The HomeSCEDD Program A Catalyst for Workforce Housing in South Central Nebraska
SOUTH CENTRAL ECONOMIC DEVELOPMENT DISTRICT
www.scedd.us
WHAT IS THE VALUE OF A HOME? • A new residence can increase pride and responsibility in the community • A home purchase is often later followed by additional improvements to the property • Encourage others to make improvements (social influence) • Demonstrated housing success can spur additional housing initiatives
GROWING POPULATIONS • Additional families means additional school population • New home valued at $195k and a school levy of .75 increases revenue by over $14,000 over 10 years
HEALTHCARE INDUSTRY GROWTH • Increased patient population through more families • The health care industry is often one of the major employers in many rural communities and could greatly benefit from housing that attracts new generations of workforce
INDUSTRIAL GROWTH • Impacts local industries involved in home building, brings construction jobs • Wages and profits for local area residents spent on locally produced goods/services (ripple effect) • Desirable, quality homes attract additional workforce for local industry
ECONOMIC GROWTH • A new home is an economic multiplier and means much more than financing for the home • Home loans • Additional customer base for banking accounts • Micro loans, car loans, small business loans • Financial planning
LOCAL ECONOMIC GROWTH • Home buying creates a wave of activity: a household moving into a new home spends 3/5’s of its income on goods and services sold in the local economy • Typically spend $4,500 more during first 2 years (appliances, home improvements, furnishing) • Additional revenue by having another family, eating out, convenience stores, etc
INCREASED TAX BASE • Home increases tax base: With a levy of 1.88, a new home will increase revenue by almost $40,000 over 10 years • Household will pay about 1.25% of its income to local governments in the form of taxes and fees
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OUR MISSION
As an organization dedicated to economic growth of our region, it is imperative that we assume an aggressive posture in ensuring we do our part to maintain and GROW our workforce. Currently, the lack of adequate housing is a key limitation in allowing such growth in much of our region in South Central Nebraska. An ample qualified workforce with quality housing enables Nebraska industries to grow and our communities to continue to thrive. SCEDD has established the HomeSCEDD program which is designed to meet this issue head-on and serve as a catalyst for housing activity. We believe SCEDD’s model of building quality, above-standard homes using proven builders will deliver both a direct impact in providing housing and also injecting energy into the local economies.
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THE SOUTH CENTRAL ECONOMIC DEVELOPMENT DISTRICT EXISTS TO DEVELOP AND PROMOTE A POSITIVE ECONOMIC CLIMATE WHICH SUPPORTS REGIONAL GROWTH.
A housing program like HomeSCEDD is designed to help our communities pursue an exciting opportunity for growth within the region. our partnership is a pivotal part of ensuring the overall success of this program, which is dedicated to serving South Central Nebraska.
SHARON HUEFTLE Executive Director
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PILOT PROJECT - ST. PAUL, NE “THE BIGHORN HOME” • SCEDD Partnered with the St. Paul Development Corporation and the City of St. Paul to commence the proof of concept for Home SCEDD. • Zoning permit approved: November 6, 2017 • Construction began: November 8, 2017 • Estimated completion: May 31, 2018
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OUR TARGET • To bring quality homes that meet the demand and price point for South Central Nebraska’s workforce using a commercial contractor mentality and buying power. • To foster economic development in South Central Nebraska by addressing the need for modern housing enabling businesses to attract the workforce. • To demonstrate that QUALITY 3 bedroom, 2 bathroom homes can be built and sold at an affordable price.
FINANCIAL
STATUS
ACTION
Price Point for HomeSCEDD single family home: $195k
Currently building a pilot project spec home (funded solely by SCEDD).
Pledge support through financial investment in this program.
The Rural Workforce Housing Investment Act (LB-518) requires a 1-for-1 match.
DED released the application on January 4th and set a deadline of March 30, 2017.
Maximum match: $1,000,000 Minimum match: $250,000 SCEDD Contribution: $150,000 Home SCEDD Goal: $1,000,000
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LB 518 RURAL WORKFORCE HOUSING INVESTMENT ACT: Lack of adequate housing is commonly accepted as an issue across Nebraska, as is evidenced by the unanimous support of LB-518 (Rural Workforce Housing Investment Act) by our Unicameral and subsequent signature by Governor Ricketts. LB-518 intends to provide $7 million to fund homes for the state’s workforce. Unlike most housing programs, this one is not designed for low-to-moderate income households. Instead, the legislation seeks to impact the workforce looking for a house in the $150,000$275,000 price range. This program known as the Rural Workforce Housing Fund (RWHF) and is operated by Nebraska’s Department of Economic Development. • NDO’s can apply for up to $1M in first round of applications • Dollar for dollar match required to receive state funding RWHF application deadline: March 30, 2018
HOMESCEDD DESIGN: • Intended to operate independently of state funding, but will seek RWHF funding and fundraising in order to maximize. • Initial focus will be on infill, single family home (SFH) construction but could expand to market rate rentals, town homes, loans to incentivize building, etc based on community need. • SCEDD will select the most qualified/prepared communities in the 13 county district with a demonstrated housing need established by a housing study in the last 5 years (Statutory Requirement). Project Match: Communities providing a site ready lot with infrastructure at no cost will receive first consideration for this program. • SCEDD will work with General Contractors able and willing to build efficiently and to the desired price point.
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HOMESCEDD: PHASED APPROACH In order to ensure long-term viability of the program, HomeSCEDD will utilize a phased approach. Initially, the program will narrow focus on building single-family homes while making every effort to minimize risk. As the program matures, HomeSCEDD will seek to expand the scope of projects to include other housing activities.
Phase 1 Present through 2017
• Planning • FUNDRAISING • Submit DED ApplicaBon • PrioriBze Target Areas based off community interest and quick success (24 months)
Phase 2
ASSESS
2017-2018
• Pilot Project • New Single Family Homes • 1 x Local General Contractor (SC NE) • Connect interested GC’s to “Workforce Housing” paradigm • Develop experBse
Nebraska faces an aging housing stock. The majority of the housing stock in our district and in the state of Nebraska was built prior to 1980’s, with a large portion built prior to the 1940’s.
Phase 3 2018 and beyond
• Expand Scope • OpBon for market rate rentals, purchaserehab-resell, upper level housing, etc. • OpBon for addiBonal contractors • More risk tolerance
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OUR
HOMESCEDD TEAM
We are especially interested in helping projects in our region that:
• Create sustainable communities • Make existing businesses stronger • Help entrepreneurs get started in business • Increase housing opportunities • Encourage tourism in the region
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South Central Economic Development District
SHARON HUEFTLE Executive Director
Phone: (308) 455-4771 Email: sharonh@scedd.us
LEVI ADAM
Deputy Director
Phone: (308) 455-4773 Email: levi@scedd.us
SCEDD Services: • Business Loans & Consultation • Grant Administration & Writing • Community Studies/Reports • Housing Initiatives • Housing Study Lite and much more! In 2017 alone, SCEDD facilitated over $10.1 million in public and private investment dollars for our region!
LORI FERGUSON
Community Consultant
Phone: (308) 455-4772 Email: lorif@scedd.us
FRANCIS HERNANDEZ Community Consultant
Phone: (308) 455-9601 Email: frances@scedd.us
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SOUTH CENTRAL ECONOMIC DEVELOPMENT DISTRICT
www.SCEDD.com