LOUP CITY, Neb. -- Officials in Loup City are hoping a new housing subdivision will be the first step toward attracting new families and workers to town.
The people behind the project aren't developers or contractors, but are the city government and Sherman County Economic Development Board.
The city owns the land and will donate the lots - each valued at $10,000 - to those who qualify to build on the property and show a good-faith effort to do so.
The development is on the northwest side of town, about one block south of Loup City Public Schools and adjacent to Peterson Park.
Economic Development Director Michael Eurek said there is pent-up demand for housing in town.
"Several years ago, the city and the economic development organization did a housing study. They took a look at all the houses in town and what's been happening recently, and there really is a need for more of these newer three-bedroom, two-bathroom houses in the community," Eurek said.
"It's deterring growth, and it's very difficult to get people into town if there's a job available when you don't have adequate housing. It's always a struggle between jobs and housing, and as much as we'd like to do both, this was one of the avenues they decided to try."
In September, the city won a $390,000 grant through the Nebraska Affordable Housing Trust Fund to cover the infrastructure costs. Miller and Associates Engineers of Kearney was hired early in 2010 to install electricity, sewer and water on each lot.
The city also has begun a road in the subdivision and provided a fire hydrant. Mayor Alicia Toczek said covenants on the development will encourage green building.
Eurek said so far the city has developed infrastructure and utilities for only the first six lots because of a moratorium on new sewer lines from the Nebraska Department of Environmental Quality.
He said DEQ approved proceeding with the first six lots because they would not contribute a significant amount of waste. The city is waiting for DEQ approval before proceeding with the remaining six lots.
Three of the homes will be market-rate housing, and three are for workforce housing, the state's term for low- to moderate-income housing.
Eurek said assistance is available for those who qualify and want to build on the workforce lots, including $10,000 in down payment assistance and closing cost assistance through the USDA.
"It's just trying to encourage people who may be thinking about building a house or are on the edge, to kind of give them that final push to come in and build. We've had a lot of interest on the workforce housing," he said.
The Economic Development office started accepting applications to build on the lots Oct. 17. "I think we should be able to fill these. The workforce, we've definitely got a lot of interest in that. The market rate may take a little longer," Eurek said.
"With anything like this it does take time to put everything together, but it's our hope we can see some houses going up next spring," Toczek said.
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