meeting the goals of NSP.

Comment 12

Regarding comments to the Annual Action Plan, especially the NSP funding our county has concerns that while other parts of the United States may already be feeling the effects of foreclosures, we in this area have only begun to feel the impact, and with several closures announced in Nebraska and one significant in limbo for Dawson County concerning a large number of households, we may not be aware of how deeply we will be impacted. The NSP funding should allow for some flexibility to address future events that will have significant impact on the number of foreclosures that could occur in the future due to these plant closures. Thank You! Comment 13I am a member of the Grand Island Community Development Advisory Committee and would like to provide a comment in regard to the proposed 2008 Housing and Community Development Substantial Plan Amendment for the Neighborhood Stabilization Program. I am a real estate broker in Grand Island and support the City’s plan to demolish substandard housing to rebuild safe, affordable housing as a replacement. These funds are crucial to moving demolition of substandard housing forward in this community.

In the first part of November, the Community Development Division submitted a pre-application to the state for the Neighborhood Stabilization Program. We are pleased to have been identified in one of the six levels as an appropriate, eligible program that qualifies for grant funding based on your scoring criteria.

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Joni Kuzma, Community Development Administrator, provided a copy of the State’s proposed plan to the Advisory Committee. As a member of that Committee, I would ask that the pre-applicants noted in the plan receive an allocation that is set aside for them pending their completion of the larger application that is due in March. The pre-applicants showed initiative, organization, and foresight in their ability to complete that grant in a small window of time. It is good that other communities will have the chance to apply for these funds even though they did not submit a pre-application, but I feel they should have to compete against one another.

The Department of Economic Development has awarded thousands of dollars to Grand Island over the years for housing projects. Each of those grants enabled our community to make improvements in housing. This is a most unique program that will allow the City to address substandard and vacant housing in a concentrated way that has not been done before.

I appreciate having the opportunity to share my thoughts on this plan.

Comment 14 As a current Habitat for Humanity volunteer and advocate, I ask for you to please consider including Habitat in your Neighborhood Stabilization Plan. You and your plan would benefit greatly for several reasons. First off, Habitat has been both influential and supportive of the North and South Omaha communities. If you include Habitat you would be including a well established non-profit organization capable of achieving your plan. Second, Habitat has a long history of bringing positive to both the community and the city. The community benefits from new or refurbished houses in dilapidated neighborhoods and the city benefits from the increase in tax revenue. Please take a moment to consider all the benefits Habitat has to offer. Thank you

Comment 15

My name is Mike Klauer and I Chair the Finance Committee for Habitat for Humanity of Omaha. I am emailing to request that Habitat be considered in the funds allocated to the Neighborhood Stabilization Plan. For the reasons stated in the attached letter to you from the Executive Committee, I believe the funds attained would be used appropriately to assist in curbing the housing downturn by providing homes to qualified and committed owners, consistent with our mission and history serving the Omaha area.

Comment 16

I would like Habitat for Humanity Omaha to be included in the Neighborhood Stabilization Plan. North and South Omaha, areas that Habitat Omaha serves have a high crime rate. Additional empty homes will increase the crime in those neighborhoods. Homeownership has been proven to cut down crime and improve neighborhoods.

Comment 17

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Habitat Omaha should be included in the Neighborhood Stabilization Plan. Comment 18

Please consider including Habitat for Humanity of OMaha in your funds for the Neighborhood Stabilization Plan. THis worthy and well run organization is basically already in this business!. They currently serve this community and certainly can expand those efforts with additional support. They renovate homes and sell them to those in need now- please let them serve out their mission further by designating additional funds to help the people of Nebraska ( with the work they already know how to do!).

Comment 19

Please include Habitat Omaha in the Neighborhood Stabilization Plan. Omaha has the highest foreclosure rate in the state; moreover, North Omaha is a blighted community that is most at-risk with foreclosure rates. Habitat has demonstrated its ability and the capacity to help meet the goals of the stabilization plan. The homes rehabilitated by Habitat prevent neighborhoods from deteriorating.

Comment 20

I am familiar with the work of Habitat for Humanity of Omaha and understand that they are not currently a part of the Neighborhood Stabilization Plan for Nebraska. I would like to ask that the Nebraska Department of Economic Development include Habitat for Humanity of Omaha in that Neighborhood Stabilization Plan.

I believe that not only is there a great need in Omaha, but the Habitat for Humanity of Omaha is well equipped to renovate old homes affordably and to sell these homes to low income families that can make use of them.

Comment 21

I work for Habitat for Humanity of Omaha, Inc. so I may be a little bias. However, our stabilization plan is something that addresses and embraces the needs of the community during this critical housing crisis. Please consider including our organization as we would appreciate the opportunity to serve the community through this special partnership.

Comment 22

The city of South Sioux City concurs with the plan for Neighborhood Stabilization Community Development Block Grant funds. We recognize and appreciate the tremendous effort made by the State of Nebraska to meet the needs of citizens of the State with the parameters of the funds.

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Comment 23

May we first compliment the Nebraska Department of Economic Development for the great job of putting together the Neighborhood Stabilization Program Application in such a short period of time. We are aware of the large volumes of information, federal regulations, and project requests you had to process and greatly appreciate the professional presentation of your Federal grant submission.

PADD also greatly appreciates all the effort the DED has made to address the housing and community development issues facing all of rural Nebraska.

Even though we are aware that there will be a second opportunity to submit project requests for the NSP, It is our understanding that this is our only opportunity to comment on the Nebraska NSP program.

We thus would like to make a comment and a request for the DED to consider regarding the impact the National housing crisis has had on the Panhandle region. As you are aware, Aurora Loan Services is a subsidiary of Lehman Brothers that specializes in originating and servicing home mortgages and employees over 500 persons in our region. With the bankruptcy of Lehman Brothers, it puts their local loan servicing center in a very precarious situation.

Given this unique impact the housing crisis is directly creating in the Panhandle region, we hope the DED will consider granting at least one NSP project in the Nebraska Panhandle.

Comment 24 I am writing to ask you to please include Habitat for Humanity of Omaha in the Neighborhood Stabilization Plan. My husband and I moved to Omaha three years ago, and since then I have gotten involved with Habitat for Humanity of Omaha Friends. I see such a need for help in this area. My hope would be that if more funds are put into this area, we might prevent neighborhoods in north Omaha from deteriorating any further. Hopefully, in turn we will see a turn for the better in the crime rate, as we give hope for a brighter future to the less forturnate. Also, when we give folks "ownership" in the process of building their homes, as Habitat does, we evoke more of an attitude of pride in their community. I feel it is such a worthy cause, and hope you will also, in your decision making. Comment 25

I understand that you are accepting public comments of the NSP Substantial Amendment pre-applications. Joni Kuzma, our Grand Island Community Development Administrator, has indicated to me that the pre-application of level 5 designation of need indicates an order of approval. However, I’ve noticed on page 13 that this pre-application was not a requirement and that some communities did not submit one.

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Due to the extra effort that Joni and her staff went through, I would like you to consider that the, allocations of need, that you listed on pages 2-4 be given priority when your decision is made in March, 09.

Comment 26

I am on the Advisory Board of the Habitat for Humanity-Omaha organization and would like to petition to have our Habitat group be part of the Neighborhood Stabilization Plan grant from HUD. I am certain our Habitat organization has the capacity to meet the goals of the stabilization plan and the staff of Habitat is exceptional in their diligence to the cause of affordable housing for the Omaha community. The office is located in north Omaha which is a blighted community and subject to high risk of foreclosures. Over the years our Habitat office has worked very hard to keep neighborhoods from deteriorating by filling empty lots with Habitat homes and conscientious home owners. It would seem to me to be a perfect fit for the HUD dollars and an opportunity to have Nebraska be a point of light in having great impact for the Neighborhood Stabilization Plan.

I sincerely hope the Department will give consideration to partnering with Habitat for Humanity-Omaha.

Comment 27

As a personal supporter of Habitat for Humanity of Omaha and an employee of the company that partners with the homebuilder, I submit this public comment in support of including Habitat of Omaha in the state’s Neighborhood Stabilization Plan.I formerly served as an AmeriCorps member and construction site supervisor with Habitat of Omaha. I saw how the organization united the resources of local government, philanthropies, and volunteers to build quality, affordable homes. But we built more than homes – we built a conduit to savings and wealth for low-income families. These families who earn between 30 and 50% of median income for the area, would otherwise have no such path. Through 30-year, no-interest mortgages, Habitat of Omaha offers American Dream to hardworking, underpaid families.Furthermore, the organization transformed by life by engaging me in service to my community. During my term of service , I learned marketable skills for my own career and learned the value of helping the less fortunate. Each year, Habitat Omaha helps hundreds of individual volunteers and AmeriCorps members make that same personal transformation.Currently, Goodwill’s YouthBuild program partners with Habitat Omaha to offer a construction training program for youth ages 16 to 24 who have dropped out of high school. Good will provides academic instruction and vocational training, and Habitat provides a real-world training environment. This a comprehensive approach to neighborhood revitalization – building and renovating homes, preparing young people for college and careers, and developing tomorrow’s leaders. Habitat Omaha is critical to this revitalization.

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The number of foreclosed homes in Omaha is frightening. According to NSP data, more than 105,000 people – one in seven Omaha residents – live in an area with an estimated foreclosure abandonment risk score of 10 on HUD’s 10-point scale. And recently, the NIFA first-time homebuyers program ceased making new loans as a result of the credit crisis. Clearly, current economic conditions will only increase the need for affordable housing, and Habitat Omaha’s no-interest model is uniquely positioned to serve the families most in need.Thank you for considering this public comment in support of including Habitat Omaha in the Neighborhood Stabilization Plan.

Comment 28

I would like Habitat for Humanity of Omaha included in the Neighborhood Stabilization plan. Habit has build on over 200 vacant lots in Northeast Omaha and has done a gread deal to change neighborhoods from weeds to houses, where a family can have a home of their own. Omaha has over 400 houses that are boarded up and not occupied. Habitat, with financial help, can rehab a number of these houses and provide a home for another family Comment 29

I am writing today to request your consideration of including Habitat for Humanity of Omaha as part of the Neighborhood Stabilization Plan for Nebraska. As a supporter and former employee of Habitat Omaha I know first hand the success the agency has had in rebuilding the North and South Omaha communities.

Habitat for Humanity makes homeownership a reality to families that would otherwise never have the possibility or the hope for a home of their own. They stimulate progress and re-development in neighborhoods otherwise left to deterioration. They inspire and reinvigorate neighborhoods to step up and reinvest in their own homes and streets. They provide thousands of volunteers with a meaningful and tangible way to help other families in our city.

Please consider the needs in North & South Omaha and Habitat’s unique ability to quickly renovate and sell homes to families in need. They would make and excellent partner in obtaining the goals of the NSP.

Comment 30

I represent a rural county in central Nebraska with 5 communities. I am a certified CDBG administrator with over 10 years experience in this field. I submitted a grant pre-application to the NE Dept of Economic Development within time frame requested.

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My application request was NOT included as a high priority project in the NE plan submitted to HUD. We are assuming that we did not meet the major criteria outlined in the Federal NSP priorities?

Although the communities in Sherman County have seen a 75 percent increase in foreclosures over the last 2 years, we feel that we are being “penalized” because our local banks have been more diligent than our urban counterparts and have NOT provided “sub-prime” loans to unqualified applicants.

Our communities’ average over 60% area LMI and we are experiencing serious population decline due to the lack of quality affordable housing available. Our communities’ have very low unemployment rates leading to a very competitive labor market. This makes the availability of quality affordable housing that much more important to attract and retain our population.

We are confident about our housing needs because Loup City undergone two professionally prepared blight/redevelopment studies, one comprehensive housing plan/study, one comprehensive plan, and one comprehensive economy development strategy within the last 10 years. Based on our history of preparation and planning, we feel that we are more than prepared to administer an NSP project.

We simply propose the acquisition and demolition of 21 “blighted or foreclosed” structures/properties.

Acquisition and demolition of these properties will create opportunities: For developers and individual homeowners to build what our market demands,

thereby Increasing the local property tax base and subsequently providing better services

and living standards for everyone

Housing is our primary economic development strategy as we have very few large employers but we are in close proximity to two larger cities and one of Nebraska’s largest Lakes/recreation areas.

It our recommendation that the activity of acquisition and demolition of “blighted or foreclosed” structures/properties be placed as a higher priority in the best interest of our nation and impoverished rural America in general.

Comment 31

I want to thank you in advance for considering Habitat for Humanity of Omaha as a partner in the Neighborhood Stabilization Plan for Nebraska. Habitat has unique capabilities that can help mitigate the severity of the housing crisis immediately. Our capabilities include:

Flexibility - We both build and renovate homes. In addition we are able to demolish existing structures at low cost.

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Responsiveness - We are not reliant on banks to approve potential home buyers. Through our own underwriting process we can approve buyers and we maintain a list of families waiting to buy.

Human Resources - We have over 6000 working volunteers. History and Reputation - We have over 240 outstanding mortgages and will build

or renovate 30 homes in 2008.

As you know the North Omaha area is faced with significant housing challenges. Between condemned homes and foreclosures it is the most at risk part of our community and perhaps the entire State. We are active in this community today and we can accomplish much more by partnering with the State through the Neighborhood Stabilization Plan.

Comment 32

My name is Norma Fletcher and I would like to support the efforts of Omaha Habitat for Humanity to be included in the Neighborhood Stabilization Plan. As a long time volunteer builder with Omaha Habitat I can testify to their efforts to provide well built, functional homes for the low income members of Omaha's community. Habitat is the perfect organization to take foreclosed homes, make sure they are remodeled for future occupants and get these homes to the working poor of Omaha. Omaha Habitat has a stong volunteer base and is well equiped to handle more homes.Please consider Habitat for Humanity of Omaha to carry out the goals of the Neighborhood Stabilization Plan.

Comment 33

I am writing this in support of the application from Buffalo County for the NSP funds. As a local banker and a member for the Buffalo County housing work group I feel the NSP funds would be a wonderful opportunity for Buffalo County to grow and revitalize their communities. I attend the monthly housing senate meetings and I see how the communities have really come together and are working diligently and putting their hearts into on how they can revitalize their communities and make them a welcoming place to live and raise a family. I am a native to Buffalo County and have seen what the communities can provide and I really feel that the funds would be a great opportunity to give the towns a way of getting rid of the structures that are not livable and provide new, affordable, safe homes to be purchased and help the communities grow.Thank you for your time in reading this and please consider Buffalo County’s application to NDED.

Comment 34

I am the Buffalo County Housing Senate Representative for the Village/City of Kearney. I feel this Housing Senate has assisted all of the Buffalo County communities to recognize the needs of the County as a whole and that all communities are working

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toward a common goal. The Housing Senate has been working toward improving the available housing in Buffalo County. We have looked at improving our neighborhoods by removal of deteriorating buildings in each of our communities. We are appreciative of the opportunity to submit a pre-application to NDED for the NSP program. We had a planning meeting with the Housing Senate members to discuss the opportunity and all of the communities in Buffalo County gathered data for submittal into the grant application. The Housing Senate members talked to local bankers, realtors, the County Treasurer, and city officials to gather the most accurate information they could for the pre-application. We would appreciate it if NDED considered the Buffalo County application to help us realize our goals for the county.

Comment 35

Buffalo County Economic Development Council is diligently working to offset a shortage of a skilled, educated workforce by recruiting area alumni back to Buffalo County. While we hope that these efforts are successful in attracting our alumni back to their roots, we are also concerned with the limited availability of housing in many of our county communities. Should a graduate choose to return to and live in their hometown, they may face challenges in locating adequate housing for their families.

The opportunity that the NSP program offers to these communities to improve their available housing inventories would be very advantageous. For this reason, please consider the Buffalo County application for the NSP program to put our best foot forward to attract new residents and improve on the neighborhoods we already have. Buffalo County is very progressive and we would put the NSP funds to good use. We are thorough and have the capacity to attain the outcomes we develop for the program. We would appreciate your consideration of our application.

Comment 36

I serve on the Buffalo County Community Partners Board and their work group Positive Pressure. In addition, I am also the President of the Board of Directors for RAFT (Residential Assistance to Families in Transition). Our goal is to assist Buffalo County in accomplishing the goals of the 2008 Buffalo County Housing Study. In particular, the Buffalo County Attorney's Juvenile Services Office recognizes the needs of the County as a whole and to insure that all communities are on the same vision, working toward a common goal. As a group we have been working for months toward the common goal of improving housing in Buffalo County. As a part of this goal, demolition of dilapidated structures was deemed a priority in each of our communities. Because of this priority we were very excited at the opportunity to submit a pre-application to NDED for the NSP program. We had a planning meeting with the Housing Senate members to discuss the opportunity and all of the communities gathered data for submittal into the grant application. The Housing Senate members talked to local bankers, realtors, the County Treasurer, and municipal elected officials to glean the most accurate information for the pre-application. We would appreciate it if NDED considered the Buffalo County application in all aspects to help us attain our goal.

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Comment 37 I serve on the Buffalo County Community Partners Board. One of our goals is to assist Buffalo County in accomplishing the goals of the 2008 Buffalo County Housing Study. This organization recognizes the needs of the County as a whole and is working to ensure that all communities are working toward a common goal. As a group we have been collaborating for months toward the common goal of improving the housing in Buffalo County. As a part of this goal, demolition of dilapidated structures was deemed a priority in each of our communities. Because of this priority we were very excited at the opportunity to submit a pre-application to NDED for the NSP program. We had a planning meeting with the Housing Senate members to discuss the opportunity and all of the communities gathered data for submittal into the grant application. The Housing Senate members talked to local bankers, realtors, the County Treasurer, and municipal elected officials to glean the most accurate information for the pre-application. We believe this opportunity is crucial for continued growth in our communities and would appreciate it if NDED considered the Buffalo County application in all aspects to help us attain our goal. Comment 38

I’m writing to urge that Habitat of Humanity Omaha to be included in the Neighborhood Stabilization Plan.

Comment 39

The City of Scottsbluff is concerned with the direction of funding under the Neighborhood Stabilization Program (NSP). While we understand certain criteria help define the targets for funding it is very difficult to understand how some jurisdictions in the State were fully funded for projects identical to those the panhandle submitted. If one looks objectively at the need to stabilize neighborhoods our need is at the very least equal if not greater than others who appear to be in line for funding. It appears application of the criteria has been somewhat oversimplified. The impact of these difficult national economic conditions are in fact shared by the panhandle. One only needs to look at how recent economic stress has added to stress' of the panhandle's already low income levels. We have struggled for decades with higher than average levels of low income households. Thus we do not accept the apparent view that somehow the panhandle is an isolated area free from national economic problems sited in criteria for the NSP. What is true is that a poor national economy sinks the disproportionately high number of low income households to even lower standards of living, much lower than the State of Nebraska as a whole thus destabilizing our neighborhoods further. We applaud past funding for important projects that have served to stabilize our neighborhoods and will continue to strongly support the DED and others at the State level

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who recognize the panhandle's unique economic conditions. We are concerned that in this case a careful second look at sharing the wealth is in order. We would love to see a Scottsbluff project funded but urge additional consideration for the panhandle as a whole. We look at the health of this region of the State as our first priority and consider our contributions to the welfare of the entire State as our primary goal. Comment 40

I am the director of the Buffalo County Community Partners. I hope that you are receiving a few emails today from our many partners in Buffalo County expressing their interest in the investment of housing dollars in our communities. Our organization started in 1995 with the express intent to define community goals. We have 10 goals to achieve by 2010. One of those goals has always been to increase affordable housing in Buffalo County. Our organization has organized multiple work groups in the community since 1994. We coordinate between homeless programs, near homeless, mental health, substance abuse, business engagement, and youth engagement and many others. One of our indicators requires us to decrease homelessness and many of the members of the Homeless Coalition maybe connecting with you to share their support of this funding. One of our goals addresses mental health housing, so we are working with many organizations to determine need for this type of funding. Our workgroup has conducted the past 2 housing studies and most recently conducted the first Buffalo County wide housing study.The study outlines that we should develop a county wide Housing Senate, which has been completed and I hope you are hearing from some of the Senate people. And we also are working toward attainment of another housing study recommendation to remove vacant and dilapidated structures in Buffalo County. I made many of the calls to each Buffalo County community. Each community is very excited for this type of funding. They see a great need in each of the community which is also outlined as our greatest need in the Buffalo County housing study. We also received great response from bankers who are sitting on repossessed homes in Buffalo County. Our hardest hit area is in the south east side of the county in Gibbon and Shelton. We encourage you to consider investing funds in Buffalo County. We have a tremendous need in this area for rehabbing homes, removing vacant homes and providing affordable housing for our communities. These needs match very nicely with your grant funding. Please let me know if we can provide any other information. We look forward to hearing from you and your office.

Comment 41

I am writing in support of the Neighborhood Stabilization Program (NSP) pre-application submitted for Buffalo County, excluding the City of Kearney and including Sumner in Dawson County. The Buffalo County Housing Work Group and the Housing Senate have worked diligently to obtain specific data for this pre-application. Personnel throughout the County are prepared to begin the project, including individuals with the

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capacity to administer the program in a timely manner. I urge NDED to give full consideration to this pre-application.

The Housing Senate was formed as an outcome of the 2008 Buffalo County Housing Study conducted by Western Economic Services, LLC. Representatives of the nine communities in the county, plus one rural representative, have organized to address the needs of the County as a whole and insure that all communities are working toward the common goal of addressing affordable housing in Buffalo County. During the needs identification process, demolition of dilapidated structures was deemed a priority by each of the community representatives. Therefore, the opportunity to submit a pre-application to NDED for the NSP program was identified as an exciting avenue to accomplishing this goal. At a recent planning meeting, the Housing Senate members discussed the prospect and each of the community representatives gathered data for inclusion in the grant pre-application. The Housing Senate members discussed the potential project with lenders, Realtors, the County Treasurer, and municipal elected officials to obtain the most accurate information for the pre-application.

I would appreciate NDED’s consideration of the Buffalo County NSP application as an avenue to address the revitalization of communities in Buffalo County. Thank you for the opportunity to submit input on the funding of future NSP projects.

Comment 42

My name is Tom Hunter and I am the Victim/Witness Assistance Director for Scotts Bluff County. My office is located in the county attorney’s office. I have held this position for the past 18 years. During this time I have worked with many needy families and battered women that have been displaced from their homes. Our local domestic violence staff is doing an incredible job of assisting domestic violence victims and often with children. All too often crime victims are forced into personal financial problems that are not of their creation. Some victims loose their employment through extended medical recovery. Many people are victimized by the crime and then they are re-victimized with an avalanche of medical bills that get sent to collection agencies because of their failure to pay. These financial situations often lead to utility disconnects, inability to provide basic necessities for their children and homelessness.

For the past several years I have served on the board of directors for Monument Family Connection. MFC goal is to provide emergency housing for homeless people. At the present time we located property in a blighted area of Scottsbluff. All of the buildings on the property are abandoned and need to be demolished. None of the buildings (and old motel with multiple units and a liquor lounge) is suitable to inhabit as they are asbestos and rodent contaminated. At the present time the board is negotiating with the property owner to purchase the property. We have polled the residents and businesses in the area and have their support. We also have the support and encouragement to build emergency homeless shelter from our area churches. .Twin City Development in Scottsbluff desires to collaborate with us on the project.

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Monument Family Connections needs financial assistance for development and maintenance of this community betterment project.

Thank you for this opportunity of voicing my comments and opinions regarding our homeless emergency housing project.

Comment 43

The Buffalo County Community Partners was the applicant for the Nebraska Stabilization Program to 1) remove vacant and dilapidated homes and 2) assist in rehabilating repossessed homes in Buffalo County. The letter of intent was submitted to the Nebraska Department of Economic Development (NDED). We recently found out that Buffalo County was not inserted into the plan the NDED sent to HUD. I serve on the Buffalo County Community Partners Board. Our goal is to assist Buffalo County in accomplishing the goals of the 2008 Buffalo County Housing Study. In particular, Kearney Housing Agency recognizes the needs of the County as a whole and ensures that all communities are on the same vision, working toward a common goal. As a group we have been working for months toward the common goal of improving the housing stock in Buffalo County. As a part of this goal, demolition of dilapidated structures was deemed a priority in each of our communities. Because of this priority we were very excited at the opportunity to submit a pre-application to NDED for the NSP program. We had a planning meeting with the Housing Senate members to discuss the opportunity and all of the communities gathered data for submittal into the grant application. The Housing Senate members talked to local bankers, realtors, the County Treasurer, and municipal elected officials to glean the most accurate information for the pre-application. We would appreciate it if NDED considered the Buffalo County application in all aspects to help us attain our goal. Kearney Housing Agency has a Management Contract with Gibbon and Shelton and as the Director for Public Housing these 3 communities in Buffalo County, I can assure there is a tremendous need to address the worn out housing no longer meeting the needs of the community. This housing provides substandard living conditions, creating social issues, is an eyesore, invites vandalism and an increase need for law enforcement. Communities need to be able to move forward to address the issues of decent, safe and affordable housing and the NSP program is a step in the right direction. Please reconsider and include Buffalo County for the NSP program.

Comment 44 It is my understanding Tribes/Native Americans are considered eligible participants in the Neighborhood Stabilization Program (NSP). I made some local inquiries about any meeting notices that would have been received regarding this program. Unfortunately, none of the mail logs hold any reference to any NSP public meeting notice.

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Regarding the State's proposed NSP, the only reference to Native Americans I found in the amendment to the 2008 Housing and Community Development Annual Action Plan was regarding leases on trust properties. The wording in the paragraph that relates to Native Americans is such that it precludes many of the group. What is asked is that all Native American Homebuyers/Owners living on trust properties need to amend there homesite leases to fifty years. According to a USDI/BIA Realty Officer, they would require a Tribal Resolution to change a homesite lease to 50 years to comply with 25 CFR. There is just not enough time to accomplish this task for every potential applicant. We find this unreasonable. The majority of Native Americans reside on trust properties within Reservations. These areas have the highest rates of overcrowding, unemployment and are economically distressed. These areas also have the lowest median incomes in the State and are therefore the most needy population. A simple solution to the problem would be similar to the neighboring States which have set-aside up to 25 percent of the Neighborhood Stabilization Program Funds for Native Americans living on Reservations. We respectfully request the State of Nebraska Department of Economic Development to make a similar set-aside of 20 percent or 3.6 million dollars. These funds would be used in accordance with the national program objectives for use on all the Indian Reservations located in the State of Nebraska. This would enhance the quality of life on the Reservations by providing safe and affordable housing, creating employment, and helping the local economy. Comment 45 Goodwill has been working with the Buffalo County Housing work group for many years and we have a strong interest in housing throughout our entire area. Please consider the Buffalo County NSP application, as the Buffalo County Housing Work Group and the Housing Senate have worked hard on obtaining precise data for the pre-application. We have the persons ready to start the program and persons who have the capacity to administer the program timely and correctly. Your consideration of our application would be greatly appreciated and we know you won’t be disappointed in the completion of the project. Comment 46

My comment and support for a similar provision as found in South Dakota would be an excellent leveraging strategy. And, would be a good way for tribes to work in collaboration with local governments in areas where there are tribal members residing in fee land. Perhaps like Walthill in Thurston county as an example. The Ponca Tribe of

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Nebraska actually has technical service areas established by the Congressional Restoration Act that includes 14 counties to include Douglas and Lancaster. I’m sure the Santee Tribe, Omaha Tribe, and Winnebago tribe would like to find ways to expand housing in adjacent or contiguous areas or areas “on or near” their reservations.

The South Dakota 20% could definitely be a model for Nebraska in the area of addressing state-tribal relations development in areas involving rural economic development and housing needs.

The Northern Ponca Housing Authority would like to see a 20% set aside for the 4 nebraska Indian tribes similar to the South Dakota plan.

Comment 47

In reviewing the recommendations for the use of NSP funds, I have a need for the department to consider. I believe there is a great need for funds to be allocated to the panhandle of Nebraska for the purpose of addressing emergency shelter needs for homeless individuals and families.

The Region I Continuum of Care for Housing and Homelessness formed a sub committee to work on this effort several years ago. This sub committee formed a 501 C3 which is managed by it’s own independent board of directors. This non – profit, Monument Family Connections, has been working diligently to obtain funding to open an emergency shelter. Our first effort was to partner with the Housing Authority to convert a GSA building which had been given to them, into shelter and transitional housing. The Housing Authority received grant funds from DED to help with this project As the department is aware, there was much controversy over the location which ultimately ended in DED rescinding the grant until a more equitable location could be found.

The department has been very supportive of this effort and has looked at several of the locations we have considered. Monument Family Connections has continued to seek a suitable site and community support for such a project and we believe we are close. The NSP funds would fit perfect with our venture. We have located an old hotel and bar which is an eye soar and safety issue for the community. Homeless people have been found sleeping in the hotel rooms which have raw sewer water standing, the fire department has been called to the location and the outside of the building is covered in graffiti.

Having the opportunity to write a grant which offers funding for demolishing and/or rehabilitating abandoned properties is exactly what Monument Family Connections has been waiting for. The project will house households at 50% AMI or less. As board chair of MFC and the Operations Manager for Cirrus House, I have been actively involved in the Region I CoC and see the magnitude of the homeless problem in our area on a daily basis. At the present time MFC and Cirrus House use vouchers from NHAP and State PATH grant funds to assist homeless referrals. These funds are minimal and only help a

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small percentage of those referred. Having a shelter would stretch our resources and would fill a gap for agencies through out the panhandle.

Monument Family has a design committee which is researching green build as well as other energy efficient construction. We have included local engineers, architects and city staff in the development of our plan. We intend on utilizing community volunteers as well as employing homeless individuals during the construction and/or redevelopment and beyond. MFC has networked with other agencies in the panhandle to provide case management/support services to help families transition from homelessness to permanent housing. We have listened to our community and believe the location and the plan we have for constructing a shelter answer concerns expressed by neighbors and business leaders.

We are hopeful the Nebraska Department of Economic Development will give us the opportunity to apply for these funds by allocating an proportionate amount of NSP funds to the panhandle for the purpose of demolishing blighted structures and the redevelopment of demolished or vacant properties.

Comment 48

Please accept this public comment regarding the NSP program. These funds are desperately needed in the Panhandle to build an emergency shelter in a blighted area of our community. Community Members have been working together for several years to find a suitable location and determine the safest and most empowering shelter model. NSP funds would assist our community in improving a blighted area of our community and encouraging additional beautification projects while establishing a green-build emergency shelter.

I strongly encourage you to consider the Panhandle (especially the Scottsbluff/Gering area) for use of these funds.

Comment 49

I am writing to ask you that Habitat for Humanity of Omaha, Inc. be included in the Neighborhood Stabilization Plan. I presently serve as Board President and can tell you that we are in a unique position to serve a blighted neighborhood is on the brink of disaster. Market forces are driving foreclosures at a rate higher than anywhere else in the state of Nebraska. We can help meet the goals of the Stabilization Plan and we hope that HFHO will be considered for funding.

Comment 50

Family Monument Connection in Scottsbuff, NE’s goal is to build a sustainable emergency shelter in Scottsbluff using blighted property on the East side of the city. We are currently negotiating for one of two sites. We will have on site management and a social support caseworker, charged with helping residents obtain food, clothing,

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employment and health care.

We have considerable community support, but always need more. We are networking with agencies who refer homeless people to us and others. We are currently working with vouchers using rooms at motels and empty apartments for short term housing. Our limited funds come from local and state grants and future funding is in the form of Bricks and Mortar Grant Pledges from local banks, state, and community sources.

As you well know, in these times there is a great need for a facility of this type, especially in a community of our size in Western Nebraska. The largest communities near us our at least one hundred miles in any direction. A recent paper has stated the homeless population has risen 30% since the summer. Combined with job loss and home foreclosures, these matters will certainly worsen.

I am co-chair of the design committee and we are dedicated to a totally green technology for this facility. I have proposed the idea of building the facility of adobe brick design, using the latest in solar technology, as well as passive solar architecture and landscaping. This idea would help us in several ways:

1) Historically, being on the Oregon Trail, pioneers often built their homes using local resources such as mud, sand, and hay using less sophisticated building skills. Skills which could employ homeless and unemployed persons and community volunteers. A structure of this nature can save as much as 50% in building costs. Many fine and enduring buildings have in the past and continue to be built with these materials.2) This process and over all design could be used as an educational tool in our local schools and college.3) A project of this nature could open up possibilities for grant and loan monies directed at organizations promoting alternative and sustainable energy sources as well as humanitarian organizations.4) I believe if we can realize all of these goals that such a facility would be a "showcase" and a model for the community, the state, and perhaps the nation.

I hope that you and your program will keep this western end of Nebraska in mind, and will lend any assistance you can. As you know, the need is dire.

Comment 51

It is great to hear about HUD’s new Neighborhood Stabilization Program that will provide emergency assistance to state and local governments to acquire and redevelop foreclosed properties that might otherwise become sources of abandonment and blight within their communities. Before the mortgage and foreclosure crisis even happened we have been dealing with this issue locally for several years. I am afraid it will only get worse now. I understand that Omaha and Lincoln are always going to be at the top of the list for funding like this - if for no other reason because of their size and population compared to

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the rest of the state. However I would like to urge you to consider some of the dire needs in the Panhandle of Nebraska especially Scotts Bluff County.I have an extensive background in working with homeless youth (ages 22 and younger) in the Panhandle. Through my experience of working with Monument Family Connections and now at Cirrus House, Inc. I can testify that the homeless problems span across ages and most often affect families and parents with children. As you may know Panhandle Community Services has a Transitional Living Program for homeless youth ages 16 to 21. These are youth who are NOT part of the foster care system or part of any other system of care – they are on their own - out in the streets and living in substandard housing such as run down abandoned houses, trailers with no heat or running water and living out of their cars. The following chart shows how many youth were turned away because the TLP program was at maximum capacity.Year Number of Youth Turned Away from the Transitional Living Program because the program was at maximum capacity. Note: These are all youth that filled out an application and met the FYSB definition of homelessness. 2002-2003 31 youth turned away 2003-2004 59 youth turned away 2004-2005 60 youth turned away 2005-2006 81 youth turned away 2006-2007 66 youth turned away 2008 update All TLP apartment slots (16) are currently full and they continue to receive referrals of homeless youth. That is 297 unduplicated homeless people in a specific age range since 2002. Last month Cirrus House, Inc had 21 referrals (in 24 days) of homeless people of various ages seeking us out for housing. Scotts Bluff County has a housing crisis right now. We do not have an Emergency Shelter option for people who are already homeless and we have blighted areas with land lords that are grossly taking advantage of low income, homeless and vulnerable populations of people. Next time you are in the city of Scottsbluff please take a drive through the Wagon Wheel Trailer Court. The owners of this property live in Colorado and rent rundown trailers to anyone with cash in hand. You will find 1 and 2 bedroom trailers with no furniture that have 10 to 15 people living there sleeping on blankets on the floor. You will find trailers with broken windows and some with no electricity some with no running water. Yet these trailers are being “rented” legally. This is just one example – there are others just like it.Every winter in Scottsbluff people engage in survival sex just to have a warm place to sleep at night. I have personally worked with an 18 year old mother who was sleeping in an unheated garage with her 6 week old baby, a 21 year old man who lives in his car in the Wal-Mart parking lot (where he works full time but has no place to live), a young married couple who bum places to sleep from couch to couch and sleep in their car when no other option is available, two homeless girls that are cousins and sleep where ever they can at night yet they still make it to school each day and are getting B’s and C’s for grades. I can go on and on but my point is this: Scotts Bluff County may not be able to ever compete with the numbers and statistics that Omaha and Lincoln can put up but people (human beings) are more than a group of numbers. Our end of the state has dire needs

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that go unmet year after year. On paper, 297 homeless youth in 5 years might look like a drop in the bucket compared to Omaha and Lincoln but when you have to look that one person in the face and say “I’m sorry I don’t have any place for you to stay tonight.” the numbers take on a whole different meaning.I would urge you to consider the Region I, Panhandle area for this and future funding opportunities that can address our very real housing crisis and need for emergency shelter.

Comment 52

As Mayor of the City of Ravenna I would encourage you and the DED to consider the Buffalo County NSP Program Application. Having worked with the Buffalo County Housing Senate and having attended some of the Buffalo County Housing meetings; along with offering input from the City of Ravenna’s Housing Listening Sessions and Surveys, I believe we have put together a workable application that addresses many of the common housing needs seen throughout the County that would help to revitalize our communities. The communities in Buffalo County are very progressive and would benefit greatly from the NSP Program funds. Thank you again for your consideration on the Buffalo County NSP Program Application.

Comment 53

I am so pleased to see that Nebraska has a plan for full utilization of theNSP funding. You have expressed accurately the areas of greatest need andhave opportunities for the entire state to benefit from this most needed fundingappropriation.In Western Nebraska, our issues of homelessness and blighted, substandard,vacant buildings are still of foremost concern as I mentioned to you on the phone.Our local banks and USDA offices were very conservative in their loans and havenot had the high exposure to foreclosures that many experienced in Eastern Ne.This is a unique opportunity for collaboration between the Housing Authority, PADD,TCD, realtors and communities to make a difference in their housing and economicdevelopment communities. Please consider an allocation for Western Nebraska,particularly Scotts Bluff County, but not forgetting the other Panhandle counties, wherevacant buildings can be demolished and new rental housing established or new storefrontswith housing attached to create sustainable neighborhoods. I am pleased to seemany applications from persons who are assisting the homeless and hope thatyour efforts will reflect a statewide effort to assist those who may find themselvesin the less than 50% and indeed, less than 30% of AMI.

Comment 54

I am the Chairperson for the Buffalo County Community Partners Housing Goal Work Group as well as the coordinator for the Buffalo County Housing Senate. The Housing Work Group goal was to raise funds and obtain a grant to complete the first ever county-

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wide Housing Study. This goal was accomplished and the finished product was presented to the public in June 2008.

One of the recommendations from the study was to create a Housing Senate comprised of a member from each Buffalo County community. This group has been formed and has been meeting monthly since June 2008. As a Senate group they felt the NSP program was a wonderful opportunity to accomplish one of their goals, which was to remove dilapidated structures from the communities in Buffalo County. They were very excited at the opportunity and spent time researching the structures which needed to be included in the pre-application.

As the work group leader I have been impressed by the commitment these volunteer Housing Senate members have shown. They have attended meetings, obtained pertinent data for the application and have served as a liaison to their respective communities to help spread the word about the importance of safe, affordable housing in Buffalo County. They are working toward a common goal and it is very rewarding to be a part of.

With all of this said, I would urge DED to give the Buffalo County NSP application the attention it deserves and consider investing funds in Buffalo County. There is a need; capacity and readiness to proceed have been reflected in the partners at the table and the persons working to make this a reality.

Thank you for your consideration and I am sure that if you invest in Buffalo County you will not be disappointed with the outcome.

Comment 55

I have a comment regarding the funding distribution in the NSP plan. I suggest that any leftover funds from the pool of money for the communities over 20,000 population (if there is any) be added to the rest of the Nebraska area which was only allocated $3.6 million. This money for removal of dilapidated structures would be very important to the rural Nebraska communities and would make a huge impact in their communities. For example, Arthur County is one of the smallest counties in Nebraska and would utilize the funds to demolish two dilapidated structures from their downtown area which would make way for a much needed new senior/community center and fire station. Since the community is so small they don’t have a large population to draw from to obtain donations, however those facilities are vital to the community’s existence. It is stories and examples like this that make the NSP program a great thing for rural Nebraska.

Comment 56

I am writing in support of the Buffalo County application to the Nebraska Stabilization Program for funding to remove vacant and dilapidated homes and assist in rehabilitating homes in Buffalo County. I am a member of the Buffalo County Community Coalition Board and was in attendance when the findings of the 2008 Housing Survey were shared

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with the constituents in Buffalo County. These are definitely needs that were identified in the process that was sponsored by the Partners Housing Coalition. Buffalo County is a hub for a lot of economic development activity and housing goes hand in hand with those activities. For this reason, please consider our application for the NAP program to put our best foot forward to attract new residents and improve on the neighborhoods we already have. Buffalo County is very progressive and we would put the NSP funds to good use. We are thorough and have the capacity to attain the outcomes we develop for the program. We would appreciate your consideration of our application.

Comment 57

I am the Chairman of the Buffalo County Board of Supervisors and am a member of the Buffalo Housing Senate. I also sit on other boards and committees in the area dealing with economic development. We, (members of these boards and committees) are always looking for things that help promote our communities to make them more desirable to both live in and work in. The NSP Grant is a great opportunity for our small communities to do just that. It will be an immediate, tangible way for people of these communities to see that things are getting done to further promote what we have to offer those that might be looking to move into these communities. Your consideration of our application would be greatly appreciated.

Comment 58

I received a copy of the proposed 2008 Housing and Community Development Substantial Plan Amendment for the Neighborhood Stabilization Program this week from the Community Development staff for the city of Grand Island. I am a Realtor in Grand Island, and serve as a member of our Community Development Advisory Committee, because I recognize the need to make improvements in the availability of affordable, decent housing and adequate infrastructure for the residents of Grand Island.

Our community submitted a request for funding during the pre-application phase, primarily as a result of the tremendous efforts of Joni Kuzma and Barb Quaundt. I believe that one of the important criteria for any grant funding is the amount of commitment and priority that a community shows in support of their proposed use. Without such commitment up front, the chances for success for the project are weakened. When a project is critical to successfully meeting the goals and objectives of a community, they will put forth the effort necessary to make it happen. I believe that Joni and Barb’s efforts showed that our community is committed to the success of our proposal.

I would like you to consider giving priority to those communities and organizations that met the requirements of a granting organization during the pre-application phase. Thank you for your consideration of my request.

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Comment 59

I have been a member of the Grand Island Community Development Advisory Committee for more than 10 years and am familiar with the amount of time and effort required to complete a grant application to carry out the activities of the grant. Based on that experience, I am submitting a public comment to your Department regarding the State Plan for the Neighborhood Stabilization Program.

I was pleased to hear that the Grand Island preapplication met the funding requirements of the grant program and was in one of the qualifying levels of allocation for grant funding. I believe that the extra effort invested by our Community Development staff and staff from the other organizations that submitted preapplications merits priority selection when the grant is awarded.

I understand that a full application will be required of each preapplicant and that grant funds will be made available to all the other towns and agencies in Nebraska that did not initially apply. Please consider awarding grant funds to the preapplicants as a type of entitlement and not require them to compete with applicants who did not participate in the first round.

Thank you for allowing me to provide this comment on behalf of the City and the Neighborhood Stabilization Program.

Comment 60

Please accept the following comments from the City of Grand Island as input into the 2008 Housing and Community Development Substantial Plan Amendment for the Neighborhood Stabilization Program.

The City submitted a pre-application to the Department, which is noted on page 12 of the Plan in the Proposed DED CDBG NSP Allocation Table. We would suggest that it would be consistent with HUD regulations and Public Law 110-289 to allow those counties/communities identified in the table to move forward as set aside projects. Grant approval could be contingent on submission of a full application in March that meets the thresholds set by HUD and DED. It is our suggestion that all new applications submitted in the open cycle be considered for funding with the moneys not already allocated to set aside projects.

It was further noted that HUD set an allowable administration fee of 10% Housing and Economic Recovery Act of 2008 and that the State has proposed a 4% administration fee for grantees in this program. The City contends that the administrative fee be set between 8 to 10% due to a limited grant time frame, the complexity of projects to be completed, and the high degree of oversight and management required to meet both HUD and DED regulations.

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We appreciate the opportunity to provide input into the 2008 Housing and Community Development Substantial Amendment for the Neighborhood Stabilization Program.

Comment 61

I would appreciate it if you would consider the following comments and suggestions as input into the 2008 Housing and Community Development Substantial Amendment for the Neighborhood Stabilization Program.

The City of Grand Island Community Development Division submitted a pre-application to the Department, which is noted on page 12 of the Plan in the Proposed DED CDBG NSP Allocation Table. It appears that would be consistent with the HUD regulations and Public Law 110-289 to allow those counties/communities identified in the table to move forward as set aside projects. Grant approval could be contingent on submission of a full application in March that meets the thresholds set by HUD and DED. I would suggest that all new applications submitted in the open cycle be considered for funding with the moneys not already allocated to set aside projects. The process, timeline and procedure for completing the pre-application was understandably short but, those of us that complied with the procedure should get consideration for our work.

The State has proposed a 4% administration fee for grantees in this program. HUD set an allowable administration fee of 10% Housing and Economic Recovery Act of 2008. Looking at the budget for my department and divisions; and the upcoming City budget process, City participation in the future may be limited if we have to subsidize the administrative costs associated with the programs. It is not possible to meet NEDED and HUD guidelines without certified, paid professional staff.

Thank you for giving me the opportunity to provide input into the 2008 Housing and Community Development Substantial Plan Amendment for the Neighborhood Stabilization Program.

Comment 62

I write in support of the State of Nebraska’s 2008 Housing and Community Development Substantial Plan Amendment grant submission for Neighborhood Stabilization Program funds. The proposed program meets the needs of Nebraskans and Omahans within the objectives of the Neighborhood Stabilization Program to acquire and redevelop foreclosed properties that might otherwise become sources of abandonment and blight.

The elements of the substantial plan amendment for the City of Omaha will assist our efforts to provide housing opportunities for lower income citizens, remove blighted structures for redevelopment, turn vacant and foreclosed properties into safe and sanitary housing, stimulate the housing market and rebuild property value. Overall, the Neighborhood Stabilization Program and I am confident the plan will improve the quality of life in our community. Thank you for including our proposed activities in your grant

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submission. Please let me know how the City of Omaha can assist you in making the Neighborhood Stabilization Program a success.

Comment 63

I am writing to ensure that you are aware of a new funding opportunity for our community, and to make a recommendation for developing your plans for that opportunity.

HUD’s new Neighborhood Stabilization Program (NSP) will provide emergency assistance to state and local governments to acquire and redevelop foreclosed properties that might otherwise become sources of abandonment and blight within their communities.

NSP provides grants to every state and certain local communities to purchase foreclosed and abandoned homes to rehabilitate, resell, or redevelop those homes in order to stabilize neighborhoods and stem the decline of house values of neighboring homes. The program is authorized under Title III of the recently passed Housing and Economic Recovery Act.

Under the law, local authorities must submit their budget plans for acquisition of foreclosed homes by December 1, 2008.

1. I am sure I join many who would ask that you submit plans for acquisition by the December 1 deadline and bring our fair share of the funds to our community.

2. In addition, I request that you strongly encourage/recommend/require home inspections for the houses that your office will acquire under the NSP program.

While a home inspection is always a good idea, it is especially important in cases of abandonment and foreclosure. Such distressed properties often suffer from a lack of maintenance and repair.

A home inspection may be indispensable to your efforts. Clearly, your office will need to respond to taxpayers who wish to know the physical condition of the homes that will come under your management with NSP funds.

Further, future homebuyers whom we hope will eventually purchase these homes will need some reassurance that they will be buying – and your office will be selling – houses that have been inspected for their technical condition. An independent, professional home inspection is the best available means to meet this need.

Thank you for your kind attention to these issues. I would appreciate knowing your plans to proceed. If I may be of help, I would be happy to answer questions about home inspections or provide other resource information that may assist you in this regard.

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G. NSP INFORMATION BY ACTIVITY (COMPLETE FOR EACH ACTIVITY)

THE STATUS OF PROJECTS LISTED IS DETAILED IN SECTION B DISTRIBUTION AND USES OF FUNDS

DED provided a pre-application form for potential Nebraska projects and held a DED CDBG NSP briefing to present the strategy and pre-application form. The pre-application form was available October 17, 2008 due November 3, 2008. This pre-application was substantially equivalent to the NSP application and checklist required for the DED substantial plan amendment to receive the State allocation of CDBG NSP. DED informed communities that the pre-application was needed to have a potential project included in the DED grant submission.

A COMPREHENSIVE SPREADSHEET WITH A LISTING OF ALL PRE-APPLICATIONS SUBMITTED AND DETAILS IS AVAILABLE FOR REFERENCE ON THE DED NSP WEBPAGE.Pre-applicant Activity NSP

AmountArea Level of Need

Omaha Acquisition, rehabilitation and resale of foreclosed and abandoned properties and redevelopment of vacant property for housing. Serving very low-income families.

$1,687,500 1

Omaha Redevelopment of vacant property to housing. Open Door Mission Permanent Supportive Housing for homeless men.

$1,250,000 1

Omaha Demolish blighted structures and redevelop as affordable housing for very low-income families.

$706,250 1

Omaha Redevelop vacant property to provide housing for very low-income seniors at 18th & Locust Streets

$356,250 1

Lincoln Acquisition, rehabilitation, and resale of foreclosed and abandoned homes to provide homeownership housing for very low-income homebuyers.

$1,000,000 2

Bellevue Demolition of blighted structures to prepare site to be “shovel-ready” for business development and job creation.

$1,000,000 3

Omaha Redevelop vacant property for housing low-moderate-middle income families.

$1,230,000 3

Greater Omaha Area Chamber of Commerce

Demolition of blighted structures and clearance to prepare for industrial park development.

$1,000,000 3

Lincoln Acquire foreclosed and vacant houses which were split into apartments, rehabilitate/deconvert/reconstruct for homeownership housing for low-moderate-middle income households in the Everett and Near South neighborhoods.

$800,000 4

Lincoln NeighborWorks Lincoln will acquire, rehabilitate and resell abandoned, foreclosed, and vacant homes to provide housing for low-moderate-middle income homebuyers in the Malone neighborhood.

$800,000 4

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Pre-applicant Activity NSP Amount

Area Level of Need

Fremont Demolish blighted structures and donate property to Habitat for Humanity for future housing projects.

$312,000 5

Grand Island Acquire foreclosed homes, demolish blighted structures, redevelop demolished and vacant property and partner with Habitat for Humanity and the North Central Continuum of Care for future development

$967,032 5

Norfolk Acquire, rehabilitate and resell foreclosed and abandoned homes for Low-moderate-middle income homebuyers. Demolish blighted structures.

$643,000 5

Columbus Redevelop vacant properties for 2nd floor downtown housing, homeless shelter expansion and relocation, and commercial development to create Low-moderate-middle income jobs. Acquire, rehabilitate and resell foreclosed and abandoned homes for low-moderate-middle income homebuyers.

$643,000 5

Kearney Demolish blighted structures. Redevelopment vacant property for Habitat for Humanity homes. Redevelop to expand city park that benefits primarily low-moderate-middle income families.

$540,072 5

Northeast Nebraska Economic Development District

Demolish blighted structures on lots that can feasibly be redeveloped and in communities enforcing local building codes and nuisance ordinances.

$1,050,400 5 - $420,4006 - $630,000

Housing Development Corporation

Acquire, rehabilitate, resell foreclosed, abandoned and vacant homes for low-moderate-middle income homebuyers.

$1,032,000 5 - $832,0006 - $200,000

NeighborWorks Northeast Nebraska

Acquire, rehabilitate, resell foreclosed, abandoned and vacant homes for low-moderate-middle income homebuyers.

$395,200 5-$142,5006-$252,700

Dawson Area Development

Demolish blighted structures. Communities have planned and maintained prioritize lists for substandard buildings

$720,000 6

Wilcox Demolish a blighted structure in the downtown and redevelop the property for a community center that serves low-moderate-middle income families

$655,200 6

Central City Demolish blighted structures, redevelop vacant demolished properties to housing for low-moderate-middle income families. The community has an established inventory and analysis for dilapidated and substandard houses.

$450,000 6

Indianola Demolish a blighted downtown structure and redevelop for a community tornado shelter to serve tenants of public housing built slab on grade and mobile home occupants.

$182,000 6

West Central Nebraska Development District

Demolish blighted structures in communities enforcing nuisance ordinances or building codes.

$1,396,100 6

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PROJECT 1 – City of Omaha - Acquisition, rehabilitation and resale of foreclosed and abandoned properties and redevelopment of vacant property for housing serving very low-income families.

(1) Activity Name: Single Family CROWN Rent-to-Own Program

(2) Activity Type: (include NSP eligible use & CDBG eligible activity)

NSP eligible uses §2301(c) Administration and Planning Costs §2301(c)(3)(B) purchase and rehabilitate homes and residential properties that

have been abandoned or foreclosed upon, in order to sell, rent, or redevelop such homes and properties;

§2301(c)(3)(E) redevelop demolished or vacant properties

CDBG eligible uses Administration and planning costs 24 CFR 570.201

(a) Acquisition(b) Disposition

24 CFR 570.202 Eligible rehabilitation and preservation activities for homes and other residential properties.

New housing construction

(3) National Objective: (Must be a national objective benefiting low, moderate and middle income persons, as defined in the NSP Notice—i.e., ≤ 120% of area median income).

Providing or improving permanent residential structures that will be occupied by a household whose income is at or below 120% of area median income (LMMH).

LMMH - Acquisition, Rehabilitation, Rental, Sale, Conversion, Construction of Housing Units

LMMH - All Units must be occupied by those meeting very low-income requirement.

(4) Activity Description: Include a narrative describing the area of greatest need that the activity addresses; the expected benefit to income-qualified persons; and whether funds used for this activity will be used to meet the low income housing requirement for those below 50% of area median income.

1. The project meets the area of greatest need level 1 referenced in Section A of this plan.

2. The project benefit to income-qualified persons is housing.

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3. The project will be used to meet the low-income housing requirement for those below 50% of area median income.

The Single-Family CROWN Rent-to-Own Program addresses several important needs of the NSP grant. First, the geographical focus of the program is in an area already established to have a need for stabilization, the North NRSA. The Single-Family CROWN Rent-to-Own Program will acquire abandoned/foreclosed upon properties and return them to the occupied housing stock. Not acting on abandoned/foreclosed upon property through the Single-Family CROWN Rent-to-Own Program not only puts these units at great risk further deterioration but threatens the area around each house. The 25 units would be rented exclusively to low-income households, households at or below 50% the Area Median Income (AMI).

The program is also designed to provide decent affordable housing to qualified renters interested in homeownership. The rent-to-own feature of the program requires that households participating make progress towards homeownership by: 1) Taking homeownership training/counseling services, and 2) Setting aside a portion from each monthly rent payment to be used for the downpayment and related cost when the household eventually buys a home.

The City of Omaha will use the approach to maintaining housing affordable with the Single-Family CROWN Rent-to-Own Program it uses with the HOME Investment Partnerships Program (HOME). One significant difference is the level of affordability. Unlike the HOME program, the household income level for participation in the Single-Family CROWN Rent-to-Own Program will be at or below 50% AMI. This legally-binding requirement will be incorporated into an agreement with the developer and will be monitored by the City of Omaha during the 20-year affordability period.

(5) Location Description: (Description may include specific addresses, blocks or neighborhoods to the extent known.)

The Single-Family CROWN Rent-to-Own Program will take place primarily in the North NRSA. The North NRSA is in a part of Omaha determined to be one of the most economically distressed areas of the city. The North NRSA not only defines the area of greatest need, but approval of the area as an NRSA by HUD offers enhanced flexibility for the use of CDBG funds in a manner that promotes innovative programs. This additional flexibility in using annual/regular CDBG funds with the Single-Family CROWN Rent-to-Own Program and other Neighborhood Stabilization Program (NSP) activities will enhance the impact of all efforts to stabilize and revitalize the North NRSA.

As previously described, the North NRSA is the targeted area for the Single-Family CROWN Rent-to-Own Program; however, any Census Block Group qualifying as a Low Moderate and Middle Income (LMMI) area could receive Single-Family CROWN Rent-

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to-Own Program funding. Still, only households meeting NSP income limits of at or below 50% of AMI would qualify.

Targeted Census Block Groups

TractBlock Group Tract

Block Group

3 1, 2, 3 42 1, 24 1, 2 51 1, 2, 35 1 52 1, 26 1, 2 53 1, 2, 37 1 54 1, 2, 3, 48 1, 3 58 2, 311 1, 2, 3 59.01 1, 2, 312 1, 2, 3 59.02 1, 219 1, 2 60 1, 2, 3, 4, 539 1, 2 61.02 540 1, 2, 3

(6) Performance Measures (e.g., units of housing to be acquired, rehabilitated, or demolished for the income levels of households that are 50 percent of area median income and below, 51-80 percent, and 81-120 percent).

25 foreclosed, abandoned, or vacant properties will be acquired and rehabilitated.

25 households with incomes at or below 50% of the Area Median Income will benefit from the rent-to-own housing.

(7) Total Budget: (Include public and private components)

Single-Family CROWN Rent-to-Own Program Budget

NSP Budget

50 % Low-

Income Benefit

Low/Mod Income Benefit

Other Public Funds

Private Funds

Total Project

Cost

Project Cost $1,620,000 $1,620,000 $1,620,000 $100,000 $3,286,268 $5,006,268Project Administration $67,500 $0 $0 $0 $0 $67,500Total $1,687,500 $1,620,000 $1,620,000 $100,000 $3,286,268 $5,073,768

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(8) Responsible Organization: (Describe the responsible organization that will implement the NSP activity, including its name, location, and administrator contact information)

The City of Omaha Planning Department Housing and Community Development Division serves as the responsible organization for the development and administration of the Single-family CROWN Rent-to-Own Program. The Omaha Planning Department is located at:

1819 Farnam Street, Suite 1111, Omaha NE 68183.

The administrator of the Single-family CROWN Rent-to-Own Program is:

James R. Thele, Assistant Planning Director(402) [email protected]

(9) Projected Start Date: September 1, 2009

(10) Projected End Date: August 31, 2012

(11) Specific Activity Requirements:For acquisition activities, include:

discount rate

Properties purchased will have a purchase discount of 15% or greater than the Current Market Appraised Value for each property purchased with NSP funds.

For financing activities, include: range of interest rates

NSP financing provided will be at a 0% interest rate

For housing related activities, include: duration or term of assistance; tenure of beneficiaries--rental or homeownership; a description of how the design of the activity will ensure continued affordability

Duration or term of assistance: 20 years conditional grant.

Tenure of beneficiaries: tenants to eventually become homeowners

Description of how the design of the activity will ensure continued affordability:

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Upon sale to a homebuyer, at the end of the initial 20-year rental affordability period, the City of Omaha will use its resale/recapture provisions for the HOME Program for homebuyers receiving NSP assistance, if any. The following excerpt from the Omaha Consolidated Plan provides the City’s “Resale/Recapture Provision” including the use of the “Area of Presumed Affordability” for the HOME Program (HOME shall be synonymous with NSP for the purpose of the NSP grant.):

Resale/Recapture Provisions for the HOME ProgramCity of Omaha

The Home Investment Partnerships Program requires that the City of Omaha establish resale/recapture provisions to ensure long-term affordability of homeownership housing assisted with HOME funds. These provisions apply to the City’s HOME-funded homebuyer program and do not apply to other HOME-funded projects.

Recapture Provisions

Beginning after project completion, the HOME-assisted housing for the initial homebuyer shall meet the affordability requirements for not less than the applicable period specified in the following table:

Amount of Homeownership Minimum Period of Assistance Per-Unit Affordability in Years

Under $15,000 5 Years

$15,000 to $40,000 10 Years

Over $40,000 15 Years

If the housing does not continue to be the principal residence of the family for the duration of the five, ten or fifteen year affordability period, or if the housing is sold during the affordability period, the City of Omaha will recapture only the amount available from the net proceeds from the sale of the HOME-assisted house.

For HOME-assisted housing projects, the principal amount of the mortgage/deed of trust will depreciate at the annual rate of 5% over a ten-year period.

Resale Provisions Within the Area of Presumed Affordability

The City of Omaha has completed a market analysis that documents that homes within a portion of North Omaha have modest values and are affordable to low-income homebuyers using conventional financing. This market analysis documents that homes within the Area of Presumed Affordability are affordable and that any sale within this area will be affordable and that market forces will ensure continued affordability of

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HOME-assisted properties. The U.S. Department of Housing and Urban Development has concurred with the results of the market analysis.

The City may select the HOME resale option for a project within the Area of Presumed Affordability before HOME Program assistance is provided to the initial homebuyer. Upon the selection of the resale option, the City will not impose resale/recapture restrictions on HOME-assisted, homeownership activities for the subsequent homebuyer. The Area of Presumed Affordability is the following Census Tracts:

Census Tracts in Which Housing Is

Presumed to be Affordable

Tract Tract Tract2.00 52.00 60.003.00 53.00 61.014.00 54.00 61.026.00 55.00 62.027.00 57.00 63.018.00 58.00 63.0211.00 59.01 63.0312.00 59.02

If the City does not select the resale option for projects within the Area of Presumed Affordability before HOME Program assistance is provided to the initial homebuyer, the Recapture Requirements described above shall be used. This resale provision applies only to the affordability requirements of the project and does not nullify any terms of the mortgage/deed of trust securing the HOME-funded assistance.

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PROJECT 2 – City of Omaha - Redevelopment of vacant property to housing. Open Door Mission Permanent Supportive Housing for homeless men.


(1) Activity Name: Open Door Mission Permanent Supportive Housing Redevelopment Project


NSP eligible uses

§2301(c) Administration and Planning Costs §2301(c)(3)(A) establish financing mechanisms for purchase and redevelopment

of foreclosed upon homes and residential properties, including such mechanisms as soft-seconds, loan loss reserves, and shared-equity loans for low- and moderate- income homebuyers


CDBG eligible uses Administration and planning costs As part of an activity delivery cost for an eligible activity as defined in 24 CFR

570.206. Financing mechanisms used to carry out CDBG eligible activities listed below. 24 CFR 570.201

(a) Acquisition(b) Disposition (e) Public services for housing counseling, but only to the extent that counseling beneficiaries are limited to prospective purchasers or tenants of the redeveloped properties






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The Open Door Mission Permanent Supportive Housing Redevelopment Project addresses several important needs of the NSP grant. The Open Door Mission Permanent Supportive Housing Redevelopment Project will construct 41 units of rental housing for homeless people. Providing permanent supportive housing for homeless people provides stable housing circumstances. Not providing it may prevent homeless people from achieving stable housing circumstance for themselves and stable households make for stable neighborhoods. The 41 units will be rented exclusively to low-income households, households at or below 50% the Area Median Income (AMI).

The City of Omaha will use the approach to maintaining housing affordable with the Open Door Mission Permanent Supportive Housing Redevelopment Project it uses with the HOME Investment Partnerships Program (HOME). One significant difference is the level of affordability. Unlike the HOME program, the household income level for participation in the Open Door Mission Permanent Supportive Housing Redevelopment Project will be at or below 50% AMI. This legally-binding requirement will be incorporated into an agreement with the developer and will be monitored by the City of Omaha during the 20-year affordability period.

The project includes the use of Low-Income Housing Tax credits, with rental limited to households at or below 50% LMI, having an initial 15-year affordability period followed by another 15-year period.

Financing includes LIHTC equity, FHLB-AHP funds, City HOME funds, tax increment financing, private contributions and NSP funds and private debt financing. No private debt financing is used. NSP funds will be at no interest.


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The Open Door Mission Permanent Supportive Housing Redevelopment Project will take place at the southeast corner of Locust Street and 23rd Street East. The Open Door Mission considers the location of this project, near its existing facilities, critical to the overall effectiveness of this project and to its existing programs/facilities. The project is also just three blocks from the North NRSA. The North NRSA is in a part of Omaha determined to be one of the most economically distressed areas of the city. The North NRSA not only defines the area of greatest need, but approval of the area as an NRSA by HUD offers enhanced flexibility for the use of CDBG funds in a manner that promotes innovative programs. These factors are obvious advantages for the Open Door Mission Permanent Supportive Housing Redevelopment Project.

As previously described, the North NRSA is near the Open Door Mission Permanent Supportive Housing Redevelopment Project. Only households meeting NSP income limits of at or below 50% of AMI would qualify.



Block Group

3 1, 2, 3 42 1, 24 1, 2 51 1, 2, 35 1 52 1, 26 1, 2 53 1, 2, 37 1 54 1, 2, 3, 48 1, 3 58 2, 311 1, 2, 3 59.01 1, 2, 312 1, 2, 3 59.02 1, 219 1, 2 60 1, 2, 3, 4, 539 1, 2 61.02 540 1, 2, 3


41 households with incomes at or below 50% of the Area Median Income will benefit from the permanent supportive housing.


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Open Door Mission Permanent Supportive Housing Redevelopment Project Budget

NSP Budget

50 % Low-

Income Benefit


Other Public Funds

Private Funds

Total Project

Cost

Project Cost $1,200,000 $1,200,000 $1,200,000 $663,000 $8,545,000 $10,408,000Project Administration $50,000 $0 $0 $0 $0 $50,000Total $1,250,000 $1,200,000 $1,200,000 $663,000 $8,545,000 $10,458,000


The City of Omaha Planning Department Housing and Community Development Division serves as the responsible organization for the development and administration of the Single-family CROWN Rent-to-Own Program. The Omaha Planning Department is located at:


The administrator of the Single-family CROWN Rent-to-Own Program is:





discount rate

Properties purchased with a purchase discount of 15% or greater than the Current Market Appraised Value for each property purchased with NSP funds.



For housing related activities, include:

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duration or term of assistance; tenure of beneficiaries--rental or homeownership; a description of how the design of the activity will ensure continued affordability

duration or term of assistance: conditional grant for 20 years.

Tenure of beneficiaries: tenants

Description of how the design of the activity will ensure continued affordability period: See Section C (3) of this plan for the description of how DED will ensure the continued affordability period for a new construction rental property.

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PROJECT 3 – City of Omaha - Demolish blighted structures and redevelop as affordable housing for very low-income families.


(1) Activity Name: Demolition and Redevelopment of Blighted Properties


NSP eligible uses: §2301(c) Administration and Planning Costs §2301(c)(3)(D) demolish blighted structures; §2301(c)(3)(E) redevelop demolished or vacant properties

CDBG eligible activities: Administration and planning costs 24 CFR 570.201

(a) Acquisition(b) Disposition (e) Public services for housing counseling, but only to the extent that counseling beneficiaries are limited to prospective purchasers or tenants of the redeveloped properties (n) Direct homeownership assistance (for persons whose income does not exceed 120% of median income)





LMMH - Homeownership


(4) Activity Description: Include a narrative describing the area of greatest need that the activity addresses; the expected benefit to income-qualified persons; and whether funds used for this activity

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will be used to meet the low income housing requirement for those below 50% of area median income.




Acquisition and demolition of vacant, blighted single-family residential structures by the City of Omaha and redevelopment of properties for housing for households at or below 50 percent of MFI.

The Demolition and Redevelopment of Blighted Properties addresses several important needs of the NSP grant. First, the geographical focus of the program is in an area already established to have a need for stabilization, the North NRSA. The Demolition and Redevelopment of Blighted Properties program will acquire vacant residential structures and demolish them. The vacant lots will then be used for the development new housing using a future source of redevelopment funds (e.g. HOME, LIHTC, CDBG). Not acting on blighted vacant residential structures through the Demolition and Redevelopment of Blighted Properties increases a health and safety hazard and threatens economic viability of the area around each vacant house. The 25 vacant lots that will result from the Demolition and Redevelopment of Blighted Properties program will create the opportunity for the construction of approximately the same number of new housing units affordable to households at or below 50% the AMI.

For housing constructed on these vacant sites the City of Omaha will use the approach to maintaining housing affordability it uses with the HOME Investment Partnerships Program (HOME). One significant difference is the level of affordability. Unlike the HOME program, income levels for households buying homes on sites created by the Demolition and Redevelopment of Blighted Properties will be at or below 50% AMI. This legally-binding requirement will be incorporated into an agreement with the developer and will be monitored by the City of Omaha during the 20-year affordability period.


The Demolition and Redevelopment of Blighted Properties program will take place primarily in the North NRSA. The North NRSA is in a part of Omaha determined to be one of the most economically distressed areas of the city. The North NRSA not only defines the area of greatest need, but approval of the area as an NRSA by HUD offers enhanced flexibility for the use of CDBG funds in a manner that promotes innovative programs. This additional flexibility in using annual/regular CDBG funds with the

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Demolition and Redevelopment of Blighted Properties program and other Neighborhood Stabilization Program (NSP) activities will enhance the impact of all efforts to stabilize and revitalize the North NRSA.

As previously described, the North NRSA is the targeted area for the Demolition and Redevelopment of Blighted Properties program; however, any Census Block Group qualifying as a Low Moderate and Middle Income (LMMI) area could receive Demolition and Redevelopment of Blighted Properties funding. Still, only households meeting NSP income limits of at or below 50% of AMI would qualify.



Block Group

3 1, 2, 3 42 1, 24 1, 2 51 1, 2, 35 1 52 1, 26 1, 2 53 1, 2, 37 1 54 1, 2, 3, 48 1, 3 58 2, 311 1, 2, 3 59.01 1, 2, 312 1, 2, 3 59.02 1, 219 1, 2 60 1, 2, 3, 4, 539 1, 2 61.02 540 1, 2, 3


25 blighted structures will be demolished.

25 homebuyers with incomes at or below 50% of the Area Median Income will benefit from the redeveloped housing.

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Demolition and Redevelopment of Blighted Properties Budget

NSP Budget

50 % Low-

Income Benefit


Other Public Funds

Private Funds

Total Project

Cost

Project Cost $678,000 $678,000 $678,000 $200,000 $4,000,000 $4,332,221Project Administration $28,250 $0 $0 $0 $0 $28,250Total $706,250 $706,250 $706,250 $200,000 $4,000,000 $4,906,250


The City of Omaha Planning Department Housing and Community Development Division serves as the responsible organization for the development and administration of the Demolition and Redevelopment of Blighted Properties. The Omaha Planning Department is located at:


The administrator of the Demolition and Redevelopment of Blighted Properties is:





discount rate




For housing related activities, include:

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duration or term of assistance; tenure of beneficiaries--rental or homeownership; a description of how the design of the activity will ensure continued affordability

Duration or term of assistance – conditional grant

Tenure of beneficiaries – homeownership

Description of how the design of the activity will ensure continued affordability – the project will meet the affordability requirements for homeowner housing detailed in Section C (3) of this plan.

The following excerpt from the Omaha Consolidated Plan provides the City’s “Resale/Recapture Provision” including the use of the “Area of Presumed Affordability” for the HOME Program (HOME shall be synonymous with NSP for the purpose of the NSP grant.):







$15,000 to $40,000 10 Years



87



The City of Omaha has completed a market analysis that documents that homes within a portion of North Omaha have modest values and are affordable to low-income homebuyers using conventional financing. This market analysis documents that homes within the Area of Presumed Affordability are affordable and that any sale within this area will be affordable and that market forces will ensure continued affordability of HOME-assisted properties. The U.S. Department of Housing and Urban Development has concurred with the results of the market analysis.





If the City does not select the resale option for projects within the Area of Presumed Affordability before HOME Program assistance is provided to the initial homebuyer, the Recapture Requirements described above shall be used. This resale provision applies only to the affordability requirements of the project and does not nullify any terms of the mortgage/deed of trust securing the HOME-funded assistance.

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PROJECT 4 – City of Omaha - Redevelop vacant property to provide housing for very low-income seniors at 18th & Locust Streets


(1) Activity Name: New construction of senior housing rental units


NSP Eligible Uses:


of foreclosed upon homes and residential properties, including such mechanisms as soft-seconds, loan loss reserves, and shared-equity loans for low- and moderate- income homebuyers;


CDBG Eligible Activities: Administration and planning costs As part of an activity delivery cost for an eligible activity as defined in 24 CFR


(b) Disposition (e) Public services for housing counseling, but only to the extent that counseling beneficiaries are limited to prospective purchasers or tenants of the redeveloped properties







89





The proposed project will be a twenty-eight (28) unit affordable rental housing project for seniors 55+. The proposed site is a comprised of approximately 3 acres located between Locust and Corby Streets and 18th and 19th streets in Omaha, Nebraska. The project will consist of seven 4-plexes, for a total of 28 units. Twenty-four of the total units will be 2-bedroom units, while the remaining 4 units will be 3 bedrooms. The units will be rented to households with an income up to 50% of the Area Median Income. The proposed rents will not exceed the fair market rents for a 2 bedroom and 3 bedroom units that are in effect at the time of lease agreement. The project will be 100%visitable and adaptable and would include at least one handicap accessible unit. The project includes the use of Low-Income Housing Tax credits, with rental limited to households at or below 50% LMI, having an initial 15 year affordability period followed by another 15 year period.


The new construction senior rental housing units will be built in the North NRSA. The North NRSA is in a part of Omaha determined to be one of the most economically distressed areas of the city. The North NRSA not only defines the area of greatest need, but approval of the area as an NRSA by HUD offers enhanced flexibility for the use of CDBG funds in a manner that promotes innovative programs. This additional flexibility in using annual/regular CDBG funds with the senior rental housing units and other Neighborhood Stabilization Program (NSP) activities will enhance the impact of all efforts to stabilize and revitalize the North NRSA.

Only households meeting NSP income limits of at or below 50% of AMI would qualify for these units.



Block Group

3 1, 2, 3 42 1, 24 1, 2 51 1, 2, 3

90

5 1 52 1, 26 1, 2 53 1, 2, 37 1 54 1, 2, 3, 48 1, 3 58 2, 311 1, 2, 3 59.01 1, 2, 312 1, 2, 3 59.02 1, 219 1, 2 60 1, 2, 3, 4, 539 1, 2 61.02 540 1, 2, 3


28 seniors with incomes at or below 50% of the Area Median Income will benefit from the newly constructed rental housing.


New Construction Senior Housing Rental Units Budget

NSP Budget

50 % Low-

Income Benefit


Project Cost $342,000 $342,000 $342,000Project Administration $14,250 $0 $0Total $356,250 $342,000 $342,000


Project AdministratorJames R. Thele, Assistant Planning Director(402) [email protected]

The City of Omaha Planning Department Housing and Community Development Division serves as the responsible organization for the development of the new construction senior rental housing units. The Omaha Planning Department is located at:

1819 Farnam Street, Suite 1111, Omaha NE 68183. (9) Projected Start Date: September 1, 2009

91



discount rate



NSP financing provided will be at a 0% interest rate.


Duration or term of assistance – NSP will be provided as a conditional grant with a 20 year affordability period

Tenure of beneficiaries – rental

Description of how the design of the activity will ensure continued affordability – the project will be subject to the affordability requirements for newly constructed rental housing detailed in Section C (3) of this plan.

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PROJECT 5 – City of Lincoln - Acquisition, rehabilitation, and resale of foreclosed and abandoned homes to provide homeownership housing for very low-income homebuyers.


(1) Activity Name: Purchase, rehabilitation(or demo/build new), resale.


NSP Eligible Uses: §2301(c) Administration and Planning Costs §2301(c)(3)(A) establish financing mechanisms for purchase and redevelopment


§2301(c)(3)(B) purchase and rehabilitate homes and residential properties that have been abandoned or foreclosed upon, in order to sell, rent, or redevelop such homes and properties;

§2301(c)(3)(D) demolish blighted structures; §2301(c)(3)(E) redevelop demolished or vacant properties

CDBG Eligible Activities: Administration and planning costs As part of an activity delivery cost for an eligible activity as defined in 24 CFR


(a) Acquisition(b) Disposition(d) Clearance, for blighted structures only(e) Public services for housing counseling, but only to the extent that counseling beneficiaries are limited to prospective purchasers or tenants of the redeveloped properties(i) Relocation(n) Direct homeownership assistance to persons whose incomes do not exceed 120% of median income.


24 CFR 570.204 Community based development organizations New housing construction

93

(3) National Objective: (Must be a national objective benefiting low, moderate and middle income persons, as defined in the NSP Notice—i.e., ≤ 120% of area median income).Providing or improving permanent residential structures that will be occupied by a household whose income is at or below 120% of area median income (LMMH).

Acquisition, Rehabilitation, Rental, Sale, Conversion, Construction of Housing Units

Homeownership Assistance All Units must be occupied by those meeting the low- and moderate-income

requirement.


1. The project meets the area of need level 2 referenced in Section A of this plan.



The project will address the preservation of home ownership in neighborhoods with low ownership rates while still keeping the houses affordable to lower income buyers. The benefit to income-qualified persons will be a first mortgage payment within their housing cost ratios. All funds will be used to benefit those below 50% of AMI.


City of Lincoln

Priority will be given to the Neighborhood Revitalization Strategy Areas (NRSA) to preserve home ownership but balanced by some economic integration in the non-LMI areas.


2 blighted structures will be demolished

7 houses will be acquired and rehabilitated

94

9 households with incomes at or below 50% of the Area Median Income will benefit from the homeownership opportunities provided.


$1,000,000 of NSP funds for the acquisition, rehabilitation and resale to 50% AMI buyers.This should result in nine first mortgages carried by a private lender or Habitat. Each mortgage in order to be affordable to a 50% AMI owner will need to be in the range of $50,000 to $70,000 in private mortgage funds.This will leave in each project $30,000 to $40,000 in NSP 0% deferred payment second mortgage.We also need to anticipate that after rehabilitation the appraised value may be less than what we have in the project but with that being said;The project should result in $540,000 of private mortgage money and $225,000 of NSP funds left in the project.


City of Lincoln, Urban Development, 808 P Street, Suite 400, Lincoln, NE. 68508, Steve Werthmann 441-8621, [email protected]

(9) Projected Start Date: June 1, 2009

(10) Projected End Date: June 1, 2011


discount rate



The soft seconds will carry a 0% deferred payment. The first mortgage will be market rate fixed through a private lender except for Habitat which carries a below market rate first mortgage.

For housing related activities, include: duration or term of assistance;

95


tenure of beneficiaries--rental or homeownership; a description of how the design of the activity will ensure continued affordability

Duration or term of assistance: the homebuyers will carry a soft second mortgage whose function will be to make the first mortgage affordable to someone at 50% AMI. The soft second will also prevent a “windfall” profit to the owner because the below market first mortgage amount will create instant equity for the buyer without the second being in place.

Tenure of beneficiaries: will be homeowners unless part of the funds are used for a Special Need project then the tenure will be permanent supportive housing tenant.

A description of how the design of the activity will ensure continued affordability:Once the acquisition and rehabilitation has taken place, the house will be sold so the first mortgage payment will be affordable to a 50% AMI buyer. This will be accomplished by moving the remaining balance of the purchase price determined by an appraisal to a 0%, deferred payment second mortgage. The second mortgage will serve as the affordability mechanism for recapture of the funds if the owner sells or no longer occupies the home.

The project will meet the affordability requirements detailed in Section C (3) of this plan.

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PROJECT 6 – City of Bellevue - Demolition of blighted structures to prepare site to be “shovel-ready” for business development and job creation.


(1) Activity Name: Coreslab Demolition and Redevelopment


NSP Eligible Uses: §2301(c) Administration and Planning Costs §2301(c)(3)(D) demolish blighted structures;

CDBG Eligible Activity: Administration and planning costs 24 CFR 570.201 (d) Clearance, for blighted structures only


Benefiting all the residents of a primarily residential area in which at least 51% of the residents have incomes at or below 120% of area median income (LMMA).

Demolition



2. The project benefit to income-qualified persons is removal of a blighted structure (demolition).

3. The project will not be used to meet the low-income housing requirement for those below 50% of area median income.

The area of greatest need addressed by this project is the former Coreslab industrial property located on the northwest corner of Fort Crook Road and Cornhusker Road and the surrounding residential neighborhoods north and west of the property. The expected benefit to income qualified persons in the area will be removal of a series of blighted structures and redevelopment leading to job creation activities benefiting LMMI persons. Due to the presence of active rail service on the property, residential

97

redevelopment using HUD funds would be challenging given considerations for noise and current land use at the site. However, the property is ideal for mixed commercial/industrial use, or could have benefits serving a public use for the area, and clearance of the blighted buildings is a critical first step in redevelopment.


The project location is in Bellevue Nebraska at the location known as the Coreslab property and is located on the northwest corner of the intersection of Fort Crook Road and Cornhusker Road.




Note :These are Cost Estimates Activity Cost NSP Amount Local ShareDemolition & Clearance $1,400,000 $980,000 $420,000 (TIF)Construction Mgmt $100,000 $0 $100,000 (City)NSP Administration $20,000 $20,000 $0Totals $1,520,000 $1,100,000 $520,000

The cost estimates above represent gross costs associated with clearance of the site to the point where it is “shovel ready” for redevelopment.


The project will be implemented by the City of Bellevue and led by the Public Works Director. The administrator for the project will be Jake Hansen of MAPA and his contact information can be found on page 4 of the pre-application.


(10) Projected End Date: December 1, 2009


discount rate

This project does not include NSP acquisition activities.

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This project does not include NSP financing activities.


This project is not a housing related activity.

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PROJECT 7 – City of Omaha - Redevelop vacant property for housing low-moderate-middle income families.


(1) Activity Name: Urban Homestead Rehabilitation and Resale Program


NSP Eligible Uses:





CDBG Eligible Activities:

Administration and planning costs As part of an activity delivery cost for an eligible activity as defined in 24 CFR


(a) Acquisition(b) Disposition(e) Public services for housing counseling, but only to the extent that counseling beneficiaries are limited to prospective purchasers or tenants of the redeveloped properties (n) Direct homeownership assistance to persons whose incomes do not exceed 120% of median income.





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Homeownership Assistance All Units must be occupied by those meeting the low- and moderate- middle -

income requirement.


1. The project meets the area of need level 3 referenced in Section A of this plan.



The Urban Homestead Rehabilitation and Resale Program addresses several important needs of the NSP grant. First, the geographical focus of the program is in an area already established to have a need for stabilization, the North NRSA. The Urban Homestead Rehabilitation and Resale Program will acquire vacant houses within the North NRSA and rehabilitate them. The rehabilitated houses will then be sold to qualifying households that will be required to complete at least eight hours of homebuyer counseling from a HUD-approved housing counseling agency. Not acting on vacant houses through the Urban Homestead Rehabilitation and Resale Program increases a health and safety hazard and threatens the economic viability of the area around each vacant house.

The 20 rehabilitated houses that will result from the Urban Homestead Rehabilitation and Resale Program will not only have a positive impact on the neighborhoods in which they are located, they will create affordable housing opportunities for 20 households. Half of these households will be at or below 80% the MFI for the area and the other half at or below 120% the MFI. Three of the households will be at or below 50% of the area MFI.


The Urban Homestead Rehabilitation and Resale Program will take place primarily in the North NRSA. The North NRSA is in a part of Omaha determined to be one of the most economically distressed areas of the city. The North NRSA not only defines the area of greatest need, but approval of the area as an NRSA by HUD offers enhanced flexibility for the use of CDBG funds in a manner that promotes innovative programs. This additional flexibility in using annual/regular CDBG funds with the Urban Homestead Rehabilitation and Resale Program and other Neighborhood Stabilization Program (NSP) activities will enhance the impact of all efforts to stabilize and revitalize the North NRSA.

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As previously described, the North NRSA is the targeted area for the Urban Homestead Rehabilitation and Resale Program; however, any Census Block Group qualifying as a Low Moderate and Middle Income (LMMI) area could receive Urban Homestead Rehabilitation and Resale Program funding. Still, only households meeting NSP income limits of at or below 120% of MFI for the area would qualify.



Block Group

3 1, 2, 3 42 1, 24 1, 2 51 1, 2, 35 1 52 1, 26 1, 2 53 1, 2, 37 1 54 1, 2, 3, 48 1, 3 58 2, 311 1, 2, 3 59.01 1, 2, 312 1, 2, 3 59.02 1, 219 1, 2 60 1, 2, 3, 4, 539 1, 2 61.02 540 1, 2, 3


19 units of housing will be acquired, rehabilitated and resold to LMMI homebuyers

2 very-low income households will benefit from the homebuyer activity.

7 households between 51% AMI and at or below 80% AMI will benefit from the homebuyer activity.

10 households with incomes at or above 81% AMI up to 120% AMI will benefit from the homebuyer activity.


Urban Homestead Rehabilitation and Resale Program Budget

NSP Budget

50 % Low-

Low/Mod Income

Other Public

Private Funds

Total Project

102

Income Benefit

Benefit Funds Cost

Project Cost $1,182,000 $162,000 $600,000 $818,000 $1,000,000 $3,000,000Project Administration $48,000 $0 $0 $0 $0 $48,000Total $1,230,000 $162,000 $600,000 $818,000 $1,000,000 $3,048,000


The City of Omaha Planning Department Housing and Community Development Division serves as the responsible organization for the development and administration of the Urban Homestead Rehabilitation and Resale Program. The Omaha Planning Department is located at:


The administrator of the Urban Homestead Rehabilitation and Resale Program is:


(9) Projected Start Date: December 1, 2009

(10) Projected End Date: November 30, 2013


discount rate



Interest rates for NSP assistance will be 0%.


Duration or term of assistance: Assistance will be provided as deferred forgiveable loans for the required affordability period.

103

Tenure of beneficiaries: homeownership

A description of how the design of the activity will ensure continued affordability:

All housing will meet the affordability requirements for homeownership detailed in Section C (3) of this plan.

For the rehabilitated housing the City of Omaha will use the approach to maintaining housing affordability it uses with the HOME Investment Partnerships Program (HOME). One significant difference is the level of affordability. Unlike the HOME program, income levels for households buying homes improved by the Urban Homestead Rehabilitation and Resale Program will be for three income levels; households at or below 50%, 80% and 120% MFI for the area. The City of Omaha, or a servicing agent, will verify the income of the homebuyer household and restrict the sale of the houses to the appropriate income level for the program, not to exceed NSP income limits. The City of Omaha will monitor homebuyers to ensure that the house is a principal place of residence and to ensure compliance with all NCP reulations during the appropriate affordability period.

The following excerpt from the Omaha Consolidated Plan provides the City’s “Resale/Recapture Provision” including the use of the “Area of Presumed Affordability” for the HOME Program (HOME shall be synonymous with NSP for the purpose of the NSP grant.):







$15,000 to $40,000 10 Years

104





The City of Omaha has completed a market analysis that documents that homes within a portion of North Omaha have modest values and are affordable to low-income homebuyers using conventional financing. This market analysis documents that homes within the Area of Presumed Affordability are affordable and that any sale within this area will be affordable and that market forces will ensure continued affordability of HOME-assisted properties. The U.S. Department of Housing and Urban Development has concurred with the results of the market analysis.





If the City does not select the resale option for projects within the Area of Presumed Affordability before HOME Program assistance is provided to the initial homebuyer, the Recapture Requirements described above shall be used. This resale provision applies only

105

to the affordability requirements of the project and does not nullify any terms of the mortgage/deed of trust securing the HOME-funded assistance.

Several requirements are designed to assure affordability for qualified homebuyers. No profit will be earned from the sale to a qualified homebuyer; the sale shall be in an amount equal to or less than the cost to acquire and redevelop or rehabilitate such home or property up to a decent, safe, and habitable condition. The maximum sales price for a property is determined by aggregating all costs of acquisition, rehabilitation, and redevelopment (including related activity delivery costs, which generally include, among other things, costs related to the sale of property). In addition, household will be provided soft-second mortgages

106

PROJECT 8 – Greater Omaha Chamber of Commerce - Demolition of blighted structures and clearance to prepare for industrial park development.


(1) Activity Name: North Omaha Business Park


NSP Eligible Uses: §2301(c) Administration and Planning Costs §2301(c)(3)(D) demolish blighted structures;

CDBG Eligible Activity: Administration and planning costs 24 CFR 570.201 (d) Clearance, for blighted structures only



Demolition



2. The project benefit to income-qualified persons is removal of a blighted structure (demolition).



Boundaries of the area are defined by on the West – 52nd Street,on the East – 16th Street, on the North – Sorensen Parkway, on the South – Cuming Street

107




Activity NSP Amount Omaha Dev Foundation

Other Funds

Total

Acquisition $0 $1,000,000 $0 $1,000,000Demolition & Clearance $980,000 $0 $1,000,000 $1,980,000NSP Administration $20,000 $0 $0 $20,000Totals $1,000,000 $1,000,000 $1,000,000 $3,000,000


Greater Omaha Chamber of Commerce1301 Harney St. Omaha, NE 68102

Administrator: David G. Brown, President and CEO, (402) 346-5000

(9) Projected Start Date: October 1, 2009



discount rate

NSP funds will not be used for acquisition in this project.


NSP financing will be provided as a forgiveable loan with a 0% interest rate.


This project does not include housing related activities.PROJECTS 9 & 10 (Combined) – Lincoln

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Everett and Near South - Acquire foreclosed and vacant houses which were split into apartments, rehabilitate/deconvert/reconstruct for homeownership housing for low-moderate-middle income households in the Everett and Near South neighborhoods.

Malone - NeighborWorks Lincoln will acquire, rehabilitate and resell abandoned, foreclosed, and vacant homes to provide housing for low-moderate-middle income homebuyers in the Malone neighborhood.


(1) Activity Name: Purchase, rehabilitation (or demolish/build new), resale


NSP Eligible Uses §2301(c) Administration and Planning Costs §2301(c)(3)(A) establish financing mechanisms for purchase and redevelopment




CDBG Eligible Activities Administration and planning costs As part of an activity delivery cost for an eligible activity as defined in 24 CFR


(a) Acquisition(b) Disposition(d) Clearance, for blighted structures only(e) Public services for housing counseling, but only to the extent that counseling beneficiaries are limited to prospective purchasers or tenants of the redeveloped properties(i) Relocation(n) Direct homeownership assistance to persons whose incomes do not exceed 120% of median income.

24 CFR 570.202 Eligible rehabilitation and preservation activities for homes and other residential properties. Note that rehabilitation may include counseling for those seeking to take part in the activity.

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Homeownership Assistance All Units must be occupied by those meeting the low- and moderate- middle-

income requirement.





Everett and Near South:The activity will address the need to increase home ownership in the Everett and Near South neighborhoods and in doing so provide a neighborhood revitalization benefit. Our top priority is to target houses that were split into apartments and deconvert. The benefit to income-qualified persons will be a first mortgage payment within their housing cost ratios. The funds will be used to benefit those below 120% of AMI which will economically integrate this low income neighborhood.

Malone: The activity will address a need to increase in home ownership in neighborhoods with low ownership rates while still keeping the houses affordable to lower income buyers. The benefit to income-qualified persons will be a first mortgage payment within their housing cost ratios. All funds will be used to benefit those below 120% of AMI.


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Everett and Near South:The Everett and Near South neighborhoods including distressed property on 11th & C, 15th & D, Goodhue Blvd., S 16th and 17th. Census Tracts: 17, 18, 20 and 22.

Malone:Activities will be conducted in the Malone Neighborhood of Lincoln.


10 units of housing will be acquired, rehabilitated and sold to homebuyers.

1 blighted structure will be demolished.

4 moderate-income homebuyers will benefit from the homeownership activity

6 middle-income homebuyers will benefit from the homeownership activity


Uses Amount SourceAcquisition 600,000 NSPDemolition 20,000 NSPRehabilitation 800,000 NSPRehabilitation 300,000 Other/NWL Line of Credit1st Mortgages 1,300,000 Local lendersSoft Seconds 116,000 NSPNSP Administration 64,000 NSPTotal 3,000,000Total NSP 1,600,000 NSP


City of Lincoln, Urban Development, 808 P Street, Suite 400, Lincoln, NE. 68508, Steve Werthmann 441-8621, [email protected]

Malone: City of Lincoln will partner with NeighborWorks Lincoln, Michael Snodgrass, 2121 N 27th Street, Lincoln, Nebraska (402) 477-7181, [email protected]


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discount rate





Tenure of beneficiaries will be homeowners.

Duration or term of assistance; the homebuyers will carry a soft second mortgage whose function will be to make the first mortgage affordable to someone between 80% and 120% AMI. The soft second will also prevent a “windfall” profit to the owner because the below market first mortgage amount will create instant equity for the buyer without the second being in place.

A description of how the design of the activity will ensure continued affordability:Once the acquisition and rehabilitation has taken place, the house will be sold so the first mortgage payment will be affordable to the income range of the buyer. This will be accomplished by moving the remaining balance of the purchase price determined by an appraisal to a 0%, deferred payment second mortgage. The second mortgage will serve as the affordability mechanism for recapture of the funds if the owner sells or no longer occupies the home.

Project will meet affordability requirements for homeownership housing in Section C. (3) of this plan.

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PROJECT 11 – City of Fremont - Demolish blighted structures and donate property to Habitat for Humanity for future housing projects.


(1) Activity Name: Acquisition, Demolition, Clearance, Redevelopment


NSP Eligible Uses §2301(c) Administration and Planning Costs §2301(c)(3)(D) demolish blighted structures; §2301(c)(3)(E) redevelop demolished or vacant properties

CDBG Eligible Activities Administration and planning costs 24 CFR 570.201

(a) Acquisition(b) Disposition (d) Clearance, for blighted structures only(e) Public services for housing counseling, but only to the extent that counseling beneficiaries are limited to prospective purchasers or tenants of the redeveloped properties(i) Relocation





Homeownership Assistance All Units must be occupied by those meeting the low- and moderate- middle-

income requirement.


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The project will result cleared, available lots for Habitat for Humanity to build upon. Habitat for Humanity currently has approximately 70 families on their waiting list. It is anticipated that 40 of these families will qualify for Habitat’s assistance. The expected benefit to income-qualified families will be quality, affordable housing and an increase in quality homes for the City of Fremont’s housing stock. Through the proposed activities, these funds will be utilized to meet the low income housing requirement for those below 120% of the area median income.


The City of Fremont will focus on the targeted area within the City of Fremont as identified by HUD where the household incomes are 51% or more at 120% of the area median income.


5 blighted structures will be demolished and redeveloped to housing.

1 very low-income family will benefit from the homebuyer housing.

2 moderate-income families will benefit from the homebuyer housing.

2 middle-income families will benefit from the homebuyer housing.


Description TotalAcquisition $200,000 NSPDemolition/Clearance 100,000 NSPNew construction and homebuyer assistance 625,000 H4HSubtotal 925,000

0181 General Administration 12,000 NSP Total Project Costs 937,000

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Organization responsible: City of Fremont; Fremont, Nebraska

Administrator: Tina M. Engelbart, Deputy DirectorAddress: Northeast Nebraska Economic Development District111 South 1st StreetNorfolk, NE 68701Telephone: 402.379.1150 Ext. 108 Fax: 402.379.9927Email: [email protected]

The City of Fremont will be the responsible organization. The city has a committed, experienced staff that have the history and capacity to implement the project in a timely manner. The City of Fremont is willing and able to partner with NDED during the application and implementation process of this program.

The City will contract with the Northeast Nebraska Economic Development District (NENEDD) for administration of this project and NENEDD will play a major role in the implementation of this project. NENEDD is located in Norfolk, Nebraska and serves a 16 County area. NENEDD has a staff of thirteen (13) full-time professionals who have a combined experience in community development, economic and housing development, finance, construction, and planning which exceeds 40 years. Eleven of our professionals are Certified Community Development Block Grant (CDBG) Grant Administrators who regularly attend CDBG and other training sessions each year. On staff is a Certified Economic Development Finance Professional, a Master Consultant in Business Retention and Expansion, and one graduate of the Economic Development Institute.

In the past thirteen years NENEDD assisted members in obtaining more than $80 million in grants and loans being awarded to members for various community and economic development projects throughout the region. These grants and loans leveraged over three times that amount in local and private funds.




discount rate

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Duration or term of assistance: NSP funds will be provided as a conditional grant for 5 years.


A description of how the design of the activity will ensure continued affordability: The project will follow the affordability requirements detailed in Section C. (3) of this plan.

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PROJECT 12 – City of Grand Island - Acquire foreclosed homes, demolish blighted structures, redevelop demolished and vacant property and partner with Habitat for Humanity and the North Central Continuum of Care for future development.


(1) Activity Name: Grand Island Neighborhood Stabilization Project




(a) Acquisition(b) Disposition (d) Clearance, for blighted structures only (e) Public services for housing counseling, but only to the extent that counseling beneficiaries are limited to prospective purchasers or tenants of the redeveloped properties(i) Relocation(n) Direct homeownership assistance (for persons whose income does not exceed 120% of median income)





Homeownership Assistance All Units must be occupied by those meeting the low- moderate- and middle-

income requirement.


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There is a need in Grand Island to develop housing for very low income residents and for quality, affordable housing for low-to-moderate income persons. Habitat for Humanity serves residents at 50% of medial income and report receiving an average of 100 applications for each home that they build in Grand Island. The Hall County Housing Authority has a 3-year waiting list for 2-3 bedroom homes and stated at a recent Affordable Housing Market Study Steering Committee meeting that “if their families do find housing that is available for rent, it is often poor quality or unsafe.” Director Rick Ruzicka also noted that houses with 4 or more bedrooms are needed due to an increase in large families in the last few years. Unfortunately, larger, existing homes in Grand Island were generally built prior to 1940 and need significant and costly improvements.


The properties with the greatest need for demolition or redevelopment will be selected from Hall County Census Tracts/Block Groups 000200-1; 000200-2; 000200-4; 000100-3; 000400-2; 000400-4; 000400-5; 000700-1; 000700-3; 000700-2; 000300-5; 000300-1; 000300-2; 000300-3; 000300-4; 000600-2; 000600-1; 000900-1; 001000-1; 000900-2; 000900-4; 001100-1; 001100-3; and 000800-1. Many of these areas have 1) a neighborhood school, 2) one or more mobile home parks, 3) undeveloped property, or 4) are in an area that has been declared substandard or blighted. Other Census Tracts/Block Groups outside of the City limits but within the 2-mile jurisdiction may be eligible.


12 blighted structures will be demolished and redeveloped.

4 very low-income households will benefit from redeveloped housing.

4 moderate-income households will benefit from redeveloped housing.

4 middle-income households will benefit from redeveloped housing.


Activity # of units

Budget per unit

NSP Request

OtherFunds

NSP Funding

Other sources of funding

Acquisition 12 $45,000 $528,400 NSPClosing Costs 12 $1,000 $ 12,000 NSPProperty taxes, lot upkeep

12 $1,500 $ 18,000 NSP

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Phase 1 Environmental Review; publications, filings, Building Dept. housing inspections

12 $500 $ 6,000 NSP

Lead Based Paint assessment/removal

12 $1,000 $ 12,000 NSP

Asbestos assessment/removal

12 $3,000 $ 36,000 NSP

Demolition 12 $7,000 per structure

$ 77,000 -

$7,000

NSPCity of Grand Island Building Department

Construction Development (RFP, public notices, advertising)

12 $500 $ 6,000 - NSP

Home ConstructionHabitat

4 $60,000 $240,000 Habitat

Home ConstructionHDC

4 $95,000 $380,000 HDC

Home ConstructionMarket

4 $110,000 $440,000 Contractors

Down payment assistance

12 $20,000 or 20% of purchase price/unit

$200,000

-

$ 40,000

NSP City of Grand IslandProgram Income

New construction of housing

12 $1,200,000 HabitatHDCContractors

Sidewalks, curb repair

12 $800 per unit

$ 8,400 -

HabitatHDCContractors

TOTAL: $895,400 $1,107,000Housing Admin. 4% $ 35,816 NSPGeneral Admin. 4% $ 35,816 NSPTotal Grant request $967,032 $ 967,032Total Project cost: $2,074,032


Applicant: The City of Grand IslandPhysical Location: 100 E. 1st St.

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Mailing Address: P.O. Box 1968 Grand Island, NE 68802

Administrator Contact: Joni Kuzma, Community Development Administrator Community Development P.O. Box 1068 Grand Island, NE 68802 Phone: 308-385-5444, ext. 248 Fax: 308-385-5423

Email: [email protected]


(10) Projected End Date: May 31, 2011


discount rate





duration or term of assistance;

Existing guidelines for duration or term of assistance are as follows but may be amended to meet the restrictions or modifications recommended by the Department. For persons at 80% - 120% of median income, down payment assistance from the City of Grand Island will be secured by a second mortgage in the form of a lien for a period of 10 years. This lien will be secured by a Deed of Trust and a Note to Secure the Deed of Trust to be signed by the applicant(s) and filed with the Hall County Register of Deeds. If the homebuyer lives in the house for the duration of the affordability period, the second mortgage will decrease 10% annually on the origination date, be forgiven at the end of the 10-year period, and no repayment will be required.

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For persons at 50% of median income, down payment assistance from the City of Grand Island will be secured by a second mortgage in the form of a lien for a period of 5 years. This lien will be secured by a Deed of Trust and a Note to Secure the Deed of Trust to be signed by the applicant(s) and filed with the Hall County Register of Deeds. If the homebuyer lives in the house for the duration of the affordability period, the second mortgage will decrease 20% annually on the origination date, be forgiven at the end of the 5-year period, and no repayment will be required.

A third lien will be executed on the housing unit if rehabilitation funds are utilized. The lien will be for a five-year period in the amount of the funds used and decrease 20% annually on the anniversary date of the loan. This lien will be secured by a Deed of Trust and a Note to Secure the Deed of Trust to be signed by the applicant(s) and filed with the Hall County Register of Deeds. If the homebuyer lives in the house for the duration of the affordability period, the third mortgage will be forgiven and no repayment will be required.

tenure of beneficiaries--renters or homeowners?; Existing City housing programs provide for tenures of either 5 or 10 years in the

clients’ home of residence, for both owner-occupied rehabilitation and the first time homebuyer program. Very low Income clients are at 50 – 80% of median income and have a 5-year tenure requirement. Low income clients can be at 80% median income and have a 10-year tenure requirement. Tenure guidelines may be amended if there are other restrictions or modifications recommended by the Department. Tenure guidelines for Habitat for Humanity will apply.

a description of how the design of the activity will ensure continued affordability

Current guidelines for use of recaptured CDBG funds are outlined in a 1994 Reuse Plan. These funds are reinvested into housing for families that meet low-to-moderate income guidelines to ensure affordability of housing. At this time, all recaptured funds are prorated and the amount repaid is directly dependent upon the established affordability period (5 years - 20% per year forgiven; 10 years - 10% per year forgiven). Recaptured funds are placed in an interest bearing account and used as program income for future housing activities that benefit low-to moderate income person.

Recaptured funds from NSP will follow HUD requirements for reuse or returned to the Department of Economic Development or HUD. The City has a policy in place for recaptured funds, but it may be modified if NSP funding is awarded.

Housing will meet affordability requirements detailed for homeownership in Section C. (3) of this plan.

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PROJECT 13 – City of Norfolk - Acquire, rehabilitate and resell foreclosed and abandoned homes for Low-moderate-middle income homebuyers. Demolish blighted structures.


(1) Activity Name: Purchase, rehabilitation, demolition, and down payment assistance








(a) Acquisition(b) Disposition(d) Clearance, for blighted structures only(e) Public services for housing counseling, but only to the extent that counseling beneficiaries are limited to prospective purchasers or tenants of the redeveloped properties(i) Relocation(n) Direct homeownership assistance (for persons whose income does not exceed 120% of median income)



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income requirement.





The greatest area of need is in the downtown area of Norfolk. Norfolk intends to utilize these funds to demolish vacant blighted residential and commercial structures allowing for shovel ready sites and to purchase foreclosed upon homes and either rent or sell them to low to moderate income families. Norfolk will also rehabilitate them and provide some type of financing tool to make the homes affordable to low and moderate families. Possible financing tools could include low interest loan to purchase and/or down payment assistance to help secure a first mortgage. Norfolk will file a deed of trust on all assisted properties for a minimum of the required affordability period and will target those families whose incomes are below 120% of the area median income.


Norfolk will focus on the entire area of the city as identified by HUD where the incomes are 51% or more at 120% of the area median income. We have identified 8 homes that are in foreclosure via HUD web-site. There are 17 properties that have been identified as potential blighted structures.

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10 foreclosed or abandoned homes will be purchase, rehabilitated and resold to low-moderate- and middle income homebuyers

2 very low-income households will benefit from the homebuyer activity.

2 moderate-income households will benefit from the homebuyer activity.

5 middle-income households will benefit from the homebuyer activity.


Description Total Direct Homebuyer Assistance 150,000 Demolition including Asbestos removal 150,000 SF Purchase/Rehab/Resale 258,700 Subtotal $ 558,700 Housing Management 6% 38,600 Paint Testing/Risk Assessments/ Clearance Testing 20,000 Subtotal 617,300 General Administration 4% 25,700 Total Project Costs $ 643,000


Organization responsible: City of Norfolk; Norfolk NebraskaAdministrator: Thomas Higginbotham, Northeast Nebraska Economic Development District

Address: 111 South 1st Street Norfolk, NE 68701

Telephone: 402-379-1150

Fax: 402-379-9207

Email:[email protected]

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As the applicant the City of Norfolk will ultimately be the responsible organization. The city has a track record, capacity and commitment to implement the project in a timely manner. The City of Norfolk has several key individuals that have previous experience with the CBDG program. Norfolk is ready, willing and able to work in partnership and cooperate with NDED during the application development and review process.

The City will contract with the Northeast Nebraska Economic Development District (NENEDD) for administration of this project and NENEDD will play a major role in the implementation of this project. The NENEDD is located in Norfolk, Nebraska and serves a 16 County area. NENEDD has a staff of thirteen (13) full-time professionals who have a combined experience in community development, economic and housing development, finance, construction, and planning which exceeds 40 years. Eleven of our professionals are Certified Community Development Block Grant (CDBG) Administrators who regularly attend CDBG and other training sessions each year. On staff is a Certified Economic Development Finance Professional, a Master Consultant in Business Retention and Expansion, and one graduate of the Economic Development Institute.

In the past thirteen years NENEDD assisted members in obtaining more than $80 million in grants and loans being awarded to members for various community and economic development projects throughout the region. These grants and loans leveraged over three times that amount in local and private funds.




discount rate





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Duration or term of assistance: the assistance will be provided in the form of a conditional grant for the required affordability period.


Description of how the design of the activity will ensure continued affordability. Housing will meet the affordability requirements for homeownership detailed in Section C. (3) of this plan.

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PROJECT 14 – City of Columbus - Redevelop vacant properties for 2nd floor downtown housing, homeless shelter expansion and relocation, and commercial development to create low-moderate-middle income jobs. Acquire, rehabilitate and resell foreclosed and abandoned homes for low-moderate-middle income homebuyers.


(1) Activity Name: Columbus NSP Program








(a) Acquisition(b) Disposition(c) Public facilities and improvements(d) Clearance, for blighted structures only(e) Public services for housing counseling, but only to the extent that counseling beneficiaries are limited to prospective purchasers or tenants of the redeveloped properties (i) Relocation(n) Direct homeownership assistance to persons whose incomes do not exceed 120% of median income.



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income requirement.


Demolition, Community Facilities

Serving a limited clientele whose incomes are at or below 120 % of area median income (LMMC).

Housing counseling for prospective purchasers/tenants Public facilities such as emergency shelters, group homes

Benefitting all employees that are hired for new jobs where 51% of the new employees for the new positions have incomes at or below 120% of the AMI (LMMJ)

Job creation



5. The project benefit to income-qualified persons is housing, demolished blighted structures, community facility – homeless shelter, and LMMJ jobs.


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Columbus, Nebraska.


1 building will be redeveloped for a homeless shelter

2 housing units will be acquired, rehabilitated and resold as 2nd story downtown housing.

2 households with incomes between 80% AMI and 120% will benefit from downtown housing.

3 housing units will be acquired, rehabilitated and resold.

3 households with incomes between 50% AMI and 80% AMI will benefit from homeownership

1 downtown building will be redeveloped as commercial staff.

3 low- moderate- middle income persons will benefit from jobs provided in the redeveloped commercial facility.


Activity

Description CDBG Local and Investor funds

Total

Rescue Mission relocation and expansion (redevelopment of vacant property)

$ 100,000 700,000 800,000

Removal of asbestos for commercial development (redev of vacant property)

$50,000 0 50,000

Rehabilitation and redevelopment of vacant 2nd story downtown housing

350,000 500,000 850,000

Acquisition/rehabilitation/resale of foreclosed and abandoned homes

117,300 50,000 167,300

Activity Subtotals $ 617,300 $ - $ 617,3000181 General Administration

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Special Conditions $5,140 $ - $5,140 Grant Progress Reports/

Drawdowns/Record Keeping

$7,710 $ - $7,710

Labor Standards Enforcement

$10,280 $ - $10,280

Miscellaneous (phone, copies, postage, audit, legal, etc.)

$2,570 $ - $2,570

Activity Subtotals $25,700 $ - $25,700 Total Project $ 643,000 $ - $ 643,000


Responsible Organization: City of Columbus; Columbus, Nebraska.Lisa HurleyAddress: NENEDD 111 S. 1st StreetNorfolk, NE 68701Telephone: 402-379-1150 Fax: 402-379-9207 Email: [email protected]




discount rate



NSP funds will be provided for housing as a 0% forgiveable loan.NSP funds will be provided for redevelopment for commercial as a 0% repayable loan

130


Duration or term of assistance: Funds will be provided with a duration of at least 5 years for affordability. Terms for homeless shelter – grant. Terms for housing – forgiveable loan.

Tenure of beneficiaries – homeownership

A description of how the design of the activity will ensure continued affordability: Housing will meet the affordability requirements detailed in Section C. (3) of this plan.

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PROJECT 15 – City of Kearney - Demolish blighted structures. Redevelopment vacant property for Habitat for Humanity homes. Redevelop to expand city park that benefits primarily low-moderate-middle income families.


(1) Activity Name: Kearney Neighborhood Stabilization and Redevelopment Program




(a) Acquisition(b) Disposition(c) Public facilities and improvements(d) Clearance, for blighted structures only(e) Public services for housing counseling, but only to the extent that counseling beneficiaries are limited to prospective purchasers or tenants of the redeveloped properties(i) Relocation





All Units must be occupied by those meeting the low- moderate- and middle-income requirement.


Demolition Public facilities – community park

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2. The project benefit to income-qualified persons is housing and community park.



Habitat for Humanity Houses will be constructed at the following locations:1910 7th Avenue, Kearney, NE1204 East 16th St., Kearney, NE1206 East 16th St., Kearney, NE1304 East 16th St., Kearney, NE1807 2nd Avenue, Kearney, NE

Homes the City of Kearney will be determined as blighted structures, acquiring, demolishing, and redeveloping for eligible community park space are as follows:1811 2nd Avenue, Kearney, NE1813 2nd Avenue, Kearney, NE

Houses that the City of Kearney determined as blighted and will be demolishing:718 East 30th Street, Kearney, NE720 East 30th Street, Kearney, NE1920 5th Avenue, Kearney, NE


5 households with incomes at or below 50% AMI will benefit from Habitat for Humanity homes.

Approximately 5,000 people total and 2,600 people with incomes at or below 120% AMI will benefit from the redeveloped park space.

6 blighted structures will be demolished. 1 will be redeveloped for Habitat Housing, 2 will be redeveloped for park space.

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(7) Total Budget: (Include public and private components)NSP Total

Habitat for Humanity (4-3bedroom homes)@ $72,075 each $288,300 $360,375Demolition of 3 homes in City of Kearney @ $10,000 each $30,000 $ 30,000Acquisition of Properties on 2nd Avenue (3 homes) $133,200 $133,200Demolition of Properties on 2nd Avenue 3 @ $10,000 each $30,000 $ 30,000Relocation of Tenants (3 tenants @ $12,600 each) $37,800 $ 37,800

TOTAL PROJECT COSTS $519,300 $519,3004% Project Administration $20,272 $ 20,772

TOTAL PROJECT COSTS & ADMINISTRATION $540,072 $612,147


Miller & Associates, 1111 Central Avenue, Kearney, NE 68847 will be the responsible organization implementing the NSP activities for the City of Kearney. Miller & Associates has two certified administrators on staff, Candy Kuntz and Jacque Haupt. Candy Kuntz will handle the day-to-day administration of the project. Her contact information is 308/234-6456 (telephone) 308/234-1146 (fax) and [email protected] (e-mail) Candy has been a certified administrator since 2003 and is currently administering the Comprehensive Revitalization funds for the City of Kearney.


(10) Projected End Date: December 30, 2010


discount rate



NSP funds provided for financing will have a 0% interest rate.

For housing related activities, include: duration or term of assistance;

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tenure of beneficiaries--rental or homeownership; a description of how the design of the activity will ensure continued affordability

Duration or term of assistance: the direct assistance will be provided as a deferred forgiveable loan for the affordability period.

Tenure of beneficiaries – homeownership.

A description of how the design of the activity will ensure continued affordability: The affordability instructions for homeownership detailed in Section C. (3) of this plan will be enforced.

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PROJECT 17 – Housing Development Corporation - Demolish blighted structures on lots that can feasibly be redeveloped and in communities enforcing local building codes and nuisance ordinances.


(1) Activity Name: Demolition and Clearance for Northeast Nebraska


NSP Eligible Uses §2301(c) Administration and Planning Costs §2301(c)(3)(D) demolish blighted structures;

CDBG Eligible Activities Administration and planning costs 24 CFR 570.201 (d) Clearance, for blighted structures only



Demolition


1. The project meets the area of greatest need levels 5 and 6 referenced in Section A of this plan.

2. The project benefit to income-qualified persons is demolition and clearance of blighted structures.


Northeast Nebraska Economic Development District (NENEDD) is proposing to use $1,050,400 CDBG NSP funds for demolition/clearance of blighted structures in their 17 County service area. NENEDD will work with local governments and economic developers in identifying the properties that if redeveloped would best stabilize neighborhoods and communities. Communities believe if lots were cleared and available,

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that they would be redeveloped. Some of the properties on the potential listing under Question B already are targeted for redevelopment once cleared. Most properties are truly a safety issue and will benefit the entire community both by removing a hazard and by improving appearance to those looking at the community to relocate or start a business.


The demolition funding will be available in the following Counties: Antelope, Boone, Butler, Burt, Cedar, Colfax, Cuming, Dodge, Knox, Madison, Nance, Pierce, Platte, Stanton, Thurston and Wayne.

List of Blighted StructuresCommunity Address/Location Property Type Redevelopment TargetAlbion 719 State Street Residential

804 Main Street Residential812 Main Street Residential818 Market Street Residential542 South 7th Street Residential804 South 5th Street Residential515 South 3rd Street Residential714 A Street Residential Multi-family housing956 South 2nd Street Residential604 South 2nd Street Residential504 South 1st Street Residential119 South 5th Street Commercial Commercial302 West Main Street Commercial Commercial

Beemer 3rd and Main (old grocery store) Commercial CommercialTrailers Trailer

Cedar Rapids 503 South Second St. House – Village owns

Duplex

416 South Second St. House Single family housing514 South Second St House Single family housing305 South Third St. House Single family housing

Clarkson 414 Elm Street House Residential310 Pine Street Apartment Building Commercial218 Elm Street House Residential314 East 3rd Garage Residential314 Bryan House Residential422 Oak House Residential515 Maple Street House Residential517 Maple St. House Residential310 Oak St House Clarkson Motor’s would

probably enlarge parking lot for business

119 E. 8th St. House Residential

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Community Address/Location Property Type Redevelopment Target518 Bryan St. House Residential

Clearwater Utah St. HouseUtah St. and Nebraska HouseColorado & Reno, S.W. Corner HouseMontana St. & Reno St. N.W. Corner CommercialMontana St. HouseCuster St. HouseDowntown, Nebraska St. Former Town

buildingCommercial

Custer & Colorado St. HouseCreighton Old bakery on Main Street Downtown

CommercialCommercial

Old Vet Clinic on Main Street Downtown Commercial

Commercial

David City 198 West D Street Residential315 South 4th Street Residential210 South 8th Street Residential

Decatur 470 West 12th Street Apartment Building Residential655 West 5th Street House Residential431 A West 10th Street House Residential470 West 10th Street House Residential341 East 9th Street Trailer Residential350 East 10th Street Trailer Residential340 East 10th Street House Residential550 West 6th Street Trailer Residential401 West 6th Street Trailer Residential411 West 6th Street Trailer Residential212 North 4th Ave House Residential622 North Broadway House Residential

Fordyce Old Bank Building CommercialFullerton 518 Esther St. SFR Zone R-1

109 Esther St. SFR Zone R-1107 Esther St. SFR Zone R-1418 S. Johnson SFR Zone R-1418 Irving St. SFR Zone R-1112 Broadway SFR Zone R-1705 Germand St SFR Zone R-1308 Broadway Commercial Zone B-2705 German St. SFR Zone R-1308 Broadway Commercial Zone B-2417 3rd Street All three are

commercial buildings

Zoned B-1, could be cleared to make room for a large commercial development area

415 3rd Street411 3rd Street

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Community Address/Location Property Type Redevelopment TargetHowells West Main Street House

North 3rd Street House, building and trailer

South 2nd Street by Legion Club HouseSouth 1st Street HouseSouth 2nd Street HouseNorth 8th Street TrailerNorth 6th Street HouseSouth 3rd Street HouseJosephine Street HouseSouth 3rd Street HouseNorth 3rd Street Shed by Hegemann

HardwareEast Center Street Humlick Funeral

HomeLaurel 103 Elm St. Downtown –

CommercialCommercial

105 Oak St. Downtown – Commercial

Commercial

107 Oak St. Downtown Business – Commercial

Commercial

Lyons 230 Grant Street House & Garage425 Crystal House405 S. 3rd Street House103 Pearl St. House610 Pearl St. House505 State St. House125 Main St. Bowling Alley Commercial

Madison606 S. Ingram

Condemned – Residential

Residential

305 W. 2ndCondemned – Residential

Residential

102 S. RubyCondemned – Residential

Residential

307 W. 4thCondemned – Residential

Residential

202 E. 1stCondemned – Residential

Residential

307 S. Lincoln Residential Residential508 N. Main Residential Residential408 W. Third Residential Residential602 S. Hamilton Residential Residential102 S. Orchard Residential Residential

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Community Address/Location Property Type Redevelopment Target104 E. 1st Residential Residential110 E. 1st Residential Residential408 E. 1st Residential Residential410 E. 1st Residential Residential1006 S. Orchard Residential Residential1005 S. Main Residential Residential

Neligh 210 M Street Commercial214 M Street Commercial414 M Street Commercial205 K St. House

Newman Grove 503 Boardwell Avenue

Bob’s Motel – Commercial

605 Hale Avenue Old Reporter Office – Commercial

504 Hale Avenue Commercial310 Hale Avenue Nazarene Church308 Hale Avenue House215 N 1st Street House106 N 4th Street House108 S 4th Street House206 County Line House113 N 4th Street House106 N 5th Street House207 N 5th Street House208 N 6th Street House202 N 7th Street House114 N 9th Street House108 N 10th Street House601 County Line House615 County Line House308 Hale Avenue House

Oakland 311 North Park House – basement caved in and owners abandoned

314 N. Logan House – destroyed by fire

Unsure, zoned commercial

308 Lundstrom Condemned house208 N. Oakland Ave Downtown

Business – Commercial

Commercial

214 N. Fried Condemned housePetersburg Main Street downtown Insurance building

– currently owned by Petersburg Dev.

Commercial

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Community Address/Location Property Type Redevelopment TargetCorp.

Main Street downtown Commercial – Petersburg Dev. Corp is already in process of buying – not closed

Commercial

Corner of 7t and Lincoln St. Church106 S. Lincoln St. House305 East Leona House205 East Norman St. House

Pilger 210 N. Main Street Commercial Commercial245 N. Main Street Commercial Commercial305 E 2nd Street Residential Residential200 E. 2nd Street Residential Residential130 E. 4th Street Residential Residential250 E. 4th Street Residential Residential250 W. Elm Street Residential Residential215 S. Main Street Residential Residential

Platte Center HouseHouseHouse

Primrose 3rd and Walnut4th and CommercialSchley and Commercial

Randolph W. Broadway (Old Laundromat Building)

Commercial

101 E. Wayne (Poppe Service Station) Commercial303 S. Main537 W. Jackson711 W. Broadway202 E. Jackson

St. Edward 313 Beaver St. Downtown Commercial

Commercial

3rd Street, 2 blocks North of Beaver St. House301 Lafayette St. House305 Beaver St. Downtown

Commercial107 North 7th St. House3rd & Walter St. House308 S. 5th Street House1011 Lovers Lane House & Trailer

Schuyler Great Northern Warehouse Property (located immediately on the north side of the UP railroad @ corner of Adam &

Multiple buildings and silos

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Community Address/Location Property Type Redevelopment Target13th St.Corner of B & 12 Street Old Coast-to-

Coast/Aztec Building

Scribner 511 Main Street Residential Expansion; Funeral Home

612 Main Street Residential Single Family Housing125 Neff Street Residential Single Family Housing500 5th Street Residential (old

manor)Multi-Family Housing

617 Main Street Residential Single Family Housing308 6th Street Residential Single Family Housing508 6th Street Residential Single Family Housing404 6th Street Residential Single Family Housing408 6th Street Residential Single Family Housing700 Main Street Residential Single Family Housing201 9th Street Residential Single Family Housing705 Main Street Residential Single Family Housing

Spalding 150 W. Canal Street Residential230 E. St. James St Residential110 W St. Joseph St. Residential150 W St. Joseph St. Residential

Tekamah 1710 M Street Partially burned home

510 S. 14th Street Residential1423 E Street Partially burned

home312 and 314 S. 14th Street Commercial – one

building, partially burned

1604 C Street Partially burned trailer

805 S. 13th Street CommercialTilden Antelope County side of Center Street 50’ x 100’, zoned

commerciallyWakefield Condemned old school. Community Resource

Center/ DaycareWayne 201 Logan Street Grain Elevator Downtown revitalization

plan – options are being looked at – owners willing to redevelop or sell

116 South Main Grain Elevator Determined in downtown revitalization plan –

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Community Address/Location Property Type Redevelopment Targetoptions are being looked at – owners willing to redevelop or sell

216 Fairgrounds Ave Lot # 12 Trailer216 Fairgrounds Ave Lot # 46 Trailer

Wisner On Ave. D between 10th and 11th Streets 2 Commercial buildings

Proposed site for fire hall




Activity Description CDBG Local Match Non CDBG or Local Match

Total

0030 Clearance/Demolition Clearance/Demolition $ 800,000 $ - $ - $ 800,000 Lead Paint

Testing/Abatement $ 70,000 $ - $ - $ 70,000

Asbestos Testing/Abatement

$ 140,000 $ - $ 140,000

Activity Subtotals $ 1,010,000 $ - $ - $ 1,010,000 0181 General Administration

Special Conditions $ 8,080 $ - $ - $ 8,080 Grant Progress Reports/

Drawdowns/Record Keeping

$ 12,120 $ - $ - $ 12,120

Labor Standards Enforcement

$ 16,160 $ - $ - $ 16,160

Miscellaneous (phone, copies, postage, audit, legal, etc.)

$ 4,040 $ - $ - $ 4,040

Activity Subtotals $ 40,400 $ - $ - $ 40,400 Total Project $ 1,050,400 $ - $ - $ 1,050,400

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Northeast Nebraska Economic Development, Inc. is the responsible organization. NENEDD is located at 111 S. 1st Street, Norfolk, NE 68701.

Administrator name: Thomas L. HigginbothamAdministrator location: same as aboveAdministrator phone: 402-379-1150Administrator e-mail: [email protected]




discount rate No acquisition activities


No financing activities.


No housing activities.

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17 – Housing Development Corporation - Acquire, rehabilitate, resell foreclosed, abandoned and vacant homes for low-moderate-middle income homebuyers.


(1) Activity Name: Purchase, Rehabilitation, Resale of Foreclosed and Abandoned Property







(a) Acquisition(b) Disposition(i) Relocation(n) Direct homeownership assistance to persons whose incomes do not exceed 120% of median income.





Homeownership Assistance

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All Units must be occupied by those meeting the low- moderate- and middle-income requirement.






Grand Island, Nebraska; Hastings, Nebraska; and additional communities in the following Nebraska counties: Adams, Clay, Hall, Nuckolls and Webster Counties.


28 foreclosed or abandoned houses will be purchased, rehabilitated, and sold to low- moderate- middle income households.

7 households with incomes below 50% AMI will benefit from the homeownership activity.

7 households with incomes between 51% and 80% AMI will benefit from the homeownership activities.

14 households with incomes between 81% and 120% AMI will benefit from the homeownership activities.


NSP FUNDSAdministration 100,000.Purchase 8 homes at an average cost of $75,000. 600,000Complete Rehabilitation at an average cost of $20,000. 160,000.

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Pay closing costs, holding costs during construction and marketing,insurance, utilities, maintenance – Approximate holding timeis based on 6 months- 8 units at 1,500. 12,000.Down Payment Assistance 8 X Average of 20,000 per homebuyer 160,000.Total NSP Funds $1,032,000.00

Resell homes for the purchase price plus repairs less DPA of up to $20,000.00 per household at and average cost of $95,000.00 per homeContinue purchasing homes with the funds generated form the sale of homes, complete rehabilitation, and provide DPA until funds are exhausted

Potential units 28 Private fundsHomeowner contribution 28 X $500.00 minimum $14,000.00First Mortgages 28 X average of $70,000.00 $1,960,000.00

Total Project NSP FUNDS $1,032,000.00 Private Funds $1,970,000.00

TOTAL $3,006,000.00


Responsible Organization – Housing Development CorporationPO Box 1005 Hastings, Nebraska 68902

Administrator Contact Linda Addison, Executive Director402 461 [email protected]




discount rate



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range of interest rates: NSP funds will be provided as deferred forgiveable loans at 0% interest rate


Duration or term of assistance: The down payment assistance is a one time principle reduction payment at closing that will be used for closing costs and to reduce the amount of the mortgage loan


A description of how the design of the activity will ensure continued affordability:

HDC has assisted 126 homeowners purchase homes since 1995. Of the126 families only 2 households have had mortgages foreclosed. This represents 2 % of the total. The majority of these households are at or below 80% of median income and all are below 100% median income. This population group represents families that are more likely to lose their home through foreclosure due to job loss, illness, or a change in the household due to divorce or death. HDC’s Program Design limits the household to spending 25% or less of the gross income for housing costs and requires that homebuyers are dredit worthy or willing to work towards cbeing credit worthy. Lenders have traditionally been allowing up to 32% and if there is little or no debt, as much as 41%. This type of lending practices has caused some of the foreclosure problems. Housing costs include: Principle, Interest, Taxes and Insurance (PITI). Lenders will allow up to 32%. Homes that are rehabbed by HDC meet the minimum standards as required by NDED. In addition HDC makes sure that the life expectancy of all mechanicals, roof, structure and other inspected areas of the home is at least 5 years. This ensures that the homeowner will not face expensive repairs within the first five years of purchase which is when the risk of foreclosure in highest.

All homeownership activities will meet the affordability requirements for homeownership detailed in Section C. (3) of this plan.

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PROJECT 18 – NeighborWorks Northeast Nebraska - Acquire, rehabilitate, resell foreclosed, abandoned and vacant homes for low-moderate-middle income homebuyers.


(1) Activity Name: NSP Purchase/Rehab/Resell







(a) Acquisition(b) Disposition(i) Relocation(n) Direct homeownership assistance to persons whose incomes do not exceed 120% of median income.






income requirement.

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NeighborWorks® Northeast Nebraska intends to utilize NDED CDBG NSP funds to purchase, rehabilitate and resell 5 foreclosed upon or abandoned homes which will be located within the communities situated in Colfax, Cuming, Madison, Pierce, Platte, Stanton or Wayne counties. All five homes will be sold to beneficiaries with up to 120% of the area median income per the most recent HUD income limits for the county of residence.


Various sites located within communities situated in the Colfax, Cuming, Madison, Pierce, Platte, Stanton or Wayne counties.


5 foreclosed or abandoned homes will be purchased, rehabilitated and sold to qualified homebuyers.

1 household with an income at or below 50% AMI will benefit from the homeownership activity.

2 households with incomes between 51% and 80% AMI will benefit from the homeownership activity.

2 households with incomes between 81% AMI and 120% AMI will benefit from the homeownership activity.


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Single Family Purchase/Rehab/Resale

CDBG OTHER Acquisition (5 x $60,000) $200,000

$100,000Rehabilitation (5 x $20,000) $100,00010% Resale Discount (5 x $ 8,000) $ 40,000Development Fee (5 x $ 8,000) $ 40,000

Grant Administration $ 15,200

(Inspect Properties $2,000)(Oversee Rehabilitation $3,000)(Prepare Closing Documents $1,000)(Provide Homebuyer Education $1,200)(Obtain Release of Funds $2,000)(Prepare Drawdowns $2,000)(Complete Annual Performance Reports $1,000)(Final Grant Closeout Report $3,000)

TOTAL PROJECT COST: $395,200 $100,000


NeighborWorks® Northeast Nebraska Leslie Coleman, CDBG Administrator213 South 1st Street, Suite DNorfolk, NE 68701(402) 379-3377




discount rate


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NSP financing will have an interest rate range of 0% to 2%.


Duration or term of assistance: The term of assistance will be for the time the homeowner owns and occupies the home acquired through the NSP Purchase/Rehab/Resell program.

Tenure of beneficiaries – homeownership.

A description of how the design of the activity will ensure continued affordability: NeighborWorks® Northeast Nebraska intends to purchase the foreclosed or abandoned properties at a minimum of a 15% discount of the appraised value. Upon ownership NeighborWorks® Northeast Nebraska will coordinate the necessary rehabilitation work to the property and resell it to the income-qualified homebuyer at a 10% discount.

The affordability requirements for the project are affordability requirements for homeownership detailed in Section C. (3) of this plan.

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PROJECT 19 – Dawson Area Development- Demolish blighted structures. Communities have planned and maintained prioritize lists for substandard buildings


(1) Activity Name: The Dawson Demolition Project






Demolition



2. The project benefit to income-qualified persons is demolition of a blighted structure.


The immediate neighborhood and the city/village would benefit by the demolition of an unsafe structure that stands in their way of protecting the health of their residents. The unit has been vacated because of the condition. Cities, and most especially the small villages in our area, cannot afford to demolish these uninhabitable structures. In order to clean up their towns, they must try all other options of ridding the area of the housing

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unit, short of paying for demolition themselves and then trying to recoup the cost from the owner of the property.

This program would allow for cleanup of unsafe housing units in our area and pave the way for the original owner or someone else to redevelop the property and provide safer, healthier, and affordable housing unit(s).


Locations for demolition of housing structures will be in cities of Gothenburg, Cozad, and Lexington; and villages of Miller, Sumner, Eddyville, Overton, Elwood, Eustis, Farnam, and Smithfield. The demolition will be accomplished using all required standards of neighborhoods and/or areas that are eligible. Specifically, number of units targeted in each municipality are as follows: Gothenburg (6), Cozad (8), Lexington (11), Miller (2), Sumner (2), Eddyville (3), Overton (3), Elwood (4), Eustis (3), Farnam (3), Smithfield (3).




Dawson Area Development, with the help of their members, would propose to demolish 48 units of substandard/blighted housing stock over a two-year period. At an approximate cost of $15,000 per property, the total cost would be $720,000.


Dawson Area Development209 W. 8th StreetCozad, NE 69130

PHONE: 308 784-3902

Executive Director: Jennifer Wolf [email protected] Development Coordinator/Administrator : Deb Jensen [email protected]

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discount rate

Project does not include acquisition activities.


Project does not include financing activities.


Project does not include housing activities.

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PROJECT 20 – Village of Wilcox - Demolish a blighted structure in the downtown and redevelop the property for a community center that serves low-moderate-middle income families.


(1) Activity Name: Wilcox Community Redevelopment Project




(a) Acquisition(b) Disposition(c) Public facilities and improvements(d) Clearance, for blighted structures only (i) Relocation



Demolition, Community Center



2. The project benefit to income-qualified persons is access to a community center.


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The proposed project for the Village of Wilcox is to demolish a blighted structure in the downtown area that is a definite health and safety hazard. After the demolition of the building, the Village is planning to construct a senior/community center on the lot which will benefit the entire community that has 76.9% of households at or below 120% AMI. The Village has been trying to rid their main street of the dilapidated structure for several years; however the lack of Village funds has deterred them from completing the demolition. The NSP program will enable them to demolish this structure and redevelop the area so to service the entire community with a place they can gather for senior and community events.


The location of the property to be demolished is 101 South Main Street, Wilcox, NE (Legal Description is Lot 1, Block 1 of Original Town, Wilcox, Nebraska). This would be the same location of the senior/community center construction as well.


One blighted structure will be demolished and redeveloped to serve low- moderate- and middle –income persons needs for a senior/community center.

279 people with incomes at or below 120% AMI will benefit from the senior/community center.


Demolition of Blighted Structure on Main Street $ 30,000Construction of Community Center (including Phase I, architectural Fees, and building costs) $600,000

Total Demolition and Construction $630,0004% Administration $ 25,200

TOTAL PROJECT COSTS WITH ADMINISTRATION $655,200


Miller & Associates, 1111 Central Avenue, Kearney, NE 68847 will be the responsible organization implementing the NSP activities for the Village of Wilcox. Miller &

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Associates has two certified administrators on staff, Candy Kuntz and Jacque Haupt. Candy Kuntz will handle the day-to-day administration of the project. Her contact information is 308/234-6456 (telephone) 308/234-1146 (fax) and [email protected] (e-mail). Candy has been a certified administrator since 2003 and the firm of Miller & Associates is currently completing the administration of the Village of Wilcox’s water system improvement grant project.




discount rate

This project does not include acquisition activities.


The NSP for the community center is a conditional grant with no interest rate.


This project does not include housing or housing related activities.

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PROJECT 21 – Central City - Demolish blighted structures, redevelop vacant demolished properties to housing for low-moderate-middle income families. The community has an established inventory and analysis for dilapidated and substandard houses.


(1) Activity Name: Dilapidated Structure Demolition and Redevelopment




(a) Acquisition(b) Disposition(d) Clearance, for blighted structures only(e) Public services for housing counseling, but only to the extent that counseling beneficiaries are limited to prospective purchasers or tenants of the redeveloped properties(i) Relocation(n) Direct homeownership assistance (for persons whose income does not exceed 120% of median income)






income requirement.


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Demolition



2. The project benefit to income-qualified persons is housing and demolition of blighted structures.


Currently, the City is administering a “free lot program”. This program provides a free lot to persons desiring to build a home in Central City. The City is getting low on lots available for its “free lot program”.

With the acquisition and redevelopment of currently vacant and unsightly structures the City could replenish its inventory of free lots by demolishing and clearing the structures from the lots it acquires. The city would then make empty lots available at no cost to persons interested in using them to build a personal residence on. The lots could also be offered for sale to investors wanting to provide affordable rental property within the City of Central City.

In addition, the Merrick County Development Corporation (MCDC) has a history of home construction and could be the vehicle for developing, reselling, and applying down payment assistance to provide five (5) new, affordable homes to area residents.

Whereas, NSP can not be used for acquisition with only a demolition activity, NSP funds will not be used to acquire lots where redevelopment of the 5 homes will not be built.


Abandoned school property on A street in City of Central City between “E” Avenue and “D” Avenue.

Dilapidated structures currently under review in Central City, Nebraska.


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21 blighted structures will be demolished. 5 will be redeveloped into housing for low-moderate- middle-income households.

5 households with incomes above 80% AMI and below 120% AMI will benefit from the new homebuyer units.


Sources NSP Other funds TotalUsesAcquisition of blighted structures 25,000 100,000 125,000

Demolition and clearance of blighted residential structures

250,000 250,000

Demolition of vacant school, asbestos removal, disposal

50,000 50,000

Down payment assistance 100,000 100,000Relocation 2,500 2,500Housing administration 10,000 10,000Grant administration 12,500 12,500TOTAL $450,000 $100,000 $550,000


Responsible Organization: City of Central City; Central City, NebraskaAdministrator: Chris Anderson, City AdministratorPO Box 418Central City, NE 68826

Phone: 308-946-3806Fax: 308-946-3334Email: [email protected]




discount rate

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NSP financial assistance will be provided as deferred forgiveable loans with no interest.


Duration or term of assistance: Assistance will be provided as a conditional grant, or in the case of homebuyer assistance, deferred forgiveable loan with no interest with an affordability period of at least 5 years. The project is subject to affordability requirements detailed in Section C. (3) of this plan.

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PROJECT 22 – City of Indianola - Demolish a blighted downtown structure and redevelop for a community tornado shelter to serve tenants of public housing built slab on grade and mobile home occupants.


(1) Activity Name: Indianola Community Redevelopment Project




(a) Acquisition(b) Disposition(c) Public facilities and improvements(d) Clearance, for blighted structures only




Homeownership Assistance Infrastructure for housing as part of redevelopment All Units must be occupied by those meeting the low- moderate- and middle-

income requirement.


Demolition Community tornado Shelter (community is approximately 75% LMMI)


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2. The project benefit to income-qualified persons is for safety from inclement weather in a centrally-located tornado shelter.


The proposed project for the City of Indianola is to demolish a blighted structure in the downtown area that is a definite health and safety hazard. After the demolition of the building, the City is planning to construct a tornado shelter for citizens in Indianola who do not have basements. The City of Indianola has HUD housing on the east side of town. The properties are built slab on grade. They also have approximately 15-20 trailer homes on scattered sites throughout the community which do not have any place to go in a tornado. The shelter would serve a void in the City’s Hazard Mitigation plan as research has shown the community needs a place for persons to go for safety during a storm. The project would benefit the entire community of which there are approximately 75% of households at or below 120% AMI. The City has been trying to rid the main street of the dilapidated structure for several years; however the lack of City funds has deterred them from completing the demolition. The NSP program will enable them to demolish this structure and redevelop the area so to service the entire community with a safe place to go during inclement weather.


The location of the property to be demolished is 120 North Main Street, Indianola, NE (Legal Description is All of Lots 3 &4 and the North 8’9” of Lot 5 in Block 33 of Original Town, Indianola, Nebraska). This would be the same location of the storm shelter construction as well.


One blighted structure will be demolished.

One tornado shelter will be constructed benefit 491 income-eligible households.


Demolition of Blighted Structure on Main Street $ 75,000Construction of Storm Shelter (including Phase I, architectural Fees, and construction costs) $100,000

164

Total Demolition and Construction $175,0004% Administration $ 7,000

TOTAL PROJECT COSTS WITH ADMINISTRATION $182,000


Miller & Associates, 1111 Central Avenue, Kearney, NE 68847 will be the responsible organization implementing the NSP activities for the City of Indianola. Miller & Associates has two certified administrators on staff, Candy Kuntz and Jacque Haupt. Candy Kuntz will handle the day-to-day administration of the project. Her contact information is 308/234-6456 (telephone) 308/234-1146 (fax) and [email protected] (e-mail) Candy has been a certified administrator since 2003 and the firm of Miller & Associates is currently completing the administration of the City of Indianola’s joint water system improvement grant project with the communities of Bartley and Cambridge as well as Indianola’s Wastewater project.




discount rate

No acquisition is planned for the project.


NSP financing will be provided as a conditional grant.


No housing activities are planned for the project.

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PROJECT 23 – West Central Nebraska Development District - Demolish blighted structures in communities enforcing nuisance ordinances or building codes.


(1) Activity Name: Regional Demolition Plan






Demolition



2. The project benefit to income-qualified persons by demolishing blighted structures.


Any blighted structure that is to be demolished in the DED CDBG NSP must be located in an identified census block group as provided for by HUD DED (Spreadsheet Attachment A) and the area should be defined by DED as having a likelihood of a higher than average percent of houses that are dilapidated.

166

WCNDD has visited all communities within the District in the past twelve (12) months. And through visual assessment and personal visits with business owners, staff has determined that in many areas throughout the District there is a need for clean-up of old dilapidated structures (including mobile homes) not only in residential areas but in business districts as well.

As a result of a regional Strategic Planning Process in meeting with community leaders and residents in a town hall setting to determine the needs of municipalities as defined by the citizens. In a tally of priorities identified by participating municipalities, community clean-up was the highest priority at 23% of the total activities identified.

Municipalities within the District have determined the need for community clean up and are beginning to access the services of the WCNDD Nuisance Abatement Program. A Nuisance Abatement Ordinance, formulated by Creighton Law College in collaboration with WCNDD, has been made available and adoption will be required by all communities who participate in the NSP program.

In a regional report developed for the Economic Development Administration, the 2008 Comprehensive Economic Development Strategy, clearly shows that over one-half of the homes (59%) in the District were built prior to 1960 and those not receiving any repair and maintenance are showing severe decline. This information is in line with DED’s assumption of targeted areas having a likelihood of a higher than average percent of houses that are dilapidated

Any blighted structure that is to be demolished in the DED CDBG NSP must be located in an identified census block group as provided for by HUD. The area must be defined by DED as having a likelihood of a higher than average percent of houses that are dilapidated.

In order for the process to be fair and equitable to all communities within the District, WCNDD will establish a priority ranking system to determine highest need for demolition, and will collaborate with local units of government in order establish a greater need scale. All of the funds appropriated or otherwise made available under this section shall be used with respect to individuals and families whose income does not exceed 120 percent of the area median income. This plan will also serve an area in which at least 51% of the residents have incomes at or below 120 percent of the area median income (LMMH).


The Regional Demolition Plan will cover a 16,089 sq mile area to include the counties of Grant, Hooker, Thomas, Arthur, McPherson, Logan, Keith, Lincoln, Dawson, Perkins, Chase, Hayes, Frontier, Gosper, Dundy, Hitchcock, Red Willow and Furnas (excluding the City of North Platte).

167


90 blighted structures will be demolished benefitting low- moderate- middle income persons.


Activity BudgetDemolition & Land Fill Costs

$1,040,160

Lead and asbestos abatement

$300,000

0181 General Administration

$55,840

PROJECT TOTAL BUDGET

$1,396,000


Responsible Organization: West Central Nebraska Development District at PO Box 599 Ogallala, NE 69153

Administrator: CJ Poltack, same address, 308-284-6077, [email protected]




discount rate

Project does not include acquisition activities.


168

NSP funds will be provided as conditional grants with no interest rate.


Project does not include housing or housing related activities.

169

GENERAL ADMINISTRATION AND PLANNING COSTS – Nebraska Department of Economic Development – Administration and planning for the State of Nebraska CDBG NSP.


(1) Activity Name: State Administration


NSP Eligible Uses §2301(c) Administration and Planning Costs

CDBG Eligible Activities Administration and planning costs





income requirement.


Demolition, Community Facilities

Serving a limited clientele whose incomes are at or below 120 % of area median income (LMMC).

Public facilities such as emergency shelters, group homes


1. The activity address area of greatest need levels 1-6 referenced in Section A of this plan.

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2. The activity benefit to income-qualified persons is housing, demolition of blighted structures, community facilities, and commercial development to create jobs for low-moderate- middle-income persons..

3. The State administration activity will not be used to meet the low-income housing requirement for those below 50% of area median income.


Location of projects listed in Section G of the plan.


Performance measures listed by project in Section G of the Plan


Source- Neighborhood Stabilization Program

Total

UseGeneral administration costs that can not be attributed to specific project activities

$784,000 $784,000


Responsible organization: Nebraska Department of Economic Development, PO Box 94666, Lincoln, NE 68509

Administrator: Lara Huskey, same address, (402) 471-3759, [email protected]

(9) Projected Start Date: September 29, 2008 Pre-award February 13, 2009

(10) Projected End Date: February 12, 2013


171

discount rate



General administration is not a financing activity.


General administration is not a housing or housing related activity.

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CERTIFICATIONS

(1) Affirmatively furthering fair housing. The jurisdiction will affirmatively further fair housing, which means that it will conduct an analysis to identify impediments to fair housing choice within the jurisdiction, take appropriate actions to overcome the effects of any impediments identified through that analysis, and maintain records reflecting the analysis and actions in this regard.

(2) Anti-lobbying. The jurisdiction will comply with restrictions on lobbying required by 24 CFR part 87, together with disclosure forms, if required by that part.

(3) Authority of Jurisdiction. The jurisdiction possesses the legal authority to carry out the programs for which it is seeking funding, in accordance with applicable HUD regulations and other program requirements.

(4) Consistency with Plan. The housing activities to be undertaken with NSP funds are consistent with its consolidated plan, which means that NSP funds will be used to meet the congressionally identified needs of abandoned and foreclosed homes in the targeted area set forth in the grantee’s substantial amendment. (5) Acquisition and relocation. The jurisdiction will comply with the acquisition and relocation requirements of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended (42 U.S.C. 4601), and implementing regulations at 49 CFR part 24, except as those provisions are modified by the Notice for the NSP program published by HUD.

(6) Section 3. The jurisdiction will comply with section 3 of the Housing and Urban Development Act of 1968 (12 U.S.C. 1701u), and implementing regulations at 24 CFR part 135.

(7) Citizen Participation. The jurisdiction is in full compliance and following a detailed citizen participation plan that satisfies the requirements of Sections 24 CFR 91.105 or 91.115, as modified by NSP requirements.

(8) Following Plan. The jurisdiction is following a current consolidated plan (or Comprehensive Housing Affordability Strategy) that has been approved by HUD.

(9) Use of funds in 18 months. The jurisdiction will comply with Title III of Division B of the Housing and Economic Recovery Act of 2008 by using, as defined in the NSP Notice, all of its grant funds within 18 months of receipt of the grant.

(10) Use NSP funds ≤ 120 of AMI. The jurisdiction will comply with the requirement that all of the NSP funds made available to it will be used with respect to individuals and families whose incomes do not exceed 120 percent of area median income.

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(11) Assessments. The jurisdiction will not attempt to recover any capital costs of public improvements assisted with CDBG funds, including Section 108 loan guaranteed funds, by assessing any amount against properties owned and occupied by persons of low- and moderate-income, including any fee charged or assessment made as a condition of obtaining access to such public improvements. However, if NSP funds are used to pay the proportion of a fee or assessment attributable to the capital costs of public improvements (assisted in part with NSP funds) financed from other revenue sources, an assessment or charge may be made against the property with respect to the public improvements financed by a source other than CDBG funds. In addition, with respect to properties owned and occupied by moderate-income (but not low-income) families, an assessment or charge may be made against the property with respect to the public improvements financed by a source other than NSP funds if the jurisdiction certifies that it lacks NSP or CDBG funds to cover the assessment.

(12) Excessive Force. The jurisdiction certifies that it has adopted and is enforcing: (1) a policy prohibiting the use of excessive force by law enforcement agencies within its jurisdiction against any individuals engaged in non-violent civil rights demonstrations; and (2) a policy of enforcing applicable State and local laws against physically barring entrance to or exit from, a facility or location that is the subject of such non-violent civil rights demonstrations within its jurisdiction.

(13) Compliance with anti-discrimination laws. The NSP grant will be conducted and administered in conformity with title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d), the Fair Housing Act (42 U.S.C. 3601-3619), and implementing regulations.

(14) Compliance with lead-based paint procedures. The activities concerning lead-based paint will comply with the requirements of part 35, subparts A, B, J, K, and R of this title.

(15) Compliance with laws. The jurisdiction will comply with applicable laws.

_________________________________ _____________ Signature/Authorized Official Date

___________________ Title

PLEASE SEE ATTACHMENT FOR SIGNED CERTIFICATIONS AND SF - 424

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NSP Substantial Amendment Checklist

For the purposes of expediting review, HUD asks that applicants submit the following checklist along with the NSP Substantial Amendment and SF-424.

Contents of an NSP Action Plan Substantial AmendmentJurisdiction(s): ____State of Nebraska___________Lead Agency Nebraska Department of Economic DevelopmentJurisdiction Web Address: http://www.neded.org(URL where NSP Substantial Amendment materials are posted)

NSP Contact Person: Lara HuskeyAddress: PO Box 94666 Telephone: 402-471-3759Fax: 402-471-8405Email: [email protected]

The elements in the substantial amendment required for the Neighborhood Stabilization Program are:

A. AREAS OF GREATEST NEEDDoes the submission include summary needs data identifying the geographic areas of greatest need in the grantee’s jurisdiction?

Yes X No . Verification found on pages _2-11____.

B. DISTRIBUTION AND USES OF FUNDSDoes the submission contain a narrative describing how the distribution and uses of the grantee’s NSP funds will meet the requirements of Section 2301(c)(2) of HERA that funds be distributed to the areas of greatest need, including those with the greatest percentage of home foreclosures, with the highest percentage of homes financed by a subprime mortgage related loan, and identified by the grantee as likely to face a significant rise in the rate of home foreclosures?

Yes X No . Verification found on pages ___11-_16_.

Note: The grantee’s narrative must address the three stipulated need categories in the NSP statute, but the grantee may also consider other need categories.

C. DEFINITIONS AND DESCRIPTIONSFor the purposes of the NSP, do the narratives include:

a definition of “blighted structure” in the context of state or local law, Yes X No .Verification found on page _16-18____.

a definition of “affordable rents,”Yes X No . Verification found on page _18-19____.

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a description of how the grantee will ensure continued affordability for NSP assisted housing, Yes X No .Verification found on pages _19-25____.

a description of housing rehabilitation standards that will apply to NSP assisted activities? Yes X No . Verification found on pages __25-39___.

D. LOW INCOME TARGETING Has the grantee described how it will meet the statutory requirement that at least

25% of funds must be used to purchase and redevelop abandoned or foreclosed upon homes or residential properties for housing individuals and families whose incomes do not exceed 50% of area median income?Yes X No . Verification found on page _39____.

Has the grantee identified how the estimated amount of funds appropriated or otherwise made available will be used to purchase and redevelop abandoned or foreclosed upon homes or residential properties for housing individuals or families whose incomes do not exceed 50% of area median income? Yes X No . Verification found on page _39____.

Amount budgeted = $_5,000,000____.

E. ACQUISITIONS & RELOCATION Does grantee plan to demolish or convert any low- and moderate-income dwelling units?

Yes X No . (If no, continue to next heading)Verification found on page __40___.

If so, does the substantial amendment include: The number of low- and moderate-income dwelling units—i.e., ≤ 80% of area

median income—reasonably expected to be demolished or converted as a direct result of NSP-assisted activities?Yes X No . Verification found on page _40____.

The number of NSP affordable housing units made available to low- , moderate-, and middle-income households—i.e., ≤ 120% of area median income—reasonably expected to be produced by activity and income level as provided for in DRGR, by each NSP activity providing such housing (including a proposed time schedule for commencement and completion)?Yes X No . Verification found on page _40____.

The number of dwelling units reasonably expected to be made available for households whose income does not exceed 50 percent of area median income?Yes X No . Verification found on page __40___.

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F. PUBLIC COMMENT PERIODWas the proposed action plan amendment published via the grantee jurisdiction’s usual methods and on the Internet for no less than 15 calendar days of public comment?

Yes X No . Verification found on page __41___.

Is there a summary of citizen comments included in the final amendment? Yes X No Verification found on pages _41-_70___.

G. INFORMATION BY ACTIVITYDoes the submission contain information by activity describing how the grantee will use the funds, identifying:

eligible use of funds under NSP,Yes X No . Verification found on pages _71-173____.

correlated eligible activity under CDBG,Yes X No .Verification found on page __71-173___.

the areas of greatest need addressed by the activity or activities, Yes X No .Verification found on page _71-173____.

expected benefit to income-qualified persons or households or areas, Yes X No .Verification found on page _71-173____.

does the applicant indicate which activities will count toward the statutory requirement that at least 25% of funds must be used to purchase and redevelop abandoned or foreclosed upon homes or residential properties for housing individuals and families whose incomes do not exceed 50% of area median income?Yes X No . Verification found on page _71-173____.

appropriate performance measures for the activity,Yes X No . Verification found on page _71-173____.

amount of funds budgeted for the activity, Yes X No . Verification found on page _71-173____.

the name, location and contact information for the entity that will carry out the activity,

Yes X No . Verification found on page _71-173____.

expected start and end dates of the activity?Yes X No . Verification found on page _71-173____.

If the activity includes acquisition of real property , the discount required for acquisition of foreclosed upon properties,

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If the activity provides financing , the range of interest rates (if any),


If the activity provides housing, duration or term of assistance,


tenure of beneficiaries (e.g., rental or homeownership),Yes X No . Verification found on page _71-173___.

does it ensure continued affordability?Yes X No . Verification found on page _71-173____.

H. CERTIFICATIONS The following certifications are complete and accurate:

(1) Affirmatively furthering fair housing Yes X No(2) Anti-lobbying Yes X No(3) Authority of Jurisdiction Yes X No(4) Consistency with Plan Yes X No(5) Acquisition and relocation Yes X No(6) Section 3 Yes X No(7) Citizen Participation Yes X No(8) Following Plan Yes X No(9) Use of funds in 18 months Yes X No(10) Use NSP funds ≤ 120 of AMI Yes X No(11) No recovery of capital costs thru special assessments Yes X No(12) Excessive Force Yes X No(13) Compliance with anti-discrimination laws Yes X No(14) Compliance with lead-based paint procedures Yes X No(15) Compliance with laws Yes X No

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The Annual Action Plan Substantial Amendmentopportunity.nebraska.gov/files/crd/2008/NSP/FINAL...

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Transcript of The Annual Action Plan Substantial Amendmentopportunity.nebraska.gov/files/crd/2008/NSP/FINAL...