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NebHi-RED
Program Description
To stimulate affordable new house construction in rural communities, NIFA works with non-profit housing development organizations (HDC), local communities, lenders and selected turnkey contractors, to build affordable homes for families with incomes below 80% of the local area median income (AMI).
Should a buyer not be identified by the HDC and/or qualified by a participating lender at the time of completion of the home, NIFA, according to the funding agreement with the local HDC, will "take out" the builder's construction loan.
The NebHi-RED (Nebraska Housing Initiative for Residential Economic Development) program goals include overcoming local impediments to building affordable housing for sale to low and moderate income individuals and families; minimizing the builder's risk in order to reduce usual profit margin reward; keeping units affordable; achieving economies of scale for builders; developing vacant non-tax collecting lots; and providing construction training opportunities.
Long-term benefits of the NebHi-RED program include stimulating the market; educating the community, builders, and buyers; increasing the local tax base and property values; enhancing local organizational capacity while attracting population and labor force to the community; and replicating the process with or without the participation of NIFA.
NIFA Contact:
Ted Simpson
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1230 'O' Street