It's a record worth celebrating: in Lincoln, Nebraska, 321 public housing families have been able to buy a home and live the American Dream. HUD's Omaha Office and the Lincoln Housing Authority (LHA) kicked off National Homeownership Month with a celebration/open house at the latest home built under the LHA's Homeownership Program.

The Lincoln Housing Authority has very effective - in fact, award winning - homeownership programs that over the past 12 years have provided down payment assistance and lease-purchase options for low-income families. Through an innovative partnership with Lincoln's Public Schools, the LHA also has had eight homes built for sale to public housing residents, with virtually all of the construction work performed by students from Lincoln Northeast High School (the only work they didn't perform required a licensed contractor).

Earlier this year, the Lincoln Housing Authority and the Lincoln Public Schools were honored with a "Best in America Living Award" by the National Association of Home Builders, Professional Builders Magazine, and the Department of Housing and Urban Development. This competitive, national award was given for the quality of design for two lease-purchase homes that were in-fill units in a neighborhood with traditional 20th century bungalows. The national award was presented in a February ceremony in Atlanta, but as part of National Homeownership Month, a local presentation was made to board members of the Housing Authority and Public Schools by Stan Quy, HUD's Omaha Office Director. In addition, Bob Freese, instructor at Lincoln Northeast High School, was presented with an "honorary hammer" for his role in the home construction partnership.

Lincoln Mayor Don Wesely issued a proclamation recognizing June as Homeownership Month in the City of Lincoln. (Left: Mayor Wesely; HUD's Stan Quy; Marc Wullschleger, Lincoln Urban Development Director; and Larry Potratz, Lincoln Housing Authority Director.) The Omaha HUD Office has scheduled four additional Homeownership Month events during the month of June.

Created in 1995, the Lincoln Housing Authority Lease Purchase Program sells homes built by Lincoln Northeast High School students; one house is built each year. The Lincoln Northeast House Project combines a number of highly desirable goals into one project: it produces an affordable housing unit; creates a homeownership opportunity for a family now living in public housing; offers a hands-on educational opportunity for at-risk young men and women; and attracts and trains students to work in Lincoln's construction industry - where there is a shortage of trained workers.

The project is a joint venture of the Lincoln Housing Authority and the Lincoln Public School system. Students in Lincoln Northeast High School's residential construction classes build a single-family house each year for the Housing Authority. The Housing Authority provides the site for the project and hires a general contractor. The general contractor purchases building materials and supervises work items which must be completed by sub-contractors with a high level of expertise such as plumbing, wiring, heating, air conditioning and concrete work. The students routinely perform such tasks as framing, exterior siding, drywall and finish carpentry. The work is completed during the school year, from September to June.

Tenants rent the house, for five years, with the understanding that they will buy the house at the end of the lease period. A portion of the monthly rent is used to purchase insurance and reduce the principle on the purchase price, the remainder is placed in an escrow account which accumulates towards a down payment on the house. At the end of the five years, the tenant must seek permanent financing for the balance of the purchase price through normal real estate lending channels. The Housing Authority recovers most of its costs to build the house at the sale. To date, five houses have been leased under the program. Three of the home buyers have been able to close on the purchase of their house prior to the expiration of the five year lease period. The homes are affordable for families with incomes as low as $25,000.

In general, it costs from $75,800 to $80,500 to build the 1,000 square foot houses. The three bedroom, one and three-quarter bath houses have full basements, air conditioning, stoves and refrigerators and, in some cases, an attached garage. The purchase price is the Housing Authority's actual cost to build the house. The home buyer recognizes a significant cost savings due to the use of student labor to build the house. The only cost to the Housing Authority is staff time (generally 100 hours per year). The Housing Authority recovers all other construction costs (the lot, building materials, contractor expenditures, etc.) at the time the house is sold to the tenant.

Enrollment in the high school's construction program has dramatically increased over the project's history. The first house was built by 16 students, the second house by 28 students, the third house by 34 students. The two most recent houses involved more than 40 students. A number of students who participated in the project have found employment in the construction field and/or pursued further education in the construction trades at a local community college.

Interested in becoming a homeowner? Get help and information on HUD's National Homeownership Month web site.