Forest City launches New Housing and Rental Incentives
October 12, 2017 – The City of Forest City is announcing a new construction incentive program and a rental incentive program for low to moderate income households. These programs are designed to encourage building and renting within the city limits of Forest City.
New Construction Incentive Program –
The focus of the construction incentive program is to enhance the quality of new housing stock in Forest City by providing financial assistance to families to build single family houses that are built for Low-to-Moderate Income (LMI) qualified households. Approved applicants will receive up to a $20,000 loan for new construction; $10,000 forgivable over 5 years of occupancy and $10,000 loan at 0% interest for 10 years with no penalty for early payoff. Permanent Financing must be through either MBT Bank or TSB Bank. The intent of the program is to expand housing availability for LMI households. Download GUIDELINES and APPLICATION
New Resident Rental Incentive Program –
The purpose of the new resident rental incentive is to assist new residents who are employed full time within Forest City to relocate and live in Forest City. The assistance is up to 25% of monthly rent for 1 year, not to exceed $3,000 per year. Requirements include residents move to Forest City, are employed full time by a Forest City business and have a household income at or below 80% of Winnebago County Median Income. The net rental rate must meet LMI Affordability and the property must not be eligible for Federal Rental Subsidy Programs. Download GUIDELINES and APPLICATION
These are the first two incentive programs to have been approved by the City Council on September 18, 2017, and will be managed by the Forest City Housing Commission, under the City of Forest City. The Housing Commission was created in August 2017 to design programs for the best use of the LMI funds for the community. The Commission, which consists of eight individuals, is looking at six total programs.
Forest City will have approximately $250,000 in LMI Fund at the end of this fiscal year and will use $130,000 of those funds for these two programs. The program will approve applications on a first-come, first-served basis until funds are depleted.
The City will begin accepting applications at City Hall (305 N. Clark Street) on October 16, 2017. Call City Hall at 641-585-3574 with questions. Applications and guidelines can be downloaded through the links above.