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Housing Development Loans

Are you developing affordable housing or workforce housing in rural Nebraska? Are you a nonprofit or for-profit developer? Are you an emerging or established developer?

The Center is now lending in housing development, financing both affordable housing and workforce housing. 

Since beginning housing development lending in 2024, the Center has lent $4.6 million to five projects in four communities, leveraging $8.5 million in other capital and supporting the development of 50 units of housing.

We expect to do $7 to $10 million of housing development construction loans in the next two years. Are you our next partner?

Projects

Six people in business clothes holding shovels, scooping up a mound of dirt in a ground breaking.
Grand Island

Three for-rent five-plex buildings in a new mixed-income and mixed typology development. Partnership between local nonprofit and a for profit developer. Led by Central Nebraska Growth Foundation and Hoppe Development.

Two story building taken from the corner. Light bricks are on the second story and red bricks are on the first story. Single windows line the second story and double windows line the first.
Minden

Rehabilitation of 5 upper-story rental units in a historic Main Street building. Led by Jacob Refert/Longshot Properties.

A row of single story houses under construction. The houses don't have siding yet and have shingles on the roofs. A concrete pad is in front of each house and it's all surrounded by bare brown dirt.
Columbus

For sale manufactured housing units, the Center made a loan to a nonprofit developer, Neighborworks Northeast.

What others are saying

Housing Development Loan details

The Center for Rural Affairs makes loans to support the development of affordable and workforce housing in Greater Nebraska. We work with communities, developers, and builders to help finance projects that might not otherwise happen. 

Eligibility

Housing development loans are available to support new construction and rehabilitation projects in Greater Nebraska. 

A State of Nebraska Rural Workforce Housing Fund (RWHF) award is designated for the communities of Madison, Schuyler, and York. Once RWHF funds revolve, they will be available to relend in all eligible Nebraska communities.

Projects are most likely to be approved when the borrower contributes at least 10 to 20% equity.

Uses of funds

Loans may be used for the following purposes:

  • New construction of owner-occupied or rental housing in a community with demonstrated workforce housing needs
  • Substantial repair or rehabilitation of dilapidated housing stock, for which the cost to rehabilitate exceeds fifty percent (50%) of the unit’s assessed value
  • Upper-story housing development
  • Rehabilitation that includes the conversion of an existing building into housing 

For RWHF, owner-occupied housing units, costs cannot exceed $325,000 per unit. For rental units, costs cannot exceed $250,000 per unit.

Loan details

Maximum loan amount: $3 million

Terms: Focus is on construction or rehabilitation and mini-perm loans up to 24 months. In limited cases, longer terms may be considered. 

Rates and fees: Interest rates are typically between 5% and 7%, with a closing fee of 1%.

Interested in partnering with us? Reach out to Andi McClintic, Associate Director of Lending Services, at 308.833.0260 or [email protected]. To apply, click here.