The City Council is getting a presentation on Tuesday about the proposal;
Imagine my surprise after over a decade of me pleading with any city councilor or mayor that would listen, the city is exploring a plan to give no interest loans from $10-$30K for home improvement in the core (notice there is NO agenda or minutes from the October meeting. Was it cancelled?) From the Argus;
The Accessible Housing Advisory Board (AHAB) met earlier this month to discuss a housing action plan policy using Tax Increment Financing (TIF) to help alleviate housing costs in the coming years.
Usually, a TIF incentivizes developers to construct buildings and make other private investments on sites that without TIF funding would otherwise not be developed, according to Family Housing Fund, a housing information group in Minnesota. The TIF would mean long-term investment in certain neighborhoods and properties.
Recommendations coming out of the board, which brings together community stakeholders in Sioux Falls’ housing sector, will eventually move to city council for final approval and implementation of housing solutions in the following months.
Homes considered for the TIF consideration and given priority for public housing help would include homes built before 1980 in the core of the city, which is bordered by Marion Road, 49th Street, Sycamore Avenue and 60th Street North.
Ironically the city admits that we have a lot of low wage jobs in this town, and more coming;
Part of the proposal also included a rental repair loan option, which would offer $10,000 per unit at five years, no-interest. In addition, homeowners could apply for up to $30,000 in no-interest, deferrable loans to repair their own homes to increase their value.
“It’s a great thing to offer as there’s still people living paycheck-to-paycheck and not able to keep their properties up,†said Brent Tucker, director of housing development for Affordable Housing Solutions.
Tucker said public to private funds help ease the burden of home costs, though the loans do come with heavy stipulations.
“To truly create affordable housing, we all need to work together, especially with Amazon, CJ Foods and others,” Tucker said. “Since they’ll bring in those folks who will make 80% of median income.”
Mr. Tucker is an awesome city employee, he helped me with a community development loan around 15 years ago and walked me through the process and was very helpful. I will warn people who apply, you have to do a lot of the leg work yourself, but it is well worth it. Getting an interest free loan to repair your home isn’t FREE money, but it kind of is. You can also apply the payment of the loan when you sell so you may not have to make any short term payments. If they factor in TIFs, you will also get tax rebates for home repairs.
While I could certainly go on a rant that this could have been done 2 decades ago (community development loans have been around for a long time, but there really isn’t a strong marketing push to get them), at least they are moving in the right direction now. I would suggest that the city hires some part-time people, like retirees to knock on the doors in neighborhoods that could use this program and help them with the initial application. There has to be outreach for this to work. The city will also have to pony up with curb and gutter, street repairs, water and sewer and updating street lights.
We will see how this plays out. Cross your fingers.