Nebraska Department of Economic Development Announces Community Development Block Grant – Disaster Recovery and Nebraska Investment Finance Authority’s Low-Income Housing Tax Credit Recommendations for 2022 Funding Year (NIFA 2023 QAP)

The Nebraska Department of Economic Development (DED) has announced five projects selected to receive a total of $8 million in funding, or $2 million each, through the Community Development Block Grant- Disaster Recovery (CDBG-DR) Affordable Housing Construction program for the 2022 Funding Year (NIFA 2023 QAP).

The funds, awarded through the Affordable Housing Construction program, will support quality, affordable housing development in communities impacted by the March 2019 flooding events. The State distribution of federal and state aid has been ongoing since these events occurred. These awards are the second of the state’s CDBG-DR funding and follow five others for similar projects announced in July.

The funding also leverages 2023 Low-Income Housing Tax Credits (LIHTC) through the Nebraska Investment Finance Authority (NIFA), awarded at the 9% levels. The upcoming 2023 LIHTC 4% application period will similarly leverage CDBG-DR funds, with pre-applications due December 2.

This $8 million in awards will ultimately support the development of 159 affordable housing units in Dodge, Douglas and Sarpy Counties, including the cities of Fremont, Omaha and Bellevue all benefitting households of low-to-moderate income.

CDBG-DR funding was allocated to Nebraska by the U.S. Department of Housing and Urban Development (HUD) in the wake of the 2019 Bomb Cyclone. DED, in coordination with NIFA and HUD, quickly developed an action plan for the implementation of these funds. Desired outcomes included the redevelopment and revitalization of affordable housing stock in flood-affected areas. HUD has identified

Sarpy, Dodge and Douglas counties as the “most impacted and distressed” from DR-4420. Per HUD requirements, 80% of CDBG-DR funding must benefit the HUD defined MID areas (Sarpy, Dodge and Douglas counties), and 70% of Nebraska’s total allocation must be directed to low-and moderate-income persons. All investments of CDBG-DR funding must be tied to DR-4420.

The awards are just the latest use of funding to support the state’s economic and physical recovery and disaster resiliency since the 2019 disaster declaration.

Pre-applications for the CDBG-DR Infrastructure Match Program are currently under review, with awards anticipated to be announced this year. DED established the Match Program to support local jurisdictions with their matching requirements for approved FEMA Public Assistance and Hazard Mitigation Grant Program projects.

The Homeownership Production Program (HPP), a subprogram of the Affordable Housing Construction Program, will hold pre-application information sessions in Q1 of 2023. Eligible activities under HPP include new construction for affordable single-family housing.

The recipient projects and awards are listed below. For more information on the CDBG-DR program, visit https://opportunity.nebraska.gov/cdbgdr/.

Community Development Block Grant – Disaster Recovery Affordable Housing Construction Program, Recipient Projects and 9% Low-Income Housing Tax Credit (LIHTC) Recommendations for the 2022 Funding Year (NIFA 2023 QAP)