Northeast Economic Development Inc (NED, Inc) will be submitting application to the Nebraska Department of Economic Development for a Nebraska Affordable Housing Trust Fund (NAHTF) award. This funding is available for local affordable housing activities.
The grant information is detailed below and on our website www.nenedd.org. Due to Covid-19, and to maintain the top priority of the health and safety of the public, a public hearing will not be held. However, all interested parties have the opportunity to be heard and are invited to provide written testimony regarding the grant application. Written testimony will be accepted on or before 4:00 PM on May 11, 2020 at the Northeast Nebraska Economic Development District, 111 South 1st Street, Norfolk, NE 68701 or by emailing Tina Engelbart, NENEDD Deputy Director at email@example.com.
Northeast Economic Development, Inc. (NED, Inc.) is requesting $288,000 from the Nebraska Affordable Housing Trust Fund of which $240,000 will be used for acquisition of eight single family housing units through the direct homebuyer assistance (DHA) activity in the NED, Inc. region; $28,800 will be utilized for housing management costs and $19,200 will be utilized for general administration of the grant. NED, Inc. will provide a total of $72,000 in matching funds of which $60,000 will be utilized for acquisition of two single family housing units through the DHA activity in the NED, Inc. region; $7,200 for housing management; $4,800 for general administration of the grant. The total project cost is estimated to be $360,000.
The programs will serve low to moderate income households in the NED, Inc. Region which consist of Antelope, Boone, Burt, Cedar, Colfax, Cuming, Dixon, Dodge, Knox, Madison, Nance, Pierce, Platte, Stanton, Thurston and Wayne counties. All NAHTF funds will benefit low-to-moderate income households.
The DHA Program loan shall consist of a 0% deferred interest loan due and payable upon transfer of title. The program will be used to assist homebuyers in financing the acquisition of an existing or newly constructed home and will serve homebuyers that are at or below 120% of the area median income for county in which they receive the assistance.
The intent of the DHA program is to be used as a 0% interest, subordinate loan for part of the total project cost. All applicants will be required to secure a single-family mortgage loan from a lender of their choice to purchase a single-family housing unit. Applicants will need a pre-qualification letter and Loan Estimate Statement from the primary lender prior to applying for Homebuyer Financing. The primary lender and its underwriting criteria determine the basis for the Homebuyer Financing. The amount of the Homebuyer Financing will be determined at the time of application and will not exceed 20% of the total project cost of the housing unit and will be no more than $30,000 whichever is less for either an existing or newly constructed single-family housing unit. The loan will be used toward the purchase of one housing unit and associated closing costs. The applicants will provide $1,000 of their own funds to cover a portion of the required closing fees and prepaid escrow accounts, NED, Inc. will provide direct homebuyer assistance through the grant, and the lenders will provide the mortgage loans. NED, Inc. will charge a $500 closing fee which can be applied toward the $1,000 requirement. The primary lender will order the appraisal of the property.
The timeline to complete the NAHTF program tasks is as follows:
Submission of Nebraska Affordable Trust Fund Application
NED, Inc. will receive Notice of Award from NDED
NED, Inc. will execute contracts with NDED and the Northeast Nebraska Economic Development District (NENEDD) for general administration
NENEDD will prepare special conditions documents for Release of Funds
NED, Inc. will receive Release of Funds/Environmental Clearance
to May 2022
Applications will be accepted and processed for DHA. Properties inspected and approved. NENEDD will conduct Tier II reviews as properties are identified. Ten approved applicants will purchase homes through the DHA program. Projects will be completed before the end of contract date and ten LMI families will benefit from DHA in the NED, Inc. region
June to July 2022
Grant monitoring and closeout