Working to improve rural workforce housing

As I write this article, the budget bills, LB's 1011, 1012, 1013, and 1014 sit on Final Reading. Hopefully by the end of the week, we will have finalized our budget by passing these bills and also determined how the ARPA funds will be allocated.

As you all know, a major problem that rural communities face in trying to attract workers is affordable housing. One of the items included in the ARPA bill is a request for $20 million for the Rural Workforce Housing Fund (RWHF). In 2017, the Rural Workforce Housing Fund was created as a part of the Rural Workforce Housing Investment Act. The intent of this fund is to help communities increase their supply of quality, affordable houses to accommodate a growing workforce. The fund provides competitive matching grants to non-profit development organizations who administer workforce housing investment funds. By investing funds in eligible projects it increases the supply and reduces the cost of workforce housing in rural communities.

Housing projects eligible for RWHF grants include: New rental housing units costing no more than $215,000; new owner-occupied housing costing no more than $285,000; upper-story housing; rehabilitation/conversion of an existing building into housing; or owner-occupied or rental housing units for which the cost to substantially rehabilitate exceeds 50% of a unit’s assessed value. In all cases a housing project cannot already receive federal or state low-income housing tax credits, Community Development Block Grants, HOME funds, National Housing Trust Fund, or funds from the Affordable Housing Trust Fund.

Another stipulation of eligibility is that the community must be in a county with a population of less than 100,000 people. So as of right now Lancaster, Douglas and Sarpy are the only counties with communities that are ineligible.

Grantees have to be approved by the Director of the Department of Economic Development and must be submitted by non-profit development organizations. The grants are given out on a competitive basis until all money is spent. They require one-to-one matching funds.

The awards are evaluated on demonstrations of the following: Ongoing workforce housing needs that are identified by a recent housing study, difficulties filling employment positions or attracting workers in communities or regions with a low unemployment rate, a community’s or region's commitment to growing its housing, the likelihood is that it'll have people living there within 2 years, the ability to grow and manage an investment fund for rural workforce housing. You can learn more about this program on the Department of Economics website under the Rural Workforce Housing Fund tab.

In 2021, the Nebraska Department of Economic Development (DED) announced the recipients of $9,126,500 in grants under the 2020 round of Nebraska Rural Workforce Housing Fund (RWHF). In 2021, out of 14 project areas selected, the McCook Economic Development Corporation in Red Willow County was one of the recipients.