Developers apply for loans, grants

OMAHA, Neb. (WOWT) – For developers looking to build affordable housing in Omaha, $40 million is up for grabs.

Front Porch Investments is helping distribute $20 million in municipal funds and $20 million in private funds. It’s a mix of grants and low-interest loans given to developers who build affordable housing in Omaha.

One of the developers who previously partnered with Front Porch is Don Curry, executive director of Talented 10th Group.

“Based on the Front Porch financing model, they’ve put it in place where the rents are enough to fund the mortgage, cover the mortgage, as well as maintain the upkeep of the property,” Curry said. .

This funding from Front Porch aims to create housing for people earning less than 120% of the median income in Omaha. According to the latest HUD figures, that’s about $80,000 a year for one person or about $114,000 for a family of four. And they have to earn that much or less to qualify for those units.

Omaha AMI(HUD)

“We are looking at three bedrooms, two bathrooms, each unit at 1,000 square feet per unit. Calling it affordable just for the simple fact that I keep the rent around $1,300 a month,” Curry said.

It will request this new funding cycle to create 20 additional units like that of the first funding cycle which will begin in September. This triplex unit will be located near 16th and Emmet.

Another potential developer seeking funding from Front Porch is the Legacy Builders program.

“We are working on our rents just at $1,000, maybe a little below. And again, we will help our tenants and landlords use the other incentives to make their rents and mortgages affordable,” said Toni Goins-Brockman, visionary director of the organization. She hopes to provide affordable housing to rent and buy in North Omaha.

The rents offered by these two developers would be considered affordable, according to HUD’s definition.

“You must not exceed 30%, whether it is your mortgage or your rent. And that’s 30% of your income,” Goins-Brockman said.

This definition is 30% of your pre-tax income. After taxes, rent could still eat up more than 50% of a family’s income.

These developers say they would accept vouchers from HOA and HUD to subsidize people’s rent.

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