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Revolving Loan Funds Created to Support Affordable Housing In Lincoln

LINCOLN–(News Release Dec. 9)–Mayor Leirion Gaylor Baird joined the Nebraska Investment Finance Authority (NIFA), other funding partners, and local nonprofits today to announce the creation of $6 million in revolving loan funds to support more affordable housing in Lincoln. Three Lincoln nonprofits – NeighborWorks, Nebraska Housing Resources, and the South of Downtown Community Development Organization (SDCDO) – will each receive $2 million to create loan funds to develop, build, or rehabilitate home ownership units.

The creation of the loan funds was made possible by the Nebraska Legislature’s passage of a LB866, a $10 million matching grant program for urban communities. The three local nonprofits are each receiving a $1 million grant from the Nebraska Department of Economic Development through that program.

The $3 million in state funds is partially matched by $2 million received from NIFA. The other $1 million in matching funds came from grants the Lincoln Community Foundation (LCF) raised from Abel Foundation, Ameritas Foundation, Assurity, Harbor of Dreams, Lienemann Foundation, LCF, Nebraska Housing Resources, NeighborWorks Lincoln, Nelnet, Olsson, and Sherwood Foundation.

“This is another great community effort that will help us achieve our goal to create 5,000 new or rehabilitated affordable Lincoln housing units by 2030,” said Mayor Gaylor Baird. “The real beauty of this effort is that this $6 million is a self-replenishing pool of money. Because the interest and principal payments on the loans will be used to issue new loans, this initiative will continue to build our affordable housing stock far into the future.”

“The City of Lincoln and the many stakeholders who came together to earn today’s achievement deserve our applause,” said Tony Goins, Director of the Nebraska Department of Economic Development. “Building diverse, welcoming neighborhoods is a crucial part of economic development that requires nothing less than determination, collaboration, and strong leadership. These funding recipients and their contributing partners have shown a commitment to using State resources both efficiently and effectively to build an even better Lincoln and create a stronger foundation to grow Nebraska.”

The three nonprofits receiving the grant funds share similar goals.

NeighborWorks Lincoln was founded to combat economic inequities in neighborhoods, build healthy communities, and support first time homeownership. “Household and familial stability are the building blocks of thriving neighborhoods,” said Executive Director Wayne Mortensen. “We are excited about the potential of these funds to help expand the pool of residents that we serve. This work will further empower Lincoln’s neighborhoods to be more resilient and inclusive places for all of our neighbors.”

The South of Downtown Community Development Organization works to improve the quality of life and provide equitable opportunities for residents in the Near South and Everett neighborhoods. “It has been a pleasure to be a part of this innovative collaboration that has the potential to enhance homeownership opportunities across our communities including our more established neighborhoods,” said Executive Director Shawn Ryba.

Nebraska Housing Resources provides affordable housing opportunities by developing and procuring lots, arranging attractive financing packages for qualified first-time home buyers, and encouraging homebuilders to enter and expand this market. “Housing choices are a critical component of a community’s economic development effort while more home ownership strengthens neighborhoods,” said Executive Director Steve Peregrine. “The Unicameral created a program and provided funding to address both and that is an outstanding recognition of the link between meeting housing needs and creating jobs.”

The City of Lincoln Affordable Housing Coordinated Action Plan is available at urban.lincoln.ne.gov.



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