Nebraska
Tax credit programs key to Nebraska's affordable housing production • Nebraska Examiner
OMAHA — Set to rise in one of Nebraska’s oldest and changing urban neighborhoods is a 51-unit rental project aimed at keeping lower income residents from being priced out of midtown Omaha.
Not far away, a pair of obsolete downtown office buildings, each over a century old, are to be rehabbed into a total of 56 rent-restricted apartments on top of street-level commercial space.
Elsewhere in the state, in cities such as Beatrice, Schuyler and Hastings, dozens more residential dwellings will soon sprout for seniors on fixed budgets.
They’re all part of the latest round of Nebraska projects fueled by low-income housing tax credits — a tool experts say accounts for the state’s biggest chunk of affordable rental housing, or about 5,000 new dwellings added over the last decade and another 2,000 or so in various stages of development.
Offsets tax liability
In essence, the credit allows investors to offset their tax liability in exchange for providing upfront funds to develop affordable housing. That money reduces a project’s overall debt, which allows rents to be more affordable at below market rates.
The Nebraska Investment Finance Authority, the entity that administers both federal and state tax credit programs, awarded the latest batch of credits to nine planned developments that are on track to produce 383 new rental homes.
For those awardees, the credits translate into a total of nearly $111 million in funds to cover the bulk of construction costs for the planned projects, which then must remain affordable for 30 to 45 years, said NIFA executive director Shannon Harner.
“Investing in affordable housing is investing in the future of Nebraska,” Harner said.
Housing — and ways to provide more of it at accessible prices — has been in the spotlight as business and community leaders have noted consequences, including rising numbers of eviction court cases and workers leaving the Cornhusker state.
Indeed, housing shot up as one of the top two priorities identified in a 2023 survey of lawmakers cited during the past two years by the Legislature’s planning committee, which exists to identify trends, challenges and goals for Nebraska.
A housing report issued in September by the Nebraska Legislative Research Office used Census Bureau data to look at how the state stacks up nationally:
- Nebraska ranked at the bottom of the pack when looking at how much state government spent on “housing and community development” projects, according to the bureau’s 2021 Survey of State and Local Government Finances.
- Nebraska climbed to 39th among the 50 states when combining amounts that local communities spent along with their state governments on “housing and community development.”
- In comparing per capita local and state government spending, Nebraska, with $137 per capita spending, ranked 28th. Massachusetts was at the top ($506) and Wyoming at the bottom ($35).
- In comparing per capita local and state government spending with neighboring states, Nebraska was behind Colorado ($275), but ahead of Missouri ($135); Iowa ($134), South Dakota ($128), Kansas ($81) and Wyoming ($35).
Said the research report: “Many state housing funding programs exist in Nebraska, but the state ranks poorly in spending on housing and community development.”
It said that people interviewed for the research agreed that increased funding for construction and rehabilitation of affordable housing would improve the overall housing market and position Nebraska as “immensely more attractive” to potential businesses and job seekers.
‘Robbing Peter to pay Paul’
While housing experts consider the tax credit programs the most prolific in creating affordable rental units, Harner said that COVID-19 supply chain challenges have led to a production backup.
As developers catch up, Nebraska lawmakers this past session fell short in other affordable housing related programs, housing advocates said.
The Legislature, for instance, shifted $25 million from the Nebraska Affordable Housing Trust Fund, which is funded by a portion of the documentary stamp tax from real estate transactions. That amount then was directed to two other housing funds, one that helps create rural workforce housing and another for urban, middle-income workforce housing.
“It was just basically robbing Peter to pay Paul, it wasn’t new funding,” said Amber Marker, executive director of the Nebraska Housing Developers Association.
The year before, Gov. Jim Pillen vetoed $40 million that had been proposed for workforce housing, saying that he wanted to protect the state’s cash reserves – the source of the housing funds – and didn’t want to “flood the market” with government-funded housing.
State Sen. Wendy DeBoer of Omaha, the chair of the Legislature’s Planning Committee, said housing continues to be a pressing and alarming concern for the state and its workforce needs, across both urban and rural communities.
Competition for money is fierce, she said, and much of the Legislature’s recent focus was on property tax relief.
She said she’ll continue to push for improvements.
Areas of optimism
Advocates say they are optimistic, however, about progress under the Nebraska Strategic Housing Council, a wide-ranging group of policymakers, legislators, community and industry leaders that aims to tackle the shortage of housing across the state.
Among top goals declared by the council last year was to create, by 2028, 35,000 affordable and attainable homes for low- to middle-income earners, which the council said would reduce the number of needed units by about a third.
Another positive sign, they said, are affordable housing action plans that Nebraska cities were required to adopt by the start of this year. Legislation required that the plans include, for example, intentions for construction of affordable housing and how cities plan to use government incentives for that purpose.
The federal American Rescue Plan Act also fueled affordable housing efforts by nonprofits such as Omaha Front Porch Investments, which got the financial boost from the City of Omaha’s ARPA allotment.
Two recent reports from the Legislative Research Office — including the September “Framing the Future: Altering the Affordable Housing Blueprint in Nebraska” and another issued in July, “The Good Life at the Wrong Price” — intend to provide information for lawmakers as they consider future action and legislation.
According to the July report, “Relative to other states, the affordable housing supply in Nebraska is woefully lacking. A shortage of diverse and appropriate housing units in the market has increased both the cost of rent and home purchase prices of the available houses and apartments in the state.”
Researchers cited multiple reasons for the difficulty, including interest rates, appraisal gaps, insufficient ready-to-develop lots, limited construction workers in rural counties, complex building regulations.
Market rate units sprinkled in
Meanwhile, developers selected by NIFA in the latest round of housing tax credit allocations are closer to creating 383 affordable units.
An additional 57 market-rate units will be sprinkled within the nine project sites, according to their plans.
Of the nine developments, five are in the state’s largest city of Omaha.
One is a two-building, $27 million project by developer Neeraj Agarwal that is to create 56 affordable dwellings in historic structures — one that most recently served as office space for lawyers and another once owned by the inventor of a version of the modern parachute.
Dubbed the Howard Street Rehab, construction is to start next year at 1501 Howard St. and 500 S. 18t St., contributing to expected revival of a pocket just outside Omaha’s Old Market. The federal and state low-income housing tax credits are to cover about 42% of total development costs, NIFA said. Helping as well are sources including the historic tax credit.
Yet another Agarwal project — a beneficiary of a previous tax credit allocation round — is underway and expected to produce 54 rental units along Omaha’s original main street.
That $25 million 1904 Farnam project is across the street from City Hall. For decades the seven-level building served as home to law firms and small businesses. Planned restoration of the Art Deco-style landmark is assisted financially by other sources as well, including historic tax credits.
Agarwal said the downtown projects would not be “financially doable” for his for-profit business if not for the housing tax credit and other public incentive programs.
West of downtown Omaha, the $19 million first phase of the Poppleton Project is to create 51 units for people with household incomes at 50% or below the area’s average median income.
The target tenant population is working class and service employees at risk of being squeezed out by rents rising with the popularity of the area that’s situated between a reviving downtown business district and a job-magnet University of Nebraska Medical Center.
According to the nonprofit inCommon Housing Development Corp., the project is on the “front lines” of the housing crisis, subject to the impact of “gentrification over the past decade” and the lingering financial stress of a pandemic.
An estimated $24 million future phase is to bring 69 additional dwellings of various sizes and styles to the same acre of land, reserved for residents and families earning under a certain income.
‘Post-COVID economics’
In “post COVID economics,” the housing challenge is greater, and “it’s going to take all hands on deck” to solve workforce housing gaps, said Sheryl Garst, project manager at inCommon Housing Development.
The inCommon history offers an example of the greater focus needed to produce affordable housing, Garst said. The nonprofit started serving the midtown Omaha area nearly 20 years ago, initially offering leadership and job training for residents and eventually taking on housing rehabilitation projects. Just recently, its board helped launch the inCommon Housing Development Corp., led by Garst, to concentrate on affordable housing efforts.
With increased labor, material and other costs, a project such as the Poppleton would not be feasible without the boost from federal and state tax credits, Garst said.
Tax credits are expected to provide about 67% of development costs for the first phase. Other sources including public tax-increment financing and HOME funds will buttress traditional conventional loans to fill the gap.
Underlying efforts, said Garst, is the belief that affordable housing, generally defined as paying no more than 30% of income on housing, helps build success by preserving money for emergencies, home ownership and other life goals.
“When you’re living paycheck to paycheck, that doesn’t help anyone in that generation or future generations,” she said. “It all starts at the home.”
The other projects and developers awarded federal and state tax credits to help produce affordable housing were, according to the announcement by the Nebraska Investment Finance Authority:
Latest round
GET THE MORNING HEADLINES.
Nebraska
Nebraska Football Targeting California Commit
Nebraska is now a leader to land Aiden Manutai. Here is the latest.
The Nebraska Cornhuskers aren’t exactly done in the 2025 cycle as they have been searching for some flip targets. After actively searching, the Huskers may have found another one.
That guy is Aiden Manutai. Manutai is a Kahuku High School defensive back from Kahuku, Hawaii. He plays safety and is a listed four-star from ESPN. Manutai is committed to the California Golden Bears.
Manutai has been a target for the Cornhuskers for a bit of time and started to trend towards the Cornhuskers earlier this month. Manutai was originally interested in Nebraska along with five other schools before committing to the Bears.
Manutai did not make a trip to Lincoln this weekend, which is a good sign for the Golden Bears. However, the Cornhuskers are in a good spot despite this visit not happening. The Huskers made their first bowl game in years which is a positive sign for any recruit.
Manutai is also one of many recruits who were influenced by the addition of Dawson Merritt, who recently flipped from Alabama to Nebraska. Will Manutai be the next flip for the Big Red?
MORE: Luke Fickell: ‘Don’t Have Any Excuses’ for Wisconsin Football Loss to Nebraska
MORE: Nebraska Football Exorcises a Decade Worth of Demons in Win Over Wisconsin
MORE: Iowa Football Opens as Home Favorite Over Nebraska in Black Friday Matchup
MORE: Five Big Ten Teams Remain in Associated Press, Coaches Top 25 Polls
MORE: Husker Doc Talk: Nebraska Football Is Going Bowling!
Stay up to date on all things Huskers by bookmarking Nebraska Cornhuskers On SI, subscribing to HuskerMax on YouTube, and visiting HuskerMax.com daily.
Nebraska
Analytics Review: Nebraska Football vs. Wisconsin
It was an unseasonably nice afternoon in Memorial Stadium. And no, I’m not talking about temperatures in the high 50s for the final home game. In his second game as offensive coordinator, Dana Holgorsen’s offense exploded for arguably the Nebraska offense’s best game under Matt Rhule. Dylan Raiola played his best game, throwing for over 290 yards with no sacks and no turnovers. For the first time all season, I’d say the Huskers played well in all three phases of the game, and that was enough to send them bowling this December.
The story of this game was the Huskers offense. Emmett Johnson became Nebraska’s second 100-yard running back of the Matt Rhule era, joining Anthony Grant last season against Louisiana Tech. The Huskers had just two of their runs “stuffed” (a run for 0 or fewer yards) on their way to their second-best rushing output this season.
I was struck by the blocking effort in this game. Jahmal Banks held his block on the edge until Dante Dowdell crossed the goal line. Linemen were pulling and still blocking ten yards downfield, helping players fight for extra yards. That type of extra effort made this a special night for the offense.
The Husker’s offense also dominated the control of the ball. The Nebraska offense was built on methodical drives. Even if you remove Nebraska’s two explosive plays, the Huskers offense still managed an EPA of 3.88. This was the first game all season where Nebraska’s non-explosive plays went for a positive EPA.
Special teams was also a big positive for the Huskers in this game. Nebraska’s special teams performed 12.5 points better than Wisconsin’s this game. This was just the second time this season that Nebraska’s special teams unit was a net positive (Ohio State, 2.86 EPA). John Hohl’s 14 points were the most by a kicker in the Matt Rhule era.
The defense still had its concerning moments this game. Wisconsin performed in the 90th percentile or better in many offensive statistics, including its seven explosive plays. These big plays are a cause for concern against Iowa, as the Wisconsin offense is one of the worst teams in the country in generating explosive plays, at just 5.8%. The Nebraska defense was stout on crucial plays, allowing just a 30% 3rd-down success rate and a 33% red zone success rate.
Going into this game, Nebraska lost nine straight games after winning number five and ten consecutive games to Wisconsin. Many people on social media want to make fun of Nebraska fans for storming the field after getting to bowl eligibility. I’m happy these people can enjoy their laughs while they can. The Matt Rhule rebuild is running on schedule, and we all know what year three looks like for him.
Through 11 games, the Nebraska skill position group is the youngest in college football. The extra practice to build chemistry with each other and get more practice reps running Holgorsen’s offense is invaluable. The 2024 seniors won much less than most in Lincoln would’ve liked. But as they walked off the field for the final time, they put Nebraska football on a new trajectory.
MORE: Home Sweep Home: Nebraska Volleyball Dominates Wisconsin on Senior Night
MORE: Gallery: Nebraska Volleyball Sweeps Wisconsin on Senior Night
MORE: Gallery: Huskers Stun Wisconsin and Are Now Bowl Eligible
MORE: Tad Stryker: Breakthrough Day
MORE: I-80 Club After Dark: Party Like Its 2016
Stay up to date on all things Huskers by bookmarking Nebraska Cornhuskers On SI, subscribing to HuskerMax on YouTube, and visiting HuskerMax.com daily.
Nebraska
Gallery: Nebraska Volleyball Sweeps Wisconsin on Senior Night
Nebraska and Wisconsin Volleyball have played a total of six sets against each other this season, all of which have been won by the Huskers. Seniors, Merritt Beason, Leyla Blackwell, Lindsay Krause, Kennadi Orr and Lexi Rodriguez were all celebrated for their contributions to the program after tonight’s win.
-
Business1 week ago
Column: Molly White's message for journalists going freelance — be ready for the pitfalls
-
Science5 days ago
Trump nominates Dr. Oz to head Medicare and Medicaid and help take on 'illness industrial complex'
-
Politics1 week ago
Trump taps FCC member Brendan Carr to lead agency: 'Warrior for Free Speech'
-
Technology6 days ago
Inside Elon Musk’s messy breakup with OpenAI
-
Lifestyle1 week ago
Some in the U.S. farm industry are alarmed by Trump's embrace of RFK Jr. and tariffs
-
World1 week ago
Protesters in Slovakia rally against Robert Fico’s populist government
-
News7 days ago
They disagree about a lot, but these singers figure out how to stay in harmony
-
News1 week ago
Gaetz-gate: Navigating the President-elect's most baffling Cabinet pick