inCOMMON Community Development: Omaha Community Land Trust

ID

26

OrgName

inCOMMON Community Development

PhysicalAddress

1340 Park Ave, Omaha NE 68105 1330 N 40 St, Omaha NE 68131

MailingAddress

Website

inCOMMONcd.org

SocialMediaAccounts

Facebook.com/inCOMMON Twitter.com/inCOMMON Instagram.com/inCOMMONcd Linkedin.com/company/inCOMMON-community-development

Name

Christian Gray

Title

co-Executive Director

EmailAddress

christian@inCOMMONcd.org

Phone

+1 (402) 933-6672

Team

Yes

TeamExplanation

Ismail Ismail - inCOMMON Housing Acquisition and Community Engagement Coordinator Ismail is a licensed real estate agent fluent in four languages (Somali, Swahili, Arabic, and English). He has provided homeownership services to new Americans for the past two years. Ismail holds an Associates degree in Finance from Metropolitan Community College, and has a strong background in marketing and Fiserv. Andrew Whealy, JD - inCOMMON Housing Development Corporation Project Manager Andrew has worked in the field of community development as an expert legal advisor for the past 14 years. Prior to joining inCOMMON in May 2022, Andrew was a partner at a national law firm where he primarily represented banks, investors, community development entities and developers in structuring complex commercial loan and equity investments which utilized various federal and state incentive programs including new markets tax credits, historic tax credits, low-income housing tax credits and reinvestment credits. Andrew has a Bachelor's degree in History from Yale University and a juris doctorate from the University of Iowa College of Law. Christian Gray, MPA, MSUS – inCOMMON Co-Executive Director Christian has worked in the field of national and international community development for 17 years and has served in the role of Executive Director at inCOMMON since 2006. He holds a double Master’s in Public Administration and Urban Studies from the University of Nebraska at Omaha. Christian has played a lead role in inCOMMON’s LIHTC projects, and is pursuing a Certificate in Rental Housing Development Finance through the National Development Council (estimated completion date: September 2022). Rachel Bahl, MPA – inCOMMON Co-Executive Director Rachel joined inCOMMON in 2016 and was promoted to Co-Executive Director in 2021. Before coming to inCOMMON, she worked for City Impact in Lincoln, Nebraska as the Development Associate. Rachel has a Bachelor’s degree in English from Nebraska Wesleyan University and Master’s in Public Administration from the University of Nebraska at Omaha. Rachel has played a supportive role in inCOMMON’s LIHTC projects. In addition to these current staff members, the following inCOMMON Board Members will play key roles in this initiative: George Achola – Vice President and Counsel at Burlington Capital Real Estate; Board Member at Nebraska Finance Authority Michael Beverly – Controller at College of Saint Mary Melanie Phelan – Co-Founder and President at Evergreen Enterprises

OrganizationalChart

inCOMMON’s organizational chart is headed by our Board of Directors who provide oversight of the co-Executive Directors, Christian Gray and Rachel Bahl. The co-Executive Directors share oversight of the organization’s three functional categories: Administration, Programming, and Fund Development. The attached organizational chart is formatted as an “accountability chart,” where the direction of accountability flows from right to left.

OtherCompletedProjects

inCOMMON is currently renovating 75-units of affordable housing through the Low-Income Housing Tax Credit (“LIHTC”) program. This $16MM project includes the Bristol Apartments (1029 Park Ave, Omaha) and Georgia Row Apartments (1040 South 29th St, Omaha). In addition to leveraging LIHTC, the income sources secured for this project included Historic Tax Credits, Tax Increment Financing, and over $1.5MM in philanthropic sources. Both buildings are scheduled for completion July 2023. inCOMMON’s track record also includes the successful development, ownership, and operation of two community resource centers (1340 Park Ave, Omaha, and 1330 North 40th St, Omaha). Both of these centers serve as neighborhood-based hubs where area residents gather to build relationships, receive workforce training, and organize efforts toward neighborhood change. We invite you to further explore our impact here: tiny.cc/inIMPACT

ProposalTitle

Omaha Community Land Trust

TotalBudget

5897500.0

LB1024GrantFundingRequest

5847500.0

ProposalType

Combination of capital project and service/program

BriefProposalSummary

inCOMMON is seeking funding to establish a community land trust (“CLT”) that will operate withing Qualified Census Tracts located in east Omaha. Nationally, CLTs have been shown to be a viable strategy for building generational wealth among residents facing barriers to home ownership, while providing a buffer against gentrifying forces and predatory real estate speculation. Specifically, we are seeking an investment toward the establishment of this new CLT, the purchase of the first 15 lots for this newly established CLT, and the construction and infrastructure costs associated with building our first 5 duplexes and renovating 10 single-family homes. The structure of this CLT will be “scattered site,” in that we will build on individual lots scattered throughout east Omaha. In light of inCOMMON’s established presence within the Park Avenue (South Omaha) and Walnut Hill (North Omaha) areas, we will prioritize land trust developments within these two areas.

Timeline

December 2022 – May 2023: CLT entity is established January 2023 – December 2023: 5 lots acquired; 1 home renovated; duplex design finalized January 2024 – December 2024: 5 lots acquired; 3 homes renovated; 1 duplex built January 2025 – December 2025: 5 lots acquired; 4 homes renovated; 3 duplexes built January 2026 – July 2026: 2 homes renovated; 1 duplex built

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) Long-Lasting Economic Growth (i.e., a proposal that will foster gainful employment opportunities and financial investment in the area, leading to the creation of generational wealth and widespread economic vitality in North and South Omaha) 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)

Community Needs

Other Infrastructure (i.e., develop or improve broadband, business districts, roadways, sewer, etc.) Sustainable Community (i.e., create or enhance housing, services, education, civic uses, recreation, etc.)

OtherExplanation

ProposalDescriptionAndNeedsAlignment

After generations of purposeful disinvestment and unjust, racially-driven real estate practices, several neighborhoods in east Omaha are beginning to redevelop at an accelerated rate. While this trend brings desperately needed resources into historically marginalized communities, oftentimes existing residents are excluded from reaping the benefits of this newfound revitalization. Even more, it is all too common for low- and moderate-income residents to become vulnerable to displacement from their own community altogether. Important equity issues are at stake as this phenomenon disproportionately affects people of color. COVID-19 has further exacerbated the economic and housing crisis faced by these urban populations, resulting in increased vulnerability to eviction. Eviction has a devastating toll on mental and physical health, leads to greater likelihood of homelessness and reliance on social programs, and results in reduced access to credit (Robert Wood Johnson Foundation, Health Policy Brief, April 2021). Having an eviction on one's record makes it that much harder to secure safe and stable housing in the future. With the goal of curtailing displacement through homeownership, as well as strengthening community determination and voice through cooperative community ownership, this proposal seeks to establish a new Community Land Trust (CLT) in Eastern Omaha. The resulting 15 residences will be sold to individuals and families seeking affordable homeownership opportunities. Because the cost of land (owned in perpetuity by the CLT) is removed from the total real estate costs, CLT homes can be sold below market-rate. An additional, key component of CLTs is their ability to maintain homeownership affordability for the long-term: Homeowners build a controlled level of equity throughout their residency and, if desired, can choose to capture that equity by selling at a capped, below-market rate to the next homeowner. The structure of this CLT will be “scattered site,” in that we will build on individual lots scattered throughout east Omaha. In light of inCOMMON’s established presence within the Park Avenue (South Omaha) and Walnut Hill (North Omaha) areas, we will prioritize land trust developments within these two areas. In addition to holding deep relationships in both geographies, the majority of inCOMMON staff are also residents within these neighborhoods. This program will be partially sustained by recycling proceeds from the sale of duplexes into the next round of construction costs. Specifically, we will reinvest the equity generated from the sale of the first 5 duplexes and 10 single-family homes into the development of the next series of projects. Accordingly, LB1024 grant proceeds will produce 7 duplexes and 17 single-family homes, for a total of 24 units. Additionally, we are confident that receiving the requested ARPA dollars from LB1024 would position this newly established CLT to solicit private and municipal dollars toward the development of even greater homeownership opportunities. Specifically, we will be seeking funding from Front Porch Initiatives’ Greenlining Fund and the Nebraska Affordable Housing Trust Fund to fill the gap ($110,000 per duplex and $65,000 per single-family home), in an effort to perpetuate LB1024 dollars indefinitely.

VisioningWorkshopFindingsAlignment

This project meets several opportunities and needs identified in the Visioning Workshop for both North and South Omaha (this project will serve both areas). Alignment areas include leveraging vacant parcels, community ownership, replenishing aging inventory, and investments in workforce housing stock.

PrioritiesAlignment

This project aligns with several priorities identified within LB1024 for both North and South Omaha, including: - Responding to deepened existing disparities resulting from the disproportional effects of COVID-19 within low- and moderate-income and minority communities - Targeting resources within Qualified Census tracts geographically situated in North and South Omaha - Emphasis on targeting a portion of resources toward housing needs and wealth-building among minority populations effected by historical practices such as redlining Additionally, this proposal aligns with the following goals identified in the “Omaha Housing Affordability Action Plan” (2022): - Increase the types of housing to meet current & future needs (Goal 1) - Preserve existing affordable units (Goal 2) - Foster housing innovation to lower costs (Goal 4) - Address housing instability (Goal 5) Finally, this proposal aligns with the following goals outlined in the “Housing Affordability in the Omaha and Council Bluffs Area” assessment (2021): - Accelerate affordable housing production (Goal “B”) - Preserve existing affordable housing (Goal “C”) - Foster innovations to lower housing costs (Goal “D”) - Intervention against the negative impacts of gentrification (Goal “E”)

EconomicImpact

This project will create both permanent and temporary job opportunities. The budget salary for permanent positions ranges from $50,000-$55,000. Additionally, this will project play a significant role in providing previously excluded individuals/families the opportunity to build generational wealth through homeownership. Homeownership is also correlated with educational and workforce stability.

EconomicImpactPermanentJobsCreated

1.3 FTE

EconomicImpactTemporaryJobsCreated

50

EconomicImpactWageLevels

55000

EconomicImpactAlignProposedJobs

It is a priority of this project to hire contractors located within the communities where these duplexes will be constructed. Specifically, when building in North Omaha, we will seek North Omaha-based contractors; and when building in South Omaha, we will seek South Omaha-based contractors.

CommunityBenefit

The direct community benefit of this project will be threefold. First, the project will produce 24, below-market rate homeownership opportunities, which will play a significant role in providing previously excluded individuals/families the opportunity to build generational wealth. Second, because the structure of CLTs is to ensure long-term homeownership affordability by utilizing semi-restrictive resale covenants (i.e., resold homes are limited in the amount of equity they can recapture), neighborhoods at-risk of gentrification and predatory real estate speculation are able to preserve affordability in perpetuity). Finally, as aforementioned, this project will produce both short-term (via construction) and long-term (via management of the CLT) job opportunities.

CommunityBenefitSustainability

In addition to the benefits listed above, this project will address the need for leveraging vacant properties, as identified in the Visioning Workshops. Revitalizing vacant properties results in increased tax basis for communities, stronger property values for neighboring homes, neighborhood beautification in the removal of unkempt lots, and oftentimes reduced crime activity. Additionally, it is best practice for CLT boards to be composed of community residents, “allowing for the possibility of direct, grassroots participation in decision-making and community control of local assets” (community-wealth.org). Furthermore, investments in housing are correlated with increases in regional economic growth, as well as an increase in overall community health and well-being. As noted in the Affordable Housing Study: - $8 million in local income and 122 jobs are generated from every 100 units of affordable housing. - Families in affordable housing are able to spend five times more on healthcare, 30% more on quality food, and two times more on retirement savings.

BestPracticesInnovation

CLTs are a proven homeownership and equitable neighborhood development strategy utilized across the US in over 200 communities. Although recently implemented in Lincoln, Nebraska, Omaha does not currently have an operational CLT. According to Community-Wealth.com, 79 percent of CLT residents are first-time homebuyers, 82 percent of CLT residents have incomes less than 50 percent AMI, and CLT homeowners are 10-times less likely to face foreclosure proceedings than conventional households. By establishing Omaha’s first CLT, similar individual and neighborhood development outcomes are possible for our Census Tracts most disproportionately affected by COVID-19. Additionally, by building the capacity of this first Omaha CLT through ARPA funding, the groundwork will be set for additional CLTs to emerge in our community through shared resources and learning, resulting in even greater individual and community development outcomes.

OutcomeMeasurement

- Rental vs homeownership rates (neighborhood level) - Social capital rates (neighborhood level) - Civic engagement rates (neighborhood level) - Graduation rates (neighborhood level)

OutcomeMeasurementHow

These are outcomes currently tracked by inCOMMON within our two focus neighborhoods

OutcomeMeasurementCoinvestment

Yes. These are all indicators of neighborhood stability, which supports inCOMMON’s broader mission of “uniting and strengthening neighborhoods.” We believe increased success in these metrics would spur on additional investment toward these mutually-reinforcing goals. Furthermore, we believe there is a great opportunity to solicit down payment assistance for this project, driving down the purchase price for prospective residents even further.

Partnerships

Yes

PartnershipsOrgs

inCOMMON ongoingly partners with a wide-array of community-based organizations (in 2021 these organizations included The Big Garden, City Sprouts, Coalition for a Strong Nebraska, Nebraska Civic Engagement Table, Keep Omaha Beautiful, Heartland Workforce Solutions, Goodwill Omaha, Restoration Exchange, Together Omaha, and Omaha Municipal Land Bank). For this project, NeighborWorks Lincoln has partnered through the sharing of their duplex development model, and we are pursuing Family Housing Advisory Services for homebuyer education, as well as First National Bank for financial literacy classes. Additional, prospective partners for this project include SPARK, the Omaha Municipal Land Bank, and Omaha by Design (Letters of Support included in this application).

PartnershipsMOU

None at this time

Displacement

No

DisplacementExplanation

PhysicalLocation

The structure of this CLT will be “scattered site,” in that we will build on individual lots scattered throughout east Omaha. In light of inCOMMON’s established presence within the Park Avenue (South Omaha) and Walnut Hill (North Omaha) areas, we will prioritize land trust developments within these two areas.

QualifiedCensusTract

Within one or more QCTs

AdditionalLocationDocuments

inCOMMON’s two focus neighborhoods are located within CLTs. Park Avenue includes a portion of zip code 68105, and Walnut Hill includes portions of 68131 and 68111. We will prioritize land trust developments in these areas, and commit to utilizing Omaha Economic Recovery Act resources only within Qualified Census Tracts.

PropertyZoning

Yes

ConnectedToUtilities

ConnectedToUtilitiesConnected

No

ConnectedToUtilitiesUpgradesNeeded

Yes

DesignEstimatingBidding

No

DesignEstimatingBiddingPackageDeveloped

No

DesignEstimatingBiddingCostsDetermined

Cost estimates were determined from: 1) a current development model used and shared by NeighborWorks Lincoln; 2) current cost per square foot estimates provided by an experienced contractor

GeneralContractor

No

GeneralContractorPublicCompetitiveBid

GeneralContractorPublicCompetitiveBidWhyNot

RequestRationale

Project estimates are based on current, per-square-foot, market-rate construction costs.

GrantFundsUsage

LB1024 grant funds will specifically be used for land acquisition and pre-development on 20 lots, construction of 10 duplexes (20 units), and construction of 10 single-family houses.

ProposalFinancialSustainability

Yes

ProposalFinancialSustainabilityOperations

This program will be partially sustained by recycling proceeds from the sale of duplexes into the next round of construction costs. Specifically, we will reinvest the equity generated from the sale of the first 10 duplexes and single-family homes into the development of the next series of projects. Accordingly, LB1024 grant proceeds will produce 14 duplexes and 17 single-family homes, for a total of 45 units. Further development beyond these 45 units will require funding from additional sources.

FundingSources

We anticipate seeking “Greenline” funds from Front Porch Investments, and Nebraska State Affordable Housing Trust Funds.

FundingSourcesPendingDecisions

None, to date

FundingSourcesCannotContinue

No

Scalability

Yes

ScalabilityComponents

Limited only by available resources, this proposal can be scaled multiple times over. In light of the significant availability of vacant lots in our community, financial resources are the only limiting factor for this project.

FinancialCommitment

inCOMMON is committing $50,000 of private, community-based funding to this project.

ARPAComplianceAcknowledgment

1.0

ARPAReportingMonitoringProcessAck

1.0

LB1024FundingSourcesAck

1.0

PublicInformation

1.0

FileUploads

Data table of uses (breakdown of how the requested funds will be used for your proposal) Organizational Chart Plans and detailed descriptions, including pictures and a map of the site location/surrounding area Pro Forma Proposal Budget/Sources and Uses Request Rationale Documentation