NORTH VERNON — Aiming to increase housing stock in the community, North Vernon has established a program to provide incentives to builders who create new housing in the city or clear blighted properties.
The North Vernon Housing Property Revitalization Program will provide incentives to home builders in amounts between $5,000 and $15,000 to improve vacant or blighted properties in an effort to create more housing opportunities and draw new residents to the area.
Applications for funding through the program will open on Monday. The incentives fall under three categories:
Vacant lots: A vacant but platted lot with water and sewer availability may qualify for a grant of $5,000 for construction of a new residential dwelling is constructed thereupon. The city says that upon application and on a case-by-case basis, an additional $2,500 may be made available.
Previously improved lots: A qualifying lot with improvements that need demolished shall qualify for a grant of up to $15,000 if the lot is used for construction of a new residential dwelling. The North Vernon Redevelopment Commission must approve the building specifications prior to construction.
Undeveloped ground: A property owner who desires to subdivide ground suitable for residential housing can receive financial assistance from the commission. Any new development must meet the county subdivision control ordinance and must have reasonable restrictive covenants to preserve the wellbeing and future appearance of the neighborhood.
North Vernon in 2018 conducted a study that found at that time the city needed 400 additional residences to meet market demand for housing.
The new program will provide amount of assistance on a case-by-case basis and developers should contact the redevelopment commission to initiate discussions toward a development agreement. Developers will be required to show proof of financial ability to support the project and past experience.
The Commission must approve building specifications prior to construction, which the city says will not be unreasonably withheld if plans are complementary to the surrounding neighborhood.
Funding for the new program will come from North Vernon’s TIF (tax increment financing) district. The program requires homes to be at least 1,400-square feet, excluding porches and garages.
For properties that have a viable reuse, the City of North Vernon will request proposals from developers, individuals, nonprofit developers, for-profit developers, or partnerships including any type of development entity. Application will be forwarded to Administrative Resources Association, who will act as program manager and fiscal agent for the programs. Applications will need to identify the proposed reuse of the property, scope of rehabilitation/construction, financing, property management, or other related information relevant to the details of their development.
