Leveraging philanthropy to build modern affordable housing

By Liz McCue 

It took around a decade and the collaboration of dozens of individuals and organizations to reach a groundbreaking ceremony held on Nov. 6. But within two years, Center Terrace will bring 125 affordable apartments, community space and a medical clinic to 1000 S. 13th St. in the South of Downtown neighborhood.  

The five-story building will offer one-, two- and three-bedroom apartments feasible for residents making 50-60% of Lincoln’s median household income. The name highlights both the location’s past as the home of CenterPointe and the building’s rooftop deck, said Carina McCormick, housing advocate and treasurer for the South of Downtown Community Development Organization (SDCDO) board of directors.  

Carina is a resident of the neighborhood and has been involved in efforts to improve the area even before SDCDO was created in 2016. She also served as board president in 2023, and worked closely with organizations, including Lincoln Community Foundation (LCF), that helped make the Center Terrace project a reality.   

“It’s a remarkable number of organizations and institutions that have made this possible,” said Rich Herink, LCF’s consultant for strategic partnerships. “Not to just build it, but to build it so it could be rented out to people with half the median income.”  

Both Rich and former LCF President Barbara Bartle helped SDCDO build connections that support the mission of the foundation — to improve the Lincoln community — and the goals of Center Terrace.  

LCF helped SDCDO in initially purchasing the land for Center Terrace, a loan since repaid after being turned over to Hoppe Development, which will oversee construction and manage the completed property. A second, low-interest loan, along with loans from the Woods Charitable Foundation and the Cooper Foundation, and funds from an anonymous donor, will ensure units can be rented at 50% of Lincoln’s median household income for years to come.  

A model for collaborative, affordable housing development 
The question was always “how can we help drive these costs down to make it affordable,” said Rich. Anyone can build an apartment complex to be rented at market value, he noted, but many residents in the South of Downtown make far less than Lincoln’s median household income, recorded at $67,846 according to the 2022 census. 

That’s where a network of local and state agencies came together. Along with foundations, SDCDO and Hoppe Development worked with the city of Lincoln for tax-increment financing designated specifically to support low-income housing in the neighborhood, along with $300,000 for public improvements. Lincoln Electric System provided funds to increase the building’s energy efficiency, further providing savings for future residents.  

The Nebraska Department of Economic Development administered ARPA grants that support both Center Terrace and Clinic With A Heart, a free, local healthcare clinic that will move into commercial space on the first floor, and Community Development Resources helped structure the philanthropic loans and ARPA grants. Low-income housing tax credit was allocated by the Nebraska Investment Finance Authority, with tax equity provided by WNC.  

Multiple banks collaborated on a syndicated loan for construction — Horizon Bank, Pinnacle Bank, BankFirst and West Gate Bank — and Cedar Rapids Bank and Trust provided a permanent bond.  

Additionally, Congressman Mike Flood has advocated for $2.2 million in 2025 community project funds to support Center Terrace and public space improvements around it, including street crossings, sidewalks, lighting and a pocket park, according to his website.  

“This project is a model for how to collaborate with neighborhoods and serve communities,” said Jake Hoppe, Hoppe Development managing partner, at Center Terrace’s groundbreaking.  

Built for the community 
Hoppe Development’s commitment to collaboration was one of the reasons Carina and other SDODC board members supported handing the development of Center Terrace to the company.  

“It’s all very community driven,” she said, from incorporating feedback from residents to working with the Lux Center for the Arts to commission murals on the building when construction is completed.  

The design of the building, by architectural firm Alley Poyner Macchietto, was also chosen to complement the character in the surrounding neighborhood. 

“There had always been an effort to make Center Terrace within the environment of the existing neighborhood,” said Carina. “That played into the design, to make it look like three smaller buildings instead of one large apartment complex.”  

The South of Downtown stretches from Tenth Street through 17th Street and L Street south to A Street, and includes parts of the historic Everett, Near South and Capitol View neighborhoods. Residents are primarily renters (more than 90%), and median household income for the neighborhood is just $20,826, according to the city’s South of Downtown Redevelopment & Strategic Plan.  

A resident panel consulted throughout the project, as well as surveys of residents and neighborhood engagement led by SDODC and NeighborWorks, identified priorities for Center Terrace. At the top was affordability for current South of Downtown residents — but so was communal space, a park and off-street parking.  

“I’m just excited to see people move in,” said Carina. 

She noted that Center Terrace will offer individuals and families safe, healthy, accessible homes. The building will have an elevator, and in-unit washers and dryers, which aren’t available in many apartments in the neighborhood. A garage on the first floor will provide close parking for tenants and Clinic With a Heart.  

Center Terrace will also be built around a public “pocket” plaza that can support events, mobile healthcare clinics and food trucks, in response to resident requests. A small park and public community room will also provide neighbors with space for entertainment, celebration and connection. 

Feedback from residents at a community forum held by SDODC was “overwhelmingly positive,” Carina said, for Center Terrace’s design and the opportunities it will open to the neighborhood. Both she and current SDODC Board President Kile Johnson agreed the inclusion of Clinic With A Heart is a win for the community.  

“It became a natural fit,” said Kile. 

The move will give Clinic With A Heart dedicated space in a location accessible to uninsured or low-income patients both new and current. A StarTran bus stop is already present at the site, and bike lanes and well-marked crosswalks are part of the intended public improvements.  

The work that went into Center Terrace won’t end once construction is completed, though. Instead, it will serve as a benchmark for what affordable housing development could look like in both Lincoln and elsewhere. The Hoppes manage developments across Nebraska and can apply the combination of tax credits and philanthropy, and comprehensive community engagement to support even more communities.   

In the meantime, affordable housing projects and programs will continue for the South of Downtown, utilizing housing trusts and TIF-backed rental rehabilitation funding. LCF has worked hand-in-hand with SDCDO since the organization was founded and will continue to seek opportunities to improve the Lincoln community and the lives of its residents.