HomeMy WebLinkAbout[07b] Housing IncentiveCITY OF ST. JOSEPH
W*V. cityof stjoseph.com
Date: January 15, 2014
Memo To: Members of the EDA
City Administrator Weyrens
Memo From: Cynthia Smith - Strack, MDG, Inc.
Administrator
Judy Weyrens RE: Housing Incentives
Mayor
Rick Schultz Background:
At the previous meeting Mayor Schultz inquired as to what follow up the EDA planned as a
Councilors result of the real estate roundtable discussion at the close of October. He noted interest in
Steve Frank offering incentives for new home construction remained on the part of local real estate
Bob Loso agents. Schultz specifically mentioned fee reduction and /or development partnering.
Renee Symanietz Osberg requested a break out of fees charged for new residential units in 2013 be provided
Dale Wick for the January EDA meeting as a means of discussing potential fee reduction.
EDA Attached please find a summary of fees applicable to each of the six new home permits
Doug Danielson issued in 2013. As evident they range from $9,200 to about $9,800 per home.
Steve Frank
Gary Osberg In addition I have attached an article from the St. Cloud Times indicating a "Build it in St.
Larry Hosch Cloud" program was allowed to expire in 2013 with the efficacy of the program
Dale Wick undetermined. It's noted Sartell and Sauk Rapids did not offer such a program.
Also attached is information from several smaller communities in greater Minnesota that
have offered fee reductions and tax abatement for home owners. The final attachment is a
program in the City of Perham offered in conjunction with local employers as a means of
inciting 'workforce housing'.
Request:
In order to focus in on potential incentives and promote productive discussion the following
discussion outline is offered for consideration. Please note this doesn't mean an incentive
program is being recommended. Also, please note if such a program would be offered it
would be not be funded by the EDA. If such a program is suggested presumably the cost
could be $50,000 to $100,000. Those funds would not be available for other uses (i.e.
extension of water and sewer to 94) in the future.
Public use of funds. Public expenditures can't be used to benefit private entities.
Typical public purposes include: removal of slum /blight, benefit to low /moderate
income persons, removal of urgent public threat, provide for the public's health,
safety, and welfare. The use of public funds for a public purpose must be kept in
mind when discussing incentive programs.
Benefittinci entity. An important component of any discussion about fee reduction is
what entity will be the beneficiary. For example will home buyers receive the direct
benefit for fee reduction? Could home builders constructing a spec home benefit, if
so should there be a mechanism to require savings be passed on to the end user?
Should real estate agents receive a benefit? Lot owners /developers? Apartment
owners? Is a clawback provision warranted?
III. Limits of the program. Should the incentive be targeted to only new construction?
What about demolition /reconstruction or major remodeling /additions?
IV. Program structure. Define the actual incentive. Will it be waiving of WAC /SAC?
Deferring WAC /SAC? Waiving of building permit fee (still have to pay inspector)?
Waiving of utility fees for a specified period of months? Tax rebates /abatement?
V. What are we trying to encourage? What is the program goal — new housing
construction anywhere, new houses being built on tax forfeit lots, construction of
move up housing, construction of starter houses, and /or construction of work force
housing?
VI. How will the program be rolled out? If to builders, how are they notified. How do
you make the program fair and free (first come first served, lottery). How do you
target the benefit to achieve policy goal?
On a related note, I verified with the City of Sartell the action taken in November of last
year to `simplify' the development process was to provide for administrative review of
multiple family, commercial, and industrial building site plans. This is an action the City of
St. Joseph took a few years ago.
Action:
This item is for discussion purposes only.
3�
C w N O N O O to 0�
O Z
d H t0
A
fb vi
N M N N N N N N N N N ,� N O
n O O O O O O O ' O O O O O rl O O O N C
p w
3 p w w w or w w w w w w w w w o w w w
Z
0 0 0 0 o o 0 0 0 0 0 0 0 0-
207C 0 0 0 C O � O O O M 0 0 0 , O O p aq
W W w 0 00 00 al In w w 00 m W 00 to w O O A S
0J
cz 3 0°
N
O
a r N N N N t+ N C O a~i O O Vii Q
�D »
4 O N O O O 7
p
A O 000 O O O
N N W A D
In tD tp In l0 W lD tD tD V tD lD W ID w 00
N to to tD to to 00 to In p to V1 tD to /.il p
oo O O ID O O w O O tD O O tD O O tD
V O ID O O w O O w O O ID O O ID
0
a1 t w to to
li 0088 88 8 88 888 0 N
N W
W
W
W
N
00 to
A
lAn
O
V
N O
a1
O
O
n
N O
W
O
O
O
A
?
A
A
A
*
{
8
Vf
iR Vf
O
O
O
O
O
8
O
to Lf lA
N
to lA to
In
O
O
O
N
N
N
N
N
* W
W
W
W
w
O
O
O
O
O
8
- -
N
In
-- W
W
N
O O
N
O
O
8 O 8
O O 8
N 0a
3 3
Al
3�
W
w
W
W
w
A
8
0
0 0
8
Vf
iR Vf
�A
to L1 Vf
to
Vf Lf Vf
N
iA to Vf
N
to Lf lA
N
to lA to
In
A �+
-�O
lD
tD
tD
�O
tD
t0
tD
l0
tD
� C
00
Ln
V
N to
N
F -
O
- -
N
In
-- W
W
N
�
N
0n 0 w
O O to
O
O O O
FA
O O r
A
O O A
w
w
d d
N
IN V
A
O O A
a1
O O a1
A
O O A
O O A
A
0 Pb
to
O O lo
w
O O to
`°
w
00
w
a1
O 01
tD
O O tD
V
00 V
tD
80 t'D
'o
8 8"
a
T
a
o_
a
?
v
0 m
It- m C
+ +
+
+
+
or
w
a ° n
Gl
w
z
o 0
n
0
n
0.
z
O
m
s
s
5
v
a
w
m
F
ao
o
w
�'
D
a
m
m
D
m
n
m
on
v
a
ao
H
m
N
r
s
H
3�
http: / /www.sctimes.com /article /20131216/NEWSO1 /312160072/St- Cloud- ends - home - construction - incentive - program
5t. Cloyl ends home construction incentive program
*Watt n by Kari Petrie
Jan. 07 b e C SCtlrYteS.COm
Taking a wait and see approach, the St. Cloud City Council decided Monday to allow a housing incentive
program to sunset.
The Build It in St. Cloud program was created to encourage home construction by reducing single - family
housing permits by $1,500. The program is set to expire at the end of the year, and the council has been
discussing whether to continue it.
Council member George Hontos, who came up with the program, said he was comfortable letting it end.
He said they should let developers come to the city if they see a need to spur more building and
brainstorm ideas.
The program started in July 2012 by reducing single- housing permits by $1,500 for the first 35 permits. By
the end of that year, 35 permits were issued.
In January, the council voted to extend the program from March until September with a new focus on half
of the 30 permits being used for foreclosed lots. Of the 22 issued during that time frame, seven were for
foreclosed lots.
In a report to the council, city staff say they have no reasonable method to see if the program was
effective.
Council members have said that they want to focus more on encouraging people to buy foreclosed lots.
Foreclosed lots become a burden to the city because special assessments remain unpaid for those lots.
From 2007 to 2012, the city had more than $6.8 million in uncollected special assessments.
When foreclosed lots are sold, the city reassesses unpaid special assessments. In 2011, 301 lots were
put on sale at auction and 87 were sold. Another 115 lots will be put up for sale in 2014.
Follow Kari Petrie on Twitter @karipetrie.
Page 1 of 1 Jan 08, 2014 03:15:13PM MST
I na I
NEW Con
_� IVA X11
City of Eyotc Now
xtion -Dome usiness Incentives
Total Permit Savings
$29250
Residential
& Commercial
New Construction
fees waived.
townj°VInmall 0
small school l S
sizes for your
chlldrenl
It 0
Development, Land and
Lot Opportunities Available
Contact our EDA Director for site selection & additional info
City Hall - Eyota 507 - 545 -2135
eyota,govoffice,com
37
• R2: Multi Family Site
• 13 Acres for Partially Developed
Residential Lots
• 28 Acres Zoned Industrial
w /Rail Access
• Ask about the NEW Keefe addition
• 3 Single Family Lots,
priced mid 20's
• Townhome Lots $7,500
Favorable Financing Terms
EASTW00
BANK
Chris Wooner
Eastwood Bank
507 - 252 -2805
� Premier
!slow Banks
Gene Miller
Q Premier Bank
_ 507 - 285 -3853
Fin— County Seat
Page 1 of 5
2011 Preston Housing Incentive Preston, MN Economic Development
Contact: Cathy Enerson, EDA Director www.prestommn.org 507- 765 -2153
#1 New Construction - Resid
Waive Building Permit Fees: per structure
Waive Utility Hook -Up Fees: per unit
City Utility Credit ($75.00 per month for 5 Months): per unit
Preston Public Utility Energy Rebates
$1,000 Preston $'s When construction is complete: per unit
Free 1 year family golf membership at Preston GC
Two Free City Trees (Tree city Program)
(Trees per unit unless multi- housing, then one per unit.)
ential, City of Preston
Value: Up to $60.00*
Value: Up to $675.00*
Value: $375.00 **
Value: Up to $500.00
Value: $1,000.00 **
Value: Up to $475.00 **
Value: Up to $200.00*
total Value: Up to $3,285.00 Limited to 3 applications.
*Program is available to Spec home builders
** Program is available to Spec builders. However these funds are only reserved for the property buyer for 1
year from EDA approval.. The golf membership, Preston bucks and city Utility Credits are not intended for
the spec builders use but rather the buyer of the property.
#2 Purchase Existina Residential, New Residents to Preston
City Utility Credit ($50 per month for 5 Months)
Value: $250.00
$300.00 Preston Bucks
Value: $300.00
City Utilities Energy Audit Rebate
Value Up to $75.00
Free Family Pool Pass
Value: $90.00
Free Family Golf Membership (Preston GC)
Value: $475.00
Two Free City Trees for the property
Value: Up to $200.00
Preston Public Utility Energy Rebates
Value: Up to $500.00
Total Value: Up to $1,890.00 Limited to 3 applications
#3 Housing Improvements (not including Decks or shingling:
Minimum Investment $5,000)
Waive Building Permit Fees up to: Value: $30.00
City Utilities Energy Audit Rebate Value: $75.00
Preston Public Utilities Energy Credit Value: Up to $500.00
City Utility Rebate ($45.00 per month for 5 months) Value: $225.00
$300.00 Preston Bucks Value: $300.00
Two Free City Trees for the property Value: Up to$200.00
Total Value: Up to $1,330.00 Limited to 3 applications
Applications found on page 5 of this PDF document
3�
Crookston Development Authority:: The City of Crookston Housing Incentive Program Page 1 of 1
Maps . Two year property tax abatement. The abatement can be
Job Opportunities taken up front for down payment assistance, or over a two
year period of time.
Free Water Hookup.
• Free Sewer Hookup.
• Free Two Months Water, Sewer and Garbage.
• Free swimming pool pass.
• One $50 Park & Recreation Certificate Per Child.
. 50 Free Garbage Bags.
. 4 Free Recycling Bins.
Boulevard Trees.
Ends December 31, 2013
For more information contact:
Angelica Hoeffner at (218) 281 -4503 - City Hall
510 County Road 71, Crookston, MN 56716 : 218 - 470 -2000 : 218 - 470 -2005 FAX
(c) 2005 - 2006 Crookston Housing & Ecnomic Development Authority. All Rights Reserved. I Disclaimer
) ,1
http: / /www.crookstoneda .com/housing/index.htm 1/8/2014
ltOlt5lNd 3 ECONOMIC
DEVELOPMEN yt''`= °`
Starch our aks
Search
OOI�
About CHEDA
Links I Video I Contact Us
Home Housing
his Year's Incentives
9
Evergreen Estates
Our Community ter_
Eickhof 3rd Resubdivison
News & Current Projects THE CITY OF
Other Developments
Available Property
Business Assistance
•
--
Housing
••
2013
Housing Incentives
New Construction
DIRECTORY
OakCourt - Assisted Incentives
gtolonvillIng
Living
Section 8 Voucher The City of Crookston is offering a Housing Incentive Program.
Useful Housing Links Purchase any privately owned lot withing city limits and receive
these exciting incentives.
Training Opportunities
j al
Maps . Two year property tax abatement. The abatement can be
Job Opportunities taken up front for down payment assistance, or over a two
year period of time.
Free Water Hookup.
• Free Sewer Hookup.
• Free Two Months Water, Sewer and Garbage.
• Free swimming pool pass.
• One $50 Park & Recreation Certificate Per Child.
. 50 Free Garbage Bags.
. 4 Free Recycling Bins.
Boulevard Trees.
Ends December 31, 2013
For more information contact:
Angelica Hoeffner at (218) 281 -4503 - City Hall
510 County Road 71, Crookston, MN 56716 : 218 - 470 -2000 : 218 - 470 -2005 FAX
(c) 2005 - 2006 Crookston Housing & Ecnomic Development Authority. All Rights Reserved. I Disclaimer
) ,1
http: / /www.crookstoneda .com/housing/index.htm 1/8/2014
New Housing Developments - Dilworth, MN
Page 1 of 1
Home
City Officials City Departments
City Information
Parks and Recreation
Community Information CodeR
Council Meeting Minutes
City Jobs
City News
Helpful Links Calendar
Flood Insurance Rate Map
In Community Information:
Businesses
DGF Public Schools
Directory of Universities and
Colleges
Local Churches
Loco Daze Celebration
New Housing Developments
Summerwood Addition
Local Organizations
Additional Service
Information
Wheels for Wishes
Check out the Woodbridge / East View Addition
Looking to build a new home in an established neighborhood?
Eastview Land Development has many single family or twin home lots
available. This growing development is located in the
northeast corner of Dilworth. For more information call Rick
Halvorson at 701 - 238 -1709 or visit the website at
www.woodbridgeaddition.com.
The City of Dilworth is also offering the following incentives for any
new home built in the city in 2013:
- TWO (2) YEAR TAX ABATEMENT ON CONSTRUCTION
STARTING
2013 - NO CAP ON VALUE
(contact City Hall @ 218- 287 -2313 for details)
- FREE City Utilities ($2,000 or for two years, whichever comes first)
(Building permit must be issued on any vacant lot in the city in 2013)
- FREE Family Pool Pass (for two years)
(Building permit must be issued on any vacant lot in the city in 2013
*City Incentives are not transferable from one homeowner to another.
When sold, all remaining incentives that exist at the date of closing,
will terminate at that time. (This does not include a contractor selling
real estate to a homeowner unless the contractor homesteade the
property prior to the sale.) Property incentives, as ilsted above, are
available only upon the issuance of a certificate of occupancy (CO).
For your convenience the Lot Prices & Specials along with plat maps are attached
below. The available lots are listed on the spreadsheet.
Woodbridoe 3rd addition Covenants.pdf
Woodbridge 4th addition Covenants.odf
Woodbridge 5th addition Covenants.odf
P.O. Box 187, 2 1st Avenue SE, Dilworth, MN 56529
Home I City Officials I City Departments I City Information Parks and Recreation I Community Information I CodeRED I Council Meeting Minutes I Citv
Jobs I City News Helpful Links I Calendar I Flood Insurance Rate Map
Powered by GovOffice.com
http : / /www.dilworthcitymn.com/index. asp ?Type= B_BvASIC& SEC= %7B42EC2106 -E502- 4161 -83... 1/8/2014
Welcome to LeRoy Minnesota!
Page 1 of 1
Home Government Community Businesses Tourism Recreation Contact
Housing Incentives for new home construction include
No hook -up fee for water and sewer
Waive the building /zoning fee
• Two trees donated by the LeRoy Tree Board
$1500 LeRoy Dollars
Guidelines
Eligible applicants are first -time residential
homeowners to the City of LeRoy and builds a new
home within the LeRoy city limits.
Also in this section:
City Officials
Services
Economic Development
Housing Incentives
O� I
J
V
The City of LeRoy
122 IN Main Street, Box 359 1 LeRoy, Minnesota 55951
(507) 324 -5707 Icityclerkovisitleroy.com
7
http:// www. visitieroy .com/houseincentives.html 1/8/2014
Growth Incentive Program
CIT
OF
J, MIA
,
V
st
ritage, Bright Future
Starting January 1st, 2014 the First 3 New Single Family
Homes constructed in the City will receive $10,000 towards:
* Free WAC & SAC (value of $9,700)
* Free 2nd Water Meter (value of $300)
Details:
WAC & SAC fees to be paid by the City, if the following
conditions are met
$160,000 minimum home value
Building permit must be issued by 12/31/14
Free 2nd water meter
For more information contact City Hall (320) 558 -2428 or email
svergin @clearwatercity.com
f� Z
Employer Assisted Housing Program - City of Perham
Home
The City
City Council
Resident Services
City Departments
Business Development
Ordinances
City Calendar
Helpful Links
For City Employees
In City Departments:
City Staff Directory
Administration
Building and Zoning
Economic Development
Finance
Airport
Fire & Rescue
Police
Housing
Tax Increment Financing
Employer Assisted
Housing Program
Library
Liquor Store
Public Works
Search
Go
(!!!Full Site
C1 This Section
Search Tios
Pagel of 3
EM Assists Housing Nvm
Employer Assisted Housing Program
The Employer Assisted Housing Program is
*� designed to provide gap financing to those
who want to build a new home, purchase a
newly constructed home, or purchase a
previously owned home within the City of
Perham. Based on the requirements, you
may be eligible for up to a $15,500
- financing package! Gap financing is then
utilized for closing costs and to lower the
purchase price of the home.
Financing packages are a combination of loans and grants. The loans that are
provided are in the form of a 30 year, 0% interest deferred second mortgage
that are due when the home is sold, the buyers fails to occupy it as a primary
residence, or the first mortgage is satisfied.
The HRA of Perham would like to thank KLN Family Brands and Arvig for their
support in providing this program!
How Does it Work?
Employers in the Perham community have donated funds to the HRA of
Perham. The HRA utilizes those funds and various other housing funds to
create financing packages based on eligibility (all programs are subject to
funding availability):
HRA of Perham Employer Assisted Housing Program
• Perham HRA provides a loan of up to $3,000 per homebuyer. You must
be employed in, or within 1/2 mile of the City of Perham and obtain a
letter of support from your employer.
KLN / HRA of Perham Employer Assisted Housing Program
• If employed at KLN Family Brands (Barrel 0' Fun, Tuffy's, Kenny's
Candy, or Nutheads) and obtain a letter of support from them, the
Perham HRA provides a loan of up to $3,000 per homebuyer.
Greater Minnesota Housing Fund (GMHF)
• Greater Minnesota Housing Fund (GMHF) provides a grant of up to
$2500 per homebuyer. GMHF guidelines will need to be met. In addition
to one of the loans packages listed above, the incentive plan totals
$5,500.
KLN Family Brands (This program is not administered by the HRA of Perham)
i�
http: / /www.ci.perham.nm.uslindex.asp ?Type= B_BASIC &SEC= { 3613ECEC- B52D- 4FF6- ABC9 -9... 1/8/2014