What is a Housing Improvement Area?
Housing Improvement Areas are used in much the same manner as special assessments such as sidewalk widening and park improvements. The law is designed to assist areas where common elements of the property are maintained by owners associations which do not have an appropriate reserve fund to finance improvements.
In order for a city to create a Housing Improvement Area, a petition must be received from at least 25 percent of the affected property owners. The local government must determine the feasibility and need for the improvement. Additional public hearings must be held for the affected property owners in order to discuss the improvements. These hearings will also focus on the potential tax burden the affected property owners would have to bear following the improvement.
If the local unit of government makes the required findings of need, it will adopt an ordinance establishing a Housing Improvement Area. Subsequently it will establish a fee that must be repaid by future taxes on the property owner to cover the improvements. Click here for more information on the process of establishing a Housing Improvement Area.
What problems can Housing Improvement Areas solve?
What are the benefits of a Housing Improvement Area?
Related Case Studies
Westbrooke Patio Homes
The City of Hopkins created a Housing Improvement Area to allow for the financing of a $2.3 million improvement project...