City commits up to $500,000 for potential housing grant funds

    Earlier this year, the Imperial city council decided to go after a potential $1 million grant for residential housing that requires a 50% match.
    The application for the Rural Workforce Housing Fund grant is due this week, requiring the city to list how their 50%, or $500,000, match will be supplied.
    On a 4-0 vote Monday, the council approved earmarking up to $500,000 from the city’s LB 840 sales tax funds for economic development for that match.
    This grant, if received, would be for construction of market rate housing, meaning income guidelines are not required.
    If the full grant is received, the $1.5 million would be placed in a separate account. Low-interest loans from it could be applied for by legitimate contractors, according to Monday’s discussion.
    The idea, explained Community Development Director Tyler Pribbeno, is to get contractors to apply for loans, build the home, then put it on the market to sell.
    Rental housing could also be constructed with the funds, he said.
    Once the contractor’s loan is paid back after the home sells, that money goes back into the fund to keep it self-perpetuating. Builders have a year to construct the home or rental property.
    The funds can be used for residential structures only.

    The city is working with West Central Nebraska Development District on the grant application.
    WCNDD Director Amber Kuskie was in Imperial for Monday’s council meeting, and said her agency will serve as the grant applicant and be the money lender.
    Contractors seeking the funds must go though an application process, she said.
    Pribbeno said the city has a commitment of $45,000 from other sources to help with the city’s grant match requirement—$25,000 from the Imperial Public Power District board and two $10,000 pledges from a pair of local businesses.
    He said they hope to make some other business contacts for support.
    Pribbeno and Kuskie both compared this housing grant program to getting $3 out of a $1 investment.
    City Attorney Josh Wendell  reminded council members there is a process established for awarding LB 840 sales tax funds in Imperial. The approval is supposed to go through the Citizens Advisory Council first, then to the council for approval.
    Clerk/Administrator Jo Leyland noted that if the CAC says no to the request at an upcoming meeting, the grant application would have to be dropped.
    Kuskie said the city can deny the grant if that happens and the city is successful in gaining the funds.  
    Grant awards are expected to be announced May 12.
    Watch next week’s issue for more on Monday’s meeting.