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Updated Local Housing Creation, Access, & Affordability Programs & Incentives Brochure Copyrighted September 5, 2023 City of Dubuque Consent Items # 08. City Council Meeting ITEM TITLE: Updated Local Housing Creation, Access, &Affordability Programs & Incentives Brochure SUM MARY: City Manager providing a copy of the Updated Local Housing Creation, Access, &Affordability Programs & I ncentives Brochure SUGGESTED Suggested Disposition: Receive and File DISPOSITION: ATTACHMENTS: Description Type Housing Incentives Brochure -Aug 29 2023 Supporting Documentation . � . � � � . . ,�-_� __ . . _ -- _ _ � . _ , _ - _ '_► '� � i . t .�. . <1 ,� _.� � f ;: _ . - _ _ � � � • _ . . � ! �;. '-�.. n � ' _r w `�' i�b�� ��-"�.P �. . � ti�� ; �a•' x?a r . . a i t 2 �� ' .- �, y � � �lt,r s� ��'� _ � �` � � 1 . i � .�f 1' '�. 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''� .. . � — � ��: I � ����� �S � N v � _ I � �• 1 -■ � � - - ��' � } -__ _ _ _ _ - (_ � Increasing opportunities for quality, affordable housing in Dubuque � - _:�A :-,�. 0 0 . . . . - . . - - � �r SCAN ME , ��� �� �� � ���� � - ��� - � � �� � �, � �` � 5�,e ,��.., �; ,- � _ � . ;��.�� �, , �.. f � F; � __ . 1, . „T ���. � � (/ - ''� _ �' 1'�'��lii���i� _ I�f �t � � - ' - � ��'�• �qy`ill I''rl � �'����.�.`If`��II C�� ' ' � :ir`r � �'� "` Isr rl� j ,I�� `', {�'. i , ' - �. . � llj [ � � . ..� ' . . —_ � � ✓ _:- _ �- , v _ _�:��;.� - _ ... :-��_��. ` �Af'' M'�� '� _ '� �� - . . - i � . :..�� �-�.�� `� -� - r�, - ,s, _�_ _ - -� .. , � _ �' _ _ . �� ' � QUALITY, AFFORDABLE HOUSING - �: i AND ITS IMPACT ON DUBUQUE :�;� �1 T � As a high priority of the Dubuque City Council Affordable housing promotes economic � � ' �, and component of the City's Equitable stability, health and well-being, education, �.—;�,� �. Poverty Reduction and Prevention Plan, the community development, social equity, poverty -_ City of Dubuque offers a variety of financial alleviation, and resilience. By addressing ' �� resources to encourage property owners housing affordability, communities can support ���� � to create and maintain quality, affordable their residents'overall well-being, and create a housing in Dubuque. more prosperous and sustainable future. The City of Dubuque offers a variety of resources to homeowners, commercial property owners, and rental property owners. Use the incentives map to learn more about these programs and determine your property's eligibility. � �, . � s'- � ` o' _ � www.cit �uque.org/incentives Dubuque's local incentive programs can be combined with State and Federal programs - helping your business make the most of its resources. The lowa Economic Development Authority administers The U.S. Environmental Protection Agency (EPA) several programs to assist individuals, communities, and administers programs that offer support to projects that businesses in business and community development. protect and better human health and the environment. Learn more at www.iowaeda.com Learn more at www.epa.gov The lowa Finance Authority administers programs that The U.S. Department of Housing and Urban Development provide affordable financing resources for individuals and (HUD) administers programs that offer support to projects their goals, from mortgage or down payment assistance that create strong, sustainable, inclusive communities and rental programs that provide affordable homes, to and quality affordable homes for all. low-cost funds for drinking water, help for beginning Learn more at www.hud.gov farmers and more. Learn more at www.iowafinance.com/ The U.S. Department of Commerce administers programs programs-for-property-developers/ that offer support to projects that create the conditions for economic growth and opportunity. The State Historical Society of lowa administers programs Learn more at www.commerce.gov that helps preserve and bring new life to lowa's history. Learn more at iowaculture.gov/history LOCAL MULTI-RESIDENTIAL / RENTAL PROPERTY INCENTIVE PROGRAMS � Department contact information: � Economic Development Housing &Community Development � Planning Services 563.589.4393 563.589.4230 563.589.4210 www.cityofdubuque.org/econdev www.cityofdubuque.org/housing www.cityofdubuque.org/planning � Downtown Housing Incentive To qualify,a project must assist in the creation of new market-rate downtown rental units within the Greater powntown Urban Renewal District.The project must be a rehabilitation of an existing structure and located above the commercial component on the first floor of the building unless the project is rehabilitating or reusing a former church or school building. Maximum of$10,000 per unit. � Downtown Urban Renewal Housing Incentive Encourages the use of available downtown buildings and infill sites by offering developers the choice between 10 years of tax abatement followed by 5 years of tax-increment financing(TIF) rebates OR 15 years of TIF rebates. Eligibility is limited to multi-family projects in the Greater powntown Urban Renewal Area. � Fa�ade Grant A maximum of a$10,000 1:1 matching grant is available to provide assistance on labor or material costs for front fa�ade renovations to restore a building's historic appearance or eliminate inappropriate additions or alterations to improve overall appearance. Property must be located in Greater powntown Urban Renewal District. � Financial Consultant Grant A maximum of a$15,000 1:1 matching grant is available to provide assistance on hiring a financial consultant used to analyze the feasibility of a project.Property must be located in Greater powntown Urban Renewal District. Healthy Homes Program Program participants may qualify for up to$10,000 to create a healthier home OR up to$20,000 for lead remediation plus an additional $5,000 for other household hazards.The program addresses household hazards including mold,water intrusion,lead paint,allergens, asthma,carbon monoxide,home safety, pesticides,and radon. Available to low-to moderate-income residents, both renters and homeowners. Historic Preservation Revolving Loan Fund Program Program participants may qualify for up to a$25,000 loan.Property must be at least 50 years old and designated as a City Landmark,or individual historic property,or located in the following Historic Preservation Districts:Jackson Park,Cathedral,W. llth Street,Langworthy, or Old Main.This loan fund provides positive incentives to owners of these historic properties to maintain and improve the community's architectural heritage. � Planning&Design Grant A maximum of a$10,000 1:1 matching grant is available to provide assistance on pre-development costs associated with a project. Property must be located in Greater powntown Urban Renewal District. Urban Renewal Housing Tax-Increment Financing(TIF) Tax-increment financing(TIF) is an important and flexible tool used in communities forthree main purposes: promoting economic development,eliminating slum and blight,and facilitating housing development. Housing TIF Affardable Unit Creation: Offers$10,000 per affordable(Low-Income Housing Tax Credit) residential unit created for projects outside areas of concentration of poverty using the Housing TIF collected in current and future Residential TIF Districts. The number of units supported will be dependent on the availability of funds from this funding source. � Market Rate Residential Subdivision, Multi-Family Units:Owner-occupied,attached/detached single-family home, multi- family units/apartments. Requirements: installation of fiber conduit, accept housing choice vouchers.Term: 10 years. � Mixed-Income Residential Subdivision:Owner-occupietl,attachetl/tletached single-family home, multi-family apartments. Requirements: installation of fiber conduit,accept housing choice vouchers.Term: 10 years. Urban Revitalization Program(Tax Abatement) Encourages the revitalization of buildings in the community's oltler neighborhootls by offering a property tax exemption for new improvements matle to qualified residential and commercially assessed properties. • New Area Multi-Family Development:ApartmenUTownhouse.Requirement:must accept housing choice vouchers.Term:up to 10 years. • Existing Revitalization Area Residential Rehabilitation:All residential.Requirement:must increase value by 10%.Term: 10 years. LOCAL HOMEOWNER INCENTIVE PROGRAMS � Department contact information: Housing &Community Development � Planning Services 563.589.4230 563.589.4210 www.cityofdubuque.org/housing www.cityofdubuque.org/planning First-Time Homebuyer Loan Program This City of Dubuque Housing&Community Development program provides long-term, no-interest(0%),$5,000 loans to help an income- qualified resident purchase a first home at any location within the City of Dubuque limits. Healthy Homes Program Program participants may qualify for up to$10,000 to create a healthier home OR up to$20,000 for lead remediation plus an additional $5,000 for other household hazards.The program addresses household hazards including mold,water intrusion,lead paint,allergens,asthma, carbon monoxide,home safety, pesticides,and radon. Available to low-to moderate-income residents,both renters and homeowners. ` Historic Preservation Revolving Loan Fund Program Program participants may qualify for up to a$25,000 loan.Property must be at least 50 years old and designated as a City Landmark,or individual historic property,or located in the following Historic Preservation Districts:Jackson Park,Cathedral,W. llth Street, Langworthy, or Old Main.This loan fund provides positive incentives to owners of these historic properties to maintain and improve the community's architectural heritage. Homeowner Rehabilitation Loan Program Provides low-interest, long-term, loans up to$25,000,to homeowners to rehabilitate their properties.The home must be code-compliant, and the project must be finished in its entirety upon completion of work performed with loan funds.Owner-occupied,single-family home,or duplex in the City of Dubuque,with qualifying households earning no more than 80%of area median income. Housing Choice Voucher Homebuyer Program This HUD program assists housing choice voucher participants in purchasing a home. It is similar to the rental voucher program, but instead of payments going to a landlord, payments go to a mortgage lender. Housing TIF Affordable Unit Creation Offers$10,000 per affordable(Low-Income Housing Tax Credit) residential unit created for projects outside areas of concentration of poverty using the Housing TIF collected in current and future Residential TIF Districts.The number of units supported will be dependent on the availability of funds from this funding source. Urban Revitalization Program(Tax Abatement) Encourages the revitalization of buildings in the community's older neighborhoods by offering a property tax exemption for new improvements made to qualified residential and commercially assessed properties. Washington Neighborhood Homebuyer Loan Program Program provides long-term, no-interest(0%), loans in varying amounts based on household size and annual income to any owner- occupied,single family or duplex home in the Washington Neighborhood (llth Street to 32nd Street,Elm to Central). Washington Neighborhood Homeowner Rehabilitation Loan Program Program provides low-interest, long-term loans, up to$25,000,to homeowners to rehabilitate their properties for any owner-occupied, single family or duplex home in the Washington Neighborhood (llth Street to 32nd Street,Elm to Central). r.,,, -.. �:.: .. _ �� -_ -�-. • f . _� - - . � _ ._ _ . = .� _ - - _ .,.� : �_.,�� -�.....� -���:� :.- -- --�� �'_. r, .+,�. '�� ���_. � _. ;.� :_� ,,��� -�� -�� p ._ i. � ��, � '"` ��'r �' r� �, � �:. �.� - � ��. �.. �°- �.v' ti�W4' �;�� ��,-�- � _ . ` v� ��� - - r - �� � -:..��„ �w �,. _ so � � � .. � - .__. •"� . � _ ,..� �. . . —n �' � � r - � �l '�.- ' �` , R'^�,I '��; �_� � �.- .i �l �� � `-- �,�---,ti� } �„ . �5 � h �� +.■. , t'41E'�' � [ ,�i� � �� �r�— '�y� — - �. ��� � � S� 1.,;� f 1- �j�� � � . - �`��. . � �_� � � - " a� A � -- .�� �'._. -� ,,� , � .'��� � -' ` � ;d.c�,,. _ .. . ,� . �-. 14. .,�_�,,. `� .�.. � � ��� . . _ �� �, . ,'�'.�'t.�� ��' �..X . � �� � � � �, -�.r � m _ ..�r .i�'�7� 'q,_... .. �'�ii. � .,� s ! � � ��t.Y.i�� - .. . , , ...h:�' '. ..,.. .. .�A:. -.x . , w.. �..�e_ ,+w,r` �ry�,..� ..'�.-, WHAT IS TAX-INCREMENT FINANCING (TIF)? Tax-increment financing (TIF) is an important and flexible tool used in communities for three main purposes: promoting economic development, eliminating slum and blight, and facilitating housing development. When a TIF district is created, a "base"valuation of the property value � � � is established.The base valuation accounts for assessed values prior to EXAM PLE the TIF designation.The tax revenue s,,0°°••••-•-•-•-•-•-•-••••••-•-•-•-•-•-•-•-••••••-•-•-•-•-•-•-••••••-•-•-•-•' from this base value remains with z all taxing authorities. Increases in o the assessed value over time over J and above the base are called the > '' r • � "increment."The TIF authority(in this � ' ' ' a TAX WCREMENT • ' CqS@� the City of Dubuque) may access � GENERATEDOVERTIME •' a the tax revenue generated by the increment, to fulfill the designated purpose of the district. $10° . TODAY END OF TIF STARTS TIME TIF HOW IS TIF USED BY CITIES? TIF is typically used by cities to fund public improvement projects or private project-based financial assistance, in conjunction with developing or For more information on Dubuque's redeveloping different parts of a city. This may include upgrading areas of the Housing TIF Districts,contact the City city suffering from slum and blight, helping residential development efforts, of Dubuque Economic Development and enhancing economic development activities. Depending on the size of the Department: 563.589.4393 project, cities may use the annual increment to provide project funding or may econdev@cityofdubuque.org need to incur debt to finance an improvement, such as installing infrastructure. � _ � ,� � , ( � , f - r ��"�E� �✓' p ���-'��w—�— �3� /�-i �d �A I� � Il / _ '������ 1 r —_ �a -.. . .:a�' f f ,_ p - � � �.i � �S(��-✓,; _ � -��_� � � � '. ,�,i .�Y � _ ... �" ���� ;:� .,�� b. �{�B� �� � 1�:,,, � 1: -� � � � `� �r l � S� .� w � £'� k // �A� r�5' , ��� _ � � � � '� _ T � �� v b l. _ , � �_ � IC_� �—. ��. i�� ,�"� � ��y � �� �� � � � p v � � y � r �' i�� � ' i F� �'� � � ��ti;, - _; , I � �_ r. � �,�—= ����,,, '-- `'� ' � .�a G � ' %.r, _�� ,.� . � ,�� if -v. � , r � �N`x��, .� - �"�'�'��� Y`�7,��f� _ `•:°' � . - `t r- - - _- 4 ��; � - - ��y �x � ` � �r�� � �� �/ . i.�� � — � <'f ��� efY�3 y -�...�� �� ��N� I ��'� l% '� � - 1�, ;+�-�., � ; - — i � �rii� �3��y, ^� p . �- � x�. � - y r` � i — �� '16. �I � ,'r � �_ .�S;'``s. j — � _ � .�FM'_�Tmj).l, �. ��'. _ �- ? -.� �_ i � — �cr ..l �"- -�s'� ��� - . — ._- . [II��. . 1 — A� - _ — � h, � ;t , � —— _ `f I �_ :. ' .� ti:.. � — __ �I f - 6 , :Y y�- . �I � i � , s t ` _� " � F`_ -� `r�i' � f � y�;� _ � �;" �>'. — E �,.��� � z' , � � �"!�� �r �, F i �'�ia �,i � � � y _ � ,s�� , ,� I�,I_ �_ � � ,+`�4: +k� d��f_ �, .,__ � � rf ti t�' - I�� �� �'.wi�:��.+ifi�.�'�k'8� . ��/� . .. @�.'r;'1 1� a�'�,'e\,r,�R�, _ ��1. TIF FOR HOUSING INFRASTRUCTURE Cities can use Tax Increment Financing(TIF)to pay the cost of Housing TIF Districts support reinvestment antl redevelopment • streets, activities in the urban renewal area and support revitalization • water, within the area and the community for low-and motlerate-income • sanitary and storm sewers, families.Cities can establish Housing TIF Districts within their • parks, corporate limits antl within two miles of their corporate boundaries • trails,and with the consent of the County Boartl of Supervisors. • related public improvements for new housing tlevelopment by creating Housing TIF Districts. Housing TIF in Dubuque The City of Dubuque's use of Housing TIF is a Dubuque City Council priority. The City Council's 15-year vision statement for Dubuque calls for a "strong, diverse economy and expanding connectivity" and "choices of quality, livable neighborhoods." Using Housing TIF enables Dubuque to implement projects to pursue that vision and support workforce retention and development, increase the local tax base, and address the city and school district's stagnant population growth. i ` � :��� �� - � - _ — _- �� 4 , By state law, when TIF is used for housing development, •�� =- , � approximately 38 percent of the future tax increment revenues , � _ � � , � M p ' ' = from the project must be used to provide housing assistance to �-�--���--�-- _��' _- low- and moderate-income families whose incomes are no greater ' .., ,� _ , { _ �� than 80 percent of the median income anywhere in the city. This _ � � � �I � '� , _ �. , -- is starter housing for Dubuque's current and future workforce, and „'�— "�, ` -- ._ - � � our most vulnerable residents, the elderly and disabled. -_ ---- - Initial plans call for much of the affordable housing assistance Before and after photos of a housing rehabilitation project to be provided in downtown neighborhoods through the City's CHANGE (Comprehensive Housing Activities for Neighborhood Growth & Enrichment) Program. From 2016-2023, Dubuque's six Housing TIF districts are projected to generate $3.1 million for affordable housing Dubuque's TIF Districts The City of Dubuque has created six Housing TIF Districts, all with Dubuque County's consent. The Timber Hyrst Housing TIF District was formed in 2014 to promote additional Sky Blue Estates Housing TIF District is intended to generate funds for improved residential options in Timber Hyrst Subdivision in the city,by assisting with the roatls antl utilities in the Area,specifically,utility improvements and the addition funding of road and utility improvements along portions of North Cascade Road. of a water tower.Funtling generatetl in the Area also assists with Low and These improvements are facilitating safer travel along the roatl that serves as a Moderate Income(LMI)family housing anywhere within the City of Dubuque. main artery from the city of Dubuque to the Southwest Arterial by straightening some of the curves on North Cascade Road in both the city and the county. It has North Grandview Estates Housing TIF District is intended to generate funds for also allowed the City to install some needed water,sanitary,and storm sewer the development of a residential district(North Grandview Estates Subdivision) infrastructure. and infrastructure improvements including installation of fiber conduit and vaults,a retaining wall,a curb untlertlrain,and portions of trail development The English Ridge Housing TIF District was formed in 2015 to promote the from the subdivision to the Bee Branch 32nd Street Detention Basin.Funding creation of atlditional residential options in Dubuque,as well as to provide generated in the Area also assists Low and Moderate Income(LMI)housing funding for water main installation. anywhere within the City of Dubuque. The South Pointe Housing TIF District is intended to generate funds for improved Each of these Housing TIF Districts has an Urban Renewal Plan that describes roads and utilities in the designated area,as well as provide funding to assist the specific use of tax increment funds,such as provitling tax rebates,installing with affordable housing anywhere within the city of Dubuque. public infrastructure,or other planned expenditures. These Housing TIF Districts, consistent with state law,currently set aside approximately 38 percent of project The Rustic Point Housing TIF District is intended to generate funds for the cost increment,thus providing funding for the benefit of low-and moderate- installation of sewer and water utilities related to housing and residential income family housing opportunities anywhere in the city of Dubuque. development,as well as supporting affordable housing anywhere within the city. I�Housin TIF District Location� � � O ' � h � � i� � . � , . 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City Limits � � �� ' ,/ _ -` 61 ., � — Housing TIF Districts li _ I i � \�'�' � �� ` �� \ �� . . _ THE CITY OF DUB E Masterpiece on the Mississippi Economic Development Housing &Community Development Planning Services 563.589.4393 563.589.4230 563.589.4210 www.cityofdubuque.org/econdev www.cityofdubuque.org/housing www.cityofdubuque.org/planning ❑' � ❑' ,_ www.cityofd u buq ue.org/i ncentives or CM036-082923