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Omaha Municipal Land Bank
1905 Harney Street, Suite 224 Omaha, NE 68102
www.omahalandbank.org
Facebook: www.facebook.com/omahalandbank LinkedIn: www.linkedin.com/company/omahalandbank/ Instagram: www.instagram.com/omahalandbank/
Shannon Snow
Executive Director
grants@omlb.org
+1 (402) 800-1235
Yes
Shannon Snow, Executive Director Deana Walocha, In-House Counsel Andrea Purdy-Steenholdt, Director of Operations Carisma Jano, Legal Assistant
The Land Bank currently employs four full-time staff: Executive Director, In-House Counsel, Director of Operations, and a Legal Assistant. The Executive Director and staff work under the supervision of a Board of Directors, which consists of seven voting members and additional nonvoting members all appointed by the Mayor of Omaha. A copy of our organizational chart is attached.
The Omaha Municipal Land Bank is the only land bank in the state of Nebraska today. Our programs, services, and statutory abilities are what differentiate the Land Bank from traditional real estate organizations. Under the Nebraska Municipal Land Bank Act, land banks have the unique ability to acquire property, extinguish any title encumbrances, and dispose of them for redevelopment. The Omaha Municipal Land Bank (OMLB)is a local, governmental, nonprofit organization that acquires, maintains, and sells vacant and distressed properties for productive use. Each year, the Land Bank maintains an average of 300 vacant properties in Omaha. Several of these properties are located in Omaha’s most underserved neighborhoods. Vacant, abandoned, and dilapidated properties result in an increase of violent crime, safety and health hazards, and depressed property values. By acquiring, maintaining, and selling these properties for strategic reuse, the OMLB is able to support long-term community redevelopment in Omaha. The Land Bank’s disposition priorities ensure that properties are sold for the highest and best use. In 2021, the Land Bank updated its polices to include prioritizing the sale of properties in historically redlined areas to residents within that community. Under this policy, the Land Bank can help ensure that residents in historically redlined communities are given the opportunity to build generational wealth through purchasing a property. The Omaha Land Bank was the first in the country to have this type of priority, and it has established itself as a national leader in diversity, equity, and inclusion. The policy itself serves as an example for other communities to incorporate generational wealth-building priorities into their processes. In October, the Land Bank board is expected to pass updated policies that will further solidify this commitment to empowering development and promoting generational wealth. This new policy prioritizes neighbors and includes language that applies to South Omaha residents. In 2021, the Land Bank sold 66 properties to buyers who had plans to expand property lines (24% of dispositions), create community spaces (13%), build new housing (38%), or build a new business (7.5%). Side lots, which are unbuildable lots, comprised 9.2% of property sales in 2021. In the upcoming years, the OMLB will continue focusing its efforts on acquiring, maintaining and selling distressed properties.
Hope Village
4400000.0
4400000.0
Capital project
Over a year ago, Nebraska Emergency Management Agency (NEMA) and the Nebraska Investment Finance Authority (NIFA) approached the Land Bank with the question “Where could we put a new neighborhood in North Omaha?” Since then, the Land Bank has partnered with both organizations and invested months in understanding what redevelopment would look like for the Hope Village area. Tucked away in a residential North Omaha neighborhood, the Hope Village is bordered by Bedford Ave to the North, Wirt Street to the South, and North 36th Street to the West. The Hope Village area is seemingly forgotten. Preliminary platted lots that were left abandoned suggests that development for the area was planned at one point. Basic infrastructure, such as roads, electricity, and sewer, are not widely available in this area. This proposal will develop vacant, overgrown and unimproved lots within our community, specifically in the Hope Village neighborhood. There are approximately 80 single family lots adjacent to Martin Luther King Elementary at 37th & Maple Street that we intend to clear, grade and provide utility service extensions and paving improvements. These single family lots have never been developed by the City of Omaha and don’t include the necessary public infrastructure. Essentially providing a shovel-ready “Hope Village” residential neighborhood that can be developed by a local home builder. This proposal will provide affordable housing options for our North Omaha community in the Malcolm X neighborhood, an area where there are numerous community assets – Martin Luther King Elementary, Adams Park, the Malcolm X Memorial Park, Omaha Street School, and Girls Inc. of Omaha, and the future Omaha Beltline Trail. This proposal will improve an area of our community that experiences illegal dumping, transient occupation, crime, vegetative overgrowth, and underinvestment. Of the parcels provided in the Exhibit, the Land Bank owns 57, or approximately 50% of the properties that comprise the Hope Village neighborhood. The Land Bank is also in the process of foreclosing on 4 parcels. An additional 35 parcels were identified for property acquisition. The Land Bank has already identified the property owners to expedite outreach should funds be awarded. Given the amount of property owned by the Land Bank and synergies to other developments in this area including the Malcolm X Memorial and NRD Trail, this area is ideal for future development. Our previous work with NIFA and NEMA in evaluating the opportunities of this site has benefits to the end developer. As stated in their letter of support, NIFA is prepared to support the next phase of development at Hope Village through programs like LIHTC and down payment assistance.
• Fall/Winter 2023—Design • Winter 2023—Bidding • Spring-Fall 2024—Construction • Fall-Winter 2024—Construction Completion • Spring 2025—Properties marketed and sold to prospective developers/homebuyers
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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) 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)
Other Infrastructure (i.e., develop or improve broadband, business districts, roadways, sewer, etc.) Policy (i.e., develop or improve context-sensitive education, finance, health, training, zoning, etc.) 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.)
Vacant and abandoned properties pose serious mental and physical health challenges for neighboring residents. Research has shown that residents who live near vacant or abandoned properties have reported feelings of fear and unsafety triggered by illegal dumping, wild animals that are drawn to these sites, and the risk of fire hazards (Hollstein, L.M., 2014). Other studies have found that deteriorating neighborhoods have shown higher rates of death caused by homicide, cardiovascular disease, and other severe health issues (Leon and Schilling, 2017). The Land Bank serves the entire City of Omaha. However, we are deeply invested in North Omaha and South Omaha neighborhoods, or areas where vacant lots are most prevalent. The U.S Department of Housing and Urban Development (HUD)defines Qualified Census Tracts (QCT) as areas in which 50% or more of the households are income eligible or have an income less than 60% of the area median gross income. There are 24 QCTs in the North Omaha area, making it an area with one of the highest rates of low-income households in Omaha. About 50% of the Hope Village area consists of vacant, distressed, and heavily wooded properties. The Land Bank owns nearly 60 vacant parcels in the area that are unmarketable given the current conditions and the lack of surrounding infrastructure. According to site assessments, lot preparation of the identified parcels would cost an estimated $4 million dollars to create marketable sites ready for new construction. Additional funding and investment would allow the Land Bank to prepare over 80 new sites for housing construction projects. The redevelopment of Hope Village will support long-lasting economic growth and fundamental change by transforming vacant and distressed parcels into potential sites for new housing, developing surrounding infrastructure, and revitalizing the neighborhood.
According to the findings identified in the Visioning Workshop Summary, North and South Omaha’s greatest needs emphasize the lack of infrastructure, the need for development that fits within the cultural context, and the need to access community resources. Based on public comments on the North Omaha SWOT analysis, community members identified the prevalence of vacant properties as a threat and a cause for the gap in development. The Hope Village redevelopment aligns with the above needs and will aim to address the community needs outlined in the Visioning Workshop Findings. Based on site assessments of Hope Village, surrounding infrastructure in this area is either not available or requires significant improvements. The Hope Village redevelopment project will focus on building new infrastructure or making necessary improvements to increase the accessibility to this area. By prioritizing the sale of these properties to historically redlined residents, the Land Bank is able to build generational wealth and support a development project that fits within the cultural context of North Omaha neighborhoods.
The Hope Village Redevelopment Plan aligns with LB1024’s strategic priorities outlined in Section 4, which includes eligible grantees in qualified census tracts and public or private entities that are working to prepare land parcels for affordable housing projects. The Land Bank’s Hope Village Redevelopment Plan aims to transform 60 vacant parcels into construction-ready sites for approximately 80 new homes. In addition, the Hope Village Neighborhood is located within Census Tract 53, which is a North Omaha Qualified Census Tract.
Due to several unknown factors (i.e., number of construction sites, buildable parcels, etc.), the number of jobs that could result from this redevelopment project is hard to predict. However, reports have consistently shown that new development projects often lead to increased employment opportunities. According to a report by the Santa Clarita Valley Economic Development Corporation, jobs in the construction sector increased by over 800 positions due to the amount of development projects underway. Another study by the National Association of Home Builders found that construction of 1,000 average single-family homes results in 2,900 full-time jobs. According to Intuit, the average annual salary for a construction worker in Omaha sits at $37,500.
1. The Land Bank anticipates hiring an internal project manager to oversee the development of these sites. This position will include oversight of the development areas, marketing, and property management of these lots.
The number of temporary or construction jobs is difficult to predict during these preliminary stages. However, we estimate at least 30 potential construction jobs. We estimate 80 new potential housing units followed by the completion of necessary lot preparation and improvements to surrounding infrastructure. Under its current policies, the Land Bank will follow its normal RFP procedures when selecting contractors to conduct the proposed plans for this project. Our procurement policy prioritizes spending amongst local and small businesses; therefore, it is likely that the selected contractors will be locally hired. Temporary or new construction jobs will most likely result from the construction of new housing projects. According to a 2020 study by the NAHB, an average of 24 different subcontractors are used to build a single-family home.
According to Intuit, a construction worker in Omaha makes an annual average salary of $37,500.
The Land Bank’s purchasing policy mirrors the City of Omaha’s Tier 1 and Tier 2 SEB (Small Emerging Business Program). This policy prioritizes the Land Bank’s spending amongst local and small business vendors. In 2021, the Land Bank invested $88,206 and supported economic growth in Omaha by hiring 10 local maintenance vendors. All of our property maintenance vendors possess strong connections to the North Omaha community. The Land Bank will follow its normal RFQ procedures as outlined in its Procurement Policy when selecting any needed services for this redevelopment project. However, the sale of properties to historically redlined residents or residents in QCTs is prioritized under our disposition policy. We believe prioritizing the sale of these properties to residents in these areas would provide ongoing opportunities for employment, new housing, and generational wealth building.
The redevelopment of Hope Village will transform the vacant and distressed properties in this area into construction-ready sites for at least 80 new housing units. In addition, this redevelopment project will aim to improve or build any necessary surrounding infrastructure to increase accessibility to the area. Approximately 60 occupied households are located nearby or within close proximity to these vacant, distressed, and heavily wooded parcels, which become common grounds for illegal dumping, attract rodents, and are risks for fire hazards. Lot preparation will involve the clearing of trees, grading, new infrastructure, and necessary rezoning or replats to create construction-ready sites. The successful redevelopment of this area will result in increased of housing opportunities and improved neighborhood environments. The availability of housing will most likely attract residents to the neighborhood.
This proposal aims to revitalize and support redevelopment in the Hope Village neighborhood by transforming the use of vacant and distressed properties in the area into new housing opportunities. By clearing the trees and other property encumbrances in nearly 60 distressed lots, this proposal contributes to promoting clean and safe neighborhood environments. Vacant and distressed properties result in increased crime rates, depressed property values, and pose serious mental and physical health risks for residents.
The Great Lakes Environmental Finance Center identified nine long-term best practices for land banks and redevelopment authorities in a nationwide study. The OMLB uses the majority of these practices, including (1) A narrow focus on the goals and objectives for vacant land reutilization. The OMLB is currently focusing on mastering its core functions: acquiring, maintaining, and disposing of property. We are not financiers or developers. (2) Employ an integrated management information system containing parcel-specific information. The OMLB utilizes ePropertyPlus, an online database, to manage properties through every step of the foreclosure, acquisition, maintenance, and disposition process. (3) Coordinate city-wide strategic vision integrated with land bank planning. The OMLB works with the City of Omaha, MAPA, and Spark CDI to align property revitalization with ongoing initiatives. (4) Clearly define the terms and conditions for the sale of properties. To purchase and close on a property from the OMLB, all buyers must demonstrate that they have secured the needed funding and have obtained building permits from the City of Omaha to conduct construction. The OMLB uses special warranty deeds to ensure completed development aligns with approved plans. (5) Pursue funding streams that are diverse, innovative, and flexible. The OMLB gains revenue through property sales, tax lien investments, grant funding, and tax recapture on sold properties.
The Land Bank will utilize the following to measure the success and outcomes of this project. • Successful lot preparation of approximately 60 Land Bank owned parcels the Hope Village Area • Acquisition and preparation of 35 additional parcels in the Hope Village Area • Creation of at least 80 new construction-ready parcels • Developed roads and improved surrounding infrastructure • Sale of 20% of properties in the Hope Village area to residents with 80% AMI.
The above outcomes will be measured by the Land Bank and its partners in this project. The Land Bank will measure lot preparation based on the successful clearing of trees, removal of trash and debris, grading, rezoning, establishment of new infrastructure, and all other necessary steps required to create construction ready sites.
Yes. The Land Bank intends to sell the lots to qualified buyers, developers, or community members who have plans to build new housing projects.
Yes
As stated in their letter of support, NIFA is prepared to support the next phase of development at Hope Village through programs like LIHTC and down payment assistance.
NIFA has provided a letter of support for the purpose of this proposal.
No
Generally described as a collection of properties (with some existing occupied residences) and bounded by North 39th Street on the west, Bedford Avenue on the north, North 36th Street/Future Beltline Trail on the east, and Wirt Street on the South. The Land Bank currently owns 56 parcels and an additional 4 parcels are in the process of foreclosure. The remaining 31 vacant lots in the area are owned by various corporations and private owners. The Land Bank has identified all these owners and intends to conduct outreach to possibly negotiate acquiring these lots. Most of the vacant lots in the Hope Village area are heavily wooded, lack necessary infrastructure, and are not accessible by developed roads.
Within one or more QCTs
Yes
No
Yes
Yes
No
No
Based on site assessments conducted by Lamp Rynearson, the cost to acquire other vacant parcels in the area and build needed infrastructure could cost an estimated $4 million dollars. The attached budget is in the appropriate range to make a significant impact on the infrastructure and development in the Hope Village area.
LB 1024 grant funds will be used specifically to conduct redevelopment in the Hope Village area. Funds will be used to execute the overall redevelopment of Hope Village, which will include but is not limited to the following: • Acquisition of approximately 35 vacant parcels in the Hope Village area • Lot preparation of approximately 56 Land Bank owned parcels to create construction-ready sites for new housing • New or improved infrastructure in the surrounding area (i.e., developed roads, sewer, utilities)
Yes
Following the preparation of the identified parcels and the surrounding infrastructure, the Land Bank intends to sell the properties for new housing projects. The Land Bank will then re-invest the proceeds from these property sales into its land acquisition or lot preparation program.
Currently, the Land Bank does not have other funding sources available for this development. However, if funds are awarded under LB1024 the Land Bank would work closely with partners like NIFA to find opportunities to ensure the funding of structures on the site.
No
Yes
Yes. This project may be scalable depending on the availability of funding.
The Land Bank does not have funds secured for this project, however, we have the internal staff and systems to appropriately monitor and report on grant funds received. The Land Bank has the legal resources necessary to clear any title encumbrances on additional vacant properties it acquires. It has the internal resources and staff needed to oversee the marketing and sale of the properties after completion. It may explore hiring additional staff such as an owner’s representation firm or a project manager to provide additional oversight on projects conducted in the area.
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Additional Location Documents (see application for list) Documentation of site control (proof of ownership, option, purchase contract, or long-term lease agreement) Organizational Chart Plans and detailed descriptions, including pictures and a map of the site location/surrounding area Pro Forma Proposal Budget/Sources and Uses