Mount Pleasant Area Development Commission Market analysis conducted - - PowerPoint PPT Presentation

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Nov 05, 2022 175 likes •346 views

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

SLIDE 1

Mount Pleasant Area Development Commission

SLIDE 2

 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

SLIDE 3

 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

SLIDE 4

 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

SLIDE 5

 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

SLIDE 6

 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

SLIDE 7

 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!

SLIDE 8

 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

SLIDE 9

 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

SLIDE 10

 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

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 Managers from Cargill moving to town

No homes available from $180k-$240k

 Developer building three homes in city-

wned 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!

SLIDE 12

 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

SLIDE 13

 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

SLIDE 14

 Relocation assistance  Garbage fee waiver  Free water and sewer hook-up  Free building permits  Pool pass  Golf course membership  Tax abatement  FREE LOTS!

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