For August 4th for public hearing.

Those are AO 2026 89 ordinance in acting municipal code chapter 12.1110 tax incentives for first-time home buyers and also 2026.

Similar tax incentives for uh mixed use multi-unit housing.

So I read those both just to be clear.

Uh that these are two separate ordinances, similar topics.

We'll talk about them, um, but they do two different things.

So uh we'll start with introductions, then we'll move into our presentation.

George Martinez, Donald Handelin, Chair.

Aaron Baldwin Day, Sydney Scout, Anna Brawley.

And on the phone, I see Mr.

Johnson.

I'm here.

And any other members on the phone right now.

Okay, not seeing any right now.

Um, I do know a couple of members are traveling, and uh, we'll see if others show up.

So uh we also have uh clerk's office, members of the administration, a few members of the public, um, uh assembly council, well, not council, but our paralegal.

Um, and so I'm gonna turn it over to the folks who are presenting.

I'll note we have a presentation, uh, the slides.

And um, if you all can just put your names on the record when you start, um, I'll I think start with Mr.

Uh Clauda.

Go ahead.

Uh thank you, Madam Chair for the record.

Nolan Clauda with the mayor's office.

And um, if if it's all right with you, I can begin.

All right.

Uh so uh the administration this work session on two AOs that have been introduced and that are scheduled for public hearing on August 4th.

Uh these each relate to incentives for production of homes.

Uh one for first-time home buyers, which is 2026 89, and another for mixed use multi-unit housing, uh 2026 93.

All right.

And so combining these, they're they're programs that each address a different aspect of the housing uh uh sort of spectrum, um, but use a kind of a similar means of tax abatement to get there.

Uh so both both of these do align with some of the stated strategies, uh, um, both the assembly's housing action plan and the mayor's 10,000 homes and 10 years plan, uh calling for the use of incentives to close the feasibility gap as far as residential development and reuse and the folk the use of incentives and uh to increase the housing stock essentially.

Uh there's there's also some language I didn't put up here that relates to the 2040 uh land use plan too um and uh about uh use of incentives and and um trying to promote housing affordability.

Uh so and so these programs, so I wanted to put up here, I I think sometimes it comes up like okay, how many different tax abatement programs do we have?

And so if we're proposing something new, how do they fit into the overall context?

And so I put this table together.

Uh the uh the the top two under 1235 are for economic development and for deteriorated property.

Those are those are incentives that have been on the books for a long time.

I think some version of uh at least deteriorated property goes back to the 1990s, almost 30 years ago.

Uh the two green ones, um, multifamily property and vacant and abandoned property were ones that were um proposed and uh by the by the LaFrance administration and with with assembly co-sponsors um it and passed in 2025.

So that's our multifamily property for multifamily rental housing and for uh our rehab one for vacant and abandoned property.

So these two incentives are are intended to fill gaps that aren't addressed by some of those other programs that already exist, right?

These these are for um different purposes.

These are both for aimed at owner-occupied housing as well, different modes of owner-occupied housing.

Uh so first up, talking about 2026 um 93, which is the mixed-use housing tax incentive.

So this is to create a tax incentive program for for mixed-use buildings that have owner-occupied housing as part of the mix.

Uh, you could the the prior multi-family exemption for rental housing that we already have, it could actually be used this way too, but it could only apply to rental housing that's eight or more units.

Uh, so this one can apply for for uh condominiums that might be part of a mixed-use development.

Uh, and uh so it so filling a different need there.

It's it's about increasing the housing supply and redeveloping underutilized commercial properties.

That the core idea here is about things like uh commercial properties that we have that are underutilized.

You know, we we just like many places around the country, a lot of uh vacant office space or uh high high vacancy office space.

Uh we have in the in this community at the same time that we have a housing crunch.

It makes a whole lot of sense to find ways to help people convert our building up property owners to convert some of their property to uh residential uses if if that's at all feasible.

And this is something that's helped intended to help make that more feasible.

Um residential conversions are difficult and expensive.

They don't work for every kind of building, um, a typical office building.

You know, the idea of office buildings to residential is something that comes up a lot and can be done and has been done, including in Anchorage with one uh with with at least one building, the emerald building, which has senior housing in it.

But but it's it's difficult and it's expensive, right?

Uh the features of a of an office building are a bit different from a residential building as far as the depth of the floor plan you want residential units want to have more windows, more closer access to windows, that interior portion, you know, in an office building doesn't work well for residential uses.

Sometimes they there's utilities and plumbing, um, water usage, things like that that have to be changed, um, uh mechanical systems.