1. NIFA’s Workforce Housing Initiative Pilot Program
Mountain Plains Housing Summit 2016 Jackson Hole, Wyoming May 3, Wide Open Spaces – Rural Housing \ Workforce Housing Issues
NIFA’s Workforce Housing Initiative Pilot Program

2. Nebraska Opportunity Fund
NIFA Board authorized $30 million to capitalize the NOF
Ag Entrepreneurship
Community Development
New Market Tax Credit
Workforce Housing – allocation of $5 million (WHI Pilot Program)

3. Local Participation
To be eligible for consideration for the WHI Pilot Program, the applicant must provide “local financial support” for the workforce housing development. This support must equal at least 20 % of the total cost of the project (e.g., construction costs, ownership costs, operating costs and investment risks) as determined by NIFA.
Possible examples:
Lot \ infrastructure contribution
Rent guarantees ( i.e. number of units, rent subsidy, coverage of vacancy losses) and/or guarantees covering operating expense shortfalls (including reserves)
Construction / Perm financing (NOF will not participate in construction financing)
Other Financing (i.e. TIF) \ grants

4. WHI Program Components
New Construction – Rental Housing
Available only in Non-Metropolitan (Rural) incorporated Towns & Villages
Household income up to 150% of state-wide area median income for a family of four (4) - approx. $123,495 (2014 ACS – 1yr.)
Single family or duplex – min. of 4 / max. of 12 units / min. of 3 bedrooms & 1.5 baths / 1,000 to 1,800 SF
A Land Use Restriction Agreement (LURA) will be recorded

5. NOF Participation (But for the NOF……)
The NOF will offer direct and/or indirect financing to include:
Permanent loans, loan participations, cash collateral escrow accounts, loan guarantees – or combinations thereof
Max NOF participation will not exceed 80% of the lower of project cost or appraisal
Project must “pro forma” on a min. 1:1.15 debt service coverage ration
Project must be constructed within two (2) years
Max term is ten (10) years
Exit Strategy is required

6. Pilot Program Status
RFP published in Oct for “Preliminary Proposals”– Five proposals rec’d Dec
NIFA team interviewed & selected three (3) proposals to proceed to “Final Application” development stage
Project 1 – (pop. 3,559) 12 – 3 bdr. SF homes – Est. Dev. Cost = $2,426,000
Project 2 – (pop. 707) 6 – 3 bdr. SF homes – Est. Dev. Cost = $1,506,655
Project 3 – (pop. 6,211) bdr SF homes & 2 duplexes – Est. Dev. Cost - $2,614,899
Anticipate Final applications submitted May 2016 for NIFA review & underwriting (possible June Board meeting approval)