Multi-Family Housing Loan Guarantees in Nebraska

PROGRAM STATUS:

Open

APPLICATION DEADLINE:

December 31, 2021, 12:00 p.m. Eastern Time

What does this program do?
The program works with qualified private-sector lenders to provide financing to qualified borrowers to increase the supply of affordable rental housing for low- and moderate-income individuals and families in eligible rural areas and towns.

Who may apply for this program?
Private lenders may apply for a loan guarantee on loans made to eligible borrowers who are building or preserving affordable rural rental housing. 

Eligible lenders are automatically eligible if approved and active in one of the following programs:

  • Fannie Mae, Freddie Mac, Ginnie Mae
  • HUD
  • Federal Home Loan Bank members
  • State or local housing finance agencies

Eligible borrowers include:

  • Most state and local governmental entities
  • Nonprofit organizations
  • For-profit organizations, including LLC's
  • Federally-recognized Tribes

Additional requirements include:

  • Rent for individual units is capped at 30% of 115% area median income
  • Average rent for an entire project (including tenant paid utilities) cannot exceed 30% of 100% of area medium income, adjusted for family size.
  • Complexes must consist of at least five units
  • Complexes may contain units that are detached, semi-detached, row houses or multi-family structures

What is an eligible area?
Areas that may be served include:

How may funds be used?
Construction, improvement and purchase of multi-family rental housing for low to moderate income families and individuals is the primary objective for this program. Funding may also be available for:

  • Buying and improving land
  • Providing necessary infrastructure
  • For a complete list see Code of Federal Regulations, 7CFR Part 3565.205

What are the terms of a loan guarantee?

  • The Agency offers guarantees of up to 90% of the loan amount
  • For-profit entities may borrow up to  90% and non-profit entities may borrow up to 97% of the total development cost or appraised value, whichever is less
  • Minimum term of 25 years and maximum term of 40 years
  • Interest rate negotiated between the lender and the borrower is fixed for the life of the loan guarantee

Who will service the loan?
Loans guaranteed through this program are serviced through the private lender that makes the loan, just as they would be without a guarantee.

Who may live in the rental housing?
Low- to moderate- income families or individuals (1)

Is there a list of qualified private lenders in my area?
Contact your Rural Development office for a current list of lenders participating in the program.

How do we get started?
Applications for this program are accepted on an annual basis. A Notice of Funding Availability (NOFA) is posted in the Federal Register

Who can answer questions?
Contact your State Rural Development office or you can find Rural Rental Properties here to apply as a tenant.

What governs this program?

NOTE: Because citations and other information may be subject to change please always consult the program instructions listed in the section above titled "What Law Governs this Program?" You may also contact your local office for assistance.

(1) Low to moderate income: At initial occupancy, tenants' income cannot exceed 115% of the area median income adjusted for family size.

 

NOTE: If state specific forms are not shown above, please ensure that your state is selected in the dropdown menu above to find the State Office contact information and speak to a Housing Programs Specialist before attempting to fill out any forms or applications. This will save you valuable time in your application.

NOSA Response Form (pdf).  Use this electronic Response Form to submit a pre-application for the Section 538 Guaranteed Rural Rental Housing NOSA published on December 21, 2017. Ending date: December 31, 2021 at 12:00 noon Eastern Time.

NOSA Responses (pdf)

MFH GovDelivery Subscription Link - Sign up to receive emails on MFH announcements.

National Architect Requirements:

Individual states may have particular requirements based on state and local regulations. Please contact the state office in the state where your project is located.

National Engineering Requirements:

Individual states may have particular requirements based on state and local regulations. Please contact the state office in the state where your project is located.

State Environmental Requirements:
  • Contact Marty Norton, Environmental Coordinator, 402.437.5560-Phone or 855-207-0384-Fax.
  • Tribal Consultation: For projects that include excavations that have potential to disturb Native American archeological resources, tribes need to be contacted. Nebraska has specific policy to deal with this. This link will define what Tribe to contact depending on the location of the project.
  • Flood Plains: USDA Rural Development has specific policies regarding building in a flood plain. A map of the flood plain for your location can be found on the FEMA site.
  • Endangered species in Nebraska can be found at the U.S. Fish and Wildlife site.
  • Endangered species: Information on state endangered species can be found at the Nebraska Games and Parks site.
National Environmental Requirements:

Rural Development environmental requirements can be found here: RD 1970 Environmental Policies and Procedures. Benefits of the 1970 environmental regulations are described here: 7 CFR 1970 Benefits.

There are no other additional requirements at the national level. If there are additional state-specific requirements they will be listed above.

There are currently no events scheduled.

Nebraska State Office - Multi Family Housing
Federal Building, Suite 308
100 Centennial Mall North
Lincoln, Nebraska 68508-3859
402.437.5551 Phone
855.207.0384 FAX

Cindy Frazier, Multi Family Housing Director
402.437.5557

Jerry Pesek, Multi Family Housing Specialist
402.437.5566

Lincoln Office
Federal Building, Suite 308
100 Centennial Mall North
Lincoln, Nebraska 68508-3859
402.437.5551 Phone
855.207.0384 FAX

Sharon Kluck, Multi Family Housing Specialist
402.437.5035

Kim Le, Multi Family Housing Specialist
402.437.5734

Kim Briggs, Multi Family Housing Loan Technician
402.437.5735

Kearney Office
4009 6th Avenue
Kearney, Nebraska 68845-2386
308.455.9847 Phone
855-207-0384 FAX

VACANT

Norfolk Office
2601 Lakeridge Drive, Suite 2
Norfolk, Nebraska 68701
402.371.5350 Phone
855.207.0384 FAX

Kim Fehringer, Multi Family Housing Specialist
Extension 121

Andrea Gubbels, Multi Family Housing Assistant
Extension 100

North Platte Office
1202 S. Cottonwood Suite 3
North Platte, NE  69101
308.221.3690 Phone
855.207.0384 FAX

Travis Wolf, Multi Family Housing Specialist
308.221.3690