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NEDC seeks council approval to reserve LMI/TIF funds for downtown facade grant and affordable-home pilot
Summary
Nevada Economic Development Council requested $50,000 from the city's low- and moderate-income (LMI) tax-increment set-aside to match a planned $100,000 catalyst grant for facade and upper-story rental improvements and proposed a pilot to support construction of up to 10 single-family homes under $300,000.
Jordan, an economic development presenter, told the council the city’s LMI set-aside—funds required when tax-increment financing (TIF) is used without on-site LMI units—has a balance of about $400,000 and continues to grow with new subdivisions.
Jordan said the NEDC plans to apply for a $100,000 catalyst grant to improve the KPPM building at the corner of Jefferson and Lincoln Highway and requested $50,000 from the city’s LMI funds to serve as a state match for the application. “We’ll be requesting $50,000 from your LMI funds, that would be used as a state match in the application,” Jordan said. He said the building contains six rental units and the landowners agreed to maintain rents “at or below $820.80,” which Jordan said meets the 80% of fair-market requirement for one-bedroom units in Story County.
Jordan also proposed an owner-occupied new-construction pilot to support about 10 homes priced at $300,000 or below. The program would use LMI funds to buy down lot costs or provide down-payment assistance; NEDC would administer the program and impose a five-year deed restriction with gradual forgiveness: “20% of that grant would be forgiven on the anniversary date,” Jordan said, and any sale during the five years would require a prorated repayment to the city.
Councilmembers asked clarifying questions about eligibility and affordability. One councilmember said, “As a household of 4 myself … I would not buy a $300,000 house. I don't think I could afford a $300,000 house,” and Jordan acknowledged $300,000 would be the upper limit and that Dorsey & Whitney (city legal counsel) would need to clarify documentation requirements for using LMI funds.
Jordan said NEDC’s exec board has agreed to partner on the proposals and requested council direction to advance the two initiatives and negotiate a formal agreement between the city and NEDC. No final agreement or appropriation was approved at the meeting; Jordan said specific program documents and legal review by Dorsey & Whitney would determine final eligibility and administration.
If the council supports the concept, staff and NEDC said they will return with a formal agreement and documentation required by state law for use of LMI/TIF set-aside funds.
