The Action Plan

The goals of this action plan are designed to help:

  • Address the housing gap of available options
  • Attract developers with innovative incentive packages to meet the cost gap and reduce risk
  • Assist home buyers with down payment costs and financing options
  • Alleviate blighted and abandoned properties
  • Address tax delinquent properties

Short Term Action Items

  • Develop a RLF
  • Create an employer-funded down payment assistance program 

Long term action items

  • Blighted and abandoned property remedy plan
    • Establish ordinances
    • Create priority properties list
    • Establish best practices
    • Employ a shared enforcement officer
    • Open for home owners to apply for assistance program through RLF
  • Tax delinquent property plan
    • Determine how the city/county can acquire tax delinquent land to be used for future development
1

Create county-wide development revolving loan fund

Goal: Bridge the gap between the cost to build and the cost to sell. In order to achieve affordable rental and/or new home prices, the county needs to work with developers to create a revolving loan housing program to address the issue head on.

The goal of this fund is three-fold:

1) Incentivize developers to build in Wayne County.

2) Create a self-sustaining fund

3) Achieve enough success to make the program obsolete

Goal: Spur development of 172 general occupancy units

64 single family homes

108 modern multi-family units

After this, the market should take over and there won’t be a need for additional incentive packages. 

Single family homes 

0 units

For a 3 BR house to be sold for under $180,000: In order to create new, in-fill lot housing, developers are short an average of $25,000* per housing unit. 

*This number can drop if the land is donated and/or owned by the municipality. 

Estimate: 0 infill lots
Need $ 0
per infill lot to fill the cost gap =

$1.05M total need for infill

Estimate: 0 non-infill lots
Need $ 0
per non-infill lot to fill the cost gap =

$1.32M total need for non-infill

Total needed to fill cost gap for single family homes: 

$ 0 M

Market rate rentals 

0 units

The average cost to build a 12 unit apartment complex is $2.1M*.  

Shortage for a new multi-unit complex is $400k each.  

*This number can drop if the land is donated and/or owned by the municipality. 

Estimate: 9 complexes of 12 units each

To get rents to be:

  • 1 BR $500/mo (or less)
  • 2 BR $700/mo (or less)

Total needed to fill cost gap for apartments: 

$ 0 M

TOTAL TO FILL COST GAP FOR BOTH SINGLE FAMILY HOMES & RENTAL UNITS: 

$ 0 M
1A

Revolving Loan Fund Process 

The fund is meant to be a revolving loan fund, meaning that it will perpetually put dollars back into the fund as it grows.

The fund is also meant to sunset after a period of time, ideally the market has met the demand due to the success of the fund over a number of years. For this fund we are recommending a sunset in 6 years (2025) with a realignment of funding every 2 years.  

Total needed for RLF: $5.97M  

  • Developer meets pre-determined criteria for eligibility for the fund  
  • Developer asks for gap financing through the application process
  • 70% of dollars traditional loan to Developer at a 1% interest rate over 10 years.  
    Total available $4.18M. This will be recouped in 10 years plus interest 
  • 30% of dollars are a forgivable loan to Developer over 10 years. The Developer must stay with the project for 10 years or these funds will need to be repaid in full at 1% interest if sold before then.  
    Total available $1.79M. This money will not be returned by the developer but you will have immediate development and an increased tax base so the costs will be more than recouped.
  • Developer has 6 months to begin/break ground on their plan once the dollars are granted 
1B

How to find the money for the RLF

Approximately $1,194,000 needed in total per year (For 5 years).

This fund will be created with resources from the cities, private sector, the county and the state.   

Cities contribute $298,500 each per year = $1.49M total

City Name  Population (2010)  % Population  Annual investment  
CLIO  80  2%  $5,970 
ALLERTON  501  13%  $38,805 
HUMESTON  494  13%  $38,805 
LINEVILLE  217  6%  $17,910 
PROMISE CITY  111  3%  $8,955 
CORYDON  1585  42%  $128,355 
MILLERTON  45  1%  $2,985 
SEYMOUR  701  19%  $56,715 
TOTAL Annually      $298,500 

Remaining:

$4,477,500

1/4, Private

$1.19M over 5 years ($223,875/year)

1/4, County (Bond)

$1.19M over 5 years ($223,875/year)

1/4, State*

*Contribution contingent on cities, private, and county all contributing

$1.19M over 5 years ($223,875/year)

1/4, USDA/HUD

$1.19M over 5 years ($223,875/year)

2

Down payment assistance program

Most housing needs are in rentals because the cost to purchase isn’t attainable for most of the local workforce. Another excellent option to incentivize home ownership, settling into a community and reducing workforce turnover is to work with employers to create down payment assistance programs. As the market gets more competitive for workforce, this is additionally an excellent benefit to an employment package.

How it works:  

  • Employers pledge an annual amount. For example: Year one = $100,000  
  • Creating 10 slots for down payment assistance at $10,000 each 
    This could be any amount desired. $10,000 is the required down payment to build a $185,000 house (slab no basement)
  • Employee applies for down payment assistance / or program is used as a recruitment tool 
  • The lot must be free; find properties owned by city/county/private willing to donate
  • Attract developers with this program + RLF – the properties are guaranteed to sell, reducing risk
  • Home buyer is given $10,000 down payment forgivable loan 
  • If they stay in the home for 10 years, the loan is forgiven 

We recommend employers pilot this program for 5 years in conjunction with the Revolving Loan Fund to achieve immediate housing goals. Program can be scaled up if successful.

Blighted & Delinquent Properties

3

Blighted property remedy plan

In addition to all the new development this plan hopes to create, the cities and county must work in conjunction to address the challenge of blighted properties. 

The jurisdictions need to adopt county-wide property maintenance standard for all structures and premises. A standard code would make maintenance a legal requirement and protect growing property values in addition to health, safety, and welfare of residents.  

We recommend using the International Property Maintenance Code.  

Property Codes are the first, and easiest step. The more challenging piece is enforcement as codes do no good unless there is action behind the policy.    

We recommend all cities in Wayne County buy into a program, with policy and financial investments. The County will then determine capacity with the county’s Environmental Health Department. If there is not capacity, additional part-time staff should be added. Regardless, it will be critical for this officer to be properly trained and have capacity to enforce these codes   

Wayne County should develop a 28E agreement with the cities that outlines the specific scope – including the enforcement officer’s duties as well as those of the county and cities – and fees, including the structure for the payment of funds.    

To ensure program success, the agreement(s) and funding commitments should initially cover a three-year period. As the three– year window comes to a close, the county and cities will need to assess early successes and outcomes and modify the program as needed to ensure long-term success.      

Funding for the position should be shared amongst the county and cities. Investment should be calculated based on population and the number of housing units. Since the code enforcement officer’s work will be largely on the number of units, this element should be weighted more than population; of course the two typically correlate.

Funding for the position should be shared amongst the county and cities. Investment should be calculated based on population and the number of housing units. Since the code enforcement officer’s work will be largely on the number of units, this element should be weighted more than population; of course the two typically correlate.

Action Steps:

  • Review International Property Maintenance Codes; amend as necessary. Adopt code at county level.
  • Design enforcement program.
  • Map homes and make list of priority properties to target first (residential or commercial).
  • Create program to apply for assistance (RLF) or city/county assume ownership       
4

Delinquent Tax Property Program

Unpaid property taxes threaten revenues for municipalities and their abilities to provide public services.   

According to the Wayne County Treasure’s office there are currently over 1,044 parcels that are tax delinquent equaling $405,104 in unpaid property taxes.    

While most of these parcels owe less than $1,000, 110 owe between $1,000-$2,500, and 43 owe between $2,501-$10,015   

101 of these properties are both vacant and tax delinquent.

Layered with the blighted property program, a tax delinquency property program would be a powerful tool for added development and improvement options across the county.    

Currently, most governments, including Wayne County, use a tax lien / sale program, which often sells the parcel to another owner who has little intention and no commitment requirements to redevelop or maintain the property. Additionally, most governments don’t have programs in place to prevent owners with financial hardships to meet their tax obligations and be able to keep their homes. 

We recommend Wayne County adopt an innovative program, using a land bank or similar model, that will address dilapidated, abandoned, blighted, and tax-delinquent properties. This program will put these properties back to productive use, capture dollars for local taxpayers, and help current owners who are facing financial hardships resolve problems before losing their homes.

We recommend referencing the land bank resources available from the Center for Community Progress, vacant spaces into vibrant places.

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