Combination of grants and low-interest loans for developers in Omaha who are constructing affordable housing
OMAHA, Nebraska – Forty million dollars are available to developers interested in constructing affordable housing in Omaha.
Front Porch Investments assists in the distribution of $20 million in municipal money and $20 million in private monies. It is a combination of subsidies and low-interest loans for developers in Omaha who are constructing affordable housing.
Don Curry, executive director of Talented 10th Group, was one of the developers that cooperated with Front Porch in the past.
“Based on Front Porch’s financing model, they’ve set it up to where the rents are enough to finance the mortgage, cover the mortgage, as well as sustain up-keep on the property as well,” Curry said.
This financing from Front Porch will be used to construct housing for Omaha residents earning less than 120 percent of the city’s median income. According to the most recent data from HUD, this equates to around $80,000 per year for an individual or $114,000 for a family of four. And they must earn at least this amount to qualify for these units.
“We’re looking at three bedrooms, two baths, each unit at 1,000 square feet per unit. Calling it affordable just at the mere fact I’m keeping rent at about $1,300 a month,” said Curry.
He will apply for this fresh phase of funds in order to build 20 more apartments similar to the one that will be constructed in September with the first round of cash. This unit will be located close to 16th and Emmet.
The Legacy Builders Program is yet another prospective developer seeking assistance from Front Porch.
“We are working on our rents being right at a $1,000, maybe a little bit below. And then again, we will be helping our renters and our homeowners utilize the other incentives to help their rents and mortgages to be affordable,” said Toni Goins-Brockman, the organization’s chief visionary officer. She hopes to provide affordable housing to rent and buy in North Omaha.
According to the HUD’s criteria, the rents suggested by these two developers qualify as affordable.
“You should not exceed 30%, whether it’s your mortgage or your rent. And that’s 30% of your income,” said Goins-Brockman.
This definition is 30% of your income before taxes. After taxes, rent might still consume more than fifty percent of a family’s income.
These developers have said that they are willing to take vouchers from HOA and HUD to subsidize tenants’ rent.