This report highlights progress toward the City of Lincoln's goal to support 5,000 new, rehabilitated, or subsidized affordable housing units by 2030. This 5,000 unit goal was announced by the Mayor at her State of the City address in October of 2020.
Affordable housing is defined by the U.S. Department of Housing and Urban Development (HUD) as an occupant paying no more than 30 percent of gross income for housing costs, including utilities. In addition, housing is considered affordable for homeowners who are at 80% or below of Area Median Income (AMI), and renters at or below 60% AMI.
The City of Lincoln is ahead of its goal of 5,000 new, subsidized, or rehabilitated affordable housing units by 2030.
The City of Lincoln's fiscal year runs September 1 — August 31.
The City supports affordable housing in three major categories:
The City provides financial support through Tax Increment Financing (TIF) and other incentives for projects that build new affordable residential units. A project may include all affordable housing or a mix of affordable and market rates. If mixed, only the affordable units are counted toward the goal. New construction is further supported through grants to NeighborWorks Lincoln, Habitat for Humanity and other non-profit organizations.
Providing rent support to a tenant can make a previously unaffordable unit become affordable. The City has provided funding support to create additional rent support vouchers for tenants working through Lincoln Housing Authority programs. The City has also included requirements for projects to accept rental vouchers when those projects are signing a redevelopment agreement that provides TIF.
The City offers financial assistance and program support to help improve and prevent the loss of existing affordable housing. By addressing issues such as safety concerns or substandard conditions, this support restores or maintains these units for safe and affordable residential use.
Programs and funding help support both owner-occupied and rental units. Low- and moderate-income homeowners who meet income criteria can use funds for qualified rehabilitation projects. These projects aim to bring owner-occupied housing up to Housing Rehabilitation Standards or eliminate conditions that pose an immediate threat to the health and safety of residents.
For rental units, the City has started a demonstration project in the South of Downtown area using local funds, like TIF to improve rental units. In return for the funding, property owners agree to maintain the rents at affordable levels for a designated, negotiated, number of years. The desire is to expand the program into other neighborhoods if additional funding is identified.
The City of Lincoln operates with the U.S. Department of Housing and Urban Development’s definition of affordable housing in which, “the occupant is paying no more than 30 percent of gross income for housing costs, including utilities.” In addition, housing is considered affordable for homeowners who are at 80% or below of Area Median Income (AMI), and renters at or below 60% AMI.
The City and community partners have developed a comprehensive vision and plan to support affordable housing: Lincoln Affordable Housing Coordinated Action Plan
Tools and programs referenced in the Plan and used within our community include:
These are just some of the programs, tools, and community partners that are working to increase affordability within Lincoln.
The U.S. Department of Housing and Urban Development's website contains additional information on affordable housing including housing support programs and definitions, rental assistance, rent relief, homeownership, and more.