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Habitat for Humanity of Omaha, Inc.
1701 N 24th St., Omaha, NE 68110
habitatomaha.org
https://www.facebook.com/HFHOmaha; https://twitter.com/habitatomaha; https://www.youtube.com/user/HabitatOmaha; https://www.instagram.com/habitatomaha/
Janneane Gerot
Senior Project Manager
jgerot@habitatomaha.org
+1 (402) 884-6691
Yes
Amanda Brewer serves as Habitat for Humanity of Omaha’s (HFHO) Chief Executive Officer, responsible for ensuring project and fundraising goals are achieved and align with the mission and purpose of the organization. Amanda has 25 years of experience working for Habitat for Humanity, both at the local and international level, and has been leading HFHO since 2005. Director of Construction of Construction, Drew Lier, has been with the organization for eight years. Drew oversees the overall progress of land and house acquisitions, rehabilitations, and construction of new infill housing, ensuring adherence to all federal bidding and contracting guidelines, monitoring budget to actual expenses, and keeping the project on course to complete within the required timeline. Drew has extensive experience managing multi-site construction projects under tight timelines and budgets. He is assisted in this work by Kyler Goodwin, Sr. Construction Project Manager, and Randy Kirchner, Construction Manager, who lead a crew of 26 skilled construction and project management specialists. Land Acquisition Manager, Dan Brewer, has been with the organization for 14 years and handles all property and land acquisitions, including the lot and house acquisitions for this project. Engineer and Construction Supervisor, Ed Thiele, advises HFHO on the structural integrity of potential rehabilitation houses. Ed also prepares floorplans when rehab house layouts require changes to fit the needs of modern families. Louis Olivera, Chief Financial Officer, is responsible for oversight of all accounting and finance functions of the project, including budgeting, internal and external financial reporting, and financial and regulatory compliance. Louis has 16 years of high-level experience managing compliance and controls, including audit and risk review programs, for several international banking and financial organizations. Al Siemek, Finance Director, is responsible for financial modeling and risk management for the project. Together, Louis and Al represent more than 54 years of banking, finance, and risk management experience. Family Services Program Director, Lacey Studnika, oversees all of HFHO’s client-facing programs, including its Almost Home housing counseling program, which focuses on getting individuals mortgage-ready. Lacey has many years of experience in nonprofit program management and implementation. Tayien Mayian, Family Services Senior Program Manager, provides management of HFHO’s program team, matching families with each of the newly constructed or rehabilitated homes. Joanna Wright, Sr. Mortgage Services Manager and Qualified Loan Originator, manages HFHO’s mortgage lending under the direction of CFO Louis Olivera. Joanna will process the loan files for the purchase of the homes completed as part of this project, reviewing and approving all applications and ensuring compliance with federal and state lending regulations. John Haske, HFHO’s Chief Development Officer, leads the organization’s fundraising efforts and is responsible for securing funding for any gap between LB1024’s funding and the final cost to complete the 10 houses in this project. Janneane Gerot, Sr. Project Manager, manages the organization’s government grants and will be responsible for all required reporting, reimbursement requests, compliance tracking, monitoring, and cradle-to-grave grant administration. Janneane has worked for HFHO for nine years and has extensive experience administering and maintaining compliance and reporting for the organization’s large portfolio of state, federal, and municipal grants.
Amanda Brewer heads the organization as CEO, with a senior leadership team made up of the heads of five departments: Construction, Family Services, Finance, Development, and Advocacy and Public Affairs. An organizational chart has been uploaded as Attachment A.
HFHO has been building and renovating homes in Omaha since 1984. Over the years, the organization has grown to serve five counties, and HFHO’s holistic approach to neighborhood revitalization has led to the addition of home repair and weatherization programs that have helped the organization serve more than 2,000 households over its 38-year history. HFHO has built 466 affordable new construction houses, rehabilitated 201 existing houses in North and South Omaha, and has completed more than 450 home repairs for Douglas County homeowners. Between 2014 and 2020, HFHO invested more than $8 million in the Kountze Park neighborhood, transforming the areas surrounding King Science Magnet school with 57 new construction homes, 17 gut rehabs, 40 demolitions of blighted and condemned homes, and 21 home improvement projects for area homeowners. Completion of these rehabilitations and infill new construction projects is well within HFHO’s capacity and experience, and we anticipate no issues completing the project by December 2024.
HFHO Affordable Housing Project
2915200.0
2800000.0
Capital project
HFHO requests $2,800,000 to support its Affordable Housing Project. This investment will result in the rehabilitation and construction of a total of ten homes in Qualified Census Tracts in North and South Omaha at the cost of $280,000 for each completed unit, including the lot or house acquisition. HFHO is requesting the flexibility to produce the ten affordable housing units using a mix of rehabilitated homes and new construction units. We feel this will best position us to complete the project within budget and on time should the housing market heat up again, and house prices increase to a level that would make rehabilitation too costly. Acquisition of the properties and houses would begin immediately upon funding award, and all houses would be built or rehabilitated by December 31, 2024. HFHO will utilize local subcontractors to build or rehabilitate these units whenever possible and will seek out local suppliers for project materials and lumber. Upon completion, the homes will be sold to families who have completed HFHO’s Almost Home mortgage-readiness and housing counseling program. In order to qualify to purchase these homes through an affordable Habitat mortgage loan, families must have incomes between 50-80% of the area median income (AMI).
HFHO will begin the acquisition process immediately upon award, with the goal of acquiring at least two houses within 90 days of funds release. Acquisition will be ongoing from award date through early 2024, with one rehabilitated house completing in 2023 and the remaining nine units completed by the end of 2024. On average, HFHO takes 6-8 months to complete a new construction home and 2-8 months to complete a house rehabilitation, dependent on the scope of work. HFHO is prioritizing all LB1024-funded projects to ensure this important funding is being fully utilized by its end date. As part of the rehabilitation acquisition process, homes are evaluated for suitability through the following steps: • Comparisons of similar house appraisals and sales in the neighborhood are pulled to estimate the likely appraisal value (HFHO sells homes at appraised value); • Walkthrough of the house by staff engineer and Director of Construction to determine the structural integrity of the home; • A draft scope of work is prepared, and a cost analysis is conducted; • Identification of any possible environmental hazards Rehabilitations can range from a “light touch” renovation of a home in good overall shape with a significantly higher purchase price and lower rehabilitation costs to a “gut rehab” that costs less at acquisition but will likely require extensive renovation work. Most gut rehabs require a full tear-out of the interior, reframing, drywall replacement, new insulation, new roof and gutters, and other large expenses. The ratio of gut rehabs to light touch rehabs HFHO will include in this project is difficult to predict and will depend on the availability, cost, and project suitability. Budgeted expenses for this project reflect the average cost across all rehabs, assuming a mix of both light and gut rehabs, with the option to build infill new construction units if the market doesn’t support ten cost-effective rehabs. Once any necessary abatement of environmental hazards is completed, the next step for light touch renovations is a formal preparation of the scope of work for the home. In the case of gut rehabs, demolition of the interior of the house and removal of any damaged exterior materials is the first stage of rehabilitation. HFHO’s in-house engineer then prepares site and house plans for the gut rehab homes, with the goal of maintaining the character of the house while reconfiguring the interior layout to fit the needs of modern families. Most rehab homes have between 3-4 bedrooms and two baths. When needed, HFHO is able to adjust these plans to accommodate special needs applicants who may require items like zero-entry doors, wider hallways, or ramps. New construction houses are built with 3-5 bedrooms, dependent on family size, two baths, a basement, and an attached garage. Upon completion, these homes will be sold at their appraised value to families making between 50-80% of the area median income who have completed our Almost Home housing counseling and mortgage-readiness program. This housing purchase is made possible through an affordable mortgage loan with HFHO as the mortgage provider. A timeline for this project has been included as Attachment B.
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Fundamental Change (i.e., a proposal that will continue to elevate North or South Omaha's presence and perception within the region, significantly improving the lives of area residents through physical development) Transformational (i.e., a proposal that will help energize, recharge, or spur significant and favorable advancements in North or South Omaha's function or appearance)
Quality of Life (i.e., create or enhance natural spaces, mixed uses, parks, safety, etc.) Sustainable Community (i.e., create or enhance housing, services, education, civic uses, recreation, etc.)
The lack of affordable, quality housing significantly affects the quality of life and the sustainability of the community in North and South O. The Omaha-Council Bluffs Comprehensive Housing Assessment predicts there will be a 104,000 gap in affordable housing units compared to demand by 2040, putting the stability of the city’s workforce at risk. This project addresses that concern through the rehabilitation and construction of a total of ten houses that will be sold at their appraised value to buyers with incomes 50-80% of the area median income. As part of its 2019-2023 Consolidated Plan, the City of Omaha identified neighborhood revitalization and affordable housing as two of its top strategic priorities and emphasized the need to eliminate blight and renovate existing housing within areas of North and South Omaha (City of Omaha Consolidated Plan, pgs. 172-173). The City’s housing needs study found that 735 households in Omaha were living in sub-standard housing, without access to working plumbing and kitchen facilities, while 1,675 area residents were living in overcrowded housing conditions. These households had incomes between 30-80% of the area median and had few alternatives for safe, decent, and affordable housing. Across the city, 3,425 low-income families experience a housing burden in excess of 50%, and a staggering 12,600 low-income families in Omaha experience a housing burden greater than 30% (Consolidated Plan, pgs. 60-61). North and South Omaha families struggle to find affordable rentals in a high-demand rental market, and their desperation to find affordable housing can often push them to accept substandard and unhealthy living conditions. For children in these households, the price of substandard housing and frequent moves to try to maintain rent affordability is high. The Omaha-Council Bluffs Comprehensive Housing Assessment found that 28% of children raised with housing instability are more likely to be underweight, with 59% more emergency room visits due to asthma and 250 children removed from their homes across Nebraska last year due to unsuitable housing (pg. 6-7). Housing insecurity also means frequent school moves, and children in this situation fell behind their peers by three months after only one move (CHA, pg. 9). Over its 38 years, HFHO has seen the difference affordable housing can make in the lives of Omaha families. Daily HFHO talks to program applicants working 2-3 jobs to support their families who are still frustrated by their inability to find safe, decent, stable housing. They are often forced to live in sub-standard apartments run by slumlords with conditions that would be unthinkable for most Omaha residents. From mold issues and rodent infestations to unrepaired water leaks and heating systems that don’t work, families are forced to remain in these rental conditions because of the lack of any affordable alternative. The shortage of affordable housing for low-income families also puts them in direct competition with middle-income families for housing, shoving their percentage of income spent on housing far over the suggested 30%. Currently, an average of five households will compete for every house that goes on the market in Omaha. Throughout HFHO’s focus areas in North Omaha, 34% of households are housing cost-burdened (Comprehensive Housing Assessment, pg. 24). As Omaha continues to grow and metro neighborhoods are gentrified, the gulf between low-income residents and their ability to afford decent housing will do nothing but expand. As part of its Affordable Housing Project, HFHO will construct or rehabilitate ten houses within QCTs in North and South Omaha and is requesting $2,800,000 in LB1024 funding to support the project. This directly aligns with the identified need for more housing to support sustainable communities. Maps of the focus areas is included as Attachment C. All houses will be completed by December 2024.
This project directly aligns with the Visioning Workshop Findings by producing more affordable housing while maintaining the character of neighborhoods. The lack of quality, entry-level homes within North Omaha and the high ratio of renter-households compared to owner-occupied households were seen as a threat to the community’s economic stability. The high debt level of area renters was also a concern, which participants felt was preventing individuals from becoming more permanent homeowners. HFHO’s Almost Home program works with families to set budgets, pay down debt, and become mortgage-ready. Since the program’s launch earlier this year, it has seen an overwhelming response, with more than 3,000 phone calls received on the first day. As part of this project, buyers for the ten houses will first go through the Almost Home program, addressing the concern many had about the inability of residents to qualify for homeownership. The project supports efforts to make North and South Omaha a sustainable community and increases the quality of life for families who are currently living in substandard housing.
This request aligns with the E3 Expenditure Category of the North Omaha Recovery Plan by building or renovating homes to create single-family housing units, and with Section 4.2 of LB1024 which prioritizes “housing needs” in administering the grant funds.
HFHO is committed to using local contractors and sourcing its building materials and lumber from local North and South Omaha suppliers whenever possible when executing this project. One of HFHO’s strategic priorities is increasing its use of minority-owned businesses in building its homes, and we will be pursuing opportunities to employ minority contractors and use minority-owned businesses in completing the ten units.
No permanent jobs will be created through this project.
HFHO will be contracting most of the labor to complete the ten houses, creating employment opportunities across multiple trades.
HFHO will contract with skilled construction tradesmen and contractors who set their own labor costs based on the prevailing wages within their industry and among their peers in Omaha. HFHO supports fair wages and pays its staff according to compensation research that takes into account the pay range for each position and the experience of the staff member filling each role.
HFHO intends to prioritize hiring subcontractors and sourcing materials and lumber from businesses in Qualified Census Tracts. Currently, 15% of HFHO’s subcontractors are minority-owned businesses, and we are constantly working to increase that percentage. HFHO is ready to execute this project and begin acquiring houses and lots as soon as funding is granted, creating a quick influx of construction jobs in the community.
Unoccupied, blighted homes that have fallen into disrepair create a domino effect that lowers the home values in a neighborhood and encourages abandonment of homes due to an inability to sell. This project would take run-down homes in Omaha’s historical communities and restore their beauty, giving them new life and improving the appearance and safety of the neighborhood. Not only does this benefit the community through improved house valuations, but the new homeowners help fund K-12 schools through the payment of their property taxes. These ten homeowners will put down roots in their neighborhoods, investing in their community, and building relationships that will continue the legacy of strong community ties that built North and South Omaha.
Housing is an elemental part of community sustainability. Without stable, affordable housing, we cannot maintain the workforce that makes a community grow and thrive. Families who are unable to find affordable housing will eventually seek employment in other cities where their money can go farther. Housing renovation in older neighborhoods is also vital for community sustainability. Most homebuyers in North and South Omaha don’t have the funds to invest in the type of full gut rehabilitation that many of the older homes in the community require. As a result, the homes sit empty and unsold, falling into further ruin and casting a negative light on the neighborhood as a whole. Renovating these homes and filling empty, infill lots with attractive new homes helps revive neighborhoods and restores a sense of pride in existing homeowners who tire of upkeeping their own homes as their property values plummet as they sit next to boarded-up houses and overgrown lots.
HFHO’s Almost Home program is an innovative approach to homeownership. After years of a traditional Habitat model of families applying to purchase a home, completing Sweat Equity and financial education, then being matched with a Habitat-built house, HFHO stepped back and reevaluated its program. The need in the community was so great that we did not feel our traditional model was enough, and we knew we had to find a new way to expand our offerings to help get more people into homes. With the launch of the Almost Home program, HFHO now offers housing counseling and mortgage-readiness services to the community, with those completing the program able to follow one of several pathways once they are mortgage-ready. Those families whose incomes are between 50-80% AMI can apply to purchase a Habitat-built or renovated home like the ones completed as part of this project, or they can find their own home on the open market using an affordable Habitat mortgage loan to finance their purchase. With a mortgage interest rate that tops out at 2.65%, this makes more homes affordable to a wider income range.
Positive outcomes of this project are an improved quality of life for the new homeowners, including a reduction in housing costs, and better educational and health outcomes for their children. Other outcomes would be a greater sense of safety, an ability to build up savings, and better credit as a result of both homeownership and their education through Almost Home.
HFHO is developing an expanded data collection process to measure these outcomes for this project and all the work it does in the community. We will be utilizing the information we currently have, such as credit scores at the initial program start compared to scores pulled at closing, and reported health and safety issues with prior housing compared to such measures after one year of homeownership. We will also be collecting information on educational and economic outcomes from our homeowners as we connect with them in post-closing outreach.
Investing in renovating and building home in neighborhoods encourages other homeowners to invest in the upkeep of their homes and makes the area more attractive to other homebuyers. HFHO also markets its no-interest home repair loans in areas where it builds and renovates homes, which not only encourages families to repair their homes but offers employment opportunities for contractors who will be hired to complete the repairs.
Yes
HFHO parnters with neighborhood associations within its focus areas and plans to partner with area businesses within North and South O in sourcing labor and materials.
none
No
This project will take place in North and South Omaha, primarily in focus neighborhoods, all of which are in QCTs. Any new construction homes will be on infill lots in these neighborhoods, as will all properties to be renovated. Maps of these focus neighborhoods have been included as Attachment C.
Within one or more QCTs
Maps of the areas in which we intend to build have been uploaded as Attachment C.
Yes
Yes
Yes
No
No
Cost were determined based on other, completed rehabilitations and new construction builds in the area. Design and bidding are executed after acquision of rehab units. HFHO has several new construction house designs for use on the infill lots.
No
HFHO strives to minimize the cost of its home builds and renovations; building simple, decent homes for families that are energy-efficient and attractive. We have requested $2,800,000 in funding for ten homes, which represents an average of $280,000 to build or renovate each home. This estimate is based on our actual costs for materials and labor, and we believe it is a reasonable cost for a home that is typically 1780 square feet and has 3-5 bedrooms with two bathrooms, a basement, and an attached garage.
LB1024 grant funds will be used for the hard costs of construction labor and materials to renovate or build 10 new, affordable, single-family housing units to be sold to families earning 50-80% of the area median income.
Yes
The fiscal operations of this project will be overseen by Louis Olivera, HFHO’s CFO, who will ensure HFHO’s finance team properly tracks program income and adheres to all funding requirements. CEO Amanda Brewer conducts regular check-ins with senior leadership to ensure lot and acquisition timelines are on-target. Janneane Gerot, Senior Project Manager, will submit all reimbursement requests under the LB1024 grants and ensure financial documentation of expenses is maintained for the required retention period.
HFHO expects a small amount of overage beyond the $280,000 on some of the rehabilitated units, as old homes can bring unexpected expenses. We have budgeted for additional contingency, which will come from HFHO’s general operating funds. Our operating funds are fed by donations from individuals, corporations, and faith groups, as well as private grants and the mortgage payments of Habitat homeowners.
No other funding sources are expected for this project.
This project will not move forward without the funding requested in this proposal.
While we believe ten houses would yield a more significant impact on the community, if necessary, this could be scaled back to fewer units.
This project could be reduced based on the number of houses, with one less house for every reduction of $280,000 from the overall ask.
HFHO is investing $100,000 in funds to this project to act as a contingency should any of the ten projects exceed its budgeted cost.
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Organizational Chart Plans and detailed descriptions, including pictures and a map of the site location/surrounding area Pro Forma Proposal Budget/Sources and Uses Schedule