LINCOLN, NEB (November 13, 2006) – Communities, Housing Organizations, and Economic Development Corporations can apply for $2.5 million in funding through the 2007 Flexible Investment Targeting (FIT) application cycle, which begins December 20. The funding is awarded through the Nebraska Affordable Housing Trust Fund (NAHTF).

Development projects qualifying within the FIT guidelines will receive priority. These projects must be innovative in physical design, financing, or program delivery, highly leveraged and/or models that can be replicated in other areas of Nebraska. Funding is designed to help those NAHTF-eligible applicants that may not qualify through the regular 2007 application process, or for program or regional set-asides. A pre-application form will be posted on the Nebraska Department of Economic Development website by December 20.

The Department will invest $1.5 million of the $2.5 million FIT NAHTF financing in four projects led by local Economic Development Corporations to recruit and retain local workforces through new planned unit development subdivisions. The developments will include mixed-income housing, and may be mixed-use. The Nebraska Department of Economic Development (DED) Director’s “New Neighborhoods” Initiative is intended to provide a model for addressing all types of housing shortages in four Nebraska communities that are experiencing significant workforce shortages, including professionals and other skilled workers. The NAHTF funds will be leveraged with an additional $500,000 from DED’s Community Development Block Grant (CDBG) revolving loan fund.

"This new initiative is designed to meet the increasing housing demand for our workers in growing communities across the State," said Governor Dave Heineman. "Housing is an important issue and in high demand, especially when recruiting and retaining workers."

The Department will seek input from the Nebraska Commission on Housing and Homelessness (NCHH), the NAHTF Advisory Committee and the CDBG Advisory Committee on the initiative. In addition, comments will be accepted from the public on the “New Neighborhoods” Initiative through December 15, in conjunction with the 2007 Housing and Community Development Annual Action Plan public comment period. Comments should be directed to DED Action Plan Coordinator, Libby Elder at: This e-mail address is being protected from spam bots, you need JavaScript enabled to view it .

Once the decision is made to move forward with Nebraska’s “New Neighborhoods” Initiative, pre-applications will need to be submitted to the Department between December 20, 2006 (when the forms are available) and January 22, 2007. The Department plans to accelerate the project selection and implementation process to begin construction on the four demonstration projects during the summer of 2007.

Other FIT pre-applications are due on or after January 22, 2007, and projects will be selected on a first-ready, first served basis. $120,000 of the remaining $1 million FIT NAHTF resources will be reserved for non-profits providing technical assistance to developers and communities to increase their capacity to produce affordable housing.

FOR INFORMATION, CONTACT:

Nebraska’s “New Neighborhoods” Initiative—Lara Huskey at 800-426-6505, or 402-471-3759

Flexible Investment Targeting other projects—Lorenzo Claxton at 800-426-6505, or 402-471-4169

Individuals who are hearing and/or speech impaired and have a TDD, may contact the department through the Statewide Relay System by calling one of the following numbers:
711, (800) 833- 7352 (TDD), or (800) 833-0920 (voice).
The relay operator should be asked to call DED at (800) 426-6505, or (402) 471-3111.