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Housing Incentive Program Application Process

Competitive Grants (Conversion of units in an existing development)

Application Period: 12/18/2017 – 2/19/2018

Eligibility

Conversion of Existing Rental Units:

  • Must be located within the UZO (Urban Zoning Overlay)
  • Existing Rental Conversion Applicants will be entered into a competition to receive HIPP Incentive

Application Process

Owners/Developers can apply online beginning December 18, 2017. The submission deadline is February 19, 2018. The Mayor’s Office and other appropriate Metro departments will review applications and will submit a resolution identifying applications that meet the criteria and preferences described below including grant agreements signed by each owner/developer.

The review process will include review of the following information at a minimum:

  • Number of units proposed to be converted
  • Designated range of median household income(s) for affordable/workforce units
  • Existing market rental rates for comparable units
  • Estimated property taxes (See definitions for Opt-in/Conversion Rental Housing)

Preference will be given for projects providing the following:

  • Over 5 units of workforce housing (60 -120 MHI)
  • 2 bedroom units
  • 3 or more bedroom units

Additional consideration may be given to projects that provide the following:

  • Adequate pedestrian connection
  • LEED or other energy efficiency rating certification
  • Partnership with employers to provide employer assisted housing
  • Partnering with a nonprofit organization with a mission of affordable/workforce housing for management
  • Timeline of units available for leasing (within 3 months with first unit guarantee within 30 days of Metro Council approval)
  • Within a mixed-use development
  • Minority, Women, or Small Business Participation. For more information, visit Metro’s Business Assistance Office

Incentive Grants

The amount of the incentive grant will be the difference between the average rent for a market-based 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 of the affordability period. In no event shall the amount of the annual grant be greater than twenty percent (20%) of the real property ad valorem tax assessment for the calendar year for which an incentive grant is applicable.

The average rent for a market-based rental housing unit will be calculated on a square footage basis using the rent charged for the three most comparable unrestricted units within the same or, if there are less than three unrestricted in the same and comparable, development, as determined by the Mayor’s Office of Housing.

Grant Agreements

All agreements for affordable and/or workforce housing incentive grants to be funded by the Metropolitan Government shall expressly provide that the Metropolitan Government’s financial obligations are conditioned upon the appropriation of funds by the Metropolitan Council. The Metropolitan Government shall have no obligation to make an affordable and/or workforce housing incentive grant if adequate funds are not appropriated.

Grant agreements will cover 12 month lease agreements. Payments will be provided to the developer monthly upon invoice receipt and compliance with income verification standards provided by Metro’s contracted administrator and approval by the Mayor’s Office of Housing and the Department of Finance.

Apply for a competitive grant

Non Competitive Grants (New Developments)

Eligibility

  • Inclusionary Housing Ordinance (IHO) Applicants (BL2016-133)
  • New Multi-Family Construction
  • Owner-Occupied Units (For Sale)

Application Process

An application will be provided online for developers to submit their interest in participating in the program. The Mayor’s Office of Housing staff and other appropriate Metro departments will be notified for review.

The review process will include review of the following information at a minimum:

  • Number of units provided and range of income
  • Workforce units proposed comparable to market rate units
  • Location of proposed units
  • Proximity to transportation options, services, or employment centers
  • Partnering with nonprofit or is a nonprofit organization with a mission of affordable/workforce housing
  • Timeline of units on the market
  • Estimated property taxes (amount consistent with development pro forma provided to financial institutions)
  • Minority, Women, or Small Business Participation. For more information, visit Metro’s Business Assistance Office

Incentive Grants

The amount of the incentive grant will be the difference between the average rent for a market-based 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 of the affordability period. In no event shall the amount of the annual grant be greater than fifty percent (50%) of the difference between the annual post-development and pre-predevelopment ad valorem property tax liabilities for that property.

The average rent for a market-based rental housing unit will be calculated on a square footage basis using the rent charged for the three most comparable unrestricted units within the same or, if there are less than three unrestricted in the same and comparable, development, as determined by the Mayor’s Office of Housing.

Grant Agreements

All agreements for affordable and/or workforce housing incentive grants to be funded by the Metropolitan Government shall expressly provide that the Metropolitan Government’s financial obligations are conditioned upon the appropriation of funds by the Metropolitan Council. The Metropolitan Government shall have no obligation to make an affordable and/or workforce housing incentive grant if adequate funds are not appropriated.

Grant agreements will cover 12 month lease agreements. Payments will be provided to the developer monthly upon invoice receipt and compliance with income verification standards provided by Metro’s contracted administrator and approval by the Mayor’s Office of Housing and the Department of Finance.

Apply for a non competitive grant

For more information about the Housing Incentives Program, please contact Adriane Harris.