GESU Housing Inc.: Single Family New Constuction

ID

169

OrgName

GESU Housing Inc.

PhysicalAddress

7602 Pacific Room LL101, Omaha, NE 68114

MailingAddress

Website

www.gesuhousing.com

SocialMediaAccounts

facebook under construction

Name

Patricia Evans

Title

Executive Director

EmailAddress

pataevans53@gmail.com

Phone

+1 (402) 880-9644

Team

Yes

TeamExplanation

Pat Evans, Executive Director, Burke Harr (Board Chairperson), Bill Lukash, Board member, Julie Stavaneak, Board member, Dan Doughterly, Vice Chair of Board, Deyna Rouse, Board Treasurer. (please see attached bios for Pat, Bill and Burke. Dan and Deyna have been long term board members and have provided governance over GESU's housing development. Deyna and Dan have maintained the fiscal accounting for the agency as well as an independent contractor Seim Johnson. Julie Stavneak is the owner of J Development and has worked extensively with single family and multifamily development for over 20 years.The team will consist of several partnerships to include Omaha 100 for the downpayment assistance underwriting, the provision of 1st mortgages, Family Housing Advisory Services will provide homebuyer training. An additional staff member will be hired to facilitate the project management.

OrganizationalChart

Currently, Patricia Evans is the only employee. When hired, the Project Manager will be supervised by Pat. The Board of Directors is the direct supervisor of Pat Evans. All consultant or partnership agreements will be monitored by the Project Manager. See Attachment A

OtherCompletedProjects

See Attachment B

ProposalTitle

Single Family New Constuction

TotalBudget

2196101.0

LB1024GrantFundingRequest

1196102.5

ProposalType

Capital project

BriefProposalSummary

GESU will develop 7 new single family owner occupied homes in the area bounded by Grace Street on the South, Willis Ave on the North, 18th Street on the East and Florence Blvd on the West. Currently the City of Omaha owns 9 of the lots and Housing of Omaha owns the remaining lots. Single family homes, which will be approximately 1200 square feet, 3 bedrooms, 1 bath with a 1 car garage, These homes are anticipated to be sold for $145,000 to low and moderate income families with household incomes 80% or less of the Median family Income as determined by HUD. A 0% deferred payment loan will be provided as down payment assistance with closing costs (as needed) to eligible homebuyers based upon the mortgage gap up to a maximum of $50,000. There will be a 20 year Affordability Period enforced with recapture provisions on the loan. (see Attachment D- financing plan. Construction is anticipated to be completed within 24 months of release of funds.

Timeline

Construction is anticipated to be completed within 24 months of release of funds. (see Attachment C). Also, provided is a community engagement and funding schedule.

PercentageCompletedByJuly2025

1.0

FundingGoals

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)

Community Needs

Sustainable Community (i.e., create or enhance housing, services, education, civic uses, recreation, etc.)

OtherExplanation

ProposalDescriptionAndNeedsAlignment

GESU proposes to construct affordable single family homes for purchase by low and moderate income families. The homes are energy efficient, maintenance efficient and provides quality construction. GESU's mission is to provide quality, affordable housing to low and moderate income families which aligns with the stated needs and priorities of the community engagement and visioning sessions. .GESU has significantly impacted the Clifton Hills neighborhood by producing 80 houses over the years, working with the neighbors and creating partnerships in the neighborhood. This is the model of development that GESU follows, investment into a neighborhood which in turn is an investment into the community. GESU 's vision is to transform neighborhoods by creating a viable, stable, safe environment for families to grow and flourish. GESU is also providing a financing process that will assist potential homeowners in gaining equity in a short time as well as developing an asset that can be utilized to build wealth. Providing housing opportunities in North Omaha will contribute to the overall and long term economic growth and stability of the community, and will increase 7 new opportunities for people of color to enter homeownership.

VisioningWorkshopFindingsAlignment

The production of 7 ownership opportunities with assistance will impact the ability of low and moderate income person to own, create generational wealth, have equity to leverage opportunities and provide housing stability for their families. GESU will provide down payment assistance, enabling more families to participate in the purchase of a home, gaining equity without creating additional financial burdens and stabilizing neighborhoods with quality affordable housing stock. Vacant land is in abundance in the North Omaha area, creating areas of crime, vandalism, neglect and neighborhood deterioration. Constructing affordable housing for purchase by low and moderate income persons creates an economic base for growth, creates safety, demands infrastructure improvements and investment from the public as well as the private sector.

PrioritiesAlignment

-Provides affordable homeownership units within qualified census tracts ; -Acquired land and securing title of vacant or abandoned properties in disproportionately impacted communities.

EconomicImpact

-1 permanent job will be created for a low or moderate income person. This person will be assigned the project management who will work with the general contractor, the consultants and the partnerships. They will directly overseen the compliance of the project and maintain the required documentation. - There will be approximately 16-20 construction jobs created during the construction phase. (sub-contactors or general contractor). All jobs will be paid prevailing wages for the worked classifications. -The project will be competitively bid through a procurement process for both the General contractor as well as the subs. The requirement of SEB and Section 3 will be included in all bid documents as well as an Economic Inclusion Plan will be required for the General contractor

EconomicImpactPermanentJobsCreated

1

EconomicImpactTemporaryJobsCreated

16-20

EconomicImpactWageLevels

prevailing wage

EconomicImpactAlignProposedJobs

SEB and Section 3 requirements will be included in the bid packet. An Economic Inclusion Plan will also be required

CommunityBenefit

The construction of new homeownership opportunities will increase safety, economic growth and neighborhood stability. It will allow families to experience housing stability while building family wealth, it affords a level of safety in the neighborhood, increases the desirability and look of the community, increases an economic base where other investment can build and flourish.

CommunityBenefitSustainability

Homeownership enhances the quality of life. If a family has housing stability, several basic needs have been met - shelter, safety. This allows them to then focus and work toward enriching other aspects of their lives, including education, health and personal economic growth. A stable community provides sustainability and calls for additional accountability in investment from outside sources,. Homeownership is a personal investment but is also a community investment that will facilitate additional resources, transportation, economic growth and investment, and a demand experiences that have culture relevance.

BestPracticesInnovation

No real innovation, just a provision of needed services.

OutcomeMeasurement

-stability of ownership during the affordability period. Reduction of crime in area. Surrounding homeowner or landlord investment into their properties, Growth of any other economic opportunities as a result of more housing stock.

OutcomeMeasurementHow

Reporting of disposition or status of housing throughout the affordability period. Verification of principle place of residence can be done as random sampling throughout the affordability period. Crime statistics can be tracked by the police department. Economic growth can be tracked through studies conducted by MAPA or the City, Additional investment by neighbors and surrounding area can be tracked through programs the provide rehabilitation programs, such as the City Planning Department, Habitat For Humanity, Project Houseworks, One Omaha

OutcomeMeasurementCoinvestment

The surrounding neighbors may want to engage in the various programs for homeowner repair, landlords may want to participate in programs that are designed to assist them in rehabbing their properties, additional businesses may want to come into the community because homeownership shows stability and more consumers with potential income.

Partnerships

Yes

PartnershipsOrgs

Omaha 100 - underwriting for downpayment assistance, provision of 1st mortgages. Family Housing Advisory Services - provides Homebuyer education, credit repair and financial literacy classes, City of Omaha for provision of lots to build housing, Omaha Land Bank for potential additional lots

PartnershipsMOU

not as yet, although Omaha 100 and FHAS and the City of Omaha have been partners for 18 years.

Displacement

No

DisplacementExplanation

PhysicalLocation

Proposed lots are in the qualified census tract of 12 and located within the bounded by Willis on the north, Grace on the south, 18th street on the east and Florence Blvd on the west. See Attachment E

QualifiedCensusTract

Within one or more QCTs

AdditionalLocationDocuments

See Attachment D - no lots have been acquired as yet. Currently in discussion with the City .Environmental studies have been completed by the City of Omaha

PropertyZoning

Yes

ConnectedToUtilities

ConnectedToUtilitiesConnected

No

ConnectedToUtilitiesUpgradesNeeded

Yes

DesignEstimatingBidding

No

DesignEstimatingBiddingPackageDeveloped

No

DesignEstimatingBiddingCostsDetermined

based on previous construction costs - currently have 5 houses under construction

GeneralContractor

No

GeneralContractorPublicCompetitiveBid

GeneralContractorPublicCompetitiveBidWhyNot

RequestRationale

Please see Attachment F Project budget/sources and uses

GrantFundsUsage

Funding will be used for gap financing for construction with 10% toward project delivery cost- percent salary for Project manager (see Attachment G)

ProposalFinancialSustainability

Yes

ProposalFinancialSustainabilityOperations

Housing will be sold to eligible homebuyers. Upon the sale of the house, any proceeds received will be deposited into GESU;s account and determined to either be restricted for future affordable housing projects or unrestricted and allowed to be used to project delivery or operational costs. All consturction costs and program delivery costs will be documented with an AIA, lien waivers, invoices and requests for pay. Individual house files will be maintained and costs tracked on each draw. Records will be kept through the affordability period and 5 years after. All requests for funds will be supported by appropriate documentation and all fiscal requirements will be adhered to. Fund balance will be maintained in an FDIC insured bank8ing sinstitution. An annual audit will be conducted by Siem Johnson, Inc. A summary of matching funds and where such matching funs wer generated will be included in an annual report

FundingSources

See Attachment G - Sources and Uses

FundingSourcesPendingDecisions

All sources are in the process of being raised or applied for in the beginning of 2023

FundingSourcesCannotContinue

construction funding

Scalability

The number of houses can be reduced, however, the costs will increase because supplies or materials may increase because of the reduction in quantity.

ScalabilityComponents

FinancialCommitment

GESU is committing 100,000 in equity derived from previous developments. GESU does not maintain a balance of funds. We have fundraised continually to support projects. Because the development cost exceeds the sale price, the fundraised dollars go to the loss derived from producing the affordable units. There is no profit for GESU other than a developer fee per house. GESU has partnered with the City of Omaha for 18 years using NAHTF and HOME funds to construct the housing. Usually, GESU has fundraised to contribute 75-80,000 per house toward the construction.

ARPAComplianceAcknowledgment

1.0

ARPAReportingMonitoringProcessAck

1.0

LB1024FundingSourcesAck

1.0

PublicInformation

1.0

FileUploads

Additional Location Documents (see application for list) Data table of uses (breakdown of how the requested funds will be used for your proposal) Proposal Budget/Sources and Uses Schedule