Nichole Hansen Iowa Economic Development Authority
Today s discussion» Overview of Iowa Economic Development Authority (IEDA) Community Development Division & programs» Overview of programs that may assist with community development & housing projects Workforce Housing Tax Incentives Historic Preservation and Cultural and Entertainment District Tax Credits Community Development Block Grant Nuisance Property & Abandoned Building Remediation Loan program Community Catalyst Building Remediation program» Questions?
IEDA overview» Iowa Economic Development Authority (IEDA) consists of 3 divisions: Business Development Community Development Administration» Community Development Division includes: Community Investments Team (block grants, tax credits) Energy Team Downtown Resource Center Disaster Recovery
COMMUNITY DEVELOPMENT
Workforce Housing Tax Incentive Program
Workforce Housing Tax Credits» Provides transferrable income tax credits and sales tax refunds to housing developers who develop eligible housing projects for workers» Eligible projects include those that are: Developed on a brownfield or grayfield site Repair or rehab dilapidated existing housing stock Upper-story project New construction in a community with demonstrated workforce housing needs Unit cost cap of $200,000, or $250,000 for historic preservation project» Awarded $20 million in FY16, FY17
Workforce Housing Tax Credits» During 2017 legislative sessions, a Small Cities setaside was created for small communities. Available to qualifying housing projects taking place in Iowa communities except those located in the 11 most populated counties in Iowa $5 million of the $20 program allocation set aside for small cities Set aside allows a value cap of $215,000 per unit Greenfield development allowed 20% investment tax credit (compared to 10% under regular program)
Historic Preservation & Cultural & Entertainments Tax Credits
Historic Preservation Tax Credits» The State Historic Preservation and Cultural and Entertainment District Tax Credit program (HPCED) provides state tax incentives for the sensitive rehabilitation of historic buildings.» Commercial and/ or residential» The Iowa Economic Development Authority (IEDA) administers the program in partnership with the State Historic Preservation Office (SHPO) of Iowa.» Opening a new registration round October 2-16, 2017 Estimated $20 million in credits available
Iowa Community Development Block Grant (CDBG) program» Federal funds from the US Department of Housing and Urban Development» 2017 Allocation = $21.5 million Allocated among several programs» Every CDBG project must meet a national objective: Benefit to low-and-moderate income persons (70% of allocation or greater) Slum & blight elimination Urgent need» Eligible Applicants All cities under 50,000 population (including Cedar Falls) All counties City or county on behalf of non-profit entity
Proposed Allocation of CDBG Funds
Iowa Community Development Block Grant (CDBG) program» Water and Sewer Fund: Funds for public water and sewer infrastructure projects» Housing Rehabilitation: Funds for rehabilitation of owner- occupied housing for low-to-moderate homeowners» Community Facilities: Funds for community service projects (i.e. daycares) and storm water projects» Downtown Revitalization: Funds for downtown building façade improvements» Economic Development Set Aside: Funds to assist businesses creating/retaining jobs» Career Link: Funds to assist with job training for low-to-moderate income individuals. Funds may also help with employment-related transportation
Iowa Community Development Block Grant (CDBG) program» Most CDBG applications accepted annually (Water & Sewer applications are quarterly)» Economic development projects (EDSA & Career Link) are accepted on an ongoing basis as funds are available» IEDA looks for local matching funds in CDBG projects State Revolving Loan Fund (for Water/Sewer projects) USDA Rural Development (for Water/Sewer projects) Local housing trust funds (for Housing rehabilitation fund) Other local funds (TIF, bonds)
Nuisance Property & Abandoned Building Remediation program
Nuisance Property & Abandoned Building Remediation program» State loan program created in 2015» Provides loan funds to cities to address nuisance properties & abandoned buildings» Properties must be a public nuisance through abandonment, chronic building code violations or dilapidation that is hazardous to public health and safety
Nuisance Property & Abandoned Building Remediation program» Properties can be commercial or residential properties» Can assist with demolition or rehabilitation» No minimum or maximum loan amount» Program currently has approximately $5 million available. This will vary as loans are made & repayments made
Nuisance Property & Abandoned Building Remediation program» Loans only- program does not allow for grants» Loan terms vary from project to project» Interest rates from 0% to 3% interest. Terms may range from 1 to 5 years
Nuisance Property & Abandoned Building Remediation program» IEDA accepts applications on an on-going basis as funds are available» Cities may apply online at www.iowagrants.gov (instructions for applying are provided here)» Contact Ed Basch at IEDA ed.basch@iowaeda.com 515.348.6208
Community Catalyst Building Remediation program» Program rules are currently under legislative review» Provides grants to communities for the redevelopment, rehabilitation or deconstruction of buildings to stimulate economic growth or reinvestment in the community» Maximum grants: $100,000» 40% of funds will be awarded to cities with populations under 1,500» Strong applications will show the potential of catalytic economic growth in the community; improve appearances & safety; make use of underutilized property, exhibit appropriate design standards; and be well-funded.
Community Catalyst Building Remediation program» A thorough description of the Community Catalyst Building Remediation Program will be presented at 6 regional application workshops: November 9, 2017: Washington & Chariton November 14, 2017: Elkader & Hampton November 16, 2017: Pocahontas & Red Oak» contact Jim Thompson at IEDA 515.348.6183 or jim.thompson@iowaeda.com
Other Housing Resources» The Iowa Finance Authority administers a variety of housing programs. Includes programs for homebuyers, housing developers and communities.» For more information, visit www.iowafinanceauthority.gov» USDA Rural Development has programs available for homebuyers, housing developers and lenders.» For more information, visit www.rd.usda.gov/ia