§ 2.213.020. Incentive grants for new units.

A.

The metropolitan government may make incentive grants to qualified developers to assist with the development of new affordable and/or workforce housing within the boundaries of the metropolitan government. Incentive grants may be made both for rental developments and owner-occupied units. Such grant funds shall be disbursed on a monthly basis.

1.

Rental developments. Owners/developers of new construction rental developments, including developments under construction at the time of application, within the UZO or along a multimodal corridor designated in the Major and Collector Street Plan, excluding Expressways, Freeways, and Ramps may apply for a workforce and/or affordable housing incentive grant. The amount of the incentive grant will be the difference between the average rent for an occupied unrestricted rental housing unit and the average rent for an occupied affordable or workforce housing unit multiplied by the number of occupied affordable or workforce housing rental units for the duration that housing rental units remain affordable or workforce housing. The average rent for an occupied unrestricted rental housing unit will be calculated on a square footage basis using the rent charged for the three unrestricted units within the same development that are most comparable to each individual affordable or workforce housing unit. For purposes of this section, "average rent" includes all ancillary fees charged to all tenants of the development, including parking fees, application fees, association fees, and charges for amenities.

2.

Owner-occupied units. The amount of the incentive grant will be a one-time payment of ten thousand dollars per unit for properties located outside of the urban zoning overlay (UZO) district, and twenty thousand dollars per unit for properties located within the UZO or along a multimodal corridor designated in the Major and Collector Street Plan, excluding Expressways, Freeways, and Ramps. All grants for owner-occupied units shall be conditioned upon the recording of deed restrictions with the register of deeds ensuring the units remain designated for affordable and/or workforce housing for the duration provided in the grant agreement. The form of the deed restrictions shall be established in the grant agreement.

B.

The maximum amount of a grant to any one qualified developer of affordable or workforce housing rental units shall not exceed fifty percent of the difference between the annual post-development and pre-development real property ad valorem tax assessment for the calendar year for which an incentive grant is applicable. In the event that grant payments for any calendar year exceed the maximum amount, the director of finance, in consultation with OEOE and the grantee, is authorized to take corrective action in accordance with the written policies and procedures.

(Amdt. 2 to Ord. BL2016-342 § 1, 2016; Amdt. 1 to Ord. BL2016-342 § 1, 2016; Ord. BL2016-342 § 1, 2016)