Preserving Affordable Housing in Gentrifying Omaha Neighborhood

Preserving Affordable Housing in Gentrifying Omaha Neighborhood

In fall 2023, a local nonprofit in Omaha, Nebraska, finished rehabilitating two century-old, historically designated buildings into affordable apartments in a neighborhood experiencing gentrification and rising housing prices. The development consists of 75 units serving low- and moderate-income households in 2 adjoining properties: Hanscom Apartments and Georgia Row Apartments.

Park Avenue Neighborhood

Park Avenue is a small, working-class neighborhood less than 2 miles from downtown Omaha. The neighborhood has a sizable population of Hispanic immigrants, some of whom are employed at nearby meatpacking plants, as well as many first-generation citizens. Park Avenue historically has lacked significant investment, and several neighborhood buildings were vacant or in poor condition throughout the 2000s. The area has experienced redevelopment in recent years, and many vacant properties have been converted to modern multifamily residences. This uptick in reinvestment also has coincided with improved resident outcomes. Since 2008, Park Avenue's crime rate has fallen by approximately 20 percent, and the graduation rate has risen by 15 percent. The area's median income also increased during this period, although by notably less than in many other areas of the city. This reinvestment, however, has been accompanied by rising housing prices, and some Park Avenue residents, most of whom are renters, are getting priced out of the area.

An Opportunity for Affordable Housing

The nonprofit inCOMMON Community Development has supported Park Avenue residents since 2009. Christian Gray, inCOMMON's codirector, explains that the rapid increase in development in Park Avenue raised concerns "that some of our neighbors and those that were connected to our community center and some of our neighborhood endeavors were going to find housing an issue as a result of either their buildings being vacated for redevelopment or just no longer [being] able to afford the properties themselves." The organization saw entering the real estate market as the best way to proactively preserve affordable apartments in the neighborhood. In 2015, inCOMMON purchased Hanscom Apartments, a partially occupied 64-unit apartment building 3 blocks from the organization's community center. Although the market rents of these apartments were still affordable for residents with modest incomes, none of the units were subsidized or income restricted. By acquiring these apartments, inCOMMON could preserve their affordability for income-eligible residents and upgrade the aging units. The organization also purchased Georgia Row Apartments, a completely vacant former residential building directly behind Hanscom Apartments, to rehabilitate into contemporary affordable apartments. This addition allowed inCOMMON to create a 75-unit affordable housing complex with multiple bedroom types.

Rehabilitating Historic Buildings

Because of a delay in receiving highly competitive low-income housing tax credits (LIHTCs), inCOMMON did not complete the closing on the buildings for several years. Before construction began in 2022, the developer helped existing residents of Hanscom Apartments relocate. Hanscom Apartments, a Spanish Colonial Revival building built in 1921, and Georgia Row Apartments, a Queen Anne-style building built in 1890, both required extensive rehabilitation. InCOMMON gutted the interiors; installed new heating, cooling, electrical, and plumbing systems; and replaced the kitchens and bathrooms. Only a few interior walls and a portion of the hardwood floors remained. The exteriors of both buildings were largely preserved in their original state. Because of their distinctive architectural styles, both properties are listed in the National Register of Historic Places, which allowed inCOMMON to apply for federal historic tax credits for the renovations. However, Gray said that the condition of Georgia Row Apartments was so poor that restoring this building to its original state, as historic tax credit requirements demand, would have been prohibitively expensive. As a result, inCOMMON leveraged the historic tax credits only for Hanscom Apartments. Despite this setback, the developer made the front-facing exterior of Georgia Row Apartments look as close to original as possible. The apartments opened for new and returning residents approximately a year and a half after construction began. Residents started moving back into Hanscom Apartments in October 2023, and Georgia Row Apartments opened in December. Rehabilitating these properties cost $17 million, including $2 million for the initial acquisition. In addition to the federal tax credits, the project was supported by tax increment financing funds from the city and philanthropic donations.

The Residences

Hanscom Apartments offers 64 studio and one-bedroom apartments, and Georgia Row Apartments has 11 two- and three-bedroom apartments. The units are reserved for households earning between 40 and 60 percent of the area median income. The apartments have modern furnishings and extensive natural light. Shared amenities include a community room, fitness center, library, children's recreational area, and indoor bike storage. The residences are close to two grocery stores and are within walking distance of city parks. Multiple bus lines serve the apartments.

Hanscom Apartments and Georgia Row Apartments are also just a few blocks from inCOMMON's neighborhood resource center. The facility provides support services, including youth programing, adult education, job training, and résumé building. Staff also help immigrant residents learn English and prepare for citizenship. In addition, the center hosts quarterly and annual workshops that cover various topics of interest such as home purchasing, financial planning, and budgeting.

Supporting the Community

In addition to creating safe and affordable housing, inCOMMON's preservation work furthers the organization's neighborhood development goals. "If folks at the end of the day are just displaced or moved out of the neighborhood, we really can't meet our mission of transforming neighborhoods through neighbors," Gray said. In 2022, the organization launched an affiliate, inCOMMON Housing Development, which will focus solely on affordable housing. The affiliate organization recently purchased a vacant 1-acre lot in the Park Avenue neighborhood that will be the site of its next affordable housing development.