Mount Pleasant Area Development Commission
Market analysis conducted by a real estate research firm City funds used for development infrastructure Private-sector finance partner(s) Direct and indirect benefits to homebuyers Quality-of-life amenities in development plan
Allocation 1-$600,000 (City, county, utilities, banks) Grants-$15,000 New single-family residences ◦ $110,000-$195,000 (appraised or actual) Jobs trust confirms grant before lender commits Finance through participating lender and get additional $2,500
60+ buyers helped so far ◦ First-time buyers ◦ Empty-nesters ◦ Locals, nearby residents and out-of-state Second round of funding — $600,000 Opening a large tract for additional development “It has accomplished what it intended and in a shorter period of time.” Kathy Evert, Iowa Lakes Corridor
3,500 people 24.1% population growth Housing-Public/Private ◦ City, economic development group, developers ◦ Demand in all sectors ◦ “If you build it, they will come.” How it works ◦ ED group owns ground ◦ City pays 51%-74% of development cost; finances rest ◦ As lots sell, city is repaid first Ten years — 138 houses, $24.7 million assessment
Razed “highway shed” Auctioned 8 lots for $8,000 Builder required to: ◦ Begin construction within 30 days ◦ Home not to exceed 1,300 SF with 900 SF garage ◦ Home price not to exceed $155,000 ◦ Some builders abused program Buyer Incentives ◦ $3,000 grant with lot purchase; $5,000 zero interest loan upon home completion ◦ $2,500 LMI grant for existing home purchases
1/3 of homes single occupant Response ◦ City-$750k G.O. bonds for infrastructure to open 20+ lots ◦ CAEDC bought 10 acres for 18 additional lots ◦ Cherokee State Bank-$5 million at 2% for developers to construct spec homes ◦ Vision Iowa-$40,000 grant for biking and walking trail Incentives ◦ Free utility hook-up and building permits ◦ ALL LOTS WERE FREE IN 2013!
Cargill & CJ — 364 jobs ◦ Workers prefer new housing Response ◦ Housing assessment ◦ ‘Why Fort Dodge?’ forums ◦ Spec Home stimulation program GFDGA plan sponsor Lot owner defers payment until home sale Lenders defer interest on spec home loans Selected builder conforms to established guidelines City abates first $75,000 in improvements Homes sell for $247,500-$289,000
Humboldt County Housing Development Corp. – 501(c)(3) ◦ City, county funding; revenue from prior projects Subdivisions-Five so far ◦ Eagle Ridge-most recent Phase 1: 9 lots, $18k-$58k, SOLD OUT Phase 2: 13 lots, $27k-$50k, four remain HCHDC purchased land with RLF money TIF for infrastructure SF requirements = $350k avg. price
Building Trades ◦ One home per year ◦ Selling price $200k-$240k (includes lot) ◦ Realtors discount sale price ◦ 12 homes so far Lower-priced homes ◦ HCHDC purchased trailer park, installed sewer line ◦ HCHDC paid for 4 homes, developer 4 homes ◦ Sale price $190k-$210k Also, beautification campaign, relocation assistance, workforce housing
Managers from Cargill moving to town ◦ No homes available from $180k-$240k Developer building three homes in city- owned subdivision ◦ Priced less than $240,000 ◦ 1,500 SF m/l; nice finishes; unfinished basement; 26x26 garage HOMES DID NOT SELL IN SIX MONTHS, SO CITY BOUGHT THEM!
Grants for exterior improvements ◦ Restricted to single neighborhood ◦ Up to $5,000 match for landlords ◦ $10,000 grant for owner-occupied Must stay in home for a specified period ◦ Paid with TIF dollars ◦ Program closed this year after limited participation Also, energy efficiency rebates, down-payment assistance
10-year tax abatements Green County — Home-Base Iowa ◦ Waive VA loan closing costs; $2,000 relocation support package; central housing website; 3-year, 100 percent property tax abatement NE Community Action (Missouri) — ASPIRE ◦ Prisoners build modular homes, sold to LMI families for $39,800 Great River Region — www.southeastiowahousing.com New London — 50% rebate on city-owned lots
Relocation assistance Garbage fee waiver Free water and sewer hook-up Free building permits Pool pass Golf course membership Tax abatement FREE LOTS!
Kiley Miller Mount Pleasant Area Chamber Alliance 124 South Main Street Mount Pleasant, Iowa 52641 kmiller@mountpleasantiowa.org
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