The Nebraska Housing and Community Development Consolidated Plan ("the Consolidated Plan") is a comprehensive planning document identifying the state's overall needs in housing, homelessness, and community development. Covering all areas of the state except metropolitan Omaha and Lincoln, the Consolidated Plan establishes funding priorities for these programs, outlines strategies, and identifies a one-year action plan.

The State must complete the Consolidated Plan to receive federal funds for the Community Development Block Grant (CDBG), the Emergency Shelter Grant (ESG), HOME Investment Partnerships (HOME) program, and Housing Opportunities for Persons with AIDS (HOPWA).

The State views this as an opportunity to extend and strengthen partnerships among organizations in the public, private, and nonprofit sectors. The goals of the plan are to provide decent housing, maintain a suitable living environment, and expand economic opportunities for all Nebraskans. The challenge for the Department of Economic Development, as the lead agency for the Consolidated Plan, is to find streamlined approaches to meet these goals that use limited resources more effectively.

In summary, Nebraska's Consolidated Plan serves the following functions:

• A planning document for the State which builds on a comprehensive consultation and citizen participation process;
• An application for federal funds under HUD's formula grant programs;
• A strategy for community development, homelessness, and housing; and
• An action plan that provides a basis for assessing performance.

The Consolidated Plan uses several information sources to determine needs, including existing research, 1990 census data, surveys, public forums, and focus groups to estimate housing and community development needs for greater Nebraska. Each need is explained in more detail in Part Two of this document.

Housing Needs

Two primary needs: available and affordable housing

Available, affordable housing is an economic development issue. Future growth in Nebraska communities will be directly linked to the provision of affordable housing. Many communities experienced tremendous economic growth, but have been unable to meet the demand for additional housing. For communities to survive in the global economy, the need for available and affordable housing must be addressed. Housing conditions and markets aren't universal throughout Nebraska. In addition to economic growth, housing needs often reflect the socioeconomic composition of the community, county and region. For citizens, housing needs can vary by householder, tenure, age income, and other special needs.

Nebraskans prefer home ownership by a margin of 2:1; this preference in non-metropolitan ares of the state is even higher.

Issues facing rural communities include:

• a vacancy rate of less than one percent (compounded by a severe deficit of affordable rental housing);
• a shortage of housing builders and contractors;
• existing builders with full workloads;
• old and poor quality housing stock;
• fewer available local financial resources compared to metropolitan areas;
• lower average income levels, making affordable housing out-of-reach for more families.

Estimates for non-metropolitan Nebraska in the year 2000:

• Population will increase by 23,140 households (an increase of 5,280 owner households and 17,860 renter households);
• 35% of all renter households and 17.5% of owner-households will experience a housing cost burden;
• Total housing demand, from 1995 to 2000, will be 39,241 units; and
• 18,580 units of affordable housing will be needed, 13,596 rental and 4,984 non-rental.

Homeless Needs

The greatest need is for a better linkage of housing and supportive services. Such a link keeps people from becoming homeless, and provides them with better housing options. For many persons with special housing needs, a stable environment requires both housing assistance and supportive services. For others, the main special need is for housing that is physically adapted to their requirements.

For all the groups with special housing needs, the most important and essential need is for more affordable housing units. Funding for capital costs, the ongoing provision of services, and an increase in the capacity of local organizations are essential to the development of appropriate and adequate special needs housing.

A need also exists to further develop and coordinate a continuum of housing in the state, ranging from homeless prevention, outreach, assessment, crisis shelter, supportive shelter, transitional housing, and permanent housing.

Non-Housing Community Development Needs

These needs are defined two ways: in terms of the CDBG program and in terms of the State's overall community development delivery system.

CDBG Needs:

Economic development; public works improvements/community facilities; business assistance, and planning

State Community Development Delivery System Needs:

A "focal point" for community development at the State level -- increased local capacity to solve development problems; increased streamlining of State services, programs, and funding; resources for community-based economic development.

Market Analysis

Nebraska's housing market must meet population changes and consumer behavior. To accomplish this objective, the housing market's supply of units must be sufficient to accommodate the formation of new families and to provide opportunities for families to change their housing due to an increase/decrease in family size, income status, or simple consumer preference (type of demand for housing).

The foremost influence on the housing market is demand, followed by changes in vacancies, units removed from the market, and housing costs. Local and regional economic trends also influence the housing industry. The employment rate and population growth also influence the housing market.

Strategies developed through consultation with the Nebraska Affordable Housing Commission, the Nebraska Interagency Council on the Homeless, the CDBG Advisory Committee and the Community Development Consulting Committee (see "Citizen Participation and Consultation Plan"). Strategies outlined in Part Four are summarized below.

Housing Priority

Increase housing production to ensure an adequate, appropriate and affordable housing supply to meet community economic development needs.

Strategy One:

Increase cooperation among governmental entities, housing providers and the lending community, promote participation of these groups in programs and partnerships to produce housing.

This strategy promotes the effectiveness and availability of resources for affordable housing.

Objectives:

• Establish a nonprofit Nebraska Housing Partnership to facilitate housing production and broaden financial resources. With substantial leadership from the lending community, the private sector and government, such a partnership can achieve objectives beyond the capacity of separate individual organizations.
• Convene regular meetings and provide staff support for the Nebraska Affordable Housing Commission (NAHC) to monitor State housing needs, design proactive policies based on needs, provide advice to the legislative and executive branches, and develop programs to improve housing opportunities.

Strategy Two:

Increase the number of new housing units available in the state.

Objectives:

• Increase the amount of financial resources invested in housing programs and projects.
• Encourage communities to identify low-income households paying more than 30% of their income for housing, or who are homeless. Direct resources to communities and projects with "worst case" housing needs.
• Develop new incentives for private investment to build low-maintenance energy efficient, affordable housing.

Strategy Three:

Create and increase production capacity of local governments, nonprofit housing providers, and the for-profit sector to produce affordable housing.

Objectives:

• Use Home and CDBG Technical Assistance funds to help local governments, nonprofits and private businesses form coalitions to design and implement their own housing programs;
• Provide training and technical assistance to help local governments and housing organizations gain necessary skills to undertake housing projects;
• Offer educational programs to help local officials identify cost reduction opportunities in housing, including regulatory barriers;
• Provide technical assistance to community housing development organization (CHDO) projects;
• Create job training opportunities and programs in the housing construction industry to address the need for more contractors and skilled construction labor;
• Expand the authority of Nebraska communities to use state law to increase housing opportunities;
• Invest CDBG housing funds so that local governments can leverage private financing to provide for permanent, energy-efficient, affordable housing.

Strategy Four:

Increase education and training for public awareness of housing issues.

Objectives:

• Promote public awareness and education of housing rights, needs, expectations, and responsibilities;
• Promote public awareness of historic preservation and its role in housing development.

Strategy Five:

Address special housing needs in two ways: increase partnerships between government agencies and organizations providing services to persons with special needs; provide outreach to facilitate communication and capacity building for organizations addressing these needs.

Objectives:

• Encourage Congress to amend the Housing and Community Development Act of 1974 to allow state government(s) to award CDBG and HOME grants directly to Indian Reservations;
• Develop reservation-based nonprofit construction companies to increase opportunities for home ownership on Indian Reservations;
• Support affordable housing for persons with physical disabilities through the use of HOME funds;
• Explore ways to increase the linkage between housing and supportive services.

Homeless Priority

Provide a continuum of housing opportunities and supportive services for homeless persons, while reducing homelessness through educational outreach and prevention activities.

Strategy One:

Implement a statewide comprehensive plan to address homelessness using a "continuum of care" approach to identify needs and outline strategies to acquire federal and state resources.

Objectives:

• Establish a statewide, systematic data collection process for homeless information, including periodic counts and service inventories;
• Complete a statewide analysis of the causes of homelessness in Nebraska:
• Make recommendations to maximize service delivery;
• Identify gaps in services for the homeless and make recommendations for actions that can bridge those gaps;
• Develop short-term action steps and long-term strategies to implement the continuum of care approach including prevention, outreach, assessment, crisis shelter, supportive shelter, transitional housing and permanent housing;
• Increase the linkage between housing and supportive services;

Strategy Two:

Develop and launch an informational and educational campaign to raise consciousness about the needs of homeless persons.

Objective:

• Develop educational strategies in cooperation with the Nebraska Interagency Council on the Homeless (NICH);
• Continue to convene regular meetings and provide staff support for the NICH to monitor state homeless needs, design proactive policies based on needs, provide advice to the legislative and executive branches, and develop programs to improve housing opportunities.

Economic Development Priority

Strategy One:

Fund quality economic development projects that meet the above priority, including (but not limited to) support of manufacturing, the service sector, research and development, warehousing and distribution, tourist attractions, and transportation.

Objective:

• Support projects which expand the state's economic base and create quality jobs for low- and moderate-income families.

Strategy Two:

Fund quality community development projects that meet the above priority, including (but not limited to) the provision for investments in effective and affordable infrastructure to communities that invest in long-term development.

Objective:

• Support projects for comprehensive revitalization and public facilities.

Strategy Three:

Fund quality business development projects that meet the above priority, including (but not limited to) support of entrepreneurial opportunities and continued education/training processes that foster quality jobs.

Objective:

• Support projects that provide for small business development and job training.

Strategy Four:

Summary of the CDBG Non-Housing Community Development Priorities:

• Strengthen Nebraska communities by targeting serious community development problems capable of being resolved.
• Fund quality planning projects that meet the above priority, including (but not limited to) support of local assessments of community development needs.
• Develop options for meeting the needs for, and packaging of, work plans that lead to successful projects.

Objective:

• Support projects that give communities the opportunity to solve problems and meet citizen needs through local planning processes.

Community Development Delivery System Priority

Increase the effectiveness of community development programs and services in the state through greater streamlining and collaborative approaches focusing on customer need.

The State lacks sufficient resources to address all existing needs. Increased communications among statewide community development entities is no longer enough. The State must therefore find innovative ways to deliver funding, programs, and services.

Strategy One:

Improve Coordination of Funding for Community Development.

Objectives:

• Revise the application review and coordination process through coordination of applications/commitment date and exploration of a joint application process involving programs from several state agencies;
• Implement a consolidated program year;
• Explore joint training and technical assistance on regulatory requirements.

Strategy Two:

Create a Community Development "Focal Point" within State Government to improve service/program delivery, and to increase resources available to address the development needs.

Objectives:

• Establish an active interagency working partnership to explore streamlining and consolidation of community development programs and services at the state level.
• Identify appropriate examples of cooperative community development efforts.

Strategy Three:

Improve access to community development services, programs, and information.

Objectives:

• Establish a community development database listing existing information from state agencies and an inventory of program requirements.
• Make program information, applications, and technical assistance accessible by computer/modem;
• Explore the formation of interagency, community-based technical assistance teams;
• Investigate the establishment of community-based "one-stop" shops for assistance to communities and citizens;
• Establish consolidated applications for specific categories of community development needs such as infrastructure, public facilities, public services, business development, etc.;
• Explore additional opportunities for streamlining other than geographic -centralization of facilities that negatively affects rural communities.

Strategy Four

Use other methods besides funding to increase the effectiveness of community development programs and services in the state by building local capacity.

Objectives:

• Promote Local Community Development Strategies (NCIP & Community Builders);
• Periodically re-examine the distribution of CDBG funds for Planning;
• Provide CDBG grantees with information on economic opportunities.

Purpose of the Consolidated Plan

In addition to assessing needs, the Consolidated Plan establishes funding priorities for these programs, outlines a five-year strategy to address the priority needs, and identifies a one-year action plan with a basis for assessing performance.

Mandated by the U.S. Department of Housing and Urban Development (HUD), the Consolidated Plan replaces the Comprehensive Housing Affordability Strategy (CHAS) with a rule that consolidates the planning and application aspects of the above four HUD programs. These programs cover all regions of the state except metropolitan Lincoln and Omaha. As entitlement areas, Lincoln and Omaha receive funds for these programs directly, so HUD requires that the two cities prepare their own Consolidated Plans.

The State views this mandate as an opportunity to extend and strengthen partnerships among organizations in the public, private, and nonprofit sectors. The goals of the plan are to enable these organizations to provide decent housing, establish and maintain a suitable living environments, and expand economic opportunities for all Nebraskans, particularly for very low income and low income persons. The challenge for the Department of Economic Development, as lead agency for the Consolidated Plan, is to find streamlined approaches to meet these goals that use limited resources more effectively.

In summary, Nebraska's Consolidated Plan serves the following functions:

• A planning document for the State which builds on a citizen participation process;
• An application for federal funds under HUD's formula grant programs;
• A strategy for the state to follow for its HUD programs; and
• An action plan that provides a basis for assessing performance.

According to HUD, the Consolidated Plan creates the opportunity for strategic planning and citizen participation to take place in a comprehensive context; it allows local governments, community organizations, developers, and citizens to address the larger picture in which the programs operate and it offers the state a better chance to shape the various programs into effective, coordinated strategies.

Strategies and recommendations were developed with consultation from advisory groups, local community leaders, concerned citizens, nonprofit organizations, advocacy groups, the private sector, and representatives of state agencies. HUD requires a number of specific elements for a state Consolidated Plan including:

• an assessment of housing, homeless needs for the ensuing five-year period; an analysis of the state's housing markets;
• a discussion of the state's strategies, priority needs, and objectives for housing and community development activities;
• an action plan that describes the state's method for distributing funds to carry out activities using finds that are expected to be received under formula allocations and other HUD assistance during the program year.

Applicants of the HUD funding sources identified below must obtain a Certification of Consistency from the lowest level of government that has an approved Consolidated Plan. Omaha and Lincoln must have their own Consolidated Plans, so any applications from these communities must be consistent with the respective local Plans. All other applicants will obtain the required certification from the Nebraska Department of Economic Development. An application from any entities is consistent with the State's Consolidated Plan if the activities in the application were given priority in the Five-Year Plan, and if the location of the project is consistent with the geographic areas identified in the Plan. All other programs not listed do not require consistency with an approved consolidated plans. However, HUD funding allocations for the Section 8 Certificate and Voucher Program are to be made in a way that enables participating jurisdictions to carry out their consolidated plans.

1. HOPE 1:Public Housing Home Ownership Program (see 24 CFR subtitle A, appendix A);
2. HOPE 2:Homeownership of Multifamily Units Program (see 24 CFR subtitle A, appendix;
3. HOPE 3:Homeownership of Single Family Homes Program (see 24 CFR Part 572);
4. The Low Income Housing Preservation (prepayment avoidance incentives) Program, when administered by a State agency (see 24 CFR 248.177);
5. The Supportive Housing for the Elderly (Section 202) Program (see part 889);
6. Supportive Housing for Persons with Disabilities (Section 81 1) Program (see part 890);
7. The Supportive Housing Program (see part 583);
8. The Single Room Occupancy Housing (SRO) Program (see part 882, subpart H);
9. The Shelter Plus Care Program (see 24 CFR part 582);
10. The Community Development Block Grant Program - Small Cities and Insular Areas (see 24 CFR part 570, subparts E and F);
11. HOME Program reallocations;
12. Relocation of Severely Distressed Public Housing (section 24 of the United States Housing Act of 1937);
13. HOPE for Youth: Youthbuild (see part 585);
14. The John Heinz Neighborhood Development Program (see 24 CFR part 594);
15. The Lead-Based Paint Hazard Reduction Program (see 24 CFR part 35);
16. Grants for Regulatory Barrier Removal Strategies and Implementation (section 1204, Housing and Community Development Act of 1992); and
17. Competitive grants under the Housing Opportunities for Persons with AIDS (HOPWA) Program. (see part 574).