Middle Income Workforce Housing Fund (MWHF)

The Middle-Income Workforce Housing Fund supports the creation of owner‑occupied workforce housing in a Qualified Census Tract (QCT) or adjacent areas. This program follows Nebraska Department of Economic Development (DED) requirements and Spark’s Board‑approved Investment Plan. This product is ideal for emerging for-profit developers and nonprofits developing homes for middle‑income buyers.

Best For:

  • New construction of owner‑occupied homes

  • Substantial rehabilitation of owner-occupied homes

  • Emerging for-profit developers and nonprofits developing homes

Key Requirements:

  • Borrower must be an organization, not an individual

  • Project must be located in or adjacent to a Qualified Census Tract in Douglas County, Nebraska

  • Project must be owner‑occupied (no rental units)

  • Project must meet MWHF value caps

    • For new construction: Home must appraise value or construction cost of at least $125,000 but not more than $375,000.

    • For substantial rehabilitation, budget shows construction cost more than 25% of pre-rehabilitation appraised value.

    • For substantial rehabilitation after construction, appraised value of home must be at least $125,000 but not more than $300,000.

  • Project must not use prohibited funding sources such as LIHTC, HOME Funds, CDBG, ARPA, NAHTF or National Housing Trust Fund dollars.

  • Project must meet Spark Capital Investment plan

    • Developer fee cannot exceed 15% of Total Project Cost.

    • If the developer is also the General Contractor, General Contractor overhead cannot exceed 10% of Construction Costs.

    • Developer must contribute at least 5% equity (cash or land value), though Spark generally prefers equity closer to 10%.

Forgiveness:

If the project meets the Middle-Income Workforce Housing Fund’s eligibility criteria, including the required value caps, rehabilitation threshold, and a Holder‑approved sales price, Spark may forgive a portion of the loan to cover the gap between total project cost and the appraised value or final sales price. Forgiveness is capped at the lesser of 50% of the loan amount or $100,000 per unit. This is documented as 1099 income for tax purposes.

REMEMBER: MWHF is strictly for for‑sale, owner‑occupied homes that meet program value caps and location requirements. Ready to move forward? Submit your MWHF pre‑application to access the full application.

Pre-Application