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The Lincoln Neighborhood Redevelopment Project began in 2005, when the City was awarded three Congressional earmarks through the Department of Housing and Urban Development totaling $743,400 and a Community Development Block Grant through the Iowa Department of Economic Development in the amount of $483,560.
Constructed for single-family use, the Lincoln Neighborhood is filled with several large, stately homes that date back as early as 1870 - 1890, many of which are considered historically significant. In the 1960's this area was re-zoned to allow for multi-family uses. Because of this re-zoning, many of these homes have since been converted to multiple-family dwellings and rental units.
An overall disinvestment in the neighborhood has caused much of the housing stock to become deteriorated. The density has increased exponentially due to multiple families living in homes that were originally built for single-family occupancy. Compounding this problem is the lack of off-street parking and green space in the neighborhood.
A comprehensive approach has been taken in order to redevelop the Lincoln Neighborhood and return it to the single-family use it was intended to be. The goals and objectives of this project include:
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Improvement of the existing housing stock, including conversion to single-family residential use;
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Lowering the density of the neighborhood through acquisition and demolition of substandard structures;
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Construction of new affordable housing on in-fill lots, as available and as appropriate;
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Provision for additional off-street parking;
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Voluntary down zoning of the area to single-family residential use;
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Provision for additional green space.
LINCOLN NEIGHBORHOOD REDEVELOPMENT PROGRAM DESIGN STANDARDS (LNRP)
In order to ensure compatibility of new construction or rehabilitated structures within this neighborhood, design standards have been established.
Construction of new structures or alterations to properties in the Lincoln Neighborhood, which are financed in full or in part through the Lincoln Neighborhood Redevelopment Program, shall be done in a manner that is appropriate to the style and age of the building, as well as its neighborhood context. The historic character and integrity of older buildings should be maintained by repairing historic components to the extent feasible and using traditional materials and techniques.
All projects financed in full or in part through the Lincoln Neighborhood Redevelopment Program, shall be reviewed for compliance with these standards by the Department of Business Affairs and Community Growth.
Examples of components to preserve when feasible include, but are not limited to:
Front porches
Window openings
Door openings
Balustrades and Handrails
Ornamental features
Compatible paint/siding colors
Compatible materials
Original roof pitches and spans
ENTERPRISE ZONE
The Lincoln Neighborhood is located within the boundaries of Webster County's only certified Enterprise Zone. A developer who constructs or rehabilitates at least four single-family homes or at least one multi-family building containing three or more units within the Enterprise Zone is eligible for a refund of all sales, service and use taxes and a 10% state tax credit. For more information regarding the Enterprise Zone programs, please visit the Enterprise Zone Commission website.
TAX ABATEMENT
All qualified real estate is eligible to receive an exemption from taxation on the actual value added by the improvements. Two options are available:
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Sliding scale for a period of 10 years, ranging from an 80% exemption in year one to a 20% exemption in year 10, or
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100% exemption for a period of five years.
To qualify for this program, you must be at or below 110% of the area median income (AMI) as annually published by HUD. The price of the house you are purchasing is limited to $110,000.00 and must be a new construction or existing structure that meets all currently adopted City codes. This program will provide assistance of up to 20% of the purchase price, with a cap at $15,000.00. This money may be used for downpayment and/or closing costs, with homeowners securing financing for the balance of the purchase.
This is a 0% interest, deferred payment loan. The property purchased must remain owner-occupied by the applicant, and the loan becomes repayable at the time of sale, or when the property is no longer owner-occupied by the applicant. The City will file subordinate mortgage behind the primary lender.
To qualify for this program, the applicant's gross annual income must be at or below 80% of the area median income (AMI) as annually published by HUD. The applicant must hold fee simple title (deed) to the property, and have occupied the residence for a minimum of 6 months. The applicant must additionally be current with all mortgage payments, taxes, utilities, and have homeowners insurance. The property must be single family occupied and wholly residential in character.
The loan offered is a 5-year 0% interest receding forgivable loan, with 20% of the initial loan sum forgiven at the end of each year. For the duration of the loan, the property must remain owner-occupied by the applicant. The maximum assistance for this service is $24,999 per household - any costs over this amount are the responsibility of the homeowner. The rehab components of this program are: City code violations, energy efficiency, safety, lead hazards, and to minimize exterior maintenance.
The construction financing program is designed to enable local contractors to more readily obtain construction financing and reduce the costs of constructing a new home meeting project requirements. Prior to receiving approval for participation in the program, the contractor or developer will be required to submit to the City an application, a proposed project budget, construction plans, and evidence of the ability to obtain conventional financing.
The sale price of the home cannot exceed $110,000.00, which includes the price of the lot. The home must be a single family dwelling, and have been constructed in conformance with the Uniform Building Code, and the Iowa Energy Code (this eliminates manufactured housing.) Homes must be constructed to meet all City codes, and the project must meet all applicable local zoning regulations. The property constructed must be wholly residential in character, and be constructed within the City limits of Fort Dodge.
The Construction Financing loan provides 20% of necessary construction financing at 0% interest. Mortgage and promissory note will secure position. The loan becomes payable when the property is sold, or at the end of one year, whichever occurs first. The contractor is responsible for securing financing for the balance of the construction costs.
DEVELOPER REBATE
The City is offering a developer incentive in the form of a rebate for properties substantially rehabilitated and/or converted to single-family housing within the Lincoln Neighborhood. Upon completion, all properties eligible for a developer rebate must conform to all currently adopted City codes, including but not limited to Building and Maintenance codes, as applicable. Conversion of property to single-family use shall also be required, if applicable.
Developer shall invest a minimum of 25% of the assessed value of the property into the rehabilitation project. LNRP Design Standards will be employed to ensure compatibility with the surrounding properties and the neighborhood as a whole. All plans must be pre-approved and finally inspected by the City to be eligible for the developer rebate.
Developer rebates shall be calculated based on 20% of the total investment into the project, with a cap of $15,000.00 per property. Total investment shall include the lesser of the appraised value or the purchase price plus all documented hard costs of rehabilitation.
Applications will be reviewed based on the following criteria: condition of the structure, visibility, contribution to single-family marketability, economy of scale (ability to assemble groups of parcels), occupancy, and budget. Additionally, new buyers of rehabilitated and/or converted properties are eligible to apply for down payment assistance.
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