The Nebraska Department of Economic Development (DED) has announced five projects selected to receive a total of $10 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.
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 first of the state’s CDBG-DR funding.
The funding also leverages 2022 Low-Income Housing Tax Credits through the Nebraska Investment Finance Authority (NIFA), awarded at the 4% and 9% levels. The upcoming 2023 CDBG-DR application period will similarly leverage NIFA LIHTC funding, with pre-applications due July 20.
This $10 million in awards will ultimately support the development of 231 affordable housing units in Douglas and Dodge Counties, including the cities of Fremont and Omaha, 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.
“Our Department is privileged to work alongside our NIFA partners in distributing funding made available through HUD, which will have a tremendous impact on the ongoing recovery and resilience of our flood-affected communities,” said DED Director Anthony L. Goins.
Pre-applications for the CDBG-DR Infrastructure Match Program are currently under review, with awards anticipated to be announced this year.
The recipient projects and awards are listed below. For more information on the CDBG-DR program, visit https://opportunity.nebraska.gov/programs/community/cdbg-dr/.
Community Development Block Grant – Disaster Recovery Affordable Housing Construction Program, Recipient Projects and Low-Income Housing Tax Credit (LIHTC) Recommendations for the 2022 Funding Year
- Kennedy Square East/Brinshore Development, LLC: $2 million award; 4% LIHTC; 63 new construction rental units in Omaha.
- 180 Drexel/Foundations Development, LLC: $2 million award; 9% LIHTC; 50 new construction rental units in Omaha.
- 132 Sahler/Foundations Development, LLC: $2 million award; 9% LIHTC; 50 new construction rental units in Omaha.
- Fremont Northside Townhomes II/Mesner Development award: $2 million; 9% LIHTC; 27 new construction rental units in Fremont.
- Highlander Phase V/Brinshore Development, LLC: $2 million award; 9% LIHTC; 41 new construction rental units in Omaha.