Ames council commits nearly $1 million in grant funds for homebuyer and rental assistance

Celia Brocker, Ames Tribune
·4 min read

The city of Ames is investing more than $900,000 in grant money into its rental and homebuying assistance programs.

City officials revealed during the April 8 city council meeting that $550,000 of Community Development Block Grant funds will be used in the next year for deposit and first month's rental assistance, homebuyer assistance, and single-family housing rehabilitation programs.

A little more than $270,000 of HOME funds were also designated for tenant-based rental assistance and new single-family home construction.

Ames Housing Coordinator Vanessa Baker-Latimer said data from the U.S. Housing and Urban Development and public input indicate a need for more affordable housing.

"Over the years in Ames, our biggest issue for our CDBG has been creating more affordable housing," Baker Latimer said. "The data that we got back from HUD suggests that we are still on that trajectory to increase the amount of affordable housing, and reduce the rent and cost burden."

The drafted five-year consolidated plan − which is required to receive CDBG funds − has a goal of increasing the supply of single-family and multi-family housing, reducing the cost burden for low-income households and strengthening neighborhoods by implementing housing programs and services.

Ames receives annual funds from the Community Development Block Grant and HOME Investment Partnerships Program. In February, the public and the city council attended an initial workshop to develop a five-year plan, followed by some public forums in March.

Since HUD has not announced Ames' funding allocations for 2024-25, the staff is projecting the current2023-24 allocation for programming.

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City's property tax levy rate rises

A modest increase in taxable valuation and a reduced tax levy rate will generate an additional $1,223,149, or 3.51%, of total new property tax revenues for the City of Ames.

The council held a special hearing on Tuesday, April 8, to discuss the proposed property tax levy for the fiscal year beginning July 1, 2024. The hearing was required before a budget discussion due to a new legislative mandate passed in 2023.

The city's proposed regular property tax is about $35.9 million, a slight increase from the previous fiscal year's property tax of about $34.7 million.

The proposed city budget reflects a total property tax levy rate of $10.09 per $1,000 taxable valuation, a decrease of 11 cents from the previous year's rate of $10.20.

The decreased property tax rate balances the increased assessed value, which rose to nearly 20% in Ames. By analyzing each tax classification, residential property tax bills are expected to increase by $2.22 per $100,000 of assessed valuation.

The Iowa State Legislature’s 2023 Property Tax Bill limited the additional property tax revenue that can be generated in a year. Additional tax revenue is limited to about 2.6% for the upcoming fiscal year.

More: Ames school district eyes $3M budget increase due to rising enrollment, property values

City sidewalk standards updated

The council also approved some changes in city sidewalk standards. The alterations were initially presented in January but were tabled for public input.

The council also asked staff to create a policy for a proactive inspection process. Sidewalk inspections are currently on a "complaint only" basis. The city is in the midst of addressing more than 400 sidewalk complaints.

The new sidewalk standards are as follows:

  • Vertical displacement increases from 1/4 to 1/2 inch

  • Horizontal displacement increases from 1/2 to 1 inch

  • Holes must be greater than 4 inches

  • There must be three or more cracks greater than 1 inch wide

In a public survey available in February and March, 48% of community members indicated they would like to see the city adopt a proactive approach, while 52% were in favor of a complaint-based process.

Operations Manager of Ames Public Works Justin Clausen assumes there will still be complaints even if the program becomes proactive.

"There will still be something that is not an area we are inspecting that someone will find a problem needing attention," Clausen said. "We would still notify and serve those properties. We're still going to deal with complaints the same way."

Clausen thought the proactive process would allow Ames to see a more systemic approach across the city.

More: Ames seeks affordable housing in latest 5-year Community Development Block Grant plan

Celia Brocker is a government, crime, political and education reporter for the Ames Tribune. She can be reached at CBrocker@gannett.com.

This article originally appeared on Ames Tribune: Homebuyer assistance, property taxes highlight Ames council meeting