Cindy Gonzalez
LINCOLN — A pandemic-related program set up nearly three years ago to help struggling Nebraska homeowners has wrapped up — and 3,094 applicants ultimately received a share of the $50 million federal allotment.
The average amount of emergency aid per recipient was $14,834. The maximum someone could get through the Nebraska Homeowner Assistance Fund was $40,000.
“The program was essential to keeping Nebraskans in their homes after the financial impact of the pandemic,” said Robin Ambroz, chief programs officer for the Nebraska Investment Finance Authority, which managed the fund. “NIFA was honored to work with our partners to assist over 3,000 households.”
Preventing loss of house
Launched in February 2022, the program aimed to prevent Nebraskans from losing their houses over COVID-19 hardships.
The $50 million came from the U.S. Treasury Department as part of the American Rescue Plan Act of 2021.
About 8,000 people from 85 of the state’s 93 counties applied to request financial assistance, according to NIFA records.
Applicants had to meet eligibility requirements, including having a household income that was no more than their home county’s median income.
Most of the aid was directed at mortgage reinstatement (nearly $25 million) and future mortgage payments (nearly $17 million).
Smaller amounts were allocated for past due real estate taxes ($1.87 million); utilities ($1.28 million); homeowners insurance (nearly $159,000); homeowner association fees or liens ($154,138); and internet service ($54,576).
Coordinators of the fund also referred nearly 900 applicants to housing counseling services and nearly 340 applicants to Legal Aid for foreclosure prevention help.
Fund for rent and utility help
Meanwhile, a separate pandemic-related program — to help eligible Nebraska renters — still has available funds.
When the second round of Nebraska Emergency Rental Assistance (ERA II) launched in September 2023, the fund had $48 million to distribute in 91 smaller counties outside Douglas and Lancaster (those large counties had their own programs.)
To date, NIFA said, more than $20 million has been obligated, providing financial assistance to thousands of qualified, pandemic-impacted Nebraskans for past-due and future rent payments and past-due utility and internet payments.
NIFA manages the ERA II program, as well, and has asked those in need to apply now.
Earlier, NIFA officials said they hoped to get at least 75% of the $48 million spent by the end of 2024. Once 75% of the funds are obligated, program guidelines allow remaining funds to be directed toward the development of affordable housing.
Among the landlords who have participated in the program, according to coordinators, is Andy Marsh, owner of Keystone Properties, which manages about 650 properties in the Grand Island and Hastings area.
Marsh said that upon learning of the program, he drove to see one of his tenants, a single father working three jobs as his young daughter fought brain cancer. Bills were piling up for the family, and Marsh thought they could use the boost.
“These are hard-working Nebraskans going through a tough time, and without the burden of past-due rent, they’ve been able to take care of medical bills, get their cars fixed or get caught up on childcare bills,” Marsh said in a news release. “In turn, landlords like myself are getting caught up. It’s been a snowball effect for our economy.”
Early controversy
The rental program had been controversial in its earlier stages. Many advocates, renters and landlords had complained to lawmakers and state officials about the management of the first round of emergency rental aid to the 91 counties.
They said the previous contractor, Deloitte, an audit and financial services firm, had created a cumbersome online application process that kept many needy Nebraskans from accessing the aid.
Low participation was among reasons cited by then-Gov. Pete Ricketts when he refused to tap the second round of rent aid dollars that the federal government had set aside for the 91 Nebraska counties.
Gov. Jim Pillen, after he was elected, bucked Rickett’s stance and accepted what was left of the original rental fund.
Application processing times have improved since the launch last year, NIFA says, with staff training and more steady flow of applications since the initial surge.
“We appreciate the patience and diligence of applicants and landlords and look forward to continuing to provide relief and stability to qualified Nebraskans,” said Shannon Harner, NIFA executive director.
To qualify for rental assistance, applicants must have experienced financial hardship during the pandemic, have income at or below 80% of area median income; rent their primary residence in Nebraska and be a legal resident.
Renters in Douglas and Lancaster Counties are not eligible as they have their separate assistance programs.
Funds are to be distributed while available and do not need to be paid back.