Downpayment program draws local applicants

McCOOK, Neb. — Of the 15 applicants for housing down payment assistance, eight are from McCook.

That was part of the update given to the McCook City Council Monday night from Andy Long, McCook Economic Development Corp. director. “So McCook is well represented,” he said.

At the public hearing Monday night, Long reviewed the fourth quarter report of the McCook Growth Fund (LB840) Economic Development program and the October Citizen Advisory Committee meeting.

The MEDC has been approved for the Down Payment Grant Match, in partnership with the Southwest Nebraska Betterment Corp. The grant creates $255,000 for up to $20,000 in down payment and closing costs assistance for at least 10 first-time homebuyers.

The Down Payment Assistance program is a 0% interest deferred loan. A maximum of 20% of the purchase price can be used for the down payment of one housing unit, including associated closing costs. Each applicant is required to provide $500 of their own money to cover a portion of the required closing fees and pre-paid escrow accounts. The houses must be purchased in the incorporated communities located in one of these counties: Perkins, Hayes, Hitchcock, Dundy, Chase and Red Willow.

The MEDC was also approved for the Innovative Housing Fund Grant Match.That grant will create a $495,000 pool of money to be used between McCook, Cambridge and Benkelman for building workforce housing.

Other updates from Long included:

- Two new jobs were created at Straight Align LLC. The MEDC Growth Fund Loan Committee approved a $50,000 loan gap for Straight Align LLC, with the loan closing the first part of October.

- Ravenswood Infrastructure Grant: The MEDC board approved using $30,000 to improve Ravenswood Road and that project has been completed, opening up 10.5 acres (or three industrial parks) of property for new businesses.

Long told the council that as part of the Nebraska Department of Transportation’s grant of $137,000 for the Ravenswood project, there is clawback provision: if the number of jobs or capital investments as required are not created within five years, the MEDC is required to pay back the grant on a pro-rated basis. The MEDC board voted to hold in reserve 1/5 of the $137,000 grant every year until the five years are completed.

After the regular meeting came to a close, after a unanimous vote, the council re-convened in closed executive session for a strategy session regarding litigation that is imminent as evidenced by communication of a claim or threat of litigation by the City of McCook against property stakeholders for real property located in McCook at 406 East 1st Street and another property at 412 East 3rd.