State money being used for more affordable housing in Lincoln

"Strengthening Lincoln neighborhoods."

LINCOLN, Neb. (KLKN)- On Thursday, Lincolns Mayor announced the creation of $6 million in revolving loan funds to support more affordable housing in our city.  Some of the money is already being put to good use.  NeighborWorks Lincoln is one of three area non-profits receiving $2 million each to revitalize and build new affordable homes.

“This program will allow us to work with a broader array of middle-class households that are also being left behind in the current housing market. Specifically, we will deploy our new working capital to re-invest in some of the Lincolns most down and trodden homes via an acquisition rehab program that will bring them back to life as beloved middle-class family houses,” said Wayne Mortensen Executive Director of NeighborWorks Lincoln.

$10 million in total is being dispersed throughout the state, and Lincoln received $3 million from that.  The other $3 million was matched by the Nebraska Investment Finance Authority and many other funding partners.

“The creation of the loan funds was made possible by the Nebraska Legislatures’ passage of LB866 a $10 million matching funds program for urban communities,” said Lincoln Mayor Leirion Gaylor Baird.

NeighborWorks Lincoln is taking eyesores in our neighborhoods, and turning them into desirable homes.

“A lack of workforce housing affects the ability of neighborhoods to maintain and develop viable stable and thriving economies. A shortage of quality housing in such areas also impacts the ability of employers to grow and prosper,” said Steve Peregrine Executive Director of Nebraska Housing Resources.

The goal is to gain homeowners, so the funds will not be used for apartment complexes.

“Cluster development, new development units are also being planned by our construction and design teams. The remaining funds will be made available to other Lincoln housing developers and for down payment assistance, which will help lower the threshold for homeownership for middle-income families across Lincoln,” said Mortensen.

This funding and community effort will help the city reach the mayor’s goal of 5,000 new or rehabilitated affordable homes by 2030.