Since the City of Monticello completed the Breckenridge addition, it has held onto a pot of money designated for low-to-moderate-income (LMI) housing.
The city has about $16,000 to use toward an appropriate housing project.
During the Feb. 19 Monticello City Council meeting, Jones County Economic Development Executive Director Derek Lumsden proposed a joint project to the city.
Lumsden addressed the council, after having outlined the housing project in great detail via a letter to the city.
“JCED has been researching and working on the housing issues in Jones County for the last several years,” stated Lumsden. “One of the constant issues we hear from local businesses is that they are in need of workforce. Within the next five to 10 years, they expect most of their legacy employees to be retiring and there has not been a steady influx of talent into Jones County as the population has remained relatively stagnant over the last 20 years.
“All of the businesses concur that more housing options would help to some degree,” he continued. “If there were more housing options of a wider price range and selection, businesses are convinced more workers would be enticed to move to and stay in the community where they work.
“Noting some of the issues regarding housing, JCED has been working on a solution to offer a variety of housing to those entry-level workers who can be part of the workforce solution for the decades to come.
In 2021, JCED worked with Rep. Ashley Hinson on a Community Project Funding application. In 2022, JCED was awarded a $500,000 grant to fund LMI housing across Jones County.
“The goal will be to focus on a variety of housing, including new single-family homes, new multi-family dwellings, upper-story housing, Homes for Iowa program housing, developing clean lots, a buy-down agreement, hazardous clean-up, and more,” Lumsden continued in his letter. “The money can be utilized in a number of different ways to increase affordable housing throughout the county.”
In the past, Lumsden acknowledged that the City of Monticello used TIF money to incentive housing projects. A portion of that funding must be spent on affordable housing projects within the city.
“Most developers prefer not to build affordable housing because the margins are not as high as developing custom-built new housing,” Lumsden stated.
So, JCED is requesting the use of Monticello’s LMI set-aside funding to partner with JCED’s HUD (Housing and Urban Development) housing funding to develop these housing projects.
“All Monticello LMI set-aside funds would be used inside the city limits of Monticello.”
JCED is also requesting to partner with the City of Anamosa for housing projects as well.
“They (Anamosa) also have quite a bit (of LMI funds) sitting there,” Lumsden shared. “They may not give as much. It’s been sitting for a long time unused as well.”
Council member Mary Phelan asked if there was a match as part of the housing funds. Lumsden said there is no required financial match.
Council member Dave Goedken asked if the HUD funding could apply to upper-story housing projects like Monticello Main Street is looking at doing.
“As long as it’s developing new housing, yes,” offered Lumsden. “We can’t do currently occupied housing or owner-occupied housing.”
Lumsden said towns like Wyoming and Oxford Junction don’t have TIF districts, therefore don’t have LMI funding.
“So there, we’d use a little more HUD funding and hopefully some private landowners would work with us on a (housing) project,” he said.
The council approved the partnership request.