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RATIONALE <br />The City of Louisville has a demonstrated need for affordable housing of all <br />kinds, particularly housing that is income restricted. However, income <br />restricted housing is difficult and complicated to finance. The City's <br />IV <br />development fees can have a significant impact on a project's financial ➢ Housing Goals <br />feasibility. <br />DESCRIPTION <br />The City can help reduce projects costs, increase the financial <br />feasibility, and help facilitate the production of more income- EXAMPLE DEVELOPMENT <br />restricted housing projects by offering development fee FEES <br />reductions or exemptions for projects that provide income <br />restricted affordable housing. » Land Use & Building Permits <br />There are several considerations the City will need to make when > Public Improvements <br />developing a fee waiver or reduction program: » Utility Connections <br />Consider only reducing some development -related fees, not all. » Impact fees <br />Create a sunset date for the program or place a per -year or <br />overall cap on the number of eligible projects; this would help <br />the City develop a better understanding of the demand and impact of the program. <br />Identify an alternative revenue source that will backfill waived fees such as the General Fund or <br />other local taxes and fees. <br />Establish project qualification criteria that includes all scales of projects regardless of the number of <br />units to encourage participation by small and large developers. <br />Fee Deferrals <br />The City could alternatively offer a development fee deferral, aligning the project with the developer's <br />financing plan. Developers could pay fees when the property starts generating income from rent or unit <br />sales, instead of at permit issuance. This approach allows developers to pay as cash flows into the <br />project and can help avoid additional costs like interest gathered on construction loans. <br />ACTION 1.3 BENEFITS SUMMARY <br />INCOME LEVEL <br />GEOGRAPHIC <br />ACTION TYPE <br />HOUSING PRODUCTION <br />COST <br />SERVED <br />SCALE <br />Incentive <br />Low -Income <br />Citywide <br />Louisville Housing Plan Part 4: Housing Strategies and Actions 33 <br />