advantage of other municipal-type grant programs. Manager Candlish said
as long as IDHA holds the second lead position, they can continue to layer
as many times as that lead organization deems necessary.
Trustee Robinson asked what the Village's role would be with these two
programs. Director Burch said the Village would provide education for
homeownership assistance and down payment programs. She asked if a
program could be developed to identify vacant properties and purchase
them and fix them for sale. Director Burch said staff have been thinking
about doing a program like that. She asked if there is a role for the Housing
Trust Fund (HTF). Director Burch said yes, it would allow flexibility.
She said she would like staff to come back with a suite of options that are
centered around affordable housing goals specifically with respect to
homeownership. She said she would love an advisory committee to come
together and help us figure out what to do zoning-wise. Manager Jackson
said staff can bring that back on its own. President Scaman noted the
strategic housing study also highlighted the idea of a zoning task force.
Trustee Parakkat said clarifying the goals and what this accomplishes for
us as a community is not clear and would be a great starting point. He said
the land trust model has tax implications. He asked if the equity portion is
taxable for the homeowner, which VP Kaufman confirmed. The land trust
does not pay taxes on the land. He noted that does not contribute to the tax
base of this community, which was confirmed. She noted a large
percentage of homes were not producing anything on the tax rolls when
they were purchased.
He asked how many affordable units are possible. VP Kaufman said it
started with 2-4 homes a year. It accelerates as you have success and
funding falls into place. He said it would be good to know the opportunity
cost to benefit between rental affordability and homeownership
affordability. Director Burch referenced two local developments providing
$1.7M once we netted out the fees that the Village is providing subsidies in
other ways. The Village has made substantial investments in the past in its
rental housing stock.
Trustee Parakkat said there is a price point to entering and staying in the
community and none of these incentives address that. Manager Jackson
said that has been prioritized in our Board goals and there is convergence
between this item, the strategic vision for housing, and our economic vitality
strategic plan. We want to broaden the tax base and reduce the tax burden
while honoring our values for providing additional supply for affordable
housing, rental, and homeownership. There is tension between our goals
and the question is how we manage those trade-offs.
Trustee Parakkat said he believes demand will outpace supply and our
ability to make the community affordable becomes a losing proposition.