Housing Incentive Program
Housing Incentive Program Application
Housing Incentive Program Policy
Highlights of the new policy include:
- Development may include single family (including condos, townhomes, cottage courts, twin homes) and duplexes
- Developer must propose a minimum of 5 single or 10 two-family dwelling units requiring public infrastructure to be eligible for the policy
- Eligible project costs include water and sanitary mains and laterals, street and storm sewer construction, and detention basins and storm water facilities
- 2019 applications are due by Monday, October 7, 2019 at 4:30 pm in the Development Services Department in City Hall
- After 2019, applications would be due on the last Monday in July
- The Board of Public Works would review and approve applications
- Prioritization of selection projects would be based on the following:
- Estimated assessed value created
- Number of units developed
- Meeting the needs in the 2019 Housing Study update
- Opening up additional land for future development
- Successful applications would require a Development Agreement
- Developer’s responsibilities including the following:
- City Engineering fees deposit at time of approval
- Guaranteed minimum assessed value to be generated within 5 years
- May not restrict builders. Lots remaining vacant after 3 years of street construction must be available for sale and the sale price after 3 years may not exceed 10% over the fair market value of the lot
- Paying assessments as set by the Development Agreement within the required timeframe in the Housing Incentive Program policy
- Installation of other utilities such as electric, street lighting, gas, cable, telephone, etc.
- Determine assessment
- Engineering
- Administer bid process
- Award and manage construction
- Construction Administration and inspection of infrastructure
- Payment
- Developer will be responsible for paying for 10% of the total eligible project estimate upfront upon approval Development Agreement.
- City (including the EDB’s contribution) will contribute 50-60% of the project costs and will borrow funds
- The Developer will be responsible for the remaining costs through special assessments as unit are sold
- Developer would pay the remaining 30-40% of the eligible project costs, based on final construction costs, upon sale of a lot with improvement or dwelling unit sold if the land remains in common ownership
- Interest will accrue on the unpaid assessment balance at a rate that is 2% higher than the City’s borrowing rate, starting from the date of City borrowing
- All assessments must be paid in full, including interest, within 5 years of approval of the Development Agreement
- Estimated assessed value created
- Number of units developed
- Meeting the needs in the 2019 Housing Study update
- Opening up additional land for future development
- The City’s responsibility:
- Determine assessment
- Engineering
- Administer bid process
- Award and manage construction
- Construction Administration and inspection of infrastructure
-
Payment
- Developer will be responsible for paying for 10% of the total eligible project estimate upfront upon approval Development Agreement.
- City (including the EDB’s contribution) will contribute 50-60% of the project costs and will borrow funds
- The Developer will be responsible for the remaining costs through special assessments as unit are sold
- Developer would pay the remaining 30-40% of the eligible project costs, based on final construction costs, upon sale of a lot with improvement or dwelling unit sold if the land remains in common ownership
- Interest will accrue on the unpaid assessment balance at a rate that is 2% higher than the City’s borrowing rate, starting from the date of City borrowing
- All assessments must be paid in full, including interest, within 5 years of approval of the Development Agreement