Impact Fees - Low and Moderate Income Housing

Owner-Occupied Housing Tenant-Occupied Housing

Owner-Occupied Housing

Low Income

The impact fee ordinance provides a 100% exemption from impact fees for eligible low income individuals.

Low income is defined as having a household income that is 60% or less of the area median gross income, adjusted for household size.

Moderate Income

The impact fee ordinance provides a 50% exemption from impact fees for eligible moderate income individuals.

Moderate income is defined as having a household income of more than 60% but less than 80% of the area median gross income, adjusted for household size.

2023 HUD Income Limits

Size of Household Low Income Limit (60% median income) Mod. Income Limit (80% median income)
1 $40,320 $53,700
2 $46,080 $61,400
3 $51,840 $69,050
4 $57,540 $76,700
5 $62,160 $82,850
6 $66,780 $89,000
7 $71,400 $95,150
8 $75,960 $101,250

Source: U.S. Department of Housing and Urban Development

Effective June 15, 2023

Requirements

  • Part (i) Purchase price of the home does not exceed the FHA mortgage limit for Lincoln Area as determined by the United States Department of Housing and Urban Development (HUD). The limit is included to ensure the reimbursement program is not abused and is consistent with limits of Federal low and moderate income housing programs.
  • Part (ii) Requires that the person have an income 80% or less than median taxable income adjusted for household size. Previous year's 1040 tax return form - signed and dated - is used as income verification.
  • Part (iii) Establishes that a person may only receive this reimbursement once in a five year period.
  • 27.82.080 (c) Provides that the application for the reimbursement must be made no later than 10 days following the execution of the purchase contract.

Application Process & Forms

  • Within 10 days of execution of the Purchase Contract, Homebuyer must contact Impact Fee Administrator to make application for Exemption Refund of the Impact Fees.
  • Homebuyer will provide, at time of application, a copy of the signed Purchase Contract, Form A, C, (if applicable) D, and proof of income to the Impact Fee Administrator.
  • Once eligibility has been determined, Impact Fee Administrator provides, via fax, an “Exemption Certificate Letter” to the Lender.
  • Builder makes application for Building Permit, pays the applicable impact fees and provides signed Form B to the Impact Fee Administrator through Building & Safety.
  • Form B must be in Impact Fee file before reimbursement can take place.
  • Escrow closing company will receive notification of exemption from lender. Escrow closing company will contact Impact Fee Administrator seven days in advance of anticipated closing to allow adequate time to have check cut from City of Lincoln, payable to Homebuyer(s) and Title Company.

Filling Out Forms

Forms A, B, C and D are in Adobe Acrobat (PDF) format. To fill out forms, please tab to each field, type contents and print when complete.

Form What Do I Need? Who Completes This Form?
Copy of Purchase Contract on House Builder
Copy of the Previous tax year 1040 tax returns, signed and dated, from household members OR Self-Employment Documentation. Your Records
(Homebuyer)
Form A(PDF, 18KB) Completed Family Income Worksheet Signed Purchaser Statement. Homebuyer
Form B(PDF, 30KB) Signed Builder/Developer Statement. Builder
Form C(PDF, 26KB) Documentation Checklist with Supporting Document(s) attached. Homebuyer
Form D(PDF, 34KB) Impact Fee Refund Household Income Worksheet (If you are not required to file federal income taxes, recent statements of income will be required from all income recipients, over the age of 19, living in the household to determine gross income using this worksheet.) Homebuyer
If Self Employed:
1099 for commissions for past 2 years Your Records
1065 & K-1 tax returns Your Records
1120 tax forms Your Records

Mail Completed Forms To:

Transportation and Utilities c/o Impact Fees Administrator 555 South 10th Street, Suite 203 Lincoln, Ne 68508-3994

Tenant-Occupied Housing

This refund is limited to Low-to-Moderate Income Rental Housing located outside of a low to moderate income area.

Low Income

The impact fee ordinance provides a 100% exemption from impact fees for a tenant-occupied unit which is restricted to rental to a low income household.

Low income is defined as having a household income that is 60% or less of the area median gross income, adjusted for household size.

Moderate Income

The impact fee ordinance provides a 50% exemption from impact fees for a tenant-occupied unit which is restricted to rental to a moderate income household.

Moderate income is defined as having a household income of more than 60% but less than 80% of the area median gross income, adjusted for household size.

2023 HUD Income Limits

Size of Household Low Income Limit (60% median income) Mod. Income Limit (80% median income)
1 $40,320 $53,700
2 $46,080 $61,400
3 $51,840 $69,050
4 $57,540 $76,700
5 $62,160 $82,850
6 $66,780 $89,000
7 $71,400 $95,150
8 $75,960 $101,250

Source: U.S. Department of Housing and Urban Development

Effective June 15, 2023

Requirements

This incentive is available only to units for which rent is restricted under local, state or federal regulations, or has a land use restriction agreement (or similar legal document) running with the property for an initial period of at least fifteen years.

Application Process

To apply, or if you have questions, please call the Impact Fees Administrator at 402-441-7539.

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