Story County seeks direction to launch up to $2M LMI housing support program using FY27 TIF funds
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Summary
Staff asked the board for direction to bring policy changes next week to run a two-year, up-to-$2,000,000 LMI housing support program (reimbursement basis) using FY27 TIF funds; cities would apply and must provide a 25% match. The board directed staff to return with formal documents and outreach plans.
Story County planning staff asked the Board of Supervisors on April 14 for direction to formalize a low- and moderate-income (LMI) housing support program that would use FY27 urban renewal (TIF) funds. The proposal frames up to $2,000,000 as a not-to-exceed figure to support affordable housing activities over a two-year window; staff emphasized funds would be distributed through a city-led application process and on a reimbursement basis.
Leanne Harder, who led the presentation, described three program elements under consideration: (1) new construction of LMI units (for-sale or rental; single-family or multi-family), (2) rehabilitation of existing LMI units, and (3) purchase of lots for new construction. Staff proposed allowing a city to submit up to three applications (rather than only one per city) and requested a 25% local match from applicant cities. The county would require an address or parcel number for any application in order to link awards to specific properties and to verify compliance with LMI requirements.
Staff acknowledged several implementation questions remain: whether previously conceived projects could be converted to include an LMI component, how quickly certified funds would be available (funds would be certified by December 1 as part of the county’s annual process and would operate on a FY27 reimbursement basis), and how administrative verification of LMI eligibility would be handled. The board discussed timing, whether the $2 million is achievable within two years and the mechanisms to return or reallocate funds if take-up is low; county staff said unused funds would be subject to reversion procedures unless the board amends the plan.
Supervisors voiced support for bringing the program back for formal action and outreach; staff said they would present policy amendments for the board’s formal approval next week and then begin outreach to cities through the county’s economic development partners and the Story County Housing Trust. The board did not vote on funding at this meeting and directed staff to return with the formal program documents for adoption.
