Quality affordable housing leads to healthier and stable families, which in turn increases a thriving community. Although Lincoln has lower housing costs in comparison to the national average, discrepancies of what this looks like in our community remain.
According to the U.S. Department of Housing and Urban Development, for housing to be considered affordable, costs should not exceed 30% of a resident’s income. According to the Lincoln Vital Signs Report (2022) nearly half of our community members who rent are paying a large portion (more than 30%) of their income on housing. This is most prevalent for renters residing near downtown.
One approach our community has taken to address quality affordable housing is through a rental rehab program. The City of Lincoln Urban Development Department and NeighborWorks Lincoln worked together to design the high demand program, funded by the City through Tax Increment Financing (TIF) and administered by NeighborWorks on behalf of the City. This demonstration program is targeted to the South of Downtown area but may expand to other areas in future years.
When the program was released to the public, there were applications for nearly 2,000 units.
During the first year of the program, 11 property owners with a total of 100 units were selected to participate. Owners were eligible to receive funds to cover rehab related expenses like replacing and improving roofs, air conditioners, water systems, among other items. All work done is to improve safety, security, and the functionality of each unit.
To keep the rehabilitated units affordable, landlords and property owners had to agree to keep rent prices at or below the U.S. Department of Housing and Urban Development affordability standards for a period of approximately 10-20 years.
Jake Griess was one of the property owners selected to participate in the program. He is delighted that the city is utilizing this approach to increase our community’s affordable housing because it is a fraction of the cost than if the city were to build new affordable units.
“My tenants and I are very happy with the upgrades and grateful to have been able to participate in the program,” Jake reflected.
Additional partnerships have been established to rehabilitate rental properties. Many participating owners have partnered by adding their own contributions to cover additional expenses beyond what the program is able to provide. Lincoln Electrical System (LES) has also partnered to assist with funds to improve the energy efficiency of electricity-using appliances.
Property owner, Mark Nissen, commented on the benefits of community partnerships.
“LES incentives made it possible for me to make high-quality, large-scale improvements to my property while at the same time ensuring that the tenants would benefit from reduced energy bills and affordable rents for years to come,” he said. “Without the worry of major systems needing to be replaced in the near future, I can continue to improve the aesthetics and comfort of the building.”
NeighborWorks Chief of Staff, Charlie Wesche likes to call this a “triple-win type of program” because it is impacting tenants, owners, and the community.
“Tenants get to live in improved housing without fear of rent increasing, owners get access to capital to improve aging systems within their property and the city of Lincoln increases access to affordable, safe, and healthy housing,” said Charlie.