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Housing Creation Incentives — Updated MatrixCity of Dubuque City Council ITEM TITLE: SUMMARY: SUGGUESTED DISPOSITION: ATTACHMENTS: 1. MVM Memo 2. Staff Memo Copyrighted December 15, 2025 CONSENT ITEMS # 10. Housing Creation Incentives — Updated Matrix City Manager recommending City Council receive and file the attached updated Housing Incentive Matrix. Receive and File 3. Housing Incentives By Type Location Affordability Matrix 4. Housing Units Status Page 274 of 1019 THE CITY OF DUBE Masterpiece on the Mississippi TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Housing Creation Incentives — Updated Matrix DATE: December 10, 2025 Dubuque AI WIN av 2007-2012.2013 2017*2019 Economic Development Director Jill Connors is recommending City Council receive and file the attached updated Housing Incentive Matrix. This is a restated summary of currently available financial incentives for housing creation within city limits. The matrix consolidates these incentives and is intended as a communication tool for developers. No new funding is required. Existing programs are funded at: • $750,000/year for downtown housing creation grants • $150,000/year for Central Avenue Corridor forgivable loans • $200,000/year for downtown rehabilitation grants TIF and abatement incentives are self -funded through project -generated tax increment. I concur with the recommendation and respectfully request Mayor and City Council approval. Y 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 275 of 1019 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 — Updated Matrix DATE: December 4, 2025 INTRODUCTION This memorandum presents, for City Council review, a restated summary of currently available financial incentives for housing creation within city limits. The attached matrix consolidates these incentives and is intended as a communication tool for developers. BACKGROUND Since 2009, the City has implemented several programs to support housing development, particularly in the Greater Downtown Area. These include the Downtown Housing Incentive Program, expansion of the Greater Downtown Urban Renewal Area, consolidation of the Downtown Urban Revitalization Area, creation of addition urban renewal and urban revitalization areas, and various grant and TIF-based tools. The City Council has also approved housing incentive agreements for the creation of housing (both multifamily and housing subdivisions) outside of the Greater Downtown Urban Renewal Area. In 2022 the Greater Dubuque Development Corporation (GDDC) 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 identified a Housing Incentive Policy as a High Priority in the 2022-2024 City Council Goals and Priorities. Page 276 of 1019 In recent years, during regular InfoAction interviews with leaders of local businesses, the Greater Dubuque Development Corporation (GDDC) identified a consistent challenge: the lack of available housing is significantly hindering businesses' ability to attract talent. In response, GDDC partnered with the East Central Intergovernmental Association (ECIA) in 2025 to conduct a new housing needs study. This study was based on anticipated private sector development in the coming years and revealed that the demand for housing will exceed current expectations. To support projected population growth, the study estimates that an additional 1,937 to 2,560 housing units will be needed. DISCUSSION Following the 2022 housing study, City staff presented a proposal for more robust housing creation incentives, which the City Council approved on September 6, 2022. At that time, staff also developed a visual tool to help explain to developers which incentives their projects may qualify for. Since that time, several modifications have also been approved by City Council, including: • giving developers a choice between 15 years of TIF rebates or 10 years of tax abatement followed by 5 years of TIF for housing creation projects. • providing access to the full $35,000 in matching downtown redevelopment grants regardless of the category in which the expenditures fall (fagade improvements, project design/planning, financial consulting). The attached document consolidates all currently approved housing creation incentives using a 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. BUDGETIMPACT No new funding is required. Existing programs are funded at: • $750,000/year for downtown housing creation grants • $150,000/year for Central Avenue Corridor forgivable loans • $200,000/year for downtown rehabilitation grants TIF and abatement incentives are self -funded through project -generated tax increment. RECOMMENDATION K Page 277 of 1019 I respectfully request City Council receive and file the updated Housing Incentive Matrix. 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 Page 278 of 1019 Housing Incentives by Housing Type, Location, and Affordability Single -Family Subdivision Housing Location AffordabilityEligible , Type 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 FamilyUrban Affordable ** additional possible Tax Abatement 10 Subdivision Renewal years at 100% + Econ. downtown incentives Area Dev. TIF up to 5 yrs listed in Notes Blight Remediation TIF Details in Notes section Greater up to 15 yrs OR below Single- Downtown ** additional possible Tax Abatement 10 Family Urban Market Rate downtown incentives Subdivision Renewal years at 100% +Blight listed in Notes Area Remediation TIF up to 5 yrs 4911-6859-5328-1 \1 0422-194 Page 279 of 1019 Housing Incentives by Housing Type, Location, and Affordability Multi -Family Housing Location Affordability R•q p• Tools Options Outside Econ. Dev. TIF up to 15 Details in Notes section Greater yrs OR below Tax Abatement 10 Multi- Downtown Affordable Family Urban years at 100% + Econ. Renewal Dev. TIF up to 5 yrs 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 Downtown yrs OR downtown incentives Multi- Family Urban Affordable listed in Notes Tax Abatement 10 Renewal years at 100% + Econ. Area Dev. TIF up to 5 yrs Blight Remediation TIF ** additional possible Greater up to 15 yrs OR downtown incentives Multi- Downtown listed in Notes Tax Abatement 10 Family Urban Market Rate years at 100% + Blight Renewal Area Remediation TIF up to 5 yrs 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. 4911-6859-5328-1 \1 0422-194 Page 280 of 1019 *Tax abatement does not exempt school levies *Multi -Family means 3+ units on the same taxing parcel as defined in Iowa Code 441.21(14)(a)(6) quoted below. *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. **All 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: (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". 4911-6859-5328-1 \1 0422-194 Page 281 of 1019 2,601 Total Lots/Units as of Sept. 22, 2025, inclu -392 Workforce Unidin Residential Subdivision Lot Availability Development Location Lots/Units Available Use North Grandview/32nd Street 32 Lots/Units Single-Family/Apartment North Grandview Estates Rustic Point Estates #2 Derby Grange/KennedyGrange/Kennedy Roads 40 Units Single- Famil/Du lex Sky Blue Estates* Sky Blue Drive 4 Lots Single -Family Silver Oaks Subdivision Elmwood/Silver Oaks Drive 127 Lots Single- Famil/Du lex South Pointe Estates*I Rockdale Road/South Pointe Drive 37 Units I Single- Famil/Du lex Timber-H rst Estates lCreekwood Drive/Cherry Ride 121 Lots I Single- Famil/Du lex/Townhome The Farm/Switch Homes I End of Tiffany Court 118 Lots Sin le-Famil "Subdivision has additional phases TOTAL: 279 itial Development - Under Review Development Location # of Lots/Units Use Visitation/AHNI 900Alta Vista Street 25 Units Workforce Apartments Im Carter Road Apartments Carter Road 40 Units Market -Rate Apartments Farley & Loetscher, LLC 801 Jackson Street 126 Units Market -Rate Apartments 1701 Central Ave. Apartments 1701 Central Avenue 4 Units Market -Rate Apartments Bridge Lofts 35 Locust Street 81 Units Market -Rate Apartments/Mixed Use Iowa Street Lofts 1248 Iowa Street 17 Units Market Rate Apartments Millwork Flats 1065 Jackson Street 76 Units Market -Rate Apartments Plastic Center, Inc. 408 W. Fifth Street 9 Units Market -Rate Apartments Corridor DBQ 1527 Central Avenue 10 Units Market -Rate Apartments Wilson House Apartments 1243 Locust Street 5 Units Market -Rate Apartments 1301 Central Ave. Apartments 1301 Central Avenue 130 Units Market -Rate Apartments Fifth 8t Main St. Apartments 200 W. Fifth Street 1102 Units Market -Rate Apartments/Mixed Use TOTAL: 525 Development Location # of Units The Farm/Switch Homes End of Tiffany Court 84 Lots South Pointe Phase 2 South Pointe Drive 21 Lots 22 Units Callahan Apartments 380 Cedar Cross Road 1180 Units Use Single-Fami Market -Rate Apartments TOTAL: 307 ADDITIONAL DETAILS ON BACK Page 282 of 1019 CONTINUED FROM PAGE 1 ResidentialApproved Development Location # of Lots/Units Use The Stacks Ilce Harbor Drive 187 Units Market -Rate Apartments Fox Hills Apartments lEnd of Plaza Drive 390 Units Market -Rate Apartments TOTAL: 577 Development - Un.- Development Location 1734-36 Central Avenu 1# of Units Units Use rkf Market -Rate Apartments arich Property LLC Apartments Cedar Lake Apartments Lake Ridge Drive 42 Units Market -Rate Apartments 799 Main Street Apartments 799 Main Street 36 Units Market -Rate Apartments St. Anthony's School 2175 Rosedale Avenue 22 Units Market -Rate Apartments 1706 Central Apartments Emri Apartments Union at the Marina Habitat for Humanity 1706 Central Avenue Radford Road 1860 Hawthorne Street Wood Street 11 Units 48 Units 201 Units 16 Units Market -Rate Apartments Workforce Family Housing Apartments Workforce Family Housing Workforce Single -Family Homes TOTAL: 384 TOTAL: 35 Residential Development - Completed/Constructed Development Location Gardens of Dubuque 1895 Radford Road Kretschmer Lofts 895 Washington Street 1# of Units Use 150 Units Workforce Family Housing Apartment 148 Units Market -Rate Apartments Roosevelt West 1865 Radford Road 144 Units 1workforce Senior Housing Apartment Miller 4-Plex 3545 East Gate Court 4 Units Market -Rate Apartments Mount Carmel - Sisters of Charity Phase 1 1100 Carmel Drive 60 Units 46 Units 22 Units Skilled Nursing Assisted Living Memory Care Mount Carmel - Sisters of Charity Phase 2 1100 Carmel Drive 116 Units Independent Living Chadwick Block Apartments 249 W.1st Street 4 Units Market -Rate Apartments Old Prescott School 1199 Central Avenue 12 Units Market -Rate Apartments 1047 Bluff Street Apartments 1047 Bluff Street 2 Units Market -Rate Apartments 1398 White Street Apartments 1398 White Street 2 Units Market -Rate Apartments South Pointe Rowhouses Rolling Creek Lane 6 Units Market -Rate Townhomes 744 Main Street 744 Main Street 2 Units Market -Rate Apartments HG Apt LLC Apartments 2901 Central Avenue 18 Units Market -Rate Apartments Century Square Apartments 1504 Bies Drive 54 Units Market -Rate Apartments South Point Rowhouse jAutumn Ridge 4 Units Market -Rate Townhomes TOTAL: 494