A second tax credit application has been filed with the Iowa Economic Development Authority regarding housing projects underway in Clarinda.
A resolution supporting a Workforce Housing Tax Credit application from the Clarinda Economic Development Corporation was approved by the Clarinda City Council during a special meeting Wednesday, June 3, at Clarinda City Hall. The meeting was also shared over Zoom due to guidelines limiting the size of meetings because of the COVID-19 virus.
During its previous meeting May 27, the council approved a resolution supporting another Workforce Housing Tax Credit application from Fine & Sons Homebuilders.
CEDC Executive Director Renee Riedel said Fine & Sons Homebuilders would be using its tax credits to complete work on a subdivision
The application for the CEDC will focus its housing program intended to construct new homes on lots once containing structures considered to be so substandard or dilapidated their removal was required. Fine & Sons Homebuilders is also involved in this program.
"We're just splitting up the work. That way we're able to collect the incentives when each project is done rather than waiting until they're all complete," Riedel said.
Three lots are currently included in the housing program directed by the CEDC. Those lots are located at 522 W. Main St.; 503 W. Clark St.; and 514 S. 14th St. in Clarinda. Riedel said a house has been built at 522 W. Main St. and is under contract. The sale of the house is scheduled to be closed July 1.
A required part of the tax credit application process, the resolutions passed by the council identified the local match given to the projects. Riedel said during the May 27 meeting the local match for the CEDC project involved in-kind services rather than a monetary contribution.
"It's a requirement of $1,000 per house in the application. However, we will be offering the in-kind donation of the lots as we continue the housing program. So there will not be any cash exchanged," Riedel said.
Also during the meeting June 3, the council approved the revised employee handbook for the city of Clarinda. The new revisions in the handbook are effective July 1.
Based on a recommendation from the Employee Benefit Committee, the council approved a $0.50 per hour increase to full-time hourly employees. Salaried employees would receive a 3 percent pay increase. Permanent part-time employees would receive a raise of $0.25 per hour.
In addition, the employee contribution for health insurance would increase from the current rate of 10 percent to 11 percent.