Program helps keep older homes viable

McCOOK, Neb. — How to keep older homes in the city in good shape while assisting families who want to buy them is the focus of a program that the McCook Economic Development Corp. is helping to administer.

MEDC partnered with Southwest Nebraska Community Betterment Corp. for a down payment assistance program. The MEDC paid $1,000 in grant writing and $5,000 in matching funds. That program awarded over $70,000 in down payment assistance to seven McCook households who closed on a primary residence.

Now, that program has expanded for eligible homebuyers to include not only up to $10,000 for down payment assistance on a new home, but also an additional $20,000 for structural, mechanical, and electrical upgrades, MEDC director Andy Long said Monday night at the regular McCook City Council meeting.

This is a great way to keep older homes a viable part of the housing stock, he said

The last housing survey in McCook identified about 200 homes that needed slight to moderate improvements, according to Long. Eligible buyers for the program are those who make under 120% of area median income, or: a one-person household making under $60,240, a three-person household under $77,400 or a family of four making under $85,920.

Improvements for newly purchased homes include structural, mechanical, electrical and plumbing. This includes improvements to the foundation/roof, furnace, air conditioning, water heater, wiring, plumbing, weatherization of windows, doors, insulation, siding, general maintenance of kitchens, bathrooms, handicapped accessibility and safety and code deficiencies. Improvements not covered are garages, driveways, sidewalks, decks or patios, landscaping and fencing jacuzzis, hot tubs and spas, and kitchen appliances. Mobile homes or rental properties are not eligible for participation.

Some families have a difficult time in coming up with a down payment for a home and if they do have the funds, don’t have any extra to pay for structural improvements, Long said. So those improvements don’t get done and later, when the family moves on and the home is put back on the market, it’s condition has deteriorated as it’s still lacking those improvements.

Those interested in applying for the program can fill out an application at the Southwest Nebraska Community Betterment Corporation website at southwestne.com. The Southwest Nebraska Community Betterment Corp. also promotes affordable housing in Perkins, Chase, Hayes, Dundy and Hitchcock counties.

The down payment assistance and rehab match program, along with several others, are part of the MEDC’s LB840 program. There is $601,147 available in funds, with $213,300 committed. Programs where funds are committed include:

-- Infrastructure Improvement grant: Fiber optic to the Home incentive, $150,000: The MEDC board has determined the availability of fiber to the home is essential to the future development of the area but recognizes the difficulty of building a fiber network to residential areas in rural communities. To assist in financing, MEDC offers a finance program with a $150,000 loan at 1% annual interest with a 10-year term. As the company meets conditions set on the loan, they will be eligible for up to $150,000 in financing from MEDC at 1% annual interest with a 10-year term for Year 2 and Year 3 of the expansion project. This could total $450,000 in financing at 1% over three years. The MEDC is currently working with one potential communication company for this project, but nothing has been finalized yet, Long said. Part of the logistics is that Nebraska Public Power District poles that are leased from the city cannot have any more weight on them, so fiber optic installations must go aerial, he told the council Monday night.

-- Housing: $20,000 Innovative Housing Fund grant match and $5,000 for SWNCBC down payment assistance and rehab match. For the Housing fund grant match, a home on West Ninth and Q is ready to sell and when it does, the proceeds will go into a fund to set up a second house, Long said. The $405,000 grant for this is split between McCook, Cambridge and Benkelman.

-- Early childhood education, $22,800: funds education and start-up expenses for childcare programs as well as incentives for current providers.

-- Business Assistance: $10,500 for digital facade program and $5,000 for Hormel Entrepreneurship Competition. The digital facade program provides up to a $3,500 match to help businesses upgrade their digital presence. The Hormel competition is slated for the spring and is in a revised version for the fourth time. Previous winners have been Citta Deli, Saltwater Hills Shrimp and Game On.