Imperial workforce housing efforts get $1 million boost

    Efforts to add more residential housing in Imperial got a big boost last week when city officials learned a $1 million grant was awarded to the community.
    Imperial was among the recipients of a total of $22,825,000 in grant awards from Nebraska’s Rural Workforce Housing Fund.
     Authorized by the Rural Workforce Housing Investment Act of 2017, the money is earmarked to aid communities to add quality, affordable housing to accommodate growth.
    Tyler Pribbeno, City Administrator and Community Development Director, was thrilled with the news.
    He learned of the Department of Economic Development grant award last Thursday from Amber Kuskie, executive director of West Central Nebraska Development District, which applied for the funds on Imperial’s behalf.
    “I thought it was a joke because I didn’t think grants would be announced until Friday,” Pribbeno said.
    He than contacted Mayor Craig Loeffler and council members with the news.
    WCNDD served as the city’s grant applicant, he said, because it has the non-profit status required to apply for such housing funds, he said.
    It was also helpful to have them submit the application as city office administration was in transition, he added.
    Receipt of the $1 million DED grant requires $500,000 in local money for a $1.5 million total fund.
    The biggest chunk of the local money will be $455,000 from the city’s economic development sales tax fund, along with $25,000 from Imperial Public Power District and $10,000 each from Imperial Beef and Pinnacle Bank.
    DED administers the RWHF program on behalf of the State of Nebraska through a competitive application process. The department then partners with recipients to provide input regarding project design, development and implementation.
    Pribbeno, who said he foresees it operating as a revolving loan program, hopes they will be ready for applicants by mid-summer.
    He encourages builders and developers to contact him now if interested, so work can begin as soon as the program is in place.
    Funds are expected to have a lower interest rate than other lenders, he said.
    Low-interest loans from the fund could be applied for by legitimate contractors or developers, he said.
    The idea is to get contractors to apply for loans, build the home, then put it on the market to sell, according to past city council discussions.
    Once the contractor’s loan is paid back after the home or rental sells, that money goes back into the fund to keep it self-perpetuating. Builders have a year to construct the home or rental property, according to guidelines.
    Grant stipulations require that the home cannot be sold for more than $325,000. Rentals have a maximum selling price of $250,000.
    These will be “market-based” homes or rentals, meaning income of the buyer will not be a factor, he added.
    That’s different from many of the past housing projects, when income of the occupant was considered on whether they could rent or buy the home.
    Pribbeno said that’s one of the reasons the grant funds were attractive.
    In a recent Imperial housing survey, Pribbeno said it was clear the need for workforce housing is high, and it crosses all levels, from a need for rentals to more expensive homes.
    This is the second major grant Imperial received this year.
    Imperial also received a $562,000 state grant for development of City Square. That required a 100% local match of $562,000. Much of that match will come from $400,000 remaining in COVID funds received by the city.
    “It’s been a good year for the community,” Pribbeno said.