The $20 million is urban renewal money called Tax Increment Financing (TIF) that has been set aside for affordable housing. There are certain restrictions on how TIF money can be used. The short-hand way we refer to those rules is “sticks and bricks” – in other words, TIF money can pay for costs related to building and construction. And it can only be invested within the boundaries of the Urban Renewal Area where it came from. In this case, that’s the Interstate Corridor Urban Renewal Area.
The money will be divided among the main priorities we heard from the community: increasing affordable rentals, creating opportunities for home ownership, preventing displacement (particularly among the elderly and disabled) through home repair programs, and acquiring land for future affordable housing development.
Creating Rental Homes: $4.5 million will be used to redevelop land on NE Martin Luther King Jr. Blvd (between Cook and Ivy) for affordable rental housing with family-sized units. We anticipate 40-80 new housing units from this investment, plus ground-floor commercial space to support neighborhood businesses.
Creating New Homeowners: $2.4 million will go towards Down Payment Assistance Loans (DPAL) to help an additional 40 households into home ownership over the next three years. Click here to learn about DPAL. Another $2.6 million will build 32 new affordable homes for purchase in the area.
Single Family Home Repair: $3.2 million will allow us to provide home repair funding assistance up to $40,000 for 80 households. Another $800,000 will fund 160 smaller grants for installing wheelchair ramps, grab bars, and other critical repairs so that seniors and those with disabilities can remain safely in their homes.
Land Acquisition: $3 million will be dedicated to this longer-term strategy, which protects properties from market rate development and reserves them for affordable housing.