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HomeMy WebLinkAbout2022-04-28 Info Packet City Council I nformation Packet April 28, 2022 IP1.Council Tentative Meeting S chedule May 3 Work Session IP2.Work Session Agenda IP3.Social J ustice & Racial Equity Grant Awards [Previously distributed in the 4/19 Agenda Packet] IP4.Pending City Council Work S ession Topics Miscellaneous IP5.Memo from Neighborhood & Development Services Director: A ffordable Housing Action P lan IP6.Press Release: J ohnson County Direct Assistance P rogram application process open through May 23, 2022 IP7.J oint Entities Meeting: A pril 18 IP8.Civil S ervice E xamination: Right of Way Technician - P ublic Works Draft Minutes IP9.Ad Hoc Truth & Reconciliation Commission: April 7 IP10.Community P olice Review Board: A pril 12 IP11.Community P olice Review Board: A pril 20 IP12.Human Rights Commission: A pril 26 April 28, 2022 City of Iowa City Page 1 Item Number: 1. April 28, 2022 Council Ten tative Meeting Sched u l e AT TAC HM E NT S : Description Council Tentative Meeting S chedule Item Number: 2. April 28, 2022 Work Session Agen d a AT TAC HM E NT S : Description Work Session Agenda Iowa City City Council Work Session Agenda May 3, 2022 - 4:00 PM Emma J. Harvat Hall 410 E. Washington Street www.icgov.org Meeting Rules can be found at: icgov.org/meetingrules You can watch the meeting on cable channel 4 (118.2 QAM) in Iowa City, University Heights and Coralville, or you can watch it online at any of the following websites: • https://citychannel4.com/live • https://www.youtube.com/user/citychannel4/live • https://facebook.com/CityofIowaCity • Discuss HRC Recommendation for Additional Social Justice Racial Equity Grant Awards • Discuss Process for Handling ARPA Funding Requests • Clarification of Agenda Items • Information Packet Discussion [April 21, April 28] • University of Iowa Student Government (USG) Updates • Council updates on assigned boards, commissions, and committees Item Number: 3. April 28, 2022 Social Ju stice & Racial Eq u ity G ran t Award s [Previously d istributed in the 4/19 Ag enda Packet] AT TAC HM E NT S : Description Social J ustice & Racial Equity Grant Awards [Previously distributed in the 4/19 Agenda Packet] Item Number: 16. April 19, 2022 Resolution Adopting the Social Justice and Racial Equity Grant Allocations for Fiscal Year 2022. Prepared By:Stefanie Bowers, Human Rights Coordinator Reviewed By:Geoff Fruin, City Manager Sue Dulek, Assistant City Attorney Fiscal Impact:$75,000.00 Recommendations:Staff: Approval Commission: The Human Rights Commission by a 5-0 vote recommends to the City Council the following organizations for funding: Multicultural Development Center of Iowa, Open Heartland, Center for Worker Justice, Great Plains Action Society, IC Compassion, Houses into Homes, Iowa City Area Chinese Association. Attachments:Approved Minutes HRC 2 22 2022 Resolution Exhibit A Executive Summary: The Human Rights Commission recommends full funding for Multicultural Development Center of Iowa, Open Heartland, Center for Worker Justice, Great Plains Action Society, IC Compassion, Houses into Homes, Iowa City Area Chinese Association for the Social Justice and Racial Equity Grant for fiscal year 2022. Background / Analysis: In 2017, the City Council created the Social Justice and Racial Equity (SJRE) Grant to assist community-based organizations in building capacity to address social justice and racial equity needs. Seventy-five thousand dollars has been allocated yearly for the SJRE Grant since fiscal year 2019. The Human Rights Commission has recommended to City Council for the amount to be doubled to $150,000. Social justice and racial equity are defined as both a process and a goal. "The goal is full and equal participation of all groups and individuals in a society that is mutually shaped to meet their needs, allow them to reach their full potential, and limit/decrease barriers. This definition includes a vision of society that is equitable, and where all members are physically and psychologically safe and secure." The grant is available to for profit and non profit Iowa City based organizations to fund programs, activities, or services that help eliminate inequities in the community. The grant has six priority service areas: education, building communities, housing, criminal justice, health, and employment. Organizations whose programs, services, or activities address one or more of these priorities are considered first for funding. Applications for the grant were available to apply for from December 1, 2021 to January 7, 2022. The Human Rights Commission met on February 22 to review the nineteen funding requests. By a vote of 5-0 the Commission recommends to City Council to fund the below organizations. The total allocation is $75,000.00. Multicultural Development Center for Iowa (MDC Iowa) has developed a BIPOC Business Accelerator program (INCubate) that provides an intensive training program designed to accelerate the growth and development of new and existing minority-owned businesses in Iowa City. MDC Iowa believes that representation matters and continues to lead by example as an organization with Black leadership, and staff and training delivered by Black, Indigenous, People of Color. Participants in the INCubate program learn business fundamentals, assess an existing business model or create a new business model canvas, learn about supply chain management, competitive landscapes, identify distribution channels and partnership opportunities, practice presentation skills, work on presentation skills, develop a marketing plan, as well as build a 30-60-90-120-day strategic plan. The entire 16-week program is designed to give the participants the tools required to self-actualize their business dreams using the skills learned during the program. Open Heartland through participation in the “We Belong” project participants will build self-esteem and a sense of belonging to a new culture and community. The majority of the adults served by Open Heartland were not able to finish school in their home countries due to lack of access, the necessity to go to work at a very young age, or poverty. The project programs and activities, all with free childcare provided, will be accessible to our clients in their native Spanish language at no cost to increase and promote access. The program activities will impact families by allowing adults and teens opportunities to: improve their abilities to speak and understand English, [Previously distributed in the 4/19 Agenda Packet ] activities will impact families by allowing adults and teens opportunities to: improve their abilities to speak and understand English, participate in community conversation groups with native English speakers, become computer literate, gain understandings about the US culture, earn their GEDs, learn new skills to contribute to their economic stability and ability to care for their mobile homes that are in disrepair, and improve their mental health with active involvement in support groups. All We Belong programs are free and will be facilitated during evenings and weekends when kids are not in school during calendar 2022. Center for Worker Justice program involves the development of a public computer lab for community members. The computer lab would have 7 computers for public use, as well as a printer. The lab would offer assistance with filling out/printing forms and applications, and basic computer literacy training and English classes. The lab will provide a shared learning environment providing workshops and educational courses in computer literacy, English language, and other educational subjects. Also, the lab will offer knowledge and assistance to access government assistance programs that contribute to increasing awareness about and reducing illiteracy as a key factor of social inequities. Great Plains Action Society will do a one-day Indigenous People’s Day celebration to be held in downtown Iowa City to promote an Indigenous worldview through a community event that includes traditional music and dance, first foods, and cultural activities. This celebration will highlight Iowa City’s multicultural efforts through a collaborative effort that aligns with existing organizations and businesses in the area. It will also encourage city-based efforts to improve the visibility of Native American and Alaskan Native populations and issues in the area. Indigenous communities in the United States suffer from the highest rates of missing and murdered people, youth suicide, unemployment, police murders to name a few prominent issues facing our people. It is because we also suffer from extreme erasure by the government and media that these issues are ignored and largely go unknown by settler descendant society. Our event programming will increase community cultural awareness and connectedness through activities, education, and conversations. Our activity falls into the Building Communities, Education, and Health priority areas as it is creating space for Indigenous Peoples who are historically overlooked in Iowa City. It also takes the first steps to truly celebrate Indigenous Peoples' Day in Iowa City, which provides important historical and anti-racism education, which in the end benefits the mental health and well-being of Indigenous Peoples in the area. IC Compassion will create a training café within our facility at IC Compassion. The café, the Jabez Café, is to provide a place for young adults with disabilities and mental health illnesses to work and gain the skills they need for future job opportunities. Adults with an intellectual disability often struggle to find work. Many are under-employed or not working at all. The Jabez Café will train individuals 16 years or older, teaching them to live independent lives and provide a place for them to be. It will stimulate a positive environment which does not focus on the things that they cannot achieve, but those that they can. As with IC Compassion’s mission, the mission of the Jabez Café is to work with people from multi-cultural backgrounds. The café will not only impact the trainees, but also the community in which it serves. The café will help to provide awareness of the barriers people with disabilities face and stimulate the local economy through purchasing and selling of food and coffee. Houses into Homes will host a Youth Volunteer Academy that will bring together a diverse group of students from across the community to volunteer, get to know each other, and learn about social justice. Weekly volunteering will be accompanied by a monthly learning experience (i.e., Maslow’s hierarchy of needs) or restorative circle (i.e., reflecting on your experience today). Students will have a unique opportunity to participate in learning activities with students from different schools, different racial and ethnic groups, and different socio- economic backgrounds. Together students will examine historic and current structures and causes of systemic racism and injustice. The development of the curriculum will be a collaborative effort. Over the summer of 2022, we will form a steering committee of school and community leaders to develop the curriculum and select speakers for each monthly workshop. School sponsors and Houses into Homes staff will be responsible for the mini-lessons and reflections. Iowa City Area Chinese Association will host a Lunar Year Gala. The Gala performance consists of about 12 pieces, including music performance and dances, such as professional saxophone duet, violin duet, youth string ensemble, Children's Chorus Club, Chinese Classic Dance Group, Chinese Folk Dance Club, Qipao Club. Themes range from the delicate elegance of different ethnic ladies to the folk hero of Hong Kong, from the love of parents to the appreciation of kids. Some pieces also touch upon the topic of today’s China, shedding light on the desire and wishes of modern Chinese. The celebration will benefit not only the Asian families but also help stop hatred or misunderstanding in the community. We hope to make America a better place and to build Iowa City into a safe and inclusive community for everyone to live and thrive. The Lunar New Year Gala is a brilliant artistic celebration of Asia's largest holiday. The rich cultural heritage will be displayed at the annual Lunar New Year Gala and hope to bring good luck to the audience in the year of the tiger. ATTACHMENTS: Description Approved Minutes HRC 2 22 2022 Resolution Exhibit A Date: April 7, 2022 To: Mayor and City Council From: Stefanie Bowers, Human Rights Coordinator Re: Recommendation from the Human Rights Commission At their February 22, 2022, meeting the Human Rights Commission made the following recommendation to the City Council: Multicultural Development Center of Iowa: $10,000.00 Open Heartland: $9,000.00 Center for Worker Justice: $18,000.00 Great Plains Action Society: $5,000.00 IC Compassion: $ 15,000.00 Houses into Homes: $15,000.00 Iowa City Area Chinese Association $3,000.00 Five out of 7 organizations are new to the funding. Motion by Pries, seconded by Sivanthaphanith. Motion passed 5-0. (Maliabo and Ahmed abstained). _____________________________________________________________________ Additional action (check one) __ __No further action needed _ ___Board or Commission is requesting Council direction __X__Agenda item will be prepared by staff for Council action S:RECform.doc Approved Minutes Human Rights Commission February 22, 2022 Emma J. Harvat Hall Commissioners present: Mark Pries, Tony Sivanthaphanith, Jason Glass, Roger Lusala, Ashley Lindley, Bijou Maliabo, Ali Ahmed (via Zoom). Commissioners not present: Sylvia Jons, Siri Bruhn. Staff present: Stefanie Bowers, Daisy Torres. Recommendation to City Council: Yes. The Human Rights Commission recommends the following organizations for funding from the Social Justice and Racial Equity Grant for FY22. Meeting called to order: 5:32 PM. Land Acknowledgement: Lindley read the Land Acknowledgement. Approval of the minutes from the January 25, 2022, meeting: Pries moved, the motion was seconded by Lusala. Motion passed 5-0. (Ali, Maliabo not present). Public comment of items not on the agenda: None. (Ali present 5:39 PM) Review of Current Commission Subcommittees & Strategic Plan: The Commission will work on strategic planning at their March or April meeting. The planning sessions will include a discussion of subcommittees and areas of focus. Staff will work with the Commission to hire a facilitator who can assist the Commission on their strategic plan. (Maliabo present 5:41) Upcoming meetings: The Commission decided to move its March meeting date from the 22nd to the 29th. Youth Awards: The Youth Awards Ceremony will be held on Wednesday, May 11th. The location has changed from the Englert Theatre to the Hilton Garden Inn. Mayor Teague has agreed to provide remarks at the event. Nomination forms have gone out and staff will reshare that news release with Commission members. The event will start at 6PM with a reception and the ceremony will start at 7PM sharp. Proclamation for International Transgender Day of Visibility: Lindley will accept the proclamation on behalf of the Commission at the March 22nd Council meeting. Night of a 1000 Dinners: Night of a 1000 Dinners will be held virtually on Tuesday, March 8. The event is a community celebration of International Women’s Day and is sponsored by the Johnson County United Nations Association. Three local women led organization (Inside Out Reentry Community, IC Compassion, Open Heartland) will be recognized and proceeds will be donated to those organizations plus the UN High Commissioner for Refugees. Maliabo is on the planning committee. Glass has already signed up to attend and Pries will be signed up by staff. Social Justice and Racial Equity Grants: The Commission received 20 submissions for the grant for FY22, one organization withdrew their request. Commissioners Maliabo and Ahmed are not participating in the grant recommendation this year because they both serve on the Center for Worker Justice Board of Directors (CWJ) who submitted an application for grant funding. Staff went over the requirements and rules for the grants. The recommendation to Council for the grants for FY22 is as follows: Multicultural Development Center of Iowa: $10,000.00 Open Heartland: $9,000.00 Center for Worker Justice: $18,000.00 Great Plains Action Society: $5,000.00 IC Compassion: $ 15,000.00 Houses into Homes: $15,000.00 Iowa City Area Chinese Association $3,000.00 Five out of 7 organizations are new to the funding. Motion by Pries, seconded by Sivanthaphanith. Motion passed 5-0. (Maliabo and Ahmed abstained). The Commission will discuss potential changes to the SJRE grant for FY23 at its April meeting date. Reports of Commissioners: Maliabo’s daughter was recognized for a climate action certificate. Lindley noted that February 18 was the 80th anniversary of the Japanese American Internment Camps during World War 2. Sivanthaphanith spoke on the anti-LGBT bills being introduced in the Iowa legislator. Lusala has visited local Black owned restaurants to commemorate Black History Month. Pries mentioned working with the Interfaith Alliance and also events he is participating in related to the 1619 project. Glass reminded Commissioners of the upcoming MLK Youth Summit scheduled for February 25. Staff Reports: Torres reported that Kites for Kids will be held in April in Iowa City and also reminded Commissioners that the peanut butter and jelly donation drive to support CommUnity Crisis Services and Food Bank ends on February 28. Adjourned: 6:42 PM. Human Rights Commission ATTENDANCE RECORD YEAR 2022 (Meeting Date) NAME TERM EXP. 1/25 2/22 3/22 4/26 5/24 6/28 7/26 8/23 9/27 10/25 11/22 12/27 Jason Glass 2022 P P Ashley Lindley 2022 P P Mark Pries 2022 P P Roger Lusala 2023 P P Bijou Maliabo 2023 P P Tony Sivanthaphanith 2023 A P Siri Bruhn 2024 P A Sylvia Jons 2024 P A Ali Ahmed 2024 P P KEY: P = Present A = Absent Item Number: 4. April 28, 2022 Pen d ing City Cou n cil Work Session Topics AT TAC HM E NT S : Description Pending City Council Work S ession Topics PENDING CITY COUNCIL WORK SESSION TOPICS April 28, 2022 Other Topics: 1. Consider a plan for rubberized surfacing at park playgrounds and develop strategies to address equity gaps noted in the Parks Master Plan and plan for the equitable distribution of destination parks within an easy and safe distance of all residents. 2. Discuss possible changes to residential zoning classifications to allow and/or require a greater diversity of housing types (i.e. missing middle) 3. Consider establishing a cost of development framework that can help guide decisions on how best to accommodate future growth 4. Review low-income fare free transit options 5. Review Sunday transit service operational proposal 6. Discuss low-intensity commercial use allowances in residential zones 7. Discuss long-term planning work group priorities 8. Discuss Local Option Sales Tax 9. Discuss a land acknowledgement for City Council meetings 10. Strategic Planning sessions 11. Update from the local childcare coalition 12. Review of Parks and Recreation Facilities Master Plan Item Number: 5. April 28, 2022 Memo from Neig h b orhood & Devel opmen t Services Director: Afford able Housin g Action Plan AT TAC HM E NT S : Description Memo from Neighborhood & Development Services Director: Affordable Housing A ction Plan Date: April 21, 2022 To: Geoff Fruin, City Manager From: Tracy Hightshoe, Neighborhood & Development Services Director Re: Affordable Housing Action Plan Back in November of 2020 the City Council requested staff to create an Affordable Housing Steering Committee to aid in the development of a new affordable housing plan that builds off the Affordable Housing Action Plan approved in 2016. The direction of City Council was to take a deeper look at the City’s current policies and programs as they relate to affordable housing and consider what changes can be made to further our efforts to support affordable housing. The City Council also asked the committee to recommend how the City can further support affordable housing if additional funds were made available. The Steering Committee met each month starting in February of 2021. The committee reviewed Census and City data as it related to affordable housing and then reviewed the City’s existing programs and policies. After this review, the City initiated public comment through various avenues. Finally, the committee formulated the attached recommendations for City Council review. The committee based their recommendations on three groupings: 1) recommendations for existing policies and programs; 2) recommendations for development regulations and 3) recommendations for programs and policies based on household income if additional funding is made available. The Action Plan is a result of staff working closely with a volunteer steering committee focused on addressing affordable housing in Iowa City. We would like to thank all who volunteered their time, talent, and expertise to strengthen our affordable housing efforts in Iowa City. If you have any questions, please contact me at 319.356.5244 or tracy-hightshoe@iowa- city.org. 2022 Iowa City Affordable H ousing ACTION PLAN 2022 Iowa City Affordable Housing Action Plan CITY OF IOWA CITY 2 Acknowledgements This plan is a result of City staff working closely with a volunteer steering committee focused on addressing affordable housing in Iowa City. The members working in collaboration with the public and area stakeholders provided input and feedback critical to the formation of the final plan. Thank you to all who volunteered their time, talent, and expertise to strengthen our affordable housing efforts in Iowa City. Affordable Housing Steering Committee Members Jessica Andino Residential Construction Iowa City Homebuilders Association Human Rights Commission Simon Andrew The Housing Fellowship Johnson County Affordable Housing Coalition Sara Barron Johnson County Affordable Housing Coalition Local Homeless Coordinating Board Manufactured Housing Task Force Heath Brewer/Scott Hawes Iowa Valley Habitat for Humanity Crissy Canganelli Shelter House Local Homeless Coordinating Board Johnson County Affordable Housing Coalition Denise Fuller Horizon's Financial Wellness Center Ellen McCabe Housing Trust Fund of Johnson County Johnson County Affordable Housing Coalition Peter Nkumu Housing & Community Development Commission Melissa Schooley Financial Institution Greater Iowa City Homebuilders Association Multiple Non-Profit Housing Related Boards Mark Signs Realtor Planning & Zoning Commission Terry Vargason Realtor Property Manager Ryan Wade Developer Property Manager PREPARED BY THE CITY OF IOWA CITY Geoff Fruin, City Manager Tracy Hightshoe, Neighborhood & Development Services Director Erika Kubly, Neighborhood Services Coordinator Danielle Sitzman, Development Services Coordinator 2022 Iowa City Affordable Housing Action Plan CITY OF IOWA CITY 3 Contents Introduction .................................................................................................................................... 4 The Process.................................................................................................................................. 5 Definition of Affordable Housing ................................................................................................ 5 2020 Review of Data ....................................................................................................................... 7 Major Takeaways ........................................................................................................................ 7 Summary of the City’s FY2017-2021 Accomplishments ............................................................... 14 Review of Existing City Programs and Policies .............................................................................. 16 Affordable Housing Fund Distribution Formula ........................................................................ 16 Other Programs and Policies ..................................................................................................... 19 Summary of Public Input ............................................................................................................... 25 Forecast of Local Affordable Housing Revenue Streams .............................................................. 26 Affordable Housing Priorities/Goals ............................................................................................. 28 2022 Affordable Housing Recommendations ............................................................................... 28 Existing Policies and Programs .................................................................................................. 28 Development Regulations ......................................................................................................... 32 Programs and Policies Based on Household Income ................................................................ 33 Summary Tables ........................................................................................................................ 38 Appendices .................................................................................................................................... 41 2022 Iowa City Affordable Housing Action Plan CITY OF IOWA CITY 4 INTRODUCTION Affordable housing is a complex issue that impacts every state and community. The ability to afford market rate housing relies on several factors including, but not limited to, income/wages, educational opportunities, affordable childcare, health care, including mental health, and the cost of other necessities. Multiple factors also influence the cost of housing and the ability to produce affordable housing, therefore, multiple partners will have to be called upon to address our housing challenges. Like many growing metropolitan areas across the country, the lack of affordable homes for Iowa City’s low-moderate income residents continues to present a significant problem. In 2019 Iowa City had 1,245 families in poverty and 54% of renters and 16% of homeowners in our urbanized area are considered either cost burdened or severely cost burdened. The 2020 certified Census population for Iowa City is 74,828. The projected population for 2030 is 85,068, an increase of 10,240 residents. Correspondingly, the projected metro population for 2030 is 143,153, an increase of 19,788 residents (2015-2019 ACS data). The metro area will need to add more than 8,800 new housing units for the metro area’s growing population, of which 4,500 will need to be added in Iowa City. Currently, the urbanized area does not produce enough affordable housing. The challenge to provide affordable housing for all our residents will be greater as the region’s population grows. The City Council requested staff to create a Steering Committee to build off the Affordable Housing Action Plan approved in 2016. Since 2016, the City completed 14 of the 15 of the action steps identified in the Plan. The remaining step was to consider regulatory changes to the City’s Code to support affordable housing. This remaining step is incorporated into the Committee’s recommendations under development regulations recommendations. Since 2017, the City has created or assisted 1,293 affordable homes. The City Council directed staff and the Steering Committee to take a deeper look at the City’s current policies and programs as they relate to affordable housing and consider what changes can be made to further our efforts to support affordable housing. The City Council also asked the committee to recommend how the City can further support affordable housing if additional funds were made available. This report and its recommendations were created through community collaboration. After nearly a year of data review, community engagement, feedback in multiple formats, and input from many sectors, City Staff and the Affordable Housing Steering Committee has produced a set of recommendations to build off of the Affordable Housing Action Plan adopted in 2016. 2022 Iowa City Affordable Housing Action Plan CITY OF IOWA CITY 5 The Process The committee started by reviewing data from the 2020 MPO Update of the Affordable Housing Market Analysis, the City’s FY20 Year End Affordable Housing Report and the FY17-21 Summary Housing Tables, as well as the Iowa City 2019 Fair Housing Choice Study recommendations. Next, the Committee reviewed the City’s existing programs and policies. The City also initiated public comment through multiple avenues: American Rescue Plan Act citywide survey and listening post, outreach activities at Wetherby National Night Out, Fairmeadows Party in the Park, CommUnity Crisis Services Food Bank distribution, and Iowa City Compassion Food Bank distribution and meetings with various stakeholders such as the Disability Services Coordinating Committee and University of Iowa Student Government leadership. The committee received input from the Greater Iowa City Area Home Builders Association and Iowa City Area Association of Realtors concerning development regulations impacting affordable housing. Finally, the Committee formulated recommendations for City Council review. The recommendations identified are based on a majority consensus; however, some recommendations did not have full Committee support. In those instances where there were differences of opinion, the concerns are noted. Definition of Affordable Housing Throughout the process, many asked how the City defines affordable housing. Affordable housing is generally defined as housing in which the occupant pays no more than 30% of gross income for gross housing costs, including utilities. For most City administered programs, owner-occupied beneficiaries must be under 80% of area median income and renter households must be under 60% of the area median income. The following table identifies how much income a household may receive to qualify for most City and federally assisted housing programs. When reviewing program beneficiaries, the majority of households assisted by the City are under 50% of median income. Household Size 30% Median Income (MI) Hourly Rate FTE 50% Median Income (MI) Hourly Rate FTE 60% Median Income (MI) Hourly Rate FTE 80% Median Income (MI) Hourly Rate FTE 100% Median Income (MI) Hourly Rate FTE 1 $20,950 $10.07 $34,900 $16.78 $41,880 $20.13 $55,850 $26.85 $69,800 $33.56 2 $23,950 $11.51 $39,900 $19.18 $47,880 $23.02 $63,800 $30.67 $79,800 $38.37 3 $26,950 $12.96 $44,900 $21.59 $53,880 $25.90 $71,800 $34.52 $89,800 $43.17 4 $29,900 $14.38 $49,850 $23.97 $59,820 $28.76 $79,750 $38.34 $99,700 $47.93 Effective 6/1/2021 2022 Iowa City Affordable Housing Action Plan CITY OF IOWA CITY 6 Many of the occupations needed by our economy have wages below 80% of median income. The 2018 Bureau of Labor Statistics provides the mean hourly wages for our metropolitan statistical area for various occupations. All these occupations would typically fall under 50% of median income. Our labor market relies heavily on those who need affordable housing. In addition to these occupations, many elderly individuals and those with disabilities often have fixed incomes and need affordable housing. The National Low-Income Coalition identifies the rent affordable to those on fixed income or low wage workers. The U.S. Department of Housing and Urban Development (HUD) provides the fair market rents for over 2,500 metropolitan statistical areas (MSA). Fair Market Rent (FMR) is a statistic developed by HUD to determine payments for various housing assistance programs. FMR is generally calculated as the 40th percentile of gross rents for regular, standard quality units in a local housing market. This excludes low-quality units, already subsidized units (public housing) and units that have been built in the last two years. FMR includes core utilities, like water and power, but doesn’t include internet and other optional services. The FMRs for the Iowa City MSA are found below: Occupational Group Mean Hourly Wage Food Preparation Workers $11.63 Personal Care & Service $12.67 Building Grounds Cleaning & Maintenance $15.42 Healthcare Support $16.90 Sales & Related $16.25 Office & Administrative Support $18.79 Construction $21.86 2022 Iowa City Affordable Housing Action Plan CITY OF IOWA CITY 7 Iowa City Metropolitan Statistical Area Rent Limits – Effective 6/1/2021 SRO Efficiency 1 BDR 2 BDR 3 BDR 4 BDR Fair Market Rent (FMR) $551 $735 $803 $1,036 $1,483 $1,794 HUD Homeownership Sales price limit is $247,000, effective 6/1/2021. HUD defines affordable housing as rental housing that is rented under the fair market rent by bedroom size and homes sold for under the HUD maximum sales price limit. These limits can often exceed what those with very low incomes can afford. While the focus of this plan is to address housing needs for those with lower incomes, this plan provides recommendations for households up to 100% of median income. The recommendations extend to those up to 100% as no one market stands in isolation. Markets are interdependent on each other, whether that is different income levels or product types. A healthy market allows households to move through the market at different stages of life. When the market does not supply the product type a household needs, there can be a break in the system that can impact many different households. 2020 REVIEW OF DATA Upon reviewing the 2020 MPO Update of the Affordable Housing Market Analysis, the City FY20 Affordable Housing Report, the FY 16-20 Summary Housing Tables and other Census information, there was data that stood out concerning our housing market and the need for affordable housing. Major Takeaways 1. Many Iowa City households are cost burdened. • 4,322 cost-burdened and 8,116 severely cost-burdened renters in the Iowa City urbanized area in 2019 • 2,742 cost-burdened and 1,252 severely cost-burdened homeowners in the Iowa City urbanized area in 2019 A household is considered cost burdened when they pay more than 30% of their income on housing expenses. They are severely cost burdened when they pay more than 50% of income on housing expenses. 2022 Iowa City Affordable Housing Action Plan CITY OF IOWA CITY 8 Source: U.S. Census Bureau, ACS 2015-2019 & 2010-2014 5-year estimates. Source: U.S. Census Bureau, ACS 2015-2019 & 2010-2014 5-year estimates. Iowa City is part of an urbanized area including Coralville, North Liberty, Tiffin, and University Heights. The entire urbanized area has a lack of affordable housing; however, changes to housing policy in an 23.0%24.0%19.3%17.3%21.9%19.0%15.7%18.6%8.8%20.2%22.1%26.1%41.3%40.7%14.7%16.3%10.5%14.9%35.6%36.4%0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 2014 2019 2014 2019 2014 2019 2014 2019 2014 2019 Coralville Iowa City North Liberty Tiffin University Heights Proportion of Cost-Burdened Renters by Jurisdiction Cost Burdened Severely Cost Burdened 14.2%13.5%12.9%10.8%16.4%8.8%10.6%14.3%8.5%6.5%1.8%3.2%6.8%6.3%5.5%2.5%6.3%5.8%11.3%8.6%0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 2014 2019 2014 2019 2014 2019 2014 2019 2014 2019 Coralville Iowa City North Liberty Tiffin University Heights Proportion of Cost-Burdened Owners by Jurisdiction Cost Burdened Severely Cost Burdened 2022 Iowa City Affordable Housing Action Plan CITY OF IOWA CITY 9 individual jurisdiction may have limited impact on the overall housing needs of the community at large or even have unintended consequences such as limited types of development, reduction of overall housing supply or increased housing prices. Land developers and homebuilders can adjust where they develop, type of housing they produce and the price or rent of the finished home due to the regulatory environment of different political jurisdictions. Iowa City is home to the University of Iowa, with over 31,000 students. Many of these students report on the Census as extremely low income. There is often the misconception that Iowa City has such high- cost burdened numbers solely due to the university students who may have parental support, financial aid or share living expenses with other students outside family members. Iowa City has over 6,300 households under age 25. When you remove all households under age 25, the typical undergraduate student, there are still over 9,200 households who would most likely be considered under 50% of median income and who would struggle with housing costs in our market. Household Income by Age of Householder Source: U.S. Census Bureau 2015-2019 5-year estimates. There are 9,237 Iowa City households with householders age 25 or older who make less than $49,999 a year. 2. Rents in our urbanized market have increased substantially. Coralville, Iowa City and North Liberty have all had slower growth in income than in housing value. Rents increased 11.3% in Johnson County between 2014 and 2019 after adjusting for inflation. 2022 Iowa City Affordable Housing Action Plan CITY OF IOWA CITY 10 Source: U.S. Census Bureau ACS 2015-2019 & 2010-2014 5-year estimates. Out of Reach 2021, an interactive website from the National Low Income Housing Coalition, reports that a household, based on their zip code, must earn at least $19.23 or more to afford a two-bedroom rental home in our market. Iowa City Zip Code: 52240 52245 52246 Two Bedroom Housing Wage: $19.23 $21.54 $19.23 One Bedroom Housing Wage: $15.00 $16.73 $15.00 Fair Market Rent for a Two-Bedroom Home $1,000 $1,120 $1,000 Fair Market Rent for a One-Bedroom Home $780 $870 $780 Source: https://reports.nlihc.org/oor Housing wage is the estimated full-time hourly wage workers must earn to afford a decent rental home at HUD’s Fair Market Rent while spending no more than 30% of their income on housing costs. Office and Administrative Support and Food Preparation and Serving industries employ more than one in five workers in the Iowa City urbanized area. The food services industry had the lowest mean salary of any sector - $24,928 in 2019. The office and administration industry employs the largest proportion of workers in the urbanized area at 12%, with a mean salary of $40,137. Employees in each industry would have a difficult time finding affordable rental housing in the area. The Iowa City FMR is $1,036 for a two- bedroom unit and $1,483 for a three-bedroom unit (effective 6/1/2021). 2022 Iowa City Affordable Housing Action Plan CITY OF IOWA CITY 11 Source: Iowa Wage Survey, 2020 & U.S. Census Bureau ACS 2015-2019 5-year estimates. 3. The private market does not typically supply housing for households making less than 30% of median income. There are 10,628 households in Iowa City with household income less than $29,999. The far majority of these would be considered under 30% of median income. When you remove householders aged 25 and under to mitigate student impact, Iowa City has 5,234 households. The rent that is affordable in Iowa City to these households is sparce or not available without subsidy. 4. The Johnson County housing market is expensive. The median home value for the state of Iowa is $147,800. Johnson County’s is $227,600, the second highest in the state. 2022 Iowa City Affordable Housing Action Plan CITY OF IOWA CITY 12 5. There is a lack of affordable homes at a price point that support affordable homeownership or affordable rental rates for those under 50% of median income. Based on data supplied by the Iowa City Area Association of Realtors for properties identified with an Iowa City address, there were 113 homes, or 9% of the total, that were sold for less than $150,000 in 2021. More than 54% of the total sold were over $250,000. 2022 Iowa City Affordable Housing Action Plan CITY OF IOWA CITY 13 Includes all properties with an Iowa City address - single family, condo attached, income/investment (home where the owner does not live in the house), condo detached, and zero lot homes. 6. The full impact of the pandemic and economic recovery is not fully known yet. The impact of the pandemic is not reflected in the ACS Data. We anticipate more households have reduced incomes and the need for affordable housing has increased. Based on the demand seen from our housing and non-profit service providers, those with lower paying jobs have been greatly impacted and many more struggle to meet housing costs. Forbes Advisor reports that new home construction is getting hampered by the rising cost of building materials and a severe shortage of labor. This is coupled with an extremely low housing supply. A major determinant of home price trends is how much supply is available relative to demand. In Iowa City, while 2021 saw more lots platted than 2020, these two years mark some of the lowest number of single family lots produced since 2010. Single family lot production in Iowa City has decreased each decade since at least the 1990s. The president of the Greater Iowa City Home Builders Association reports that his company is experiencing significant cost increases. A single-family house bid at the end 2020 compared to the same house bid in 2021 has had an increase of 5% for construction and labor costs, duplexes and townhomes are seeing over a 20% increase in construction and labor costs from 2020 to 2021. Other local single-family builders are reporting increases of 20-30% over last year. Faced with rising or high housing costs, lower income households are forced to make choices, including: • Remain in current housing and cut back on critical necessities. • Consolidate housing with other households (may lead to overcrowding). 0 50 100 150 200 250 300 Iowa City Market Data, No. of Listings -Sold Iowa City Area Association of Realtors 2019 2020 2021 2022 Iowa City Affordable Housing Action Plan CITY OF IOWA CITY 14 • Move to poor quality housing. • Move multiple times. • Move to less desired neighborhoods or farther away and experience longer commutes. • Lose housing altogether. SUMMARY OF THE CITY’S FY2017 -2021 ACCOMPLISHMENTS In the last five years, the City has invested over $9.8 million in affordable housing initiatives. Funds have created or assisted more than 1,293 affordable homes including 181 owner-occupants and 1,112 rental households/homes. This data excludes Housing Choice Vouchers, public housing, and workforce housing tax credits. The focus of many of the City’s housing programs since 2020 has been to stabilize the housing situation for those impacted by the pandemic. The Direct Assistance activity type was added in FY20 for the pandemic when the City started to offer several programs for eviction and foreclosure prevention as well security deposit assistance for income eligible households impacted by the pandemic. This category also includes downpayment assistance. Summary Table 1: Funds Invested in Affordable Housing FY2017-FY2021 Funding Amount FY2017 FY2018 FY2019 FY2020 FY 2021 TOTAL % Owner Rehabilitation $608,650 $422,621 $473,157 $555,739 $296,875 $2,357,042 24% Acquisition $250,000 $150,000 $350,000 - - $750,000 8% New Construction $133,332 $35,000 $200,000 - - $368,332 4% Direct Assistance - - - $53,000 $107,000 $160,000 2% Subtotal $991,982 $607,621 $1,023,157 $608,739 $403,875 $3,635,374 37% Renter Rehabilitation $72,149 $167,284 $122,085 $136,000 $19,100 $516,618 5% Acquisition $254,000 $137,000 $448,216 $173,000 $108,000 $1,120,216 11% New Construction $1,799,872 $338,217 $580,000 $186,000 $725,000 $3,629,089 37% Direct Assistance - - - $200,000 $738,053 $938,053 10% Subtotal $2,126,021 $642,501 $1,150,301 $695,000 $1,590,152 $6,203,975 63% Total $3,118,003 $1,250,122 $2,173,458 $1,303,739 $1,994,028 $9,839,350 100% 2022 Iowa City Affordable Housing Action Plan CITY OF IOWA CITY 15 Summary Table 2: Units Created/Assisted through Affordable Housing Investment FY2017-FY2021 Units Created/Assisted FY2017 FY2018 FY2019 FY2020 FY 2021 TOTAL % Owner Rehabilitation 41 28 28 33 20 150 12% Acquisition 4 3 6 - - 13 1% New Construction 6 1 5 - - 12 1% Direct Assistance - - - 2 4 6 0% Subtotal 51 32 39 35 24 181 14% Renter Rehabilitation 3 12 16 7 26 64 5% Acquisition 12 7 24 4 8 55 4% New Construction 88 17 44 11 47 207 16% Direct Assistance - - - 29 757 786 61% Subtotal 103 36 84 51 838 1112 86% Total 154 154 68 123 86 862 1293 Based on the expenditures and beneficiaries over the last five years for City assisted projects, acquisition and new construction have the highest average per unit cost. These types of projects also typically have the longest compliance periods that restrict rent and the incomes of those eligible. Summary Table 3: Average City Assistance per Unit - Affordable Housing FY2017-FY2021 Activity Type Total Spent FY2017-2021 Units Created/ Assisted Average Unit Cost Owner Rehabilitation $2,357,042 150 $15,714 Acquisition $750,000 13 $57,692 New Construction $368,332 12 $30,694 Direct Assistance $160,000 6 $26,667 Renter Rehabilitation $516,618 64 $8,072 Acquisition $1,120,216 55 $20,368 New Construction $3,629,089 207 $17,532 Direct Assistance $938,053 786 $1,193 2022 Iowa City Affordable Housing Action Plan CITY OF IOWA CITY 16 REVIEW OF EXISTING CITY PROGRAMS AND POLICIES Affordable Housing Fund Distribution Formula For the last three fiscal years (FY20-22), the City has allocated $1,000,000 general fund dollars to an Affordable Housing Fund. The City distributes these funds based on a distribution formula approved by City Council in June 2016, and revised July 2019: • 70% to the Housing Trust Fund of Johnson County (HTFJC), at least 20% designated for LIHTC projects • 7.5% to Opportunity Fund • 7.5% to Healthy Homes Program • 10% to programs that assist low-income households secure housing • 5% reserved for emergent situations Accomplishments for these funds are listed below. Housing Trust Fund of Johnson County (HTFJC) Income Maximum: 80% MI (LIHTC must be below 60% MI) Type of Housing: Rental or Owner (LIHTC is rental housing) The Housing Trust Fund of Johnson County (HTFJC), a local non-profit organization, is allocated 70% of the Affordable Housing Fund dollars. The distribution formula requires that at least 20% of the funds received must be designated for Low-Income Housing Tax Credit (LIHTC) projects. Funds are awarded to projects on a quarterly basis through the HTFJC’s Revolving Loan Program. Projects must be in Iowa City’s corporate limits, serve residents at or below 80% AMI, and comply with the City’s Affordable Housing Location Model. Similarly, the HTFJC administers funds to support LIHTC projects in Iowa City that serve households at or below 60% AMI. HTFJC may use up to 8% of the funds for administrative expenses. The funds provided to the HTFJC are pooled together with multiple funding sources including Johnson County, the State Housing Trust Fund and LITHC funding from the Iowa Finance Authority to expand affordable housing opportunities in Johnson County. Funds are used to address priority needs and often can fill gaps not covered by other housing programs. The majority of funds for housing projects are in the form of no or low interest loans that are repaid to the HTFJC for continued investment into more affordable housing projects. While they can fund projects serving households up to 80%, based on prior reports, the far majority of households served have much lower incomes. 2022 Iowa City Affordable Housing Action Plan CITY OF IOWA CITY 17 The Shelter House 501 project received $725,000 in affordable housing fund dollars. Modeled after the successful Cross Park Place project, this housing first project was awarded allocations of $250,000 in FY20 and $475,000 in FY21. The project will provide 36 units of permanent supportive housing to people who are chronically homeless. All individuals will have incomes below 30% AMI. The project is anticipated to be completed in 2022. The FY21 LIHTC set-aside in the amount of $190,000 was awarded to the NEX Senior Apartments project. The project will have a total of 46 units targeted to households below 30% AMI and 60% AMI. The project was not allocated tax credits during the 2021 9% LIHTC funding round; however, the Iowa Finance Authority (IFA) is considering a 4% LIHTC award paired with ARPA funds. IFA is waiting to make a final award to this project based on guidance from the U.S. Treasury for ARPA funds. The Housing Trust Fund Board will determine how long they will hold these funds if a decision is not made in the foreseeable future. HTFJC reports project accomplishments each July for the previous fiscal year. Their annual report is provided to City Council for review. Opportunity Fund, Formerly the Land Banking Fund (7.5%) Income Maximum: Based on request Type of Housing: Based on request The Opportunity Fund is available for any housing opportunity that becomes available that supports the City’s housing goals and is approved by City Council. The Fund allows the City Council the flexibility to take advantage of housing opportunities that arise during the year. Balances remaining at the end of the fiscal under the following categories revert to the Opportunity Fund: Healthy Homes, Secure Housing and Emergent Situations. The current balance in this fund is $546,114. Policy Impact to Date: In FY21, the Opportunity Fund was used to respond to the pandemic to access emergency housing assistance through agreements with Center for Worker Justice and Shelter House which served 182 households. In FY20 the City spent $204,000 to purchase Lot 10 in the Lindemann Subdivision, Part 8, for the future construction of six affordable townhomes. It is hoped the City can work with a developer to combine this lot with vacant lots in various neighborhoods for a future Low Income Housing Tax Credit Project (LIHTC) for families. 2022 Iowa City Affordable Housing Action Plan CITY OF IOWA CITY 18 Healthy Homes Program (7.5%) Income Maximum: 80% MI Type of Housing: Owner or Rental Healthy Homes is a continuation of the City’s Invest Health initiative which aims to reduce health disparities for residents living in neighborhoods with higher rates of poverty. The program provides a grant of up to $7,500 per household for the repair/replacement of items that contribute to poor indoor air quality. Projects might include repairing plumbing to stop moisture damage, adding or replacing an air conditioner to control moisture and air quality, or replacing carpeted areas with luxury vinyl plank flooring. To qualify, households must be under 80% AMI and include a member diagnosed with a lung disorder such as asthma or COPD. Preference is given to households with a child who has been diagnosed with asthma. The program is offered in partnership with the University of Iowa College of Nursing, which provides health education to applicants to self-manage their condition and maintain a healthy home. The Iowa City Free Medical Clinic also partners with the program to provide smoking cessations programs to those interested and mattress encasements when needed. Program Impact to Date: Twelve projects have been completed and three more are underway. Due to COVID, projects have experienced some delays, but assessments have resumed. Income Data: <30% MI – 7 Households 31-60% MI – 3 Households 61-80% AMI – 2 Households Type of Housing – 8 Rental, 4 Owner-Occupied Race/ethnicity not collected. Secure Housing Programs (10%) Income Maximum: 50% MI Type of Housing: Rental Of the total amount available under the distribution formula for this activity, 70% is allocated for security deposit assistance. The City entered a partnership with CommUnity Crisis Services and Food Bank, a local non-profit organization, to administer a security deposit assistance program for households under 50% of area median income, with preference for those under 30% median income. The maximum 2022 Iowa City Affordable Housing Action Plan CITY OF IOWA CITY 19 assistance is limited to the amount of the required security deposit. In FY21, an additional $35,000 in local COVID relief funds were allocated to this program. Program Impact to Date: In FY21 the program assisted 99 households secure housing. 30% of the funds available under the distribution formula for this activity is dedicated to a landlord risk mitigation program that is to be developed. The City plans to work with the Johnson County Local Homeless Coordinating Board to establish a risk mitigation program with a $30,000 contribution. Funds would be available for uncovered damages or loss of rent to encourage landlords to rent to difficult to house tenants. Efforts have been delayed due to the demand for other housing programs such as eviction prevention, rapid rehousing and security deposit assistance. In FY22, the $30,000 for this program was reallocated to security deposit assistance. The City will work with the Local Homeless Coordinating Board to establish this program when time and staffing allow. Emergent Situations (5%) Income Maximum: Based on request Type of Housing: Based on request The fund is used for low-income households with unanticipated housing costs due to actions not within their control. Previous assistance was given to tenants displaced due to the redevelopment of the Rose Oaks multi-family property, relocation assistance to Hawkeye Trailer Court residents to relocate to other permanent housing, and the winterization of Forest View mobile homes. In FY21 funds were again used for winterization of mobile homes in Forest View as well as emergency assistance and an Eviction Diversion Program. If a balance remains at the end of the year, it is applied to the Opportunity Fund. Other Programs and Policies Affordable Housing Location Model Policy City Council adopted the Affordable Housing Location Model (AHLM) in 2011 to determine where new housing assisted with City funds including CDBG/HOME could be located. The model has three goals: 1. Not further burdening neighborhoods and elementary schools that already have issues related to a concentration of poverty. 2. Having diverse neighborhoods in terms of range of incomes. 3. Determining the views of the Iowa City Community School District (ICCSD) on the affordable housing issue. 2022 Iowa City Affordable Housing Action Plan CITY OF IOWA CITY 20 Housing projects receiving city funding cannot be located within elementary school districts with higher than 50% free and reduced lunch rates, within 400 feet of two or more existing subsidized units, or areas with crime densities in the 95th percentile. Exceptions to these criteria include owner-occupied housing, rental rehabilitation, or units designated for the elderly or people with disabilities. The Riverfront Crossings District is also exempt as this area is subject to an Affordable Housing Requirement. The model criteria were updated in 2017 and the map is updated annually by staff. Policy Impact to Date: Since the model was created, the City has not subsidized any new housing that is subject to the policy in prohibited elementary districts. Annexation Policy Income Maximum: Based on request Type of Housing: Based on request The annexation policy was adopted in July of 2018. The policy states that if the annexation is for residential development that will result in the creation of ten (10) or more new housing units, the development will support the City’s goal of creating and maintaining the supply of affordable housing. Such support shall be based on providing affordable units equal to 10% of the total units in the annexed area with an assurance of long-term affordability, preferably for a term of not less than 20 years. Income targets shall be consistent with the City’s existing program requirements. Under the policy, the developer completes an affordable housing application before building permit issuance. The developer can meet the requirement through various methods, including, but not limited to, onsite development of affordable housing, transfer of lots/units to the City or an affordable housing provider; fee-in-lieu paid to the City’s affordable housing fund; and/or participation in a state or federal housing program. Policy Impact to Date: There has been one qualifying annexation since policy adoption. An affordable housing agreement was entered for the Community View subdivision, which is located off American Legion Road west of Scott Boulevard. The agreement requires 17 on-site affordable rental units with a compliance period of 20 years. Construction started on the subdivision in 2021. City Housing Programs Owner-Occupied Housing Rehabilitation Income Maximum: CDBG/HOME, 80% MI, GRIP, 110% MI Type of Housing: Owner 2022 Iowa City Affordable Housing Action Plan CITY OF IOWA CITY 21 The City offers two rehabilitation programs paid through either federal Community Development Block Grant (CDBG) and/or HOME Funds and City general funds. CDBG/HOME funds zero-interest loans and/or grants to income-eligible homeowners to aid in making repairs to their homes. The program assists to maintain the City’s affordable housing stock and preserves neighborhoods. The General Rehabilitation and Improvement Program, GRIP, provides low-interest loans to help homeowners make improvements as well but allows owners to have a slightly higher income and allows more types of projects, such as garage additions not allowed under the federal regulations. Program Impact to Date: $156,503 in CDBG and HOME funds were spent in FY21 on owner-occupied rehabilitation projects serving 15 low-income homeowners. CDBG/HOME Competitive Housing Programs Income Maximum: 60% MI Rental, 80% MI Owner Type of Housing: Rental or Owner Iowa City receives federal CDBG/HOME dollars annually to fund a wide range of activities including building, buying, and/or rehabilitation of affordable housing for rent or homeownership. Funds are made available to housing providers each year through a competitive application process. While rental beneficiaries must be below 60% of median income and homeowners below 80% of median income, most program beneficiaries have much lower incomes. Program Impact to Date: In FY21, $393,552 in HOME funds were spent to assist 31 low-income households with affordable rental or homeownership opportunities. These projects also leveraged over $1.3 million in non-federal dollars. Annual program accomplishments may be found in the City’s Consolidated Annual Performance and Evaluation Report (CAPER) on the City’s website at www.icgov.org/actionplan. Rent Abatement for Emergency Orders Policy Income Maximum: NA Type of Housing: Rental Rent abatement is an enforcement tool used to protect tenants from the financial impact of property owners not addressing housing code violations. Rent abatement is used when landlords have been negligent in addressing housing code violations such as no rental permit and loss of a critical service such as heat or water. The violation directly impacts the tenants, however requiring the unit to be vacated would place an undue burden on the tenant. 2022 Iowa City Affordable Housing Action Plan CITY OF IOWA CITY 22 Please note: Rent abatement must be initiated by the City’s Senior Housing Inspector. It is important that tenants don’t stop paying rent unless they have a written rent abatement notice issued by the City as they risk eviction for non-payment of rent otherwise. Policy Impact to Date: The Council approved the code change in October of 2017. The City has issued four rent abatement orders to date—three for no rental permits and one for a serious electrical issue. While the City has used the tool sparsely, the tool has been very effective in achieving compliance with the housing code. Riverfront Crossings Affordable Housing Requirement Policy Income Maximum: 60% MI Rental, 110% MI Owner Type of Housing: Rental or Owner The Riverfront Crossings zoning ordinance requires any development containing ten or more dwelling units on land zoned a riverfront crossings zoning designation to provide affordable housing units in an amount of at least 10% of the total dwelling units for a period of ten years. This can be achieved by onsite owner-occupied affordable housing, onsite affordable rental housing, a fee-in-lieu contribution to an affordable housing fund, off-site affordable housing, and/or contribution of land. Upon rezoning, property owners enter into an affordable housing agreement outlining how they will meet this requirement. Funds received from fee-in-lieu payments are restricted for use within the Riverfront Crossings District. The fee-in-lieu amount is adjusted every other year based on a formula that analyzes the difference between renting a market rate unit and renting a dwelling unit affordable to an income-qualified household for a period of ten years. The fee is currently $112,853 per unit. Policy Impact to Date: • Created 46 onsite affordable housing units in the Riverfront Crossing District • Fee-in-lieu was paid for 11 units. • Generated $981,950 in fee-in-lieu contributions as of December 31, 2021. Amount includes fees collected for units out of compliance. District Specific Programs Income Maximum: UniverCity 140% MI - has varied since 2011, South District 80% MI Type of Housing: Owner 2022 Iowa City Affordable Housing Action Plan CITY OF IOWA CITY 23 The UniverCity Program created homeownership opportunities in neighborhoods near downtown Iowa City and the University of Iowa campus. The program focused on areas that retain a single-family character and a demand for single family housing, but that also have a large renter population. UniverCity Program Impact to Date: Since 2011, 70 homes were purchased, renovated, and sold through the program. Over $3.5 million in rehabilitation dollars were invested in these properties. In FY20, Neighborhood Services replicated the UniverCity Program model to create the South District Homeownership Program. The City purchases duplexes in the Taylor Drive/Davis Street area. The homes are rehabilitated and sold to income eligible homebuyers, with preference given to residents of the neighborhood. The City’s rehabilitation dollars are provided as a forgivable loan and the City uses federal HOME downpayment assistance to reduce the funds needed by the homebuyer to purchase the home. The City applies through the competitive CDBG/HOME funding process to secure downpayment assistance for the homes. South District Program Impact to Date: • Eleven duplexes (22 units) have been purchased by the City for participation in the South District program. • Three units have been renovated and sold to homebuyers who were previous residents of the neighborhood. Monthly housing costs were under $600/month for these homes. • Three units are currently under renovation and will be sold to income qualified buyers upon completion. • Eight additional duplexes were purchased in FY22. Several units are currently occupied. Once units are voluntarily vacated, they will be rehabilitated and sold for affordable homeownership. The City is partnering with Kirkwood Community College and the Home Builders Association – Vocational Training Council to provide workforce development in the construction trades for Iowa City Community School District (ICCSD) students and women. ICCSD students assisted at 2021-2023 Taylor Drive this past spring with various residential remodeling (shed construction, painting, siding, and cabinet, trim, and door installation). The first Residential Construction Confidence Course for Women started on January 8, 2022. The class provides up to 15 women with an opportunity to learn important residential remodeling and construction skills including, but not limited to, demolition, kitchen remodeling, replacing trim, flooring and doors and basic plumbing. The City hopes to continue these partnerships when there are vacant homes planned for rehabilitation. Tax Exemption for Affordable Rental Housing Policy Income Maximum: 40% MI Type of Housing: Rental 2022 Iowa City Affordable Housing Action Plan CITY OF IOWA CITY 24 The City Council approved a tax exemption policy in October of 2019 to incent the construction of affordable multi-family housing. A 40% tax exemption, for 10 years, is provided on all units in a residential development of over six units. To be eligible, at least 15%, but not more than 20%, of the total units must be leased to households under 40% median income. The rent is limited to what a household at 40% of median income can afford minus the estimated utility allowance for tenant paid utilities. Policy impact to date: The City has received no applications for this program. The program may be a good fit with the Iowa Finance Authority’s 4% LIHTC program. Developers have approached the City about its use, but none have applied to date. Tax Increment Financing (TIF) Policy for Residential Development Income Maximum: 60% MI Rental, 110% MI Owner Type of Housing: Rental or Owner The policy requires that a project in any urban renewal area with a residential component that receives tax increment financing must provide a minimum of 15% of the units as affordable to tenants at or below 60% AMI (area median income) for 20 years. If those housing units are for sale, units will be targeted to households at or below 110% AMI. Developers may be eligible to negotiate a fee-in-lieu of providing on site affordable housing, or to provide affordable housing elsewhere in the community, subject to the City’s sole discretion. If a developer in the Riverfront Crossings District applies for TIF, any financial gap due to affordable housing created by the RFC zoning requirement is the responsibility of the developer. The affordable housing above the 10% requirement in RFC could be TIF eligible if the financial analysis determines a gap. Policy impact to date: • Created 26 units of affordable housing. • An additional 11 units were purchased by the City for permanent affordable housing as a part of the Augusta Place and the Chauncey development agreements. Of these, 5 units were placed in the City’s public housing program and 6 units are managed by the City as permanent affordable housing opportunities. • Generated $1,805,648 in fee-in-lieu contributions from the Tailwinds project in February of 2021. Applied $1,520,000 to the purchase of eight duplexes as part of the South District Homeownership program this past summer. • It is anticipated that the TIF development agreement for Foster Road, approved on 7/17/2018, will generate approximately $2 million for affordable housing over 10 years. The City anticipates collecting $123,210 in FY22 for affordable housing. The amount will 2022 Iowa City Affordable Housing Action Plan CITY OF IOWA CITY 25 fluctuate based on values and rates, but with more construction the values will increase. The funds generated can be used citywide and must be used for affordable housing. SUMMARY OF PUBLIC INPUT The City completed extensive outreach to determine priorities and actions to support affordable housing. Neighborhood and Development Services staff initiated public outreach specific to affordable housing while the City Manager’s Office initiated a multi-phase public input process to get input on how the City should spend the American Rescue Plan Act (ARPA) funds, which provides significant resources to state and local governments to respond to the impacts of the COVID-19 pandemic. Iowa City was allocated $18.3 million. ARPA efforts included: • An online survey that received over 1,800 responses • Listening sessions and staff attendance at neighborhood events (summer 2021) • City Boards, Commissions, Committees and Neighborhood Associations invited to share ideas • Translated informational flyers and survey links shared with non-profit and social service agencies • Meetings with targeted stakeholders such as Catholic Worker House, Agency Impact Coalition, Open Heartland, Iowa Flood Center and community and economic development organizations The most common suggestions heard through the APRA outreach process, as related to housing, include direct financial assistance to those in need who did not receive direct federal stimulus checks and unemployment benefits, investments in long-term affordable housing solutions, and rent, eviction, and foreclosure assistance. Neighborhood and Development staff led public outreach efforts related to primarily affordable housing over the summer that included outreach activities at Wetherby National Night Out, Fairmeadows Party in the Park, CommUnity Crisis Services and Iowa City Compassion food bank distribution days and meetings with University of Iowa Student Government representatives and the City Manager’s Disability Services Coordinating Committee. The minutes of the meetings are attached in the Appendix. Approximately 125 residents from the park activities and the food bank distribution sites completed an activity that asked them “If the City were to invest additional funds for housing, what would help your household’s situation best?” 15 choices were presented. The top five answers can be viewed in the following chart. 2022 Iowa City Affordable Housing Action Plan CITY OF IOWA CITY 26 Wetherby National Night Out 8-3-21 Fairmeadows Party in the Park 8-19-21 CommUnity - Food Bank 8-31-21 IC Compassion - Food Bank 9-23 & 9-29 Total Affordable housing for low-moderate income households (owner-occupied or rental) 18 8 24 27 77 Affordable housing for seniors or those with disabilities 10 10 14 18 52 Downpayment assistance to purchase a home 16 9 9 11 45 Financial counseling to improve credit to buy or rent a home 22 7 2 12 43 Utility (gas, electric, and/or water) assistance 12 6 9 12 39 Full results can be found in the Appendix. Input concerning development regulations to support affordable housing was sought from the Greater Iowa City Area Home Builders Association and the Iowa City Area Realtors Association. Their letters can be found in the Appendix. FORECAST OF LOCAL AFFORDABLE HOUSING REVENUE STREAMS The City has various options to pursue for ongoing financial support for affordable housing initiatives. The City will receive $18.3 million in American Rescue Plan funds and close to $1.8 million in HOME-ARP funds. The Council may direct a portion of these funds for affordable housing, but it would be a one- time allocation. The City may pursue the following sources for ongoing support. The note section identifies any special considerations. 2022 Iowa City Affordable Housing Action Plan CITY OF IOWA CITY 27 SOURCE ANNUAL REVENUE NOTES Local Option Sales Tax $8-14 million Requires a public referendum and neighboring community support. State law now requires that 50% of revenue be applied for property tax reduction. Funds could be coupled to address other needs (roads, parks, public facilities, etc.) Utility Franchise Fee $900,000 per every 1% increase (up to 4% increase possible) Requires City Council vote. The City currently charges 1% and state law allows up to 5%. GO Bond $100,000-$1,000,000+ Requires City Council approval in the annual budget process and competes directly with other capital needs including roads, parks, trails, and public facilities. Increased bonding will push property tax rates up and the City would pay interest on each issue thus increasing project cost. Amount eligible to bonded will vary based on type of project pursued. May necessitate additional annual operating dollars depending on scope of project. Emergency Property Tax Levy Up to $1.3 million Requires City Council approval in the annual budget process. Currently, most of this capacity is dedicated to fund Climate Action efforts. The levy can be adjusted from year to year. Tax Increment Financing (TIF) Varies based on district District wide increment can be used to support affordable housing projects in the same urban renewal area. Supporting a new residential development can support citywide affordable housing efforts if the URA is based on economic development – non LMI residential area. Residential TIF limited to 10 years. • Foster Road TIF will generate $123,210 in FY22 for affordable housing (will generate $1.2-2 million over life of TIF – 10 years). • Tailwinds paid a fee in lieu of $1,805,648 to be used for citywide affordable housing (applied to purchase of 8 duplexes in the South District program) 2022 Iowa City Affordable Housing Action Plan CITY OF IOWA CITY 28 AFFORDABLE HOUSING PRIORITIES/GOALS The City Council’s Strategic Plan objectives include fostering healthy neighborhoods and affordable housing throughout the City. The City strives to do this through: 1. Investing City and federal CDBG/HOME funds to create and/or preserve affordable homes, both rental and owner-occupied housing throughout the City; 2. Supporting our most vulnerable residents, especially those experiencing homelessness or at risk of homelessness, maintain safe, affordable housing; 3. Ensuring equitable growth for all Iowa City residents and minimizing displacement; and 4. Supporting innovation in housing and streamlining processes. 2022 AFFORDABLE HOUSING RECOMMENDATIONS The City has broad powers to support affordable housing through various requirements and funding mechanisms. The City is willing to pursue courses of action to support affordable housing, except when legally prohibited. For example, in the state of Iowa, cities cannot institute rent control. Cities are also preempted by state law from regulating the provisions in a lease between a landlord and a tenant. In 2016 the City of Iowa City adopted an ordinance to protect source of income. The measure prohibited landlords from rejecting housing applicants based solely on their use of housing vouchers or other rental subsidies. The purpose of the Iowa City Human Rights ordinance amendment was to reduce housing discrimination and give all tenants the same consideration for housing. In 2021 the state prohibited cities from passing or enforcing “source of income” ordinances. Any city who adopted a source of income protection may not enforce it after January 1, 2023. The City will continue to work with our various partners to support and encourage affordable housing with the mechanisms and funding sources available to municipalities in Iowa. The Committee’s recommendations for City Council consideration are broken down into three sections: Recommendations for existing policies and programs, recommendations for development regulations and recommendations for programs or policies based on household income. Existing Policies and Programs The Affordable Housing Steering Committee reviewed the City’s current policies and programs. Most programs were found to be effectively increasing or preserving the supply of affordable housing; 2022 Iowa City Affordable Housing Action Plan CITY OF IOWA CITY 29 however, six recommendations were made to either enhance or make the policy or program more effective. 1. Affordable Housing Location Model The model currently aims to distribute subsidized affordable housing more evenly throughout the community and avoid overconcentration in any one neighborhood. While the intent of the model is a worthy goal, the model can restrict supply for much needed affordable housing projects. The committee recommends shifting from a restrictive model to one that incentivizes or prioritizes affordable housing projects in all neighborhoods, especially those neighborhoods with a lack of affordable housing options but does not go so far as to restrict supply of potential locations. If the model is discontinued, it is recommended that there be close monitoring of changes in affordable housing locations within the community. Achieving mixed-income neighborhoods throughout the City should continue to be an overall goal. Recommendation: Discontinue Affordable Housing Location Model and consider incentives or prioritization policies that encourages affordable housing in all neighborhoods. 2. Housing and Community Development Commission (HCDC) Funding Allocation Process The Committee observed that the current funding process for housing projects does not involve detailed staff analysis of applications. Staff have years of professional experience and often understand the funding sources and regulatory environment much more comprehensively than volunteer commissioners. The Committee recommends that the funding process be restructured to ensure staff scoring recommendations are provided upfront to the HCDC. Their recommendations should be considered during the review process to ensure the City is supporting viable, federally compliant projects that meet the City’s priorities for the entire length of the required affordability period. Ultimately, the HCDC can still make alternate recommendations to the City Council but the process will be enhanced by inviting this input from the outset. Furthermore, policy should be developed upfront as to how funds will be allocated to further improve transparency in decision-making (e.g., full funding to top-rated applications, or applications will be pro- rated, or partial funding to applicants based on scores, etc.). The Commission’s final review and ranking should be based on objective and established criteria, priorities, and data. Discrepancies with staff scores should be included in the final recommendations to the City Council. 2022 Iowa City Affordable Housing Action Plan CITY OF IOWA CITY 30 Recommendation: 1) Require staff analysis and funding recommendations before HCDC review; and 2) Further define how funds will be allocated to improve transparency (e.g. full funding for top-rated applications, partial funding based on scores, etc.) 3. Affordable Housing Fund Distribution The overall funding should be increased with consideration given to the budget with a goal of a 3% increase each year. • Allow for greater flexibility in targeted use of funds, for example: o Prioritize deeply affordable housing (0-30%) but do not restrict to only those at that income. o Include Low Income Housing Tax Credit (LIHTC) funding with the Housing Trust Fund of Johnson County (HTFJC) allocation. However, set as a preferred use but not restricted/required. If funding is awarded to a LIHTC project and the project does not get funding from the Iowa Finance Authority (IFA), allow HTFJC to withdraw the award and make those funds available for general applications rather than waiting for the next LIHTC cycle. • Maintain Security Deposit Assistance and implement a Risk Mitigation Fund. Typically, Risk Mitigation Funds cover landlord losses, up to a certain value, but may also include a connection to resources such as tenant/landlord education, credit repair, etc. to increase rental opportunities for households who have difficulty finding a landlord who will accept them due to criminal history, bad credit, bad landlord references, and/or a prior eviction history. • Increase marketing and communications of availability of the different funds. • Periodically review (every 5 years as part of the Consolidated Plan for Housing, Jobs and Services for Low-Income Residents) the affordable housing fund distribution to ensure the set-asides produce/contribute to the desired policy outcomes. • Prioritize partnerships with not-for-profit affordable housing developers to preserve affordable units as their mission is centric to preserving affordability. Recommendation: 1) Allocate funds to the Affordable Housing fund with a goal of a 3% annual increase; 2) Include the LIHTC reservation with the HTFJC allocation. If no LIHTC projects apply during the annual allocation or if an approved LIHTC project does not get IFA funding, allow the HTFJC to make those funds available for general applications; 3) Implement the Risk Mitigation Fund; and 4) Enact policy that prioritizes partnerships with not-for-profit affordable housing developers/organizations to preserve affordable housing units. 4. Support of Non-Profit Housing Provider Capacity 2022 Iowa City Affordable Housing Action Plan CITY OF IOWA CITY 31 Typically, developers receive a developer fee to build or rehabilitate housing projects. This fee is only received if a project is funded. Funds, including operational funds and developer fees, should be provided on a regular basis to non-profit affordable housing providers who build and/or rehabilitate residential housing as long-term investments to build the capacity of local providers. This could include technical assistance in various areas such as housing finance, market analysis, legal issues, property management, green and/or sustainable building practices and affordable housing design. Financial assistance for architectural and engineering expenses for the development of multi-family affordable development, outside of LIHTC projects, is needed to support the development of townhomes, small apartment buildings, and the rehabilitation of existing multi-family developments. The City should increase access by non-profit affordable housing developers to various funding opportunities to incorporate green or sustainable housing practices. Recommendation: Allow non-profit affordable housing developers who build or rehabilitate residential housing to apply for additional funds to support ongoing operations; and 2) Allow developers of affordable housing to apply for technical assistance needs from a variety of City programs, including but not limited to, the Affordable Housing Opportunity Fund and Climate Action grants. 5. Annexation Policy The current policy has only applied to one annexation and thus drawing conclusions is difficult. Staff and some committee members have concerns about the cost implications and viability of requiring permanent affordable housing or greater percentages and compliance periods. This is particularly a concern in a regional housing market where outlying communities that are experiencing robust growth do not have similar policies. Too stringent requirements could have an unintended impact of pushing development into other jurisdictions and thus forgoing any affordable housing requirements and constraining supply in Iowa City. The Committee does believe that permanent affordable housing achieved through dedication of lots to the City or a non-profit housing provider is a goal that should be vigorously pursued with future annexations. If needed, the City should consider contributing funding or exploring unique partnerships such as tax increment financing or tax abatement to achieve the goal of permanent affordable housing in new residential annexations. 2022 Iowa City Affordable Housing Action Plan CITY OF IOWA CITY 32 Recommendation: Encourage, but not mandate permanent affordable housing in new residential annexations. With future annexations explore partnerships and funding opportunities to secure permanent affordability when possible. 6. General Education Increase efforts to educate all tenants about tenant rights and responsibilities and how to address housing code problems, perceived discrimination, or other matters most effectively. Recommendation: Increase efforts to educate all tenants about tenant rights and responsibilities and how to address housing issues. Development Regulations Development regulation is an umbrella term for rules that govern land development. At the local level, zoning is the way the government controls the physical development of land and the kinds of uses to which each individual property may be put. This includes the use, size, height, and design of buildings, and historic preservation requirements. These regulations are contained in the Code of Ordinances of the City of Iowa City as laws adopted by the City’s Legislative body the Iowa City Council. The following are recommended changes to the current land-development regulations to increase the diversity and supply of housing throughout the City: 1. Increase the allowable number and/or type of dwelling units in zoning districts previously limited to only free-standing single-family dwellings. For example: • In Single-Family zoning districts, expand by-right building allowances to permit attached single-family dwellings, such as duplexes and zero-lot line structures, in more locations. • Allow accessory dwelling units in more circumstances and locations. To support student housing, consider ADU’s associated with rental housing (expand from owner-occupied). • Increase the allowable number of bedrooms per dwelling (duplex and attached single- family). 2. Facilitate multi-family dwelling development. For example: • Continue to look for opportunities to purchase land for future resale/development. 2022 Iowa City Affordable Housing Action Plan CITY OF IOWA CITY 33 • Conduct a City-initiated rezoning to allow multi-family housing or mixed use in areas supported by the Comprehensive Plan and served by transit. • Reduce the minimum amount of land needed to qualify for a planned overlay district/planned development. 3. Increase the allowable number of bedrooms per dwelling in multi-family dwellings outside of the University Impact Area. Various state and federal housing programs incentivize housing developments that include units with more than three bedrooms to accommodate large families. Allow larger bedroom sizes to accommodate local, state and federal funding parameters. 4. Create Form Based Code regulations for additional neighborhoods, focusing on growth areas first and then infill locations. Recommendation: 1) Increase the allowable number and/or type of dwelling unit in single family zoning districts by right in more locations. Examples include ADUs, duplexes and zero-lot line structures. 2) Increase the allowable number of bedrooms in duplex and zero-lot line structures in single family zoning districts; 3) Facilitate multi-family development by purchasing land to be developed; 4) Conduct a City initiated rezoning to allow multi-family housing or mixed use in areas supported by the Comprehensive Plan; 5) Allow multi-family units with more than three bedrooms when required to meet local, state or federal affordable housing funding parameters such as the LIHTC program; 6) Encourage infill development flexibility by reducing the minimum amount to land eligible to apply for a planned overlay zoning; and 7) Create form based code regulations for additional neighborhoods, focusing on growth areas first and then infill locations. Programs and Policies Based on Household Income If additional funding is made available, the priority should be on housing for those with the lowest income. In recognizing housing is needed to support a healthy housing market and there needs to be housing options for all incomes and ages throughout the City, recommendations are made for housing for households up to 100% of area median income. 0-30% Median Income Recommendations 1. Support a Landlord Risk Mitigation Fund for hard to house tenants. Landlord risk mitigation programs are intended to add protection to landlords willing to rent to someone with limited income, a poor rental history, or a criminal history. The funds can cover items 2022 Iowa City Affordable Housing Action Plan CITY OF IOWA CITY 34 such as excessive damages to the rental unit, lost rent, or legal fees beyond the security deposit. The Johnson County Local Homeless Coordinating Board plans to develop a program working in collaboration with the City. These programs are most effective at a regional level for expanded housing options and landlord participation. Recommendation: Seek proposals for a local landlord risk mitigation fund for hard to house tenants and secure funding to operationalize it annually. Encourage proposals that seek partnerships with regional entities (Johnson County, Coralville, and North Liberty) to expand housing options and landlord participation. 2. Support non-profit housing providers develop and maintain permanent supportive housing/Housing First models. The Housing First model is a homeless assistance approach that prioritizes providing permanent housing to people experiencing chronic homelessness. The subsidized housing is provided with the ongoing option to participate in supportive services but does not place conditions on the housing. Permanent supportive housing is permanent housing in which housing assistance and supportive services are provided to assist households with at least one member with a disability in achieving housing stability. The City supported Shelter House in the development of Cross Park Place, a Housing First project, that opened in January of 2019. The project houses 24 one-bedroom apartments with on-site offices and an exam room for case managers and partners with health and behavioral health clinicians. The City converted 24 tenant based rental vouchers to project-based vouchers so that those renting at Cross Park Place have a voucher to assist with rent. Due to the success of Cross Park Place, plans are underway for the second Housing First project, “The 501 Project,” for persons facing chronic homelessness. Construction started in 2021. The building will have 36 apartments with a clinic for partnering health clinicians, computer workstations, laundry facilities and a multi-purpose room for tenants. Like Cross Park Place, housing choice vouchers will be converted to project-based vouchers to assist tenants pay rent. The City should continue to provide support for existing permanent supportive/Housing First projects as well as additional efforts to produce additional housing through acquisition, new construction, or rehabilitation. The City should expand efforts to include permanent supportive/Housing first projects to families experiencing chronic homelessness. 2022 Iowa City Affordable Housing Action Plan CITY OF IOWA CITY 35 Recommendation: Continue to support existing permanent supportive/Housing First projects, expanding into projects for families experiencing chronic homelessness. 3. Support major investments. Support non-profit housing providers to significantly increase their supply of permanent supportive housing when granted an opportunity, either through acquisition, new construction or by assisting through creative approaches such as a master lease between non-profit providers and landlords. Under a master lease scenario, a non-profit service provider enters a lease with one or more landlords to secure housing for their participants. The participants in the program pay rent to the non-profit service provider based on the requirements of the program. Consider converting housing choice vouchers to project-based vouchers for projects assisting those experiencing or with a history of homelessness. The City is currently collaborating with the Housing Trust Fund of Johnson County for the allocation of ARPA funds. Funds will be dedicated to support larger investments in affordable housing for acquisition, rehabilitation, or new construction. The goal for the projects selected will be permanent affordability through deed restrictions, land leases or ownership by non-profit entities whose core mission is to provide affordable housing. Recommendation: Allocate ARPA funds and future City funds to support larger investments in affordable housing assisting those up to 60% median income, prioritizing permanent affordability and households with lower incomes. 4. Maintain affordable housing through rehabilitation. Efforts should include grant funds for those improvements that improve energy efficiency and lower tenant utility costs. In all housing, support aging in place initiatives that supports the ability to live in one’s own home safely, independently, and comfortably, regardless of age or ability level. Support safety improvements and emergency repairs to homes, including mobile/manufactured homes. Recommendation: Increase funding for those improvements that improve energy efficiency, lower utility costs, supports aging in place initiatives and improves home safety. Provide grants where feasible. 31-60% Median Income Recommendations 1. Support security deposit assistance. 2022 Iowa City Affordable Housing Action Plan CITY OF IOWA CITY 36 Provide additional funds to support security deposit assistance that allows up to 2 months for those with poor rental history to get housed. The City allocated $70,000 to security deposit assistance in FY22. The amount has been increased twice due to demand to a total of $148,000. Previously, the program allowed up to 2 months of assistance, but due to limited funds available for the remainder of the fiscal year, assistance was limited to $1,000 in a twelve-month period with a preference for tenants referred by Shelter House and the Domestic Violence Intervention Program. Recommendation: Provide additional funds to support security deposit assistance. 2. Support and Expand Eviction Prevention Programs. Due to the pandemic, housing instability has increased dramatically. Evictions are a destabilizing event that can send a family into a cycle of financial and emotional upheaval and affect their current and future prospect for residential stability. The City has allocated over $850,000 to our community partners to maintain housing for those impacted by the pandemic for eviction prevention and eviction diversion. It is anticipated that additional funds through the American Rescue Plan Act (ARPA) will be dedicated for this purpose. Efforts should expand community outreach, especially to landlords, to make more tenants and landlords aware of eviction diversion and prevention programs. Increase efforts to intervene earlier before evictions are necessary with opportunities to mediate, work out payment arrangements and file for rental assistance programs. Recommendation: Support and expand eviction prevention programs. 3. Energy Efficiency Improvements Provide grant funding to complete energy efficiency improvements that reduce a low-income tenant or homeowner’s monthly utility cost. Increase partnerships with non-profit housing providers, including public housing, to complete energy efficiency improvements. Recommendation: Provide additional grant funding for energy efficiency improvements that lower utility costs. 2022 Iowa City Affordable Housing Action Plan CITY OF IOWA CITY 37 4. Downpayment Assistance Support financial assistance to purchase an affordable home. Ensure affordable financing to owner, such as 30-year fixed loans with area lenders. Assistance also includes credit and financial counseling to potential homebuyers or those wanting homeownership. Recommendation: Support downpayment assistance, including credit and financial counseling to potential homebuyers. 61-100% Median Income Recommendations 1. Downpayment Assistance Support financial assistance to purchase an affordable home. Ensure affordable financing to owner, such as 30-year fixed loans with area lenders. Assistance also includes credit and financial counseling to potential homebuyers or those wanting homeownership. Recommendation: Support downpayment assistance, including credit and financial counseling to potential homebuyers. 2. Energy Efficiency Improvements Provide grant funding to complete energy efficiency improvements that reduce a low-income tenant or homeowner’s monthly utility cost. Recommendation: Provide additional grant funding for energy efficiency improvements. 2022 Iowa City Affordable Housing Action Plan CITY OF IOWA CITY 38 Summary Tables Recommendations and Actions Required for Existing Policies and Programs Recommendation Type of Action Required Policy Change Increased Funding Education Discontinue Affordable Housing Location Model and consider incentives or prioritization policies that encourages affordable housing in all neighborhoods. X Require staff analysis and funding recommendations of CDBG/HOME housing applications before HCDC review. X Further define how CDBG/HOME funds will be allocated to improve transparency (e.g. full funding for top-rated applications, partial funding based on scores, etc.). X Allocate funds to the Affordable Housing Fund with a goal of a 3% annual increase. X Affordable Housing Fund: Include the LIHTC reservation with the HTFJC allocation. If no LIHTC projects apply during the annual allocation or if an approved LIHTC project does not get IFA funding, allow the HTFJC to make those funds available for general applications. X Implement the Risk Mitigation Fund. X X Enact policy that prioritizes partnerships with not-for-profit affordable housing developers/organizations to preserve affordable housing units in all housing programs. X Allow non-profit affordable housing developers to apply for additional funds to support ongoing operations (Opportunity Fund, HOME CHDO funds, etc.). X X Allow developers of affordable housing to apply for technical assistance needs from a variety of city programs, including but not limited to, the Affordable Housing Opportunity Fund and Climate Action grants. X X Encourage, but not mandate permanent affordable housing in new residential annexations. With future annexations explore partnerships and funding opportunities to secure permanent affordability when possible. X X Increase efforts to educate all tenants about tenant rights and responsibilities and how to address housing issues. X 2022 Iowa City Affordable Housing Action Plan CITY OF IOWA CITY 39 Recommendations and Actions Required for Development Regulations Applicable to Both Single- and Multi-Family Recommendation Type of Action Required Policy Change Increased Funding Education Encourage infill development flexibility by reducing the minimum amount of land eligible to apply for a planned overlay zoning. X Create form-based code regulations for additional neighborhoods, focusing on growth areas first and then infill locations. X Recommendations and Required Actions for Development Regulations Applicable to Single-Family Recommendation Type of Action Required Policy Change Increased Funding Education Allow by right more types of dwelling units in single family zoning districts such as duplexes and zero-lot line structures in more locations. (Note: Comprehensive Plan amendment may be quired. Possible consultant.) X X Increase the allowable number of bedrooms in duplex and zero- lot line structures in single family zoning districts. X X Allow accessory dwelling units (ADUs) under more circumstances and in more locations. X X Recommendations and Required Actions for Development Regulations Applicable to Multi-Family Recommendation Type of Action Required Policy Change Increased Funding Education Facilitate multi-family development by purchasing land to be developed. X X Conduct a City initiated rezoning to allow multi-family housing or mixed use in areas supported by the Comprehensive Plan. (Note: Comprehensive Plan amendment may be quired. Possible consultant.) X X Allow multi-family dwelling units with more than three bedrooms when required to meet local, state, or federal affordable housing funding parameters such as the LIHTC program. X 2022 Iowa City Affordable Housing Action Plan CITY OF IOWA CITY 40 If additional funds are allocated/reserved for affordable housing, recommendations based on household income are below. 0-30% Median Income Recommendations Seek proposals for a local landlord risk mitigation fund for hard to house tenants and secure funding to operationalize it annually. Encourage proposals that seek partnerships with regional entities (Johnson County, Coralville, and North Liberty) to expand housing options and landlord participation. Continue to support existing permanent supportive/Housing First projects, expanding into projects for families experiencing chronic homelessness. Allocate ARPA funds and future City funds to support larger investments in affordable housing assisting those up to 60% median income, prioritizing permanent affordability and households with lower incomes. Increase funding for those improvements that improve energy efficiency, lower utility costs, supports aging in place initiatives and improves home safety. Provide grants where feasible. 31-60% Median Income Recommendations Provide additional funds to support security deposit assistance. Support and expand eviction prevention programs. Provide additional grant funding for energy efficiency improvements that lower utility costs. Support downpayment assistance, including credit and financial counseling to potential homebuyers. 61-100% Median Income Recommendations Provide additional grant funding for energy efficiency improvements that lower utility costs. Support downpayment assistance, including credit and financial counseling to potential homebuyers. 2022 Iowa City Affordable Housing Action Plan CITY OF IOWA CITY 41 APPENDICES Appendix A: FY17-21 Summary Housing Tables ........................................................................... 42 Appendix B: 2019 Iowa City Fair Housing Choice Study Recommendations ................................ 43 Appendix C: 2020 MPO Update to the Housing Market Analysis................................................. 44 Appendix D: FY20 Year End Affordable Housing Report .............................................................. 45 Appendix E: FY21-25 City Steps Housing Priorities ....................................................................... 46 Appendix F: Update on the 2016 Affordable Housing Action Plan .............................................. 47 Appendix G: Affordable Housing Location Model (November 2020) ........................................... 48 Appendix H: Annexation Policy ..................................................................................................... 49 Appendix I: American Rescue Plan Act (ARPA) 9-2-21 Council Update ........................................ 50 Appendix J: Home Builders Association 12-10-21 Letter .............................................................. 51 Appendix K: Iowa City Area Association of Realtors 12-10-21 Letter ........................................... 52 Appendix L: University of Iowa Student Government 9-23-21 Meeting Minutes ........................ 53 Appendix M: University of Iowa Student Government 11-6-21 Meeting Minutes ...................... 54 Appendix N: Disability Services Coordinating Committee 9-21-21 Meeting Minutes ................. 55 Appendix O: Neighborhood Outreach Summary Results August-September 2021 ..................... 56 2022 Iowa City Affordable Housing Action Plan CITY OF IOWA CITY 42 Appendix A: FY17-21 Summary Housing Tables Summary Tables – Affordable Housing FY2017-FY2021 FY2017 FY2018 FY2019 FY2020 FY 2021 TOTAL % Rehabilitation $608,650 $422,621 $473,157 $555,739 $296,875 $2,357,042 24% Acquisition $250,000 $150,000 $350,000 --$750,000 8% New Construction $133,332 $35,000 $200,000 --$368,332 4% Direct Assistance ---$53,000 $107,000 $160,000 2% Subtotal $991,982 $607,621 $1,023,157 $608,739 $403,875 $3,635,374 37% Rehabilitation $72,149 $167,284 $122,085 $136,000 $19,100 $516,618 5% Acquisition $254,000 $137,000 $448,216 $173,000 $108,000 $1,120,216 11% New Construction $1,799,872 $338,217 $580,000 $186,000 $725,000 $3,629,089 37% Direct Assistance ---$200,000 $738,053 $938,053 10% Subtotal $2,126,021 $642,501 $1,150,301 $695,000 $1,590,152 $6,203,975 63% $3,118,003 $1,250,122 $2,173,458 $1,303,739 $1,994,028 $9,839,350 100% FY2017 FY2018 FY2019 FY2020 FY 2021 TOTAL % Rehabilitation 41 28 28 33 20 150 12% Acquisition 4 3 6 --13 1% New Construction 6 1 5 --12 1% Direct Assistance ---2 4 6 0% Subtotal 51 32 39 35 24 181 14% Rehabilitation 3 12 16 7 26 64 5% Acquisition 12 7 24 4 8 55 4% New Construction 88 17 44 11 47 207 16% Direct Assistance ---29 757 786 61% Subtotal 103 36 84 51 838 1112 86% 154 68 123 86 862 1293 100% Activity Type Total Spent FY217-21 Units Created/ Assisted Average Unit Cost Rehabilitation $2,357,042 150 $15,714 Acquisition $750,000 13 $57,692 New Construction $368,332 12 $30,694 Direct Assistance $160,000 6 $26,667 Rehabilitation $516,618 64 $8,072 Acquisition $1,120,216 55 $20,368 New Construction $3,629,089 207 $17,532 Direct Assistance $938,053 786 $1,193 Compliance Period (FY2017 FY2018 FY2019 FY2020 FY 2021 TOTAL % 30+29 0 32 0 36 97 8% 20-29 22 5 2 7 0 36 3% 15-19 1 0 4 2 2 9 1% 10-14 24 23 27 7 21 102 8% 5-9 30 9 30 9 0 78 6% <5 4 0 0 0 0 4 0% NA 44 31 28 61 803 967 75% Total 154 68 123 86 862 1293 100% Targeted Income lev FY2017 FY2018 FY2019 FY2020 FY 2021 TOTAL % 120-140%9 4 2 1 0 16 1% 80-119%17 4 8 10 26 65 5% 60-79%37 23 31 31 468 590 46% Funding Amount OwnerRenterTotal Units Created/Assisted OwnerRenterTotal OwnerRenter 50-59%40 29 44 15 0 128 10% 30-49%12 0 30 0 131 173 13% <30%33 5 8 29 237 312 24% NA 6 3 0 0 0 9 1% Total 154 68 123 86 862 1293 1 CDBG/HOME FY2017 FY2018 FY2019 FY2020 FY 2021 TOTAL % Rehabilitation $395,439 $293,820 $263,111 $337,292 $206,433 $1,496,095 36% Acquisition 0 0 $100,000 $0 $0 $100,000 2% New Construction $50,000 $35,000 $80,000 $0 $0 $165,000 4% Direct Assistance ---$53,000 $107,000 $160,000 4% Subtotal $445,439 $328,820 $443,111 $390,292 $313,433 $1,921,095 46% Rehabilitation $58,000 $143,994 $116,492 $136,000 $0 $454,486 11% Acquisition $50,000 $137,000 $448,216 $173,000 $108,000 $916,216 22% New Construction $25,000 0 0 $186,000 $0 $211,000 5% Direct Assistance ---$200,000 $502,186 $702,186 17% Subtotal $133,000 $280,994 $564,708 $695,000 $610,186 $2,283,888 54% $578,439 $609,814 $1,007,819 $1,085,292 $923,619 $4,204,983 100% FY2017 FY2018 FY2019 FY2020 FY 2021 TOTAL % Rehabilitation 28 23 20 22 15 108 16% Acquisition 0 0 4 0 0 4 1% New Construction 1 1 2 0 0 4 1% Direct Assistance ---2 4 2 0% Subtotal 29 24 26 24 19 103 15% Rehabilitation 2 9 16 7 0 34 5% Acquisition 6 7 24 4 8 49 7% New Construction 24 0 0 6 0 30 4% Direct Assistance ----474 474 69% Subtotal 32 16 40 17 482 587 85% 61 40 66 41 501 690 100% General Rehabilitation and Improvement Program (GRIP) FY2017 FY2018 FY2019 FY2020 FY 2021 TOTAL % Funding Amount $174,473 $118,901 $210,046 $158,447 $330 $662,197 100% Units Assisted 5 4 8 10 1 28 100% Home Exterior Loan Program (HELP) - discontinued Funding Amount FY2017 FY2018 TOTAL % Owner Rehabilitation $15,156 $9,900 $25,056 47% Renter Rehabilitation $10,000 $18,032 $28,032 53% Total $25,156 $27,932 $53,088 100% Units Assisted FY2017 FY2018 TOTAL % Owner Rehabilitation 4 1 5 56% Renter Rehabilitation 1 3 4 44% Units Assisted/Created OwnerRenterTotal Total Funding Amount OwnerRenter*The City did not collect detailed income data for direct assistance programs in FY21. If the income limit for the program is 80% AMI, those recipients were counted in the 60-79% category. If the income limit is 50% AMI, those recipients were counted in the 30-49% category. Total 5 4 9 100% UniverCity Neighborhood Partnership Program FY2017 FY2018 FY2019 FY2020 FY 2021 TOTAL % Funding Amount $250,000 $150,000 $110,000 $60,000 $570,000 100% Units Assisted 4 3 2 1 10 100% Tax Increment Financing (TIF). FY2017 FY2018 FY2019 FY2020 FY 2021 TOTAL % Funding Amount $1,080,000 $0 $0 $0 $0 $1,080,000 100% Units Assisted 30 2 0 0 0 32 100% Riverfront Crossings Affordable Housing Requirement. FY2017 FY2018 FY2019 FY2020 FY 2021 TOTAL % Units Created[1]0 20 12 5 11 48 100% Fee in Lieu[2]$0 $727,848 $28,396 $0 $0 $756,244 100% Housing Trust Fund of Johnson County (HTFJC) - Iowa City Affordable Housing Fund FY2017 FY2018 FY2019 FY2020 FY 2021 TOTAL % Rehabilitation $23,582 $0 $0 $0 $0 $23,582 1% Acquisition $0 $0 $0 $0 $0 $0 0% New Construction $83,332 $0 $120,000 $0 $0 $203,332 9% Subtotal $106,914 $0 $120,000 $0 $0 $226,914 10% Rehabilitation $4,149 $5,258 $5,593 $0 $0 $15,000 1% Acquisition $0 $0 $0 $0 $0 $0 0% New Construction $694,872 $8,217 $380,000 $192,046 $725,000 $2,000,135 89% Subtotal $699,021 $13,475 $385,593 $192,046 $725,000 $2,015,135 90% $805,935 $13,475 $505,593 $192,046 $725,000 $2,242,049 100% FY2017 FY2018 FY2019 FY2020 FY2021 TOTAL % Rehabilitation 4 0 0 0 0 4 3% Acquisition 0 0 0 0 0 0 0% New Construction 5 0 3 0 0 8 7% Subtotal 9 0 3 0 0 12 10% Rehabilitation 2 4 4 0 0 10 9% Acquisition 0 0 0 0 0 0 0% New Construction 58 5 32 0 36 95 81% Subtotal 60 9 36 0 36 105 90% 69 9 39 0 36 117 100% Low Income Housing Tax Credit (LIHTC) Matching Funds. FY2017 FY2018 FY2019 FY2020 FY2021 TOTAL % Funding Amount 0 $330,000 $200,000 $0 $0 $530,000 100% Units Created 0 29 32 0 0 61 100%RenterTotal Funding Amount OwnerRenterTotal Units Assisted/Created Owner 2022 Iowa City Affordable Housing Action Plan CITY OF IOWA CITY 43 Appendix B: 2019 Iowa City Fair Housing Choice Study Recommendations 171 171 Chapter 5: Impediments & Recommendations This Chapter analyzes factors that create, contribute to, perpetuate, and increase the severity of fair housing issues. Identifying contributing factors is important in assessing why members of protected classes may experience restricted housing choice due to various reasons including, but not limited to, segregation, disparities in access to opportunity, disproportionate housing needs, or ot her issues. Some contributing factors are outside of the ability of the City to control or influence; however, such factors should still be identified and recognized. After discussing and identifying barriers to fair housing choice in Iowa City, it is important to lay out strategies to overcome those barriers. These strategies can then be prioritized and incorporated into subsequent planning processes such as the Consolidated Plan. Ultimately, the City is responsible for taking meaningful actions to move towards completing the strategies identified. Meaningful actions are designed and can be reasonably expected to achieve a material positive change that affirmatively furthers fair housing by, for example, increasing fair housing choice or decreasing dispar ities in access to opportunity. The City of Iowa City is committed to providing fair housing choices for all its residents. The City Code has a broad definition of discriminatory behavior, an inclusive definition of protected classes, and is clear in its lack of tolerance for discriminatory behavior in the housing market. The City’s Comprehensive Plan envisions a city with a variety of housing options for the city’s diverse population. The City’s Zoning Ordinance allows for construction of a variety of housing types at difference price points. And the City’s Building Code does not impose conditions that could restrict fair housing choice for protected classes. However, policies and practices can be improved upon and the City can take additional steps to assure that all protected classes have fair access to housing in Iowa City. These identified impediments to fair housing choice and some strategies to address them comprise the rest of this Chapter. 172 DRAFT FAIR HOUSING CHOICE STUDY | 2019 Analysis of Impediments to Fair Housing Choice 1: Improving Housing Choice One of the primary barriers identified is the lack of adequate housing choices throughout neighborhoods in Iowa City for residents with protected characteristics, who tend to have disproportionately lower incomes. This includes a lack of availability in addition to d iversity in price points, housing types, and locations that would facilitate equal access to housing across the City. While many low-income households in Iowa City are nonfamily student renters, 21% are small families (including single parents) and 15% are elderly. 31% of low-income households have a member with a disability. Many are people of color. Large families face additional challenges in finding appropriate units with the proper price points. Coupled with the City’s expensive housing, this has nega tively impacted fair housing choice within Iowa City. Ensuring a diversity of affordable housing is available in a range of locations and types to promote fair housing choice, especially in areas that promote access to opportunity. This means encouraging the provision of affordable housing for households of all types in Iowa City, including larger units for families with children, smaller accessible units with supportive services for the elderly and persons with disabilities, and adequate housing for students. When considering housing choice, transportation, supportive services, school quality, and other important factors must also be considered. The City should continue to support and encourage a diversity of housing types in areas of opportun ity. The following strategies assist in addressing this impediment to fair housing choice: Strategy 1: Facilitate a Range of Housing Types One strategy to overcome this barrier is to allow a wider variety of development types in areas throughout the community. Since most areas are zoned for low density, single family homes, this will require exploring ways to increase the density and the types of housing allowable in order to further fair housing goals. This strategy includes promotion of more types of housing in more varied locations, which also facilitates the creation of housing units at different price points within neighborhoods. Many non-single family residential developments require rezonings to increase density. The City can proactively increase the amount of land available for development by-right for higher densities, as encouraged by the Comprehensive Plan along major arterials, intersections, and commercial centers. This may be especially helpful where undeveloped land is zoned for single family and would allow a variety of housing types as the land is developed . Staff could proactively look for areas intended for higher densities and initiate a rezoning with the City as the applicant. Eliminating the distinction between single family and multi -family residential zoning districts would have a similar effect, thereby regulating by density rather than type of housing. Similarly, the City could make flexible zoning arrangements, such as OPD overlays, provisional rather than negotiated. This would encourage its use while simultaneously promoting a range of housing. Another way to increase housing variety is to remove restrictions on housing sizes for units that are not detached single family units (i.e. attached single family, duplex, and multi-family dwellings). Specifically, the code places a bedroom cap on these types of units, which may negatively affect the ability of certain protected classes to find appropriate units, such as large families. The City should explore expanding the number of bedrooms from three to four in multi-family units and consider when this would be allowed to better accommodate larger families throughout the City. While this does not necessarily change the type of housing, it does allow a greater diversity of units within a specific type of housing. 173 173 Strategy 2: Lower the Cost of Housing In addition to facilitating a wider range of housing types throughout Iowa City, reducing the cost of housing can also help ensure more varied price points, especially in the more affordable rental and owner markets. The City is already in the process of working with the Home Builders Association to explore ways of reducing costs through modifications to the zoning and development codes. One way to lower the cost of housing is to evaluate building and housing permit fees and their effects on housing costs. Given that these fees have a higher relative impact on lower cost units, it is recommended that the City explore reducing or waiving fees for properties which are operated for affordable housing by non-profit housing organizations to offset negative disproportionate impacts. This could be used for properties in the private market receiving City assistance for a period of time for affordable housing as well. It may also be possible to use property tax policies to lower the cost of housing. While there are already several such programs for the most vulnerable populations, including seniors, persons with disabilities, and affordable rental housing providers, broadening property tax relief could further help preserve lower-income homeownership opportunities for the more than 4,000 low income homeowners in the City. For example, tax exemption policies could be used to increase the affordability of housing. The ongoing viability of the existing housing stock becomes increasingly important as the cost of new housing continues to rise. Continued improvement and maintenance of the current stock is vital. Efforts towards energy conservation can also reduce heating and cooling costs when rehabilitating older homes. All these factors can help lower the cost of housing. Due to the number of student households in the community, the City should explore ways to increase affordability and housing choice for this demographic. Incentives for housing programs should remain available for students from low income families and students who are financially independent. Strategy 3: Continue investment in affordable housing There is a growing gap in the number of affordable homes for those with lower incomes. C ontinuing affordable housing activities is crucial to creating a variety of housing types and price points within the community. This can include new construction, acquisition, and rehabi litation of rental and owner properties. These provide a valuable opportunity to improve housing choice for members of the protected classes who are often low- and moderate-income households. This also includes leveraging City funds to obtain additional affordable housing investment in the community through LIHTC or other programs that assist with the construction of affordable housing opportunities. Assisting renters’ transition to homeownership, in certain cases, may also help stabilize housing payments t hrough fixed rate mortgages in a market experiencing increasing rental rates. Strategy 4: Retrofit Housing for Equal Access In some cases, appropriate units are not be available, especially for those with disabilities. In such cases, it becomes important to allow owners and renters to make housing units accessible so that they have an equal opportunity to use and enjoy a dwelling. Access may include physical access for individuals with different types of disabilities. For example, installing ramps and other accessibility features for individuals with mobility impairments, visual alarms and signals for individuals who are deaf or hard of hearing, and audio signals, accessible signage, and other accessibility features for individuals who are blind or have low vision. To facilitate this need, the City should adopt a Reasonable Accommodation or Modification procedure to their zoning ordinances and other policies. This would allow persons with disabilities to request a reasonable accommodation/modification to 174 DRAFT FAIR HOUSING CHOICE STUDY | 2019 Analysis of Impediments to Fair Housing Choice regulatory provisions, including land use and zoning requirements to facilitate the retrofitting of existing housing. In addition, because many low-income households are elderly and/or disabled, continuing to provide assistance to allow those households to age in place is also important, as is continuing to invest in their housing to ensure it remains safe, decent and affordable . 175 175 2: Facilitating Access to Opportunity Housing that affords access to opportunities, such as high-performing schools, public transportation, employment centers, low poverty, and environmentally healthy neighborhoods may be cost prohibitive or non-existent for persons in certain protected classes, especially for those with lower incomes. High costs can have a greater effect on families with children who need multiple bedrooms and individuals with disabilities who need accessible housing or housing located close to accessible transportation. Currently, Iowa City appears to have some disparate access to opportunity, especially when it comes to access to jobs and other quality of life factors such as affordable childcare. The geographic relationship of employment centers, housing, and schools, and the transportation linkages between them, are important components of fair housing choice. The quality of schools and economic opportunities are often major factors in deciding where to live. Job and school quality are also key components of economic mobility. Ensuring affordable units are available in a range of sizes, locations, and types is essential to providing equal access to opportunities by meeting the needs of individuals with protected characteristics. In Iowa City, ensuring the availability and accessibility of a variety of jobs and training opportunities, is also vital. In addition, affordable childcare should be available and close to a range of housing opportunities, and facilities should be fully accessible to individuals with different types of disabilities to avoid further barriers. As such, siting as it relates to the placement of new housing developments, especially those that are affordable, becomes crucial. This includes new construction or acquisition with rehabilitation of previously unsubsidized housing. Local policies and decisions significantly affect the location of new housing. In addition, the availability, type, frequency, and reliability of public transportation including buses and paratransit for persons with disabilities also affect which households are connected to community assets and economic opportunities. As such, it is important to connect individuals to places they need to go such as jobs, schools, retail establishments, and healthcare. This study proposes a balanced approach to address disparities in access to provide for both strategic investment in areas that lack key opportunity indicators, while opening housing opportunities in areas with existing opportunity through effective mobility options and the preservation and development of a variety of housing in high opportunity areas. Several strategies can assist in addressing this impediment to fair housing choice: Strategy 1: Emphasize Variety in Housing in Areas of Opportunity Areas of opportunity are places where jobs are relatively plentiful and access to education, healthcare, and other amenities is close at hand. Iowa City generally ranks highly when it comes to quality of life. However, some areas of town have less access to opportunity as identified w ithin this Study, especially as it relates to affordable childcare and job access. Analysis suggests there are some discrepancies in services and access to opportunity by race, income, and area. To some extent, this is likely due to clustering of racial and ethnic groups. All protected classes should have an equal opportunity to live throughout Iowa City. Increasing housing variety for a range of household types and price points, in areas with affordable childcare and near job centers is one way to achieve fair housing choice while improving access to opportunities. This strategy complements those related to increasing the variety of available types and prices of housing. The placement of the City’s subsidized housing is governed by the Affordable Housing Lo cation Model (AHLM). The model serves to not place additional subsidized housing in areas that already have a concentration of City-assisted housing and lower incomes as determined by elementary school catchment areas. The model does not apply to housing for persons with disabilities, seniors, the rehabilitation of existing rental housing or for homeownership. The AHLM does not necessarily promote greater variety of price points in areas of opportunity. As such, the City could explore ways to use the 176 DRAFT FAIR HOUSING CHOICE STUDY | 2019 Analysis of Impediments to Fair Housing Choice model or another policy to promote city-assisted housing in low poverty neighborhoods or neighborhoods that provide good access to opportunity. The goal of fair housing choice is to provide sufficient, comparable opportunities for housing for all types of households in a variety of income ranges. Comparable units should have the same household (elderly, disabled, family, large family) and tenure (owner/renter) type; have similar rents/prices; serve the same income group; in the same housing market; and in standar d condition. The goal is not to necessarily have an equal number of assisted units within each neighborhood, but rather that a reasonable distribution of assisted units should be produced each year to approach an appropriate balance of housing choices within and outside neighborhoods over several years. An appropriate balance should be based on local conditions affecting the range of housing choices available for different types of households as they relate to the mix of the City’s population. Strategy 2: Community Investment It is recommended that the City pursue additional investment in neighborhoods with higher concentrations of low income families, especially those with concentrations of persons with protected characteristics, to improve the quality of life for existing residents. This may include a range of activities such as improving housing, attracting private investment, creating jobs, expanding educational opportunities, and providing links to other community assets. The quality and maintenance of housing is especially important to community investment as survey respondents rank it as one of the factors that varies most widely between areas of the City. As a result, the City should continue targeted investment in infrastructure, ameniti es, community facilities, and public services serving lower income households and in low income areas. Amenities such as recreational facilities, grocery stores, pharmacies, and banks are especially important in maintaining a higher quality of life. Housing rehabilitation is also important in maintaining the housing stock and appearance, while new construction in areas that have not received as much recent investment can also be beneficial. Special attention should be given to investments that increase access to housing or that lower housing costs generally, such as energy efficiency improvements. Economic development support near low-income neighborhoods also can create jobs, increase wages, and increase access to amenities. This strategy in conjunction with providing a diversity of housing types in all new neighborhoods creates opportunities of access throughout the City. Preserving the City’s existing affordable housing is also important as part of a balanced approach to affirmatively further fair housing. This can include funding and indirect subsidies for rehabilitation to maintain physical structures, refinancing, affordable use agreements, and incentives for owners to maintain affordability. Similarly, efforts to repair and maintain the infrastructure of existing affordable housing should be part of concerted housing preservation and community investment effort. The City should continue encouraging private investment to advance fair housing from homeowners, developers, and other nonprofit or business initiatives. Securing financial resources (public, for-profit, and nonprofit) from sources inside and outside the City to fund housing improvements, community facilities and services, and business opportunities in neighborhoods will help ensure access to opportunities for all residents. Strategy 3: Enhance Mobility Linkages Throughout the Community Non-automotive transportation is an important part of ensuring equal access from housing to jobs and other amenities in Iowa City. Transportation improvements could significantly improve access to opportunity for employment and other services and amenities for those who rely on public or active transportation. This complements policies to increase the range of housing opportunities near opportunity and employment areas which can reduce spending on transportation-related expenses. 177 177 Strategies to enhance both active and public transportation linkages may include improved coordination with service providers, expansion of active and public transportation to provide ac cess to jobs through improved infrastructure, providing late night/ weekend service, or ensuring adequate coverage to assist with access to opportunities. Investment across the City can also include improved transit facilities and equipment, including bus shelters, and expanded bicycle and pedestrian facilities. Prioritizing ADA access is especially important to further fair housing purposes. 178 DRAFT FAIR HOUSING CHOICE STUDY | 2019 Analysis of Impediments to Fair Housing Choice 3: Increasing Education and Outreach Based on public input, many residents of Iowa City lack awareness about rights under fair housing and civil rights laws, which can lead to under-reporting of discrimination, failure to take advantage of remedies under the law, and the continuation of discriminatory practices. Even those who do know their rights do not always act on them due to feeling it would not be productive or fear of reprisal. This suggests a lack of knowledge and awareness regarding fair housing rights is a major barrier to fair housing choice. Ensuring access to information about housing programs and neighbo rhoods can also facilitate fair housing goals. This is because individuals and families attempting to move to a neighborhood of their choice, especially areas of opportunity, may not be aware of potential assistance or support. In those cases, having quality information related to housing and affordability, available services, and organizations that serve potential tenants, can help those moves be successful. Other relevant info may include listings of affordable housing opportunities or local landlords; mobility counseling programs; and community outreach to potential beneficiaries. Several strategies can assist in addressing this impediment to fair housing choice. Strategy 1: Improve Demand-Side Awareness The demand-side of the housing market includes tenants, homeowners, borrowers, mobile home park residents, and other who need and/or use housing. Generally, these groups do not have any formal training or education regarding their fair housing rights, nor are they formally organized in most cases. This makes it important to raise awareness through advocacy campaigns, education and outreach activities geared toward the general public, and fair housing informational materials for both homebuyers and tenants. Housing Choice Voucher (HCV) holders should especially be informed of their rights, including the right to be free from discrimination based on source of income. In addition to fair housing rights, this should include how to report violations of those rights. It is recommended that the City explore the development of new outreach, education, or informational programs and activities to promote housing opportunities for segments of the community such as persons of color, those not as fluent in English, and for the elderly and persons with disabilities. This should be done in cooperation with other organizations working on furthering fair housing. Ideally, this will increase knowledge of the laws, reduce discriminatory behavior, achieve a better understanding, and reduce negative attitudes concerning people who are racially, ethnically, and culturally diverse or who are disabled. A comprehensive program would help ensure that there is broad knowledge of legal protections for all residents. Beyond fair housing information, providing more generalized information about housing can be beneficial. For example, information for tenants about leasing can improve rental outcomes and homebuyer education can help those less familiar with homeownership, such as long-term renters, overcome challenges as first time homebuyer. Those new to the HCV program can also benefit from additional information about facilities and services available in each neighborhood to assist them with their housing search. This may encourage voucher holders to look for housing in neighborhoods with more access to opportunity. This information can also assist residents moving from high -poverty to low- poverty neighborhoods that have greater access to opportunity assets appropriate for their family. It is important that information is comprehensive (e.g. that the information provided includes a variety of neighborhoods, including those with access to opportunity indicators) and up -to-date (e.g. that the information is actively being maintained, updated and improved). The information should also alleviate fears of retaliation and should showcase the process and concrete outcomes to address those who “didn’t know what good it would do” to report discrimination. 179 179 Strategy 2: Increase Supply-Side Awareness The supply-side of housing includes lenders, appraisers, mortgage insurers, realtors, landlords, and management companies. Unlike the demand-side, these groups are often provided formal training regarding fair housing rights through industry groups or employee training. As such, they require less guidance than the demand-side of housing. However, it is still important that they understand fair housing rights and responsibilities as well, especially small landlords or others who may be less formally integrated within the industry. As such, technical training for housing industry representatives remains an important component of the City’s efforts to affirmatively further fair housing in the communit y. In addition to general fair housing rights, those on the supply -side of housing should also be made aware of best practices and efforts to affirmatively further fair housing through equity, inclusion, fairness, and justice. This could involve providing education regarding marketing in targeted neighborhoods or for protected classes and encouraging advocacy groups to share opportunities for their products and services. Similarly, additional technical training regarding civil rights may include fair housing issues such as the appropriate application of arrest and criminal conviction records, credit policies, prior evictions, leasing and lease termination decision making; and fair housing issues affecting LGBTQ individuals. Pro-active outreach can widen the pool of participating rental housing providers, including both owners of individual residences and larger rental management companies. Meanwhile, the City should encourage these groups to regularly examine and update their policies, procedures, and practices to avoid differential treatment of residents and applicants based on protected characteristics. Similarly, supply-side providers should also be encouraged to examine their clientele profiles to determine whether there are neighborhoods or groups that are underrepresented or unrepresented. Doing so will help supply-side providers to go beyond just understanding fair housing issues towards meaningfully furthering fair housing. Strategy 3: Increase Regulator Awareness The City must ensure those who make decisions regarding public policies and regulations, including public officials, Commission and Board members, and staff, have adequate fair housing training. While this will further fair housing, it may also help inspire confidence in the City’s processes. In addition to general training, one potential method of educating decision -makers would be to train them as fair housing ambassadors who can then help spread the word about fair housing to both demand - and supply-side groups. Strategy 4: Provide meaningful language access Individuals with limited English proficiency (LEP) includes anyone who does not speak English as their primary language and who has a limited ability to read, write, speak, or understand English. Often, t his is tied to foreign-born populations who may not understand English. Increasing meaningful language access regarding fair housing information and housing programs would facilitate housing choice for LEP individuals seeking housing. It is important that housing providers and policy makers ensure that all individuals have access to information regarding fair and affordable housing, regardless of language. In Iowa City, this is particularly salient due to the higher prevalence of foreign-born populations. Relevant City departments maintain Limited English Proficiency (LEP) plans to ensure equal access to knowledge of fair housing and housing assistance. However, the LEP plan likely needs to be updated, especially as the number of foreign-born residents has rapidly grown in recent years. In addition, the City should explore what housing documents are most important to translate to achieve a better understanding of fair housing choice by LEP speakers and to improve communication through language access. 180 DRAFT FAIR HOUSING CHOICE STUDY | 2019 Analysis of Impediments to Fair Housing Choice 4: Operational Improvements Several other barriers to fair housing choice in Iowa City included smaller operational and planning changes that could help affirmatively further fair housing. These include impediments such as administrative processes and regulations which can slow down and/or stop projects that would benefit protected classes, a need for increased regional cooperation for issues that affect housing, a lack of information that could help identify or address other barriers, and a need to improve the transparency of fair housing enforcement. Most of these barriers can be addressed through operational improvements at the City level, though accomplishing in cooperation with others may improve their effectiveness. Strategy 1: Improve Fair Housing Enforcement and Transparency In addition to ensuring awareness of fair housing rights and process, the City needs to improve enforcement and increase transparency in the process, so the public can be aware that complainants obtain relief in a timely and effective manner. Doing so would fight feelings of helplessness and provide certainty to complainants that filing a report helps combat fair housing violations. This may include actively monitoring the outcomes of complaints, in addition to making fair housing complaint information more easily visible to the public. Fair housing testing may also assist with transparency and fair housing enforcement. Doing so allows the City to identify whether landlords or realtors, and others involved in the housing market are abiding by fair housing laws. In addition, these tests help the City to better identify and target fair housing outreach. Strategy 2: Review implementing procedures and regulations The City has several new programs, administered by various staff and departments, with various rules that can be confusing to understand, implement and enforce. This problem is exacerbated when the program is combined with federal programs that have rigid, complex rules. This creates a challenging regulatory environment, especially for affordable housing and public service programs. As such, t here are opportunities to harmonize, coordinate, streamline, and define administration and planning. Possibilities include centralizing processes for affordable housing and ensuring they are online; reducing uncertainty for service providers in allocating funds; and harmonizing rules between programs. Similarly, the zoning ordinance has been updated in fragmented ways since its initial adoption. While it generally accommodates the City’s fair housing goals, codes frequently updated can indicate a need for a comprehensive reevaluation. This is a long -term effort. In the meantime, incremental improvements can make the code easier to follow yet still comprehensive and flexible. One simple change is to reclassify community service – long term shelter as a multi-family/mixed use, since it is a long-term residence rather than a public service shelter use. Another similar chan ge is to clarify the definition of nonfamily households; the current City definition is a holdover from before the State modified law to prohibit regulating use based on familial characteristics . In addition, administrative procedures may better promote fair housing choice as compared to some decision-making processes. Updating administrative policies and practices may help support Council objectives in ways that produce more impartial, predictable outcomes. The City should promote funds to organizations committed to affordable housing and who have the capacity to administer long term housing projects. Agencies receiving funds should have the capacity to administer the project for the entire compliance period while enhancing fair housing. By doing so, the City increases the likelihood of maintaining the units as affordable housing after City and federal restrictions are released. 181 181 Regardless, all changes to administrative, zoning, or other public policies and practices should be preemptively evaluated through the lens of fair housing. This is also true as new policy continues to develop, including potential changes to the housing and zoning following the State’s disallowing the use of a rental permit cap. Strategy 3: Improve regional cooperation Regional cooperation includes networks or coalitions of organizations, people, and entities working together to plan for regional development. Cooperation in regional planning can help coordinate responses to identified fair housing issues that cross multiple sectors—including housing, education, transportation, and commercial and economic development—and multiple political and geographic boundaries. As such, encouraging regional cooperation can further fair housing not only for Iowa City, but the entire region. This was also mentioned as a need in many stakeholder meetings. While the City and surrounding jurisdictions cooperate through regional transportation planning and through the Fringe Area Agreement, there are still additional opportunities to better coordinate housing and fair housing planning on a regional level. Projecting development and demand for different types of housing and price points is one way to approach the issue. Doing so can start a d iscussion about how to facilitate housing choice in each of the communities. Communication between staff can also facilitate coordination between jurisdictions. Strategy 4: Improved Data Collection Another impediment is the need for increased data, analysis and reporting. While improving data collection and analysis does not directly overcome a barrier to fair housing choice, it will help identify potential barriers in the future. All of these can also be paired with equity mapping to identify areas of opportunity using factors relevant to fair housing choice. Currently, many of the City’s local housing programs do not require the same level of tracking and reporting regarding protected characteristics of beneficiaries as federal programs. As part of its annual monitoring of these projects, the City should begin tracking and reporting the race, ethnicity, and other protected characteristics of beneficiaries to allow finer levels of analysis and reporting regarding fair housing choice. This will also allow better measurement regarding the extent to which policy and practice changes are impacting outcomes and reducing disparities. In addition, the City should regularly monitor HMDA reports of financial i nstitutions and obtain information on the location of properties that are the subject of loan applications . HMDA data can be used to develop policies to act upon this information such as incentivizing banks with good performance records by only depositing public funds in banks that meet threshold scores. Similarly, location information can help the City guide lender education activities to promote fair housing. Finally, ICHA should regularly analyze its beneficiary and waitlist data to ensure its preferences do not have a disparate impact on those in protected classes and that it is serving the people most in need as determined by the City’s Consolidated Plan. As part of this, ICHA should periodically update an equity analysis to identify if any disparate impacts are identified. 2022 Iowa City Affordable Housing Action Plan CITY OF IOWA CITY 44 Appendix C: 2020 MPO Update to the Housing Market Analysis Update to the 2015 Affordable Housing Market Analysis for the Iowa City Urbanized Area February 2021 ii Prepared by the Metropolitan Planning Organization of Johnson County (MPOJC) and the City of Iowa City Frank Waisath, Associate Transportation Planner Greta Larget, Transportation Planning Intern iii Table of Contents List of Figures and Tables iv Introduction 1 Existing Conditions 2 Population and Demographic Data 2 Economic and Employment Data 7 Poverty 7 Free and Reduced Lunch Program 9 Employment 13 Distribution of Income 16 Median Household Income 17 Income by Age of Householder 18 Basic Housing Trends 21 Household Composition 21 Owner-Occupied versus Renter-Occupied 22 Housing Stock 23 Building Permits 24 Housing Vacancy 25 Housing Costs and Cost Burden 26 Renters 26 Homeowners 28 Income versus Housing Cost 30 Cost Burden Illustrated 31 Appendix A 33 Appendix B 34 iv Figures Figure 1 Population trends, 2010-2019 2 Figure 2 Project population growth 3 Figure 3 Population distribution by age group, 2019 4 Figure 4 Population distribution by race 5 Figure 5 Student population at the University of Iowa 6 Figure 6 Families in poverty – number and percentage 7 Figure 7 Poverty rate by race and ethnicity, 2019 8 Figure 8 Total enrollment and percent of free and reduced lunch students 9 Figure 9 ICCSD Elementary School Boundaries 2019-2020 11 Figure 10 ICCSD Secondary School Boundaries 2019-2020 12 Figure 11 Unemployment by race and ethnicity 14 Figure 12 Employment and mean salary by occupation 15 Figure 13 Household income distribution by jurisdiction 16 Figure 14 Median household income 17 Figure 15 County income distribution by age group 18 Figure 16 Owner-occupied and renter-occupied units 22 Figure 17 Building permits issued by community 2010-2019, single-family and multi-family 24 Figure 18 Vacancy rates 25 Figure 19 Proportion of cost-burdened renters by jurisdiction 26 Figure 20 Median housing value – owner-occupied 28 Figure 21 Proportion of cost-burdened owners by jurisdiction 29 Figure 22 Percent change in median housing value and median household income by jurisdiction, 2014-2019 30 Figure 23 Median gross rent vs. 30% of monthly wages by selected industries 31 Figure 24 Percent of monthly wage needed to pay median rent (2019) for selected Industries 32 v Tables Table 1 Historical population trends 2 Table 2 Population distribution by age group, 2019 3 Table 3 Poverty rates 7 Table 4 Poverty rates, 2016 8 Table 5 Free and reduced lunch program data by school and year, ICCSD and CCASD 10 Table 6 Unemployment rates in civilian labor force by jurisdiction, county, state, and nation 13 Table 7 Median household income by jurisdiction 17 Table 8 Median household income by race of householder, 2019 17 Table 9 Household income distribution by age of householder by jurisdiction, 2019 19 Table 10 Family and non-family households 21 Table 11 Households with children 21 Table 12 Total Housing Units by Jurisdiction 23 Table 13 Building permits issued for single and multi-family homes, 2010-2019 24 Table 14 Cost-burdened renters by region, county, and state 26 Table 15 Severely cost-burdened renters by region, county, and state 27 Table 16 Rent burden by race, U.S. 27 Table 17 Cost-burdened homeowners by region, county, and state 29 Table 18 Severely cost-burdened homeowners by region, county, and state 29 Table 19 Change in median gross rental cost by jurisdiction (adjusted for inflation) 31 1 Introduction This document provides an update to the Affordable Housing Market Analysis Update completed by the Metropolitan Planning Organization of Johnson County and the Housing Trust Fund of Johnson County in 2015. This report is intended to compare the socio-economic conditions and housing needs between 2015 and 2019, and to discuss strategies to help meet identified goals for the urbanized area. The urbanized area consists of Coralville, Iowa City, North Liberty, Tiffin, and University Heights . This update to the 2015 document is intended to be a starting point for a newly formed staff steering committee that will examine and address housing affordability in Iowa City. Data presented in this document is largely derived from the U.S. Census Bureau’s American Community Survey (ACS) 5-year estimates for 2010-2014 and 2015-2019. The consistent methodology, statistical rigor, and scale of the ACS data allows for comparisons across time periods. Additionally, county, state, and national data are used to provide broader context as appropriate. At the time of preparation, Decennial Census data for the year 2020 was not yet available for analysis and therefore the economic, financial, and housing impacts of the COVID -19 pandemic are not captured in this document. Data from the 2020 Census should be monitored as it is released throughout 2021 in order to account for effects of the pandemic. Disruptions to the collection schedule and standard operating procedures for the 2020 Census may impact the reporting of these results. 2 Existing Conditions Population and Demographic Data Since the 2010 Census, the population of the urbanized area has grown from 103,141 to an estimated 121,607 in 2019, a 17.9% increase. Iowa City showed the largest percentage of growth in the County over this period. Figure 1: Source: U.S. Census Bureau ACS 2015-2019 5-Year Estimates Across Iowa, populations in rural counties generally decline, while metropolitan areas gain in population. The population of Johnson County increased 8.6% percent between 2014 and 2019, compared to the state’s 2.0% percent increase in population during the same period. Table 1: Historical population trends Year Coralville Iowa City North Liberty Tiffin University Heights Urbanized Area Johnson County Iowa 2019 22,259 74,942 19,227 4,139 1,040 121,607 150,685 3,155,070 2010 18,907 67,862 13,374 1,947 1,051 103,141 130,882 3,046,355 2000 15,123 62,220 5,367 975 987 84,672 111,006 2,926,324 1990 10,347 59,735 2,926 460 1,042 74,510 96,119 2,776,831 1980 7,687 50,508 2,046 413 1,069 61,723 81,717 2,913,808 1970 6,130 46,850 1,055 299 1,265 55,599 72,127 2,825,368 1960 2,357 33,443 334 311 841 37,286 53,663 2,757,537 1950 977 27,212 309 256 446 29,200 45,756 2,621,073 Source: U.S. Census Bureau, Decennial Censuses and ACS 2015-2019 5-Year Estimate 18,907 67,862 13,374 1,947 1,051 103,141 130,882 3,352 7,080 5,853 2,192 -11 18,466 19,803 -5% 10% 25% 40% 55% 70% 85% 100% Coralville Iowa City North Liberty Tiffin University Heights Urbanized Area Johnson County Population Trends, 2010-2019 Population in 2010 Population growth, 2010-2019 3 Over the next 25 years, population is projected to grow in every jurisdiction except University Heights. While North Liberty and Tiffin are both projected to grow significantly compared to their population today, t he majority of the growth in Johnson County will be concentrated in Iowa City. Figure 2: Source: U.S. Census Bureau ACS 2015-2019 & 2010-2014 5-Year Estimates Due to the large student population at the University of Iowa, the urbanized area has proportionally more residents between ages 20 and 24 than other urbanized areas in the state. However, each jurisdiction has a slightly different age composition. In general, Iowa City is centralized around the 20 to 24-year-old age bracket, indicating that the college student population is a significant contributor to the population makeup of the region. The median age is skewed a bit to favor the mid-20s to mid-40s population in Tiffin and North Liberty while Coralville lies just slightly higher than Iowa City. North Liberty has the highest proportion of kids based on the size of the cities in the urbanized area. The general makeup of Johnson County has stayed relatively constant between 2014 and 2019. Table 2: Population distribution by age group, 2019 Age Coralville Iowa City North Liberty Tiffin University Heights Urbanized Area Johnson County Less than 10 2,747 6,512 3,821 594 131 20,185 17,295 10 to 19 2,197 11,953 1,865 377 90 23,696 20,619 20 to 24 2,491 16,859 1,480 227 235 24,398 23,127 25 to 34 4,080 11,694 4,116 591 238 25,726 23,239 35 to 44 2,700 7,596 3,388 576 109 20,365 17,874 45 to 54 2,242 6,414 1,676 370 72 17,530 14,803 55 to 64 2,303 6,081 1,178 280 149 17,826 14,810 65 or more 2,343 7,841 1,305 336 135 20,951 16,810 TOTAL 21,103 74,950 18,829 3,351 1,159 170,677 148,577 Source: U.S. Census Bureau ACS 2015-2019 5-Year Estimates 22,290 75,130 19,501 4,157 1,026 151,140 30,571 99,766 37,823 9,929 1,000 212,540 - 25,000 50,000 75,000 100,000 125,000 150,000 175,000 200,000 225,000 Coralville Iowa City North Liberty Tiffin University Heights Johnson County Projected Population Growth 2019 2025 2030 2035 2040 2045 4 Figure 3: Source: U.S. Census Bureau ACS 2015-2019 5-Year Estimates Figure 4 on the following page shows that m ost cities in the urbanized area have become more ethnically diverse between 2014 and 2019. The previous update from 2015 noted a significant increase in the Hispanic population, which has continued to increase between 2014 and 2019 (See Appendix A for detailed figures and percentages). The most notable increase of racial diversity within the urbanized area was in Coralville and University Heights. However, the relatively small size and limited opportunity for expansion of University Heights is likely allowing the proportions to show more variability. Although Johnson County is generally more racially diverse than Iowa as a whole, it still has a large majority W hite population. 11.7% 11.9% 11.3% 17.7% 20.3% 8.7% 13.0% 13.8% 13.9% 7.7% 11.3% 9.9% 15.9% 10.4% 15.6% 14.3% 20.3% 6.8% 7.9% 22.5% 11.8% 15.6% 15.1% 20.5% 17.6% 21.9% 15.6% 19.3% 12.0% 11.9% 9.4% 17.2% 18.0% 10.1% 12.8% 10.0% 10.3% 6.2% 11.0% 8.9% 8.6% 10.6% 9.9% 10.5% 12.9% 8.3% 6.3% 8.1% 10.9% 11.3% 12.2% 11.6% 10.1% 6.9% 10.4% 11.1% 0%10%20%30%40%50%60%70%80%90%100% Johnson County Urbanized Area University Heights Tiffin North Liberty Iowa City Coralville Population Distribution by Age Group, 2019 Less than 10 10 to 19 20 to 24 25 to 34 35 to 44 45 to 54 55 to 64 65 or more 5 Source: U.S. Census Bureau ACS 2015-2019 & 2010-2014 5-Year Estimates Figure 4: Population Distribution by Race *For detailed percentages for all races, see Appendix A 6 Student enrollment numbers at the University of Iowa have stayed relatively constant over the time frame being studied, with the COVID-19 pandemic potentially accounting for the slight decline in 2020 enrollment. Overall, however, the student population has made a stable and significant contribution to the population of the urbanized area. Figure 5: Source: University of Iowa Admissions 31,387 32,150 31,730 - 5,000 10,000 15,000 20,000 25,000 30,000 35,000 2014 2019 2020 Student Population at the University of Iowa 7 Economic and Employment Data Poverty The US Census Bureau collects data on individuals in poverty by comparing family incomes to thresholds established by the federal government, which are adjusted annually for inflation. The 2014 poverty threshold is defined as $11,670 for one person and $23,850 for a family of four. The 2019 poverty threshold is defined as $12,490 for one person and $25,750 for a family of four. Between 2014 and 2019, Coralville, North Liberty, and University Heights have all increased the proportion of people in poverty while Iowa City and Tiffin have decreased their poverty rates. Johnson County has an increasing proportion of people living in poverty while the overall poverty rate for Iowa is decreasing. Figure 6: Source: U.S. Census Bureau ACS 2015-2019 & 2010-2014 5-Year Estimates Table 3: Poverty rates Year Coralville Iowa City North Liberty Tiffin University Heights Urbanized Area Johnson County Iowa 2014 6.0% 10.3% 4.0% 6.2% 8.0% 6.9% 6.6% 8.2% 2019 9.4% 9.3% 4.4% 1.4% 14.3% 7.8% 7.0% 7.2% Source: U.S. Census Bureau ACS 2015-2019 & 2010-2014 5-Year Estimates 265 1,327 135 29 21 1,938 1,965 439 1,245 206 12 36 1,777 2,268 0% 2% 4% 6% 8% 10% 12% 14% 16% Coralville Iowa City North Liberty Tiffin University Heights Urbanized Area Johnson County Families in Poverty -Number and Percentage 2014 2019 8 Acknowledging racial disparities in poverty and income can help in finding ways to provide equitable access to affordable housing. As shown below, racial and ethnic minorities are more likely to be in poverty than White individuals. Figure 7: Source: U.S. Census Bureau ACS 2015-2019 5-Year Estimates College students are another population to consider for affordable housing policy. Beginning with the 2016 American Community Survey, their needs were calculated separately from the surrounding county and jurisdiction as a whole. College students in Iowa City make up just over half of all people in poverty and just under half of all people living in Johnson County. Because there is a large college student population in the urbanized area, the poverty rate is expected to be higher as many students rely on temporary i ncome sources such as loans and family support. Table 4: Poverty rates, 2016 Place Poverty rates Total Poverty Rate Poverty rate excluding off- campus college students Iowa City 28.0% 13.1% Johnson County 17.9% 9.3% Source: U.S. Census Bureau ACS 2012-2016 5-Year Estimates 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Coralville Iowa City North Liberty Tiffin University Heights Johnson County Iowa Poverty Rate by Race and Ethnicity, 2019 White Black or African American American Indian and Alaska Native Asian Native Hawaiian and Other Pacific Islander Some other race Two or more races Hispanic or Latino origin (of any race) 9 Free and Reduced Lunch Program Schoolchildren whose families’ incomes fall below the poverty line (or meet other similar criteria) are eligible to receive a free or reduced-price lunch. The total number of students in the Iowa City Community School District (ICCSD) and Clear Creek Amana School District (CCASD) eligible to participate in this program has increased by over 50% since 2010. While the school district boundaries do not align with the municipal boundaries of the communities included in the urbanized area, free and reduced lunch data gives a general sense of the magnitude and spatial distribution of poverty. Between 2014 and 201 9, the number of households with children in Johnson County decreased by 2.3%, but the number of FRL participants increased by about 5%. Figure 8: Source: Iowa City Community School District, Clear Creek Amana School District, and Iowa Dept. of Education 10% 15% 20% 25% 30% 35% 40% 45% 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 Total Enrollment and Percent of Free and Reduced Lunch Students ICCSD CCASD ICCSD FRL CCASD FRL 10 Table 5: Free and reduced lunch program data by school and year, ICCSD and CCASD School Year 2009-10 2014-15 2019-20 SCHOOL TOTAL ENROLLED TOTAL FRL FRL RATE TOTAL ENROLLED TOTAL FRL FRL RATE TOTAL ENROLLED TOTAL FRL FRL RATE ELEMENTARY SCHOOLS ALEXANDER N/A N/A N/A N/A N/A N/A 320 225 70.3% AMANA ELEM 129 30 23.3% 193 36 18.7% 117 40 34.2% BORLAUG N/A N/A N/A 399 113 28.3% 454 189 41.6% CC ELEM 335 65 19.4% 343 79 23.0% 276 72 26.1% CVL CENTRAL 429 133 31.0% 397 153 38.5% 442 220 49.8% GARNER N/A N/A N/A 575 107 18.6% 512 179 35.0% GRANT N/A N/A N/A N/A N/A N/A 518 75 14.5% HILLS 144 84 58.3% 111 70 63.1% 179 129 72.1% HOOVER 360 92 25.6% 306 63 20.6% 415 205 49.4% HORN 331 64 19.3% 487 183 37.6% 434 226 52.1% KIRKWOOD 336 199 59.2% 360 262 72.8% 282 202 71.6% LEMME 329 84 25.5% 400 105 26.3% 368 102 27.7% LINCOLN 261 14 5.4% 234 17 7.3% 240 70 29.2% LONGFELLOW 310 56 18.1% 322 65 20.2% 407 167 41.0% LUCAS 415 166 40.0% 403 230 57.1% 329 160 48.6% MANN 275 135 49.1% 221 110 49.8% 239 89 37.2% NORTH BEND 273 67 24.5% 469 90 19.2% 334 63 18.9% OAK HILL N/A N/A N/A N/A N/A N/A 271 77 28.4% PENN 510 142 27.8% 521 100 19.2% 496 65 13.1% ROOSEVELT 307 195 63.5% N/A N/A N/A N/A N/A N/A SHIMEK 201 22 10.9% 208 30 14.4% 203 39 19.2% TIFFIN ELEM N/A N/A N/A N/A N/A N/A 305 86 28.2% TWAIN 244 188 77.0% 374 284 75.9% 205 115 56.1% VAN ALLEN 683 151 22.1% 506 85 16.8% 480 116 24.2% WEBER 540 80 14.8% 488 205 42.0% 570 249 43.7% WICKHAM 485 15 3.1% 500 52 10.4% 413 44 10.7% WOOD 507 333 65.7% 504 373 74.0% 324 227 70.1% MIDDLE SCHOOLS CCA MIDDLE 340 75 22.1% 437 83 19.0% 577 170 29.5% NORTH CENTRAL 396 69 17.4% 471 93 19.8% 581 138 23.8% NORTHWEST 615 200 32.5% 633 214 33.8% 765 312 40.8% SOUTHEAST 688 263 38.2% 794 343 43.2% 817 359 43.9% HIGH SCHOOLS CITY HIGH 1,389 416 29.9% 1592 585 36.8% 1,566 598 38.2% CCA HIGH 495 91 18.4% 589 110 18.7% 661 160 24.2% LIBERTY HIGH N/A N/A N/A N/A N/A N/A 1,096 307 28.0% WEST HIGH 1,789 393 22.0% 1973 440 22.3% 1,460 495 33.9% TATE HIGH 122 84 68.9% 151 77 51.0% 161 86 53.4% Total - Both Districts 13,238 3,906 29.5% 14,961 4,757 31.8% 16,817 6,056 36.0% Source: Iowa City Community School District, Clear Creek Amana School District, and Iowa Dept. of Education 11 Figure 9: 12 Figure 10: 13 Employment The Iowa City urbanized area has had a relatively stable unemployment rate even as the national and state rates fluctuated, potentially due to the stability of The University of Iowa attracting and employing people. The smaller communities and unincorporated areas tend to have lower and decreasing unemployment rates in comparison to Iowa City which is slightly higher. These rates are likely subject to change due to the impact of the COVID-19 pandemic and should be considered for future analysis. Table 6: Unemployment rates in civilian labor force by jurisdiction, county, state, and nation Year Coralville Iowa City North Liberty Tiffin University Heights Johnson County Iowa US 2014 3.5% 4.6% 0.7% 4.2% 2.7% 3.6% 5.4% 9.2% 2019 3.1% 4.7% 1.1% 2.0% 1.5% 3.5% 3.7% 4.5% Source: U.S. Census Bureau ACS 2015-2019 & 2010-2014 5-Year Estimates Unemployment rates have generally decreased between 2014 and 2019, but they are still much higher for racial and ethnic minorities, as shown in Figure 11. Some of the extreme changes in unemployment rates by race can be accounted for by the raw number of people present. For example, in 2014, University Heights did not have anyone who identified as “some other race alone,” and in 2019 they had a 100% unempl oyment rate for people who identified as such, likely indicating that only one or a few people moved to University Heights of that demographic that were unemployed. Only a few people moving would not affect other jurisdictions so dramatically. The chart on page 15, Figure 12, illustrates the percentage of workers by industry in relation to the mean income for that industry in the urbanized area. From left to right, the graph shows the industries with the greatest to least percentage of employed persons. This information is useful to determine how workers in different sectors of employment are affected by the housing market in the community. 14 Figure 11: Source: U.S. Census Bureau ACS 2015-2019 & 2010-2014 5-Year Estimates 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Coralville Iowa City North Liberty Tiffin University Heights Johnson County Iowa US Unemployment by Race and Ethnicity, 2014 White Black or African American American Indian or Alaska Native Asian Native Hawaiian and Other Pacific Islander Some other race Two or more races Hispanic or Latino origin (of any race) 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Coralville Iowa City North Liberty Tiffin University Heights Johnson County Iowa US Unemployment by Race and Ethnicity, 2019 White Black or African American American Indian or Alaska Native Asian Native Hawaiian and Other Pacific Islander Some other race Two or more races Hispanic or Latino origin (of any race) 15 Figure 12: Employment and mean salary by occupation Source: Iowa Wage Survey, 2020 16 Distribution of Income Distribution of household income is a good indicator of how income varies with respect to location and may help jurisdictions better understand their affordable housing needs. Figure 13 below illustrates household income distribution by jurisdiction. Iowa City generally has more people in lower income brackets than the smaller communities, county, and state, possibly due to the large student population. University Heights has the highest number of people in both the highest and the lowest income brackets, indicating strong income disparity among residents. This is also possibly due to University Heights’ proximity to both The University of Iowa and University of Iowa Hospitals and Clinics. Source: U.S. Census Bureau 2015-2019 & 2010-2014 5-Year Estimates Figure 13: Household income by jurisdiction 17 Median Household Income The previous update in 2015 reported nearly a 7% decrease in median household income between 2000 and 2012. Figure 14 below shows an increase in median household income from 2014 to 2019 in every community across the urbanized area. Figure 14: Source: U.S. Census Bureau ACS 2015-2019 & 2010-2014 5-Year Estimates Table 7: Median household income by jurisdiction Year Coralville Iowa City North Liberty Tiffin University Heights Johnson County 2014 $59,822 $42,119 $72,470 $51,000 $52,500 $54,985 2019 $60,321 $49,075 $83,949 $78,713 $68,533 $62,542 Source: U.S. Census Bureau 2015-2019 & 2010-2014 5-Year Estimates The data in Table 8 shows that there is a significant discrepancy in Iowa for median household income based on race. Most notably is the ~$30,000 difference in median household income for W hite and Black households. Unfortunately this data is not available at the county or local level. Table 8: Median household income by race of householder, 2019 State White Black or African American American Indian and Alaska Native Asian Native Hawaiian and Other Pacific Islander Some Other Race Two or More Races Iowa $62,097 $32,139 $36,794 $59,890 $48,173 $47,938 $44,727 Source: U.S. Census Bureau 2015-2019 & 2010-2014 5-Year Estimates $59,822 $42,119 $72,470 $51,000 $52,500 $54,985 $60,321 $49,075 $83,949 $78,713 $68,533 $62,542 $- $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000 $80,000 $90,000 Coralville Iowa City North Liberty Tiffin University Heights Johnson County Median Household Income 2014 2019 18 Income by Age of Householder Showing income distribution by age of householder can help identify which segments of the population may be the most impacted by housing costs. Figure 15 below shows income distribution by age for 2014 and 2019. Of the people earning less than $10,000 per year, just over half of them are under age 25, rather than the expected overwhelming majority, indicating that poverty is affecting more than just college students in the area. Figure 15: Source: U.S. Census Bureau 2015-2019 & 2010-2014 5-Year Estimates When income distribution by age is examined for each community, University Heights has the highest proportion of households with income below $10,000 with Iowa City close behind. When householders under age 25 are discounted, Iowa City has the highest number of households with income below $10,000. In total, there are 2,131 urbanized area households with a householder over the age of 25 and income less than $10,000, two thirds of which are in Iowa City. Iowa City is tied with Coralville for the highest proportion (18%) of households with a householder over the age of 25 with income below $25,000 (characteris tics which are more similar to low-income families than college students). The previous update in 2015 mentioned a significant difference between the low levels of income in Iowa City compared to the rest of the urbanized area, a trend which is no longer as prevalent, as proportions of low-income households have increased in surrounding communities. 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000 2014 2019 2014 2019 2014 2019 2014 2019 2014 2019 2014 2019 2014 2019 2014 2019 2014 2019 2014 2019 Less than $10,000 $10,000 to $19,999 $20,000 to $29,999 $30,000 to $39,999 $40,000 to $49,999 $50,000 to $59,999 $60,000 to $74,999 $75,000 to $99,999 $100,000 to $149,999 $150,000 or more County Income Distribution by Age Group Under 25 25 to 44 45 to 64 65 or moreNumber of Households 19 Table 9: Household income distribution by age of householder by jurisdiction, 2019 Income Coralville Under 25 25-44 45-64 65+ Less than $10,000 247 326 124 55 $10,000 to $19,999 152 224 99 212 $20,000 to $29,999 146 336 109 209 $30,000 to $39,999 319 295 88 138 $40,000 to $49,999 48 277 73 77 $50,000 to $59,999 20 272 156 217 $60,000 to $74,999 58 343 230 131 $75,000 to $99,999 58 351 286 74 $100,000 to $149,999 49 518 490 208 $150,000 or more 17 416 747 262 Income Iowa City Total households below Iowa City’s median income, over age 25 Under 25 25-44 45-64 65+ Less than $10,000 2761 735 528 155 1,418 $10,000 to $19,999 1686 818 386 582 1,786 $20,000 to $29,999 947 895 569 566 2,030 $30,000 to $39,999 589 1034 494 488 2,016 $40,000 to $49,999 332 1135 524 328 1,987 $50,000 to $59,999 221 1019 481 373 $60,000 to $74,999 245 1196 704 498 $75,000 to $99,999 209 1292 1102 589 $100,000 to $149,999 79 1604 1320 784 $150,000 or more 19 935 1730 616 Income North Liberty Under 25 25-44 45-64 65+ Less than $10,000 76 111 16 57 $10,000 to $19,999 0 0 36 94 $20,000 to $29,999 51 159 57 84 $30,000 to $39,999 71 218 189 81 $40,000 to $49,999 124 160 66 77 $50,000 to $59,999 22 292 152 82 $60,000 to $74,999 68 490 236 84 $75,000 to $99,999 156 806 227 173 $100,000 to $149,999 0 1210 363 45 $150,000 or more 0 561 440 54 20 Table 9 (Continued): Household income distribution by age of householder by jurisdiction, 2019 Income Tiffin Under 25 25-44 45-64 65+ Less than $10,000 7 0 3 0 $10,000 to $19,999 6 0 17 30 $20,000 to $29,999 0 14 39 18 $30,000 to $39,999 56 21 11 16 $40,000 to $49,999 53 19 47 40 $50,000 to $59,999 5 41 32 18 $60,000 to $74,999 0 53 45 17 $75,000 to $99,999 0 154 76 26 $100,000 to $149,999 0 246 96 7 $150,000 or more 0 44 30 20 Income University Heights Under 25 25-44 45-64 65+ Less than $10,000 56 21 0 0 $10,000 to $19,999 5 3 11 6 $20,000 to $29,999 31 8 2 0 $30,000 to $39,999 14 0 16 11 $40,000 to $49,999 4 10 4 0 $50,000 to $59,999 4 25 5 0 $60,000 to $74,999 0 27 34 0 $75,000 to $99,999 4 32 6 2 $100,000 to $149,999 0 23 24 25 $150,000 or more 0 47 34 37 Source: U.S. Census Bureau 2015-2019 5-Year Estimates 21 Basic Housing Trends Household Composition Non-family households are very common in the urbanized area, as many college students share housing to reduce costs. Between 2014 and 2019, the proportion of non-family households slightly increased for Coralville, Iowa City, and University Heights and significantly decreased for North Liberty and Tiffin. This is the exact opposite of the trend described in the 2015 update, likely due to the smaller communities’ appeal to newer families. However, there was little measurable change in the overall proportion of non-family households in Johnson County as a whole. Table 10: Family and non-family households 2014 Coralville Iowa City North Liberty Tiffin University Heights Johnson County Iowa Total 7,710 28,843 5,942 832 534 54,850 1,232,228 Family 4,419 12,887 3,386 470 261 29,769 797,031 Non-Family 3,291 15,956 2,556 362 273 25,081 435,197 % Non- Family 42.68% 55.32% 43.02% 43.51% 51.12% 45.73% 35.32% 2019 Coralville Iowa City North Liberty Tiffin University Heights Johnson County Iowa Total 8,457 30,568 7,188 1,307 531 59,134 1,265,473 Family 4,672 13,385 4,682 880 252 32,395 802,826 Non-Family 3,785 17,183 2,506 427 279 26,739 462,647 % Non- Family 44.76% 56.21% 34.86% 32.67% 52.54% 45.22% 36.56% Source: U.S. Census Bureau 2015-2019 & 2010-2014 5-Year Estimates Between 2014 and 2019, the number of households with children decreased in Coralville and Iowa City while increasing in North Liberty, Tiffin, and University Heights. Households with children have different housing needs based on their social and economic characteristics. Factors such as location, size of housing unit, proximity to schools, and presence of other households with children may influence a family’s decision to purchase or rent one home or another. The proportion of housing suitable for family occupancy should correspond to the proportion of families with children. Furthermore, a variety of single and multi-family units provides families with more options to make housing choices based on location. Table 11: Households with children Year Coralville Iowa City North Liberty Tiffin University Heights Johnson County Iowa 2014 2,521 6,240 2,099 269 94 15,070 374,781 2019 2,414 6,045 2,872 504 126 15,453 375,250 Source: U.S. Census Bureau 2015-2019 & 2010-2014 5-Year Estimates 22 Owner-Occupied versus Renter-Occupied Although a 3-to-1 ratio of owner-occupied to renter-occupied units is common in many communities, the urbanized area has nearly a 1-to-1 ratio. The large population of college students is likely a major factor in keeping the proportion of owners and renters more equal. Over the last five years, the proportion of renters has increased in all communities in the urbanized area, except for North Liberty. Overall from 2014 to 2019, the proportion of renter-occupied properties has increased slightly across Johnson County as a whole. Figure 16: Source: U.S. Census Bureau 2015-2019 & 2010-2014 5-Year Estimates Overall, W hite individuals have a higher chance of owning their property than renting it. This trend continues from 2014 to 2019. There are a few exceptions, particularly for Asian residents living in North Liberty and University Heights in 2019, but overall, non-W hite populations have lower rates of homeownership. With the large student population it’s possible that these individuals are choosing to rent, but when the trend is this similar across the urbanized area, it’s likely pointing to a lack of opportunity for home ownership for racial minorities. Appendix B gives more detail about the trends in renter/owner rates present in each jurisdiction over time. 71.1% 71.8% 58.5% 59.6% 52.4% 59.6% 67.6% 72.5% 69.4% 68.4% 47.7% 48.1% 50.6% 56.5% 28.9% 28.2% 41.5% 40.4% 47.6% 40.4% 32.4% 27.5% 30.6% 31.6% 52.3% 51.9% 49.4% 43.5% 0%10%20%30%40%50%60%70%80%90%100% 2019 2014 2019 2014 2019 2014 2019 2014 2019 2014 2019 2014 2019 2014 IowaJohnsonCountyUniversityHeightsTiffinNorthLibertyIowa CityCoralvilleOwner-Occupied and Rental-Occupied Units Owner-occupied Renter-occupied 23 Housing Stock Between 2014 and 2019, all jurisdictions added to their housing stock except University Heights. Tiffin is still significantly increasing its housing stock, a trend that was noted in the previous 2015 update. North Liberty has also continued its trend of increasing housing stock, although not as significantly prior to 2014. Table 12: Total Housing Units by Jurisdiction Coralville Iowa City North Liberty Tiffin University Heights Johnson County 2014 8,168 30,002 6,102 898 574 57,280 2019 9,194 33,254 7,548 1,473 542 63,623 Total Units Added 1,026 3,252 1,446 575 -32 6,343 % Change 13% 11% 24% 64% -6% 11% Source: U.S. Census Bureau 2015-2019 & 2010-2014 5-Year Estimates 24 Building Permits Coralville and Iowa City have significantly increased their building permit approval for multi -family housing units compared to the 2015 update. Iowa City and Coralville increased their multi-family building permits by 311.7% and 1202.5% respectively between 2014 and 2019. Continuing to ensure that an adequate amount of land in the urbanized area is zoned for multi-family developments is necessary to meet this demand. Figure 17: Source: State of the Cities Building Permit Data System, HUD Table 13: Building permits issued for single and multi-family homes, 2010-2019 Year CORALVILLE IOWA CITY NORTH LIBERTY TIFFIN UNIVERSITY HEIGHTS JOHNSON COUNTY UNINCORP. AREA SF MF SF MF SF MF SF MF SF MF SF MF 2010 40 0 153 59 136 0 13 16 0 0 38 0 2011 71 122 126 99 157 20 23 54 0 0 39 0 2012 77 10 223 176 136 20 19 18 0 0 77 0 2013 66 0 219 479 71 47 34 0 0 0 59 0 2014 89 75 226 219 162 93 19 72 0 0 49 0 2015 29 109 151 537 126 0 35 148 0 0 74 0 2016 18 370 263 817 120 0 36 139 0 0 75 0 2017 19 334 213 305 178 0 120 26 0 0 33 0 2018 25 467 132 189 73 51 151 108 0 0 49 9 2019 17 99 98 471 72 21 134 77 0 0 51 2 Subtotal 451 1,586 1,804 3,351 1,231 252 584 658 0 0 544 11 Total 2,037 5,155 1,483 1,242 0* 555 *Data from HUD shows no permits from University Heights despite development of 1 University Place multi -family development. Source: State of the Cities Building Permit Data System, HUD. 451 1586 1804 3351 1231 252 584 658 0 0 544 11 0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 SF MF SF MF SF MF SF MF SF MF SF MF CORALVILLE IOWA CITY NORTH LIBERTY TIFFIN UNIVERSITY HEIGHTS JOHNSON COUNTY UNINCORPORATED AREA Building Permits Issued by Community 2010 -2019 Single-family (SF) & Multi-family (MF) 25 Housing Vacancy Housing vacancy rates are helpful indicators of occupancy turnover and housing mobility. While having some vacancy is ideal to promote population growth, the ideal rate is fairly arbitrary. However, having a rate that’s stable is important in regulating ho using costs and mitigating the cost burden. The average rental vacancy rate in the United States was 8.9% between 2010 and 2014 and was 6.9% between 2015 and 2019. From 2014 to 2019, homeowner vacancy rates decreased in every jurisdiction except for Iowa City while renter vacancy rates increased in every jurisdiction except for University Heights (which remained at 0%). Tiffin has a particularly high rate of rental vacancy that increased between 2014 and 2019. Figure 18: Source: U.S. Census Bureau 2015-2019 & 2010-2014 5-Year Estimates 0.0% 2.0%1.4%1.8% 0.7%0.0% 2.4% 1.5% 5.1% 0.0% 4.0% 7.7% 1.7% 4.1% 0.0% 6.6% 8.0% 17.7% 0.0%0.0% 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% 2014 2019 2014 2019 2014 2019 2014 2019 2014 2019 Coralville Iowa City North Liberty Tiffin University Heights Vacancy Rates Homeowner vacancy rate Rental vacancy rate 26 Housing Costs and Cost Burden The Census collects data on housing costs as a proportion of household income. Housing is considered “affordable” if occupants pay no more than 30 percent of their gross annual income on rent or owner housing costs. Occupants paying more than 30 percent of their gross annual income towards housing are considered “cost-burdened”, while those paying more than 50 percent are considered “severely cost- burdened”. The US Census Bureau defines gross rent as the combined cost of rent and selected utilities, while gross homeowner costs refer to mortgage and insurance payments, and selected utilities. Renters Rents increased 11.3% in Johnson County between 2014 and 2019 after being adjusted for inflation. The proportion of renters in the urbanized area who were considered either cost -burdened or severely cost- burdened was 55.3% in 2014 and 54.0% in 2019. Iowa City was the only jurisdiction to lower its percentage of severely cost-burdened renters, although it still has the highest proportion overall. University Heights ha d the most significant proportion of increase in cost-burdened residents without a similar increase in those severely cost-burdened. Figure 19: Source: U.S. Census Bureau 2015-2019 & 2010-2014 5-Year Estimates Table 14 and 15 indicate that the proportion of cost-burdened renters is similar to that of the state while the proportion of severely cost-burdened renters is far higher in the urbanized area than the state as a whole. Table 14: Cost-burdened renters by region, county, and state Year Urbanized Area Johnson County Iowa Total % Total % Total % 2014 4,125 20.0% 4,467 20.2% 70,024 20.2% 2019 4,322 18.8% 4,517 18.4% 72,234 19.7% Source: U.S. Census Bureau 2015-2019 & 2010-2014 5-Year Estimates 23.0%24.0%19.3%17.3%21.9%19.0%15.7%18.6%8.8%20.2%22.1%26.1%41.3%40.7%14.7%16.3%10.5%14.9%35.6%36.4%0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 2014 2019 2014 2019 2014 2019 2014 2019 2014 2019 Coralville Iowa City North Liberty Tiffin University Heights Proportion of Cost-Burdened Renters by Jurisdiction Cost Burdened Severely Cost Burdened 27 Table 15: Severely cost-burdened renters by region, county, and state Year Urbanized Area Johnson County Iowa Total % Total % Total % 2014 7,295 35.3% 7,483 33.8% 73,433 21.1% 2019 8,116 35.2% 8,343 34.0% 72,505 19.8% Source: U.S. Census Bureau 2015-2019 & 2010-2014 ACS 5-Year Estimates The American Community Survey last tracked data for gross rent as a percentage of household income by race in the 2000 Census, which is no longer a relevant indicator of current racial disparities in affordable housing. However, the United States Government Accountability Office has some information on differences of rental affordability based on race between 2010 and 2017. Overall, W hite and Asian individuals have the highest chance of being able to afford rental housing when compared to Black and Hispanic individuals, as well as people of other races. Despite an overall general improvement of rental affordability, there is still approximately a 10% difference between W hite and Black individuals who are not cost burdened by rent. Table 16: Rent burden by race, U.S. Race Rent Burden 2010 2011 2012 2013 2014 2015 2016 2017 White Not Rent Burdened 52% 52% 53% 54% 54% 55% 56% 56% Moderately Rent Burdened 24% 23% 23% 23% 23% 23% 23% 23% Severely Rent Burdened 24% 25% 24% 23% 23% 22% 22% 22% Black Not Rent Burdened 41% 40% 42% 42% 42% 43% 45% 45% Moderately Rent Burdened 26% 26% 25% 26% 26% 26% 26% 26% Severely Rent Burdened 33% 34% 33% 32% 32% 31% 29% 29% Hispanic Not Rent Burdened 43% 42% 43% 44% 44% 45% 46% 46% Moderately Rent Burdened 27% 28% 27% 28% 28% 28% 27% 27% Severely Rent Burdened 29% 30% 30% 29% 29% 28% 27% 27% Asian Not Rent Burdened 55% 55% 55% 56% 55% 56% 56% 56% Moderately Rent Burdened 21% 22% 21% 21% 21% 21% 21% 21% Severely Rent Burdened 24% 24% 24% 23% 24% 23% 23% 23% Other Not Rent Burdened 47% 46% 46% 48% 48% 50% 49% 50% Moderately Rent Burdened 24% 25% 24% 24% 24% 24% 24% 24% Severely Rent Burdened 29% 29% 29% 28% 28% 26% 26% 26% Source: U.S. Government Accountability Office 28 Homeowners Figure 20 shows that the median housing value for owner-occupied units in the urbanized area increased substantially between 2014 and 2019. The greatest increases in housing value are found in Tiffin at 30% and North Liberty at 27%. The highest median home value was reported in University Heights at $295,700. Figure 20: Source: U.S. Census Bureau ACS 2015-2019 & 2010-2014 5-Year Estimates $189,300$185,500$173,500$179,000$252,900$126,300$227,700$215,100$220,800$233,000$295,700$147,800$ $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 $350,000 Coralville Iowa City North Liberty Tiffin University Heights Iowa Median Housing Value -Owner Occupied 2014 2019 29 Overall, the urbanized area has been making strides in homeownership cost burden. Every jurisdiction except for Coralville had a decrease in their proportion of severely cost-burdened homeowners between 2014 and 2019. Even though Coralville decreased their proportion of cost-burdened owners, the increase of severely cost-burdened owners indicates that some homeowners are increasingly being unable to afford their homes. Every jurisdiction except for Tiffin also had a decrease in their proportion of cost -burdened owners, with North Liberty’s proportion of cost-burdened owners decreasing the by greatest percentage (almost 50%). Figure 21: Source: U.S. Census Bureau ACS 2015-2019 & 2010-2014 5-Year Estimates Table 17: Cost-burdened homeowners by region, county, and state Year Urbanized Area Johnson County Iowa Total % Total % Total % 2014 3,172 13.7% 4,341 13.3% 105,093 11.9% 2019 2,742 11.0% 3,925 11.3% 92,922 10.3% Source: U.S. Census Bureau ACS 2015-2019 & 2010-2014 5-Year Estimates Table 18: Severely cost-burdened homeowners by region, county, and state Year Urbanized Area Johnson County Iowa Total % Total % Total % 2014 1,323 5.7% 1,787 5.5% 54,583 6.2% 2019 1,252 5.0% 1,758 5.1% 51,819 5.8% Source: U.S. Census Bureau ACS 2015-2019 & 2010-2014 5-Year Estimates The U.S. Government Accountability Office (GAO) had some information on rental affordability based on race, but does not have any information on homeownership affordability based on race. Even the Census has never recorded this specific data. With this data, a picture of the racial disparities present in housing affordability could become clearer. 14.2%13.5%12.9%10.8%16.4%8.8%10.6%14.3%8.5%6.5%1.8%3.2%6.8%6.3%5.5%2.5%6.3%5.8%11.3%8.6%0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 2014 2019 2014 2019 2014 2019 2014 2019 2014 2019 Coralville Iowa City North Liberty Tiffin University Heights Proportion of Cost-Burdened Owners by Jurisdiction Cost Burdened Severely Cost Burdened 30 Income versus Housing Cost Coralville, Iowa City, and North Liberty have all had slower growth in income than in housing value while Tiffin and University Heights have had higher rates of income change than housing value. Figure 23: Source: U.S. Census Bureau ACS 2015-2019 & 2010-2014 5-Year Estimates -6.6% 7.9%7.3% 42.9% 20.9%20.3% 16.0% 27.3% 30.2% 16.9% -10% 0% 10% 20% 30% 40% 50% Coralville Iowa City North Liberty Tiffin University Heights Percent Change in Median Housing Value and Median Household Income by Jurisdiction, 2014-2019 Median Income Change Median Housing Value Change 31 Cost Burden Illustrated The National Low Income Housing Coalition’s (NLIHC) annual publication Out of Reach provides data on housing affordability for metropolitan areas, counties, and states. The hourly wage necess ary to afford a 2- bedroom rental unit at Fair Market Rent (FMR) ($1,011) in Johnson County is $19.44, or an annual salary of $40,440. According to data from the Iowa Wage Report, the average salary for eight of the 21 employment sectors in Johnson County are not high enough to afford the fair market rent on a two-bedroom unit in Johnson County. These eight employment sectors account for over half of the employees in Johnson County. To illustrate the magnitude of cost burden in the urbanized area, Figure 23 compares the median gross rent in each community for 2019 versus 30 percent of mean full-time wages for the two industries with the largest workforces. Combined, the Office and Administrative Support and Food Preparation and Serving industries employ more than one in five workers in the urbanized area. The food services industry had the lowest mean salary of any sector - $24,928 in 2019. The office and administration industry employs the largest proportion of workers in the urbanized area at 12%, with a mean salary of $40,137. Figure 23 also illustrates that employees in each industry would have a difficult time finding affordable rental housing in the area. Figure 23: Source: Iowa Wage Survey, 2020 & U.S. Census Bureau ACS 2015-2019 5-Year Estimates Table 19: Change in median gross rental cost by jurisdiction (adjusted for inflation) Median Gross Rent Coralville Iowa City North Liberty Tiffin University Heights 2014 $797 $874 $1,019 $934 $1,300 2019 $896 $967 $1,110 $994 $1,500 Change (%) 12.4% 10.6% 9.0% 6.4% 15.4% Source: U.S. Census Bureau ACS 2015-2019 & 2010-2014 5-Year Estimates $896 $967 $1,110 $994 $1,500 $623 $1,003 $- $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 Coralville Iowa City North Liberty Tiffin University Heights Median Gross Rent vs. 30% of Monthly Wages by Selected Industries 2019 Median Gross Rent 30% of full time monthly wages, Food Preparation and Serving Related 30% of full time monthly wages, Office and Administrative Support 32 To cover median Iowa City rental costs in 2019, a single-income, full-time employee in food services making the average salary for that industry would expect to allocate almost half of their earnings towards rent. An office worker with an average salary would expect to spend just under 30% of their income, falling just below the cost-burden threshold. These proportions are relatively similar for all metro communities with the exception of University Heights, which has a markedly higher median rent. Renters in University Heights earning the average salary in office and administrative support positions and food preparation/serving would be cost burdened and severely cost burdened respectively. Figure 24: Source: U.S. Census Bureau ACS 2015-2019 5-Year Estimates Barriers to Homeownership Homeownership would also likely be unaffordable for many workers in these sectors, especially when considering the added costs of property taxes, utilities, and homeowners’ insurance. A single-income office worker can afford to spend no more than $1,002 monthly (30% of average monthly wages) on homeownership. Estimates from the American Housing Survey (2019) show that in urbanized areas across the country the average monthly cost for insurance is: $91, utilities: $227, property tax: $349, which totals to $667, leaving only $335 for a potential mortgage payment. With over half of the local workforce in occupations that pay less than the local ‘housing wage’ for an average salary the opportunity for renters to save enough money for a down payment and move towards homeownership seems out of reach for many workers. 27% 29% 33% 30% 45% 43% 47% 53% 48% 72% 0%10%20%30%40%50%60%70%80% Coralville Iowa City North Liberty Tiffin University Heights Percent of Monthly Wage Needed to Pay Median Rent (2019) for Selected Industries Office and Administrative Support Food Prep. and Serving 33 Appendix A Figure A-1 below illustrates the complete distribution of population by race for all communities in the urbanized area, with county and state comparisons. PercentTotalPercentTotalPercentTotalPercentTotalPercentTotalPercentTotalPercentTotalPercentTotalWhite79.6%15,67181.0%57,17890.0%13,05388.1%1,69396.6%1,17386.3%136,94784.8%116,05991.4%2,813,097Black or African American9.5%1,8625.8%4,0925.3%7731.1%210.7%84.5%7,2065.1%7,0213.1%95,716American Indian and Alaska Native0.2%460.3%2220.0%00.0%00.0%00.2%3230.2%3160.3%9,688Asian7.7%1,5128.0%5,6182.7%3890.8%161.2%145.0%7,9545.7%7,8551.9%59,726Native Hawaiian and Other Pacific Islander0.0%00.3%2240.0%00.0%00.0%00.1%2350.2%2240.1%1,715Some other race1.6%3122.0%1,4050.2%315.7%1090.0%01.7%2,7611.7%2,3711.3%39,953Two or more races1.4%2742.6%1,8581.8%2574.3%821.6%192.1%3,2822.2%2,9561.9%58,221Hispanic or Latino (of any race)5.6%1,1045.2%3,6856.2%89512.9%2482.2%275.2%8,2235.2%7,0465.3%163,110PercentTotalPercentTotalPercentTotalPercentTotalPercentTotalPercentTotalPercentTotalPercentTotalWhite71.4%15,05778.5%58,85087.5%16,46989.8%3,00983.7%97083.5%142,45181.7%121,40890.0%2,826,070Black or African American13.4%2,8228.3%6,2035.7%1,0671.9%649.0%1046.4%10,9877.3%10,8153.7%116,359American Indian and Alaska Native0.1%290.2%1840.0%00.9%310.7%80.2%3460.2%2880.4%11,976Asian11.1%2,3327.3%5,5013.8%7232.6%863.7%435.5%9,4036.2%9,2712.4%75,741Native Hawaiian and Other Pacific Islander0.0%60.1%830.1%130.0%00.0%00.1%1060.1%1020.1%3,729Some other race2.4%5162.8%2,0720.9%1741.2%410.2%22.1%3,6312.2%3,2391.2%39,048Two or more races1.6%3412.7%2,0572.0%3833.6%1202.8%322.2%3,7532.3%3,4542.1%66,585Hispanic or Latino (of any race)6.9%1,4495.8%4,3564.4%8318.3%2795.2%605.7%9,7085.6%8,3456.0%188,311Johnson CountyIowaUrbanized AreaJohnson CountyIowa2019CoralvilleIowa CityNorth LibertyTiffinU HeightsUrbanized Area2014CoralvilleIowa CityNorth LibertyTiffinU Heights 34 Appendix B This appendix provides information about the renter and owner rates by race for 2014 and 2019. All data for the following charts was gathered from the U.S. Census Bureau American Community Survey 2010 - 2014 and 2015-2019 5-Year Estimates. Figure B-1 illustrates the rates of owning versus renting by race and by jurisdiction, county, and state in 2014. Figure B-1 0%10%20%30%40%50%60%70%80%90%100% White Black or African American American Indian and Alaska Native Asian Native Hawaiian and Other Pacific Islander Some other race Two or more races Coralville Owner vs. Renter by Race, 2014 Renter-occupied housing units Owner-occupied housing units 0%10%20%30%40%50%60%70%80%90%100% White Black or African American American Indian and Alaska Native Asian Native Hawaiian and Other Pacific Islander Some other race Two or more races Iowa City Owner vs. Renter by Race, 2014 Renter-occupied housing units Owner-occupied housing units 35 0%10%20%30%40%50%60%70%80%90%100% White Black or African American American Indian and Alaska Native Asian Native Hawaiian and Other Pacific Islander Some other race Two or more races North Liberty Owner vs. Renter by Race, 2014 Renter-occupied housing units Owner-occupied housing units 0%10%20%30%40%50%60%70%80%90%100% White Black or African American American Indian and Alaska Native Asian Native Hawaiian and Other Pacific Islander Some other race Two or more races Tiffin Owner vs. Renter by Race, 2014 Renter-occupied housing units Owner-occupied housing units 0%10%20%30%40%50%60%70%80%90%100% White Black or African American American Indian and Alaska Native Asian Native Hawaiian and Other Pacific Islander Some other race Two or more races University Heights Owner vs. Renter by Race, 2014 Renter-occupied housing units Owner-occupied housing units 36 Figure B-2 illustrates the rates of owning versus renting by race and by jurisdiction, county, and state in 2019. Figure B-2 0%10%20%30%40%50%60%70%80%90%100% White Black or African American American Indian and Alaska Native Asian Native Hawaiian and Other Pacific Islander Some other race Two or more races Johnson County Owner vs. Renter by Race, 2014 Renter-occupied housing units Owner-occupied housing units 0%10%20%30%40%50%60%70%80%90%100% White Black or African American American Indian and Alaska Native Asian Native Hawaiian and Other Pacific Islander Some other race Two or more races Iowa Owner vs. Renter by Race, 2014 Renter-occupied housing units Owner-occupied housing units 0%10%20%30%40%50%60%70%80%90%100% White Black or African American American Indian and Alaska Native Asian Native Hawaiian and Other Pacific Islander Some other race Two or more races Coralville Owner vs. Renter by Race, 2019 Percent Renter-Occupied Percent Owner-occupied 37 0%10%20%30%40%50%60%70%80%90%100% White Black or African American American Indian and Alaska Native Asian Native Hawaiian and Other Pacific Islander Some other race Two or more races Iowa City Owner vs. Renter by Race, 2019 Percent Renter-Occupied Percent Owner-occupied 0%10%20%30%40%50%60%70%80%90%100% White Black or African American American Indian and Alaska Native Asian Native Hawaiian and Other Pacific Islander Some other race Two or more races North Liberty Owner vs. Renter by Race, 2019 Percent Renter-Occupied Percent Owner-occupied 0%10%20%30%40%50%60%70%80%90%100% White Black or African American American Indian and Alaska Native Asian Native Hawaiian and Other Pacific Islander Some other race Two or more races Tiffin Owner vs. Renter by Race, 2019 Percent Renter-Occupied Percent Owner-occupied 38 0%10%20%30%40%50%60%70%80%90%100% White Black or African American American Indian and Alaska Native Asian Native Hawaiian and Other Pacific Islander Some other race Two or more races University Heights Owner vs. Renter by Race, 2019 Percent Renter-Occupied Percent Owner-occupied 0%10%20%30%40%50%60%70%80%90%100% White Black or African American American Indian and Alaska Native Asian Native Hawaiian and Other Pacific Islander Some other race Two or more races Johnson County Owner vs. Renter by Race, 2019 Percent Renter-Occupied Percent Owner-occupied 0%10%20%30%40%50%60%70%80%90%100% White Black or African American American Indian and Alaska Native Asian Native Hawaiian and Other Pacific Islander Some other race Two or more races Iowa Owner vs. Renter by Race, 2019 Iowa Percent Renter-Occupied Iowa Percent Owner-occupied 2022 Iowa City Affordable Housing Action Plan CITY OF IOWA CITY 45 Appendix D: FY20 Year End Affordable Housing Report Date: September 8, 2020 To: Geoff Fruin, City Manager From: Tracy Hightshoe, Neighborhood and Development Services Director Re: FY20 Affordable Housing Year-End Report (Revised 9/14/2020) The purpose of this report is to provide the City Council and public a report on the City’s affordable housing efforts over the last fiscal year. The City’s Consolidated Plan for Housing, Jobs and Services for Low-Moderate Income Residents (a.k.a. CITY STEPS) outlines how the City will spend its federal dollars for affordable housing over a five-year period. FY20 represents the last year of the 2016-2020 CITY STEPS plan. In addition to the federal dollars received, the City annually allocates general fund dollars to support our Affordable Housing Action Plan through the Affordable Housing Fund and separate allocations. The City Council reviewed and approved the distribution of these funds in June of 2016 and then revised in July of 2019, after a review of the City’s housing programs and initiatives. The City aims to meet the following overlying goals through actions identified in the City’s Consolidated Plan and Affordable Housing Action Plan: 1) Invest City and federal CDBG/HOME funds to create and/or preserve affordable homes, both rental and owner-occupied housing; 2) Support our most vulnerable residents, especially those experiencing homelessness or at risk of homelessness, maintain safe, affordable housing; 3) Ensure equitable growth for all Iowa City residents and minimize displacement; and 4) Support innovation in housing and streamline processes. The City of Iowa City, with its funding partners, made over $12.4 million available for affordable housing in FY20. Of this figure, over $12 million was spent to create and/or assist 1,780 households/units of affordable housing. To avoid duplication of units, beneficiary data for assisted units are typically reported in the year they are completed as often housing projects can take multiple years to complete. The HOME program allows housing projects to take up to five years to complete. FY20 Affordable Housing Highlights: • Completed two Low Income Housing Tax Credit (LIHTC) projects with a total of 61 affordable units for those under 60% median income. Eight of the units are affordable to those at 30% median income and 16 are affordable to those at 40% median income. Total projects costs were estimated at over $14.2 million. • Established a security deposit program with CommUnity Crisis Services to assist those under 50% of median income secure permanent housing. 31 households served since February 2020. • Established eviction/foreclosure prevention programs to assist residents under 80% of area median income financially impacted by COVID-19 maintain their existing housing. • First vacant lot purchased with Opportunity Funds (former land banking funds) in the Lindemann Subdivision, Part 8. The lot is designed for six townhouse units. The land will be held by the City for a future affordable housing project. • Completed the first two homes of the South District program and sold to neighborhood residents under 50% of median income. Both buyers were able to acquire the homes with September 14, 2020 Page 2 estimated monthly housing costs (mortgage, insurance and taxes) of approximately $510. The Fair Market Rent in Iowa City for a two-bedroom unit is $1,011. • Initiated a partnership with Iowa Valley Habitat for Humanity to market, leverage rehabilitation funds and work with interested households in the South District to qualify for 30-year mortgages under the South District Program. • The City’s owner-occupied CDBG/HOME and GRIP programs rehabilitated 30 homes with an investment of over $509,000 to preserve our affordable housing stock. • Nine HOME projects were completed that assisted 28 units and 29 households. • 78 new mainstream vouchers issued from HUD to the Iowa City Housing Authority for those experiencing chronic homelessness with a disabling condition. Leasing started in March 2020. • The Riverfront Crossings Affordable Housing Requirement and Tax Increment Financing (TIF) residential projects have produced 66 affordable units under at least a 10-year compliance period. TIF requires 20 years. • Completed the Analysis of Impediments to Fair Housing Choice. The study identified the impediments to fair housing choice in our community and outlined recommendations to address each barrier. (www.icgov.org/actionplan). The Affordable Housing Fund At the end of FY20, unspent funds that are not allocated to certain projects are carried over to the subsequent year. Prior to July 2019, the City allocated 25% of the Affordable Housing Fund to land banking activities. In FY20 the City spent $204,000 to purchase Lot 10 in the Lindemann Subdivision, Part 8, for the future construction of six townhomes. It is hoped the City can work with a developer to combine this lot with additional vacant lots for a future scattered site Low Income Housing Tax Credit Project (LIHTC) for families. After July 2019, the Council combined this fund with the Opportunity Fund and the amount allocated to various programs and purposes was changed. At the end of FY20, there is $595,000 available in this fund for land acquisition or various housing opportunities. The City is actively working with property owners to acquire additional land. The City allocates 50% of the Affordable Housing Fund to the Housing Trust Fund of Johnson County (HTFJC) for affordable housing activities. In FY20 they received $500,000. $182,046 was spent. The remainder was allocated to the Nex Senior LIHTC project. As the project was not able to secure Low Income Housing Tax Credit (LIHTC) funds from the Iowa Finance Authority (IFA), HTFJC recently repurposed the balance of FY20 funds ($317,954) to the Shelter House Cross Park Place 2.0 project. Shelter House successfully applied for and received another $2.7 million award from IFA in August 2020 to develop a second “Housing First” 36-unit project providing permanent supportive housing for homeless individuals/households with a disabling condition. The estimated total project cost is $6.3 million. The funds will be used for project construction which is anticipated to start in spring 2021. Much like Cross Park Place, the newly approved project will be able to receive project-based vouchers due to the set-aside the City Council established in 2018 for permanent supportive housing projects for persons who are chronically homeless with a disabling condition. Project based vouchers are important to these types of developments as they provide a reliable source of ongoing rental revenue to the owner. The household pays an established amount to the owner (typically approximately 30% of their monthly income) and the Housing Authority pays the balance of rent due to the owner. Cash flow for this specific property will also be improved through the use of September 14, 2020 Page 3 project-based vouchers as Shelter House will be able to charge 100% of the Fair Market Rent for one- bedroom units as opposed to someone who has a tenant-based voucher limited by the rents established by the National Housing Trust Fund. Those rents are approximately 45% less than our Fair Market Rent. $200,000 was allocated to HTFJC for LIHTC projects. No projects in Iowa City were awarded funds in FY20. Administrative funds, up to 5%, are paid to conduct the application process and the monitoring of previously awarded projects. $190,000 is carried forward to the FY21 LIHTC funding round. Applications are typically due to IFA in the fall each year. The City anticipates another Iowa City based application to apply for these funds in the next funding round. The Healthy Homes and Landlord Risk Mitigation initiatives did not spend City funds in FY20. The City received a grant for the Healthy Homes program through the Housing Trust Fund of Johnson County that expires in October 2020. The City utilized these funds for the eight applications received for assistance. The City is working with the Johnson County Local Homeless Coordinating Board (LHCB) to establish a landlord risk mitigation program. No funds were spent in FY20 and this has been delayed due to COVID relief efforts. The City will continue to work with the LHCB to establish a fund in FY21. The FY20 unspent funds from these two initiatives are placed in the Opportunity Fund at the end of the fiscal year. These funds will be applied to future land acquisitions or other affordable housing efforts as designated by City Council. Housing Rehabilitation Programs In FY20 the City completed 30 owner-occupied housing rehabilitation projects through the CDBG, HOME and GRIP programs. Seven of those projects were housing rehabilitation grants for mobile home owners. Housing rehabilitation staff has focused on incorporating sustainable building features into projects and partners with Green Iowa AmeriCorps to complete free home energy audits prior to determining the scope of the rehabilitation project. The HOME program recently expanded to include single-family and duplex rental properties, but no applications have been received to-date. The first South District Program homes were renovated and sold in FY20 at 1232-1234 Sandusky. Staff incorporated several sustainable improvements into the project such as solar panels, spray foam insulation, landscaping and trees, long life-cycle flooring, new windows and doors, and Energy Star rated appliances. The homebuyers were current residents of the South District neighborhood who had rented in the neighborhood for a combined total of 21 years. The UniverCity program continued this year with additional rehabilitation of a duplex property at 520 N. Dodge Street. The property is now available for sale. There is a one-bedroom unit on the first level and an efficiency unit on the second level. A buyer would have the opportunity to live in one unit and rent out the other, or because the home is in a neighborhood commercial zone, the owner could have a neighborhood business on the first floor. 322 Douglass Court was also purchased for the UniverCity program in FY20 and is currently under renovation. A total of 68 homes, with an investment of over $3 million in rehabilitation, have been renovated and sold through the program since 2011. CDBG and HOME Housing Projects FY20 marked the completion of a HOME Tenant-Based Rent Assistance (TBRA) program administered by the Iowa City Housing Authority, which provided rent assistance over a period of four years to a total of 29 households. HOME rental rehabilitation projects were completed by Successful Living and the Housing Fellowship serving five persons with disabilities and four other households under 60% AMI. Three affordable properties were acquired with HOME assistance by Mayor’s Youth Empowerment Program September 14, 2020 Page 4 (MYEP) and Successful Living which provide housing for 11 persons with disabilities. Shelter House used HOME funding for the acquisition of permanent supportive housing that serves five individuals. Habitat for Humanity acquired, constructed and sold three homes. In FY20 the City was also able to secure a waiver from HUD to increase the Community Housing Development Organization (CHDO) operating funds for the Housing Fellowship from $22,000 to $48,000 to maintain staffing levels during the pandemic as they experienced a substantial drop in rental income. This increase in operational funds will continue for FY21. Riverfront Crossings Affordable Housing Requirement & Tax Increment Financing In June 2016 the City adopted an affordable housing requirement in the Riverfront Crossings District where new developments zoned Riverfront Crossings with more than 10 units must provide affordable housing equivalent to 10% of the total units in the development. At the end of FY20, this requirement had created 42 affordable rental units to those at or under 60% of median income. Developers may also pay a fee-in-lieu per unit if they don’t provide on-site units. To date the City has received $756,244 in fee-in-lieu payments for five units, plus repayment for a non-compliance issue. These funds are available for affordable housing opportunities within the Riverfront Crossings District. Tax increment financing supported the creation of 24 additional affordable rental units that are within their compliance period during FY20. The Rise also committed to 33 units of affordable housing in perpetuity due to a local requirement to purchase the property in the Riverfront Crossing District. Summary of Balances Carried Over to FY21 Available for Allocation: Fund/Source Amount Carried over to FY21 Note: Opportunity Fund (Former Land Banking Fund) $595,000 Low Income Housing Tax Credits $190,000 Administered through the Housing Trust Fund. $380,000 available for the FY21 LIHTC funding round. Riverfront Crossings Fee in Lieu Payments $756,244 May only be used in the Riverfront Crossings District. ICHA Affordable Housing Fund $420,000 Reserved for the development/acquisition of low-income replacement housing units. Total: $1,961,244 For reference the following pie charts demonstrate the percentage of FY20 funds spent by funding category: September 14, 2020 Page 5 The City will continue our affordable housing efforts in FY21. The focus in FY21 will be to support our COVID19 response to enable low income residents (under 80% AMI) to maintain their existing housing and create and implement those regulatory changes that provide a diversity of housing in all the City’s neighborhoods. The City hopes to approve and implement the South District Form Based Code in the fall of 2020, amend the Riverfront Crossing Form Based Code and initiate a Comprehensive Plan 75% 12% 6% 5% 2% FY20 -Funds Spent, All Sources Rent Subsidies Rental New Construction Rental Acq./Rehab. Owner Occupied - Acquisiton, Rehab. & Downpayment Other 2% 51% 17% 23% 7% FY20 -Funds Spent, Excluding the ICHA Rent Subsidies Rental New Construction Rental Acq./Rehab. Owner Occupied - Acquisiton, Rehab. & Downpayment Other September 14, 2020 Page 6 amendment that will encourage more density and a diversity of housing in low density single family residential zones. The City will continue to support our COVID housing relief efforts with contracts entered or initiated at the end of FY20 and start of FY21 with CommUnity Crisis Services, Shelter House and the Center for Worker Justice. The City Council recently gave the City Manager authority to increase funding to these programs administratively, up to 1.5 times the original allocation, when needed. The attached spreadsheet outlines the programs, projects and initiatives created or supported in FY20 under their most relevant goal. Many of the projects serve more than one goal but are only reported in one location. City staff will be present at your September 15 work session to review the City’s affordable housing efforts and to answer questions. 2022 Iowa City Affordable Housing Action Plan CITY OF IOWA CITY 46 Appendix E: FY21-25 City Steps Housing Priorities 140 |P a g e Table 44 –Priority Needs SummaryPriority Need Name EXPANSION OF AFFORDABLE RENTAL AND OWNER HOUSING OPTIONS Priority Level High Population Extremely Low Income;Low Income;Moderate Income;Large Families;Families with Children;Elderly Families;Public Housing Residents;Elderly;Frail Elderly;Persons with Mental Disabilities;Persons with Physical Disabilities;Persons with Developmental Disabilities;Persons with Alcohol or Other Addictions;Persons with HIV/AIDS and their Families; and Victims of Domestic Violence Geographic Areas Affected AHLM Eligible Areas Citywide Associated Goals 1.Increase the number of affordable rental housing units including through new construction and acquisition 2.Provide Tenant-based rental assistance (TBRA) 3.Support homebuyer activities such as down payment and/or closing cost assistance Description The City has a strong need to support the development of additional safe, decent, and affordable, units for renters as well as support homebuying activities such as down payment and closing cost assistance for owners.In addition, the City may assist local nonprofits acquire housing units to be rented as affordable housing.Increasing the availability of affordable housing through efforts such as TBRA or rental deposit assistance is another effective way to expand affordable housing options . Basis for Relative Priority High housing costs reduce economic opportunities and access to prosperity. Data analysis and stakeholder input strongly points to high housing costs as a major issue in Iowa City. Stakeholders consistently reiterated the need for affordable housing. 141 |P a g e Priority Need Name PRESERVATION OF EXISTING AFFORDABLE RENTAL AND OWNER HOUSING Priority Level High Population Extremely Low Income;Low Income;Moderate Income;Large Families;Families with Children;Elderly Families;Public Housing Residents;Elderly;Frail Elderly;Persons with Mental Disabilities;Persons with Physical Disabilities;Persons with Developmental Disabilities;Persons with Alcohol or Other Addictions;Persons with HIV/AIDS and their Families; and Victims of Domestic Violence Geographic Areas Affected AHLM Eligible Areas Citywide Housing Rehab Targeted Areas Associated Goals 1.Rehabilitate and improve owner-occupied housing units 2.Rehabilitate and improve renter-occupied housing units Description The preservation of affordable housing options is important and includes activities such as rehabilitation and/or acquisition of affordable units within both the owner and renter markets as well as making accessibility modifications to existing units to allow persons with disabilities to live in their homes more easily or for elderly persons to age in pl ace. Manufactured housing communities are an important component of affordable housing in Iowa City and the City is committed to supporting the continuance of these as a relatively low cost housing type in Iowa City. They are thus included in this goal. Weatherization and energy efficiency upgrades are also supported among other activities that would preserve the number and quality of affordable units and improve the sustainability and reduce long- term utility costs. Basis for Relative Priority Stakeholders reported the need for housing rehabilitation and for access ibility modifications. Rehabilitation or modifications to existing structures is frequently more cost effective than new construction. Additionally, Iowa City generally has high quality housing stock, therefore,rehabilitation is often a more efficient use of funds.Stakeholders also noted that utility costs can be high, which indicates a need for improving weatherization and other possible sustainable improvements that would lower utility costs. 142 |P a g e Priority Need Name HOUSING AND SERVICES TO THE HOMELESS AND THOSE AT-RISK OF HOMELESSNESS Priority Level High Population Chronic Homeless;Individuals;Families with Children;Persons with Mental Illness; Veterans;Persons with HIV/AIDS;Victims of Domestic Violence;Unaccompanied Youth; Extremely Low Income;Low Income;Moderate Income;Large Families;Families with Children;Elderly Families;Public Housing Residents;Elderly;Frail Elderly;Persons with Mental Disabilities;Persons with Physical Disabilities;Persons with Developmental Disabilities; and Persons with Alcohol or Other Addictions Geographic Areas Affected AHLM Eligible Areas Citywide Associated Goals 1.Serve those experiencing homelessness and reduce homelessness Description Providing a range of supportive services and housing assistance to individuals and families experiencing homelessness or who are at risk of homelessness and seeking to move persons to or retaining individuals in stable housing is integral.This includes transitional and permanent supportive housing; shelter operating expenses; health, mental health and other supportive services; homelessness prevention activities including utility assi stance, food pantries and other services that can provide stability and allow individuals and families to stay housed or become housed after experiencing homelessness. Basis for Relative Priority Stakeholders reported the significant need for additional services for those experiencing homelessness or at risk of homelessness. Service providers stated that the complexity of cases has increased over recent years and additional care is needed despite a lack of increased funding to adequately meet the demand. Stakeholders reported an increased need for utility assistance and that this can be an effective means of keeping a household stably housed in the event of financial hardship. 2022 Iowa City Affordable Housing Action Plan CITY OF IOWA CITY 47 Appendix F: Update on the 2016 Affordable Housing Action Plan Date: December 30, 2021 To: Affordable Housing Steering Committee From: Tracy Hightshoe, Neighborhood and Development Services Director Re: Update on the 2016 Affordable Housing Action Plan Affordable Housing Action Plan Update: The Affordable Housing Action Plan, approved on June 21, 2016, identified 15 action steps to encourage and develop additional affordable housing opportunities. To date, the City has completed 14 of the 15 steps with the final action currently in progress. In the spring and summer of 2019, the City comprehensively reviewed the Affordable Housing Action Plan, modified the Affordable Housing Fund’s distribution formula and made additional changes as outlined at the end of this memo. The following table summarizes the steps and their current status. Strategy Status ☒ 1. Continue to fund existing local owner- occupied housing programs including GRIP, South District & UniverCity programs. FY22 budget includes $200,000 for GRIP & $60,000 for the UniverCity and $70,000 for the South District programs. UniverCity Program completed 70 homes with an investment of over $3.5 million in university impacted neighborhoods since 2011. South District – purchased 11 duplexes (22 units), rehabilitated and sold 3 homes, one available for sale and two under renovation. ☒ 2. Adopt an Affordable Housing Requirement for the Riverfront Crossings District. (10% of total units for 10 years or fee in lieu) Completed June 2016. To date, entered agreements for 57 affordable housing units (48 on-site & 9 fee in lieu of units totaling $756,244) ☒ 3. Adopt code amendments that enable the FUSE Housing First (Cross Park Place) use in the community. 24 1-bedroom apartments for persons who are chronically homeless and habitually cycle through mental health services, corrections systems, shelter and support services. Completed June 2016. ☒ 4. Budget Process: Provide a line item for affordable housing (goal of $500,000 based on budget conditions annually). FY22 budgeted $1,000,000 for affordable housing. April 21, 2022 Page 2 ☒ 5. Distribution of Affordable Housing dollars (modified in July of 2019): • 70% to the Housing Trust Fund of Johnson County (HTF), at least 20% designated for LIHTC projects. • 7.5% Opportunity Fund • 7.5% Healthy Homes Program • 10% Programs that assist low-income households secure housing. • 5% reserved for emergent situations (if unused, reserved for Opportunity Fund) The FY22 breakdown of funds: • $700,000 to the HTF, of which $200,000 reserved for LIHTC projects. • $75,000 Opportunity Fund. Unspent accumulated land banking funds from prior years are combined with the Opportunity Fund. There is currently $ available/ • $75,000 Healthy Homes • $100,000 Secure Housing Programs ($70,000 dedicated to a Security Deposit program administered by a local non-profit and $30,000 dedicated to a landlord risk mitigation fund to be established.) • $50,000 reserved for emergent situations. ☒ 6. Hold the $1,500,000* million in Housing Authority funds for an opportunity to leverage significant private investment and/or to develop/acquire low income replacement housing. *$2.5 million was available, $1.0 million committed to the Chauncey units, for a balance of $1.5 million) City Council approved an agreement for Augusta Place on 5/2/2017. The City purchased six units for permanent affordable rental housing for $1,080,000 in FY21. The developer is also providing 12 affordable off-site units, affordable to those at 40% median income for a period of 20 years. City Council approved a developer’s agreement for the Chauncey building on 6/18/2015. The City acquired five units in FY21 at $1,000,000. These units were added to the City’s public housing program. There is approximately $420,000 remaining to develop/acquire low income replacement housing. ☒ 7. Consider an annexation policy that provides for affordable housing contributions. Completed 7/17/2018. 10% of total units affordable for preferably 20 years or more. One annexation since policy adoption for 17 onsite affordable – Community View Subdivision. Started construction in FY21. ☒ 8. Consider use of TIF on a case by case basis to support residential development and/or annexation through the provision of public infrastructure and capture the required LMI set-aside for use throughout the community (Ex: McCollister and Foster Road). Development agreement for Foster Road approved 7/17/18. Anticipated to generate $1-2 million for affordable housing over 10 years. Collections to start in FY22 – Estimated to receive $123,210 for affordable housing. TIF Agreement for Tailwinds project – generated $1,805,648 for affordable housing, Feb. 2021. Paid $1,520,000 for 8 duplexes for the South District program, July 2021. April 21, 2022 Page 3 ☐ 9. Consider regulatory changes to City Code: • Waive parking requirements for affordable housing units. • Review possible changes to the multi- family design standards for all units in an effort to reduce cost and expedite approvals. • Eliminate minimum size requirements for PUDs. • Increase allowable bedrooms from 3 to 4 outside the University Impact Area • Permit more building types by right as opposed to requiring a PUD process (density, multiplex units, cottage clusters, etc.). • Parking waived in Riverfront Crossings for affordable housing, June 2016. • Staff initiated a review by soliciting input from the Home Builders Association and the Johnson County Affordable Homes Coalition. Input has been received and staff will work on implementation as time allows. • Opticos provided recommendations on the allowance of missing middle housing in the City’s existing zoning code through a missing middle pilot project on a lot owned by the City on Ronalds Street in the Northside Neighborhood. Due to the number of conflicting codes, this has been deferred until staff can resolve and implement all necessary changes. ☒ 10. Pursue a form-based code for the Alexander Elementary neighborhood and the Northside. Form based code developed by consultant for the South District (Alexander Elementary neighborhood). Code adopted in November 2021. ☒ 11. Strategically seek LIHTC projects through an RFP process overseen by the HCDC (in conjunction with #5). RFP scheduled annually. Applications submitted to the Housing Trust Fund of Johnson County. ☒ 12. Create a committee of staff, developers and other interested stakeholders to determine the viability and potential parameters of a tax abatement program that would support affordable housing. Council adopted a tax exemption policy on 10/1/2019 to incent the construction of affordable multi-family housing. A 40% tax exemption, for 10 years, on all units in a residential development of over six units based on the following: • At least 15%, but not more than 20%, of the total units are leased to households under 40% median income. • The rent is limited to what a household at 40% of median income can afford minus the estimated utility allowance for tenant paid utilities. No applications received to date. April 21, 2022 Page 4 ☒ 13. Exempt the Riverfront Crossings from the Affordable Housing Location Model (AHLM) and consider modifications to reduce size of restricted areas and/or account for neighborhood densities (consider University Impacted and Downtown neighborhoods for exclusion as well). Completed April 2017 ☒ 14. Tenant Displacement • Council approval of major site plans when 12 or more households will be displaced and there is no accompanying rezoning. • Such applications would require a transition plan to better inform residents and the public (requires a comprehensive plan and a site plan ordinance amendment). Completed October 2017 ☒ 15. Rent abatement for emergency orders when vacation of property is not necessary • Increase education about housing code violations and how to report. Completed October 2017 To date, we have issued three (electrical or no rental permit issued) Additional actions since the plan was approved in 2016: • The Housing and Community Development Commission (HCDC) altered the preference criteria for CDBG/HOME housing projects to encourage applications serving lower income households. • Reduced the equity requirements for CDBG emergency rehabilitation projects, such as a broken furnace in the winter or a non-functioning water heater, to enable those that may not be able to proceed to be eligible for the program. • Due to the high cost of acquisition and new construction, HCDC altered the preference/evaluation criteria to support those CDBG/HOME rental applications that leverage significant dollars from non-City sources, such as Low-Income Housing Tax Credit projects. The acquisition or construction of SRO or group housing would remain supported due to the lower average public investment per assisted unit and to increase the supply of accessible homes in our community. • Removed the Housing Trust Fund of Johnson County (HTF) from the competitive Aid to Agency process and moved it to a contractual relationship where the HTF uses 8% of the funds allocated to them through the Affordable Housing Fund for administrative expenses. They will remain as a “Legacy Agency” in City Steps 2025 in case they do not get funded or funded at levels lower than their past funding awards in subsequent years through the Affordable Housing Fund. • Incorporated energy efficiency and health/safety measures into our housing programs, including the following:  All housing rehabilitation projects must complete a free home energy audit by Green Iowa AmeriCorps staff prior to funding approval. The audit measures the level of air coming into the home and provides basic weatherization, if necessary, to reduce air leaks. During the audit, participants receive LED light bulbs, low flow aerators in kitchen and bathrooms, pipe insulation for the water heater, taping of April 21, 2022 Page 5 ducts in basement, and extra weatherization based on the results of the blower door test.  Expanded housing rehabilitation activities to include landscaping (tree planting) and grading for stormwater management, as needed, as part of a rehabilitation project.  The HOME owner-occupied housing rehabilitation program, with up to $90,000 available annually, is now eligible to landlords of rental housing leasing to tenants with incomes at or below 60% of median income. Landlords are eligible for grants for radon testing and mitigation, if necessary, as part of their rehabilitation project.  The Neighborhood Improvements set-aside in the CDBG program was converted to a Neighborhood-Based Climate Action set-aside to encourage sustainable, energy efficiency initiatives in our neighborhoods with a higher number of lower income households.  Adopted our first radon ordinance, effective July 1, 2021, that requires radon testing, and mitigation, if necessary, to obtain or maintain a rental permit for single family detached or duplex homes. 2022 Iowa City Affordable Housing Action Plan CITY OF IOWA CITY 48 Appendix G: Affordable Housing Location Model (November 2020) PRAIRIEDUCHIENRDSUNSET STCORALRIDGE AVEMORMONTREKBLVDSWLOOP NERAMPCURV N DODGE STHAW K I NSDRDODGESTOAKCRESTHI LLRDSELOW ER WESTBRANCH RD US6 S SCOTT BLVD2ND ST IOWA 1W BEN TON STDUBUQUEST OAK CRESTHILL RD NEE B UR L I N G TO N S TELLIOT DR420TH ST E BENTON ST22ND AVESAND RDSWRAMPCURVE MARKET STROCKYSHORE DRR O C H E S T E R A V E1ST AVEJONES BLVDSLINNSTNWRAM P CURVI 8 0HEARTLANDDR 20TH AVE10TH ST MUS CAT INE AVE R O H R E T R D GOVERNORSTK IM B ALLRDH O L I DAYRD MELROSEAVE IO WAAVEFO STERRDE J EF F ERSON ST MAIERAVE5THST MARKET ST PA R K RD US 218 NDUBUQUESTS GI L B E R T S TS MADISON STCAMPCARDINALBLVDS CLINTON STN SCOTTBLVDS E R A M P C U R V BO WE RY ST S 1ST AVESYCAMORE STBYINGTON RDSRIVERSI DEDR12TH AVEWOOLFAVES P ECIALCASE HIGHL AND AVES GRAND AVE10THAVEPRO P MCCOLLISTER BLVDKEOKUK STCHURCH ST S7THAVES CAPITOL STE C O U R T ST OLDHIGHWAY218N 7THAVENRIVERSIDEDRR IV E R ST SO U TH GATEAVE N1STAVEMCCOLLISTERBLVD LO W ER MUSCATINE RD SYCAMOREST SEPRO PFOSTERRDSH E R IDANAVE FRIENDSHIP S TSU MMIT STKIRKW OOD AVE I 0 21MilesNeighborhood Services DivisionRevised: November 2020 Affordable Housing Location Model Data Source(s): Iowa City Community School DistrictJohnson CountyCity of Iowa City Riverfront Crossings District Funding available for all types of affordable housing Funding available for rehab, homebuyer, and senior/disabled 2022 Iowa City Affordable Housing Action Plan CITY OF IOWA CITY 49 Appendix H: Annexation Policy 0 Prepared by: Bob Miklo, Senior Planner, 410 E. Washington St, Iowa City, IA; 319-356-5240 (CPA18-00001) Resolution No. 18-211 A resolution amending the Comprehensive plan, Annexation Policy, to add a section pertaining to affordable housing. Whereas, the Comprehensive Plan contains policies regarding annexation of land into the city; and Whereas, the Comprehensive Plan contains a goal of providing a mix of housing types within each neighborhood, to provide options for households of all types (singles, families, retirees, etc.) and people of all incomes, and Whereas, the Affordable Housing Action Plan includes a recommendation that consideration be given to an annexation policy that provides for affordable housingcontributions, and Whereas, the Planning and Zoning Commission has reviewed an amendment to the Comprehensive Plan pertaining to affordable housing and has recommended approval. Now, therefore, be it resolved by the City Council of the City of Iowa City, Iowa, that: IC2030: Comprehensive Plan Update, Annexation Policy, is hereby amended to include the following: If the annexation is for residential development that will result in the creation of ten (10) or more new housing units, the development will support the City's goal of creating and maintaining the supply of affordable housing. Such support shall be based on providing affordable units equal to 10% of the total units in the annexed area with an assurance of long term affordability, preferably for a term of not less than 20 years. Income targets shall be consistent with the City's existing program requirements. How the development provides such support will vary depending on the particular circumstances of the annexation, and may include, but is not limited to, transfer of lots/units to the City or an affordable housing provider; fee -in -lieu paid to the City's affordable housing fund; and/or participation in a state or federal housing program. In determining the most desirable option, preference shall be weighted toward options that help achieve better socia -economic balance among Iowa City neighborhoods and among schools in the Iowa City Community School District. An agreement committing the Owner/Developer to the affordable housing obligation, shall be required prior to annexation, and shall be further memorialized, if necessary, in a conditional zoning agreement. Passed and approved this 17th day of July , 20 18 4: 4 . M or: if Approved by: Resolution No. 18-211 Page 2 v Attest: Csr s 51, Julie Toparil, Deputy City Clerk r City Attorney's ffice S:\PCD\Staff Reports\2018\CPA18-00001 Annex.Affordable Housing\Comp plan amendment RESOLUTION-07.19.2018.doc Resolution No. 18-211 Page 3 It was moved by Botchway and seconded by Mims Resolution be adopted, and upon roll call there were: AYES: NAYS: x x x x x x ABSENT: K4 Botchway Cole Mims Salih Taylor Thomas Throgmorton n;m 2022 Iowa City Affordable Housing Action Plan CITY OF IOWA CITY 50 Appendix I: American Rescue Plan Act (ARPA) 9-2-21 Council Update Date: September 2, 2021 To: Mayor and City Council From: Rachel Kilburg, Assistant City Manager Re: American Rescue Plan Act State & Local Fiscal Relief Funds: First Tranche Update Background The American Rescue Plan Act (ARPA) established the Coronavirus State and Local Fiscal Recovery Fund (SLFRF), which provides significant resources to state and local governments to respond to impacts from the COVID-19 pandemic. Eligible uses of funds fall within four broad categories: responding to negative public health and economic impacts, premium pay for essential workers, replacing lost government revenue, and necessary water, sewer, and broadband infrastructure improvements. In addition to significant funds provided to the State of Iowa, Johnson County and other local municipalities, the U.S. Treasury has allocated $18.3 million to the City of Iowa City. The City received approximately half of these funds in May 2021 and anticipates receiving the remaining balance in May 2022. All funds must be obligated by the end of December 2024 and spent by December 2026. At the May 18, 2021 work session, City Council adopted guiding principles to inform the process of prioritizing ideas for use of funds which are outlined below: Leverage partnerships and outside funding; avoid duplication with other relief programs Restore financial stability to support future governmental operations Retain flexibility to address evolving emergent community needs Seek opportunities to make lasting change in physical and social infrastructure Ensure funding decisions help mitigate racial inequities Pursue actions that contribute toward the City’s climate action Limit operational investments without identified sustainable funding sources Demonstrate compliance and transparency through regular public reporting Public Input Summary Since the City’s ARPA funds are delivered in two tranches, the City anticipates a multi-phased public input process and recently conducted an initial phase of public input this summer. City staff presented a plan for this first phase of public input at the June 15, 2021 City Council work session. Following this work session and through the end of August, staff employed the following strategies to collect public input: Online survey (available in English, Spanish, French, and Arabic) was open from mid- July through the end of August. E-mails (residents encouraged to submit messages in their preferred language) Listening Session, Mercer Park – August 11, 2021 Diversity Market, South District – July 10, 2021 Farmer’s Market, Chauncey Swan – July 24, 2021 City Boards, Commissions, and Committees invited to share ideas Neighborhood Associations invited to share ideas Translated informational flyer and survey links were shared with the non-profit and social service agencies e-mail list, for dissemination to those they serve September 7, 2021 Page 2 The City initiated meetings with the following targeted stakeholders: o Catholic Worker House/Excluded Worker’s Coalition o Agency Impact Coalition (coalition of Iowa City based social service agencies) o Open Heartland, members of the Latino population o Community and economic development organizations (Iowa City Area Development Group, Think Iowa City, Iowa City Downtown District, and the Iowa City Area Business Partnership) o Iowa Flood Center Public input collaboration and data-sharing with Johnson County, including the non-profit roundtable and urban communities’ session Various informal meetings/conversations with individuals and non-profit organizations Opportunities to provide input were promoted through official City channels, including news releases, social media platforms, and Cable TV programs. An informational flyer available in multiple languages was also disseminated through various methods to further spread awareness. In total, the City received 1,892 responses to the online survey through August 15 (including 682 open-ended comments), over 20 e-mails, and countless ideas and stories shared through meetings and listening sessions. A list is attached to this memo, summarizing the ideas collected through the survey, meetings, e-mails, and other conversations. The raw survey results are also attached. Other documentation such as emails and input forms or notes from events is not attached but are available upon request and reflected in the summarized idea list. While we are pleased with the amount of input received, we also recognize that many voices were likely not heard and that we must continue to seek to understand the needs of residents and make expenditure decisions that will create opportunities to meet the most acute needs in our community. Based on the results of the online survey, respondents ranked addressing public health and economic harms as the top preference for spending the City’s ARPA funds. Considering these categories address a broad range of possibilities, this is also reflective of what staff heard through meetings, conversations, and listening sessions: September 7, 2021 Page 3 The most common suggestions staff heard throughout the survey, listening sessions, and meetings include: Direct financial assistance to those in need who did not receive direct federal stimulus checks and unemployment benefits Premium pay for frontline, essential workers Improved access and affordability of high-speed internet Investments in long-term affordable housing solutions Expand and strengthen mental health and behavioral health services Infrastructure investments, including water and sewer Assistance to help businesses re-hire and increase minimum wage to $15/hour Invest further in climate actions and community resiliency Financial support for small businesses, non-profits, arts-based organizations, entrepreneurs, entertainment venues, and other organizations impacted by COVID-19 Rent, eviction, and foreclosure assistance Comprehensive non-profit needs assessment and capital planning/funding Enhanced public transit Common concerns staff heard throughout the survey, listening sessions, and meetings include: Ensure aid/assistance is delivered to those most in need Prioritize low-barrier access for programs serving households, with eligibility guidelines and applications that ensure residents lacking documentation can participate and are not overly burdened by accessing the program Recognize there are urgent, stabilization needs for households, businesses, and organizations Local COVID-19 Relief Programs In response to the COVID-19 pandemic, the City has dedicated both local and federal relief funds towards expanding or developing financial assistance and relief programs. These allocations were largely intended to provide stability for households, non-profits, and businesses facing emergent financial pressures: City of Iowa City Past/Existing COVID-19 Relief Programs Program Allocation Status Assisted* Emergency Housing Assistance (administered by CommUnity/Shelter House) 616,000 Ongoing 153 Non-profit grants for expanded social services addressing COVID-19 impacts 17 non-profit recipients; delivering food assistance, childcare assistance, homeless services, mental health services, and legal aid) 536,532 Ongoing 8,659 Business Grants Small Business Retention Grants, Project Better Together BIPOC Business Grants) 448,678 Ongoing 48 Security Deposit Assistance Grants administered by CommUnity) 175,000 Ongoing 66 Shelter Diversion Grant emergency hotels to reduce crowding at onset of COVID) 10,800 Completed 10 Local Eviction Prevention Program additional funds for existing program administered through Shelter House) 125,000 Ongoing n/a September 7, 2021 Page 4 Emergency Essential Needs Assistance administered by Center for Worker Justice) 62,500 Completed 157 Courthouse Eviction Prevention Program administered by Shelter House/Iowa Legal Aid) 41,000 Ongoing n/a Beneficiaries reported when project completed In total, since the onset of the COVID-19 pandemic, the City has allocated over $1.9 million in new local relief programs, including $1 million for housing assistance, $536,532 for expanded social services, and $448,678 for small business support. Thus far, these programs have served 376 households, 8,659 individuals, and 48 total businesses (additional household/individual beneficiaries will be added as funding is depleted/program closes). This relief does not capture other relief funding sources that were administered directly by the State or received directly by local non-profit organizations. In addition to City programs, Johnson County has recently made changes to their General Assistance Program to improve benefits and expand eligibility. Additionally, the County dedicated up to $2 million in federal relief funding toward the program. General Assistance payments are made by the County on behalf of the recipient for needs limited to rent, utilities, provisions, prescription medications, medical supplies, transportation, pet supplies, and funeral expenses. Revisions to Johnson County General Assistance Program (Approved 7/29/21) Guideline Previous Policy New Policy Program type “Short Term” and “One-Time” Assistance Programs Combined into one program Duration of assistance within 12 mo. period) 3 months for 0-50% FPG^ (“Short Term”) or 1 month for 50-130% FPG (“One-Time”) 3 months for all eligible households 0-200% FPG) Income eligibility 130% FPG for one-time assistance 50% FPG for short-term assistance Up to 200% FPG 25.7K for a one-person household or $53K for a four-person household) Supplemental emergency assistance Not available May be granted per Director’s discretion Eligible expenses Rent, utilities, provisions, some medical, transportation, and funeral expenses. Maintained existing eligible expenses. Added gas vouchers and pet food as eligible assistance. Expanded expenses eligible for certain health and medical care supplies. Applicant Documentation Application requested immigration status Application no longer requests immigration status; eligibility extended to any County resident who meets program guidelines. FPG = Federal Poverty Guidelines Other notable eligibility changes include eliminating the rent cap and expanding eligibility to include those receiving federal/state benefits (such as FIP, SSI, unemployment, etc.). In addition to the General Assistance Program, Johnson County offers an Interim Assistance Reimbursement Program, which provides ongoing assistance for those who have applied for September 7, 2021 Page 5 Supplemental Security Income (SSI) disability benefits, until they are approved. Eligibility for this program was also expanded -- from 50% to 100% FPG. Households, non-profits, and businesses may have also benefitted directly from various state or federal pandemic relief programs, but the City has no way of quantifying or identifying those recipients. Anecdotally, staff understand local programs have been more accessible particularly among immigrant and refugee populations than state and federal programs. Finally, Iowa City is fortunate to have a strong network of social service agencies, who have continued to serve clients throughout the pandemic, especially as need and demand increased. The impact of these agencies is expansive and invaluable. Partnerships City staff believe two key partnerships will play an integral role in efficient and effective spending of ARPA funds: Johnson County: City and County staff have been in regular communication and collaboration to share and streamline public input and identify potential areas of overlapping interest. The County has signaled interest in continuing to collaborate as spending decisions are developed. Careful coordination with the County is needed to ensure relief dollars are stretched as far as possible and have the greatest impact on residents. Social Service Agencies: The City has had considerable success partnering with local agencies to administer assistance programs both prior to and throughout the pandemic. Multiple agencies have again expressed interest in partnerships to roll out ARPA funds. City staff capacity is unlikely able to support the administration and compliance and reporting management of multiple new programs. For any new programs that the City administers, it should be expected that additional staff will be required for such effort. A 5% administrative set- aside is standard for large federal grants with robust compliance and reporting guidelines. Next Steps Staff is developing recommended priority projects based on an assessment of the public input collected, the U.S. Treasury guidance, and project/program’s relationship to the guiding principles set forth by City Council for the use of these funds. Those recommendations will be presented at your September 7th work session. The recommendations will identify top priorities based in two general areas 1) Emergent community need projects 2) Strategic investment projects The recommendations will include initial estimates for potential funding levels that exceed the City’s $18.3 million allocation. This acknowledges that there will likely by some overlap in City/County priorities and that continued close collaboration will be needed to identify areas where City funding is most needed. Similarly, it acknowledges that the future decisions by the State of Iowa with regards to their $1.2 billion may impact funding needs at a local level. Staff will be seeking guidance from the City Council at the work session. Specifically, whether Council is comfortable with the recommended priority projects and staff beginning to work on execution details for emergent needs, while initiating planning for the strategic investment projects. Attachments Summarized list of ideas obtained through public input Copy of the survey Raw survey results 2022 Iowa City Affordable Housing Action Plan CITY OF IOWA CITY 51 Appendix J: Home Builders Association 12-10-21 Letter 2022 Iowa City Affordable Housing Action Plan CITY OF IOWA CITY 52 Appendix K: Iowa City Area Association of Realtors 12-10-21 Letter 2022 Iowa City Affordable Housing Action Plan CITY OF IOWA CITY 53 Appendix L: University of Iowa Student Government 9-23-21 Meeting Minutes University of Iowa Student Government – 9/23/2021 In attendance: Anna VanHuekelom, UISG City Liaison, Ellie Miglin, UISG Deputy City Liaison, Von Stange, UI Assistant V.P. for Student Life & Senior Director, University Housing & Dining, and Tracy Hightshoe, NDS Director Minutes: Reviewed when students are eligible for City assisted/required affordable housing units. In Riverfront Crossings, full time students under the age of 24 are eligible if they are married, have a dependent child, military, disabled, their family (including parents) are income eligible or if they are independent of their parents (not claimed as a dependent) and show sufficient income to rent the unit. UISG representatives requested a way for students to know what units might be affordable, the rent charged and student eligibility requirements. For someone looking for reasonable rent in the downtown market, they expect to pay $400-500 for rent. This is typically a shared house with multiple roommates, each get their own bedroom. For a one bedroom unit, you would have to pay more. Students can pay anywhere from $400-$1,200 for a unit. For them, the cost of dorms are typically more expensive as you must buy a food plan. For many the dorm contract is only for nine months. Students requested that the University look at campus apartments near the University for junior and senior students. Possible locations included Mayflower, former Bank Field or Parklawn apartments. Strange commented that the University will probably not be looking at additional housing in the immediate or near term due to debt from most recent dorm construction projects and due to the financial loss from refunding and releasing students from their dorm contracts during COVID. They currently have dorm capacity for additional students. Parklawn will be part of the new development as the former units were not ADA compliant and the old Band Field is under planning. The university was looking at a live-in student housing requirement for freshman and sophomores, but would need 2,000- 3,000 more units. Due to concerns about what that would do the housing market and costs, they did not proceed. Strange commented if a student is in need for financial assistance, it runs through their financial aid office. Housing costs would be considered, on or off campus. UISG requested an advisory service for off campus housing. Discuss housing options, costs, location, etc. Hightshoe mentioned a model in other college communities where an agency matches college students with an owner (senior or empty nester) with more house than they need that can provide a room for reduced rent in exchange for lawn maintenance, snow removal, etc. UISG representatives felt that some students would be interested if cheaper rent. They would sacrifice distance to the campus for affordable living/less student debt. More education for students about off campus housing and how to avoid problems. Many students are leasing in private market for first time and need guidance. City developed a Tips for First Time Renters flyer and weblink last year. Emailed to UISG representatives and Stange for distribution. Students stated there is a lack of support for off campus housing. 2022 Iowa City Affordable Housing Action Plan CITY OF IOWA CITY 54 Appendix M: University of Iowa Student Government 11-6-21 Meeting Minutes From: Van Heukelom, Anna W <anna-vanheukelom@uiowa.edu> Sent: Saturday, November 6, 2021 11:12:28 AM To: Sara Barron <sara@jcaffordablehousing.org> Cc: Miglin, Elizabeth M <elizabeth-miglin@uiowa.edu>; Barkosky, Vera L C <vera-barkosky@uiowa.edu> Subject: Recommendations for Students and Affordable Housing Here are our final recommendations for affordable housing for students that we will advocate to Council: 1. Spreading out annual inspections of houses to allow adequate time for complaints, updating the safety codes to encourage bi-annual auditing. Educating renters, especially students, where to report safety concerns and concerns with landlord accountability. Similarly, make sure the audit includes checking for recycling and updated recycling signage. Make renters aware of who is in charge of landlord accountability and where to go. (create a city magnet that goes on fridges with this information) Landlords can possibly lose permits if fail to meet safety accountability and sustainability standards. 2. Creating a community solar farm where the renters that opt in to participate pay a tax but receive benefits with sustainable energy as well as reduced utility costs in consequence. 3. Make sure students are able to qualify in affordable housing efforts downtown through city channels including opportunities for rent abatement and subsidies especially to low- income students and less traditional students (undocumented students as well). Increase threshold to 20% of housing is "affordable" for students and community members. 4. Create a rent abatement program during "homeless week" that has opportunities for students to stay in city housing if they have nowhere else to go. Let us know if you have any questions or want clarification! Thank you, Anna 2022 Iowa City Affordable Housing Action Plan CITY OF IOWA CITY 55 Appendix N: Disability Services Coordinating Committee 9-21-21 Meeting Minutes Disability Services Coordinating Committee – 9/24/2021 In Attendance: Alissa Voss, Dave Leshtz, Megz Stroback, Mary Vasey, Brad Neumann, Keisha Fields, Sara Barron, Rachel Kilburg, and Tracy Hightshoe Identified the following needs for those 55+ and those with disabilities in the Iowa City community: • Lack of affordable, accessible options throughout the City. Need this type of housing in more than just a few neighborhoods. • Need additional LIHTC – Senior properties that are affordable. • Improvements needed to existing rental properties to address accessibility. First floor (entry level) laundry facilities if not in unit, accessible exterior door handles, no step entries, grab bars, wider entries, etc. • Better snow maintenance on site/better property management • Few seniors or those with disabilities aware of City rehab programs or how to file a complaint/address a concern about a reasonable accommodation for a disability. Many do not know how to advocate for themselves. • SSI and Social Security Disability pay about $700 to $1,100 per month. Need rent of approximately $300 to be considered affordable. • Many find more affordable, accessible units outside of Iowa City. Emailed comment from member not able to attend: If I were to share any thought it would be to explore the notion of requiring all spec developed properties to have X percentage of units that contain some of the fundamentals of accessibility. For instance, no step doorways to the outside, wide interior doors that are framed in and trimmed out, extra framing in the bathroom for handrails and no step showers. It would also help a great deal to have bathrooms with 5 ft free circle of space. These are fundamental elements that are difficult to change after the fact. Not only do they meet the needs of those with various disabilities they also meet the needs of those advancing in frailty as they age. As follow-up, emailed CMO for distribution to committee members the City’s housing rehabilitation and Human Rights complaint info. flyers to distribute to committee members. 2022 Iowa City Affordable Housing Action Plan CITY OF IOWA CITY 56 Appendix O: Neighborhood Outreach Summary Results August-September 2021 Wetherby National Night Out 8-3-21Fairmeadows Party in the Park 8-19-21CommUnity - Food Bank 8-31-21IC Compassion - Food Bank 9-23 & 9-29TotalAffordable housing for low-moderate income households (owner-occupied or rental) 18 8 24 27 77 Affordable housing for seniors or those with disabilities 10 10 14 18 52 Downpayment assistance to purchase a home 16 9 9 11 45 Financial counseling to improve credit to buy or rent a home 22 7 2 12 43 Utility (gas, electric, and/or water) assistance 12 6 9 12 39 Housing discrimination prevention (based on race, voucher status, disability, have children, etc.)13 1 4 3 21 Affordable student housing 1 2 8 9 20 Security deposit assistance 5 3 5 2 15 Ongoing rent assistance (similar to Section 8/Housing Vouchers)1 2 4 8 15 Mobile home park cooperative 7 3 3 1 14 Housing rehabilitation, including accessibility improvements, for homeowners 2 4 1 2 9 Eviction prevention/legal services 1 1 2 5 9 Increased supportive services such as housing placement and counseling 3 0 2 2 7 Housing rehabilitation, including accessibility improvements, for rental housing 1 1 3 1 6 Other: Please identify in a separate post it note1 4 0 0 0 4 Total Votes 116 57 90 113 376 Estimated Participants 39 19 30 38 125 1Other responses included (one vote each): Homeownership program for undocumented immigrants Affordable medical insurance program for undocumented immigrants (partnership with local hospitals and clinics) Responsible housing - green homes and specs, solar panel support Recycling options Survey translated into English, Spanish, Arabic and French for food bank/pantry sites. Spanish translator present for Wetherby & Fairmeadows events. If the City were to invest additional funds for housing, what would help your household’s situation best? (Select up to 3) Item Number: 6. April 28, 2022 Press Rel ease: Johnson Cou n ty Direct Assistan ce Prog ram application p rocess op en throu g h May 23, 2022 AT TAC HM E NT S : Description Press Release: J ohnson County Direct Assistance P rogram application process open through May 23, 2022 Item Number: 7. April 28, 2022 Joint En tities Meetin g : April 18 AT TAC HM E NT S : Description J oint Entities Meeting: A pril 18 Item Number: 8. April 28, 2022 Civil Service Examin ation : Right of Way Tech n ician - Pu b l ic Works AT TAC HM E NT S : Description Civil S ervice E xamination: Right of Way Technician - P ublic Works Item Number: 9. April 28, 2022 Ad Hoc Truth & Recon ciliation Commission: Ap ril 7 AT TAC HM E NT S : Description Ad Hoc Truth & Reconciliation Commission: April 7 Item Number: 10. April 28, 2022 Community Pol ice Review Board : April 12 AT TAC HM E NT S : Description Community P olice Review Board: A pril 12 Item Number: 11. April 28, 2022 Community Pol ice Review Board : April 20 AT TAC HM E NT S : Description Community P olice Review Board: A pril 20 Item Number: 12. April 28, 2022 Hu man Rights Commission: Ap ril 26 AT TAC HM E NT S : Description Human Rights Commission: A pril 26 Draft Minutes Human Rights Commission April 26, 2022 Emma J. Harvat Hall Commissioners present: Mark Pries, Jason Glass, Roger Lusala, Ashley Lindley, Bijou Maliabo, Sylvia Jons, Siri Bruhn. Commissioners not present: Tony Sivanthaphanith, Ali Ahmed. Staff present: Stefanie Bowers, Daisy Torres. Others present who spoke: Joshua Dabusu. Recommendation to City Council: No. Meeting called to order: 5:33 PM. Native American Land Acknowledgement: Pries read the Land Acknowledgement. Approval of the minutes from March 29, 2022, meeting: moved by Pries, the motion was seconded by Lindley. Motion passed 5-0. (Bruhn, Maliabo not present for vote). Public comment of items not on the agenda: None. Update on Race-Based Calls Campaign: Glass provided that the script has been completed and that a PSA would be completed in May featuring himself, the Police Chief, and the Mayor. Introduction of Joshua Dabusu, Community Outreach Assistant Iowa City Police Department: The Department recently hired Dabusu to do community outreach to refugee and immigrant populations. The purpose of creating this position is two-fold, 1) assist persons new to this country to better understand the role of a Police Officer and 2) to assist the Police Department with learning more about different cultures to build relationships. Asian American and Pacific Islander Heritage Month: Lindley will accept the proclamation at the May 3 City Council meeting on behalf of the Commission. Jewish American Heritage Month: Pries will accept the proclamation at the May 3 City Council meeting on behalf of the Commission. South District Neighborhood Association Funding Request: Pries moved that $250 be allocated to reimburse for the costs of the Diversity Markets, the motion was seconded by Bruhn. Motion passed 7-0. Center for Family Services Global Network Funding Request: Bruhn suggested inviting the Director to a future meeting so that the Commission can discuss how they can work together to promote cultural diversity. Strategic Planning Sessions: The Commission will meet on May 12 and May 17 to work on their strategic plan. The sessions are expected to last about three hours. A survey has been sent out to community representatives and organizations to get feedback on the commission currently and where it should focus in the future. Youth Awards: The Youth Awards Ceremony will be held on Wednesday, May 11, at the Hilton Garden Inn. Mayor Teague will provide remarks at the event. The event will include a dinner, award presentation, and group picture. Public Works Open House: Commissioners (Glass, Lindley, Maliabo, Bruhn, Jons, and Pries) will staff this event from 8 am – 2 pm. Staff will drop off the items the day before the event. Social Justice and Racial Equity Grant Reports for FY21 and Updates for FY22: Quarterly reports for all organizations from FY21 have been received except the Sankofa Outreach Connection report. Staff has sent two emails as a reminder to them. The FY22 grant allocations have been approved by the City Council and staff is working with grantees on getting the agreements signed so that funding can be sent out by June 1. Correspondence: Johnson County United Nations Chapter: a report was sent to the Commission on the success of The Night of 1000 Dinners program. The virtual event was a community celebration for International Women’s Day. United Action for Youth: a report was sent to the Commission highlighting the youth (13) who attended and the speakers for the day—Terrance Murphy of Journey Above Poverty, Monique Cottman represented the Iowa City Community School District, and Tony Branch with United Action for Youth. Staff Announcements: Torres plans to introduce the five new officer hires to the Commission at the May meeting date. Commission Announcements: Glass gave an update on upcoming programs of the Iowa Department of Human Rights. Lindley spoke on Take Back the Night. Pries participated in a webinar on Race and Femicide. Adjourned: 7:00 PM. Human Rights Commission ATTENDANCE RECORD YEAR 2022 (Meeting Date) NAME TERM EXP. 1/25 2/22 3/29 4/26 5/24 6/28 7/26 8/23 9/27 10/25 11/22 12/27 Jason Glass 2022 P P P P Ashley Lindley 2022 P P P P Mark Pries 2022 P P P P Roger Lusala 2023 P P P P Bijou Maliabo 2023 P P P P Tony Sivanthaphanith 2023 A P P A Siri Bruhn 2024 P A P P Sylvia Jons 2024 P A P P Ali Ahmed 2024 P P P A KEY: P = Present A = Absent