Receives $500,000 CDBG and NAHTF funding for Phase II
LINCOLN, NEB. —The Nebraska Department of Economic Development (DED) has announced that Columbus, Neb., will be building a “New Neighborhood”.
As part of DED’s “New Neighborhoods” Initiative, Columbus completed its initial planning phase and is receiving $315,000 in Community Development Block Grant (CDBG) funding and $185,000 in Nebraska Affordable Housing Trust Fund (NAHTF) funding to implement its New Neighborhoods Project. The CDBG funds will be used for infrastructure and site improvements while the NAHTF will be allotted as follows: $99,000 for direct homebuyer assistance; $11,000 for a housing study; $56,250 for housing management; and $18,750 for general administration.
“The goal of the New Neighborhoods Initiative is to develop a model for communities lacking all necessary components to meet the demand for workforce housing, which in turn, stalls business recruitment and expansion efforts,” Governor Dave Heineman said. “This unique Initiative assists communities needing housing to retain existing and recruit new employees to meet the needs of area businesses.”
The NAHTF and CDBG funds will go toward developing15 acres of land at the intersection of 19th St. and 48th Ave. in Columbus. The tract will be subdivided into 43 single-family lots on which new homes will be constructed starting this summer—22 homes will be reserved for low- and moderate-income households. Part of the NAHTF award will be combined with funds from NeighborWorks Northeast Nebraska, Northeast Nebraska Economic Development District, and the Federal Home Loan Bank of Topeka and help subsidize the cost of homes through down payment assistance in the form of loans.
DED’s “New Neighborhoods” Initiative includes planning, community development, and housing components. Projects may be multi-phased and span several years. Of 17 applicant communities, Columbus, Holdrege and Sidney were selected last year for new planned unit development subdivisions, including mixed income housing and mixed uses (such as commercial development). 
CDBG funds are awarded from the state’s annual allocation from the U.S. Department of Housing and Urban Development. NAHTF is a state financial resource developed in 1996 to increase the supply and improve the quality of affordable housing in Nebraska.

CONTACT
Patty Wood, DED, 402-471-1559