Omaha amends urban core redevelopment plan to speed streetcar, create $40 million affordable-housing fund

The Omaha City Council on Sept. 16 approved a resolution to amend the Urban Core Housing and Mobility Redevelopment Plan, enabling the city to use up to $490 million in tax-increment financing revenues to construct a modern streetcar and support affordable housing and protected bike lanes in the urban core. The council voted 6-0 to approve agenda item 12; consideration of the redevelopment contract with Front Porch Investments (agenda item 13) was discussed and scheduled for a later council vote.

City Law Department attorney Jennifer Taylor told the council the amendment replaces several sections of the 2022 plan to (1) identify and allocate funds to build the modern streetcar, (2) designate affordable housing development as a redevelopment project, and (3) identify protected bike lanes as an eligible use of TIF revenues. Taylor said the amendment raises the previously authorized TIF use from about $356 million to $490 million and that any housing financed under the amendment must be built inside the redevelopment plan area and comply with the state Community Development Law. She said the $40 million affordable-housing portion discussed at the meeting would be funded by a private placement of TIF revenue bonds; the bond documents will return to council for approval in October or November and the city will have no obligation to pay those bonds except from available TIF revenues in the district.

Steve Jensen, deputy chief of staff for economic development in Mayor Ewing’s office, said the streetcar is at 100% design and that the council previously authorized $440 million for construction. Jensen said roughly $1.4 billion in development has already occurred in the corridor and the city projects about $4 billion of development over 15 years, which could support up to $550 million in TIF-backed bonds. The amendment authorizes spending up to $490 million on the streetcar, affordable housing, bikeways and other mobility improvements.

Jody Holston, executive director of Front Porch Investments, described Front Porch as a local nonprofit financier of affordable housing. Holston said Front Porch has deployed about $35.5 million into 28 projects producing more than 1,700 affordable units (and 2,400 total homes) and that roughly 85% of projects the organization has financed include deeply affordable units serving households at 30–60% of area median income (AMI). She said Front Porch would administer the proposed urban-core fund, pass 100% of loan proceeds to eligible projects, record land-use covenants to preserve affordability and provide quarterly public progress reports.

Developers, nonprofit housing organizations and emerging-developer programs urged approval. Speakers supporting the amendment included representatives of Foundations Development, Omaha Economic Development Corporation, Archicon Development, the Omaha Municipal Land Bank, Habitat for Humanity, Holy Name Housing Corporation, Spark (a developer academy), Front Porch borrowers and recent graduates of Spark’s programs. Several proponents said gap financing is necessary now to preserve affordability in parts of the urban core where rising land and construction costs could otherwise squeeze out affordable housing.

Opponents and commenters raised concerns. Activist Clarice Dombek of the Redress Movement urged tighter targeting of deep affordability, noting the amendment’s eligibility language allows projects up to 120% AMI and urging that most units be reserved for households at 50% AMI or below. Public commenter Luis Jimenez opposed moving the contract forward before bond sale details are finalized and expressed concern about concentrating affordable housing in the core. Larry Storer and other opponents raised transparency questions. Cheryl Weston said she supported the ordinance only because Front Porch and partners committed to actively include emerging local developers; several speakers described programs to help new developers access capital and technical assistance.

Council members asked detailed questions about risk to taxpayers, the fund’s geographic limits, AMI targets, and oversight. Taylor and Front Porch representatives said the private-placement bond would be subordinate to the streetcar financing and would be repaid only from TIF revenues in the redevelopment area; Taylor said there would be no obligation for the city to repay the $40 million from general-fund revenues. Council members also discussed the redevelopment plan boundaries (the amendment confines funded projects to the redevelopment plan area: an unnamed north boundary referenced in the public explanation, Woolworth on the south, 50th Street on the west and the river on the east) and the requirement that projects comply with the Community Development Law and eligible-expense rules.

Taylor and Holston described program details Front Porch will use when awarding funds: open, ongoing application rounds; underwriting by external underwriters and oversight committees that include city representation; land-use restrictions (minimum 20 years for multifamily projects and 10 years for single-family units, per staff explanation) recorded against properties; and quarterly public reporting. Holston said loans typically range up to 20 years and that loans sometimes begin recycling within 24–30 months depending on repayment schedules, which could allow the fund to support additional projects over time. Council members were told the $40 million could support roughly 1,900 homes depending on project mix and subsidy needs; Front Porch and staff characterized the $40 million as gap financing to accelerate projects that otherwise would wait for TIF revenues to accrue.

After debate and public testimony, the council approved the redevelopment-plan amendment (agenda item 12) by roll call vote: Melton, Roe, Festersen, Goodwin, Hugg and Council President Begley voted yes (motion passed 6–0). The redevelopment contract with Front Porch (agenda item 13) was discussed at length and held for formal council action at a later meeting when bond documents are ready for review and vote.

What's next: Taylor said bond documents and related financing papers will be returned to council in October or November; those documents must be approved by council and a buyer identified for the private placement before any funds are disbursed. Front Porch will administer awards and provide public quarterly reports if the council approves the contract and the bond transaction closes.