Housing Creation Incentives Staff Recommendations — Updated MatrixCity of Dubuque
City Council
ACTION ITEMS # 9.
Copyrighted
December 1, 2025
ITEM TITLE: Housing Creation Incentives Staff Recommendations —
Updated Matrix
SUMMARY: City Manager recommending City Council approval of the
attached resolution authorizing the City Manager to
implement the updated housing creation incentives to support
additional unit creation in Dubuque.
RESOLUTION Authorizing The City Manager To Offer And
Amend Housing Development Incentives For City Of
Dubuque Development Agreements
SUGGUESTED Receive and File; Adopt Resolution(s)
DISPOSITION:
ATTACHMENTS:
1. MVM Memo
2. Staff Memo
3. Housing Incentives Matrix
4. Resolution of Approval
Page 983 of 1214
THE CITY OF
Dubuque
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Masterpiece on the Mississippi
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2017202019
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Housing Creation Incentives Staff Recommendations — Updated Matrix
DATE: November 24, 2025
Economic Development Director Jill Connors is recommending City Council approval of
the attached resolution authorizing the City Manager to implement the updated housing
creation incentives to support additional unit creation in Dubuque.
In light of the most recent housing study and current market trends and demands,
Economic Development Director Jill Connors recommends one additional adjustment to
the City's housing incentive packages. To date, the Downtown Housing Creation Grant
Program has supported the development of multifamily rental units in existing historic
buildings. To diversify the types of housing available in our downtown, walkable
neighborhoods, Jill proposes expanding the program to include for -sale condominiums
in multifamily buildings. Specifically, she recommends offering the existing $10,000 per
unit grant for these for -sale units.
No additional funding is required beyond already approved budgets; the incentives
utilize tax increment generated by the developments themselves. These incentives do
not increase taxes for other property owners.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
v
Mic ael C. Van Milligen
MCVM:sv
Attachment
cc: Crenna Brumwell, City Attorney
Cori Burbach, Assistant City Manager
Jill Connors, Economic Development Director
Sandi Fowler, Interim Housing and Community Development Director
Jenny Larson, Chief Financial Officer
Wally Wernimont, City Planner
Page 984 of 1214
THE CITY OF
DUB E
Masterpiece on the Mississippi
Dubuque
Economic Development
Department
1300 Main Street
AII-Anerig90
Dubuque, Iowa 52001-4763
1 I
Office (563) 589-4393
I III®
TTY (563) 690-6678
http://www.cityofdubuque.org
2007-2012.2013
2017*2019
TO: Michael C. Van Milligen, City Manager
FROM: Jill M. Connors, Economic Development Director
SUBJECT: Housing Creation Incentives Staff Recommendations — Updated Matrix
DATE: November 21, 2025
INTRODUCTION
This memorandum presents for City Council approval a combined and restated list of
available financial incentives for the creation of housing within city limits.
BACKGROUND
In 2009, the City Council approved the Downtown Housing Incentive program. The goal
of this program is to encourage the development of market -rate downtown rental units
and to generally promote housing growth in the area. Since inception, the program has
successfully incentivized over 1,000 rental units in the Greater Downtown Area.
In November 2019, the City Council approved expanding the Dubuque Urban
Revitalization Area to support economic development and affordable housing projects.
This expanded District remained largely within the Greater Downtown Area as it contained
some of the oldest structures in Dubuque, historically significant properties, and a majority
of area residents lived below the median family income.
Despite these strong incentives geared toward promoting market -rate and affordable
housing creation, the demand for housing in Dubuque continued to exceed housing
creation.
In 2022 the Greater Dubuque Development Corporation conducted a housing needs
study. The study showed that the City of Dubuque would need approximately 1,100
housing units by 2030. The pace of housing construction at that time was not sufficient to
meet this goal. In its annual goal setting process in August of 2022, the City Council
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identified a Housing Incentive Policy as a High Priority in the 2022-2024 City Council Goals
and Priorities.
In 2025, the Greater Dubuque Development Corporation in conjunction with ECIA
conducted another housing needs study based on anticipated development from the
private sector in the coming years. That study suggests the need for even more housing
than is already anticipated.
DISCUSSION
Following the 2022 housing study, City staff brought a proposal for more aggressive
housing creation incentives to the City Council on September 6, 2022, which the Council
approved.
On August 24, 2023, based on state legislative changes (House File 718) to urban
revitalization (abatement) provisions, the City Council approved an additional staff
recommendation to offer downtown developers the choice between 10 years of
abatement followed by 5 years of tax increment financing (TIF) rebates — or— 15 years of
TIF rebates. The latter formalized the past practice of providing 15 years of TIF rebates
to downtown housing creation projects. This incentive is available to projects regardless
of rent rates but in any case, it prohibits discrimination based on source of income.
On November 4, 2024, the City Council once again approved a modification to economic
incentives in order to benefit the redevelopment of downtown buildings to support housing
growth. This change makes developers eligible for the full $35,000 in matching
redevelopment grants regardless of the category in which their expenditures fall (fagade
improvements, project design/planning, financial consulting).
In light of the most recent housing study and current market trends and demands, I
recommend one additional adjustment to the City's housing incentive packages. To date,
the Downtown Housing Creation Grant Program has supported the development of
multifamily rental units in existing historic buildings.
To diversify the types of housing available in our downtown, walkable neighborhoods,
propose expanding the program to include for -sale condominiums in multifamily buildings.
Specifically, I recommend offering the existing $10,000 per unit grant for these for -sale
units.
The attached document consolidates the incentives approved in 2022 with the
modifications approved in the interim, includes the aforementioned addition of incentivizing
downtown for -sale condominiums, and clarifies these housing creation incentives using a
K
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matrix which categorizes incentives by housing type, location, and affordability. It is City
staff's intention to utilize this matrix as a tool to better communicate with developers in
helping them understand which incentives are available for their projects.
I want to make City Council aware of recent activity in the Iowa Legislature that is expected
to carry into the 2026 legislative session. Throughout the 2025 session, state lawmakers
debated several proposals to change Iowa's property -tax system — including adjustments
to the "rollback" formula and limits on local property -tax growth — as well as proposals to
revise the Tax Increment Financing (TIF) program. Although none of these major changes
were enacted in 2025, legislative leaders and the Governor have indicated that property -
tax and TIF reform will remain priority issues when the Legislature reconvenes. As a result,
we anticipate that renewed debate in 2026 could lead to changes affecting how property -
tax revenues and TIF tools support local development projects.
BUDGETIMPACT
No additional funding is required beyond already approved budgets; the downtown housing
creation grant program is currently funded at $750,000/year throughout downtown,
$150,000/year for housing creation forgivable loans along the Central Avenue Corridor, and
$200,000/year for rehabilitation (i.e., fagade) grants throughout the downtown. The TIF
and abatement incentives utilize tax increment generated by the developments
themselves. These incentives do not increase taxes for other property owners.
RECOMMENDATION
I respectfully request City Council approval of the attached resolution authorizing the City
Manager to implement the updated housing creation incentives to support additional unit
creation in Dubuque.
Cc: Crenna Brumwell, City Attorney
Cori Burbach, Assistant City Manager
Sandi Fowler, Interim Housing and Community Development Director
Jenny Larson, Chief Financial Officer
Wally Wernimont, City Planner
3
Page 987 of 1214
Housing Incentives by Housing Type, Location,
and Affordability
,.,
Eligible
R.,
,.
Tools
Options
Outside
Econ. Dev. TIF up to 15
Details in Notes section
Single-
Greater
yrs OR
below
Family
Downtown
Urban
Affordable
Tax Abatement 5 years
Subdivision
Renewal
at 100% on first
Area
$75,000 of added value
Outside
Housing TIF up to 10
Housing TIF can only
Single-
Greater
yrs
cover eligible public
Family
Downtown
Market Rate
improvement costs and
Subdivision
Urban
requires LMI housing
Renewal
set -aside
Area
Greater
Econ. Dev. TIF up to 15
Details in Notes section
Single-
Downtown
yrs OR
below
Family
Urban
Affordable
** additional possible
Subdivision
Renewal
Tax Abatement 10
downtown incentives
Area
years at 100%
listed in Notes
Greater
Econ. Dev. TIF up to 15
Details in Notes section
Single-
Downtown
yrs OR
below
Family
Urban
Market Rate
** additional possible
Subdivision
Renewal
Tax Abatement 10
downtown incentives
Area
years at 100%
listed in Notes
Outside
Econ. Dev. TIF up to 15
Details in Notes section
Greater
yrs OR
below
Multi-
Downtown
Affordable
*Iowa Code
Tax Abatement 10
Family
Urban
years at 100%
§441.21(14(a)(6)
Renewal
taxed properties
Area
Outside
Housing TIF up to 10
Housing TIF can only
Greater
yrs
cover eligible public
Multi-
Downtown
OR
improvement costs and
Family
Urban
Market Rate
requires LMI housing
Tax Abatement 10
Renewal
years at 73%
set -aside
Area
or declining schedule
Greater
Econ. Dev. TIF up to 15
** additional possible
Multi-
Downtown
yrs OR
downtown incentives
Tax Abatement 10
Family
Urban
Affordable
listed in Notes
Renewal
years at 100%
Area
Page 988 of 1214
Greater
Econ. Dev. TIF up to 15
** additional possible
Downtown
yrs OR
downtown incentives
Multi-
Tax Abatement 10
Family
Urban
Market Rate
listed in Notes
Renewal
years at 100%
Area
NOTES
*Both TIF and tax abatement apply only to actual value added by improvements, not
existing valuation
*"Affordable" means projects that create housing affordable to households making 80%
or less of the median county income. See Iowa Code §403.17 (14) definition of Low or
moderate income families.
*Tax abatement does not exempt school levies
*Multi -Family means 3+ units on the same taxing parcel
*All projects seeking TIF incentives must:
• Receive approval before construction starts
• Be located in an urban renewal area
• Be subject to a development agreement approved by the City Council
• Be in an urban renewal area before construction starts to be eligible to
receive incentives on entire project
*All projects seeking Tax Abatement incentives must:
• Be in a revitalization area before construction starts to be eligible to receive
incentives on entire project, and must timely apply for abatement.
**AII downtown rehab projects may also be eligible for $10,000/unit and up to $35,000 for
exterior improvements and associated costs. See eligibility criteria here.
*Iowa Code 441.21(14(a)(6)
14. a. Beginning with valuations established on or after January 1, 2022, all of the
following shall be classified and valued as residential property:
Page 989 of 1214
(6) A parcel primarily used or intended for human habitation containing three or
more separate dwelling units. If a portion of such a parcel is used or intended for
a purpose that, if the primary use, would be classified as commercial property or
industrial property, each such portion, including a proportionate share of the land
included in the parcel, if applicable, shall be assigned the appropriate classification
pursuant to paragraph "b".
Page 990 of 1214
Prepared by: Jill Connors, Economic Development, 1300 Main Street, Dubuque, IA 52001
RESOLUTION NO. - 25
AUTHORIZING THE CITY MANAGER TO OFFER AND AMEND HOUSING
DEVELOPMENT INCENTIVES FOR CITY OF DUBUQUE DEVELOPMENT
AGREEMENTS
WHEREAS, the City Manager has been designated by the City Council of the City
of Dubuque to act as negotiator of development agreements and incentive packages on
behalf of the City of Dubuque; and
WHEREAS, the City Council has a 2029 goal of Livable Neighborhoods and
Housing: Great Place to Live; and
WHEREAS, the City Council desires to compile and restate its housing incentive
policies previously adopted; and
WHEREAS, City staff has created a framework for a Housing Incentive Policy set
out in the attached Housing Incentives By Type Location Affordability Matrix.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF DUBUQUE, IOWA:
Section 1. The City Manager is authorized to develop and offer housing
development incentives as set forth in the attached Housing Incentives By Type Location
Affordability Matrix.
Section 2. The City Manager is authorized to amend the conditions and
incentives set out in the Housing Creation Incentives Staff Recommendations — Updated
Matrix as needed to fit projects as best possible and in a flexible manner.
Passed, approved and adopted this 1 St day of December, 2025.
Brad M. Cavanagh, Mayor
Attest:
Adrienne N. Breitfelder, City Clerk
Page 991 of 1214