NORTHEAST ECONOMIC DEVELOPMENT INC NED, INC BOARD … Meetings/Agendas/NED... · 2017. 3. 29. · NORTHEAST ECONOMIC DEVELOPMENT, INC. – NED, INC. BOARD OF DIRECTORS MEETING WEDNESDAY,

NORTHEAST ECONOMIC DEVELOPMENT, INC. – NED, INC.

BOARD OF DIRECTORS MEETING

WEDNESDAY, MARCH 29, 2017 - 7:00 P.M.

Boone County Economic Development Agency – 233 S 4th, Albion, NE 68620

City of Columbus Offices – 1st Floor Conference Room, 2424 14th St, Columbus, NE 68601

City of Norfolk Offices – Training Room, 309 N 5th St, Norfolk, NE 68701

City of Wayne – City Council Chambers, 306 Pearl St., Wayne, NE 68787

The President and Board of Directors reserve the right to adjourn into closed session as per Section 84-1410 of the Nebraska

Open Meetings Act.

AGENDA

I. Call to Order: Inform the public about the location of the Open Meetings Act and that it is

accessible to the public (LB 898).

II. Roll Call

III. Introduction of Guests

IV. Secretary’s Report A. Approval of March, 2017 Agenda & February, 2017 Meeting Minutes (as mailed

& posted)

V. Treasurer’s Report

A. February 2017 Treasurer’s Report

VI. Action Items A. Approve a $200,000 loan to B & S Trading Post, LLC – Brent Benstead, Managing

Member – Ponca

B. Approve a $63,200 loan to Adam & Kristy Gensler, d/b/a Collision & Kustoms –

Allen

C. Approve accepting $250,000 Community Development Block Grant (CDBG) /

Non-Profit Development Organization (NDO) funds for Brehmer Mfg., Inc. –

Lyons

D. Approve a $200,000 loan and accept $275,000 Community Development Block

Grant (CDBG)/ Non-Profit Development Organization (NDO) loan for Weiland,

Inc. / Weiland Family Holdings, LLC – Madison County

E. Recommendation to approve applicant # 101368 for owner occupied housing

rehabilitation in the amount of up to $25,000.00

F. Recommendation to approve applicant # 101115 for owner occupied housing

rehabilitation in the amount of up to $25,000.00

G. Recommendation to approve revisions to Northeast Economic Development,

Inc. Housing Reuse Plan for Recaptured and Program Income Funds.

H. Recommendation to approve revisions to Northeast Economic Development,

Inc. New Construction with Down Payment Assistance Program Guidelines.

I. Recommendation to approve revisions to Northeast Economic Development,

Inc. Down Payment Assistance Program Guidelines.

J. Recommendation to approve revisions to Northeast Economic Development,

Inc. Owner/Occupied Housing Rehabilitation Program Guidelines.

K. Public hearing concerning an application to the Nebraska Department of Economic Development for a Nebraska Affordable Housing Program Grant.

L. Resolution authorizing the submission of an application to the Nebraska Department of Economic Development for a Nebraska Affordable Housing Program Grant.

VII. President/Board Comments

VIII. Next Meeting Date: The next Northeast Economic Development, Inc. Board of Directors

meeting will be at 7:00 p.m. on Wednesday, April 26, 2017. The meeting will be held at the City of Norfolk Office Building, 309 N. 5th St., Norfolk, Nebraska.

IX. Adjournment

Brad Albers______Nancy Braden_____ Tina Biteghe Bi Ndong_____ Nadine Hagedorn_____ Loren Kucera______John Lohr_____ Megan Weaver_____

Y (In Favor of Motion) N (Against Motion) ABS (Abstain) A (Absent)

Brad Albers______Nancy Braden_____ Tina Biteghe Bi Ndong_____ Nadine Hagedorn_____

Loren Kucera______John Lohr_____ Megan Weaver_____


Secretary’s Report Item IV. A

NED, Inc Board ______________________________________________________________________________ Object: To approve the March, 2017 meeting agenda and the February, 2017 meeting minutes. Contact Person: Danielle Lammers, Administrative Assistant For: Action ______________________________________________________________________________ Explanation: The March, 2017 agenda has been posted. The minutes from the February, 2017 meeting were mailed and posted. Motion: To approve the March, 2017 meeting agenda and the February, 2017 meeting minutes.

Treasurer’s Report Item V. A

NED, Inc Board Agenda ______________________________________________________________________________ Object: Approval of February, 2017 Treasurer’s Report Contact Person: Kristen Rosner, Fiscal Officer For: Action Background: Northeast Economic Development, Inc.’s (NED, Inc) February, 2017 Statement of Financial Position and the Statement of Revenues and Expenditures that reflect the monthly Budget, Actual and Budget Variance. Also stated is the Fiscal Year 2017 Budget for the nonaccrual accounts, July 1, 2016, through June 30, 2017, Actual, Budget Variance so far this fiscal year and Percent of the fiscal year 2017 Budget remaining. Explanation:

Additional Information: Business Loan Principal Received $38,781.77

Housing Rehab Principal Received 5,432.41 Down Payment Assistance (DPA) Principal Received 26,508.87 New Construction Principal Received - Business Loan Disbursements 175,000.00 Housing Rehab Loan Disbursements - Down Payment Assistance (DPA) Loan Disbursements - New Construction Loan Disbursement -

Business Loan Payoffs: Client #609001, John’s Tire Sales & Service, Schuyler, $5,925.00 DPA Loan Payoff: Client #07240, $12,100.00 Client #03447, $13,980.00 Business Loan Disbursements: Client #617002, Logemann Auto Parts & Machine, LLC, West Point, $175,000 Motion: To approve the February, 2017 Treasurer’s Report as presented.


Snapshot of the Statement of Financial Position January 31, 2017

Assets Liabilities & Net Assets


Revenue & Expenses by Type July, 2017 – February, 2017

Revenue

Expenses

NED, Inc.

Statement of Financial Position

As of 02/28/2017

Current Period Balance

AssetsGeneral Cash

Cash in Bank-BF #1695334 674.89 Business RLF Cash

IRP Loan Fund-BankFirst 7884171 71,216.59 RLF-BankFirst 7884203 10,761.57 IRP Loan Loss Reserve-BankFirst 7884195 15,178.96 RBEG Loans-BankFirst 7884203 120,677.06 NDO Loan Fund-Security Bank 229970 707.41 RMAP Loan Fund-BankFirst #7898549 220,636.98 #5765371116 Wells Fargo-NEF Loan Loss Reserve 12,313.46 NEF CD IRP #2 Loan Loss Reserve 45,000.00 IRP #2 Loan Fund-Bank First #7898560 249,487.41 RMAP LLR Fund-BankFirst #8571 25,278.33 NDO Loan Fund-Security Bank 833851 83,663.46 NE Micro Loan-BankFirst #7911287 120,579.30 NDO -BankFirst 7884203 600.00 BF NDO Defederalized 874,460.80

Housing CashTrust DPA - EVB 3035418 259,159.49 HOME Rehab-BankFirst 7858547 27,972.32 New Construction Savings-SSB 61457 183,735.57 HOME Rehab - CD #882514-Midwest Bank 107,180.25 Trust Rehab CD #882516-Midwest Bank 107,204.70 Housing Rehab Money Mrkt-Homestead Bank #700713287 231,316.19 Trust Rehab Pinnacle 4400292230 203,298.07 HOME DPA - EVBT 3067890 33,612.07 HOME Rehab Pinnacle 4400292249 146,087.34

ReceivablesGrants Receivable 12,790.22

Business RLF Notes ReceivableBusiness RLF Notes Receivable 73,654.18 Business IRP Notes Receivable 211,884.75 IRP #2 Notes Receivable 745,133.94 NDO Business Notes Receivables 2,650,503.85 RMAP Business Notes Receivable 167,889.70 NE Micro Loan Receivable 324,184.38

Housing Notes ReceivableDPA Notes Receivable 2,101,984.17 NC Subsidy Notes Receivable 2,524.50 Regional Rehab Notes Receivable 1,136,700.96

Fixed AssetsFurniture and Equipment 26,105.00 Accumulated Depreciation (26,105.00)

Allowance for UncollectiblesAllowance for uncollectable losses (3,138,297.70)

Total Assets 7,439,755.17

LiabilitiesAccounts Payable

Accounts Payable 175,000.00 Accounts Payable-Other 28,358.39 Pender CDBG Rehab 166.66

Notes Payable

Treasurer's Item V. A

NED, Inc.

Statement of Financial Position

As of 02/28/2017

Current Period Balance

RMAP Loan Payable 409,350.43 NEF Loan Payable 203,593.89 IRP Loan Payable 200,088.49 IRP #2 Loan Payable 674,451.56

Total Liabilities 1,691,009.42

Net AssetsOther 5,748,745.75

Total Net Assets 5,748,745.75

Total Net Assets and Liabilities 7,439,755.17

Treasurer's Item V. A

NED, Inc.

Statement of Revenues and Expenditures - Unposted Transactions Included In Report

From 02/01/2017 Through 02/28/2017

BudgetPeriod Current

Period ActualCurrent

VariancePeriod Budget

Current

OriginalTotal Budget -

ActualCurrent Year

VarianceTotal Budget

RemainingBudget

Percent Total

Revenues405 Bad Debt Recovery 3,916.67 0.00 (3,916.67) 47,000.00 7,000.00 (40,000.00) (85.11)%421 Housing Mgmt Rev 333.33 1,530.00 1,196.67 4,000.00 3,459.45 (540.55) (13.51)%425 Lead Based Paint Inspection 0.00 0.00 0.00 0.00 500.00 500.00 0.00%427 General Admin Rev 416.67 0.00 (416.67) 5,000.00 3,540.00 (1,460.00) (29.20)%428 Down Payment Assistance

Loan Processing Fee79.67 0.00 (79.67) 956.00 3,814.00 2,858.00 298.95%

436 Microenterprise Management Revenue

0.00 645.00 645.00 0.00 645.00 645.00 0.00%

439 CDBG ED NDO RLF Contributions

41,666.67 0.00 (41,666.67) 500,000.00 156,063.92 (343,936.08) (68.79)%

443 USDA RMAP TA Funds 2,440.50 10,615.22 8,174.72 29,286.00 23,885.60 (5,400.40) (18.44)%444 Business Loan Closing

Revenue250.00 250.00 0.00 3,000.00 750.00 (2,250.00) (75.00)%

447 Housing Rehab Contributions

0.00 0.00 0.00 0.00 1,719.45 1,719.45 0.00%

451 Business Loan Interest 10,833.33 9,810.16 (1,023.17) 130,000.00 88,702.82 (41,297.18) (31.77)%452 Loan Late Fees 100.00 40.92 (59.08) 1,200.00 475.14 (724.86) (60.41)%453 Business Loan Processing

Fee500.00 850.00 350.00 6,000.00 1,050.00 (4,950.00) (82.50)%

454 Annual Servicing Fees 1,000.00 1,740.40 740.40 12,000.00 9,477.18 (2,522.82) (21.02)%458 Sherwood Grant 3,750.00 0.00 (3,750.00) 45,000.00 31,108.02 (13,891.98) (30.87)%471 HO Rehab Interest 833.33 678.94 (154.39) 10,000.00 6,176.52 (3,823.48) (38.23)%490 Interest Income 750.00 1,115.71 365.71 9,000.00 9,680.71 680.71 7.56%491 Miscellaneous Income 0.00 0.00 0.00 0.00 15.00 15.00 0.00%492 Contributions 650.00 0.00 (650.00) 7,800.00 1,719.18 (6,080.82) (77.96)%

Total Revenues 67,520.17 27,276.35 (40,243.82) 810,242.00 349,781.99 (460,460.01) (56.83)%

Expenditures523 Office Supplies 16.63 0.00 16.63 199.60 0.00 199.60 100.00%543 Bank Fees 8.37 0.00 8.37 100.40 128.50 (28.10) (27.99)%545 Sherwood Grant 3,750.00 0.00 3,750.00 45,000.00 31,018.02 13,981.98 31.07%548 Loan Closing Expense 125.00 0.00 125.00 1,500.00 1,825.49 (325.49) (21.70)%549 Housing Admin 333.33 0.00 333.33 4,000.00 60.00 3,940.00 98.50%553 General Admin 416.67 0.00 416.67 5,000.00 3,540.00 1,460.00 29.20%

Treasurer's Item V

. A

NED, Inc.

Statement of Revenues and Expenditures - Unposted Transactions Included In Report

From 02/01/2017 Through 02/28/2017

BudgetPeriod Current

Period ActualCurrent

VariancePeriod Budget

Current

OriginalTotal Budget -

ActualCurrent Year

VarianceTotal Budget

RemainingBudget

Percent Total

557 Memberships 2.50 23.00 (20.50) 30.00 23.00 7.00 23.33%560 Legal Services 100.00 0.00 100.00 1,200.00 0.00 1,200.00 100.00%561 Audit Fees 487.92 0.00 487.92 5,855.00 5,775.00 80.00 1.37%569 Other Professional Services 225.00 0.00 225.00 2,700.00 0.00 2,700.00 100.00%573 Loan Interest Expense 1,791.67 937.80 853.87 21,500.00 16,833.43 4,666.57 21.70%574 NENEDD Management Exp 14,583.33 12,695.07 1,888.26 175,000.00 124,460.92 50,539.08 28.88%577 Local RLF Contribution

Expense0.00 14,585.98 (14,585.98) 0.00 142,416.81 (142,416.81) 0.00%

580 Loans Written Off 12,083.33 36,754.77 (24,671.44) 145,000.00 137,134.77 7,865.23 5.42%583 NC Subsidy Loans Forgiven 29.75 29.70 0.05 357.00 237.60 119.40 33.45%584 Rehab Loans Forgiven 6,583.33 4,897.61 1,685.72 79,000.00 41,069.92 37,930.08 48.01%585 Rehab Loan Disbursements 0.00 0.00 0.00 0.00 1,869.45 (1,869.45) 0.00%589 Invest Nebraska NDO RLF

Contributions3,583.33 2,183.10 1,400.23 43,000.00 18,141.88 24,858.12 57.81%

590 Miscellaneous 0.00 0.00 0.00 0.00 15.00 (15.00) 0.00%Total Expenditures 44,120.16 72,107.03 (27,986.87) 529,442.00 524,549.79 4,892.21 0.92%

Total Revenues Over (Under) Expenditures

23,400.01 (44,830.68) (68,230.69) 280,800.00 (174,767.80) (455,567.80) (162.24)%

Treasurer's Item V

. A

Action Item VI. A

NED, Inc. Board Agenda Object: Approve a $200,000 loan to B & S Trading Post, LLC – Brent Benstead, Managing Member - Ponca Contact Persons: Jeff Christensen For: Action Loan Applicant: – B & S Trading Post, LLC. Brent Benstead, Managing Member – Ponca I. Project Overview and Description: Brent Benstead has formed B & S Trading Post, LLC and is planning the purchase of the Trading Post Market in Ponca. The Trading Post has been a long standing grocery retailer for over 40 years and is positioned directly along the only path to Ponca State Park. In the past, the store has attained nearly one million in gross sales a year. However, in recent years, the business has seen steady decline. Brent understands there are a variety of factors potentially influencing this decline, but the largest factor seems to be a lack of interest and desire on the part of the current owner. The grocery store portion of the building is nearly 9600 sq. ft and currently has two distinct areas that are sectioned off within the building and have separate entrances from the grocery store. One of these areas already has a small operational laundry facility. The other sectioned off area at one time served as a small café which has been closed for over two years. Besides the purchase of the Trading Post Market including real estate, existing inventory and equipment, the project also involves making improvements necessary to bring the store to a condition that will be conductive to sales and profitability. This includes replacing current equipment, lighting, ceiling tiles, flooring, and some basic remodeling in the grocery store. The remodeling will allow them to place a small gourmet coffee corner within the grocery store that will also serve soft serve ice cream in the summers. The coffee corner will be placed near the bakery and deli area of the grocery store. The current restaurant area, which hasn’t been used for two years, will be transformed into a wine and spirits store with a specific area for bait and tackle sales. The liquor store will also sell park stickers for Ponca State Park, as well as hunting and fishing licenses. The Sole member of B & S Trading Post, LLC will be Brent. It will be co-managed by Brent and his fiancée Stephanie Scoggan. They will split duties with Stephanie in charge of the accounting side such as paying bills, making deposits, tracking invoices, as well as the employee scheduling, payroll, reporting, and filling in the voids if and when they are short employees. She will be paid as a regular employee. Brent will be in charge of ordering, stocking, repair, maintenance, and working in the store on a daily basis. Total project costs are estimated to be $688,200 to purchase the building/real estate, renovation, equipment, inventory, signage, membership stock, working capital and fees. Bank of Dixon County and Brent Benstead are requesting that NED, Inc. provide a loan in the amount of $200,000 towards the project. Bank of Dixon County will provide a loan of $400,000 and Brent will provide equity of $88,200 in cash for the project. The project will retain 5.0 employees, including Brent & Stephanie. II. Sources and Uses:

Source Bank NED, Inc. Equity Total Real Estate $56,700 -0- $54,000 $110,700 Existing inv/equip $103,800 -0- $5,200 $109,000 Renovation $117,000 -0- -0- $117,000 New Equipment $52,000 $140,500 -0- $192,500 LOC, Stock, Licenses $33,000 -0- $29,000 $62,000 New Inventory $37,500 $44,500 -0- 82,000 Signage -0- $15,000 -0- $15,000 Total $400,000 $200,000 $88,200 $688,200

Action Item VI. A

III. Proposed Loan Package and Related Collateral: Bank of Dixon County in New Castle has approved a loan of $400,000 for this project. The loan will

be set up as a regular commercial real estate loan fully amortized over a 20 year term at an interest rate of 5.95% (variable), based on a semi-annual payment plan. The payment will be determined based on the full-utilized loan amount. Additionally, the total loan amount may be split into two separate notes, consisting of the above real estate note and a separate operating note. The second note would be an annual variable rate note starting at a rate of 6.25%. The total of these two notes will not exceed $400,000 unless they determine a shortage of funds to complete any necessary needs. The bank will also require a UCC filed for store inventory, personal guaranty from Brent, and key-man life insurance with the bank listed as beneficiary.

NED, Inc. will lend $200,000 for the purchase of new equipment, inventory & signage. The $200,000 loan will have a term of 20 years at an interest rate of 5.50% (fixed). NED, Inc. will have a subordinate Deed of Trust on the real estate being purchased and a UCC lien on the business personal property of B & S Trading Post, LLC. NED, Inc. will file a Deed of Trust on their personal residence in rural Dixon County (owned by Brent & Stephanie jointly) NED, Inc. will have a life insurance assignment from Brent for the amount of the loan for the life of the loan. A personal guaranty will also be required from Brent Benstead & Stephanie Scoggan.

Due to seasonality of the business, Brent is requesting semiannual payments made on October 1st and April 1st each year, starting October 2017. This coincides with the end of the summer months (October), and when they receive their 2.8% annual membership rebate from Associated Wholesale Grocers (April). The Northeast Revolving Loan Fund (RLF) committee was presented information on credit scores, net worth, collateral, and financial information as part of the loan summary discussion and recommends this loan for approval. Motion: To approve a NED, Inc. loan of $200,000 to B & S Trading Post, LLC, Brent Benstead, Managing Member, in Ponca, as presented and recommended by NENEDD staff and the Northeast RLF Committee.



Action Item VI. B

NED, Inc. Board Agenda Object: Approve a $63,200 loan to Adam & Kristy Gensler, d/b/a Collision & Kustoms - Allen Contact Persons: Jeff Christensen For: Action Loan Applicant: – Adam & Kristiy Gensler, d/b/a Collision & Kustoms - Allen I. Project Overview and Description:

Adam & Kristy Gensler are planning the construction of a new body shop in Allen. They started their collision repair and vehicle restoration business in 2011. The shop is currently located at their residence in rural Dixon County which is only accessible via a gravel road. Potential customers simply don’t want to travel on a gravel road to get there or feel they will not be able to find it. In addition to a great new location in Allen, they will add a new top-of-the-line paint booth which will make their business more appealing to customers.

Collision & Kustoms will be the only body shop within 30 miles. Services include major and minor collision, minor frame straightening, glass, rust repair, paintless dent, vehicle exterior detail, full frame off restoration, custom paint, and full paint jobs.

Total project costs are $158,000. Security Bank in Allen and the Genslers are requesting that NED, Inc. provide a loan in the amount of $63,200 for building construction. Security Bank is anticipating approving a loan of $79,000. The Genslers will provide $15,800 in cash. The project will retain two jobs which includes Adam & his wife. II. Sources and Uses:

Source Bank NED, Inc. Equity Total Land -0- -0- $8,000 $8,000 Building $79,000 $43,200 $7,800 $130,000 Paint Booth -0- $20,000 -0- $20,000 TOTAL $79,000 $63,200 $15,800 $158,000

III. Proposed Loan Package and Related Collateral:

Security Bank in Allen is considering a loan of $79,000 for this project. The bank’s loan of will be amortized over 20 years at an interest rate of 5.50% (variable). The bank will secure its loan with a Deed of Trust on the property being purchased and all business personal property. NED, Inc. will lend $63,200 for building construction. The $63,200 loan will have a term of 20 years at an interest rate of 5.50% (fixed). NED, Inc. will have a subordinate Deed of Trust on the building being built and a UCC lien on the business personal property. NED, Inc. will file a Deed of Trust on the Gensler’s personal residences in rural Dixon County and life insurance assignment from Adam for the amount of the loan for the life of the loan. The Northeast Revolving Loan Fund (RLF) committee was presented information on credit scores, net worth, collateral, and financial information as part of the loan summary discussion and recommends this loan for approval. Motion: To approve a NED, INC. loan of $63,200 to Adam & Kristy Gensler, d/b/a Collision & Kustoms in Allen, as presented and recommended by NENEDD staff and the Northeast RLF Committee.

Brad Albers______Nancy Braden_____ Tina Biteghe Bi Ndong_____ Nadine Hagedorn_____

Loren Kucera______John Lohr_____ Megan Weaver_____


Action Item VI. C

NED, Inc. Board Agenda Object: Approve accepting $250,000 Community Development Block Grant (CDBG) / Non-Profit Development Organization (NDO) funds for Brehmer Mfg., Inc. – Lyons Contact Persons: Jeff Christensen For: Action Loan Applicant: – Brehmer Mfg., Inc., Joe Brehmer, President - Lyons Project Overview and Description: Brehmer Mfg. has identified the need to increase its existing manufacturing space and capabilities to accommodate both existing and new business opportunities beginning in 2017. The project shall consist of: 1) relocating an existing 40’ x 60’ warehouse, 2) constructing a new 120’ x 120’ addition to the south side of Brehmer Mfg’s existing facility, 3) renovating the existing detached wash bay to permit installation of a new powder coating booth and batch process oven, 4) relocating the existing air compressor, 5) purchasing and installing a new compressor, 6) installing new gravel over exiting access roads, and 7) acquiring various equipment. Total project costs): Activity Amount Source Name 120’ x 12’ Addition, Concrete, Doors, Alarm System $615,801 State / Fed DED – CDBG ($250,000) Relocate existing warehouse and compressor $46,858 Bank Funding First NE Bank ($450,000) Renovate wash bay, install powder coat, forklift $100,000 Owner Equity Brehmer Mfg ($162,021) Tools, welders, compressor, tubing bender, time clock $99,362 Total $862, 021 Brehmer Mfg. has applied to the Nebraska Department of Economic Development (DED) through the City of Lyons for $250,000 of new Community Development Block Grant (CDBG) funds. These funds will be sub-granted to Northeast Economic Development, Inc. (NED, Inc.) as a Non-profit Development Organization (NDO) who will in turn lend the funds to Brehmer Mfg. This is the process approved by DED to defederalize CDBG funds in our local communities. Ten new jobs will be created as a result of the CDBG funds. The loan will bear no interest. $150,000 is fully repayable over 120 months. $100,000 is forgiven upon meeting the job creation requirements of 10 new jobs within 18 months, and maintaining the additional jobs for 12 months. As outlined in the Memorandum of Understanding with the Nebraska Department of Economic Development (DED), NED, Inc. will file a deed of trust on the business real estate and a UCC filing on all business assets both subordinate to the bank. NED, Inc. will also require a personal guaranty from Joe Brehmer, President of Brehmer Mfg., Inc. Brehmer Mfg. Inc. is an established, (42) year-old Nebraska-based company that offers manufacturing and design services for diverse, niche markets. Rey Brehmer founded the company in 1974, working out of a (1500) sq. ft. shop located in Oakland, Nebraska and employed four production personnel making livestock, agricultural and truck equipment products for customers located throughout the Midwest. In 1983, Brehmer Mfg. relocated to a (19,855) sq. ft. facility in Lyons, Nebraska where it began to expand its product offerings. In 1990, the company began fabricating crane equipment, and in 1991 started manufacturing the Eagle line of tire recycling equipment. Joe Brehmer purchased the business from his father on February 23, 1998. In 2005, Brehmer Mfg. began producing the Feed-Ease line of stainless steel hog feeders for A.J. O’Mara Group. The Feed-Ease line maintains a recognizable presence in North and South America. In 2013, Brehmer Mfg. began designing and manufacturing its own brand of stainless steel fertilizer tender boxes. During 2016, the company negotiated dealer arrangements that expanded the sales and marketing efforts to (39) salesmen covering (13) states. This new sales presence is expected to double sales for fertilizer tender boxes during 2017. Brehmer Mfg’s first exported product was a tire recycling machine shipped to Canada in 1994, the company has since grown and has shipped products to (27) countries on (5) continents. Presently, the company

Action Item VI. C

employs (55) personnel, and operates six different business units from within a (45,415) sq. ft. facility. The company continues to research and develop new products for its existing business units, but has recently focused efforts to develop products for other industries. Current R&D projects include hydraulic fitness equipment, boat lifts, boat guidance systems, milking parlors, and implements for the Tuff-Bilt line of tractors. In recent weeks, Brehmer Mfg. has had much positive feedback regarding the milking parlors and the Tuff-Bilt implements. Brehmer Mfg. has received verbal confirmation for milking parlors shipping to various African countries, as well as Tuff-Bilt implements being shipped to Haiti. Furthermore, the company has been informed that the African milking parlor project has the potential to be a minimum (5) year duration. Brehmer Mfg. also met with the southeast Asia sales representative for milking parlors, and anticipates a slow, gradual sales build-up during 2017, but expects moderate to strong sales by 2020. Motion: To approve accepting the sub-granted $250,000 CDBG funds from the City of Lyons utilizing the Non-Profit Development Organization (NDO) process. The $250,000 CDBG funds will be loaned to Brehmer Mfg., Inc. as presented and recommended by NENEDD staff, the Northeast RLF Committee, and DED.



Action Item VI. D

NED, Inc. Board Agenda Object: Approve a $200,000 loan and accept $275,000 Community Development Block Grant (CDBG)/ Non-Profit Development Organization (NDO) loan for Weiland, Inc. / Weiland Family Holdings, LLC – Madison County Contact Persons: Jeff Christensen For: Action Loan Applicant: – Weiland, Inc. / Weiland Family Holdings, LLC – Madison County I. Project Overview and Description: Weiland Family Holdings, LLC is planning the expansion and relocation of their Madison manufacturing operations/facility (Weiland, Inc.) to an 18 acre property just south of Norfolk, east across Hwy 81 from the Norfolk airport industrial park. Weiland, Inc. manufactures and distributes specialty doors and windows for a variety of industries nationwide. They primarily sell to contractors who then re-sell and install their products to food processing and dairy facilities, cold storage buildings, water and wastewater treatment plants, and clean rooms. About seven years ago they began transitioning ownership to the second generation of the family. Since then they have pushed the envelope on innovation which is seemingly tough to do in the door industry. They have created several “firsts” in the fiberglass molded door industry with proprietary techniques for molding doors faster, cheaper, better, and more environmentally safe than much of their competition. They also have developed stainless steel windows that have become the standard in many architectural specifications regarding wash-down facilities. Additionally, they have worked with Hormel and Tyson engineers to develop an all plastic, completely CNC (Computer Numerical Control) prepared wall covering for conveyer belt openings. In general, they are constantly striving to create the best thing they can for the right price point that actually meets the needs of the plants. No longer is a door just a door. It must meet fenestration (the arrangement, proportioning, and design of windows and doors in a building) standards, be wash-down ready, be heavy duty, not allow for bacteria growth and take into account so many other considerations. The new 60,000 sq. ft. facility cost estimate is $3,722,000. Weiland Family Holdings, LLC / Weiland, Inc. are requesting that NED, Inc. provide a loan in the amount of $200,000 for their new facility. Weiland Family Holdings, LLC /Weiland, Inc. owners will select one of four local banks to obtain $1,761,000 in bank financing. Other financing will include $1,386,000 from SBA, $275,000 Community Development Block Grant (CDBG) funds, and $100,000 cash and balance sheet equity from the business. The project will maintain 20 jobs and create 10 new jobs. II. Sources and Uses Source Senior Lender SBA NED, INC. CDBG Equity Total Land Costs $50,000 $47,830 -0- -0- $100,000 $197,380 Construction $1,459,838 $1,132,008 $200,000 -0- -0- $2,791,846 Equipment $210,000 $170,000 -0- $275,000 -0- $655,000 Soft Costs $11,000 $9,000 -0- -0- -0- $20,000 Interim Fin./Fees $30,000 $27,000 -0- -0- -0- $57,000 TOTAL $1,760,838 $1,385,838 $200,000 $275,000 $100,000 $3,721,676

III. Proposed Loan Package and Related Collateral:

A specific bank has not been selected yet. There are four local banks that Weiland Family Holdings, LLC / Weiland, Inc. management is talking to in order to get the best rate and term. It is assumed in the proforma the bank loan will have a term of 20 years at an interest rate of 4.75%. SBA will be involved with a direct loan no matter which bank is selected as the senior lender. It is assumed that the SBA loan will have a term of 20 years at an interest rate of 4.25%. NED, INC. will lend $200,000 for construction costs related to the project. The $200,000 loan will have a term of 20 years at an interest rate of 4.00% (fixed).

Action Item VI. D

Madison County will apply to the Nebraska Department of Economic Development (DED) on behalf of Weiland Family Holdings, LLC / Weiland, Inc. for $275,000. Approximately $159,000 will be from Madison County’s existing CDBG funds and $116,000 will be new CDBG funds from DED. All $275,000 will be subgranted to NED, Inc., as a Non-profit Development Organization (NDO), who will in turn lend the $275,000 to Weiland Family Holdings, LLC / Weiland, Inc. for this project. The $275,000 NDO loan will have a 15 year term at 0.00% (fixed). Payments will be made to NED, Inc., thus resulting in a $475,000 loan with NED, Inc. This is the process approved by the Nebraska Department of Economic Development (DED) to de-federalize CDBG funds in our local communities.

NED, Inc. will have a primary (first) lien position on the first $275,000 of new equipment being purchased through a Purchase Money Security Interest. NED, Inc. will have a subordinate lien position to the bank and SBA on the remainder of the business assets of Weiland, Inc. and the business real estate owned by Weiland Family Holdings, LLC. A personal guaranty will be provided by Leon & Jean Weiland. As additional collateral for this loan, NED, Ind. will file a Deed of Trust on the “east farm” (134 acres) as additional collateral for this loan.

The Northeast Revolving Loan Fund (RLF) committee was presented information on credit scores, net worth, collateral, and financial information as part of the loan summary discussion and recommends this loan for approval. Motion: To approve a NED, Inc. loan of $200,000 for Weiland, Inc. / Weiland Family Holdings, LLC and accept the sub-granted $275,000 CDBG funds from Madison County utilizing the Non-Profit Development Organization (NDO) process. The total of $475,000 will be loaned to Weiland, Inc. / Weiland Family Holdings, LLC as presented and recommended by NENEDD staff, the Northeast RLF Committee, and DED.



Action Item VI. E

NED, Inc. Board Agenda Object: Recommendation to approve applicant # 101368 for owner occupied housing rehabilitation in the amount of up to $25,000.00 Contact Person: Martin Griffith For: Action __________________________________________________________________ Background: Level D– 100% Forgivable Loan over 10 years

Property Location: Wayne House Square Footage: 1080 Cost of Repairs: $25,000.00 Cost per Square Foot: $23.00 Funding Source: City of Wayne Grant #14-CIS-006

Explanation: The house under consideration is structurally sound, in good condition, and after repairs will meet or exceed all of the required Minimum Rehabilitation Standards. Therefore is deemed to be economically feasible for the Housing Rehabilitation Program. See list of repairs below. Repairs Repair seamless gutters. Install permanent trim over painted exterior surfaces. Replace roofing membrane. Replace six electrical outlets with ground fault circuit interrupter outlets (three in kitchen and three in garage). Replace five windows with low E argon gas filled half inch insulated glass units. Stabilize all deteriorated paint on interior surfaces. Install one smoke detector and two carbon monoxide detectors. Install Premise Identification Numbers on front of house. Repair foundation. Install firewall between furnace room and living space in basement. Install basement egress window. Replace garage overhead door.

Action Item VI. E

This property is currently valued at $56,100.00 After rehabilitation property value $74,850.00 Current Mortgage- $48,805.19 City of Wayne Lien Position 2nd After Rehab Property Value Calculation: County: Wayne Tax Valuation: $53,295.00 % of Value: 95% 100% RE Tax Valuation: $56,100.00 (Pre Rehab value) Total Rehab Spent: $25,000.00 75% of Rehab Spent: $18,750.00 After Rehab Value: $74,850.00 Recommendation based on the condition of the house, cost of repairs, cost of repairs per square foot (see section 4.5 Economic Feasibility for Rehabilitation of the Housing Rehabilitation Program Guidelines) current mortgage balance, after rehabilitation value of the house, and lien position of the City of Wayne. Motion: To approve applicant #101368 for housing rehabilitation funds in the amount of up to $25,000.00



Action Item VI. F

NED, Inc Board Agenda Object: Recommendation to approve applicant # 101115 for owner occupied housing rehabilitation in the amount of up to $25,000.00 Contact Person: Martin Griffith For: Action __________________________________________________________________ Background: Level B (66%- 120% of Area Median Income) – 2% Interest Loan up to 20 years

Property Location: Hartington House Square Footage: 1920 Cost of Repairs: $25,000.00 Cost per Square Foot: $13.00 Funding Source: NED, Inc. Reuse

Explanation: The house under consideration is structurally sound, in good condition, and after repairs will meet or exceed all of the required Minimum Rehabilitation Standards. Therefore is deemed to be economically feasible for the Housing Rehabilitation Program. See list of repairs below. Repairs Replace ten electrical outlets with ground fault circuit interrupter outlets (four in kitchen, four in bathrooms, one in laundry area, and one on exterior). Replace six windows with low E argon gas filled half inch insulated glass units. Stabilize all deteriorated paint on interior and exterior surfaces. Install five smoke detectors and two carbon monoxide detectors. Make necessary electrical repairs. Replace existing electrical outlets and switches where needed. Install electrical switch and outlet box extensions where needed. Install electrical switch and outlet cover plates where missing. Eliminate exposed electrical wiring. Fasten loose ceiling light fixture. Install ceiling light fixtures in living room and dining room. Install drywall to dining room and living room walls/ceilings. Hepa vacuum and wet wipe all window troughs and interior sills.

Action Item VI. F

This property is currently valued at $36,152.63 After rehabilitation property value- $54,902.63 Current Mortgage- $33,920.52 NED, Inc. Lien Position 2nd After Rehab Property Value Calculation: County: Cedar Tax Valuation: $34,345.00 % of Value: 95% 100% RE Tax Valuation: $36,152.63 (Pre Rehab value) Total Rehab Spent: $25,000.00 75% of Rehab Spent: $18,750.00 After Rehab Value: $54,902.63 Recommendation based on the condition of the house, cost of repairs, cost of repairs per square foot (see section 4.5 Economic Feasibility for Rehabilitation of the Housing Rehabilitation Program Guidelines) current mortgage balance, after rehabilitation value of the house, and lien position of NED Inc. Motion: To approve applicant #101115 for housing rehabilitation funds in the amount of up to $25,000.00





Action Item VI. G

NED, Inc Board Agenda ______________________________________________________________________________ Object: Recommendation to approve revisions to Northeast Economic Development, Inc. Housing Reuse Plan for Recaptured and Program Income Funds. Contact Person: Judy Joy For: Action ______________________________________________________________________________ Background: Northeast Economic Development, Inc. is requesting approval of revisions to the Housing Reuse Plan for Recaptured and Program Income Funds. Changes to the reuse plan include clarification of language, additions, revisions and policy changes due to the Nebraska Department of Economic Development requirements. The Nebraska Department of Economic Development has reviewed the reuse plan prior to presenting it to the Northeast Economic Development, Inc. Board of Directors. Changes/additions to the reuse plan are italicized and underlined and deletions have a strike-through. Explanation: Please refer to the attached reuse plan for specified changes. Motion: To pass resolution accepting and adopting the Northeast Economic Development, Inc. Housing Reuse Plan for Recaptured and Program Income Funds as presented.

Action Item VI. G

Northeast Economic Development, Inc. (NED, Inc) Housing Reuse Plan for Recaptured and Program

Income Funds Program income and/or recaptured funds (reuse funds) generated through the repayment of loans and interest earned will be used, after the grant period has ended, to continue to fund funding housing related activities in the Northeast and Central Investment Zones (NIZ, CIZ) Northeast Economic Development, Inc.’s (NED, Inc.’s) service area. for the Central Investment Counties of Antelope, Boone, Reuse funds generated from the NIZ grants can be re-used in the CIZ and reuse funds generated from CIZ grants can be re-used in the NIZ. See addendum 1 for a list of grants that have created the reuse fund, which will be updated as grants are awarded. Reuse funds include HOME Investment Partnership, and Nebraska Affordable Housing Trust Funds (NAHTF). and Community Development Block Grant (CDBG) funds. Each funding source will be independent of each other and will follow the most current Nebraska Department of Economic Development (NEDED) and board approved housing guidelines. Program income from Owner/Occupied Housing Rehabilitation (OOR), Down Payment Assistance (DPA) and New Construction (NC) will be kept separate and reused for the same activity. If program income from any housing activity is inactive for 12 months, those funds Program Income could be utilized for HOME, or NAHTF or CDBG housing activities using funds obtained from the applicable funding source of program income. A proposal will be submitted to the Nebraska Department of Economic Development, notifying them of any alternative, HOME or NAHTF or CDBG eligible housing activities that take place. Housing activities are defined as, but not limited to: 1) Homeowner rehabilitation: Assist owner-occupants with the repair, rehabilitation or reconstruction of their homes. 2) Homebuyer Activities: Finance the acquisition and/or rehabilitation or new construction of homes for homebuyers. Housing activities as defined above will be further limited to the following: 1) CDBG reuse funds will only be used for eligible activities as outlined in the CDBG Guide to National Objectives. 2) HOME reuse funds will only be used for eligible activities as outlined in the Nebraska Department of Economic Development’s HOME manual. 3) NAHTF reuse funds will only be used for eligible activities as outlined in the Nebraska Department of Economic Development’s NAHTF manual. 1. The grantee will use program income directly generated from the use of NAHP funds to further affordable housing programs eligible under the Nebraska Affordable Housing Act. 2. Program income funds are those funds returned to the Grantee during the Affordability Period when the property is sold or is no longer the initial or subsequent homeowner’s principal residence. 3. Program income and/or recaptured funds (reuse funds) must be used utilized for the current project if the project has not been completed. This program income received must be applied to the current project prior to requesting additional grant NAHP funds. 4. The grantee understands that if program income is utilized for another housing related activity, other than for the same activity from the Project which generated the program income, then the Grantee will be responsible for developing and utilizing new Program Guidelines for the new eligible activity. 5. General administration (0181) and housing management (0580) may not exceed 10% of the total balance of the reuse account. In the event housing management costs are above 10% due to the review of many applications in order to get to a funded application, the additional costs will be documented in the file. Housing management lead based paint testing/risk assessments/clearance testing (0580a) will not exceed $1,500 per unit. This reuse plan will follow the most current housing program guidelines as approved by DED.

Action Item VI. G

6. If resale provisions are utilized for the Project, and program income is received, then the subsequent purchasers of each unit will be eligible homebuyers and the original homebuyer will receive a fair return on investment. 7. If recapture provisions are utilized for the project and program income is received, then the amount recaptured cannot exceed the net proceeds. Net proceeds are the sale price minus superior loan repayment (other than CDBG, HOME, or NAHTF NAHP funds) and any closing costs. 8. All program income will be returned to the Nebraska Department of Economic Development (NEDED) for reuse unless NEDED offers the option to the Grantee to retain the program income or NEDED approves the grantee’s Program Income Reuse Plan prior to receiving Release of Funds. No amendments to the program or reuse plans can be made without prior approval by the NEDED. NED, Inc may also contribute reuse funds to assist individual community projects in the NIZ and CIZ for housing activities. Future loans will be made to those persons having an income no greater than the percentage of the area median income as stated in the program guidelines of the county in which they receive assistance as defined in Section 8, Part 5 standards established by HUD for lower-income assisted housing and meeting all of the criteria defined in the program guidelines. Priority for assistance from the reuse plan will be determined on a case-by-case, first-ready, first-served basis. Marketing of available funding will be done in all counties served by NED Inc. Items not covered under the reuse plan will require pre-approval by the Nebraska Department of Economic Development prior to implementation. NED, Inc. will be responsible for developing and utilizing new Program Guidelines for the new eligible activity. All Program Income will be returned to NEDED for reuse unless the Department offers the option to the grantee to retain program income or the Department approves the grantee’s Program Income Reuse Plan prior to receiving Release of Funds. This housing reuse plan is hereby approved by action of the Board of Directors of Northeast Economic Development, Inc. this _____day of________, 2017. ______________________________________ ____________________ President NED, Inc. Date This housing reuse plan is hereby approved by the Nebraska Department of Economic Development this _______day of____________________, 2017. ______________________________________ ___________________ NEDED Representative Date

Action Item VI. G

ADDENDUM 1

This addendum to the Northeast Economic Development, Inc. Housing Reuse Plan for Recaptured and Program Income Funds is to include the following grants: Grant No Grantee Source 01-TFHP-501 Village of Leigh NAHTF 02-SR506-02 Village of Leigh HOME 03-OE203-02 NED Inc. HOME 03-OE502-02 NED Inc. HOME 03-OE506-02 NED Inc. HOME 03-TFHD-501 NED Inc. NAHTF 04-HO-509 City of Pender OOR CDBG 04-HO-510 City of Columbus OOR CDBG 04-HP-511 City of Columbus DPA CDBG 04-OE203-02 NED Inc. HOME 04-OE204-02 NED Inc. HOME 04-OE502-02 NED Inc. HOME 04-OE502-03 NED Inc. HOME 05-HO-536 City of Columbus OOR CDBG 05-HP-532 City of Columbus DPA CDBG 05-TFHO-252 NED Inc. NAHTF 05-TFHO-553 NED Inc. NAHTF 06-OEHO-2105 NED Inc. HOME 06-TFHP-581 NED Inc. NAHTF 07-OEHO-2095 NED Inc. HOME 07-TFHP-5019 NED Inc. NAHTF 08-TFHP-5044 NED Inc. NAHTF 08-TFHP-5097 NED Inc. NAHTF 09-OEHO-2070 NED Inc. HOME 09-OEHO-5058 NED Inc. HOME 11-OEHO-5048 NED Inc. HOME 11-OEHO-2047 NED Inc. HOME 12-TFHP-5017 NED Inc. NAHTF

Action Item VI. G

RESOLUTION NO. _2017-329-4______________ A RESOLUTION OF THE NORTHEAST ECONOMIC DEVELOPMENT, INC. (NED, INC.) BOARD OF DIRECTORS ACCEPTING AND ADOPTING THE NED, INC. HOUSING REUSE PLAN FOR RECAPTURED AND PROGRAM INCOME FUNDS, WHICH ARE ATTACHED HERETO. BE IT RESOLVED BY THE NED, INC. BOARD OF DIRECTORS THAT THE HOUSING RECAPTURED AND PROGRAM INCOME FUNDS WILL ADHERE TO THE CURRENT NED, INC HOUSING REUSE PLAN FOR RECAPTURED AND PROGRAM INCOME FUNDS AS APPROVED BY THE NEBRASKA DEPARTMENT OF ECONOMIC DEVELOPMENT. IT IS EXPRESSLY UNDERSTOOD THAT PROGRAM INCOME AND RECAPTURED FUNDS WILL CONTINUE TO BE MADE TO NED, INC AND REUSED WITHIN NED, INC.’S SERIVCE AREAS AND IS HEREBY APPROVED AND ADOPTED. PASSED AND ADOPTED THIS _________DAY OF __________________2017. _______________________________________ PRESIDENT, NED, INC. ATTEST ______________________________________ Thomas Higginbotham, Jr., Executive Director



Action Item VI. H

NED, Inc Board Agenda ______________________________________________________________________________ Object: Recommendation to approve revisions to Northeast Economic Development, Inc. New Construction with Down Payment Assistance Program Guidelines. Contact Person: Judy Joy For: Action ______________________________________________________________________________ Background: Northeast Economic Development, Inc. is requesting approval of revisions to the New Construction with Down Payment Assistance Program Guidelines. Changes to the guidelines include updating website addresses, clarification of language, additions, and policy changes due to the Nebraska Department of Economic Development requirements. The Nebraska Department of Economic Development has reviewed the guidelines prior to presenting them to the Northeast Economic Development, Inc. Board of Directors. Changes/additions to the guidelines are italicized and underlined and deletions have a strike-through. Explanation: The following sections have been changed in the guidelines. Please refer to the attached guidelines.

• Purpose - Paragraph 2-6 – Page 1 • Section 2.1 - Location – Page 2 • Section 2.2 - Purchase Price – Page 2&3 • Section 2.4 Maximum Per Unit Subsidy – Page 3 • Section 2.6 Unit Characteristics/Eligible Properties – Page 3 • Section 3.0 Relocation Policy – Page 3 • Section 4.2 Buyer Down Payment Assistance Loan Program – Page 3&4 • Section 5.2 Underwriting Criteria – Page 5 • Section 5.3 Procedure for Approval or Denial – Page 5 • Section 5.4 Purchase Agreement – Page 5 • Section 7.1 Loan Closing – Page 6 • Section 8.0 Property Maintenance – Page 7 • Section 14.0 Marketing – Page 7 • Section 15.0 - Limited English Proficiency (LEP) – Page 8

Motion: To pass resolution accepting and adopting the Northeast Economic Development, Inc. New Construction with Down Payment Assistance Program Guidelines as presented.

Action Item VI. H

Northeast Economic Development, Inc. (NED, Inc.) New Construction with Down Payment Assistance Program

Guidelines

PURPOSE The purpose of the Northeast Economic Development Inc. (NED, Inc.) New Construction with Down Payment Assistance Program is to provide financial assistance to low-to-moderate income households for the purchase of single-family residential housing units, which are safe, decent, sanitary, and affordable utilizing Nebraska Affordable Housing Program (NAHP) Funds. Funding sources utilized through the NAHP consist of HOME Investment Partnership Funds and Nebraska Affordable Housing Trust Funds (NAHTF). NED, Inc. has been contracted/organized to facilitate and coordinate the development of housing and economic development initiatives. NED, Inc.’s New Construction with Down Payment Assistance Program herein after referred to as the program will provide assistance to those persons of greatest need, improve the availability of housing, promote home ownership, and increase attractiveness of designated underdeveloped neighborhoods and increase local employment. This program will be operated by NED, Inc. through its Board of Directors. The NED, Inc. Board of Directors is responsible for the establishment of the following guidelines. This program is in shall be conducted in a manner to be in compliance with the Fair Housing Act. NED, Inc. will comply with the following Sections of the Fair Housing Act and the following regulations: Sec. 818. [42 U.S.C. 3617] Interference, coercion, or intimidation; enforcement by civil action. NED, Inc.’s housing rehabilitation program program does not coerce, intimidate, threaten, or interfere with any person seeking housing rehabilitation funds down payment assistance funds from NED, Inc. NED, Inc. does not discriminate when loaning housing rehabilitation down payment assistance funds based on race, color, religion, sex, handicap, familial status, or national origin and has in fact adopted a Fair Housing Resolution. NED, Inc. will follow the following Code of Federal Regulation (CFR) regulations for implementing the Fair Housing Act for the Department of Housing & Urban Development (HUD) funded programs. Refer to website: https://en.wikipedia.org/wiki/code_of_Federal_Regulations Title 24 CFR 100 Subpart C provides NED, Inc.’s housing rehabilitation program program with interpretations of conduct that is unlawful under section 805. NED, Inc. will follow these interpretations when providing financial assistance for the rehabilitation down payment assistance of a dwelling. NED, Inc. does not discriminate when loaning rehabilitation down payment assistance funds based on race, color, religion, sex, handicap, familial status, or national origin and has, in fact, adopted a Fair Housing Resolution. Title 24 CFR 100 Subpart D provides that NED, Inc.’s housing rehabilitation program with will provide guidance to permit handicapped persons reasonable modifications of the existing dwelling newly constructed unit that is being rehabilitated purchased. Title 24 CFR 100 Subpart F provides NED, Inc.’s housing rehabilitation program with guidance of conduct that is unlawful under Section 818 of the Fair Housing Act. Title 24 CFR 107 is used to take action necessary and appropriate to prevent discrimination because of race, color, religion, sex, handicap, familial status, or national origin. Under this section NED, Inc. insures that all legal documents contain provisions regarding discrimination. NED, Inc. maintains racial, national origin and sex data required by the department in connections with its programs.

Action Item VI. H

Title 24 CFR 110 sets forth regulations regarding the purpose and location of posters. NED, Inc. has its posters prominently displayed, and of proper size, so they can be read by all persons seeking housing. NED, Inc. letterhead and all housing brochures bear the Fair Housing logo. 1.0 APPLICANT ELIGIBILITY

1.1 General (Conflict of Interest) No member of the governing body, official employee, agent or member of their immediate family of NED Inc. and/or its affiliate Northeast Nebraska Economic Development District (NENEDD) who exercises policy, decision-making functions or responsibilities in connection with the planning and implementation of the program shall directly or indirectly benefit from this program, unless the Nebraska Department of Economic Development (NEDED) has granted written exception to that member. This prohibition shall continue for one year after an individual’s relationship with NED, Inc. or NENEDD ends. Any other employee, officer, or board member may be eligible, but will be treated no differently in the determination of applications accepted for funding. Enclosed with this person’s application shall be a statement of disclosure which outlines the nature of the possible conflict and a description of how the public disclosure was made. Included will also be verification that the affected person has withdrawn from the active involvement in any down payment assistance grant related issues.

1.2 Income Eligibility All determinations for assistance will be based upon need. Households receiving assistance from this program for a single family newly-constructed housing unit will have an annual anticipated gross income at or below 80% for HOME Funds and 120% of the Area Median Income (AMI) for NAHTF Funds for the county in which they receive assistance as established by the Department of Housing and Urban Development (HUD). Annual anticipated gross income (as defined in 24 CFR 5.609) is the gross income of all adult household members that is anticipated to be received during the upcoming 12 months. Third-party verifications and various credit checks, recent pay stubs and tax returns will determine the applicant’s eligibility for the program. For the purposes of confidentiality, a statement by the Housing Specialist, who has been presented with adequate documentation to verify that program participants meet the income thresholds as defined by HUD, shall be deemed sufficient to document low-income status when applications are presented to the NED, Inc. Board of Directors. 1.3 Family Status To qualify for a home mortgage under this program, the applicant must be a minimum of a one-person household. 1.4 Real Property In order to qualify under the program, an applicant shall not currently own or have any other interest in other real property at the time of application. The property to be purchased must be the principal residence of the applicant during the deferral/repayment period the down payment assistance loan.

2.0 PROPERTY ELIGIBILITY

2.1 Location The housing units to be purchased by program participants will be located within 2 miles of the city limits of communities in NED Inc.’s service area, and subject to limitations set by individual NAHP HOME, CDBG, and NAHTF grant rules and regulations. NED Inc.’s service area includes the Northeast Investment Zone counties of Burt, Cedar, Colfax, Cuming, Dakota, Dixon, Dodge, rural Douglas, Madison, Pierce, Platte, Stanton, Thurston, Washington, and Wayne. 2.2 Purchase Price The maximum purchase price of each housing unit will not exceed 95% of the median purchase price of the area. For more information see: http://www.neded.org/community/community-info/documentslibrary-a-forms/trust-fund

http://www.neded.org/community/community-info/documentslibrary-a-forms/trust-fund

Action Item VI. H

http://opportunity.nebraska.gov/ community/grants/applications/income-limits-cdbg-home-nahtf#NAHTF_Data. 2.3 Owner-Occupied The program shall provide assistance for the purchase of an owner-occupied principle residence only and the property cannot be retained for rental purposes. A home is considered “newly constructed” if no person or family has ever lived in the home. At loan closing, the client will execute a Primary Residence Certification Form which indicates that the property being purchased with down payment assistance funds must remain the client’s primary residence throughout the down payment assistance loan period. If, at any time during the down payment assistance loan period, the property is no longer the client’s primary residence, the client understands that they are in default of New Construction Program. 2.4 Maximum Per Unit Subsidy Financial assistance provided to the homebuyer shall not exceed the maximum per unit NAHP subsidy. The subsidy limits by county can be located at the following website: http://www.neded.org/community/community-info/documentslibrary-a-forms/trust-fund http://opportunity.nebraska.gov/community/grants/applications/income-limits-cdbg-home-nahtf#NAHTF_Data. 2.5 Energy Efficiency Criteria Newly-constructed housing units will meet or exceed the 2009 (or most current) International Model Energy Code and the Nebraska Energy Office will approve all building specifications. All units assisted with NAHP funds will be made to meet local codes, if no local codes exist, the state codes will be utilized. All properties must meet NEDED standards. 2.6 Unit Characteristics/Eligible Properties Only newly constructed single-family housing units are eligible for this program. A home is considered “newly constructed” if no person or family has ever lived in the home. Housing connected to other space used for commercial purposes, mobile homes, and rental properties are not eligible for assistance. Housing units located within a Special Flood Hazard Area (SFHA) are not eligible for assistance. Duplexes are eligible for assistance if the unit is owner-occupied and a definitive property boundary is established.

3.0 RELOCATION POLICY The relocation of persons for acquisitions of properties either by voluntary or involuntary means must adhere to the federal rules and regulations as stated in 49.CFR 24.101. In cases where either voluntary or involuntary acquisition is anticipated, the Nebraska Department of Economic Development NEDED will be contacted prior to any action.

4.0 FINANCIAL ASSISTANCE

4.1 Contractor/Developer Loan Program NED, Inc. has the option to provide the general contractor or developer with a 0% interest loan up to $100,000 to construct a single-family housing unit in the Northeast Investment Zone. Upon sale of the home, the contractor or developer will be required to repay the amount borrowed less the amount used for development subsidy and down payment assistance. 4. 2 Buyer Down Payment Assistance Loan Program All applicants will be required to secure a single-family mortgage loan from a lender of their choice to purchase a newly constructed single-family housing unit. Applicants will need a pre-qualification letter and Good Faith Estimate Loan Estimate Statement from the primary lender prior to applying for down payment assistance funds. The primary lender and its underwriting criteria determine the basis for


Action Item VI. H

NED, Inc.’s down payment assistance. Potential funding will be provided through either development subsidy, down payment assistance, or a combination of both not to exceed 25% of the purchase price up to a maximum of $50,000. The loan will be used toward the down payment of one housing unit and associated closing costs. The applicant is required to provide $1,000 of their own funds to cover a portion of the required closing fees and prepaid escrow accounts. NED, Inc. will charge a $500 closing fee which can be applied toward the $1,000 requirement. The primary lender will appraise the property. A subordinated lien in favor of NED, Inc. will be placed upon the property at the time of signing the promissory note in an amount equal to the down payment assistance loan. This lien will take a subordinate position to the primary lender’s original mortgage. Future refinancing, home equity loans and all future liens will take a subordinated position to the NED, Inc. loan. At the request of the borrower, future equity loans, which require a release or subordination of NED, Inc.’s lien, will require the NED, Inc. loan balance to be paid off unless the Board of Directors receives a written explanation of need. All subordination requests will follow NED, Inc.’s subordination policy (attached as Appendix B). The homeowner will be required to pay all closing and filing costs associated with refinancing and subordination if approved by the NED, Inc. Board of Directors. The down payment assistance loan shall consist of a 0% deferred interest loan. No debt service of the borrower will be required for the down payment assistance loan until the property is sold or upon transfer of title. In the event the borrower or his or her heirs shall sell or transfer said property, full repayment of the loan to NED, Inc. is required. In the event repayment of the NAHP assistance occurs during the NAHP imposed affordability period applicable to each funding source, recapture of all NAHP assistance funds is required. Loan repayment shall become due and payable up to the amount of net proceeds, if any, in the event borrower or his or her heirs shall sell, rent or otherwise convey the said property, or should the borrower(s) not occupy the said property as their primary residence according to the terms of Section 2.3 Owner/Occupied. In the event repayment of the NAHP assistance occurs during the NAHP imposed affordability period applicable to each funding source, recapture of all NAHP assistance funds is required. The amount recaptured cannot exceed the net proceeds. Net proceeds are the sales price minus superior loan repayment (other than HOME or NAHTF funds) and any closing costs. If the new sale price received less the primary lender’s loan is not sufficient to repay NED, Inc., the borrower will be responsible for the repayment of the down payment assistance loan. 4.2 FORECLOSURE Lender shall give the notice to Borrowers following Borrower’s breach of any covenant or agreement in the Promissory Note and the Deed of Trust of which it secures. The notice shall specify (a) the default, (b) the action required to cure the default, (c) a date not less than thirty (30) days from the date the notice is given to Borrowers by which the default must be cured, and (d) failure to cure the default on or before the date specified in the notice may result in acceleration of the sum secured, the deed of trust and resale of the property. Upon acceleration of the sum secured and resale of the property, NED, Inc. shall apply the proceeds of the sale in the following order: (a) to all expenses of the sale including, but not limited to, NED, Inc.’s fees as permitted by Nebraska law and reasonable fees; (b) to all sums secured by this security agreement; and (c) any excess be recaptured by NED, Inc. will recapture the new proceeds in the case of foreclosure.

5.0 APPLICATION PROCESS

5.1 Application In order to obtain an application form the applicant must call or visit NED, Inc.’s office. Staff will explain the assistance available and will be responsible for processing the application, verifying

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income and determining the applicant’s eligibility for participation in the program. During the application review, NENEDD staff may make recommendations and referral to other programs available such as USDA Direct Rural housing loans. 5.2 Underwriting Criteria NENEDD staff will take into consideration underwriting criteria of the primary lender and the following mitigating factors in making a credit recommendation to NED, Inc.’s Board of Directors. (criteria is intended as a guide and not as absolute determinants.) A. Credit Guidelines: Credit payment history, revolving accounts, any collections, judgments, liens, bankruptcy, foreclosures, repossessions, and credit depth. B. Debt to Income Ratios: Housing expense ratios between 25% - 28% maximum of 28% and total household expense ratios between 33% – 40% maximum of 40%.

C. Compensating Factors: Any of the following may be considered as compensating factors providing they are strong: ratios, equity, assets, credit scores, time on the job.

5.3 Procedure for Approval or Denial Applications will be taken of a first-ready first-serve basis. Only complete, original, and signed applications containing all information and documentation that are delivered to the offices of NED, Inc., 111 South 1st Street, Norfolk, NE 68701 will be processed. Electronic copies received via e-mail or fax will not be processed until the original application is received via postal mail or delivery in person to the NED, Inc. office. First-ready means that the following items have been completed in order to present the application to NED, Inc.’s Board of Directors : (1) applicant has completed application/initial interview, (2) income eligibility has been determined through third party verifications of income and assets, (3) Annual Income Worksheet prepared by NENEDD staff and signed by the applicant, (4) Pre-qualified letter/Good Faith Estimate Loan Estimate Statement received from primary lender, (5) Purchase Agreement signed, (6) Housing Quality Standards (HQS) initial inspection and re-inspection (if required), and (7) board loan summary prepared by NENEDD staff. NED, Inc.’s Board of Directors typically meets on the last Wednesday of each month. Applications will be presented to the NED Inc. Board of Directors if all of the above-mentioned items are completed by noon on Thursday prior to the regularly scheduled meeting. Applications will be presented to NED Inc. Board of Directors by applicant number only. The application will be reviewed and approved/denied by NED, Inc.’s Board of Directors based upon the recommendation of NENEDD staff. Approved applicants will be notified in writing and/or via e-mail, if available. Denied applicants will be notified in writing stating the reason for not being selected. 5.4 Purchase Agreement Once the applicant is pre-qualified at a primary lender of their choice, the applicant will sign a Purchase Agreement. A signed purchase agreement will be required once the applicant is pre-qualified with their primary lender. 5.5 Request for Funds NED, Inc. will submit a Request for Funds to NEDED on a reimbursement basis only. It is expressly understood that NED, Inc. may activate its line of credit in order to expedite the loan closing. It is also understood that any Line of Credit interest accrued from the time of loan closing to the date that NED, Inc. receives reimbursement from the State of Nebraska will be considered General Administration expense of the project and will not be charged to the homeowner. 5.6 Homebuyer Education Workshop Each applicant is required to attend a Homebuyer Education workshop prior to loan closing. The Homebuyer Education Workshop includes an educational packet and instructional material on topics

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such as family financial management, record keeping, property maintenance and upkeep, landscaping, lawn and pest management, appliances and home furnishings. A copy of the certificate of completion of the Homebuyer Education Workshop is to be sent to NED, Inc. from an approved REACH program provider similar to those offered by NeighborWorks Northeast Nebraska, Wayne Housing Development Corporation, Northeast Housing Initiative (NEHI) or USDA Rural Development. Homebuyers wanting to attend a workshop other than these listed will need to contact NED, Inc. to determine if the workshop is provided by an approved REACH program provider. If the homebuyer is unable to attend a workshop sponsored by any of the above-mentioned organizations, then it is their responsibility to find an alternative approved REACH program provider.

6.0 LEAD- BASED PAINT

6.1 Lead- Based Paint Brochure The HUD/EPA Disclosure Rule includes the following language on a homebuyer’s right to conduct a lead hazard evaluation. Program participants shall receive, as part of their application packet a copy of the HUD brochure on lead-based paint entitled “Protect Your Family From Lead In Your Home”. The receipt of this brochure by the program participant shall be documented by signature of the homebuyer on the “Notification – Watch out for Lead-Based Paint Poisoning” form included in the application packet. Lead based paint will not be used in the newly constructed house.

7.0 LOAN CLOSING

7.1 Loan Closing NED, Inc. will schedule the loan closing with the borrower and the primary lender. The primary lender will prepare all closing documents for its loan. NED, Inc. will prepare and have the borrower execute the following items at closing:

A. Regulation-Z Loan Disclosure B. Promissory Note C. Memorandum of Understanding D. Deed of Trust E. Request for Loss-Payee F. Primary Residence Certification Form G. Promotional Use Form (Beneficiary is giving a voluntary release and authorization for publication of photos that are taken during and after completion of the project.)

Upon signing of the closing documents, the Deed of Trust will be recorded at the Register of Deeds Office of the county in which the property is located. The Request for Loss Payee form will be mailed to the borrower’s local insurance agent. 7.2 Insurance Owner-occupants are required to carry a basic property insurance policy of at least one-hundred percent (100%) of replacement cost. All proceeds resulting from insurance must be applied toward the cost of needed repairs to the home. Documentation of repairs completed must be provided. At NED, Inc.’s discretion insurance proceeds may be held pending the completion of the repairs. Homeowners insurance must be carried on the dwelling throughout the loan deferral and repayment period in order to maintain compliance in the program. NED, Inc. is to be named as a loss-payee on all insurance policies in a subordinate position to the primary lender. 7.3 Close-Out NED, Inc. shall maintain and keep all applications as well as all other required document, records, and other evidence in conformance with NAHP regulations.

8.0 PROPERTY MAINTENANCE

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All properties purchased with HOME or NAHTF program funds shall be maintained in compliance with local ordinances and subdivision covenants.

9.0 CONSTRUCTION SUPERVISION All single-family housing units built under this program shall be subject to appraisal to verify completed value. All development is subject to review and inspection.

10.0 DEVELOPER/CONTRACTOR DISPUTES Construction-related developer/contractor disputes or deficiencies and/or any disagreements between the homebuyer and seller or developer to the construction of the homes shall be resolved prior to loan closing in a manner acceptable to all parties. Informal resolution of disagreements is recommended. Acceptance of the home and delivery of the deed at loan closing shall constitute the homebuyer’s waiver of any rights concerning known defects or existing disputes or disagreements between the homebuyer and seller, subject only to such special warranty given by the seller on the home and as set forth in the documents delivered and accepted at the time of closing. The foregoing shall not limit warranty-express or implied-as may otherwise exist as a matter of law.

11.0 GRIEVANCE PROCEDURES In the event that any applicant feels he or she has been unfairly treated or discriminated against during the process of selections of projects to be funded, excluding the determination of ability to secure a home mortgage loan from a financial institution, or within any other segment of the New Construction with Down Payment Assistance Program, he or she may appeal the decision of the NENEDD staff to the NED, Inc. Board of Directors for their consideration. The appeal must be submitted in writing to the President of NED, Inc. and postmarked with 14 calendar days of the decision. The NED, Inc. Board of Directors will act to support or overturn the action within 30 days of the receipt of the appeal. The NED, Inc. Board of Directors will have final authority in the decision. NEDED will be notified of any grievances that the grantee receives which are not resolved by the grantee’s standard grievance procedures. In some cases it may be necessary to use a neutral third party as mediator between the homeowner, the grantee, the grant administrator, and the contractor. The third party mediator cannot be the grant administrator or a member of the grantees decision making council. Economic Development Districts throughout the State of Nebraska would be utilized as the third party mediator. Appeals regarding loan ability shall be made to the financial institutions in accordance with their procedures.

12.0 AMENDMENTS TO THE GUIDELINES In an ongoing effort to improve the quality of the New Construction with Down Payment Assistance Program, NED, Inc. will receive any suggestions on amendment to the guidelines from the public, program participants, realtors, financial institutions or members of NENEDD. Upon approval and adoption of the amendment by the NED, Inc. Board of Directors, the NEDED Program Representative will review and approve the amendment which will be included in the program guidelines.

13.0 OFFICIAL CONTACT OFFICE The place of contact for this program shall be the office of NED, Inc., 111 South 1st Street, Norfolk, NE 68701. Any grievances, suggestions. or requests for information shall be directed to that office. This in no way shall be construed to limit other interested parties from distributing information about the program or receiving suggestions for amendments to the program. All grievances shall be directed to NED, Inc. in writing.

14.0 MARKETING NED, Inc.’s affirmative marketing procedures include but are not limited to marketing to local and regional residents, tenants of public housing and manufactured housing, other families assisted by public housing agencies, and households identified to be potentially eligible but least likely to apply. Marketing will include advertisements in daily and weekly newspapers, notices posted on NENEDD’s

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website and new briefs which received by banks, community members, associate members, and public members in the Central and Northeast Investment Zones. NED, Inc. will also display posters and brochures in areas where interested persons visit on a daily basis.

15.0 LIMITED ENLGISH PROFICIENCY (LEP) It is the policy of the grantee to take reasonable steps to provide meaningful access to its programs and activities for person with Limited English Proficiency (LEP) in accord with Executive Order 13166 titled, “Improving Access to Services by Persons with Limited English Proficiency”. The grantee’s policy is to ensure that staff will communicate effectively with LEP individuals, and LEP individuals will have access to important programs and information. The grantee is committed to complying with federal and state requirements in providing free meaningful access to this program and its activities for LEP persons. It is the policy of the grantee to take reasonable steps to provide meaningful access to its programs and activities for persons with Limited English Proficiency (LEP). In accord with and as required by Title VI of the Civil Rights Act of 1964, Executive Order 13166, and HUD's final “Guidance to Federal Financial Assistance Recipients Regarding Title VI Prohibition Against National Origin Discrimination Affecting Limited English Proficient (LEP) Persons,” published in the Federal Register on January 22, 2007, and which became effective on March 7, 2007 (“HUD LEP Guidance”). Supporting documentation will include all of the following (1) information identifying the LEP representative for the Grantee, including the representative’s name and contact information; (2) a Four Factor Analysis that is consistent with the HUD LEP Guidance; and (3) a description of the actions the Grantee will take during the course of the grant to fulfill the requirements to provide meaningful access to LEP persons. If deemed necessary as a result of the Four Factor analysis, Grantee will prepare and submit to the Department, a Language Access Plan (“LAP”) that includes all elements of an effective LAP as defined by HUD. The Grantee will also keep records of requests for LEP services, and all LEP services provided by Grantee during the course of the grant. Grantee must submit documentation to the Department demonstrating LEP services provided.

16.0 REPORTING REQUIREMENTS

16.1 Semi-Annual Status Reports NED Inc. will prepare and submit to NEDED a semi-annual status report detailing activities undertaken, applications received and in progress, applications approved, closings held and funds obligated and expended.

17.0 PROGRAM INCOME REUSE PLAN See Appendix A These housing guidelines are hereby approved by action of the Board of Directors of Northeast Economic Development, Inc. (NED, Inc.) this ____ day of_________, 2017. __________________________________ ___________________________ President, NED, Inc. Date These housing guidelines are hereby approved by the Nebraska Department of Economic Development (NEDED) this ____day of _______________________, 2017. __________________________________

NEDED Representative

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Northeast Economic Development, Inc. (NED, Inc.)

Subordination Policy

A. Maximum combined 80% Loan to Value policy on all “Cash Out” refinances or home equity loans where Northeast Economic Development, Inc. (NED, Inc.) remains in current lien position.

B. Maximum combined 100% Loan to Value on “No Cash Out” refinances where NED, Inc. remains

in current lien position. ** All subordination documents must be provided by the lender requesting subordination.**

Appendix B

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RESOLUTION NO. _2017-329-3______________ A RESOLUTION OF THE NORTHEAST ECONOMIC DEVELOPMENT, INC. (NED, INC.) BOARD OF DIRECTORS ACCEPTING AND ADOPTING THE NED, INC. REGIONAL NEW CONSTRUCTION WITH DOWN PAYMENT ASSISTANCE GUIDELINES, WHICH ARE ATTACHED HERETO. BE IT RESOLVED BY THE NED, INC. BOARD OF DIRECTORS THAT THE NEW CONSTRUCTION WITH DOWN PAYMENT ASSISTANCE REUSE FUNDS WILL ADHERE TO THE CURRENT NED, INC. REGIONAL NEW CONSTRUCTION WITH DOWN PAYMENT ASSISTANCE GUIDELINES AS APPROVED BY THE NEBRASKA DEPARTMENT OF ECONOMIC DEVELOPMENT. IT IS EXPRESSLY UNDERSTOOD THAT PROGRAM INCOME AND RECAPTURED FUNDS WILL CONTINUE TO BE MADE TO NED, INC AND REUSED WITHIN NED, INC.’S SERIVCE AREAS AND IS HEREBY APPROVED AND ADOPTED. PASSED AND ADOPTED THIS 29th DAY OF MARCH, 2017. _______________________________________ PRESIDENT, NED, INC. ATTEST ______________________________________ Thomas Higginbotham, Jr., Executive Director



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NED, Inc Board Agenda ______________________________________________________________________________ Object: Recommendation to approve revisions to Northeast Economic Development, Inc. Down Payment Assistance Program Guidelines. Contact Person: Judy Joy For: Action ______________________________________________________________________________ Background: Northeast Economic Development, Inc. is requesting approval of revisions to the Down Payment Assistance Program Guidelines. Changes to the guidelines include updating website addresses, clarification of language, additions, and policy changes due to the Nebraska Department of Economic Development requirements. The Nebraska Department of Economic Development has reviewed the guidelines prior to presenting them to the Northeast Economic Development, Inc. Board of Directors. Changes/additions to the guidelines are italicized and underlined and deletions have a strike-through. Explanation: The following sections have been changed in the guidelines. Please refer to the attached guidelines.

• Purpose - Paragraphs 1-6 – Page 1 • Section 1.2 - Income Eligibility – Page 2 • Section 1.4 Real Property – Page 2 • Section 2.1 - Location – Page 2 • Section 2.2 - Purchase Price – Page 3 • Section 2.4 - Maximum Per Unit Subsidy – Page 3 • Section 4.1 - Loan Program – Page 3 & 4 • Section 5.2 - Underwriting Criteria – Page 5 • Section 5.3 – Procedure for Approval or Denial – Page 5 • Section 5.4 – Purchase Agreement – Page 5 • Section 7.1 Loan Closing – Page 7 • Section 11.0 Marketing – Page 8 • Section 12.0 - Limited English Proficiency (LEP) – Page 8

Motion: To pass resolution accepting and adopting the Northeast Economic Development, Inc. Down Payment Assistance Program Guidelines as presented.

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Northeast Economic Development, Inc. (NED, Inc.) Down Payment Assistance Program Guidelines

PURPOSE The purpose of the Northeast Economic Development Inc. (NED, Inc.) Down Payment Assistance Program is to provide financial assistance to low-to-moderate income households for the purchase of single-family residential housing units, which are safe, decent, sanitary, and affordable utilizing Nebraska Affordable Housing Program (NAHP) Funds. Funding sources utilized through the NAHP consist of Nebraska Affordable Housing Trust Funds (NAHTF), and HOME Investment Partnership Funds. and Community Development Block Grant (CDBG) funds. NED, Inc. has been contracted/organized to facilitate and coordinate the development of housing and economic development initiatives. NED, Inc.’s Down Payment Assistance Program will provide assistance to those persons of greatest need, improve the availability of housing, promote home ownership, and increase attractiveness of designated underdeveloped neighborhoods and increase local employment. This program will be operated by NED, Inc. through its Board of Directors. The NED, Inc. Board of Directors is responsible for the establishment of the following guidelines. This program is in shall be conducted in a manner to be in compliance with the Fair Housing Act. NED, Inc. will comply with the following Sections of the Fair Housing Act and the following regulations: Sec. 818. [42 U.S.C. 3617] Interference, coercion, or intimidation; enforcement by civil action. NED, Inc.’s housing rehabilitation program down payment assistance program does not coerce, intimidate, threaten, or interfere with any person seeking housing rehabilitation down payment assistance funds from NED, Inc. NED, Inc. does not discriminate when loaning housing rehabilitation down payment assistance funds based on race, color, religion, sex, handicap, familial status, or national origin and has in fact adopted a Fair Housing Resolution. NED, Inc. will follow the following Code of Federal Regulations (CFR) regulations for implementing the Fair Housing Act for the Department of Housing and Urban Development (HUD) funded programs. Refer to website: https://en.wikipedia.org/wiki/code_of_Federal_Regulations Title 24 CFR 100 Subpart C provides NED, Inc.’s housing rehabilitation down payment assistance program with interpretations of conduct that is unlawful under section 805. NED, Inc. will follow these interpretations when providing financial assistance for the rehabilitation down payment of a dwelling. NED, Inc. does not discriminate when loaning rehabilitation down payment assistance funds based on race, color, religion, sex, handicap, familial status, or national origin and has, in fact, adopted a Fair Housing Resolution. Title 24 CFR 100 Subpart D provides that NED, Inc.’s housing rehabilitation down payment assistance program with will provide guidance to permit handicapped persons reasonable modifications of the existing dwelling that is being rehabilitated purchased. Title 24 CFR 100 Subpart F provides NED, Inc.’s housing rehabilitation program down payment assistance program with guidance of conduct that is unlawful under Section 818 of the Fair Housing Act. Title 24 CFR 107 is used to take action necessary and appropriate to prevent discrimination because of race, color, religion, sex, handicap, familial status, or national origin. Under this section NED, Inc. insures that all legal documents contain provisions regarding discrimination. NED, Inc. maintains racial, national origin and sex data required by the department in connections with its programs. Title 24 CFR 110 sets forth regulations regarding the purpose and location of posters. NED, Inc. has its posters prominently displayed, and of proper size, so they can be read by all persons seeking housing. NED, Inc. letterhead and all housing brochures bear the Fair Housing logo.

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1.0 APPLICANT ELIGIBILITY

1.1 General (Conflict of Interest) No member of the governing body, official employee, agent or member of their immediate family of NED Inc. and/or its affiliate Northeast Nebraska Economic Development District (NENEDD) who exercises policy, decision-making functions or responsibilities in connection with the planning and implementation of the Down Payment Assistance Program shall directly or indirectly benefit from this program, unless the Nebraska Department of Economic Development (NEDED) has granted written exception to that member. This prohibition shall continue for one year after an individual’s relationship with NED, Inc. or NENEDD ends. Any other employee, officer, or board member may be eligible, but will be treated no differently in the determination of applications accepted for funding. Enclosed with this person’s application shall be a statement of disclosure which outlines the nature of the possible conflict and a description of how the public disclosure was made. Included will also be verification that the affected person has withdrawn from the active involvement in any down payment assistance grant related issues.

1.2 Income Eligibility All determinations for assistance will be based upon need. Households receiving assistance from this program for existing housing or newly constructed units will have an annual anticipated gross income at or below 80% of the Area Median Income (AMI) for CDBG and HOME Funds and 120% for NAHTF Funds for the county in which they receive assistance as established by HUD. Households receiving assistance for a newly constructed unit will have an annual anticipated gross income of 80% or below for CDBG and HOME Funds and at or below 120% for NAHTF Funds of the AMI for the county in which they receive assistance. A home is considered “newly constructed” if no person or family has ever lived in the home. Annual anticipated gross income (as defined in 24 CFR 5.609) is the gross income of all adult household members that is anticipated to be received during the upcoming 12 months. Third-party verifications and various credit checks, recent pay stubs and tax returns will determine the applicant’s eligibility for the program. For the purposes of confidentiality, a statement by the Housing Specialist, who has been presented with adequate documentation to verify that program participants meet the income thresholds as defined by HUD, shall be deemed sufficient to document low-income status when applications are presented to the NED, Inc. Board of Directors. 1.3 Family Status To qualify for a home mortgage under this Down Payment Assistance Program, the applicant must be a minimum of a one-person household. 1.4 Real Property In order to qualify under the program, an applicant shall not currently own or have any other interest in other real property at the time of application. The property to be purchased must be the principal residence of the applicant during the deferral/repayment period of the down payment assistance loan. The property to be purchased cannot be an occupied rental or have had tenant occupancy within the last year, previous 12 months from the date of application or the Uniform Relocation Act will be triggered and the necessary forms will have to be executed.

2.0 PROPERTY ELIGIBILITY

2.1 Location The housing units to be purchased by program participants will be located within 2 miles of the city limits of communities in NED Inc.’s service area, and subject to limitations set by HOME CDBG and NAHTF grant rules and regulations. NED Inc.’s service area includes the Central Investment Zone (CIZ) counties of Antelope, Boone, Knox and Nance and the Northeast Investment Zone (NIZ)

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counties of Burt, Cedar, Colfax, Cuming, Dakota, Dixon, Dodge, rural Douglas, Madison, Pierce, Platte, Stanton, Thurston, Washington, and Wayne. 2.2 Purchase Price The maximum purchase price of each housing unit will not exceed 95% of the median purchase price of the area. For more information see: http://www.neded.org/community/community-info/documentslibrary-a-forms/trust-fund and http://www.neded.org/community/grants/documentslibrary-a-forms/home http://opportunity.nebraska.gov/community/grants/applications/income-limits-cdbg-home-nahtf#NAHTF_Data. 2.3 Owner-Occupied The Down Payment Assistance Program shall be for the purchase of an owner-occupied principle residence only and the property cannot be retained for rental purposes. At loan closing, the client will execute a Primary Residence Certification Form which indicates that the property being purchased with down payment assistance funds must remain the client’s primary residence throughout the down payment assistance loan period. If, at any time during the down payment assistance loan period, the property is no longer the client’s primary residence, the client understands that they are in default of the Down Payment Assistance Program 2.4 Maximum Per Unit Subsidy Financial assistance provided to the homebuyer shall not exceed the maximum per unit NAHP subsidy. The subsidy limits by county can be located at the following website: http://www.neded.org/community/community-info/documentslibrary-a-forms/trust-fund and http://www.neded.org/community/grants/documentslibrary-a-forms/home http://opportunity.nebraska.gov/community/grants/applications/income-limits-cdbg-home-nahtf#NAHTF_Data. 2.5 Energy Efficiency Criteria Newly-constructed housing units will meet or exceed the 2009 (or most current) International Model Energy Code and the Nebraska Energy Office will approve all building specifications. All units assisted with NAHP funds will be made to meet Housing Quality Standards (HQS), and NEDED Minimum Rehabilitation Standards. Housing units that need repairs completed, as determined by the HQS initial inspection, will have all repairs finished and re-inspected prior to the Thursday before the NED, Inc. Board of Directors regularly scheduled meeting. 2.6 Unit Characteristics/Eligible Properties Existing or newly constructed single-family housing units are eligible for this program. A home is considered “newly constructed” if no person or family has ever lived in the home. Housing connected to other space used for commercial purposes, mobile homes, and rental properties are not eligible for assistance. Housing units located within a Special Flood Hazard Area (SFHA) are not eligible for assistance. Duplexes are eligible for assistance if the unit is owner-occupied and a definitive property boundary is established.

3.0 RELOCATION POLICY

The relocation of persons for acquisitions of properties either by voluntary or involuntary means must adhere to the federal rules and regulations as stated in 49.CFR 24.101. In cases where either voluntary or involuntary acquisition is anticipated, NEDED will be contacted prior to any action.

4.0 FINANCIAL ASSISTANCE 4.1 Loan Program All applicants will be required to secure a single-family mortgage loan from a lender of their choice to purchase a single-family housing unit. Applicants will need a pre-qualification letter and Good


http://www.neded.org/community/grants/documentslibrary-a-forms/home



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Faith Estimate Loan Estimate Statement from the primary lender prior to applying for down payment assistance funds. The primary lender and its underwriting criteria determine the basis for NED, Inc.’s down payment assistance. The amount of the down payment assistance loan will be determined at the time of application and will not exceed 20% of the purchase price of the housing unit and will be no more than $30,000 for either an existing or newly constructed single family housing unit. Applicants purchasing existing housing units will have household gross annual incomes no greater than 80% of the Area Median Income (AMI) for CDBG and HOME Funds and 120% for NAHTF Funds for the county in which they receive assistance. Applicants purchasing newly constructed housing units will have household gross annual incomes no greater than 80% for CDBG & HOME Funds and 120% for NAHTF Funds of AMI for the county in which they receive assistance. The loan will be used toward the down payment of one housing unit and associated closing costs. The applicant is required to provide $1,000 of their own funds to cover a portion of the required closing fees and prepaid escrow accounts. NED, Inc. will charge a $500 closing fee which can be applied toward the $1,000 requirement. The primary lender will appraise the property. A subordinated lien in favor of NED, Inc. will be placed upon the property at the time of signing the promissory note in an amount equal to the down payment assistance loan. This lien will take a subordinate position to the primary lender’s original mortgage. Future refinancing, home equity loans and all future liens will take a subordinated position to the NED, Inc. loan. At the request of the borrower, future equity loans, which require a release or subordination of NED, Inc.’s lien, will require the NED, Inc. loan balance to be paid off unless the Board of directors receives a written explanation of need. All subordination requests will follow NED, Inc.’s subordination policy (attached as Appendix B). The homeowner will be required to pay all closing and filing costs associated with refinancing and subordination if approved by the NED, Inc. Board of Directors. The down payment assistance loan shall consist of a 0% deferred interest loan. No debt service of the borrower will be required for the down payment assistance loan until the property is sold or upon transfer of title. In the event the borrower or his or her heirs shall sell or transfer said property, full repayment of the loan to NED, Inc. is required. . Loan repayment shall become due and payable up to the amount of net proceeds, if any, in the event borrower or his or her heirs shall sell, rent or otherwise convey the said property, or should the borrower(s) not occupy the said property as their primary residence according to the term of Section 2.3 Owner/Occupied. In the event repayment of the NAHP assistance occurs during the NAHP imposed affordability period applicable to each funding source, recapture of all NAHP assistance funds is required. The amount recaptured cannot exceed the net proceeds. Net proceeds are the sales price minus superior loan repayment (other than CDBG, HOME, or NAHTF funds) and any closing costs. If the new sale price received less the primary lender’s loan is not sufficient to repay NED, Inc., the borrower will be responsible for the repayment of the down payment assistance loan. 4.2 FORECLOSURE Lender shall give the notice to Borrowers following Borrower’s breach of any covenant or agreement in the Promissory Note and the Deed of Trust of which it secures. The notice shall specify (a) the default, (b) the action required to cure the default, (c) a date not less than thirty (30) days from the date the notice is given to Borrowers by which the default must be cured, and (d) failure to cure the default on or before the date specified in the notice may result in acceleration of the sum secured, the deed of trust and resale of the property. Upon acceleration of the sum secured and resale of the property, NED, Inc. shall apply the proceeds of the sale in the following order: (a) to all expenses of the sale including, but not limited to, NED, Inc.’s fees as permitted by Nebraska law and reasonable fees; (b) to all sums secured by this security agreement; and (c) any excess be recaptured by NED, Inc. will recapture the new proceeds in the case of foreclosure.

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5.1 Application In order to obtain an application form the applicant must call or visit NED, Inc.’s office. Staff will explain the assistance available and will be responsible for processing the application, verifying income and determining the applicant’s eligibility for participation in the program. During the application review, NENEDD staff may make recommendations and referral to other programs available such as USDA Direct Rural housing loans. 5.2 Underwriting Criteria NENEDD staff will take into consideration underwriting criteria of the primary lender and the following mitigating factors in making a credit recommendation to NED, Inc.’s Board of Directors. (criteria is intended as a guide and not as absolute determinants.) A. Credit Guidelines: Credit payment history, revolving accounts, any collections, judgments, liens, bankruptcy, foreclosures, repossessions, and credit depth. B. Debt to Income Ratios: Housing expense ratios between 25% - 28% maximum of 28% and total household expense ratio maximum of 40%.

C. Compensating Factors: Any of the following may be considered as compensating factors providing they are strong: ratios, equity, assets, credit scores, time on the job.

5.3 Procedure for Approval or Denial Applications will be taken of a first-ready first-serve basis. Only complete, original, and signed applications containing all information and documentation that are delivered to the offices of NED, Inc., 111 South 1st Street, Norfolk, NE 68701 will be processed. Electronic copies received via e-mail or fax will not be processed until the original application is received via postal mail or delivery in person to the NED, Inc. office. First-ready means that the following items have been completed in order to present the application to NED, Inc.’s Board of Directors : (1) applicant has completed application/initial interview, (2) income eligibility has been determined through third party verifications of income and assets, (3) Annual Income Worksheet prepared by NENEDD staff and signed by the applicant, (4) Pre-qualified letter/Good Faith Estimate Loan Estimate Statement received from primary lender, (5) Purchase Agreement signed, (6) Housing Quality Standards (HQS) initial inspection and re-inspection (if required), and (7) board loan summary prepared by NENEDD staff. NED, Inc.’s Board of Directors typically meet on the last Wednesday of each month. Applications will be presented to the NED Inc. Board of Directors if all of the above-mentioned items are completed by noon on Thursday prior to the regularly scheduled meeting. Applications will be presented to NED Inc. Board of Directors by applicant number only. The application will be reviewed and approved/denied by NED, Inc.’s Board of Directors based upon the recommendation of NENEDD staff. Approved applicants will be notified in writing and/or via e-mail, if available. Denied applicants will be notified in writing stating the reason for not being selected. 5.4 Purchase Agreement Once the applicant is pre-qualified at a primary lender of their choice, the applicant will sign a Purchase Agreement. A signed purchase agreement will be required once the applicant is pre-qualified with their primary lender. 5.5 Request for Funds NED, Inc. will submit a Request for Funds to NEDED on a reimbursement basis only.

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It is expressly understood that NED, Inc. may activate its line of credit in order to expedite the loan closing. It is also understood that any Line of Credit interest accrued from the time of loan closing to the date that NED, Inc. receives reimbursement from the State of Nebraska will be considered General Administration expense of the project and will not be charged to the homeowner. 5.6 Homebuyer Education Workshop Each applicant is required to attend a Homebuyer Education workshop prior to loan closing. The Homebuyer Education Workshop includes an educational packet and instructional material on topics such as family financial management, record keeping, property maintenance and upkeep, landscaping, lawn and pest management, appliances and home furnishings. A copy of the certificate of completion of the Homebuyer Education Workshop is to be sent to NED, Inc. from an approved REACH program provider similar to those offered by NeighborWorks Northeast Nebraska, Wayne Housing Development Corporation, Northeast Housing Initiative (NEHI) or USDA Rural Development. Homebuyers wanting to attend a workshop other than these listed will need to contact NED, Inc. to determine if the workshop is provided by an approved REACH program provider. If the homebuyer is unable to attend a workshop sponsored by any of the above-mentioned organizations, then it is their responsibility to find an alternative approved REACH program provider.

6.0 LEAD- BASED PAINT

6.1 Lead- Based Paint Brochure The HUD/EAP Disclosure Rule includes the following language on a homebuyer’s right to conduct a lead hazard evaluation. Program participants shall receive, as part of their application packet a copy of the HUD brochure on lead-based paint entitled “Protect Your Family From Lead In Your Home”. The receipt of this brochure by the program participant shall be documented by signature of the homebuyer on the “Notification – Watch out for Lead-Based Paint Poisoning” form included in the application packet. 6.2 Work Plan in Accordance with 24 CFR Part 35, Subpart A

1. After signing a purchase agreement, the buyer has 10 days to perform a risk assessment or paint inspection of the home. The buyer and seller may mutually agree to lengthen or shorten this 10-day time period. If the buyer exercises this right, the buyer is responsible for scheduling and paying for the risk assessment or the paint inspection. 2. NED, Inc. Housing Specialist will conduct visual assessment on all units built prior to 1978. 3. If the lead hazard evaluation indicated that lead-based paint hazards are found, the buyer has the right to cancel the contract. However, this right does not exempt the buyer from any costs of cancellation if the right to cancel is not made clear in the contingency to the sales contract. 4. If a lead hazard is found, it would be stabilized using lead safe work practices by trained and certified workers. 5. Lead safe work practices are not required if the area of repair falls below deminimis threshold. 6. Clearance will be achieved before occupancy of the unit. 7. Four options for addressing lead hazards found due to such evaluations are (this will be determined on a case by case basis):

A. Refer buyers to a purchase/rehabilitation/resell program. B. Reject homes with lead hazards from the program and assist buyer in finding another home. C. Have the seller fix the hazard prior to purchase. D. Negotiate the price of the home down to provide funds for the buyer to fix the hazards.

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7.0 LOAN CLOSING

7.1 Loan Closing NED, Inc. will schedule the loan closing with the borrower and the primary lender. The primary lender will prepare all closing documents for its loan. NED, Inc. will prepare and have the borrower execute the following items at closing:

A. Regulation-Z Loan Disclosure B. Promissory Note C. Memorandum of Understanding D. Deed of Trust E. Request for Loss-Payee F. Primary Residence Certification Form

G. Promotional Use Form (Beneficiary is giving a voluntary release and authorization for publication of photos that are taken at the time of inspection of the property.)

Upon signing of the closing documents, the Deed of Trust will be recorded at the Register of Deeds Office of the county in which the property is located. The Request for Loss Payee form will be mailed to the borrower’s local insurance agent. 7.2 Insurance Owner-occupants are required to carry a basic property insurance policy of a least one-hundred percent (100%) of replacement cost. All proceeds resulting from insurance must be applied toward the cost of needed repairs to the home. Documentation of repairs completed must be provided. At NED, Inc.’s discretion insurance proceeds may be held pending the completion of the repairs. Homeowners insurance must be carried on the dwelling throughout the loan deferral and repayment period in order to maintain compliance in the program. NED, Inc. is to be named as a loss-payee on all insurance policies in a subordinate position to the primary lender. 7.3 Close-Out NED, Inc. shall maintain and keep all applications as well as all other required document, records, and other evidence in conformance with NAHP regulations.

8.0 GRIEVANCE PROCEDURES In the event that any applicant feels he or she has been unfairly treated or discriminated against during the process of selections of projects to be funded, excluding the determination of ability to secure a home mortgage loan from a financial institution, or within any other segment of this Down Payment Assistance Program, he or she may appeal the decision of the NENEDD staff to the NED, Inc. Board of Directors for their consideration. The appeal must be submitted in writing to the President of NED, Inc. and postmarked with 14 calendar days of the decision. The NED, Inc. Board of Directors will act to support or overturn the action within 30 days of the receipt of the appeal. The NED, Inc. Board of Directors will have final authority in the decision. NEDED will be notified of any grievances that the grantee receives which are not resolved by the grantee’s standard grievance procedures. In some cases it may be necessary to use a neutral party as mediator between the homeowner, the grantee, the grant administrator and the contractor. The third party mediator cannot be the grantee administrator or a member of the grantees decision making council. Economic Development Districts throughout the State of Nebraska would be utilized at the third party mediator. Appeals regarding loan ability shall be made to the financial institutions in accordance with their procedures.

9.0 AMENDMENTS TO THE GUIDELINES In an ongoing effort to improve the quality of the Down Payment Assistance Program, NED, Inc. will receive any suggestions on amendment to the guidelines from the public, program participants,

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realtors, financial institutions or members of NENEDD. Upon approval and adoption of the amendment by the NED, Inc. Board of Directors, the NEDED Program Representative will review and approve the amendment which will be included in the program guidelines.

10.0 OFFICIAL CONTACT OFFICE The place of contact for this program shall be the office of NED, Inc., 111 South 1st Street, Norfolk, NE 68701. Any grievances, suggestions. or requests for information shall be directed to that office. This in no way shall be construed to limit other interested parties from distributing information about the program or receiving suggestions for amendments to the program. All grievances shall be directed to NED, Inc. in writing.

11.0 MARKETING NED, Inc.’s affirmative marketing procedures include but are not limited to marketing to local and regional residents, tenants of public housing and manufactured housing, other families assisted by public housing agencies, and households identified to be potentially eligible but least likely to apply. Marketing will include advertisements in daily and weekly newspapers, notices posted on NENEDD’s website and new briefs which received by banks, community members, associate members, and public members in the Central and Northeast Investment Zones. NED, Inc. will also display posters and brochures in areas where interested persons visit on a daily basis.

12.0 LIMITED ENGLISH PROFICIENCY (LEP) It is the policy of the grantee to take reasonable steps to provide meaningful access to its programs and activities for persons with Limited English Proficiency (LEP) in accord with Executive Order 13166 titled, “Improving Access to Services by Persons with Limited English Proficiency”. The grantee’s policy is to ensure that staff will communicate effectively with LEP individuals, and LEP individuals will have access to important programs and information. The grantee is committed to complying with federal and state requirements in providing free meaningful access to this program and its activities for LEP persons. It is the policy of the grantee to take reasonable steps to provide meaningful access to its programs and activities for persons with Limited English Proficiency (LEP). In accord with and as required by Title VI of the Civil Rights Act of 1964, Executive Order 13166, and HUD's final “Guidance to Federal Financial Assistance Recipients Regarding Title VI Prohibition Against National Origin Discrimination Affecting Limited English Proficient (LEP) Persons,” published in the Federal Register on January 22, 2007, and which became effective on March 7, 2007 (“HUD LEP Guidance”). Supporting documentation will include all of the following (1) information identifying the LEP representative for the Grantee, including the representative’s name and contact information; (2) a Four Factor Analysis that is consistent with the HUD LEP Guidance; and (3) a description of the actions the Grantee will take during the course of the grant to fulfill the requirements to provide meaningful access to LEP persons. If deemed necessary as a result of the Four Factor analysis, Grantee will prepare and submit to the Department, a Language Access Plan (“LAP”) that includes all elements of an effective LAP as defined by HUD. The Grantee will also keep records of requests for LEP services, and all LEP services provided by Grantee during the course of the grant. Grantee must submit documentation to the Department demonstrating LEP services provided.

13.0 REPORTING REQUIREMENTS

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13.1 Semi-Annual Status Reports NED Inc. will prepare and submit to NEDED a semi-annual status report detailing activities undertaken, applications received and in progress, applications approved, closings held and funds obligated and expended.

14.0 PROGRAM INCOME REUSE PLAN See Appendix A These housing guidelines are hereby approved by action of the Board of Directors of Northeast Economic Development, Inc. (NED, Inc.) this _____ day of____________, 2017. __________________________________ ___________________________ President, NED, Inc. Date These housing guidelines are hereby approved by the Nebraska Department of Economic Development (NEDED) this ____day of _______________________, 2017. __________________________________

NEDED Representative



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A. Maximum combined 80% Loan to Value policy on all “Cash Out” refinances or home equity loans

where Northeast Economic Development, Inc. (NED, Inc.) remains in current lien position.

B. Maximum combined 100% Loan to Value on “No Cash Out” refinances where NED, Inc. remains in current lien position.

** All subordination documents must be provided by the lender requesting subordination.**

Appendix B

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RESOLUTION NO. _2017-329-2______________ A RESOLUTION OF THE NORTHEAST ECONOMIC DEVELOPMENT, INC. (NED, INC.) BOARD OF DIRECTORS ACCEPTING AND ADOPTING THE NED, INC. REGIONAL DOWN PAYMENT ASSISTANCE GUIDELINES, WHICH ARE ATTACHED HERETO. BE IT RESOLVED BY THE NED, INC. BOARD OF DIRECTORS THAT THE DOWN PAYMENT ASSISTANCE REUSE FUNDS WILL ADHERE TO THE CURRENT NED, INC. REGIONAL DOWN PAYMENT ASSISTANCE GUIDELINES AS APPROVED BY THE NEBRASKA DEPARTMENT OF ECONOMIC DEVELOPMENT. IT IS EXPRESSLY UNDERSTOOD THAT PROGRAM INCOME AND RECAPTURED FUNDS WILL CONTINUE TO BE MADE TO NED, INC AND REUSED WITHIN NED, INC.’S SERIVCE AREAS AND IS HEREBY APPROVED AND ADOPTED. PASSED AND ADOPTED THIS 29th DAY OF MARCH, 2017. _______________________________________ PRESIDENT, NED, INC. ATTEST ______________________________________ Thomas Higginbotham, Jr., Executive Director



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NED, Inc Board Agenda ______________________________________________________________________________ Object: Recommendation to approve revisions to Northeast Economic Development, Inc. Owner/Occupied Housing Rehabilitation Program Guidelines. Contact Person: Judy Joy For: Action ______________________________________________________________________________ Background: Northeast Economic Development, Inc. is requesting approval of revisions to the Owner/Occupied Housing Rehabilitation Program Guidelines. Changes to the guidelines include updating website addresses, clarification of language, additions, and policy changes due to the Nebraska Department of Economic Development requirements. The Nebraska Department of Economic Development has reviewed the guidelines prior to presenting them to the Northeast Economic Development, Inc. Board of Directors. Changes/additions to the guidelines are italicized and underlined and deletions have a strike-through. Explanation: The following sections have been changed in the guidelines. Please refer to the attached guidelines.

• Purpose – Page 1, Paragraphs 1, 2, and 3 • Section 1.2 Income Eligibility – Page 2 • Section 2.1 Location – Page 2 • Section 2.5 Types of Improvements – Page 3 • Section 3.3 Relocation Policy – Page 5 • Section 4.1 Loan Program – Page 5 and 6 • Section 4.2 Loan Payments – Page 6 • Section 4.5 Hardship Review – Page 7 • Section 4.6 Economic Feasibility for Rehabilitation – Page 7 • Section 4.7 Unit Rehabilitation Limitations – Page 7 & 8 • Section 5.1 Application Process – Page 8 • Section 5.2 Return Beneficiaries – Page 8 • Section 5.4 Procedure for Approval or Denial – Page 9 • Section 6.1 Pre-Construction Loan Documents – Page 9 • Section 6.2 Post-Construction Loan Documents – Page 9 • Section 7.0 Construction Process – Page 10 • Section 13.0 Limited English Proficiency (LEP) – Page 12 & 13

Motion: To pass resolution accepting and adopting the Northeast Economic Development, Inc. Owner/Occupied Housing Rehabilitation Program Guidelines as presented.

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Northeast Economic Development, Inc. (NED, Inc.) Owner/Occupied Housing Rehabilitation Program Guidelines

PURPOSE It is the goal of Northeast Economic Development, Inc. (NED, Inc.) to assist low income households to improve the health and safety of their living conditions through housing rehabilitation. The Nebraska Affordable Housing program (NAHP) utilizing Nebraska Affordable Housing Trust Funds (NAHTF) and, HOME Investment Partnership Funds and Community Development Block Grant Funds (CDBG) plays a vital role in increasing the number of good, habitable dwelling units and improving the housing stock by providing low-interest loans to homeowners to rehabilitate their homes. The program will prevent the spread of blight and its influence, provide assistance to those persons of the greatest need, improve the availability and desirability of housing, discourage the abandonment or neglect of residential dwelling units, promote continued home ownership, increase the attractiveness of existing neighborhoods, and increase local employment. This program will be operated by NED, Inc. through its Board of Directors. The NED, Inc. Board of Directors is responsible for the establishment of the following guidelines. This program is in shall be conducted in a manner to be in compliance with the Fair Housing Act. NED, Inc. will comply with the following Sections of the Fair Housing Act and the following regulations: Sec. 818. [42 U.S.C. 3617] Interference, coercion, or intimidation; enforcement by civil action. NED, Inc.’s housing rehabilitation program does not coerce, intimidate, threaten, or interfere with any person seeking housing rehabilitation funds from NED, Inc. NED, Inc. does not discriminate when loaning housing rehabilitation funds based on race, color, religion, sex, handicap, familial status, or national origin and has in fact adopted a Fair Housing Resolution. NED, Inc. will follow the following Code of Federal Regulations (CFR) regulations for implementing the Fair Housing Act for the Department of Housing and Urban Development (HUD) funded programs. Refer to website: https://en.wikipedia.org/wiki/code_of_Federal_Regulations Title 24 CFR 100 Subpart C provides NED, Inc.’s housing rehabilitation program with interpretations of conduct that is unlawful under section 805. NED, Inc. will follow these interpretations when providing financial assistance for the rehabilitation of a dwelling. NED, Inc. does not discriminate when loaning rehabilitation funds based on race, color, religion, sex, handicap, familial status, or national origin and has, in fact, adopted a Fair Housing Resolution. Title 24 CFR 100 Subpart D provides NED, Inc.’s housing rehabilitation program with guidance to permit handicapped persons reasonable modifications of the existing dwelling that is being rehabilitated. Title 24 CFR 100 Subpart F provides NED, Inc.’s housing rehabilitation program with guidance of conduct that is unlawful under Section 818 of the Fair Housing Act. Title 24 CFR 107 is used to take action necessary and appropriate to prevent discrimination because of race, color, religion, sex, handicap, familial status, or national origin. Under this section NED, Inc. insures that all legal documents contain provisions regarding discrimination. NED, Inc. maintains racial, national origin and sex data required by the department in connections with its programs. Title 24 CFR 110 sets forth regulations regarding the purpose and location of posters. NED, Inc. has its posters prominently displayed, and of proper size, so they can be read by all person seeking housing. NED, Inc. letterhead and all housing brochures bear the Fair Housing logo. 1.0 Applicant Eligibility

1.1 General (Conflict of Interest)

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No member of the governing body, official employee, agent or member of their immediate family of NED Inc. and/or its affiliate Northeast Nebraska Economic Development District (NENEDD) who exercises policy, decision-making functions or responsibilities in connection with the planning and implementation of the housing rehabilitation program shall directly or indirectly benefit from this program, unless the Nebraska Department of Economic Development (NEDED) has granted written exception to that member. This prohibition shall continue for one year after an individual’s relationship with NED, Inc. or NENEDD ends. Any other employee, officer, or board member may be eligible, but will be treated no differently in the determination of applications accepted for funding. Enclosed with this person’s application shall be a statement of disclosure which outlines the nature of the possible conflict and a description of how the public disclosure was made. Included will also be verification that the affected person has withdrawn from the active involvement in any housing rehabilitation grant related issues.

1.2 Income Eligibility Households receiving assistance under this program will be at or below 80% of the Area Median Income (AMI) for CDBG and HOME Funds and 120% for NAHTF Funds for the county in which they receive assistance as established by the Department of Housing and Urban Development (HUD). Annual anticipated gross income (as defined in 24 CFR 5.609) is the gross income of all adult household members that is anticipated to be received during the upcoming 12 months. Third-party verifications and various credit checks, recent pay stubs and tax returns will determine the applicant’s eligibility for the program. For the purposes of confidentiality, a statement by the Housing Specialist, who has been presented with adequate documentation to verify that program participants meet the income thresholds as defined by HUD, shall be deemed sufficient to document low-income status when applications are presented to the NED, Inc. Board of Directors.

2.0 PROPERTY ELIGIBILITY 2.1 Location The housing units to be rehabilitated will be located in NED, Inc.’s service area, and are subject to limitations set by HOME CDBG, and NAHTF grant rules. The NED, Inc. service area is defined as follows: The Central Investment Zone (CIZ) includes properties located within 2 miles of the city limits of communities located within the counties of Antelope, Boone, Knox, and Nance. The Northeast Investment Zone (NIZ) includes properties located within 2 miles of the city limits of communities located within the counties of Burt, Cedar, Colfax, Cuming, Dakota, Dixon, Dodge, rural Douglas, Madison, Pierce, Platte, Stanton, Thurston, Washington, and Wayne. Housing units to be rehabilitated cannot be located with a Special Flood Hazard Area (SFHA). The units must also abide by all other policies set forth in these guidelines.

2.2 Unit Characteristics Only owner-occupied (primary residence), single family housing units, which are currently in substandard condition, will be eligible for rehabilitation. Mobile homes, housing connected to other space used for commercial purposes, and rental properties are not eligible for assistance. Housing units located within a Special Flood Hazard Area will not be eligible for assistance. Duplexes are eligible for assistance if one unit is owner-occupied (primary residence) and rent is charged for the other half of the duplex, which counts toward the applicant’s household income. Land contracts, real estate contracts, and life estates are not eligible for the housing rehabilitation program. Homeownership is determined by obtaining and reviewing a copy of the filed property deed. The homeowner is responsible for the completion of the Homeowner Property Title Verification form included in the application.

2.3 Taxes Property taxes must be paid current at the time the application is submitted. Property taxes must be kept current throughout the homeowner’s loan or forgivable loan repayment period in order to remain in compliance with the program. 2.4 Insurance

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Owner-occupants are required to carry a basic property insurance policy of at least one hundred (100%) of the unit’s replacement cost. All proceeds resulting from insurance must be applied toward the cost of needed repairs to the home. Documentation of repairs completed must be provided. At NED, Inc.’s discretion insurance proceeds may be held pending the completion of the repairs. The above-referenced insurance coverage must be carried on the unit for the entire duration of the rehabilitation loan term. NED, Inc. will be named as a loss-payee on all insurance policies.

2.5 Types of Improvements All units must be improved to meet the NEDED Minimum Rehabilitation Standards at the completion of the rehabilitation. The following items listed are eligible expenditures to bring a unit up to NEDED Minimum Rehabilitation Standards:

Structural Repairs: Foundations; sagging or rotting beams; joists and columns; stairs and porches; roofs; chimneys; and floors.

Modernization of: Plumbing and plumbing fixtures; furnace and water heaters; and lighting and wiring.

General Interior Renewal and Modernization to: Wall, ceiling and floor repair; painting and paneling; (no lead based paint will be used) room rearrangement; additions to alleviate over-crowding conditions.

Energy Conservation and Weatherproofing: Ceiling and wall insulation; window and door repair or replacement; caulking and weather-stripping; installation of storm windows and doors; roof covering removal and installation; siding and trim painting or replacement.

The correction of Minimum Rehabilitation Standard deficiencies is given top priority in the rehabilitation process.

The following items can also be included in the rehabilitation work if funding is available and these items contribute to the health, safety and/or well-being of the occupant, or the items contribute to the structural integrity or long-term preservation of the unit:

Handicap accessibility items; painting (no lead based paint will be used); paneling; carpeting; improving clothes closets or shelving; improving kitchen cabinets; air conditioning; sidewalk repair.

3.0 MINIMUM HOUSING REHABILITATION STANDARDS/CODE ENFORCEMENT

3.1 Condition At the completion of rehabilitation, units must comply with the NEDED Minimum Rehabilitation Standards. The unit’s condition must be such that it can be rehabilitated at a reasonable cost. (See Section 4.6 of the guidelines.)

Lead-Based Paint Hazard Control: Lead-based paint removal or remediation will be completed in accordance with HUD’s Lead Safe Rule.

Hazardous Conditions: Hazardous conditions are subjective, but generally are defined as urgent health and/or safety issues as determined by the Housing Specialist on a case-by-case basis. Program participants, shall receive as part of the application packet, a copy of the HUD brochure entitled “Protect Your Family From Lead In Your Home” regarding information about lead-based paint. The signed receipt of this brochure by the program participant will be documented in the application. 3.2 Lead-Based Paint Hazard Evaluation and Reduction

1. For work under $5,000 – “Do No Harm”

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Safe work practices must be followed for all rehabilitation activities, and paint disturbed during the rehabilitation project must be repaired. Clearance of the worksite must be performed.

2. For work between $5,000 and $25,000 – Risk Assessments and Interim Controls Interim controls must be performed on hazards identified by the risk assessment and paint disturbed during the rehabilitation project must be repaired. Interim controls include paint stabilization, dust removal, preventive maintenance that keeps lead hazards from developing, treating some or all friction and impact surfaces, and covering contaminated bare soil. If there is more than 9 ft2 of bare soil, which has not been tested, soil treatment is required (24 CFR 35.1330). Bare soil can be covered with appropriate treatments such as gravel, wood chips, sod or permanent covering. OR Presume Presence of Lead and Perform Standard Treatments If lead-based paint and/or lead-based paint hazards are presumed or exist, standard treatments must be carried out for the entire unit. Standard treatments include:

• Paint stabilization • Making horizontal surfaces smooth and cleanable • Correction of dust generating conditions • Treatment of bare soil exceeding 9 ft2 • Safe work practices while the work is being performed • The unit must pass clearance

A person performing interim controls must be trained in accordance with the hazard communication standard for the construction industry issued by the Occupational Safety and Health Administration of the U.S. Department of Labor at 29 CFR 1926.59, and either be supervised by an individual certified as a lead-based paint abatement supervisor or have completed successfully one of the following lead-safe work practice courses, except that this supervision or lead-safe work practices training requirement does not apply to work that disturbs painted surfaces less than the de minimis limits of Sec. 35.1350(d):

I. A lead-based paint abatement supervisor course accredited in accordance with 40 CFR 745.225

II. A lead-based paint abatement worker course accredited in accordance with 40 CFR 745.225 or

III. Another course approved by HUD for this purpose after consultation with the EPA. A current list of approved courses is available on the Internet at http://www.hud.gov/offices/lead, or by mail or fax from the HUD Office of Healthy Homes and Lead Hazard Control at (202) 755-1785, extension 104. Persons with hearing or speech impediments may access the above telephone number via phone or TTY by calling the toll-free Federal Information Relay Service at 800-877-8339.

IV. The Remodeler’s and Renovator’s Lead-Based Paint Training Program, “prepared by HUD and the National Association of the Remodeling Industry; or

V. Another course approved by HUD for this purpose after consultation with EPA. (4)

3. For work over $25,000 – Interior Risk Assessment and Abatement and Exterior Stabilization Surfaces painted with lead-based paint that is disturbed during rehabilitation and those hazards identified by the risk assessment must all be abated. Abatement includes removing lead-based paint from surfaces, enclosure methods, removing and replacing components painted with lead-based paint and removing and replacing contaminated bare soil exceeding 9 ft2 in area. Abatement methods that last 20 years are considered to be permanent. OR Presume Lead and Perform Full Abatement If you presume the presence of lead-based paint and/or lead-based paint hazards, the surfaces being disturbed during rehabilitation and all applicable surfaces – deteriorated,

http://www.hud.gov/offices/lead

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friction, impact and accessible (chewable) surfaces and bare soil surfaces in excess of 9 ft2 – must be abated.

3.3 Relocation Policy Relocation for the homeowner is voluntary (reference 49 CFR 24.101). In cases where either voluntary or involuntary acquisition is anticipated DED will be contacted prior to any action. The program will pay up to $500 for out of pocket expense, if it is deemed necessary through the Risk Assessment, that temporary relocation is advisable during the rehabilitation process to ensure the health and safety of the residents. If temporary relocation should be deemed necessary through the Risk Assessment, the program will pay up to $500 for out of pocket expense to ensure the health and safety of the residents. The homeowner will be notified before rehabilitation begins that the maximum amount for relocation expenses is $500. If the homeowner participates in the program, they voluntarily accept the $500 limit for relocation expenses. The owner-occupant must provide receipts and the receipts must be reviewed and approved by NED, Inc. in order for the owner-occupant to be reimbursed.

3.4 Environmental Concerns Agencies requiring compliance with historic designations, floodplains, archeological significance, etc. will be consulted prior to action or rehabilitation being implemented on the unit. A unit determined by such agencies to have compliance issues will be rehabilitated only in accordance with predetermined guidelines for such actions.

4.0 Types of Financial Assistance

4.1 Loan Program An applicant’s gross annual income and net worth of assets will be calculated based upon the Technical guide for Determining Income and Allowances for the HOME Program, Second Edition, Chapter Three – Calculating Annual Gross Income. An annual Income Worksheet based upon the applicant’s anticipated gross annual income will be created and appropriate loan level determined.

NED, Inc. will provide current income thresholds to the applicant. These thresholds are set annually by HUD. Refer to www.huduser.org/portal/datasets/il.html. Current income thresholds can be found on NEDED website at: http://opportunity.nebraska.gov/community/grants/applications/income-limits-cdbg-home-nahtf#NAHTF_Data . The loan programs are as follows: Level A: (66% - 80% of AMI for CDBG & HOME Funds – 66% - 120% for NAHTF Funds) consists of a 2% interest rate loan for 100% of rehabilitation costs. The loan term is up to 20 years (240 payments). This meets the minimum imposed affordability period. Level B: (51% - 65% of AMI) consists of a 1% interest rate loan for 100% rehabilitation costs. The loan term is up to 20 years (240 payments). This meets the minimum imposed affordability period. Level C: (50% or less AMI) consists of a 0% interest rate loan for 100% of the rehabilitation costs. The loan term is up to 20 years (240 payments). This meets the minimum imposed affordability period. Level D: (Age 62 or older and 50% or less AMI) consists of a 0% interest rate forgivable loan for 100% of the rehabilitation costs. This loan will be forgiven at the rate of 1/10th of the principal per year starting from the date the rehabilitation work was completed and the loan paperwork and amortization schedule have been generated. The loan term is 10 years (120 forgivable payments). This meets the minimum imposed affordability period.

http://opportunity.nebraska.gov/community/grants/applications/income-limits-cdbg-home-nahtf#NAHTF_Data

http://opportunity.nebraska.gov/community/grants/applications/income-limits-cdbg-home-nahtf#NAHTF_Data

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The maximum loan amount of $25,000 can be waived by the NED, Inc. Board of directors after consideration of all relevant information. Although decisions of the NED, Inc. Board of directors in such cases are based upon some subjective considerations, there must be a sound factual basis for the NED, Inc. Board of Directors to approve expenditures of more than $25,000 per dwelling unit. The loan amount is based in direct relation to the amount of rehabilitation provided to borrower(s), in an amount up to $25,000. This amount can be limited or exceeded by the NED, Inc. Board of Directors after consideration of all relevant information, including that found within Section 4.6 – Economic Feasibility for Rehabilitation. (Refer to 24CFR35, Subpart J). Although decisions of the NED, Inc. Board of Directors in such cases are based upon some subjective considerations, there must be a sound factual basis for the NED, Inc. Board of Directors to approve expenditures of more than $25,000 per dwelling unit. Such decisions shall be made only upon recommendation of the Housing Specialist who must ensure adequate documentation is in the file to show the rationale behind such decision. The affordability period will be ensured by a Deed of Trust, in the amount equal to the loan amount and will be placed on the property at the time the homeowner (s) signs the Promissory Note. This lien, in favor of NED, Inc. will take a subordinate position to all existing liens. At the request of the borrower, future equity loans that require a release or subordination of the NED, Inc. lien will require the balance to be paid off unless the NED, Inc. Board of Directors received a written explanation of need and issues a waiver of this clause. All subordination requests will follow NED, Inc.’s subordination policy (attached as Appendix B). The homeowner is required to pay all closing and filing costs associated with the refinance and subordination. The NED, Inc. Board of directors will determine whether a request for loan subordination is approved or denied. The property must be the borrower(s) primary residence throughout the duration of the loan term. In the event the borrower(s) or his/her heirs sell or transfer said property, the net sale proceeds, less the owner’s equity established at the time of application, and less all other superior loans and liens on the property will be applied to satisfy the unpaid balance of the loan. If the property becomes non-owner occupied, is vacant for a period or more than 90 days, or is converted to rental property, the loan will be in default. With the loan being in default whole of said principal sum remaining unpaid shall immediately become due and payable. The Housing Specialist may re-inspect the property, at any time throughout the duration of the loan term, to ensure that the property is the borrower(s) primary residence. Property owners will be given proper 24 hour notification prior to inspection. 4.2 Loan Payments Loan recipients who are to make payments to NED, Inc. are required to use the Automated Clearing House (ACH) method for monthly loan installments. Recipients are required to fill out and submit the ACH form to NED, Inc., thus authorizing this payment method. Payments will start on the 1st of the month, as indicated in the loan closing documents. Loan repayment shall become due and payable up to the amount of net proceeds, if any, in the event borrower or his or her heirs shall sell, rent or otherwise convey the said property, or should the borrower(s) not occupy the said property as their primary residence according to the terms of Section 4.1 – Loan Program. Recapture provisions are utilized, therefore the amount recaptured cannot exceed the net proceeds. Net proceeds are the sales price minus superior loan repayment (other than CDBG, HOME or NAHTF funds) and any closing costs. 4.3 Late Payments: If the principal of the Note is not paid during the calendar month which includes the date due, the loan recipient shall pay a $10.00 late fee per calendar month. If a loan payment is late on three occasions, the loan will be in default. 4.4 Leveraged Income Sources Additional funding may be available for applicants through other sources that provide weatherization and housing rehabilitation programs, such as USDA Rural Housing Programs: Direct Loan Program (Section 502), Home Repair Loan and Grant Program (Section 504), Nebraska Energy Office Low Interest Loan, Northeast Nebraska Community Action Partnership Weatherization Program, Central Nebraska Community Services Programs, and Making Homes Accessible.

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4.5 Hardship Review In the case of unforeseen hardship or incapacitation, the borrower(s) may request NED, Inc. to waive repayment or establish a repayment schedule for the amount owed. Loan recipients may request a review of their annual gross income and repayment ability. The Housing Specialist, on a case-by-case basis, may recommend to the NED, Inc. Board of Directors an adjustment of the terms of a rehabilitation loan, such as forgiving accrued interest or adjusting the terms of the loan and/or interest rate until such time as the crisis as passed and the recipient is able to commence their regularly scheduled payment. It is the sole responsibility of the loan recipient to ask for such review of their income and to provide documentation of the hardship. 4.6 Economic Feasibility for Rehabilitation If it is determined that the cost of rehabilitation of a unit is so great that the expenditure of program funds upon it is not justified, the project is deemed not economically feasible. The determination shall be made by the NED, Inc. Board of Directors after reviewing the opinion of the Housing Specialist. A property is generally not economically feasible for rehabilitation if any one of the following criteria applies (criteria is intended as a guide and not as absolute determinants): 1. The estimated cost of rehabilitation exceeds $25,000 in HOME CDBG or NAHTF Funds.

2. The estimated cost of rehabilitation exceeds $25 per square foot in HOME CDBG or NAHTF

Funds of floor space (considering livable floor space of the entire unit).

If the property exceeds any of the above listed criteria, the NED, Inc. Board of Directors shall review the application. The NED, Inc. Board of Directors will render one of the following decisions;

1. The project is deemed not economically feasible and ineligible for funding. If the NED, Inc. Board of Directors render the decision of not economically feasible, the applicant may request reconsideration at which time he/she may present evidence in favor of the project.

2. The project may be approved with a funding limitation of energy efficiency and/or health or safety factors. Funding limitation and unit would still meet Housing Quality Standards (HQS)/NEDED minimum rehabilitation standards.

3. The project may be delayed for further study and possible consideration.

4. If the project is deemed not economically feasible because it is inhabitable, the NED, Inc. Board of

Directors will consider providing alternative assistance to the homeowner, such as replacement housing of an existing unit in the community or for new construction at the existing unit location. An amendment approved by NEDED would be needed to change the sources and uses of grant funding. All inspections and procedures for the down payment assistance activity would apply. Newly constructed homes, if applicable, must meet or exceed the 2009 (or most current) International Energy Conservation Code. Building specifications must be approved by the Nebraska Energy Office.

4.7 Per Unit Rehabilitation Limitations

1. The estimated cost of rehabilitation will not exceed the maximum per unit NAHP subsidy as found on the NEDED website: http://www.neded.org/community/community-info/documentslibrary-a-forms/trust-fund and http://www.neded.org/community/grants/documentslibrary-a-forms/home http://opportunity.gov/community/grants/applications/income-limits-cdbg-home-nahtf#NAHTF_Data



http://opportunity.gov/community/grants/applications/income-limits-cdbg-home-nahtf#NAHTF_Data

http://opportunity.gov/community/grants/applications/income-limits-cdbg-home-nahtf#NAHTF_Data

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2. The after-rehabilitation value will not exceed 95% of the median purchase price for the area. Refer to: http://www.neded.org/community/community-info/documentslibrary-a-forms/trust-fund and http://www.neded.org/community/grants/documentslibrary-a-forms/home http://opportunity.nebraska.gov/community/grants/applications/income-limits-cdbg-home- nahtf#NAHTF_Data .

4.8. Foreclosure Lender shall give the notice in writing to Borrower(s) following Borrower’s breach of any covenant or agreement in the Note and the Deed of Trust of which it secures. The notice shall specify (a) the default, (b) the action required to cure the default, (c) a date not less than thirty (30) days from the date the notice is given to Borrower(s) by which the default must be cured and (d) failure to cure the default on or before the date specified in the notice may result in acceleration of the sum secured, the Deed of Trust and resale of the property. Upon acceleration of the sum secured and resale of the property, NED, Inc. shall apply the proceeds of the sale in the following order: (a) to all expenses of the sale including, but not limited to, NED, Inc. fees as permitted by Nebraska law and reasonable attorney fees; (b) to all sums secured by this security agreement; and (c) any excess to be recaptured by NED, Inc. 4.9 Bankruptcy In the event Borrower becomes a bankruptcy debtor, or voluntarily offers to creditors terms of composition, or in the event a receiver is appointed to liquidate and wind up the affairs of Borrower, Lender may declare due and immediately payable all unpaid loan installments and shall have a claim therefore which shall be considered liquidated damages and shall constitute a debt provable in bankruptcy or receivership.


5.1 Application Process In order to obtain an application, the applicant must call or visit the NED, Inc. office. The application will consist of sections regarding household size and composition, income, legal description of the property, and net worth. Only complete, original, and signed applications containing all information and required documentation that are received in the NED, Inc. office at 111 South 1st Street, Norfolk, NE 68701 will be processed. Electronic copies received via e-mail or fax will not be processed until the original application is received via postal mail or delivered in person to NED, Inc.’s office. During the application review, NENEDD staff will recommend and refer those applicants who qualify for other programs, to agencies such as Northeast Nebraska Community Action Partnership, Central Nebraska Community Services and USDA Rural Development. Applications are accepted year round on a first-ready, first-serve basis. Applications from a community that has current program income will receive priority over an applicant from a community that does not have any program income, because it’s required to utilize the local program if applicable as match to this regional program. If funding for a program has been depleted, a pre-application will be provided to the potential applicant and once the pre-application has been received in the NED, Inc. office, the applicant will be placed on the waiting list until adequate funding is available. When adequate funding is available for an applicant on the waiting list, an application will be mailed to the client. 5.2 Return Beneficiaries Owner-occupants are eligible for additional assistance; however, priority will be given to applicants that have not received prior funding. The request for additional funding will be evaluated by the housing specialist on a case-by-case basis. Owner-occupants, who satisfy current program requirements and move in to another eligible unit in the a community within the service area, will be considered eligible for the program on a case-by-case basis. 5.3 Preliminary Inspection



http://opportunity.nebraska.gov/community/grants/applications/income-limits-cdbg-home-%20%20%20%20%20%20%20%20%20nahtf#NAHTF_Data

http://opportunity.nebraska.gov/community/grants/applications/income-limits-cdbg-home-%20%20%20%20%20%20%20%20%20nahtf#NAHTF_Data

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Once income eligibility has been determined, the applicant will be contacted by the Housing Specialist to arrange a time to conduct the preliminary inspection. At the time of the preliminary inspection, the Housing Specialist will obtain any additional information needed to complete the application process. The Housing Specialist performs the preliminary inspection to provide more specific information for the Work Write-Up form. The Work Write-Up form is a detailed listing of all improvements to be made to the unit. It enumerates all materials, labor needed, and the estimated cost of materials/labor for the project. The estimated project costs along with the value of the property and existing mortgage on the property determines the economic feasibility of the rehabilitation project. These factors provide the NED, Inc. Board of Directors a good indication of whether the house is economically feasible for rehabilitation. 5.4 Procedure for Approval or Denial Completed applications will be presented to the NED, Inc. Board of Directors in the order in which they are received. Applications will not be presented to the NED, Inc. Board of directors until the applicant has signed the Housing Rehabilitation Guidelines Acknowledgment form and it has been returned to the Housing Specialist. Complete applications will be presented to the NED, Inc. Board of Directors at its next regular meeting, which is normally held the last Wednesday of each month. Applications are presented to the NED, Inc. Board of Directors by applicant number. and in rounds. The Housing Specialist reviews and recommends each application for approval/denial to the NED, Inc. Board of Directors. Approved applicants are notified in writing. Denied applicants are notified in writing with an explanation for reason of denial.

6.0 LOAN CLOSING

6.1 Pre-Construction Loan Documents Upon approval from the NED, Inc. Board of Directors to fund a project, the Housing Loan Specialist prepares the pre-construction loan documents. The following documents are executed by the borrower(s) to secure the affordability period. A. Rehabilitation Loan Agreement B. Memorandum of Understanding C. Notice of Right of Rescission D. Acknowledgment E. Deed of Trust F. Promissory Note G. Loss Payee Request H. ACH Enrollment form (if loan is to be paid back) I. Primary Residence Certification Upon signing of the above-listed documents, the Deed of Trust is filed at the Register of Deeds Office in the county in which the unit is located. 6.2 Post-Construction Loan Documents Upon completion of construction, the Housing Loan Specialist determines the final dollar amount spent. Loan closing documents are prepared and the borrower(s) executes the following documents: A. Regulation Z Loan Disclosure B. Promissory Note C. Amortization Schedule D. ACH Enrollment form (updated information if loan is to be paid back) E. Promotional Use Form (Beneficiary is giving a voluntary release and authorization for publication of photos that are taken at the time of the initial inspection of the property and after the project has been completed. The filed Deed of Trust, from the pre-construction loan documents, establishes a lien against the unit, which is maintained until the loan is paid in full or the unit is sold or conveyed in any manner to

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another party/entity. If the loan is paid off, or the unit is sold or conveyed to another party/entity, a Deed of Reconveyance will be filed at the Register of Deeds Office in the county in which the unit is located, thus removing the lien established by the filed Deed of Trust. 6.3 Close Out NED, Inc. shall maintain and keep all applications as well as all other required documents, records and other evidence in conformance with NAHP regulations.

7.0 CONSTRUCTION PROCESS

Upon decision by the NED, Inc. Board of Directors to fund rehabilitation projects the following steps will be taken: 1. NED, Inc. enters into a loan agreement with the applicant. No action is taken by NENEDD staff until the Right of Rescission period (not less than 3 business days) has expired. After that time, NENEDD staff will file all necessary liens, etc. (See Section 6.1 Pre-Construction Loan Documents). 2. The Housing Specialist requests a lead inspection/risk assessment be conducted on the property. 3. After the preliminary inspection, the Housing Specialist prepares a Work Write-up of improvements along with a cost estimate. The Housing Specialist reviews the lead risk assessment report and revises the initial work write-up to address any lead hazard items listed in the lead report. 4. The Revised work write-up is sent to the applicant for signature along with bid sheets and work specifications. Applicant signs the Work Write-up form indicating that he/she understands the work NED, Inc. may fund and cost limitations. 5. Applicant obtains a minimum of two official bids of contracted work to be performed. At the request of the applicant, the Housing Specialist may assist the applicant in obtaining these bids. All work must be performed according to specifications prepared by the Housing Specialist. Contractors are required to provide proof of workman’s compensation insurance (if applicable) and general liability insurance in the amount of $500,000 in addition to furnishing the Housing Specialist with two verifiable references from prior rehabilitation/remodeling jobs that have been satisfactorily completed. The building contractor is required to provide proof of current lead certification if applicable to the rehabilitation project. The contractor is also required to provide proof of contractor registration with the Nebraska Department of Labor and System for Award management (SAM). 6. Homeowner selects a contractor from bids received. The Housing Specialist approves all bids before any work commences. NED, Inc. will only fund the dollar amount of the accepted/approved bid. All charges above and beyond the accepted/approved bid can only be funded if an approved Change Order form (provided in contract) is executed and adequate funding is available. The Change Order form must be signed by the homeowner, the contractor and the Housing Specialist. If a change Order is not executed and/or funding is not available, the additional charges are the responsibility of the homeowner. (See Number 11 below for explanation of Change Orders). 5. NED, Inc. enters into a loan agreement with the applicant. No action is taken by NENEDD staff until the Right of Rescission period (not less than 3 business days) has expired. After that time, NENEDD staff will file all necessary liens, etc. 7. A pre-construction conference is held with the applicant and selected contractor(s), at which time the applicant and contractor enter into a contract agreement. The original contract is filed with the Housing Specialist. Only contracts approved by NED, Inc.’s attorney and prepared by NENEDD staff will be accepted. 8. The Housing Specialist issues the Notice to Proceed to the contractor(s).

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9. The contractor(s) perform work and documented inspections are performed throughout the project by the Housing Specialist. As work progresses, the Housing Specialist may perform frequently unscheduled inspections. 10. Contractors are paid on a bi-monthly basis by NED, Inc. unless otherwise notified. To receive payment, contractors are required to submit a Payment Voucher form (provided in the contract) and an original invoice to the homeowner who must sign the Payment Voucher. The Payment Voucher is then filed with the Housing Specialist. Upon approval by the Housing Specialist, NED, Inc. will issue a check payable to the contractor and mail it directly to the contractor. No payment will be made for materials that are stored on site. The Housing Specialist can authorize payment to the contractor, without prior approval of the homeowner, if an inspection of the work is completed and it is determined by the Housing Specialist that the work meets project specifications and NEDED Minimum Rehabilitation Standards. It is expressly understood that NED, Inc. may from time to time activate its line of credit in order to expedite payment to contractors in a timely manner. It is also understood the interest accrued from the time payment is made to the contractors and the date NED, Inc. receives reimbursement from the State of Nebraska will be considered a general administration expense of the project and will not be charged to the homeowner. 11. Change Order: If necessary, a Change Order form is completed if changes in the scope of work are agreed upon subsequent to signing of the contract. The change order will explain the requested change and the increase/decrease in the overall contract amount. These written change orders require concurrence of the NED, Inc. Housing Specialist, the homeowner, and the contractor. 12. The Housing Specialist will perform a final inspection to ensure that all repairs have been completed according to the contract specifications. Upon completion of this final inspection, the Housing Specialist and the homeowner(s) will sign the Certificate of Final Inspection/Acceptance of Work. If the Housing Specialist determines the work has not met contract specifications or NEDED Minimum Rehabilitation Standards, the contractor is not approved for final payment. The Housing Specialist conducts a meeting with the homeowner(s) and contractor at which time a list of necessary corrections/modifications is discussed. The Housing Specialist allows a specific amount of time for the contractor to make the corrections/modifications. If the corrections/modifications are not made by the contractor within the timeframe agreed upon, the Housing Specialist will hold payment in the dollar amount of the items that do not meet NEDED Minimum Rehabilitation Standards. This dollar amount will be made available to the homeowner to pay for another contractor or for a Self-Help contract to make the corrections/modifications. 13. Final pay request if filed. The contractor must sign a Lien Waiver (provided in the contract) after final payment has been received. 14. Final payment is made to the contractor. 15. The contractor is required to warranty all workmanship for a period of one (1) year from the date of work completion. The contractor will forward all material warranties to the homeowner upon completion of work. Once the Certificate of Final Inspection/Acceptance of Work has been signed by the homeowner(s) and Housing Specialist, all discrepancies or disputes in regard to completed work/warranties shall be resolved between the contractor and homeowner(s).

8.0 GRIEVANCE PROCEDURES In the event an applicant feels he/she has been unfairly treated or discriminated against during the process of selection of projects to be funded, or during any other process of the housing rehabilitation program, he/she may appeal the Housing Specialist’s decision to the NED, Inc. Board of Directors for their consideration. The written appeal must be received by the chairperson of the NED, Inc. Board of Directors within 14 calendar days of the Housing Specialist’s decision. The NED, Inc. Board of Directors will then act to support or overturn the Housing Specialist’s action at the next regularly

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scheduled board meeting after receipt of the written appeal. A written response will be given by the NED, Inc. Board of Directors with 30 days of the decision. The NED, Inc. Board of Directors has final authority in the consideration of the appeal. NEDED will be notified of any grievances that the grantee receives which are not resolved by the grantee’s standard grievance procedures. In some cases it may be necessary to use a neutral third party as mediator between the homeowner, the grantee, the grant administrator and the contractor. The third party mediator cannot be the grant administrator or a member of the grantees decision making council. Economic Development Districts throughout the State of Nebraska would be utilized as the third party mediator.

9.0 AMENDMENTS TO PROGRAM GUIDELINES

In an ongoing effort to improve the quality of the NED, Inc. Housing Rehabilitation Program, the NED, Inc. Board of Directors will accept suggestions from the public, program participants, contractors, program staff, or members of the NED, Inc. Board of Directors with regard to program guideline amendments. All suggestions received will be taken under consideration by the NED, Inc. Board of Directors. Upon approval of NEDED and adoption by the NED, Inc. Board of Directors, the amendments will be included in the program guidelines.

10. OFFICIAL CONTACT OFFICE

The place of contact for this program shall be at the office of NED, Inc., 111 South First Street, Norfolk, NE 68701. Any grievances, suggestions, or requests for information should be directed to this office. This in no way shall be construed to limit other interested parties from distributing information about the program or receiving suggestions for amendments to the program. All grievances shall be directed to NED, Inc. in writing.

11.0 MARKETING NED, Inc.’s affirmative marketing procedures include but are not limited to marketing to local and regional residents and households identified to be potentially eligible but least likely to apply. Marketing will include advertisements in daily and weekly newspapers, notices posted on NENEDD’s website and news briefs which are e-mailed to banks, community members, associate members, and public members in the Central and Northeast Investment Zones. NED, Inc. will also display posters and brochures in areas where interested persons visit on a daily basis.

12.0 REPORTING REQUIREMENTS NENEDD staff will prepare and submit (if required) to the Nebraska Department of Economic Development a semi-annual status report detailing activities undertaken, applications received and in progress, applications approved, closings held and funds obligated and expended.

13.0 LIMITED ENGLISH PROFICIENCY (LEP) It is the policy of the grantee to take reasonable steps to provide meaningful access to tis programs and activities for persons with Limited English Proficiency (LEP) in accord with Executive Order 13166 titled, “Improving Access to Services by Persons with Limited English Proficiency”. The grantee’s policy is to ensure that staff will communicate effectively with LEP individuals, and LEP individuals will have access to important programs and information. The grantee is committed to complying with federal and state requirements in providing free meaningful access to this program and it activities for LEP persons. It is the policy of the grantee to take reasonable steps to provide meaningful access to its programs and activities for persons with Limited English Proficiency (LEP). In accord with and as required by Title VI of the Civil Rights Act of 1964, Executive Order 13166, and HUD's final “Guidance to Federal Financial Assistance Recipients Regarding Title VI Prohibition Against National Origin Discrimination Affecting Limited English Proficient (LEP) Persons,” published in the Federal Register on January 22, 2007, and which became effective on March 7, 2007 (“HUD LEP Guidance”). Supporting documentation will include all of the following (1) information identifying the LEP representative for the Grantee, including the representative’s name and contact information; (2) a Four Factor Analysis that is consistent with the HUD LEP Guidance; and (3) a description of the actions the

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Grantee will take during the course of the grant to fulfill the requirements to provide meaningful access to LEP persons. If deemed necessary as a result of the Four Factor analysis, Grantee will prepare and submit to the Department, a Language Access Plan (“LAP”) that includes all elements of an effective LAP as defined by HUD. The Grantee will also keep records of requests for LEP services, and all LEP services provided by Grantee during the course of the grant. Grantee must submit documentation to the Department demonstrating LEP services provided.

14.0 PROGRAM INCOME REUSE PLAN See Appendix A

HOUSING REHABILITATION GUIDELINES APPROVAL These housing guidelines are hereby approved by action of the Board of Directors of Northeast Economic Development, Inc. (NED, Inc.) this ______ day of________, 2017. ______________________________ ___________________ President, NED Inc. Date

These housing guidelines are hereby approved by the Nebraska Department of Economic Development (NEDED) this ______day of__________________, 2017.

___________________ ___________________ NEDED Representative Date

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A. Maximum combined 80% Loan to Value policy on all “Cash Out” refinances or home equity loans

where Northeast Economic Development, Inc. (NED, Inc.) remains in current lien position.

B. Maximum combined 100% Loan to Value on “No Cash Out” refinances where NED, Inc. remains

in current lien position.

** All subordination documents must be provided by the lender requesting subordination.**

Appendix B

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RESOLUTION NO. _2017-329-1______________ A RESOLUTION OF THE NORTHEAST ECONOMIC DEVELOPMENT, INC. (NED, INC.) BOARD OF DIRECTORS ACCEPTING AND ADOPTING THE NED, INC. REGIONAL OWNER/OCCUPIED HOUSING REHABILITATION GUIDELINES, WHICH ARE ATTACHED HERETO. BE IT RESOLVED BY THE NED, INC. BOARD OF DIRECTORS THAT THE HOUSING REHABILITATION REUSE FUNDS WILL ADHERE TO THE CURRENT NED, INC. REGIONAL HOUSING REHABILITATION GUIDELINES AS APPROVED BY THE NEBRASKA DEPARTMENT OF ECONOMIC DEVELOPMENT. IT IS EXPRESSLY UNDERSTOOD THAT PROGRAM INCOME AND RECAPTURED FUNDS WILL CONTINUE TO BE MADE TO NED, INC AND REUSED WITHIN NED, INC.’S SERIVCE AREAS AND IS HEREBY APPROVED AND ADOPTED. PASSED AND ADOPTED THIS 29th DAY OF MARCH, 2017. _______________________________________ PRESIDENT, NED, INC. ATTEST ______________________________________ Thomas Higginbotham, Jr., Executive Director

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NED, Inc Board Agenda __________________________________________________________________ Object: To hold a public hearing concerning an application to the Nebraska Department of Economic Development for a Nebraska Affordable Housing Program Grant. Contact Person: Tina M. Engelbart, Deputy Director For: Action __________________________________________________________________ Background: Northeast Economic Development, Inc. is an eligible applicant as regional non-profit 501 (c) (3) housing organization to apply for Nebraska Affordable Housing Program funds. Explanation: NED, Inc. is requesting $485,300 of Nebraska Affordable Housing Program (NAHP) funds for rehabilitation/conversion of 6 multi-family upper story residential units in the former Delay Bank building located in Norfolk, Nebraska. Of the $485,300 NAHP funds, $426,300 will be utilized for 6 multi-family upper story residential unit of which 3 units will be available to low to moderate income residents; $35,000 for housing management activities; $9,000 for housing management paint testing, risk assessments and clearance testing; and $15,000 for general administration activities. There will be no displacements of individuals as a result of any activities of this project. The property owners will be providing approximately $507,169 of private investment for the multi-family residential units. Estimated total project cost specific to the residential units is $992,469. An additional, $1.1 million of private investment is being provided toward commercial conversion on the main level and façade reconstruction. Project activities that pertain to the entire building (residential and commercial) include interior demolition, new electrical service, HVAC replacement, roof insulation, emergency lighting, new façade, new energy efficient windows and doors, a fire sprinkler system and updates to meet ADA and UFAS codes. Total square footage of the structure is roughly 16,000 square feet above grade.

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The building actually consists of two separate buildings under separate ownership. AEC/CEB Joint Venture (the “Developer”) is a joint venture of AEC, LLC and CEB, LLC, being the owners of the project described as 401 and 403 West Norfolk Avenue;

Lot 1, Burrows and Egberts Addition to the City of Norfolk, Madison County, Nebraska, less that part of Lot 1 described as follows: Commencing at the Northwest corner of Lot 1 of Burrows and Egberts Addition to the City of Norfolk, Madison County, Nebraska; thence East on lot line 26.12 feet to the point of beginning; thence continuing East, on lot line, 21.99 feet to a point on the East line of the NW1/4 of the NE1/4 of Section 27, Township 24 North, Range 1West of the 6th P.M., Madison County, Nebraska; thence South on the East line of said NW1/4 of the NE1/4 176.0 feet to a point on the South line of said Lot 1; thence West on the South line of said Lot 1 a distance of 22.09 feet to a point 24.68 feet East of the Southwest corner of said Lot 1; thence North 176.0 feet to the point of beginning, AND Lot 2, Burrows and Egberts Addition to the City of Norfolk, Madison County, Nebraska, respectively.

Motion: To open the public hearing concerning an application to the Nebraska Department of Economic Development for a Nebraska Affordable Housing Program Grant.



Action Item VI. K

NOTICE OF PUBLIC HEARING ON APPLICATION FOR NEBRASKA AFFORDABLE HOUSING PROGRAM FUNDS

NOTICE IS HEREBY GIVEN that 7:00 p.m. on Wednesday, March 29, 2017 in the Norfolk City Offices – Training Room, 309 North 5th Street, Norfolk, NE, Northeast Economic Development, Inc. (NED, Inc.) will hold a public hearing concerning an application to the Department of Economic Development for a Nebraska Affordable Housing Program Grant. This grant is available for local affordable housing activities. NED, Inc. is requesting $485,300 of Nebraska Affordable Housing Program (NAHP) funds for rehabilitation/conversion of 6 multi-family upper story residential units in the former Delay Bank building located in Norfolk, Nebraska. Of the $485,300 NAHP funds, $426,300 will be utilized for 6 multi-family upper story residential unit of which 3 units will be available to low to moderate income residents; $35,000 for housing management activities; $9,000 for housing management paint testing, risk assessments and clearance testing; and $15,000 for general administration activities. There will be no displacements of individuals as a result of any activities of this project. The property owners will be providing approximately $507,169 of private investment for the multi-family residential units. Estimated total project cost specific to the residential units is $992,469. An additional, $1.1 million of private investment is being provided toward commercial conversion on the main level and façade reconstruction. Project activities that pertain to the entire building (residential and commercial) include interior demolition, new electrical service, HVAC replacement, roof insulation, emergency lighting, new façade, new energy efficient windows and doors, a fire sprinkler system and updates to meet ADA and UFAS codes. Total square footage of the structure is roughly 16,000 square feet above grade. The building actually consists of two separate buildings under separate ownership. AEC/CEB Joint Venture (the “Developer”) is a joint venture of AEC, LLC and CEB, LLC, being the owners of the project described as 401 and 403 West Norfolk Avenue;

Lot 1, Burrows and Egberts Addition to the City of Norfolk, Madison County, Nebraska, less that part of Lot 1 described as follows: Commencing at the Northwest corner of Lot 1 of Burrows and Egberts Addition to the City of Norfolk, Madison County, Nebraska; thence East on lot line 26.12 feet to the point of beginning; thence continuing East, on lot line, 21.99 feet to a point on the East line of the NW1/4 of the NE1/4 of Section 27, Township 24 North, Range 1West of the 6th P.M., Madison County, Nebraska; thence South on the East line of said NW1/4 of the NE1/4 176.0 feet to a point on the South line of said Lot 1; thence West on the South line of said Lot 1 a distance of 22.09 feet to a point 24.68 feet East of the Southwest corner of said Lot 1; thence North 176.0 feet to the point of beginning, AND Lot 2, Burrows and Egberts Addition to the City of Norfolk, Madison County, Nebraska, respectively.

The grant application will be available for public inspection at the NED, Inc. offices located at 111 South 1st Street, Norfolk, NE. All interested parties are invited to attend this public hearing at which time you will have an opportunity to be heard regarding the grant application. Written testimony will also be accepted at the public hearing scheduled for 7:00 p.m., March 29, 2017, in the Norfolk City Offices – Training Room, 309 North 5th Street, Norfolk, NE. Written comments can be addressed to Tina M. Engelbart, Deputy Director at 111 South 1st Street, Norfolk, NE 68701 and will be accepted if received on or before 5:00 p.m. on Wednesday, March 29, 2017. Individuals requiring physical or sensory accommodations including interpreter service, Braille, large print, or recorded materials, please contact Danielle Lammers, Administrative Assistant at 111 South 1st Street, Norfolk, NE, 402-379-1150 no later than March 24, 2017.

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NED, Inc Board Agenda __________________________________________________________________ Object: To pass a resolution authorizing the submission of an application to the Nebraska Department of Economic Development for a Nebraska Affordable Housing Program Grant. Contact Person: Tina M. Engelbart, Deputy Director For: Action __________________________________________________________________ Background: Northeast Economic Development, Inc. is an eligible applicant as regional non-profit 501 (c) (3) housing organization to apply for Nebraska Affordable Housing Program funds. Explanation: AUTHORIZATION TO SUBMIT APPLICATION AND ENTER INTO AGREEMENT FOR NEBRASKA AFFORDABLE HOUSING PROGRAM

RESOLUTION NO 2017-1 A resolution of the Board of Directors of Northeast Economic Development, Inc. (NED, Inc.) authorizing the submission of an application for 2017 Nebraska Affordable Housing Program Funds, certifying that said application meets the community’s housing and community development needs and the requirements of the Nebraska Affordable Housing Program, and authorizing all actions necessary to implement and complete the activities outlined in said application. WHEREAS, the Board of Directors of NED, Inc. is desirous of undertaking affordable housing development activities; and WHEREAS, the State of Nebraska is administering the Nebraska Affordable Housing Program; and WHEREAS, the Nebraska Affordable Housing Program requires that funds benefit low-income households; and WHEREAS, the activity in the application addresses the proposed project area’s low-income population housing needs; and WHEREAS, a recipient of Nebraska Affordable Housing Program is required to

Action Item VI. L

comply with the program guidelines and State regulations. NOW, THEREFORE BE IT RESOLVED THAT the Board of Directors of NED, Inc. authorize application to be made to the State of Nebraska, Department of Economic Development for 2017 Nebraska Affordable Housing Program, and authorize Nancy Braden, President to sign application and contract or grant documents for receipt and use of these funds, and authorize the Nancy Braden, President to take all actions necessary to implement and complete the activities submitted in said application(s); and THAT, the Board of Directors of NED, Inc. will comply with all State regulations and Nebraska Affordable Housing Programs policies.

Passed and adopted by the Board of Directors of NED, Inc. this 29th day of March, 2017.

Motion: To pass a resolution authorizing the submission of an application to the Nebraska Department of Economic Development for a Nebraska Affordable Housing Program Grant.

