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Great Plains leadership presents $20 million in loan guarantees for Omaha affordable real estate development
[(L-R) Great Plains Regional Administrator Ulysses 'Deke' Clayborn, City of Omaha Mayor Jean Stothert and Omaha Field Office Director Kitty A. Amaya presenting the ceremonial check at city hall on October 30, 2023. (Photo Credit: HUD Press Office Great Plains)]
(L-R) Great Plains Regional Administrator Ulysses “Deke” Clayborn, City of Omaha Mayor Jean Stothert and Omaha Field Office Director Kitty A. Amaya presenting the ceremonial check at city hall on October 30, 2023. (Photo Credit: HUD Press Office Great Plains).

On Monday, October 30, 2023 – HUD Great Plains Regional Administrator Ulysses “Deke” Clayborn presented a $20 million check to Omaha Mayor Jean Stothert and her Planning Department staff. The funds, from HUD’s Section 108 Loan Guarantee Program (Section 108), will help ensure access to and increase the production of affordable housing in Omaha by lowering the capital cost of development in the city. HUD’s Section 108 program provides Community Development Block Grant (CDBG) recipients with the ability to leverage their annual grant allocation into low-cost bonds and loan guarantees to provide flexible financing for economic development, housing, public facility, and infrastructure projects. Communities can use Section 108 guaranteed loans to finance specific projects or to launch loan funds to finance multiple projects over several years.

Often used to catalyze private economic development activity in underserved areas or as gap financing, the city expects its contract partner, Front Porch Investments, a nonprofit working to spur investment in affordable housing in Omaha, to receive several loan applications over the coming months from affordable housing developers and anticipates the funds being used for multiple projects with a goal of increasing affordable housing in Omaha. According to an analysis by Front Porch Investments, Omaha has about 20,000 affordable housing units but around 100,000 low-income families that qualify for them – an obvious mismatch of supply and demand. While not expected to solve the gap in housing entirely, the city’s use of federal loan guarantees is expected to help jump-start the supply of affordable units in the next few years.

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