Wednesday, decern be r 10, 1975
t
page 9
daily nebraskan
fl Subsidies necessary for housing
construction in downtown Lincoln
Sh i f
"'- "' ..hm..-.
121; IU
Increased downtown construction and renovation
has increased the need for housing in that area,
some officials contend.
By Ann Owens
Housing development in Lincoln's center core (down
town) area will be impossible unless the state or federal
government subsidizes it, according to Selmer Solheim, a
Lincoln developer who is chairman of the Lincoln task
force for downtown housing.
Low interest rates on low income housing and partial
rental payments are two ways the federal government can
subsidize downtown development, Solheim said.
But according to Lansford Jorgenson, executive director
of the Lincoln Center Development Association (LCDA),
there is little federal money available.
"There is a great need for housing in this area especially
low to moderate income housing," Jorgenson said, "but
we've run into some big frustrations."
Taxes and land costs
The two biggest problems, according to Jorgenson, are
taxes and land costs. ,
"Downtown land costs are high," Jorgenson said, "and
as property value increases, so do taxes."
Approximately 22,000 persons work in the downtown
area and Solheim said, the core has about 2,000 living units.
A survey conducted by Jorgenson last February showed no
vacancies in the 150 apartment units in the center core"
area.
"As fast as they're put up, they're filled," he said.
Other surveys conducted by Jorgenson showed a desire
of young working persons and the elderly to live down
town, he said.
Close to services
"The downtown area is where many elderly people grew
up. It's home to them," Jorgenson said. "Besides, most ser
vices are within walking distance or are accessible through
the mini-bus service."
Jorgenson added that of 500 UNL faculty members who
returned surveys to him, 20 per cent showed an interest in
housing near UNL if the apartments offered characteristics
they desired in a living unit.
"The problem is how to get these living units built," he
said.
A study done by Jorgenson last year in which he theor
etically built an apartment complex by applying current
construction costs and interest rates approximated that a
developer would have to charge $390 per month for a one
bedroom unit to break even.
'Larger profit
To make building possible will take programs where
developers can use some floors for retail stores and office
space.
"This space returns a larger profit to the developer," Jor
genson said.
"A developer gets about one third the return on invest
ment from apartment space that he gets on retail and office
space," he added.
Solheim now is working on three downtown area hous
ing development projects.
He said he hopes to begin construction in 1976.
With 100 units in each building, they will be within
walking distance of 13th and O streets, Solheim said.
Moderate income
"These will be low to moderate income apartments
prim arily one bedroom units with a limited number of two
and three bedroom units," he said.
One building is subsidized for sure, Solheim said, and the
others also might be.
"We're going to be watching the legislature closely in the
next few weeks," he said, "and hope that one of the
senators will introduce a bill preventing Nebraska com
munities from taxing housing for elderly and low income
groups near the center core areas of communities.
Sens. Steve Fowler, Wally Barnett from Lincoln and
Jerome Warner from Waverly have expressed an interest in a
similar program, Solheim said.
'Lowers rent'
"The money saved by the developers from taxes would
lower the occupants' rent considerably," he said.
Solheim said he hopes to have all three apartment com
plexes completed by July 1978.
"This projection can only be a guess though," he said.
"It wUl work only if no one gets cold feet about it."
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