AFFORDABLE HOUSING
SPECIAL series
A THREE-BEDROOM, TWO-BATH HOME BUILT BY METROPOLITAN COMMUNITY COLLEGE STUDENTS ON BEHALF OF NEIGHBORWORKS HOME SOLUTIONS.
A THREE-BEDROOM, TWO-AND-A-HALF-BATH HOME IN COUNCIL BLUFFS THAT WAS BUILT UTILIZING THE NEIGHBORWORKS HOME SOLUTIONS INFILL PROGRAM.
NEIGHBORWORKS WILL BEGIN CONSTRUCTION ON TWO TOWNHOUSE UNITS AS PART OF THE INFILL PROGRAM.
A THREE-BEDROOM, TWO-AND-A-HALF-BATH HOME IN COUNCIL BLUFFS THAT WAS BUILT UTILIZING THE NEIGHBORWORKS HOME SOLUTIONS INFILL PROGRAM.
Getting Creative WORKING AROUND HIGH-INTEREST, HIGH CONSTRUCTION COSTS Editor’s note: This is the thrid in a series of articles on affordable housing. In late September the Iowa West Foundation (IWF) announced a $4 million pledge to the city of Council Bluffs to support the addition of 1,300 new affordable housing units over the next 10 years. “Our job at Iowa West Foundation is to provide resources that let the experts think outside the box when it comes to housing,” said IWF’s President Brenda Mainwaring. In July the Greater Fremont Development Council (GFDC) also announced a $1.5 million Nebraska Rural Workforce Housing Grant to target rehabilitation and reconfiguring of current structures in the urban core. The grant stipulates that renovations must be equal to 50% of the assessed property value to qualify for the grant. “Those are things that developers aren’t usually interested in because they can’t do quantity,” said GFDC President & CEO Megan Skiles. She said there have been several applications submitted since the grant was announced in July 2023. Grants, like the ones above, and other sources of funding are essential to increasing the number of affordable housing units in a timely manner. However, grants are limited, forcing nonprofits with the same goal to compete against each other, and, in some ways themselves.
Unique Financing Structures
Unwilling to accept defeat, organizations are getting creative. “Creative thinking and innovation are the only way we can hope to solve our community’s housing deficit,” Mainwaring said. For example, through its partnership with the Council Bluffs Community Development Department, NeighborWorks Home Solutions is offering downpayment assistance through the Infill Homebuyer Program. While completely dependent on income, the program can provide up to $30,000 in assistance at 0% interest. If the owner lives in the home for 10 years the loan can be forgiven. Three homes have been completed and sold using this program this year. Construction will begin on two sets of townhomes in the near future. Houses include top-of-the-line HVAC and water heaters, more insulation than required, and numerous tests to provide efficiency. “We want the cost of the home to be as low as possible for the new homeowner to manage,” said COO Phyllis Peterson. GFDC is hoping to attract rehabilitation projects by utilizing short-term loans, ensuring funds can be redeployed consistently. It’s also working on how to finance projects that regular banks wouldn’t consider “because they might be a little bit riskier.” “Our board has approved loans about 50 basis points below the five-year treasury, so currently that’s loans below 4%, where a regular bank is running 7-8% right now,” Skiles said. “We’re also offering it in interest-only payments until the end of
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