Community Empowerment Resource Funds (CERF)
Eligibility: Small, rural rental projects ranging in cost from $200,000 to $3,000,000.
Benefits: Utilizes the issuance of taxable bonds (CERF) or tax-exempt bonds (CERFTE) for the development of similar affordable housing development projects for low and moderate income individuals. The Low Income Housing Tax Credit along with several other sources of financing are generally involved. Certain income limits and rent restrictions may apply.
Nature of Program: In rural areas of the state, there exists a shortage of affordable housing. The projects are unfeasible in many cases due to the size of the projects and because the transaction costs on a per-project basis in these areas tend to be higher. This fund will capitalize or otherwise provide for certain resources or guarantees in connections with the execution of the indenture and the issuance of bonds for CERF projects.
Contact:
Randy Archuleta
Nebraska Investment Finance Authority
1230 '0' Street, Suite 200
Lincoln, NE 68508-1402
(402) 434-3900 or (800) 204-6432
Fax: (402) 434-3921
Web Site: www.nifa.org
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Credits To Own (CROWN)
Eligibility: Specific income and purchase price limits or income limits and rent restrictions may apply. Units are targeted at households at or below 60% of area median income.
Benefits: The 15-year rental period allows time for the tenant to participate in homebuyer education, build equity, save enough money for closing costs, and correct credit problems, if applicable.
Nature of Program: The objectives of the CROWN Program are to (l) construct housing that is decent, safe, and permanently affordable for low-income residents; (2) develop strong public/private partnerships to solve housing problems; (3) offer renters a real plan to own a home; and (4) restore unused, vacant, in-fill lots to become a neighborhood asset.
Terms: Tax Credits are used by investors to reduce income tax payments. The money generated from the use of the tax credits is contributed to the project to reduce the amount of money needed to be borrowed for the construction of the home. The tenant leases the home (single family detached) for a period of 15 years at below market rate rent.
Note: This description provides for the eventual sale of the units to the tenant after 15 years. Another CROWN component exists which uses the unit as a platform from which the tenant moves into homeownership through the purchase of another unit after completion of an education process that can take as little as six months depending on the income and credit standing of the tenant/buyer. In both CROWN components, down payment and closing cost assistance may be provided to the tenant/buyer who successfully completes the homebuyer education program.
Contact:
Randy G. Archuleta
Nebraska Investment Finance Authority
1230 '0' Street, Suite 200
Lincoln, NE 68508-1402
(402) 434-3900 or (800) 204-6432
Fax: (402) 434-3921
Web Site: www.nifa.org
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DED Affordable Housing Program - Rental Housing
The Affordable Housing Program (AHP) - Rental Housing category includes the Nebraska Affordable Housing Trust Fund (NAHTF) and HOME program.
State Objectives: The AHP state objectives for using funds in the Housing category provide for investing funds in quality projects and programs for quality communities so that local governments and non-profit organizations can leverage private financing to provide for permanent, energy efficient, affordable housing.
Projects will (1) address housing conditions related to community economic development needs; (2) expand equal housing opportunities; or (3) create public/private partnerships to address housing needs holistically (linking housing with supportive services to promote economic self-sufficiency and family preservation).
Eligibility: The Department of Economic Development (DED) awards funds to local non-profit 501 (c)(3) or 501 (c)(4) housing or related service organizations, local units of government, and Public Housing Authorities.
Nature of Program: Funds will be available for constructing new affordable rental housing; acquisition and rehabilitation of existing rental housing; and lease-purchase programs that lead to homeownership, where the housing unit assisted will remain rental housing (leased) for 36 months or greater.
Application Process: The DED publishes an action plan on an annual basis, which details the method for distributing NAHTF, CDBG, and HOME funds. Application guidelines are developed following citizen comments and approval of the action plan. Funds are awarded on a competitive basis in accordance with the application guidelines and the Annual Action Plan. Please contact the Department for assistance in applying for these funds.
Contact:
Lara Huskey
Housing Coordinator
Department of Economic Development
Community and Rural Development Division
301 Centennial Mall South
Lincoln, NE 68509-4666
(402) 471-3759 or (800) 426-6505
Nebraska Relay Service: (800) 833-7352
Fax: (402) 471-8405
Web Site: http://crd.neded.org
E-mail address:
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Equity Fund of Nebraska, Inc.
Eligibility: Equity Fund of Nebraska, Inc., a non-profit corporation, establishes an annual limited partnership to raise equity dollars from investors classified as 'C' corporations under the Internal Revenue Service Code to invest in affordable rental housing throughout Nebraska. Affordable rental housing developments must be qualified tax credit housing developments that are developed by non-profit organizations or for-profit developments who participate with non-profit organizations. Each development must satisfy certain eligibility standards initially and during a 15-year compliance period.
Benefits: A source of equity dollars for all tax credit developments. Equity dollars can be used for the acquisition, rehabilitation, and new construction of affordable rental housing. These developments will make available affordable housing for a minimum of 30 years.
Nature of Program: (i)to invest in low-income residential rental properties located in the State of Nebraska that qualify for tax credits under Section 42 of the Code and (ii) to develop and implement strategies to maintain such properties to generate a favorable internal rate of return to investors who participate in the Equity Fund of Nebraska, Inc.
Contact:
James K. Rieker
Executive Director
Equity Fund of Nebraska, Inc.
13057 West Center Road, Suite 20
Omaha, NE 68144
(402) 334-8899
Fax: (402) 334-5599
Web Site: www.efnebraska.org
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Fannie Mae's Special Needs/Populations
Fannie Mae is a New York Stock Exchange company and the largest non-bank financial services company in the world. It operates pursuant to a federal charter and is the nation's largest source of financing for home mortgages. Fannie Mae is working to shrink the nation's "homeownership gaps" through a $2 trillion "American Dream Commitment" to increase homeownership rates and serve 18 million targeted American families by the end of the decade.
Eligibility: Fannie Mae works through lender partners and non-profit community development corporations throughout Nebraska to assist families achieve homeownership and affordable rental housing. Eligibility requirements including borrower's credit history, loan-to-value, debt to income ratios, downpayment, and the application process varies by loan product. For a list of lenders in your area who make Fannie Mae loans, please call 1-800-732-6643. For information about Fannie Mae in Nebraska, call the Nebraska Partnership Office at (402) 479-7700.
Special Needs/Population:
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HomeChoice mortgage loans are designed to meet the special underwriting needs of low- and moderate-income borrowers who have disabilities, or have family members with disabilities living with them. The mortgage offers a down payment as low as $500; greater flexibility in qualifying and underwriting standards; and acceptance of nontraditional credit histories. HomeChoice mortgage loans are available through Fannie Mae-approved lenders working in partnership with coalitions - groups or organizations that combine efforts to create homeownership opportunities for people with disabilities. HomeChoice loans are also available through single agencies that have been approved by Fannie Mae and offer home-buying support similar to that offered by coalitions.
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Community Living mortgage loans are designed to provide financing for small, community-based group homes for individuals who are unable to live independently. Community Living mortgage loans differ from traditional single-family mortgages in that qualifying borrowers are not required to be individuals. Borrowers can also be legal entities, including nonprofit and for-profit corporations, limited partnerships, and government agencies serving adults and children with disabilities. The group homes, which can serve any disabled group, provides long-term housing and support services in a home-like setting for a small number of residents, typically three to six persons.
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Native American Conventional Lending Initiative (NACLI) is a $75 million experiment that was renewed for three years in 1999. NACLI is designed to make conventional lending possible for Native Americans on tribal trust lands (other Native American products have been government-insured). We offer conventional loan products on unrestricted fee simple land; federally restricted trust land; and tribally restricted fee simple land. This includes a loan product, available on fee simple or restricted lands, that requires only a 1 percent down payment from the borrower's own resources when additional mortgage insurance coverage is provided. There may be additional loan requirements based on the legal status of the land. NACLI loans can be offered in conjunction with Fannie Mae's Community Lending mortgage products.
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Community Home Performance Power is a zero down payment mortgage for low- to moderate-income purchasers of resource-efficient homes. This mortgage adds the home's projected energy and water savings to the borrower's income in the mortgage qualification process - giving the borrower greater buying power. It requires a 3 percent borrower contribution that may come from the borrower's own funds, gifts, a grant, or other sources.
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Home Keeper for Home Purchase is a variation of Home Keeper that gives seniors who wish to buy a home additional flexibility that is not available through standard first mortgage financing. It allows seniors to purchase a new home without using all of their personal resources to fund the purchase, and without having monthly mortgage payments. It also provides cost and time efficiencies. Only one transaction, rather than two separate transactions, is required to purchase and receive the reverse mortgage financing - reducing the closing costs and origination period.
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HUD's Home Equity Conversion Mortgage (HECM) allows seniors to tap the equity in their homes while giving them the maximum flexibility to address their particular housing needs. The eligibility requirements for this reverse mortgage are similar to those of the Home Keeper mortgage and do not impose any income eligibility limits. The maximum mortgage amount insured by FHA is based upon local FHA loan limits.
Contact:
Steve Peregrine
Fannie Mae Nebraska
Suite 890 Wells Fargo Center
1248 '0' St.
Lincoln, NE 68508
(402) 479-7700
Fax: (402) 479-7710
Web Site: www.fanniemae.com
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Federal Home Loan Bank of Topeka
Affordable Housing Program
Eligibility: Applicants must be members of the Federal Home Loan Bank and must meet the Bank's normal credit criteria if requesting an advance. Objectives: To assist Federal Home Loan Bank of Topeka members in meeting the rising demand for decent, affordable, rental or owner-occupied housing for persons whose incomes do not exceed 80 percent of the area median income. Priorities are as follows:
Affordable Housing Program applications are evaluated according to how well they satisfy the following eligibility requirements:
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The project must pertain to own- or renter-occupied housing in Colorado, Kansas, Nebraska and Oklahoma.
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Reasonable and customary project costs, sources of funds and pro forma projections of operating costs documenting the need for the amount of the AHP subsidy requested must be consistent with AHP standards established by the FHL Bank.
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Applicants must have the ability to draw AHP funds or to secure other funding within 12 months of approval.
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Applicants must make a commitment not to use an AHP subsidy for prepayment of processing fees.
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AHP funds may only be used to pay for homeownership counseling fees for AHP-assisted units.
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AHP funds can only be used for refinancing if the refinancing proceeds are used for AHP-eligible housing.
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Long-term retention of 15-year restrictions for owner-occupied housing for targeted low-income households must be included.
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All applicants must provide a fair housing marketing plan and comply with fair housing laws.
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The AHP request must be less than or equal to $300,000 for each project and must be used for projects in Colorado, Kansas, Nebraska and Oklahoma.
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Project sponsors, nonprofit and for-profit developers must be qualified and able to perform the responsibilities described in the AHP application.
Benefits: Equity Grant
Nature of Program: Funding: Ten percent of the Bank's net income annually starting in 1995. Subsidized advance or direct subsidy grants for pass-through down payments, principal reduction or gap financing. Interest rate advantage or full subsidy must be passed on to final borrower.
Due Date: Semiannual competitions (April 1 and October 1).
Contact:
Christopher Imming
First Vice President
Federal Home Loan Bank of Topeka
2 Townsite Plaza
P.O. Box 176
Topeka, KS 66601-0176
(785) 223-0507
Fax: (785 )234-1765
Web Site: www.fhlbtopeka.com
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Historic Preservation Tax Credit
Eligibility: Eligibility requirements of this program include:
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A certified historic structure (i.e. a building individually listed in the National Register of Historic Places or a building that contributes to a historic district where that district is either listed in the register or locally designated and certified by the National Park Service).
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Certified rehabilitation work of a certified historic structure meeting the Secretary of the Interior's Standards for Rehabilitation.
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A depreciable building (i.e. one used in trade or business or held for the production of income) and not an owner-occupied residence.
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Allowable rehabilitation expenses must be substantial (i.e. they must exceed the greater of: the adjusted basis of the building or $5,000); and
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The rehabilitation must be completed within two years, or five years for a phased project.
Benefits: The tax credit equals 20% of allowable costs for the rehabilitation of historical buildings for commercial, industrial and rental residential purposes or 10% credit for non-residential purposes on non-historic structures built before 1936 which has not been moved since its original construction. The straight-line depreciation period for residential property is 27.5 years; for non-residential property, the straight-line depreciation period is 39 years.
Nature of Program: This program is administered by the National Park Service (U.S. Department of the Interior) under the Tax Reform Act of 1986. Specifically, historic tax credits are available to property owners and long-term lessees where eligible historical structures (defined above) are certified as having received rehabilitation to preserve and enhance their historical character.
Application Process: Property owners should contact and apply to the State Historic Preservation Office. The National Park Service reviews the requests and comments of the State Historic Preservation Office and issues the tax credit certification. Certification denials may be appealed to the U.S. Department of the Interior. Work must be completed before receiving the Certified Rehabilitation Status. Application processing fees are charged by the National Park Service for reviewing the applications. No fee is assessed for projects less than $20,000. Fees range from $500 to $2,500 for more expensive projects depending on the overall cost of the project.
Contact:
Melissa A. Dirr
Nebraska State Historic Preservation Office
Nebraska State Historic Society
P.O. Box 82554
Lincoln, NE 68501
(402) 471-4408
Web Site: www.nebraskahistory.org
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Home Investment Partnerships (HOME)
Eligibility: Federal funds are allocated by formula to participating jurisdictions. Participating jurisdictions in Nebraska are: the Nebraska Department of Economic Development (Division of Community and Rural Development), the City of Omaha and the City of Lincoln.
Nature of Program: Grants to states and local governments to help them develop and support affordable housing for low and very-low income residents. These funds are awarded on a formula basis to states and units of general local government.
Benefits: The purpose of the HOME Program is to expand the supply of decent, safe, sanitary, and affordable housing. Eligible uses of HOME funds are tenant-based rental assistance, assistance to homebuyers, property acquisition, new construction, reconstruction, rehabilitation, and transitional housing. The program serves individuals and families with incomes that fall at or below 80% of the median income for the area. The funds can be used for acquisition, rehabilitation, construction, and rent assistance. Fifteen percent of the allocation by federal rule is reserved for Community Housing Development Organizations (CHDOs). A CHDO is a nonprofit agency organized under state or local law, whose governing board membership and organizational structure reflect accountability to low-income residents. CHDOs must provide decent housing that is affordable to low income persons and have a history of serving the community.
Contacts:
Lara Huskey
Housing Coordinator
Department of Economic Development
Community and Rural Development Division
301 Centennial Mall South
P.O. Box 94666
Lincoln, NE 68509-4666
(402) 471-3759 or (800) 426-6505
Nebraska Relay Service: (800) 833-7352
Fax: (402) 471-8405
Web Site: http://crd.neded.org
Steve Werthmann
City of Lincoln
Department of Urban Development
129 N. Tenth Street, Room 110
Lincoln, NE 68508
(402) 441-7982
Web Site: www.ci.lincoln.ne.us/
Community & Planning Development Division
U.S. Department of Housing and Urban Development
10909 Mill Valley Road
Omaha, NE 68159-3955
(402) 492-3145
Fax: (402) 492-3184
Web Site: www.hud.gov
Mike Saklar
Entitlement Area
City of Omaha Planning Department
1819 Farnam, Suite 1100
Omaha, NE 68183
(402) 444-5170
Web Site: http://www.ci.omaha.ne.us
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Low-Income Housing Tax Credit Program
Eligibility: Developers constructing low-income housing may apply.
Nature of Program: This is a federal incentive program providing housing for low-income tenants through federal tax credits. Allocation of tax credits is administered through the Nebraska Investment Finance Authority (NIFA). Developers receive tax credits based on their proposed housing plan. A low-income housing tax credit is a dollar for dollar reduction or credit against an investor's federal income tax liability on ordinary income (i.e., salaries, wages, business). The credit operates as either a cash payment or as a reduction against the amount of tax owed.
Benefits: To be considered for tax credits, the proposed property must entail new construction, or acquisition with substantial rehabilitation. The minimum requirement necessary to qualify for substantial rehabilitation credits under the program are found in Section 42 (e)(3) of the Internal Revenue Code of 1986.
For a building to be substantially rehabilitated, the expenditures during any 24-month period must be the greater of: (1) 10% of the depreciable basis of the building determined as the first day of the 24-month period; or (2) an average of $3,000 per low income unit.
Qualified new construction and substantial rehabilitation costs earn credits on the eligible basis at a rate of approximately 9% each year for a ten year period (4% if tax exempt bonds or other federal subsidies are used).
To be considered for tax credits, the owner must complete an application and submit it to NIFA. Application dates are generally:
Round 1: late January
Round 2: late March
Round 3: late May
Round 4: (if necessary)
Contact:
Randy Archuleta
Nebraska Investment Finance Authority
1230 '0' Street, Suite 200
Lincoln, NE 68508-1402
(402) 434-3900 or (800) 204-6432
Fax: (402) 434-3921
Web Site: www.nifa.org
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Mortgage Insurance for Nursing Homes and Assisted Living Facilities-Section 232
Eligibility: Applicants may be investors, builders, and private nonprofit corporations or associations. For nursing homes only, applicants may be public agencies that are licensed or regulated by a State to care for convalescents and people who need nursing or intermediate care. A potential applicant must submit a certificate of need from the State agency designated by the Public Health Service Act. (If no State agency exists, an alternative study is required.) No certificate of need is required for a board-and-care home or an assisted-living facility; instead, the applicant needs a statement from the appropriate State agency. The applicant must also provide documents that demonstrate the appropriateness of the property and the qualifications of the lender.
A potential sponsor must have an initial conference with the local U.S. Department of Housing and Urban Development (HUD) Office to determine the preliminary feasibility of the project before a site appraisal and market analysis application can be submitted. The potential sponsor then submits a formal application through a HUD-approved lender to the local HUD Field Office. The Field Office makes the final decision to approve, hold, or reject the project. If the application is rejected, the applicant may reapply.
Benefits: The Section 232 program supports construction and rehabilitation of nursing homes, assisted-living facilities, intermediate-care facilities, and board-and-care homes by providing mortgage insurance.
Through this program, HUD insures mortgage loans
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to build or rehabilitate nursing homes, intermediate-care facilities, board-and-care homes, and assisted-living facilities;
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to enable a borrower to buy or refinance (with or without repairs) projects that do not need substantial rehabilitation; and
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to install fire safety equipment.
The facilities must house 20 or more patients who need skilled nursing care and other medical services or those who need minimal but continuous care from licensed, trained personnel. Board-and-care facilities must have at least five one-bedroom or efficiency units. Nursing home, intermediate-care, and board-and-care services can be combined in one facility or be in separate facilities. The mortgage can include major equipment and day care facilities. Existing projects already insured by HUD are also eligible for purchase or refinancing with or without repairs under Section 232.
The insurance covers the HUD-approved private lender--such as a bank, a mortgage company, or a savings and loan association--against the risk of default on the mortgage. The maximum amount of the loan for new construction and substantial rehabilitation is 90 percent (95 percent for nonprofit borrowers) of the estimated value of the physical improvements and major movable equipment. For existing projects, the maximum is 85 percent (90 percent for nonprofit borrowers) of the estimated value of the physical improvements and major movable equipment. HUD charges
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a mortgage insurance premium of 0.5 percent of the mortgage amount per year;
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combined site appraisal and market analysis application and commitment fees of $3 per $1,000 of the mortgage amount; and
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an inspection fee, which may not exceed $5 per $1,000 of the mortgage amount for new construction and substantial rehabilitation project. (It may not exceed 1 percent of the total cost of repairs for existing project.) The maximum mortgage term is 40 years for new construction and rehabilitation; for existing projects without rehabilitation, it is 35 years.
Any patient who needs skilled nursing care, intermediate care, or board-and-care is eligible to live in the facilities insured under this program.
Nature of Program: The Section 232 program insures mortgages that cover the construction or rehabilitation of nursing homes and assisted-living facilities for people who need long-term care or medical attention. To make it easier for a borrower--which may be public or private, nonprofit or for-profit--to get the mortgage financing for a needed nursing home or supportive-housing facility, HUD insures the mortgage through a HUD-approved lender.
Contact:
Linda Grabowski
U.S. Department of Housing and Urban Development
Omaha Multifamily Program Center
10909 Mill Valley Road
Omaha, NE 68154-3955
(402) 492-3122
Fax: (402) 492-3184
Web Site: www.hud.gov
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Multifamily Mortgages Government National Mortgage Association (Ginnie Mae or GNMA)
Eligibility: The mortgage lender applies to Ginnie Mae for approval to become an issuer of construction and protect loan mortgage-backed securities. The lender must be experienced in multi-family mortgage lending. Pool types include Project Loan Securities, Construction Loan Securities, Small Loan Securities, Mature Loan Maturities, Non-Level Payment Project Loan, and Mark-to-Market Loans. The unpaid balance must be at least $250,000. The FHA-insured mortgage must have a scheduled amortization start of not more than 24 months prior to the date on which the Ginnie Mae guarantee commitment is made except for Mature Loan Securities, which must have been amortizing for at least 24 months. Loan payments may be level or non-level. The lender services the underlying mortgages, and markets and administers the securities.
Nature of Program: Allows lenders to securitize construction and permanent multi-family mortgages. Ginnie Mae guarantees the monthly payment of principal and interest to investors, including prepayments and early recoveries of principal. Eligible uses include: Multifamily construction and permanent mortgages, Lender/issuer-originated FHA insured or co-insured multifamily mortgages, and seasoned FHA insured mortgages purchased from Ginnie Mae at auction.
Issue Type: GNMA I; a minimum certificate size of $25,000.
Maturities: Typically up to 40 years.
Rates: Fixed; .25% to .50% below the rate of the underlying mortgage.
Fees: The servicing fee retained by the issuer and the guarantee fee paid to Ginnie Mae are determined by the spread between the face interest rate on the securities and the mortgage rate. The mortgage guarantee fee paid to Ginnie Mae is .13%.
Contact:
Government National Mortgage Association
451 7th Street, S.W. #6204
Washington D.C. 20410
(202) 708-0926
Web Site: www.ginniemae.gov
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Multifamily Rental Housing for Moderate Income Families--Section 221(d)(3) and 221(d)(4)
Eligibility: For-profit, nonprofit, and limited partnership sponsors of eligible affordable rental projects may apply for FHA mortgage insurance under this program. The project sponsor must make early contact with the HUD State/Field Office Multifamily Housing staff to determine if there is a clear market demand in the area of the proposed housing, if the project will be sound economically, and if project financing is secure. Prospective project sponsors are responsible for finding a HUD-approved lender to make a loan and submit an application for mortgage insurance commitment to the HUD State/Field Office. Project applications are processed in the HUD State Office.
Benefits: Through the 221(d) Market Rate program the Federal Housing Administration (FHA) insures mortgages for the new construction or substantial rehabilitation of multifamily rental properties. Non-profits and cooperative sponsors use Section 221(d)(3); for-profit sponsors use Section 221(d)(4). FHA insures loans originated by private, HUD-approved lenders for multifamily rental and cooperative housing. Low- and moderate-income and displaced households may find housing more easily because of this FHA program.
Nature of Program: The purposes of Section 221(d)(3) and Section 221(d)(4) are basically the same. The programs assist private industry in the construction or rehabilitation of rental and cooperative housing for low- to moderate-income and displaced families by making capital more readily available and by reducing the risk of default for lenders. The programs insure construction and permanent financing loans originated by private, HUD-approved lenders for projects with five or more units of multifamily rental or cooperative housing. Projects may be designed for residents who are elderly (age 62 or older) or have disabilities.
The principal difference between the (d)(3) and (d)(4) programs is the amount of insured mortgage available to different types of sponsors. Under 221(d)(3), a nonprofit sponsor may receive an insured mortgage for the full amount of the HUD/FHA estimated replacement cost of the project. Profit motivated sponsors using Section 221(d)(3) and all types of sponsors under Section 221(d)(4) can receive a maximum mortgage of 90 percent of the HUD/FHA replacement cost estimates.
Contact:
Linda Grabowski
U.S. Department of Housing and Urban Development
Omaha Multifamily Program Center
10909 Mill Valley Road
Omaha, NE 68154-3955
(402) 492-3122
Fax: (402) 492-3184
E-mail:
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Multifamily Rental Housing for Purchase or Refinancing of Existing Multifamily Rental Housing-Section 223(f)
Eligibility: Investors, builders, developers, and owners of eligible multifamily or healthcare properties may apply for these loans through private the U.S. Department of Housing and Urban Development (HUD)-approved lenders. Mortgage insurance applications are submitted by FHA-approved lenders to the local HUD Office. Typical processing time is 60-90 days, with loan closings scheduled between 30 and 60 days after HUD agrees that all critical repairs (those that address safety and health concerns) have been completed. All non-critical repairs must be completed within 12 months of loan closing.
Benefits: Through Section 223(f), HUD provides mortgage insurance for the purchase or refinancing of existing rental housing. Projects refinanced under Section 223(f) may not undergo substantial rehabilitation. These projects may have been financed originally with conventional or the Federal Housing Administration (FHA) insured mortgages. Section 223(f) also applies to existing hospitals, nursing homes, assisted living facilities, board and care homes, and combinations of such facilities.
For refinancing a multifamily project, the principal amount of the new refinanced mortgage will be limited to the lesser of:
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the original principal amount of the existing mortgage, or
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the unpaid balance of the existing insured mortgage. For purchase of a multifamily project the mortgage cannot exceed 85 percent of the HUD/FHA estimate of the value of the project. The term of the mortgage cannot be less than 10 years or more than the lesser of 35 years or 75 percent of the estimated life of the physical improvements. FHA underwriting analysis must determine that there is enough project income to repay the loan, taking into account all necessary project expenses.
This program also benefits tenants and care facility users who are able to find affordable rental housing or care.
Nature of Program: Section 223(f) permits the restructuring of mortgages at lower interest rates to preserve an adequate supply of affordable rental housing and health care facilities. These projects usually cannot otherwise be refinanced without causing excessive rent burdens on the current tenants. The program allows long-term mortgages (up to 35 years) that can be purchased by the Government National Mortgage Association (Ginnie Mae). This eligibility for purchase in the secondary mortgage market improves the availability of loan funds and permits more favorable interest rates.
Rental properties eligible for this mortgage insurance program must be multifamily rentals containing five or more units. Though minor repairs and improvements are permitted, the property must be require major rehabilitation and must be at least 3 years old before a loan application can be filed. The maximum insurance amount on health care facilities is $1 million.
Contact:
Linda Grabowski
U.S. Department of Housing and Urban Development
Omaha Multifamily Program Center
10909 Mill Valley Road
Omaha, NE 68154-3955
(402) 492-3122
Fax: (402) 492-3184
Web Site: www.hud.gov
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Multifamily Rental Housing-Section 207
Eligibility: Builders, developers, and owners who meet the U.S. Department of Housing and Urban Development (HUD) multifamily rental mortgage requirements may apply for insurance under Section 207. Prospective project sponsors or owners must find a HUD-approved lender to make a loan and submit an application for mortgage insurance commitment to the HUD State/Field Office.
Benefits: Section 207 provides mortgage insurance to finance construction or rehabilitation of a broad range of rental housing. Families can find reasonably priced rentals because their building is insured under Section 207.
Nature of Program: The intent of the program is to increase the supply of quality and reasonably priced rental housing for middle-income families. Mortgage insurance reduces the risk for lenders by guaranteeing payment in the event of default, making capital available at lower cost. Section 207 mortgage insurance may be used for new construction, repair or rehabilitation, or manufactured home parks. To be eligible, the properties must consist of five or more units of detached, semi-detached, walkup, or elevator-style rental housing. Generally, a project is eligible for mortgage insurance if the sponsors can demonstrate that there is a definite market demand, that the project is economically self-sufficient, and that project financing is secure.
Current Status: Authorized but not used. New construction and substantial rehabilitation multifamily rental projects are currently insured under Section 221(d)(3) and 221(d)(4) because those programs are more advantageous to the developer and lender.
Contact:
Linda Grabowski
U.S. Department of Housing and Urban Development
Omaha Multifamily Program Center
10909 Mill Valley Road
Omaha, NE 68154-3955
(402) 492-3122
Fax: (402) 492-3184
Web Site: www.hud.gov
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Nebraska Community Development Assistance Act (CDAA)
Eligibility: An applicant must be a village, city, or county government; or a non-profit 501 (c)(3) organization. The area to be served by the project must be designated by the Department of Economic Development (DED) as an area of chronic economic distress.
Eligible Projects:
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Employment training
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Human and medical services
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Physical facility and neighborhood development services
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Recreational and educational activities
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Crime prevention
Benefits: The Nebraska CDAA empowers the DED to distribute a 40 percent state tax credit to businesses, corporations, insurance firms or financial institutions which make eligible contributions of cash, services or materials to approved community betterment projects.
Nature of Program: A non-profit community betterment organization may apply to the DED for up a maximum of $25,000 in state tax credits per project. Upon approval of a project by the DED, the community betterment organization can award a state tax credit to a business, corporation, insurance firm, or financial institution contributing to the project of up to 40 percent of the value of a contribution.
Contact:
Dave Miller
P.O. Box 94666
301 Centennial Mall South
Lincoln, NE 68509-4666
(800)-426-6505 or (402) 471-3775
Nebraska Relay Service: (800) 833-7352
E-mail:
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Web Site: http://crd.neded.org/cdaa.html
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Public Housing Development
Eligibility: This program provides assistance to local public housing agencies (PHAs) in the development and operation of rental housing projects.
Benefits: Aid is given to local public housing agencies to develop and manage housing for low income families.
Nature of Program: Direct aid is provided for project development and operation. HUD provides three kinds of financial assistance: funding for development costs, annual contributions for operating subsidies, and modernization funds. The PHA initiates the project.
Contact:
Joni Hendricks
U.S. Department of Housing and Urban Development
Public Housing Program Center, Nebraska State Office
10909 Mill Valley Road
Omaha, NE 68154-3955
(402) 492-3142
Fax: (402) 492-3136
Web Site: www.hud.gov
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Section 8
Housing Choice Voucher Program
Eligibility: Housing voucher is determined by the public housing agency (PHA) based on the total annual gross income and family size and is limited to U.S. citizens and specified categories of non-citizens who have eligible immigration status. The family's income may not exceed 50% of the median income for the county or metropolitan area in which the family chooses to live. By law, a PHA must provide 75 percent of its vouchers to applicants whose incomes do not exceed 30 percent of the area median income. Median income levels are published by HUD and vary by location.
Benefits: Assists very low-income families, the elderly, and the disabled to afford decent, safe, and sanitary housing in the private market.
Nature of Program: Housing choice vouchers are administered locally by PHAs. The PHAs receive federal funds from the U.S. Department of Housing and Urban Development (HUD) to administer the voucher program. A family that is issued a housing voucher is responsible for finding a suitable housing unit of the family's choice where the owner agrees to rent under the program. This unit may include the family's present residence. Rental units must meet minimum standards of health and safety, as determined by the PHA. A housing subsidy is paid to the landlord directly by the PHA on behalf of the participating family. The family then pays the difference between the actual rent charged by the landlord and the amount subsidized by the program. Under certain circumstances, if authorized by the PHA, a family may use its voucher to purchase a modest home.
Application Process: The PHA will collect information on family income, assets, and family composition. The PHA will verify this information with other local agencies, the employer and bank, and will use the information to determine program eligibility and the amount of the housing assistance payment.
If the PHA determines that the family is eligible, the PHA will put the family on a waiting list, unless it is able to assist immediately. Once the families name is reached on the waiting list, the PHA will issue a housing voucher.
Contact:
Joni Hendricks
U.S. Department of Housing and Urban Development
Public Housing Program Center, Nebraska State Office
10909 Mill Valley Road
Omaha, NE 68154-3955
(402) 492-3142
Fax: (402) 492-5136
Web Site: www.hud.gov
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Section 514 - Farm Labor Housing Loans and
Section 516 - Farm Labor Housing Grants
USDA Rural Development
Eligibility for a Loan:
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Farm owner, family farm partnership or corporation, an association of farmers whose farming operations demonstrate the need for labor housing or a broadly-based non profit organization including an organization of farm workers.
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Be unable to provide the needed financing for the proposed project from their own sources or from conventional sources.
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Intend to use the housing for labor to be used in farming operations.
Eligibility for a Grant: Applicant must be a broad based non-profit organization, a non-profit organization of farm workers, Indian Tribe, or an agency of a state or local government.
Benefits: To provide housing and related facilities for domestic farm laborers. This program can be utilized in communities of any size.
Nature of Program: Conditions under which a grant may be made:
Interest Rate: 1%, under most circumstances.
Term of Loan: 33 years.
Contact Point: USDA, Rural Development and Area or Sub-Area Officer. Current locations are in Norfolk, Omaha, Beatrice, Kearney, and North Platte.
Web Site: www.rurdev.usda.gov
(Also, see Section 514 - Farm Labor Housing Loans and Section 516 - Farm Labor Housing Grants in the Equity Grant Section)
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Section 515 Rural Rental Housing Program
USDA Rural Development
Eligibility:
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Loans can be made to an individual or organization property formed under State Statues (example, Housing Authorities, Non-Profit Organizations, Corporations, Limited Partnerships, etc.).
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Loans can be made in communities of 20,000 people or less; however, the communities of Norfolk and Columbus, as well as the Scottsbluff, Gering, and Terrytown area, are included as eligible areas for assistance.
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A notice of funding availability (NOFA) will be published on an annual basis which will list the eligible communities from which applications will be accepted.
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The applicant must be unable to provide the needed financing for the proposed project from their own resources or from conventional sources.
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The applicant must be able to provide acceptable management for the proposed project. There must be a need for the type of proposed project in the community.
Benefits: Provide economically designed and constructed rental housing and selected facilities for very-low, low and moderate income eligible households in rural areas.
Nature of Program: The maximum loan amount:
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Not for profit organization - the lesser of 100% of development cost or the appraised value.
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All others - If tax credits are involved, 95% of the lesser of: 100% of Development cost, or the Appraised value If tax credits are not involved, 97% of the lesser of the development cost or appraised value.
Interest Rate: Full note rate is presently 6.875% and is a fixed rate. Interest rates will generally change quarterly.
Term of Loan: The payment period will not exceed 30 years from the date of the note; however, if necessary to ensure affordability, the loan may be amortized for a period not to exceed 50 years.
Contact: USDA, Rural Development Area and Sub-Area Offices. Current locations are in Beatrice, Kearney, McCook, Norfolk, Omaha, North Platte, and Scottsbluff.
Web Site: www.rurdev.usda.gov
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Supplemental Loans for Multifamily Projects-Section 241(a)
Eligibility: Owners of multifamily rental projects, group practice facilities, hospitals, or nursing homes already subject to a mortgage insured or held by the U.S. Department of Housing and Urban Development (HUD) may apply for a loan through a HUD-approved lender. Owners first meet with the local HUD Office staff. The office determines preliminary feasibility of making the proposed improvements before a formal application is submitted. The owner then submits a formal application through a HUD-approved lender. If the project meets program requirements, the local HUD Office issues a commitment to the lender to insure the mortgage.
Benefits: Section 241(a) insures loans to finance repairs, additions, and improvements to multifamily rental housing and health care facilities. The Federal Housing Administration (FHA) insures lenders against the risk of default on second mortgage financing. Persons who live in the projects and the owners benefit from the improvements and extended life made possible by the loans insured through this program.
Nature of Program: HUD insures loans made by private lending institutions to pay for improvements or additions to apartment projects, nursing homes, hospitals, or group practice facilities that already carry HUD-insured or HUD-held mortgages. The program is intended to keep the project competitive, extend its economic life, and provide for financing replacement of obsolete equipment. Availability of mortgage insurance makes capital more available because it reduces the risk of default.
Loans insured under Section 241(a) may finance either:
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additions and improvements of multifamily housing projects, nursing homes, hospitals, and group practice facilities already subject to HUD/FHA insured mortgages, or
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energy conservation improvements.
For nursing homes, hospitals, or group practice facilities, the loans may also be used to purchase equipment to be used in the operation of the facility. The amount of the loan may not exceed 90 percent of the estimated value of the improvements, additions, or equipment.
Contact:
Linda Grabowski
U.S. Department of Housing and Urban Development
Omaha Multifamily Program Center
10909 Mill Valley Road
Omaha, NE 68154-3955
(402) 492-3122
Fax: (402) 492-3184
Web Site: www.hud.gov
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Supportive Housing for the Elderly Program--Section 202
Eligibility: To be eligible for funding under Section 202 the applicant must be a private, nonprofit organization with prior experience in housing or related social service activities. As a minimum capital investment, the owner must deposit in a special escrow account 0.5 percent of the U.S. Department of Housing and Urban Development (HUD)-approved capital advance, up to a maximum of $25,000 for national sponsors or $10,000 for other sponsors. Government entities are not eligible for funding under this program. Criteria for allocation of program funding include the number of elderly rental households served, the number of very low-income elderly renters in the area, and the number of very low-income elderly renters with housing problems who pay more than 30 percent of their incomes for rent.
Applicants must submit an application for a capital advance, including a Request for Fund Reservation (HUD Form 92015-CA) and other information in response to the Notice of Fund Availability (NOFA) published in the Federal Register each fiscal year. Organizations that apply for Section 202 compete for program funds allocated to each individual HUD Field Office. Awards are usually announced in September.
Benefits: Section 202 provides capital advances to finance the construction and rehabilitation of structures that will serve as supportive housing for very low-income elderly persons and provides rent subsidies for the projects to help make them affordable. This program provides capital advances to finance property acquisition, site improvement, conversion, demolition, relocation, and other expenses associated with supportive housing for the elderly. The capital advance does not have to be repaid as long as the project serves very low-income elderly persons for 40 years.
Project Rental Assistance is used to cover the difference between the HUD-approved operating cost per unit and the tenant's rent. Project Rental Assistance contract payments can be approved up to 5 years. However, contracts are renewable based on the availability of funds. Construction on projects must start within 18 months of the date of fund reservation, with limited exceptions up to 24 months. Funds are advanced on a monthly basis during construction. The program benefits any low-income residents age 62 years and older.
Nature of Program: This program helps expand the supply of affordable housing with supportive services for the elderly. It provides low-income elderly with options that allow them to live independently but in an environment that provides support activities such as cleaning, cooking, transportation, etc.
Contact:
Linda Grabowski
U.S. Department of Housing and Urban Development
Omaha Multifamily Program Center
10909 Mill Valley Road
Omaha, NE 68154-3955
(402) 492-3122
Fax: (402) 492-3184
Web Site: www.hud.gov
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Supportive Housing for Persons with Disabilities-Section 811
Eligibility: Nonprofit organizations can apply to develop a Section 811 project if they can submit financial statements to the U.S. Department of Housing and Urban Development (HUD) that demonstrate their ability to provide a minimum capital investment equal to 0.5 percent of the capital advance amount, up to a maximum of $10,000. Owners must maintain complete records and submit an annual financial statement to HUD, which also has the right to audit the records for compliance with HUD regulations. Any change of ownership during the 40-year period must be approved by HUD. The available program funds for a fiscal year are allocated according to factors that include the number of persons age 16 years or older with a work disability and those without a work disability.
A Notice of Fund Availability (NOFA) is published in the Federal Register each fiscal year announcing the allocation of Section 811 funds to HUD Field Offices. For a schedule of NOFAs, see the HUD homepage (www.hud.gov). An applicant must respond to this notice (or to a notice from the local Field Office) by submitting a Request for Fund Reservation (HUD Form 92016-CA). A State agency also reviews the supportive services plan (see above). Those selected for funding must meet basic program requirements, including nonprofit status, financial commitment, and experience in housing or related service activities.
Benefits: The Section 811 program provides grants to nonprofit organizations to develop and construct or rehabilitate rental housing with supportive services for very low-income persons with disabilities. The Section 811 program grants interest-free capital advances for nonprofit sponsors to help them finance the development of rental housing with supportive services for persons with disabilities. The capital advance can finance the construction or rehabilitation of supportive housing. The advance is interest free and does not have to be repaid as long as the housing remains available for very low-income persons with disabilities for at least 40 years.
The program also provides project rental assistance; this covers the difference between the HUD-approved operating cost per unit and the amount the resident pays--usually 30 percent of adjusted income. A rental assistance contract can last up to 20 years and can be renewed if funds are available.
Each project must have a supportive services plan. The appropriate State or local agency reviews a potential sponsor's application to determine if the plan is well designed to meet the needs of persons with disabilities. Services may vary with the target population but could include items such as 24-hour staffing, in-unit call buttons, and planned activities.
The Section 811 program houses very low-income persons between the ages of 18 and 62 who have disabilities, including persons with physical or developmental disabilities or chronic mental illness and disabled families. The term "disabled family" may include two or more persons with disabilities living together, and one or more persons with disabilities living with one or more live-in aides. A disabled family may also include an elderly person with a disability.
Nature of Program: The Section 811 program allows persons with disabilities to live independently by increasing the supply of rental housing with supportive services and related facilities. The program also allows the sponsor to get project rental assistance, which can cover any part of the HUD-approved operating costs of the facility that is not met from project income. The program is similar to Supportive Housing for the Elderly (Section 202).
The Section 811 capital advances help nonprofit sponsors finance the development of rental housing with supportive services for persons with disabilities. The capital advance can finance the construction or rehabilitation of supportive housing.
Contact:
Linda Grabowski
U.S. Department of Housing and Urban Development
Omaha Multifamily Program Center
10909 Mill Valley Road
Omaha, NE 68154-3955
(402) 492-3122
Fax: (402) 492-3184
Web Site: www.hud.gov/
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Tax Exempt Bond Financing Program for Multi-Family Projects
Summary: This program issues tax-exempt bonds for the construction of multi-family housing for low and moderate-income tenants.
Eligibility: Any developer wanting to construct or rehabilitate existing multi-family housing for low and moderate-income individuals may apply.
Contacts:
Steve Clements, Chief Operating Officer
and Randy Archuleta, LiHTC Administrator
Nebraska Investment Finance Authority
1230 '0' Street, Suite 200
Lincoln, NE 68508-1402
(402) 434-3900 or (800) 204-6432
Fax: (402) 434-3921
Web Site: www.nifa.org
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Housing Development 
