Fiscal Note
$300,000 is authorized in the 2011 DPCED Adopted Capital budget for the TID 32 Small Cap Loan program, Project No. 3, TID 32- Upper State Street Account No. 823201. Tax increments currently available in TID #32 are sufficient to capitalize loans from this program. Therefore, no City borrowing will be required. TIF Law requires that the District must close when tax increments recover all the District expenditures.
Title
SUBSTITUTE Authorizing the creation of a Mansion Hill-James Madison Park Neighborhood Small Cap TIF Program in Tax Incremental District #32 (Upper State Street) to provide funding for the purchase and/or rehabilitation of rental properties to owner-occupied properties.
Body
Since 1990, over 3,700 new housing units have been approved through Planned Unit Developments in the downtown/near campus area. Of that number, over 1,800 units have been created primarily for students. Within those units, over 4,800 bedrooms have been created. Housing development projects within or adjacent to the Mansion Hill-James Madison Park Neighborhood account for over 600 of the units and 1,100 of the bedrooms. This translates into 33% of the total student-oriented units and 23% of the student-oriented bedrooms for the downtown/near campus area. As the market for student housing has shifted dramatically in the past few years to the newer and larger units, the older existing housing stock in Mansion Hill-James Madison Park Neighborhood is coming into the market. Furthermore, with the recent slowdown in the condominium market in downtown Madison, a slowdown in the acquisition of properties for redevelopment has also occurred.
With the adoption of TID 32, tax increment generated by new development has created an opportunity to fund a program that would help those households interested in buying and rehabilitating an existing rental property by converting units that may have housed large numbers of students to an owner-occupied property of one to three uni...
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