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HomeMy WebLinkAbout2023-10-17 ResolutionItem Number: 6.a. CITY OF IOWA CITY COUNCIL ACTION REPORT October 17, 2023 Motion to set a public hearing for November 6, 2023 on an ordinance amending Title 14, Zoning Code, to improve housing choice, increase housing supply, and encourage housing affordability by adjusting standards for Accessory Apartments. (REZ23-0001) Attachments: REZ23-0001 ADU Memo Packet Late P&Z Correspondence r �®,,CITY OF IOWA CITY MEMORANDUM Date: October 4, 2023 To: Planning & Zoning Commission From: Kirk Lehmann, Associate Planner, Neighborhood & Development Services Re: Zoning Code Amendments to related to accessory apartments to improve housing choice, increase housing supply, and encourage affordability (REZ23-0001) Introduction Iowa City has a uniquely expensive housing market in Iowa. The City has focused on facilitating the creation of affordable housing opportunities and on enhancing housing choice within neighborhoods with a special focus on equity and low-income households. The City's Zoning Code (Title 14) impacts housing choice and supply, which can affect affordability. To further goals identified in the Comprehensive Plan regarding affordable housing, staff proposed several amendments to Title 14 to continue to enhance housing choice, increase housing supply, and support a more inclusive, equitable city. These include: 1. Increasing flexibility for a range of housing types to facilitate diverse housing choices; 2. Modifying design standards to reduce the cost of construction while creating safe, attractive, and pedestrian -friendly neighborhoods; 3. Providing additional flexibility to enhance the supply of housing by modifying dimensional standards and reducing regulatory barriers to accessory apartments; 4. Creating regulatory incentives for affordable housing (e.g., density bonuses and parking reductions) that would encourage income -restricted units throughout the community; and 5. Address fair housing concerns to help ensure that housing within neighborhoods can support a range of living situations and advance the City's equity and inclusion goals. Staff presented these proposed amendments to the Planning & Zoning Commission at their meeting on August 2. The Commission recommended approval with the exception of standards relating to accessory apartments and directed staff to solicit more public feedback regarding those changes. After additional public engagement, staff is bringing the proposed amendments relating to accessory apartments back to the Commission for consideration with no further changes. Background One of several ways the City is looking to help meet the need for additional housing is to encourage accessory apartments, also known as Accessory Dwelling Units (ADUs), carriage houses, or in-law suites. Accessory apartments are small, self-contained dwellings units located as a subordinate use on the same lot as a primary home and come in a variety of shapes, sizes, and configurations. Possible ADU arrangements, including detached and attached units, interior lower- or upper-level units, above -garage units, and garage conversions. This allows them to fit discreetly into all sorts of locations including suburban subdivisions, walkable towns, and urban neighborhoods. The proposed changes to accessory apartment standards will encourage their construction and help meet the need for additional housing. Iowa City currently anticipates a demand for over 4,600 additional residences by 2030 but is currently only expected to meet 61% of that projected demand based on recent building permit trends. This suggests that Iowa City has a housing supply shortage which drives up the cost of housing. In addition, accessory apartments tend to have lower construction costs than other housing types that are typically larger. October 4, 2023 Page 2 Current standards appear to be a significant barrier to construction of ADUs in most areas of the city. Iowa City first allowed ADUs for the elderly and persons with disabilities in 1987 and widened occupancy to the general public in 2005. While ADU development increased after that change, construction has remained relatively muted with only 52 ADUs permitted since 1995 at an average rate of less than 2 per year (Figure 1). Of these, nearly one third (16) were constructed as part of the Peninsula neighborhood. Staff estimates that approximately 9,947 single-family dwellings are currently allowed to build an ADU. Removing barriers to ADU development allows an incremental increase in housing supply in such a way that limits impacts to the appearance of neighborhoods. Figure 1: Accessory Dwelling Units (ADUs) Permitted 1995-2023 5 5 5 a 4 4 4 3 3 3 0 2 2 2 2 2 w 2 ¢0 100 0 0 0 Io"o' Removing barriers to the construction of ADUs can increase the supply of housing and help older homeowners, single parents, young home buyers, and renters in seeking a wider range of homes, prices, rents and locations. Over the long run, these proposed changes should help better align the supply of housing with the demand and do so in such a way that provides a greater diversity of housing types throughout the city. The amendments will not solve all issues related to housing affordability or equity, but they can help improve housing choice, increase housing supply, encourage affordability, and more generally reduce barriers preventing the construction of housing types that are smaller and more affordable than detached single-family homes. By implementing these strategies, the City can become a more inclusive, diverse, and equitable place that provides housing opportunities for all residents. Public Enaaaement The proposed changes are based on existing policies and goals in plans and studies reviewed and adopted by Council over the course of several years (beginning in 2016). These include the City's 2016 Affordable Housing Action Plan, 2019 Fair Housing Study, 2022 Affordable Housing Action Plan Update, and most recently, City Council's FY23-FY28 Strategic Plan. These plans were developed after multiple rounds of outreach, including surveys, public meetings, focus groups, and interviews. They were also reviewed and adopted through public processes. Relevant policies and goals adopted by Council are discussed in the analysis section below. In addition, staff held 2 open houses on September 13 and 14 to gain additional input from the public regarding proposed changes to ADU standards. 58 people signed into the open houses, and additional members of the public attended but did not sign the sheet. Staff also distributed a survey at the open houses and online. In total, 51 people provided responses. The full responses to the survey are available in Attachment 1. Feedback obtained in these surveys include the following: October 4, 2023 Page 3 • Allowing accessory apartments on properties with a rental permit was the only proposed change about which a majority of respondents (57%) indicated concern. • A majority of respondents indicated that all other proposed changes, except for those related to allowing accessory apartments on properties with a rental permit, were not a concern. • The proposed change that provoked the second most concern in respondents (45%), though not a majority, was no longer requiring a parking space for an accessory apartment. • Only a third or less of respondents indicated concerned with other proposed changes. Staff has also received some correspondence specifically related to these amendments. Correspondence received at the time of the publishing of this packet are available in Attachment 2. The memo dated July 5, 2023 (Attachment 3) provides more detailed background regarding the including the public engagement process and rationale that lead to the proposed changes. Over the past several years, the City has made significant progress towards addressing its affordable housing goals. The proposed amendments are the next steps meant to execute these adopted policies and goals. Proposed Zoning Code Amendments Proposed changes to ADU standards are based on recommendations made by Johnson County's Livable Community for Successful Aging (JCLC) Housing Action Team and align with policy efforts made by the American Association of Retired Persons (AARP). JCLC serves as a unifying structure that fosters effective collaboration, communication, and education to build and sustain a livable community for successful aging. Action teams, such as that on housing, focus on specific topic areas and are comprised of public, nonprofit, and private stakeholders. A summary of current and proposed standards, in addition to rationale for each change, can be found in Figure 2. Fiqure 2: Current & Proposed Regulations Current Standard Proposed Standard Rationale for Change Must be accessory to May be accessory to This change increases the supply of lots detached single-family attached or detached that may allow ADUs while maintaining uses single-family uses, in the existing character of neighborhoods. addition to du lex uses Only allowed in certain Allowed in all zones that ADUs should be treated like other zones (RS -5, RS -8, RM- allow residential uses residential uses, so they should be 12, RM -20, & RNS-20) (includes RNS-12, RM- permitted in all zones that allow single - 44, PRM, MU, and some family or duplex uses. other commercial zones Owner must live on-site; Owner is not required to ADUs should be treated like other a rental permit is live on-site; a rental residential uses. Owner occupancy is not required permit is still required regulated in any other context in the zoning code. Occupancy requirements are also a barrier because they limit how successive owners can use property (complicating sales from divorce, job transfer, or death) and make financing more difficult. Requires 1 off-street No off-street parking Requiring an off-street parking space for parking space for required for accessory an ADU is a barrier because off-street accessory apartment apartment parking adds cost, and lot characteristics and topography can create challenges for siting a new parking space. October 4, 2023 Page 4 Limited to 1 bedroom Bedrooms and ADUs should be treated like other and 2 occupants occupants limited by residential uses, so rental standards rental permit and should apply to determine maximum maximum size limits number of bedrooms and occupancy (specifically that no more than 35% of the Size limited to the lesser Size limited to the lesser of 650 square feet, 30% of 1,000 square feet or unit may consist of bedrooms). However, of the floor area if in the 50% of the floor area of the City still recommends a maximum size main building, or 50% of the main building requirements to ensure that the ADU is the floor area if in an subordinate to the principle use without accessory building being overly restrictive. An accessory apartment The square footage for ADUs should be treated like other cannot increase the an accessory apartment residential uses, so building an ADU in an floor area of the main is restricted by maximum independent building or in an addition building by over 10% size limits should be possible. Does not allow a Allows a standalone standalone accessory accessory apartment apartment Buildings with an Buildings with an ADUs should be treated like other attached accessory attached accessory residential uses, so the location of apartment must apartment must entrances should not be more restrictive appear to be a detached appear to be a use than for primary residences. In addition, single-family home, so allowed in the zone; requiring an ADU entrance on the side or new entrances must entrance locations are rear of the house can compromise the face side or rear lot line not dictated design and increase the cost. In general, the proposed changes are intended to remove barriers to the construction of ADUs and ultimately increase the supply of housing. However, they also are intended to acknowledge accessory apartments as a legitimate use, and therefore they should be treated like other residential uses on the property. Staff continues to recommend that the owner -occupancy requirement for ADUs be removed on this basis and with the understanding that policies geared towards ADUs are intended to increase the supply of housing in a meaningful way. All relevant lot standards still need to be met, including minimum lot size, maximum lot coverage, maximum accessory building height, and minimum open space which ensures that they fit into the neighborhood as well as any other allowed use. Staff also proposes that lots must meet the minimum lot size to allow an accessory apartment. Analysis Overall, the proposed amendment encourages the development of ADUs by allowing ADUs in all zones that allow household living uses and by expanding the building types to which ADUs can be accessory to any lot with up to 2 dwelling units. Figure 3 shows parcels that currently allow ADUs (green) in addition to parcels that would allow ADUs under the proposed amendments (yellow). The most notable changes are that ADUs would be allowed in areas that are zoned RNS-12, that are zoned lower density multi -family, and areas that contain duplexes. Note that the map does not account for properties with a current rental permit as properties can switch between owner- or renter -occupied at any time. In total, staff anticipates that this expand the lots on which ADUs are allowed by approximately 1,400 ADUs as noted in Figure 4. The proposed amendment would also remove the requirement that the owner of the property must live either in the primary home or ADU, i.e. ADUs could be accessory to properties with a rental permit. This could potentially allow ADUs on just over another 3,000 new ADUs for single- family rental homes based on current estimates of single-family homes with a rental permit (Figure 4). However, removing the owner -occupancy requirement may have a larger effect near the University due to a higher number of single-family rental units in that area. In a recent analysis from June 30, 2022, the City estimated that approximately 32.5% of single-family and duplex units in select neighborhoods near downtown have a rental permit. This would mean removing the October 4, 2023 Page 5 owner -occupancy requirement may allow as many as 2,333 accessory apartments (76% of those gained from removing the rental requirement) in these areas. However, there are also additional constraints in this area that make it challenging to add ADUs including smaller lot sizes and additional design considerations from Historic and Conservation District zones. As such, it is difficult to fully anticipate the number of new units that may be added. Figure 3: Map of Parcels That May Allow Accessory Apartments: Current and Proposed F. ure 4: Estimated Number of Lots Cit -Wide that May Accommodate ADUs Encouraging accessory apartments provides several benefits in addition to increasing the housing supply and diversity throughout neighborhoods. ADUs can be used to: • Provide convenient living arrangements for families, caretakers, and/or older homeowners. • Reduce negative historical impacts created by exclusionary zoning. • Improve affordability for homeowners by creating extra income. • Provide opportunities for people seeking a wider range of homes, prices, rents, and locations. • Create compact growth which positively impacts the environment. • Enhance job opportunities by providing housing near transit and job centers. • Accommodate development in a cost-effective way. Lots Lots that may currently allow ADUs 9,947 New lots that may allow ADUs by expanding permitted zones and uses 1,403 New lots that may allow ADUs by removing the owner -occupancy requirement 3,073 Total lots that may allow ADUs under proposed amendments 14,423 Encouraging accessory apartments provides several benefits in addition to increasing the housing supply and diversity throughout neighborhoods. ADUs can be used to: • Provide convenient living arrangements for families, caretakers, and/or older homeowners. • Reduce negative historical impacts created by exclusionary zoning. • Improve affordability for homeowners by creating extra income. • Provide opportunities for people seeking a wider range of homes, prices, rents, and locations. • Create compact growth which positively impacts the environment. • Enhance job opportunities by providing housing near transit and job centers. • Accommodate development in a cost-effective way. October 4, 2023 Page 6 Because of these benefits, encouraging ADUs in existing neighborhoods generally supports the City's sustainability goals by adding units in the most walkable areas of town, and reduced parking encourages the use of alternative modes of transportation. Comparable Communities Staff looked at comparable communities to identify how other local jurisdictions are regulating ADUs, including other large cities in Iowa and other college towns. Other jurisdictions use a range of different parameters. Many communities have recently reevaluated their ADU regulations to enhance their supply of housing, similar to Iowa City. These changes include things such as removing the owner -occupancy and off-street parking requirements, increasing allowed sizes, and expanding the number of ADUs allowed on a site to 2 or allowing ADUs to be accessory to lots with two units. In some cases, the maximum size and/or parking requirements are dependent on the size of the lot or unit. A summary of the ADU standards for comparable communities can be found in Figure 5. In general, many of the proposed changes are in line with other communities with similar situations to Iowa City, though each community has a unique set of regulations based on their circumstances. F. ure 5: ADU Standards for Comparable Communities Ownership Max. Size Limits Occupancy Design Parking Required Limits Required Cedar No 1,000 sq. ft. but None 2 ADUs allowed per lot, 1 space Rapids, not to exceed 1 attached & 1 Iowa footprint of detached; no other primary structure requirements Ann Arbor, No 600 sq. ft. for lots 2 No requirements No Michigan up to 7,200 sq. occupants ft; 800 sq. ft. for max. lots 7,200 sq. ft. or more Madison, Yes, i.e. 900 sq. ft. 2 Entries in a rear or side No Wisconsin must be bedrooms yard shall be connected owner- max. to a street by a paved occupied walkway or driveway; must be above a garage in certain zones Des Moines, Yes, i.e. 50% of primary Max. Must match primary 1 space Iowa must be structure floor bedrooms structure with regards to owner- area (if based on roof, materials, color, occupied detached, sq. ft. and character; only one greater of 576 entrance to a house with sq. ft. or 25% of an ADU may face a rear and) street Fayetteville, No 1,200 sq. ft. 2 2 ADUs allowed per lot, 1 space Arkansas occupants 1 attached & 1 if ADU is max. detached; 2 -story ADUs larger shall limit access stairs, than 800 decks, entries & sq. ft. windows to walls facing (may be primary structure or on - alley street Durham, No 800 sq. ft. but None May be accessory to No North not to exceed single-family or duplex Carolina 50% of the uses; can only extend primary structure forward to the rear 25% floor area of the primary structure October 4, 2023 Page 7 Best Practices The proposed amendments regarding accessory apartments were developed by staff to reflect best practice supported by a variety of organizations. The American Planning Association's (APA) Equity in Zoning Policy Guide provides valuable insight into how to amend zoning codes to improve equity, which in turn assists with affordability. Recommendations include: Allow a broader range of building forms, lot sizes, lot widths, and residential types in low-density residential neighborhoods and avoid zones limited to only single - household detached dwellings. Evidence shows that single -household only residential zoning has a disproportionate impact on the ability of historically disadvantaged and vulnerable groups to access attainable housing and quality schools and services. In addition, allowing a wider mix of residential and non-residential uses in existing zoning districts can increase opportunities for historically disadvantaged and vulnerable populations to live closer to sources of quality employment, goods, and services. Allow accessory dwelling units (ADUs) without the need for a public hearing, subject to only those conditions needed to mitigate potential impacts on neighboring properties. ADUs may support the stability of existing neighborhoods by accommodating extended families or creating an opportunity to generate revenue from tenants, but it may be necessary to limit them to properties where the primary dwelling unit is the owner's primary residence to avoid speculative investment, particularly when used as short-term rentals. Additionally, groups such as the AARP have begun strongly supporting ADUs because they can assist older homeowners maintain their independence by providing additional income to offset taxes and maintenance costs or by providing housing for a caregiver. ADUs can also become the residents' home if they wish to downsize, allowing them to rent out the main house or to have family move into it. As part of this effort, the AARP has drafted an optimal Model Local ADU Ordinance, which identifies the following ways to help encourage ADUs: • ADUs should be allowed in all zones that allow single-family residential uses/ • ADUs should only require those conditions needed to mitigate potential impacts on neighboring properties/ • Treat ADUs like other uses in the zone; this may include removing requirements for owner - occupancy if not regulated by zoning/ • Eliminating off-street parking requirements reduces the cost and difficulty of building ADUs. • ADUs should be allowed administratively (i.e. without discretionary approvals). • Limit design requirements which increase the cost of building ADUs. • Standards relating to neighborhood character can be problematic (especially if subjective). As noted above, the proposed amendments were designed with these best practices in mind. Consistency with Comprehensive Pian The vision of the Comprehensive Plan supports creating "attractive and affordable housing for all people — housing that is the foundation of healthy, safe, and diverse neighborhoods throughout our city" (IC2030 p.7). To that end, the plan discusses the need for a mix of housing types within neighborhoods to provide residential opportunities for a variety of households along with integrated affordable housing options (IC2030 p. 21), and that infill development should add to the diversity of housing options without compromising neighborhood character or over -burdening infrastructure (IC2030 p.21). The plan also discusses strategies that support goals related to affordable housing including the following: • Ensure 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. (IC2030 p. 28) • Develop neighborhood plans that help ensure a balance of housing types, especially in older parts of the city. (IC2030 p. 29). October 4, 2023 Page 8 • Discourage sprawl by promoting small -lot and infill development. (IC2030 p. 42) • Identify and support infill development and redevelopment opportunities in areas where services and infrastructure are already in place. (IC2030 p. 28) The plan also mentions that when interpreting the future land use map, a diversity of housing types should be considered as one of the neighborhood design principles that applies to all developments. In addition, many of the proposed amendments have been identified in recent planning efforts to help further affordable housing, including the 2016 and 2022 Affordable Housing Action Plans, the 2019 Fair Housing study, and the City Council's most recent Strategic Plan. Specific recommendations from these plans incorporated in the proposed amendments include: • Consider regulatory changes to City Code, including... [p]ermit[ing] more building types by right as opposed to requiring a PUD process (density, multiplex units, cottage clusters, etc.) (2016 Affordable Housing Action Plan, Step 9) • ...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 types of housing allow[ed]... which also facilitates the creation of housing units at different price points within neighborhoods. (2019 Fair Housing Choice Study, Strategy 1.1) • 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. (2022 Affordable Housing Action Plan — Development Regulations 1); The plan also specifically suggests that the City should consider ADU's associated with rental housing. • Advance prioritized recommendations in the 2022 Affordable Housing Action Plan. (FY23-FY28 Strategic Plan, Neighborhoods & Housing Action 4) Overall, the proposed amendments are consistent with the City's current policy direction, including the Comprehensive Plan. Next Steps Upon recommendation from the Planning and Zoning Commission, the City Council will hold a public hearing on the proposed rezoning ordinance. Recommendation Staff recommends that Title 14 Zoning be amended as illustrated in Attachment 4 to enhance land use regulations related to accessory apartments to improve housing choice, increase housing supply, and encourage affordability. Attachments 1. Survey Results and Open House Materials 2. Correspondence 3. July 5, 2023 Memo Regarding Zoning Code Amendments to improve housing choice, increasing housing supply, and encourage affordability 4. Proposed Zoning Code Amendments 5. Enlarged Map Approved by: � • S1 +-,. � Danielle Sitzman, AICP, Development Services Coordinator Department of Neighborhood and Development Services ATTACHMENT 1 Survey Results and Open House Materials 1. Please identify which, if any, of the following proposed changes to City Code 1. Please identify which, if any, of the following proposed changes to City Code are a concern: are a concern: SURVEY CONTINUES ON BACK - - SURVEY CONTINUES ON BACK - Must be accessory to detached Must be accessory to single- ❑ ❑ ❑ single-family use family or duplex use Only allowed in certain zones Allowed in any zone that allows 12, RM -12, RM- residential (includes NS ❑ ❑ ❑ 20, & RNS 20) 12,RM44, PRM, MU and some other commercial zones) Owner must live on-site; a Owner is not required to live on- ❑ ❑ ❑ rental permit is required site; a rental permit is required Requires 1 off-street parking No off-street parking required ❑ ❑ ❑ space for accessory apartment for accessory apartment Limited to 1 bedroom and 2 Bedrooms and occupants limited ❑ ❑ ❑ occupants by rental permit Size limited to lesser of 650 Sq Size limited to the lesser of Ft., 30% of the floor area if in the main building, or 50% of 1,000 Sq Ft. or 50% of the floor area of the main building ❑ ❑ ❑ the floor area if in an accessory building Does not allow a standalone Allows a standalone accessory ❑ ❑ ❑ accessory apartment apartment An accessory apartment cannot The square footage for an increase the floor area of the accessory apartment is main building by over 10% restricted by max. size limits Buildings with an attached Buildings with an attached accessory apartment must accessory apartment must appear to be a detached single- appear to be a use allowed in family home, so new entrances the zone; entrance locations must face side or rear lot line are not dictated SURVEY CONTINUES ON BACK - - SURVEY CONTINUES ON BACK - Must be accessory to detached Must be accessory to single- 1:1 1:1 ❑ single-family use family or duplex use Only allowed in certain zones Allowed in any zone that allows 12, RM -12, RM- residential (includes NS ❑ ❑ ❑ 20, & RNS 20) 12,RM44, PRM, MU and some other commercial zones) Owner must live on-site; a Owner is not required to live on- ❑ ❑ ❑ rental permit is required site; a rental permit is required Requires 1 off-street parking No off-street parking required ❑ ❑ ❑ space for accessory apartment for accessory apartment Limited to 1 bedroom and 2 Bedrooms and occupants limited ❑ ❑ ❑ occupants by rental permit Size limited to lesser of 650 Sq Size limited to the lesser of Ft., 30% of the floor area if in the main building, or 50% of 1,000 Sq Ft. or 50% of the floor area of the main building ❑ ❑ ❑ the floor area if in an accessory building Does not allow a standalone Allows a standalone accessory ❑ ❑ ❑ accessory apartment apartment An accessory apartment cannot The square footage for an increase the floor area of the accessory apartment is main building by over 10% restricted by max. size limits Buildings with an attached Buildings with an attached accessory apartment must accessory apartment must appear to be a detached single- appear to be a use allowed in family home, so new entrances the zone; entrance locations must face side or rear lot line are not dictated SURVEY CONTINUES ON BACK - - SURVEY CONTINUES ON BACK - 2. What is your age? Under 18 years ❑ 18 to 24 years ❑ 25 to 34 years ❑ 35 to 44 years ❑ 45 to 54 years ❑ 55 to 64 years ❑ 65 to 74 ❑ 75 years and over ❑ 3. With which gender do you most identify? Male ❑ Female ❑ Non-Binary/Non- ❑ Conforming ❑ 4. What is your zip code? 5. What is your race? (select all that apply) White/Caucasian ❑ Black/African American ❑ American Indian or Alaska Native ❑ Asian or Pacific Islander ❑ Other: ❑ 6. Are you of Hispanic, Latina, or Spanish Origin? Yes ❑ No ❑ 7. How would you describe your living situation? Live in a home owned by ❑ you or someone in your ❑ household ❑ Live in a home rented by ❑ you or someone in your ❑ household ❑ Other: ❑ 2. What is your age? Under 18 years ❑ 18 to 24 years ❑ 25 to 34 years ❑ 35 to 44 years ❑ 45 to 54 years ❑ 55 to 64 years ❑ 65 to 74 ❑ r75 years and over ❑ 3. With which gender do you most identify? Male ❑ Female ❑ Non-Binary/Non- ❑ Conforming ❑ 4. What is your zip code? 5. What is your race? (select all that apply) White/Caucasian ❑ Black/African American ❑ American Indian or Alaska Native ❑ Asian or Pacific Islander ❑ Other: ❑ 6. Are you of Hispanic, Latina, or Spanish Origin? Yes ❑ No ❑ 7. How would you describe your living situation? Live in a home owned by you or someone in your ❑ household Live in a home rented by you or someone in your ❑ household Other: Have any questions? Please contact: Have any questions? Please contact: Kirk Lehmann, Associate Planner at (319) 356-5247 Kirk Lehmann, Associate Planner at (319) 356-5247 or by email at klehmann@iowa-city.org or by email at klehmann@iowa-city.org Attachment 1 Summary of Survey Responses to Proposed Changes to Accessory Dwelling Unit Standards Please identify which, if any, of the following Concerned Unsure Not Responses proposed changes to City Code are a concern: Concerned Current Standard: An accessory apartment cannot increase the floor area of the main building by over 10% 15.9% 20.5% 63.6% 44 Proposed Standard: The square footage for an accessory apartment is restricted by max. size limits Current Standard: Buildings with an attached accessory apartment must appear to be a detached single-family home, so new entrances must face side or rear lot line 19.1% 10.6% 702% 45 Proposed Standard: Buildings with an attached accessory apartment must appear to be a use allowed in the zone; entrance locations are not dictated Current Standard: Does not allow a standalone accessory apartment 22.7% 9.1% 68.2% 44 Proposed Standard: Allows a standalone accessory apartment Current Standard: Limited to 1 bedroom and 2 occupants 28.9% 6.7% 64.4% 47 Proposed Standard: Bedrooms and occupants limited by rental permit Current Standard: Size limited to lesser of 650 Sq Ft., 30% of the floor area if in the main building, or 50% of the floor area if in an accessory building 30.4% 13.0% 56.5% 45 Proposed Standard: Size limited to the lesser of 17000 Sq Ft. or 50% of the floor area of the main building Current Standard: Only allowed in certain zones (RS -5, RS -8, RS -12, RM -12, RM -20, & RNS-20) Proposed Standard: Allowed in any zone that allows 33.3% 11.1% 55.6% 46 residential uses (includes RNS-12, RM -44, PRM, MU, and some other commercial zones) Current Standard: Must be accessory to detached single-family use 34.1% 4.5% 61.4% 44 Proposed Standard: Must be accessory to single- family or duplex use Current Standard: Requires 1 off-street parking space for accessory apartment 44.7% 2.1% 53.2% 44 Proposed Standard: No off-street parking required for accessory apartment Current Standard: Owner must live on-site; a rental permit is required 56.8% 9.1% 34.1% 47 Proposed Standard: Owner is not required to live on-site; a rental permit is required Attachment 1 Visual Summary (ordered from highest concern to least concern) Current Standard: Owner must live on-site; a rental permit is requireclProposed Standard: Owner is not .1% required to live on-site, a rental permit is required Current Standard: Requires 1 off-street parking space for accessory apartmentProposed Standard: No off- street parking required for accessory apartment Current Standard: Must be accessory to detached single-family useProposed Standard: Must be accessory to single-family or duplex use Current Standard: Only allowed in certain zones (RS- C, RS -8, RS -12, RM -12, RM -20, R RNS-20)Proposed Standard: Allowed in any zone that allows residential 11.10/c uses (includes RNS-12, RM -44, PRM, MU, and some other commercial zones) Current Standard: Size limited to lesser of 650 Sq Ft., 30% of the floor area if in the main building, or 50% of the floor area if in an accessory buildingProposed13.0% Standard: Size limited to the lesser of 1,000 Sq Ft. or 50% of the floor area of the main bu Current Standard: Limited to 1 bedroom and 2 occupants Proposed Standard: Bedrooms and occupants limited by rental permit Current Standard: Does not allow a standalone accessory apartmentProposed Standard: Allows a.1% standalone accessory apartment 109 Current Standard: Buildings with an attached accessory apartment must appear to be a detached single-family home, so new entrances must face side 0.60/ or rear lot IineProposed Standard: Buildings with an attached accessory apartment must appear to be a use allo Current Standard: An accessory apartment cannot . increase the floor area of the main building by over 20.5% 10%Proposed Standard: The square footage for an accessory apartment is restricted by max. size limits 0% 20% 40% 60% ■Concerned Unsure ■Not Concerned 80% 100% Attachment 1 What is your age? Responses 49 total 18 to 24 years 3 25 to 34 years 6 35 to 44 years 8 45 to 54 years 5 55 to 64 years 13 65 to 74 years 11 75 years and over 3 With which gender do you most identify?- Responses 47 total Male 30 Female 17 Non-Binary/Non-Conforming 0 Zip Code Responses 47 total 52240 19 52241 1 52245 15 52246 9 52333 1 52358 1 52761 1 What is your race? select all that apply) Responses 42 total White/Caucasian 42 Black/African American 0 American Indian or Alaska Native 1 Asian or Pacific Islander 0 Other 0 Are you of Hispanic, Latino, or Spanish origin? Responses (27 total) Yes 1 No 26 How would you describe your living situation? Responses 47 total Live in a home owned by you or someone in your household 40 Live in a home rented by you or someone in your household 6 Other: Live alone in a 55+ apartment building 1 The City of Iowa City invites you to attend an ACCESSORY APARTMENT OPEN HOUSE The City of Iowa City is considering changes to the Zoning Code to increase housing supply, improve housing choice, and encourage housing affordability. As part of this effort, the City is proposing to modify how it regulates accessory apartments, also known as Accessory Dwelling Units (ADUs), granny flats, mother-in-law suites, guest houses, or carriage houses. The City is hosting two Open Houses to provide opportunities for residents to learn more about these proposed changes and to listen to your thoughts! What are Accessory Apartments? Accessory apartments are small, self-contained dwelling units located on the same lot as a primary home. ADUs can be attached or detached and come in all sorts of shapes, sizes, and configurations. Images above and on the next page show some examples of where accessory apartments may be located. Current Standards Must be accessory to detached single-family use Only allowed in certain zones (RS -5, RS -S, RM -12, RM -20, & RNS-20) Owner must live on-site; a rental permit is required Requires 1 off-street parking space for accessory apartment Limited to 1 bedroom and 2 occupants Size limited to the lesser of 650 Sq Ft., 30% of the floor area if in the main building, or 50% of the floor area if in an accessory building Does not allow a standalone accessory apartment An accessory apartment cannot increase the floor area of the main building by over 10% Buildings with an attached accessory apartment must appear to be a detached single-family home, so new entrances must face side or rear lot line ■NENE en■■■ ■■■■ ■■■■ ■■n ■■E ®■■n d Unit Attaehetl Unit Interior Upper Level Unit ■■■■ ■■■■ ■■■■ ■■■ ®■■N ■■I Interior Lower Level Unit Above Garage Unit Garage Conversion Proposed Standards Must be accessory to single-family or duplex use Allowed in any zone that allows residential uses (includes RNS-12, RM -44, PRM, MU, and some other commercial zones) Owner is not required to live on-site; a rental permit is required No off-street parking required for accessory apartment Bedrooms and occupants limited by rental permit Size limited to the lesser of 1,000 Sq Ft. or 50% of the floor area of the main building Allows a standalone accessory apartment The square footage for an accessory apartment is restricted by max. size limits Buildings with an attached accessory apartment must appear to be a use allowed in the zone; entrance locations are not dictated Background Iowa City is considering changes to the Zoning Code to increase housing supply, improve housing choice, and encourage housing affordability. The proposed changes seek to: 1. Increase flexibility for a range of housing types, 2. Modify design standards to reduce the cost of construction, 3. Provide additional flexibility to enhance the supply of housing, including reducing regulatory barriers to accessory apartments, 4. Create regulatory incentives for affordable housing, and 5. Address fair housing concerns to help advance the City's �_ 3 _s' - ti Introduction �mosOil OF 1i Gil Why These Updates? Iowa City has a housing supply shortage. The City is looking at encouraging accessory apartments as one of several ways to help meet the need for housing. However, current standards appear to be a significant barrier to construction. Consider: • Iowa City anticipates a demand for over 4,600 additional residences by 2030 • Only 61% of projected demand will be met based on recent trends, which will lead to higher housing costs • 55% of renters and 23% of homeowners are cost -burdened (i.e. spend more than 30% of their income on housing) • The City has allowed accessory apartments since 1987 but averages fewer than 2 units permitted per year equity and inclusion goals. • Only —0.5% of eligible properties have an accessory apartment s d 5 E 4 3 2 0 Accessory Apartments Permitted, 1995 - 2023 Affordable Housing Action Plan • Recommended 15 action steps, including chaff Affordable Housing to zonlna mutations Action Plan - • The only action step not yet completed consists of the recommended changes to zoning regulations "Combdcrregull changes to Qty Code, including.. more budding types bydght as opposed to requiring a [Panned Hut Development) process god sty mutllplex units, cottage clusters, etc)" Fair Housing Choice Study • Lack of affordable rental housing was identified as Air 1196 a significant fair housing issue • The study recommended {—� improving housing choice _-_ as a strategy to help further fair housing allow a wider variety oPoevelopmenf types In areas throughout the commudlfy, Since mast areas are zoned rorlow-0en&fy sbglo- ramllyhomes, fbls will require exploring ways fo Increase the density and types orhousbg allowlcip wblch also bukrafes the creation or hou gvoltsofdlgemnfpricepoldfswlfhlnneighborhoods" Affordable Housing Action Plan Update • The update was created following numerous public input sessions addition to a survey, targeted stak ® holder meetings, and other event ArnoPm • Reiterates the need to explore use PLAN allowed, including the possiblity o allowing rental units to have ADU "Increase the allowable number and/orfype ordwelling unci in single zoning thaduts bynght In more locations Examples Include ADi dup zero- lot line structures" FY23-FY28 City Council Strategic Plan in e- a s f s Prioritizes recommendations in the updated Affordable Housing Action Plan 'Advanceptortrzedrecommendaflonsld the 2022Agordablc Housing Action Plan." Planning & Zoning Commission r • February: Introduced upcoming amendments • July: Summarized the proposed amendments • August: Provided comprehensive overview of the proposed amendments Learn more about Neighborhood and Development Services at wwwicgovorgi ramiry es. and Prioritizes recommendations in the updated Affordable Housing Action Plan 'Advanceptortrzedrecommendaflonsld the 2022Agordablc Housing Action Plan." Planning & Zoning Commission r • February: Introduced upcoming amendments • July: Summarized the proposed amendments • August: Provided comprehensive overview of the proposed amendments Learn more about Neighborhood and Development Services at wwwicgovorgi Accessory Apartments What are they? Accessory apartments, also known as Accessory Dwelling Units (ADUs), are small, self-contained dwellings units located on the same lot as a primary home. ADUs come in a variety of shapes, sizes, and configurations. This allows them to fit discreetly into all sorts of locations including suburban subdivisions, walkable towns, and urban neighborhoods. Possible ADUs arrangements include all of the following: ■ No Detached Unit Attached Unit Interior Upper Level Unil rldorolowejrLeyelUnitAUG Gerege Con Why encourage ADUs? LTo increase housing supply and diversity throughout neighborhoods O O To provide opportunities for people �� seeking a wider range of homes, prices, rents, and locations To reduce negative historical impacts Icreated by exclusionsary zoning To enhance job opportunities by providing housing near transit and job centers gNPS �O To provide convenient living arrangements for families, caretakers, UPJ and/or older homeowners pk1 To create compact growth which positively impacts the environment To improve affordability for homeowners by creating extra income �MTo accommodate development in a cost- / IA effective way GARAGEADU Can include convecting all or ped man attached or detached garage into e residence, may also include adding anADU above e garage or building a new unit for both people end cars, as inthe example above. LOWER LEVEL ADU Can be Greeted through the conversion ole homes excreting basement (provided that height and safety conditions are met), during construction of the house, ores ped of e foundation replacement. DETACHEDADU Aboard alone home on the same lot as a larger primary dwelling. Samples include backyard bungalows end convected outbuildings. Cunently, detached ADUs ere not allowed in Iowa City but would be underthe proposed amendments. (photo opudesty burerkyartl Anus Na the Ametican Planning Asseraahon) Learn more about Neighborhood and Development Services at wwwicgov. org/NDS Must be accessory to detached single-family uses Only allowed in certain zones (RS -5, RS -8, RM -12, RM -20, & RNS-20) Owner must live on-site, a rental permit is required Requires 1 off-street parking space for accessory apartment Limited to 1 bedroom and 2 occupants Proposed Changes 'May be accessory to attached or detached single- family uses, in addition to duplex uses 'Allowed in all zones that allow residential uses O (includes RNS-12, RM -44, PRM, MU, and some other commercial zones) Owner is not required to live on-site, a rental permit is required No off-street parking required for accessory apartment 'Bedrooms and occupants limited by rental permit and O maximum size limits Size limited to the lesser of 650 square feet, 30% of the ' Size limited to the lesser of 1,000 square feet or 50% floor area if in the main building, or 50% of the floor area of the floor area of the main building 0 if in an accessory building An accessory apartment cannot increase the floor area , The square footage for an accessory apartment is of the main building by over 10% ' restricted by maximum size limits O Does not allow a standalone accessory apartment Buildings with an attached accessory apartment must appear to be a detached single-family home, so new entrances must face side or rear lot line Allows a standalone accessory apartment 'Buildings with an attached accessory apartment must appear to be a use allowed in the zone, entrance locations are not dictated NDS 3 Cin or lowA CJn Guiding Principles: OTreat accessory apartments like other residential uses allowed on the property. © Remove barriers preventing the construction of accessory apartments. © Simplify and eliminate redundant regulations. OIncrease the supply of housing. Most Standards Are Not Affected Accessory apartments are only allowed where they comply with all relevant standards. This includes but is not limited to: • Dimensional Standards (such as minimum lot size, minimum open space, maximum lot coverage, etc.) • General Accessory Use Standards Ic h as setbacks and height limits for accessory s, etc.) tal Permit Standards h as maximum occupancy, minimum bedroom unit sizes, etc.) Learn more about Neighborhood and Development Services at wwwicgov. org/NDS Cedar Rapids, Iowa R Ownership: No requirements Size: 1,000 sq. ft. max. but not to exceed footprint of primary structure Occupancy: No requirements Design: 2ADUs allowed per lot, 1 attached & 1 detached, no other requirements Parking: 1 space required Des Moines, Iowa Ownership: Must be owner -occupied Size: 50% of primary structure floor Ownership: area max. (if detached, greater Size: of 576 sq. ft. or 25% of rear yard Occupancy: Max. bedrooms based on sq. ft. Design: Must match primary structure Parking: with regards to roof, materials, 1 color, and character, only one entrance to a house with an ADU may face a street Parking: 1 space required Ann Arbor, Michigan Ownership: No requirements Size: 600 sq. ft. max. for lots up to 7,200 sq. ft., 800 sq. ft. max. for lots of 7,200 sq. ft. or more Occupancy: 2 occupants max. Design: No requirements Parking: No requirements Fayetteville, Arkansas PX4 *4 Ownership: No requirements Size: 1,200 sq. ft. max. Occupancy: 2 occupants max. Design: 2ADUs allowed per lot, 1 Ownership: attached & 1 detached, 2 -story Size: ADUs shall limit access stairs, decks, entries & windows to wal facing primary structure or alley Parking: 1 space required if larger than 1 800 sq. ft. (may be on -street) , Madison, Wisconsin Ownership: Must be owner -occupied Size: 900 sq. ft. max. Occupancy: 2 bedrooms max. Design: Entries in a rear or side yard shall be connected to a street by a paved walkway or driveway, must be above a garage in certain zones Parking: No requirements Durham, North Carolina Parking: No requirements Ownership: No requirements Size: 800 sq. ft. max. but not to exceed 50% of the primary structure floor area Occupancy: No requirements Design: May be accessory to single- family or duplex uses, can only extend forward to the rear 25% of the primary structure Parking: No requirements By the Numbers: 9,950 Properties may currently construct an ADU 36% of single-family and duplex properties in Iowa City are rentals 52 ADUs have been permitted since 1995 +1 400 additional properties may construct an ADU due to proposed changes that expand where ADUs are allowed +39070 additional properties may construct an ADU due to proposed changes that allow ADUs for properties that are not owner -occupied Higher % of properties are expected to construct an ADU due to proposed changes that reduce other barriers to construction �_ Analysis fND�S 1..o.a..wo•ff..a•..,®� CITY OF IOWA CITY Where ADUs Are Allowed: Current & Proposed Single -Family & Duplex Rental Units CNy Park Northside University Impact Area Remet ml ,3 Goosetown _ Toms 544 Ramat sal i Rental Districts Percent 19% The 1Pa] Percent 53% _ Key for Tomof RMap CityHighName of RentalDistrictunit Rental. 155 Rental 5 gl! ly6tl pl units Brooklantl --- Total n36 to 11p 1 Roosevelt .-- PercenC 14% Total Allglfamily &apt unitsRental. 1]2 Percent Percent (single-( ly6 Total. 292 ' duplex unitswitha rental pennon Percent 59% ----- College Green f -w( Rental213 yy..r \ - Tntal.3]s RSt Y; Pemem. s]% Melrose w Emerald _ ReupL39 ,� ->AA ongfellow Totan1.l. 22] - I� Rental o1902 902 Pe¢e1]% � Tohl. py � Percent. 28% Willow Creek — ! Miller Orchard RFC EastB West Mark Twain Bowery Renlal.1" Rents l.31 R n1a1. 30 Rental. 323 Rental. las Tnrar. ]e] Tnnr. ap] Tnrar. bb Tnral leas Tonal. e43 Pement21% P cenc2s% Percent s3% Percent rcent23% Percent s% So. laws Bay Rtldal Impact Area Analysis, June 3Q 2022 Parcel Currently Allows ADUs Of owneroccupied), Would Allow ADUs Under Proposed Changes Regardless of occupancy Parcel Currently Does Not Allow ADUs; Would Allow ADUs Under Proposed Changes Source: ClfyAperamorparcel data downloaded June 14, 2023 Consistency with Comprehensive Plan Preserve Historic Resources and Rermeatin Drvenrtyof Housing Types: Established Neighborhoods: A mix of housing types within e neighborhood provides Adopting strategies to assure the stability and livability of residential opportunities for a variety of people, including Iowa City s historic and established neighborhoods helps singles couples, families with children, and elderly to preserve the culture, history and identity of Iowa City persons. Integrating diverse housing sizes and types Investing in the neighborhoods that ere closest to major throughout the community increases the opportunity for employers in the city preserves opportunities for people to people to live in the same neighborhood throughout the live close to work,school, and shopping, promotes walking steges of life. and bicycling, and reduces vehlC a miles traveled. Compatible Infill Development: AffoNable Housing: Quality infill development plays an important role in By allowing for e mix of housing types, moderately priced neighborhood reinvestment and may include rehabilitating housing can be incorporated into a neighborhood, rather existing structures or encouraging new development of than segregated in one or two areas of the community vacant, blighted, ordeteriorated property Development Townhouses and duplex units can be mixed with single of infill sites should addto the diversity of housing options family homes within a neighborhood. without compromising neighborhood character Learn more about Neighborhood and Development services at wwwicgov. orgj Next StepsNDS Ireo.DS Cin OF lows Grr October 4, 2023: Planning and Zoning Commission Meeting and Possible Recommendation November 6, 2023: Tentative City Council Public Hearing and First Reading November 21, 2023: Tentative City Council Meeting, Second Reading December 12,2023: Tentative City Council Meeting, Third Reading and Possible Adoption M The public is encouraged to express their thoughts regarding the proposed amendments to staff, the Planning & Zoning Commission, and City Council. To provide your input, you can do one (or more) of the following: 1. Provide comments in person at public meetings (noted above); 2. Fill out and return the survey on the proposed code changes (shown right); and/or 3.Submit written correspondence for consideration by the Planning & Zoning Commission and City Council (send to Kirk Lehmann at klehmann@iowa-city.org) This brief survey allows you to share your thoughts on the proposed changes. Results will be shared with the Planning & Zoning Commission and City Council. Accessory Apartment Open House Survey 03 —'se GGG aoo 000 000 GGG 000 ®GGG Accessory Apartment Open House Survey �o �a �G o �G �o ®o ®G �o o p D Questions? Contact Kirk Lehmann Associate Planner klehmann@iowa-city.org 319-356-5247 Learn more about Neighborhood and Development Services at wwwicgov. org/NDS - ATTACHMENT 2 Correspondence Kirk Lehmann From: Mark Signs <mark.signs@aol.com> Sent: Wednesday, September 27, 2023 10:26 AM To: Kirk Lehmann Subject: RE: Proposed ADU changes A ** This email originated outside of the City of Iowa City email system. Please take extra care opening any links or attachments. ** Ki rk, I have purposely tried to stay out of planning and zoning discussions since resigning from the Commission. But the current discussions around zoning changes for ADUs has me itching to comment. So here you go! I agree with what appears to be the majority of folks that allowing ADUs on non -owner -occupied properties would be a big mistake. I think a lot of the concerns coming from citizens are that this would result in landlords building ADUs on rental properties they already own, and turning those new ADU's into additional rental units. I think those are VERY legitimate concerns. As many have commented, MOST off-site owners never take quite as good of care of their properties as do MOST homeowners. Allowing investors to add more units (in the form of an ADU) to their properties will most likely result in additional rental units that will then likely negatively impact the neighborhoods. For years the city has looked for ways to limit the proliferation of rental units in our neighborhoods, especially the older ones. Allowing landlords to build additional ADUs on existing properties seems to fly directly in the face of those previous efforts. I am all for changes that would promote more ADUs on Owner -Occupied properties, and would support any zoning code changes that would limit non -owner -occupied ADUs accordingly. The only other thing I would question is the elimination of parking requirements for new ADUs. As you may recall, when I was on the Commission, I was always generally opposed to zoning changes that lowered the parking requirements for new development. If the city continues to reduce or eliminate parking requirements on residential properties, we will just end up with more streets jammed with more cars - creating more safety issues and problems for street maintenance staff. Iowans (and most Americans) like their cars. Yes, there is a small subset of avid bikers and walkers. But simply eliminating parking spaces is not going to convert car drivers to bike riders - in most cases. I do not believe the "if you don't build it, they won't come" philosophy works. But that's just me. I know the bike lobby in Iowa City is strong! Please share my comments with the P&Z Commissioners, City Council and relevant city staff. And say hello to everyone. I do miss seeing all of you! I Mark Signs South District resident Kirk Lehmann From: amy.charles <amy.charles@protonmaiLcom> Sent: Tuesday, September 12, 2023 9:31 PM To: *City Council; Kirk Lehmann Subject: Re: ADUs and owner residency A ** This email originated outside of the City of Iowa City email system. Please take extra care opening any links or attachments. ** Hi, all -- A followup: as I've reflected on this, I see a major problem with Iowa City ADU changes as described by this proposal that I should've noticed earlier -- I think it can be fixed, but if it isn't, I see it exacerbating problems in our rental market and solving none. As I see it, nothing here stops developers from running away with the ADU idea and building more high-priced student housing -- especially if multi -unit ADUs are on the table, as apparently they are. In particular, if owner - residence is not part of the package for ADUs, it's just a license to build more exploitative housing for the student market in existing rental properties, and encourage developers to buy houses in stable neighborhoods for the conversion value. If you're selling a $350K house and a developer buys it to rent, with another 3 units in the backyard, say that's $100K, 150K to build, that's a huge win for an unscrupulous developer. that could be a rental income stream of $8-9K/mo, or more. In fact I don't know why developers wouldn't bid up housing prices in those neighborhoods to till yield drops to something closer to the ROI expected on rental property -- suddenly that $350K house goes for twice that, so now you've not only created more wildly expensive student housing, you've priced even more people out of homeownership. The idea driving this "more ADUs, make it easy" push seems to be a simple but, I think, wrongheaded supply - demand belief: rental housing's too expensive, build more rental housing, prices come down. While in Econ 101 terms that's true, locally it's naive to the point of being wrong, especially near the university. I'll leave the explanation to the end, so see there if you're interested. Bottom line, though, if you grant developers a license to build more student housing near the U through under -thought -through ADU changes, I see us getting more of the usual problems and the opposite of what you've been trying to do through the UniverCity program. If those changes are more carefully thought through, then given the size of ADUs, I see two target populations that could be assisted with benefit to renters, neighborhoods, and the city: 1. Small low-income households, including elderly, disabled, immigrant populations, minimum -wage workers, and others (affordable housing) 2. Small LMI university/UIHC-employee households Those in the first category have particular need of living within walking distance of jobs, hospitals, transit, shops, and other amenities of city density; affordable rentals downtown also allow people to live car -free, erasing a major expense. Those in the second category are chronically priced out of IC's housing market as prospective homeowners, but the combination of job stability and close -in, affordable, quiet, non -student -housing rentals that reduce car dependence should allow more people to save down payments -- or remain long-term renters, if they preferred that -- and could arguably be more effective than the UniverCity program itself. If ADUs went in that direction, again with owner occupancy required, you could get a really good neighborhood mix of renters and homeowners at various income levels and backgrounds, create a stable long-term renter base and more diverse neighborhoods, and do some real good in solving the chronic unaffordability of IC. You could also create some relief on the voucher side by increasing the stock of small accessible units for people with disabilities. :) And I guess that's all I have to say about it for now. best, and thanks for the consideration - amy 'The supply/demand problem: As a small landlord these last 20 years -- as well as an Iowa Citian who's been watching these efforts since I first worked for the City in '95, when vacancy rates were stuck at 2% -- I'll point out that the Econ 101 idea ignores a massive, permanent distortion in the rental market, which is the UI dorms, which are anything but a free-market exercise in real estate. The annualized dorm fees in effect set a rent floor for the areas near the university. Dorm rooms are expensive, annualized, because not only does UI need them to be, they can be: students, especially first/second-years, are highly captive and they've got convenient grant/loan/tax support for the dorm rents, which are folded into COA and help determine their financial aid. Higher COA, more fin aid. All of it goes on the U -bill, which grants/loans/etc. pay automatically, adding to the convenience of dorm life. As for private landlords, we need be attractive only in relation to dorm life in order to draw student renters. And aggressive private landlords, which is most of them, will at best price just below dorm rates per room annualized, extracting every penny they can. With rents in that range, students and their parents -- already habituated to "this is what housing costs in college' — feel it's reasonable to trade convenience for independence and a sense of growing up. They'll pay even more for more room, privacy, amenities, etc. (Two years ago, when I had my last turnover, I had people contacting me while I was mid -signing, trying to bid up the rent sight unseen to something closer to dorm level, and being pretty tenacious about it. There were plenty of other, fairly similar apartments available nearby, no actual housing scarcity. But it was a case of "I saw an apt I wanted online, normal housing here goes higher, I'm fine with throwing money to seal the deal fast.") That artificial floor for the rental market, along with UI's reservoir of potential renters, means, I think, that we'd need to see a large oversupply of student rental housing before unregulated off - campus prices budged much: I don't see that major rental companies have an incentive to back away from the dorm -level rents otherwise. And ADUs are not going to create that kind of oversupply, which I'm pretty sure we don't want anyway. Student housing expenses are a serious problem for many students, and so are their effects on the rental market for everyone else. But after 30 years of blind "just build more, supply up, price down" with prices high and rising throughout, and giant, cheaply -built, future -white -elephant off -campus dorms now dotting the town, I'd like to see us approach that problem -- and, in this instance, ADUs — more thoughtfully. ------- Original Message ------- On Thursday, August 31st, 2023 at 10:53 AM, amy.charles <amy.charles@proton mail.com> wrote: Hey, all - I saw Kirk's flyer about the ADU meeting, which I won't be at, but wanted to chime in In general I think granny flats are a grand idea, but: The owner -residency requirement needs to stay. We already have chronic problems with properties and tenants left neglected because the owners live elsewhere and have no intention of keeping an eye on what goes on or keeping the place properly maintained. I just called in a neglect case a couple months ago on a SFH rental with years' worth of problems around the comer from me -- for a while they just had noise problems, but the property became dilapidated. The owners live in Florida and over the years I've called them at work repeatedly to tell them to get their property maintained and in decent condition for their tenants. This year I gave up and turned it over to city enforcement. Clearly, though, they have no intention of maintaining the property unless forced to, and that's pretty normal for absentees. Owners need to maintain neighborhood skin in the _game. Increased noise levels have to be taken into account -- something that the owner -residency requirement helps with. One backyard granny flat has the potential to be a noise nuisance for every other house on the block, and we don't have much help forthem at the moment. Given that people work and go to school remotely at high rates, we have a big hospital/restaurant population here doing shiftwork and sleeping during the day, and we also have populations sensitive to noise, we can't just shrug and tell people there's not much we can do about chronic ADU-related daytime noise after going and making quiet neighborhoods noisier while trying to solve a different social problem. Dogs left in small ADUs to bark all day, loud music, parties, etc. need to be considered, and enforcement discussed and defined before new ADU rules are passed. And, again, if owner - landlords have to live in the main dwelling units, they're more likely to regulate noise themselves. Funding should be made available for maintenance, and maintenance enforced. Commercial property in IC is generally held to a much lower standard of maintenance than private residences are on the market, and a dilapidated ADU will affect the sale price of adjacent properties. Given the goal of easing housing availability, though, low- or no -interest loans and grants for maintenance should be available for ADU owners under 110% AMI, and maintenance enforced. New ADUs should be built as efficient dwellings. Good for tenants, good for the environment. Again, funding should be made available through the City to support installation of solar panels, heat pumps, double- or triple -glazed windows, R60 attic insulation, 2x6" stud walls, orientation to take advantage of solar gain, and so on. ADUs built in or above garages will need particular attention -- these spaces are often underinsulated and encourage the use of space heaters. Consider a residence -based requirement. I think we all know that any new rental units built are likely to go preferentially to students, who are the easiest tenants to find and have ready access to loan money to pay rents with. If the intention here is to create housing for non -students, consider a requirement of establishing residence in IC. Otherwise, granny -flat away — and yes, more well-built duplexes and townhouses, please, they're great and affordable; some architecture wouldn't kill us, either — thanks for all the hard work amy ATTACHMENT 3 July 5, 2023 Memo Regarding Zoning Code Amendments r �®,,CITY OF IOWA CITY MEMORANDUM Date: July 5, 2023 To: Planning & Zoning Commission From: Kirk Lehmann, Associate Planner, Neighborhood & Development Services Re: Zoning Code Amendments to improve housing choice, increase housing supply, and encourage affordability (REZ23-0001) Introduction Iowa City has a uniquely expensive housing market in Iowa. As a result, the City has increasingly focused on facilitating the creation of affordable housing opportunities and on enhancing housing choice within neighborhoods with a special focus on equity and low-income households. The City's Zoning Code (Title 14) impacts housing choice and supply, which can affect affordability. To further goals identified in the Comprehensive Plan regarding affordable housing, staff proposes several amendments to Title 14 to enhance housing choice and support a more inclusive, equitable city. These include: • Increasing flexibility for a range of housing types to facilitate diverse housing choices; • Modifying design standards to reduce the cost of construction while creating safe, attractive, and pedestrian -friendly neighborhoods; • Providing additional flexibility to enhance the supply of housing by modifying dimensional standards and reducing regulatory barriers to accessory apartments; and • Creating incentives (e.g., density bonuses and parking reductions) to encourage income - restricted affordable housing throughout the community. The proposed amendments also include provisions to improve fair housing. This will help ensure that housing within neighborhoods can support a range of living situations and advance the City's equity and inclusion goals. At your meeting on July 5, staff will provide an overview of the proposed amendments, answer questions, and request feedback from the Commission. These amendments will not solve all issues related to housing affordability or equity, but they can help improve housing choice, increase housing supply, and encourage affordability. Consequently, they are just one part of the larger effort to encourage affordability. By implementing these strategies, the City can become a more inclusive, diverse, and equitable place that provides housing opportunities for all residents. Background Affordable housing is complicated because it depends on a variety of factors including income, household characteristics, education, the cost of necessities such as child and health care, and the cost of housing itself. The U.S. Department of Housing and Urban Development (HUD) considers housing to be affordable if a household pays no more than 30% of its gross income on housing costs, including rent or mortgage payments, other fees, and utilities. Most publicly subsidized housing is targeted to households that make less than a certain percentage of the area median income (AMI) based on household size and housing tenure, as noted in Table 1. HUD defines households making less than 80% AMI as low income. For households with lower incomes, it is often the case that the housing families can afford may not meet their needs, such as a large family in a one -bedroom apartment, or they simply can't find housing that is affordable. July 5, 2023 Page 2 Table 1: Household Income Limits Based on Household Size and Area Median Income AMI Household Size 1 2 3 4 5 6 Owner Households $64,650 $73,850 $83,100 $92,300 $99,700 $107,100 (80% AM 1) Renter Households $48,480 $55,440 $62,340 $69,240 $74,820 $80,340 60% AM I Effective June 15, 2023, and updated annually One of the primary factors affecting housing affordability in Iowa City is continued growth. The metro provides a great quality of life and the University of Iowa and University of Iowa Hospitals and Clinics helps provide a strong economic base. These in turn draw new residents. However, continued growth has also strained housing affordability, especially for lower income households, because the demand for housing is not being met by an adequate housing supply of new construction as noted in the City's recent residential development analysis (Attachment 1). This leads to increased competition, rising rental prices (especially in neighborhoods near the university), and higher sales prices. As a result, certain households can be priced out of the city. Another factor that influences housing choice and supply, and therefore the cost of housing, is the Zoning Code. Zoning is a tool used by the City to implement its Comprehensive and District Plans by providing rules for how land can be developed and used, including what structures can be built where and how they may be designed. The code must balance multiple goals, including protecting property values, encouraging appropriate uses of land, providing for a variety of housing types, promoting economic stability of existing and future land uses, lessening congestion and promoting access, preventing overcrowding of land, avoiding undue concentration of population, and conserving open space and natural, scenic, and historic resources. Given this context, it is crucial to continually assess whether the code is addressing the policy goals of the City as identified through public input processes and adopted plans. Public Engagement City Council adopted its first Affordable Housing Action Plan in 2016. The Plan identified 15 action steps based on goals in long-term planning documents and on previous public input about how the City could help address housing affordability. Since then, the City completed 14 of the action steps in the plan with the exception of regulatory changes to the code in support of affordable housing. In addition, the City continued engaging stakeholders during and after this process to identify additional solutions and barriers preventing the construction of affordable housing. In 2019, the City adopted a Fair Housing Choice Study which comprehensively reviewed impediments to accessing housing because of protected class such as race, gender, or disability as codified in the federal Fair Housing Act. This Study included recommended actions to affirmatively further fair housing based on extensive public input such as targeted feedback from stakeholder interviews and focus groups, a fair housing survey, public events, and a public adoption process. One of the most significant fair housing issues identified was lack of affordable rental housing, and improving housing choice was one of many strategies recommended to help address this issue. The full list of recommendations is included in Attachment 2. The City updated its Affordable Housing Action Plan in 2022 to build off previous efforts in support of affordable housing. Its recommendations, included in Attachment 3, were developed following nearly a year of data review and community engagement. Public input included the following: • American Rescue Plan Act citywide survey with over 1,800 responses and listening posts; • General outreach activities at Wetherby National Night Out, Fairmeadows Party in the Park, and CommUnity Crisis Services and Iowa City Compassion Food Bank distributions; • Meetings with targeted stakeholders such as the Disability Services Coordinating Committee, University of Iowa Student Government leadership, Catholic Worker House, July 5, 2023 Page 3 Agency Impact Coalition, Open Heartland, and community and economic development organizations; and Comments from the Greater Iowa City Area Home Builders Association and Iowa City Area Association of Realtors regarding development regulations and from the Housing Action Team of Johnson County Livable Community for Successful Aging Policy Board regarding Accessory Dwelling Units. City Council drew upon previous planning work, studies, and community conversations to refine strategies, determine action steps, and establish priorities for their FY23-FY28 Strategic Plan. A summary of the action steps, which includes advancing prioritized recommendations in the 2022 Affordable Housing Action Plan, is included in Attachment 4. While the City has made significant progress since 2016, the proposed amendments are another step towards achieving the City's goals as the culmination of these extended efforts. Zoning Code Amendment Summary & Justification The proposed amendments to Title 14 Zoning are intended to improve housing choice, increase housing supply, and encourage affordability while also enhancing equity in Iowa City. The following list describes current and proposed regulations, organized by topic. A future memo will include specific language and more detailed analysis. 1. increase flexibility for a range of housing types The City of Iowa City has regulated uses since the adoption of its first zoning code in 1925. Over time, the ordinance expanded from simply distinguishing between residential, business, and industrial uses and zones to more complex structures regulating housing types and household arrangements, in addition to where they may be located. This has often resulted in zones that segregate and discourage housing types which are more financially accessible to lower income households in much of the community, even if they would not create substantial impacts. Consequently, the City has identified the need to expand the range of housing types allowed, especially in single-family zoning districts, in its 2016 Affordable Housing Action Plan, its 2019 Fair Housing Study, and again in its 2022 Affordable Housing Action Plan. The following changes are intended to create flexibility and streamline processes for a variety of more affordable housing types that would have limited impacts on neighborhood character. a. Allow duplex and attached single-family uses throughout single-family residential zones. Currently duplexes and attached single-family homes are only allowed on corner lots in the RS -5 and RS -8 zones. The proposed amendment would allow such uses to be located anywhere in a block. This provides additional flexibility to facilitate the inclusion of these housing types in more neighborhoods compared to current requirements. b. Allow townhome-style multifamily provisionally in the RS -12 zone. Currently up to 6 attached single-family dwelling units (i.e., one unit per lot) can be located in the RS -12 zone. The proposed amendment would allow up to 6 side-by-side, attached dwelling units to be located on one lot. Generally, these two uses are indistinguishable from the street since the only difference is the composition of lots. As such, this provides an additional method to provide housing without affecting the appearance of the neighborhood. c. Allow multi -family uses on the ground floor in most commercial zones by special exception and provisionally allow multi -family uses in the CC -2 zone. Currently, the code only allows multi -family uses on the ground floor in a few Central Business zones under very specific circumstances. In most commercial zones, multi -family uses are only allowed above the ground floor. Additionally, multi -family uses in the CC -2 zone require a special exception which must be approved by the Board of Adjustment. The proposed change would allow multi -family uses provisionally in the CC -2 zone and would also allow multi -family uses on the ground floor in most commercial zones through a special exception. This would mean a ground floor multi -family use must be reviewed by the Board of Adjustment to ensure all July 5, 2023 Page 4 approval criteria are met while multi -family uses on upper floors would be allowed provisionally in most commercial zones. This simplifies the process in most mixed-use contexts while permitting ground floor multi -family uses only where they are appropriate. d. Regulate assisted group living uses more consistently with multi -family uses in RM -12, CN -1, CC -2, CB -2, CB -5, and CB -10 zones. Assisted group living uses, which include assisted living facilities and group care facilities such as nursing homes, are currently allowed in many but not all zones where multi -family uses are allowed. In some cases, additional approval processes are also required. The proposed amendment would regulate assisted group living uses more consistently with multi -family uses by allowing it in more commercial zones, eliminating the need for a special exception in the RM -12 zone, and removing it as an allowable use in the CI -1 zone. The CI -1 zone is an intensive commercial zone where residential uses are typically not allowed. This provides for a greater variety of living arrangements without impacting the character of each zone. 2. Modify design standards Standards regarding building and site design based on zone, use, and location help ensure safe, attractive, pedestrian friendly neighborhoods. However, the 2016 Affordable Housing Action Plan identified a need to review the multi -family site development standards to reduce cost and expedite approvals, which has been supported by ongoing feedback from the Affordable Housing Coalition and Homebuilders Association. Design standards continue to be important, but staff recommends some adjustments to help reduce the cost and timing of compliance without impacting the purpose of the standards. a. Eliminate some multi -family site development standards to provide flexibility. Buildings containing multi -family or group living uses not built of masonry or stucco must have a 2 - foot base of masonry, stucco, or dressed concrete, and where wall materials change, they must wrap 3' around the corner. This often requires additional material which has cost and design implications. Removing these provisions will improve affordability and flexibility while continuing to meet the intent of the multi -family site development standards. b. Adjust standards to allow attached single-family and duplex uses in mid -block locations. Attached single-family and duplex uses in RS -5 and RS -8 zones are only allowed on corner lots, and each unit's main entrance and garage must face a different street to appear like a single-family home. The proposed amendment would allow attached single- family and duplex uses in mid -block locations which would require different standards. Staff proposes amending the use standards in such a way to facilitate mid -block duplex and attached single-family uses consistent with other buildings in the neighborhood. c. Simplify the process to reduce parking setbacks for townhome-style multi -family uses. Currently, townhome-style multi -family uses cannot have parking for the first 15' of building depth. This makes sense for the front, but parking for end units must be set back 15' where they abut a street. While this standard may be waived by minor modification, it requires additional process and there is no similar requirement for attached single-family uses. The proposed amendment would allow the Building Official to simply waive this requirement for townhome-style multi -family uses without a minor modification. 3. Provide additional flexibility to enhance the supply of housing Iowa City is always balancing the demand for student rentals near downtown with concerns regarding quality of life for long-term residents and redevelopment in older neighborhoods. Residents near the edge of the city are also often wary of new development. As a result, single- family zones with lower densities, specifically RS -5 and RS -8, often become a default to try and minimize neighborhood opposition. This has several impacts including more conventional development patterns at the edge of the city that are often at odds with the City's sustainability and equity goals. In some areas, RS -5 was also applied to historic small lot areas near downtown July 5, 2023 Page 5 which created non -conforming lots. In addition, planned development overlays are often required to recreate neighborhoods like those in the core of the city. Additionally, standards like bedroom caps for non -single-family detached units and policies on accessory apartments (a.k.a. accessory dwelling units) limit what housing types can serve households throughout the City. a. Modify dimensional standards to better align with existing lots and newer form -based standards, and to ensure greater consistency by use. Current and proposed dimensional standards are noted in the table below. In some older neighborhoods, lot sizes and widths do not conform to current zoning requirements, and standards for missing middle housing types are well above those in recently adopted for form -based zones (14-2H). The proposed amendment would reduce the minimum lot size and width for detached single- family uses in RS -5 zones and allow the RNS-12 zone to utilize the single-family density bonus which together align standards more closely to historic lot requirements. In addition, it would reduce lot widths for detached single-family uses in RM zones to match those for single-family uses in other zones. Finally, it would reduce minimum standards for duplex and attached single-family uses in RS -5 and RS -8 zones to be closer to those in the recently adopted form -based zones. These updates provide additional flexibility and enhance the supply of housing in a way that is consistent with the comprehensive plan. Zone Use Lot Size (Sq. Ft. Area/ Unit (Sq. Ft. Lot Width Ft. Frontage Ft. RS -5 Detached Single-family Current 8,000 (6,000 w/ rear access 8,000 (6,000 w/ rear access 60 (50 w/ rear access) 45 (30 w/ rear access) Proposed 6,000 (5,000 w/ rear access 6,000 (6,000 w/ rear access 50 (45 w/ rear access) 40 (30 w/ rear access) Duplex Current 12,000 6,000 80 80 Pro osed 10,000 5,000 70 70 Attached Single -Family Current 6,000 6,000 40 40 Proposed 5,000 5,000 35 35 Other Uses Current 8,000 n/a 60 45 Proposed 6,000 n/a 50 40 RS -8 Duplex Current 8,700 4,350 70 70 Proposed 8,000 4,000 60 60 Attached Single -Family Current 4,350 4,350 35 35 Proposed 4,000 4,000 30 30 RNS- 12 Detached Single-family Current 5,000 5,000 45 25 Proposed 5,000 (3,000 w/ rear access 5,000 (3,000 w/ rear access 45 (30 w/ rear access) 25 (20 w/ rear access) RM- 12 Detached Single-family 5,000 5,000 55 40 osed nochan a no chane 45 no chap e RM- Detached Single-family ;Current rent 5,0005,0005520 os no chane no chane 45 no chap e b. Allow additional bedrooms for attached sinale-familv. duplex and multi-familv uses outside of the University Impact Area. The code limits multi -family uses to 3 bedrooms and duplex and attached single-family uses to 4 bedrooms. Staff recommends increasing the number of bedrooms allowed outside of the University Impact Area (see map in Attachment 5) to 4 bedrooms for multi -family uses and to 5 for duplex and single-family attached uses. This allows these uses to accommodate a wider range of family types in areas where development pressure for student rentals is less than near downtown. c. Encourage accessory apartments in a broader variety of contexts and reduce barriers to construction. Currently, accessory apartments are only allowed in conjunction with owner- July 5, 2023 Page 6 occupied, detached single-family homes in a limited number of zones. The proposed amendment would make several changes generally based on recommendations by the Housing Action Team of Johnson County Livable Community for Successful Aging Policy Board (Attachment 6). Proposed changes include allowing accessory apartments on any lot that allows household living uses and does not contain more than two dwelling units as a principal use (including all single-family and duplex lots). In addition, the amendment would remove barriers such as requirements for owner -occupancy, an additional parking space, that additions not exceed 10% of an existing building's floor area, that the unit only have one bedroom, and that detached accessory apartments not exceed 50% of an accessory building's floor area. It would also increase the allowable size of a detached accessory apartment to 1,000 square feet, though it still must be smaller than a percentage of the principal use. These changes help increase the supply of housing by encouraging the development of accessory apartments. 4. Create regulatory incentives for affordable housing The proposed amendments above help enhance housing diversity and increase housing supply, but they do not specifically create income -restricted affordable units for low-income households. As such, staff also recommends creating new regulatory incentives (i.e., density bonuses, flexibility, and parking reductions) for affordable housing in conventional zones. This would help reduce the cost of units in exchange for providing housing for low-income households in ways similar to other programs that directly subsidize affordable housing. As part of these changes, staff recommends consolidating multiple sections that encourage the provision of affordable housing into one section. This should enhance understanding and streamline administration. a. Create a density bonus for affordable housing units in conventional zoning districts. Currently the City offers height bonuses for affordable housing in Riverfront Crossings and density bonuses in Form -Based zones, but conventional zones only provide density bonuses for alleys serving single-family detached housing, for multi -family elder housing, for quality design elements in certain zones, and for features promoting sustainability. Staff proposes adding a 20% density bonus in exchange for 20% of units in a development being regulated as affordable housing for 20 years. The bonus would be administered through existing processes, primarily during site plan, subdivision, or OPD rezoning review depending on the project. This would help off -set the financial costs of providing affordable housing by increasing the allowable number of dwelling units. The proposed change may also include additional flexibility from dimensional and site development standards and would consolidate multiple sections of the zoning code that address affordable housing into a common set of definitions, requirements, and incentives. b. Expand existing parking reductions for affordable housing to all zones. Currently in the Riverfront Crossings District and Form -Based Zones, no minimum amount of parking is mandated for affordable housing. The code also allows a minor modification in CB -5 and CB -10 zones to exempt up to 30% of dwelling units in an affordable housing project from the minimum parking requirements. These should be consolidated into a single requirement exempting income -restricted affordable housing from minimum parking requirements in all zones if it serves that purpose for 20 years. This requirement will help offset the cost of providing affordable housing through an indirect subsidy equal to the cost of building parking areas. 5. Address fair housing In order to make Iowa City a more equitable place to live, staff also proposes amendments to help enhance fair housing as recommended by the City's 2019 Fair Housing Study. a. Create a process to request reasonable accommodations from the zoning code. By federal law, cities are obligated to provide reasonable accommodations to land use or zoning policies when they may be necessary to allow persons with disabilities to have an equal July 5, 2023 Page 7 opportunity to use and enjoy a dwelling. Currently, the zoning code has some specific waivers (such as a minor modification to allow a ramp in the front setback), but they do not cover every accommodation and are not easily found. Adding a "Reasonable Accommodations Request" process would streamline the ability to grant reasonable accommodations with a defined approval procedure. b. Reclassify community service — long term housing uses as a residential use. Currently, long-term housing operated by a public or nonprofit agency for persons with disabilities is classified as a community service — long term housing use, which is considered an institutional use and is regulated differently from residential uses. Major differences include that community service — long term housing is only allowed in a few commercial zones (including the CI -1 zone which does not allow household living uses), but it is not allowed in residential or the CN -1, CB -10 or MU zones. On one hand, long term housing uses allow higher densities and less parking than residential uses in the zones in which it is allowed, and it is typically accompanied by on-site supportive services. On the other, it can trigger additional process where it is near single-family residential zones, and it requires a neighborhood meeting and management plan which are not required for any other residential use that houses persons with disabilities. To date, only two properties are classified as community service — long term housing uses. The proposed amendment would reclassify community service — long term housing as a residential use, and it would specify that supportive services only for residents are considered an accessory use. Where supportive services are provided for a population outside of a development, they would be considered a separate use. The proposed amendment would allow housing with supportive services for persons with disabilities more widely in the community while addressing a potential fair housing issue. Next Steps At the Planning & Zoning Commission's first meeting in August, staff will present proposed changes to zoning code. A future memo to the Commission will provide a more detailed outline of the proposed Zoning Code amendments, along with additional analyses. Draft code language will also be available for public review, and staff will accept comments throughout the adoption period. Attachments 1. Memo Regarding Iowa City Residential Development in 2022 2. Excerpt of Recommendations from the Fair Housing Choice Study, 2019 3. Excerpt of Recommendations from the Affordable Housing Action Plan Update, 2022 4. Excerpt of the Action Plan from the FY23-FY28 City Council Strategic Plan 5. Map of the University Impact Area 6. Housing Action Team of Johnson County Livable Community for Successful Aging Policy Board Recommendations for Code/Ordinance for Accessory Dwelling Units (ADUs) Approved by: t� • % ^� Danielle Sitzman, AICP, Development Services Coordinator Department of Neighborhood and Development Services CITY OF IOWA CITY MEMORANDUM Date: March 15, 2023 To: Geoff Fruin, City Manager From: Kirk Lehmann, Associate Planner Re: Iowa City Residential Development in 2022 Introduction: Every year, the City of Iowa City analyzes residential subdivision and building permit data to track development patterns and to compare recent and long-term trends. The goal is to provide accurate information that can be used during land use and planning decision-making processes, and to provide a discussion on implications for future growth. Key takeaways in 2022 include: - 2022 continued the trend of low levels of residential lot creation from the past few years. - The number of dwellings units permitted increased slightly from 2021, but the City is still seeing fewer units permitted than before the pandemic. - Permit activity continues to outpace the creation of new lots, which diminishes the supply. - If residential growth continues its recent pace, the City will only be able to accommodate less than 6,300 new residents by 2030, compared to a projected demand of 10,240. - While redevelopment can provide some additional housing, the City is still on track to experience unmet demand and deplete its supply of all vacant lots. Where housing demand remains unmet, the City may see impacts to its population growth and the growth of surrounding communities, which has implications on the City's sustainability and housing affordability goals. One of the fundamental aspects of planning is being able to accommodate new growth. Staff believes it is important to continue encouraging residential development in areas with access to City services, as well as in the City's planned growth areas. Background: Residential development is the process by which land is prepared for new dwellings, either as new construction on vacant land or redevelopment on land that was previously developed. It includes a series of steps with each step provides more clarity to the size, type, and appearance of the development. However, it is the final two steps of the land development process that provide the best understanding of how many new dwelling units are expected in the next few years: - Final Plats: A subdivision permanently delineating the location and dimensions of features such as lots, streets, easements, and other elements pertinent to the transfer of property. - Building Permits: The final administrative approval of building plans to allow construction. In general, the City distinguishes between three types of development. Single-family development includes one principal dwelling unit on a lot, which may be detached or attached to adjacent units (such as townhomes) and which may include accessory dwelling units. Duplex development includes two principal units on a single lot. Multi -family development includes three or more principal dwelling units on a single lot, which may include apartments or condominiums. In buildings with a mix of residential and non-residential uses, all dwellings are considered multi- family. March 15, 2023 Page 2 Analysis: This section reviews short-term and long-term trends on the approval of final plats, the issuance of building permits, and the number of vacant lots. This is used to estimate how long the supply of lots will last given recent development activity. Final Plat Activity In 2022, City Council approved two final plats with residential components: Sandhill Estates Part 5 in the south and Hickory Trail Estates in the northeast. While they encompass 57.63 acres, only 18.65 will be developed with 38.98 acres dedicated as parkland. In total, these subdivisions created lots that can accommodate 18 single-family units and an assisted living use with an estimated 140 beds (which are counted as dwelling units in Figure 1). Both properties were zoned Low Density Single -Family Residential with a Planned Development Overlay (OPD/RS-5). In 2022, the residential lots platted will accommodate the lowest number of single-family dwelling units since at least 1990 with the exception of 2010 (long-term trends are in Attachment 1). This is somewhat offset by the multi -family lot with a proposed 140 -bed assisted living facility. While beds typically do not count as dwelling units, they do help accommodate some residential growth. Overall, the number of lots produced were below the average lots platted from 2012 to 2021, which would have accommodated an average of 128 single-family, 7 duplex, and 136 multi -family units annually. Figure 1 shows residential lots subdivided by type from 2012 to 2022. Figure 1: Residential Lots Subdivided by Housing Type (in Anticipated Dwelling Units), 2012-2022 450 400 350 a 300 m 250 0- 200 150 50 loo 11111111111 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 ■Multi -Family 209 76 7 144 98 279 206 204 108 32 140 ■Duplex 16 0 2 18 0 14 12 0 0 12 0 ■Single Family 111 154 254 259 169 31 105 79 56 65 18 Over the previous 30 years, enough lots were created to accommodate an average of 133 single- family units, 11 duplex units, and 123 multi -family units each year. This indicates that the production of single-family and duplex lots has somewhat decreased over time, while the production of lots accommodating multi -family units has increased. However, lot creation tends to occur in cycles lasting about 10 years with a recent peak in 2015. The City appears to be near the low point of its development cycle, though staff had hoped to see a larger rebound in development trends after last year. If past trends hold, development may increase over the next few years to peak around 2026. Several final plat applications are currently under review this year, which should help numbers in 2023. March 15, 2023 Page 3 Building Permit Activity With regards to building activity, the City issued permits for approximately 363 dwelling units in 2022. Figure 2 shows residential building permits issued by type from 2012 to 2022. Trends for building permits include the following: - Single -Family: The number of single-family building permits sunk to 95 units from a brief uptick during 2021 and is now well below the 10 -year (138) and 30 -year (145) averages. Since 1990, 358 more single-family building permits were issued compared to lots created, which has decreased the supply of vacant single-family lots over time. - Duplex: Only 2 duplex units were permitted in 2022, which is lower than the 10- and 30 - year annual averages of 10 and 22 respectively. However, relatively few duplexes are permitted annually, which causes greater variation in numbers. Prior to the 2005 zoning code update, duplexes were about twice as common. The supply of duplex lots also decreased over time with 166 more duplexes permitted than lots created since 1990. - Multi -Family: Permits for multi -family units increased to 266 units in 2022, but the number is still slightly below both the 10 -year average (386) and 30 -year average (274). Of the units permitted this year, 249 are due to a single building in the Riverfront Crossings District. Notably, no multi -family units were in mixed use buildings this year. Figure 2: Residential Building Permits Issued by Housing Type (in Dwelling Units), 2012-2022 1200 1100 1000 900 800 700 600 500 400 300 200 100 0 (Multi -Family, Mixed Use ■ Multi -Family ■ Duplex ■Single Family 2012 2013 100 27 140 488 16 8 143 171 2014 37 218 14 176 2015 2016 2017 47 340 150 499 556 203 6 12 8 137 172 157 11011 2018 2019 2020 2021 2022 169 59 0 40 0 163 417 49 155 266 10 8 8 6 2 109 80 97 133 95 Attachment 2 shows long-term trends in building permit activity. Similar to platting patterns, single- family and duplex building permits occur in cycles, but they have trended downward the past 30 years. However, multi -family construction has increased over time, especially following the adoption of the Downtown and Riverfront Crossings Master Plan in 2012. This has led to redevelopment in the Riverfront Crossings District, which is reflected in the recent peak in multi- family activity that culminated in nearly 900 multi -family units permitted in 2016 alone. As a result, the total number of units permitted has trended upward over the past 30 years. March 15, 2023 Page 4 Development Potential In general, the number of new building permits exceeded the creation of new lots for all development types since at least 1990. Because multi -family development often occurs on infill sites, it is less dependent on the creation of new lots compared to single-family and duplex development. Figure 3 notes the number of vacant lots in Iowa City, the number of dwelling units they can accommodate, and whether they still require infrastructure for a building permit to be issued. This year's memo provides a more complete understanding than last year's because it includes all vacant lots in Iowa City rather than just those in subdivisions platted since 1990. Figure 3: Number of Vacant Lots by Type of Dwelling and Provision of Infrastructure Dwelling InfrastructureRequiredl Infrastructure Provided Total Type Lots Units Lots Units Lots Units Single -Family 124 124 270 270 394 394 Duplex 0 0 12 24 12 24 Multi -Family 4 56 16 709 20 765 At the end of 2022, the City had approximately 394 vacant single-family lots, of which 270 are currently served by infrastructure. The City also contained 12 vacantduplex lots with infrastructure provided. With regards to lots that still require infrastructure to be built, the City anticipates 18 single-family lots will become buildable next year in Sandhill Estates Pt. 5 which was recently platted. The other 106 single-family lots that still require infrastructure are from older subdivisions that are not likely to be built out anytime soon. Note that residential lots owned by adjacent property owners and used as a single lot are excluded from these numbers because they are unlikely to develop. Most vacant single-family lots available for development are in the Northeast, South, or Southeast Planning Districts. Multi -family development depends less on new lot creation because many new units are part of redevelopment projects on existing lots. At the end of 2022, the City had around 20 vacant multi- family lots, of which 16 had infrastructure provided. 14 of these lots are on greenfield sites and are expected to accommodate at least 483 dwelling units (including the assisted living facility with 140 beds). The other 2 lots are on infill sites and concepts show them accommodating at least 226 units. The 4 multi -family lots that do not yet have infrastructure constructed are expected to accommodate at least another 56 dwellings units. Vacant developable multi -family lots are spread throughout the City, including the North (52 units), Northeast (70 units + 140 beds), Southeast (75 units), South (36 units), Northwest (110 units), and Central/Downtown (226 units) Planning Districts. Undevelopable lots are currently located exclusively in the South District. There is also some capacity for additional units on partially developed lots that are not included. Based on development trends from 2012 through 2021, the supply of vacant lots with infrastructure would last as follows: - 2.0 years for single-family units (down from 2.7 in 2021), - 2.4 years for duplex units (down from 3.7 om 2021) - 1.8 years for multi -family units (up from 1.7) — note redevelopment extends this timeframe. Because this analysis is more complete than that conducted last year, the decrease in the supply of vacant single-family and duplex lots points to an even larger deficit than previously understood. March 15, 2023 Page 5 Discussion: The year 2022 marks one of the lowest levels of residential lot creation in at least 30 years, especially as it relates to single-family lots. It also reflects broader trends such as building permit activity outpacing the creation of new lots. This has resulted in a diminishing lot supply which is not meeting the demand. Ripple effects include increased competition for a limited supply of residential lots, which can increase lot prices. Despite this, the number of dwelling units developed has increased over the past 30 years, primarily due to multi -family redevelopment which does not depend as heavily on the creation of new lots. Looking forward, the Metropolitan Planning Organization of Johnson County (MPO) projects a demand for 10,240 new residents in Iowa City by 2030. However, if recent trends continue through 2030, the City would only be able to accommodate new population as follows: 2,626 new residents based on the development of all vacant residential lots (in 394 single-family units, 24 duplex units, and 765 multi -family units); or - 3,189 new residents based on average annual residential lot creation trends from 2020 through 2022 (in 463 single-family units, 40 duplex units, and 933 multi -family units); or - 6,297 new residents based on average annual building permit trends from 2020 through 2022 (in 1,083 single-family, 53 duplex, and 1,700 multi -family dwelling units) Based on the most optimistic scenario, the City stills need to develop and build out all currently platted vacant lots, and add lots accommodating an additional 689 single-family, 30 duplex, and 935 multi -family dwelling units over the next 7 years. This would still only accommodate 61 % of the projected demand for new housing and would leave the City with no available lots for the next decade. To meet the full demand projected by the MPO, the City would need to construct approximately 3,430 dwelling units, on top of developing all existing vacant lots. Staff anticipates the completion of several final plat and redevelopment applications this year which will help next year's outlook. However, these trends continue to highlight a significant deficit. If Iowa City cannot meet its demand for housing, it may see slower population growth along with other repercussions. First, excess demand may locate in nearby cities, such as Tiffin or North Liberty, which have seen a proliferation of new residential lots. This can create negative environmental impacts as homes shift further from employment centers and car dependence and traffic congestion increases. Other impacts include rising housing prices - when supply cannot meet the demand for housing, Iowa City becomes less affordable. Regardless of the cost when built, new homes are needed to help the City meet its demand for housing to achieve affordability. Accommodating new residential growth is a fundamental aspect of planning for the future of Iowa City. Staff believes it is important to continue to encourage residential growth in areas that have access to City services, such as in infill locations, as well as in the City's designated growth areas which are anticipated to become part of the City in the future. Attachments 1. Residential Lots Subdivided by Housing Type (in Anticipated Dwelling Units), 1990-2022 2. Residential Building Permits Issued by Housing Type (in Dwelling Units), 1990-2022 N N O � N O N N M N N (O Joe o 0 N o m r 4P S� d PS r N m � N W m r N V N N I-, ss 02 paI /411 V170 ry m r O N £1Z �iP/ £2 4'C a�,d' appJ N N p'ilia �`t'P Aalry 111d, �Gsh, p,Jb N Jb �S S %p14 o N W O W N W N 6O 4p 02 . N O n 0o N m W o M m 9 0, a2 Qo ry r � Q o M 'oo J6, O ��4p balp. O N N O O N Q N Q N m N SSaJ O�� O ry W N N m a� LO, O� IP 'Y W W W W W O W Q r W N o m N W N W m N W � Q W N N N M W W N N W m N M N W W Q Q O Q r W m m O O (Qp N O W Q N N 0 0 0 0 0 0 0 0 0 0� v v r`pi M N N o =' l4P''' S IUn 6U1aM a � n aP�edia_ u nv ii 1 � 3 D 4Qis O O 0 N 0 N N N -No o N ry r 0 ry O O o umi o N M W (O N N r M O N N W W W m M m m r N 020 ap4P � S'li SSL. PLS QJ r o M p�J�40Aa��0/J v 02 a/ici' poJ ry 4PL GP o in cro W oW a7i �S. �Op 'ci'�4 h4,S b W o W �o�4Ri p -'J W o_ m 0 N o _ r o r - O N in W cO a 6O Gp �2 . N W o v W M `° r M aJ O LP 4- - a'iJ oa N o N W � W O m O as�OZ ,ppJsoaO 0 N J O N O � M Q O N O W T m r m N M C N m N W o W T N N W N -° W W ° m v m N M W W N m M N N N N m N N C2 N p O O O o 0 o O O o O a O a 14 a4 !a x 4PJ� 1 silun 6UIiiaMQ a LL m o g 2 Cl m S ■ ■ ■ ■ o c I CITY OF IOWA CITY UNESCO CITY OF LITERATURE 2019 Analysis of Impediments to Fair Housing Choice 112r EQUAL HOUSING OPPORTUNITY Neighborhood Et Development Services 410 E. Washington Street, Iowa City, IA 52240 Adopted August 20, 2019 Chapter 5: Impediments &t 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 other 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 disparities 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. 171 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 diversity 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 negatively 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 opportunity. The following strategies assist in addressing this impediment to fair housing choice: Strategv 1: Facilitate a Range of Housing TvDes 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. 1 2019 Analysis of Impediments to Fair Housing Choice StrateQv 2: Lower the Cost of Housin 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. Continuing 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 rehabilitation 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 through fixed rate mortgages in a market experiencing increasing rental rates. StrateQv 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 173 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. 1 2019 Analysis of Impediments to Fair Housing Choice 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: StrateQv 1: Emphasize Variety in HousinQ 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 within 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 Location 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 175 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 standard 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. StrateQv 2: Communitv 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, amenities, 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. StrateQv 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. 1 2019 Analysis of Impediments to Fair Housing Choice Strategies to enhance both active and public transportation linkages may include improved coordination with service providers, expansion of active and public transportation to provide access 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. 177 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 neighborhoods 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. StrateQv 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. 1 2019 Analysis of Impediments to Fair Housing Choice StrateQv 2: Increase Suooly-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 community. 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. StrateQv 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 meaninQfullanguaQe 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, this 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. 179 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. StrateQv 1: Improve Fair HousinQ 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. StrateQv 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, there 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 change 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. 1 2019 Analysis of Impediments to Fair Housing Choice 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. StrateQv 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 discussion about how to facilitate housing choice in each of the communities. Communication between staff can also facilitate coordination between jurisdictions. StrateQv 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 institutions 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 waithst 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. 181 vi 202! F Iowa City Affordable Housing ACTION PLAN CITY OF IOWA CITY UNESCO CITY OF LITERATURE 20221owa City Affordable Housing Action Plan 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 CD6G/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; CITY OF IOWA CITY 28 20221owa City Affordable Housing Action Plan 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 (HCDQ 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. CITY OF IOWA CITY 29 20221owa City Affordable Housing Action Plan Recommendation: 1) Require staff analysis and funding recommendations before i 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 forthe next LI HTC 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 CITY OF IOWA CITY 30 20221owa City Affordable Housing Action Plan 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. CITY OF IOWA CITY 31 20221owa City Affordable Housing Action Plan 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 Al 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. CITY OF IOWA CITY 32 20221owa City Affordable Housing Action Plan • Conduct a City -initiated rezoning to allow multi -family housing or mixed use in areas supported by the Comprehensive Plan and served bytransit. • 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 ADi 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 CITY OF IOWA CITY 33 20221owa City Affordable Housing Action Plan 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. CITY OF IOWA CITY 34 20221owa City Affordable Housing Action Plan Recommendation: Continue to support existing permanent supportive/Housing First projects, expanding into projects forfamilies 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. CITY OF IOWA CITY 35 20221owa City Affordable Housing Action Plan 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 (All 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 homeowners 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. CITY OF IOWA CITY 36 20221owa City Affordable Housing Action Plan 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. CITY OF IOWA CITY 37 20221owa City Affordable Housing Action Plan Summary Tables Recommendations and Actions Required for Existing Policies and Programs Recommendation Discontinue Affordable Housing Location Model and consider incentives or prioritization policies that encourages affordable housing in all neighborhoods. Require staff analysis and funding recommendations of CDBG/HOME housing applications before HCDC review. 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.). Allocate funds to the Affordable Housing Fund with a goal of a 3% annual increase. 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. Implement the Risk Mitigation Fund. Enact policy that prioritizes partnerships with not-for-profit affordable housing developers/organizations to preserve affordable housing units in all housing programs. Allow non-profit affordable housing developers to apply for additional funds to support ongoing operations (Opportunity Fund, HOME CHDO funds, etc.). Allow developers of affordable housing to applyfor technical assistance needs from a variety of city programs, including but not limited to, the Affordable Housing Opportunity Fund and Climate Action grants. 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. Increase efforts to educate all tenants about tenant rights and responsibilities and how to address housing issues. Type of Action Required Policy Increased Change Funding Education X X X X �i X X X CITY OF IOWA CITY 38 20221owa City Affordable Housing Action Plan Recommendations and Actions Required for Development Regulations Applicable to Both Single- and Multi -Family Recommendation Encourage infill development flexibility by reducing the minimum amount of land eligible to apply for a planned overlay zoning. Create form -based code regulations for additional neighborhoods, focusing on growth areas first and then infill locations. Type of Action Required Policy Increased Change Funding Education X 11 Recommendations and Required Actions for Development Regulations Applicable to Single -Family Recommendation 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.) increase the allowable number of bedrooms in duplex and zero - lot line structures in single family zoning districts. Allow accessory dwelling units (ADUs) under more circumstances and in more locations. Type of Action Required Policy Increased Change Funding Education X x X X Recommendations and Required Actions for Development Regulations Applicable to Multi -Family Recommendation Facilitate multi -family development by purchasing land to be developed. 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.) 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. Type of Action Required Policy Increased Change Funding Education X X X X X CITY OF IOWA CITY 39 20221owa City Affordable Housing Action Plan 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. 32-60% 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. CITY OF IOWA CITY 40 Strategic Plan FISCAL YEARS 2023-2028 Adopted December 2022 n3'. yyy CITY OF 10 UNESCO CIN - - 0 [.- IMPACT AREAS Neighborhoods & Housing 111x11:1avi1.1Is] ►1 Iowa City is a collection of authentic, vibrant neighborhoods and districts. By way of internal and external streets and trails, each community member has safe, easy access to everyday facilities and services within a 15 -minute walk or bike ride. Neighborhoods are compact and socially diverse, with a variety of housing choices and at least one place serving as its center. Permanent affordable housing choices are dispersed throughout the community. New higher density development blends with existing buildings and shapes a comfortable, human -scale pedestrian environment. Public spaces are inviting and active with people recreating and socializing in parks, natural areas, and tree -lined streetscapes, all enhanced with public art and placemaking initiatives. STRATEGIES To advance the Vision the City will pursue the following strategies: • Update City Comprehensive Plan and Zoning Code to encourage compact neighborhoods with diverse housing types and land uses. • Partner in projects that serve as models for desired future development. • Create inviting and active outdoor spaces with unique and engaging recreation offerings. • Address the unique needs of vulnerable populations and low -to -moderate income neighborhoods. ACTION PLAN 10 ChampionAction Date Explore legal steps to discourage or prevent bad faith and predatory property City Attorney FY23-24 investors. Act on building regulation recommendations outlined in the Accelerating Iowa Climate Action & FY23-25 City's Climate Actions Report; including TIF energy efficiency incentives, energy Outreach and standards for height and density bonuses, and a climate action building permit Neighborhood & rebate program. Development Services Revamp the neighborhood PIN grant program and evaluate discretionary funding Communications FY23-25 for district/neighborhood grassroots projects. Advance prioritized recommendations in the 2022 Affordable Housing Action Plan. Neighborhood & FY23-28 Work with partners to undertake significant -scale affordable housing efforts. Development Services Seek out and approve residential TIF applications for infrastructure when the City Manager's FY24-25 project provides community benefit such as permanent affordable housing, Office expansive public open space, or advancement toward stated climate action goals. Consider a standard application of residential TIF for all new annexations to meet permanent affordable housing goals. Initiate a Comprehensive Plan update and subsequent Zoning Code review to more Neighborhood & FY24-28 broadly incorporate form -based principles with emphasis on growth areas first and Development infill areas next, expanded missing middle housing allowances, minimum density Services requirements, and streamlined approval processes Explore pilot housing projects utilizing tiny homes, 3D printed homes, Neighborhood & FY24-28 prefabricated or manufactured homes, net -zero homes, or other innovative Development options. Services Bolster financial support for homeless services and evaluate shiftingtowards City Manager's FY25-28 shelter as service model. Office Expand the South District Homeownership Program to other targeted Neighborhood & FY26-28 neighborhoods and consider allowing relocation assistance to expedite Development completion. Services Provide all residents with public open space within a 15 -minute walk or bike ride by Parks and FY26-28 strategically executing agreements with local schools or other partners. Recreation 10 Mobility FUTURE VISION Community members of all socioeconomic statuses easily, safely, and comfortably travel using multiple modes of transportation year-round. Commuters choose to walk, bike, or bus at least half of the time, and an increasing number of trips are fueled by clean energy. Regional collaboration has created a strong multi -modal network that links Iowa City to neighboring communities. Highly traveled corridors have separated trails or comfortable, safe lanes for bicyclists. When prioritizing, the needs of pedestrians, bicyclists, transit riders, and other emerging forms of transportation are weighted greater than those of automobile drivers and adjacent property owners. STRATEGIES To advance the Vision the City will pursue the following strategies: • Expand the access and convenience of environmentally friendly and regionally connected public transit. • Design and maintain complete streets that are comfortable and safe for all users. • Grow and prioritize bike and pedestrian accommodations. 11 ACTION PLAN 12 ChampionAction . - Date Fully Fully evaluate the feasibility and funding sources needed for a zero -fare transit Transportation FY23-24 system. Services and Finance Develop a vision statement for a singular regional transit system with metro Johnson City Council FY23-25 County entities and obtain initial commitments to study a regional system from each entity's elected officials. Install additional permanent charging stations for vehicles, bicycles, and electronic Climate Action FY23-28 devices. & Outreach Identify additional opportunities for road diets, sidewalk infill, curb cut Public Works FY23-28 enhancement, and bike lane installation with a goal of at least two such projects each construction season. Explore opportunities to utilize the CRANDIC right-of-way for passenger rail, bus City Council FY23-28 rapid transit, or pedestrian usage. Evaluate with the State of Iowa reverting Dodge and Governor to 2 -way streets Public Works FY23-28 Secure federal funding for a relocated transit building that can accommodate future Transportation FY24-28 growth in service and electrification of the fleet. and City Manager's Office Consider adding or retrofitting bike pathways that are separated from streets or Public Works FY24-28 protected utilizing flexible bollards. Expand the fleet of electric buses or other low/no emission -technology vehicles each Climate Action FY25-28 time a diesel bus is due for replacement and seek grants that can expedite the & Outreach conversion. Consider an on -demand or subsidized voucher system for times and locations in Transportation FY25-28 which no fixed route service is available. Services Expand snow clearing operations at sidewalk corners in high priority pedestrian Public Works FY25-28 areas, bus stops, and bike lanes. and Parks & Recreation Initiate and promote vehicle and bike-share/scooter programs. Transportation FY26-28 Services Evaluate with the State of Iowa the possibility of a Burlington Street Road Diet Public Works FY26-28 utilizing flex zones in non -peak hours. 12 Economy FUTURE VISION Iowa City is the preferred location for businesses at all stages of development. Start-up businesses flourish and take advantage of mentoring and other resources. The vibrant arts and culture community attracts both visitors and new residents. Technologies developed through the University of Iowa are transferred to the local business sector, creating business diversity and new value within the community. Businesses pay living wages and support skill development for their employees. Support services - such as child-care and language assistance - are readily available for all, which means every person who wishes to participate in the local economy can do so. Community members support each other by spending their money locally. STRATEGIES To advance the Vision the City will pursue the following strategies: • Reinforce Iowa City as a premier community to locate and grow a business. • Ensure appropriate infrastructure is in place for future business growth and development. • Cultivate a strong entrepreneurial and small businesses ecosystem with a focus on creating new pathways to success for systemically marginalized populations. • Build Iowa City's image as the Greatest Small City for the Arts. • Strengthen the Iowa River's role as a signature community amenity and tourism generator. 13 ACTION PLAN 14 ChampionAction . - Date FY23-25 Enhance access to affordable childcare for all populations through innovative Enhance City Manager's partnerships with higher education, non -profits, and the business community. Office and Neighborhood & Development Services Utilizing American Rescue Act Funds, execute on agreeable recommendations in City Manager's FY23-25 the Inclusive Economic Development Plan with a particular focus on actions that Office and build long-term support and wealth -building opportunities for systemically Economic marginalized populations. Development Partner with Kirkwood Community College, Iowa City Community School District, Economic FY23-28 Iowa Labor Center, local trades, and other stakeholders to provide meaningful Development and career development opportunities, pre -apprenticeship, and apprentice Neighborhood & programs. Development Services Increase small business technical assistance to aid in the creation, success, and Economic FY24-28 growth of home-grown businesses. Development Economic FY25-28 Create flexible incentives to support the top goals of Iowa City's Self -Supporting Development and Municipal Improvement Districts and other commercial nodes, including City Manager's attaining a desired business mix that serves the surrounding neighborhood. Office Develop targeted marketing to promote Iowa City as a unique and attractive City Manager's FY26-28 place to do business. Office Develop a riverfront master plan in cooperation with the University of Iowa, City Manager's FY26-28 Think Iowa City, and other stakeholders. Office 14 Safety & Well-being FUTURE VISION Our City supports the mental and physical well-being of our community members. Public safety response, whether from the City or a non-profit partner, is nuanced depending on the specific needs of the situation. Community members receive emergency response services promptly and welcome responders as problem -solvers. Inviting spaces for social interaction, exercise, and regeneration are equitably located throughout the community and are lively with activity and use. New and long-time community members alike, especially marginalized groups, easily build networks and establish roots within our community. Community members have safe, healthy indoor spaces and are well-prepared for climate -related changes. STRATEGIES To advance the Vision the City will pursue the following strategies: • Implement and expand innovative public safety models and facilities to improve outcomes and relationships within the community. • Partner with non -profits to address the most emergent and foundational community safety and well-being needs. • Build community by fostering social connections and developing safe, accessible public spaces for gathering. 15 ACTION PLAN 16 Champion Date Work collaboratively with Johnson County and other stakeholders to launch a City Council and Police FY23-24 community violence intervention effort in close cooperation with local law Department enforcement. Leveraging American Rescue Plan Act funds, build capacity in local non -profits Neighborhood & FY23-26 that will help ensure they are able to meet future community demands. Development Services Build on the relationship with the University of Iowa College of Nursing to Neighborhood & FY23-26 increase participation in the Healthy Homes program. Development Services Expand the Mental Health Liaison program with CommUnity Mobile Crisis with a Police Department FY23-28 goal of 24-hour coverage by the end of FY28. Actively promote 988 throughout the year and ensure that CommUnity Mobile City Manager's Office and FY23-28 Crisis has resources to meet community demands. Communications Continue critical exterior renovations to the Senior Center and continue Senior Center FY23-28 progress on Senior Center Facility Master Plan recommendations. Integrate CommUnity Mobile Crisis into the 911 dispatch protocols. Police Department FY24-26 Consider and, where feasible, implement alternatives to routine non -emergent Police Department FY24-26 traffic stops. Expand neighborhood -based programs such as mobile community Parks & Recreation FY26-28 social/recreation resources (fun patrol), nests or micro -hubs for kids/teens. 16 RESOURCES Facilities, Equipment and Technology FUTURE VISION Municipal facilities are modernized and designed for operational efficiency, capacity for growth, employee safety and health, resilience, alignment with Climate Action goals, and civic pride. Funding of equipment and facility replacement funds and partnerships with other entities result in joint facilities, technology, and equipment that improve access and services. City staff are encouraged to be entrepreneurial in their approach and actively seek to innovative and streamline processes while improving service levels to the community. STRATEGIES To advance the Vision the City will pursue the following strategies: • Invest in the next generation of public facilities and equipment to create immediate operational efficiencies, boost workplace safety, health, and morale, and improve cross -department collaboration. • Promote high-performance governance leveraging technology, partnerships, and innovation. 17 ACTION PLAN LU ChampionAction . - Date Outline Outline a municipal -wide facilities plan and initiate relevant action steps to keep City Manager's Office FY23-24 projects moving forward. Complete a City Hall and Public Safety Headquarters space needs study and City Manager's Office FY23-24 develop a plan for next steps toward implementation. Implement the asset management system and expand use for facility Public Works FY23-25 maintenance and management. Develop and implement an electric vehicle transition plan. Public Works and Climate FY23-25 Action & Outreach Pursue grant opportunities, bolster the Facility Reserve Fund, and explore City Manager's FY23-28 public/private partnerships to facilitate completion of key facility projects. Office and Finance Design replacement and renovated facilities to ensure alignment with Climate City Manager's Office FY24-28 Action goals and create safer and healthier working environments for public employees. Improve public transparency through a coordinated and centralized open data City Manager's Office FY26-28 platform. Consider resourcing a Smart City initiative that prioritizes data -driven decision- City Manager's Office FY26-28 making through technology adaptation and data analysis. LU FUTURE VISION The City is an employer of choice in the region and viewed as a rewarding, long-term career choice. Valuable benefits, flexible schedules, energizing workspaces, remote and hybrid work arrangements, and professional development and advancement opportunities improve productivity, service to the public, and morale. Employees enter an inclusive, fun, and engaging environment each workday. City staff, board and commission members, and volunteers are demographically representative of the City population at -large and every employee is continuously building cultural awareness. Leadership and elected officials ensure sufficient staff levels to maintain baseline services, weather vacancies or emergencies, protect against employee burnout, and add capacity to act on special assignments and strategic, long-term initiatives. STRATEGIES To advance the Vision the City will pursue the following strategies: • Establish the City of Iowa City as an employer of choice in the region with a pay plan, benefits package, and flexible work options that attract and retain high-quality and motivated public service employees. • Carry out a multi -dimensional staff engagement initiative to ensure every City employee feels welcome, informed, involved, and engaged at work. • Build a diverse talent pipeline. 19 ACTION PLAN 20 ChampionAction . - Date Complete Complete and execute upon the results of an organization -wide classification and Human Resources FY23-25 compensation study. As part of study, review all job requirements to ensure applicability and eliminate unnecessary barriers to employment, including testing, residency requirements, education, and certification or license requirements. Monitor implementation of new telecommuting and flexible work schedule policies to City Manager FY23-25 ensure public service standards are fully met and desired employee work arrangement flexibility is pursued where possible. Balance investment in new annual initiatives with staffing levels to ensure core municipal City Manager's FY23-28 service levels are maintained and reduce instances of burnout. Office and City Council Elevate new and existing intra -organizational communication strategies to bolster City Manager's FY23-25 information sharing and improve productivity and connectiveness across the Office organization. Create more opportunities to promote inter -departmental relationships, collaboration, City Managers FY23-25 and problem -solving. Office Upskill City staff in implicit bias, cultural awareness, and inclusion. Equity & Human FY23-28 Rights Develop recruitment network with local minority institutions. City Manager's FY23-28 Office Take steps to promote more diverse representation on Boards, Commissions, and City Council FY23-28 Committees. Ensure every single employee knows the City's strategic vision and can connect their role City Manager's FY23-28 accordingly. Office Strengthen volunteer engagement, management, and appreciation efforts. City Council and City FY23-28 Manager's Office Implement increasingly relevant organization -wide training opportunities such as conflict City Manager's FY24-28 resolution and de-escalation training. Office Conduct comprehensive benefits review and implement changes based upon best City Manager's FY25-28 practices and modern expectations, exploring benefits such as paid volunteer time, Office wellness offerings, and flexible stipends for challenges such as childcare, transportation, higher education and more. Launch targeted apprenticeship program(s) in partnership with local education and City Managers FY26-28 workforce institutions. Office 20 Financial FUTURE VISION City residents believe property taxes and utility fees are fair and commensurate to service levels, and do not experience erratic changes in rates and fees. The City maintains sufficient financial resources to proactively maintain and replace assets, carry out strategic plan initiatives, and be insulated from unanticipated financial stressors. Partnerships, grant funding, and other creative financing mechanisms are routinely part of program and project financing structure. The City maintains a AAA bond rating, resulting in lower borrowing costs for residents and businesses. STRATEGIES To advance the Vision the City will pursue the following strategies: • Grow the tax base, consider alternative revenue sources, and leverage outside funding to maintain core services and pursue community priorities while maintaining equitable property tax rates. • Exercise fiscal responsibility by maintaining and growing assigned and emergency reserve funds and prudent debt management. 21 ACTION PLAN 22 ChampionAction Date Ensure Enterprise Funds are well supported through incremental rate and fee Finance FY23-28 increases and do not become reliant on large rate spikes, property taxes, or unplanned debt issuance. Coordinate with Iowa League of Cities, Metro Coalition, and the City's contracted City Manager's Office FY23-28 state lobbyist to oppose unfunded state mandates and detrimental tax reforms. Maintain the City's AAA bond rating. Finance FY23-28 Increase the Emergency Fund balance by an annual target of 5%. Finance FY23-28 Significantly bolster the Facility Reserve Fund and develop an implementation plan Finance FY23-28 for use of funds that minimizes large debt issuances. Create a centralized grant management initiative that will focus on securing City Manager's Office FY24-28 additional private, state, and federal funding opportunities, while ensuring proper oversight and compliance. Develop and maintain cost recovery guidelines for programs and services that City Manager's Office FY26-28 balance fiscal responsibility and equity. Consider financial incentives and land use policies that aim to grow and diversify the City Manager's Office FY26-28 tax base (commercial, industrial, and residential). Consider alternative revenue sources such as a Local Option Sales Tax that can help City Manager's Office FY26-28 achieve strategic plan goals, fund infrastructure and facility needs, and reduce and City Council reliance on property tax. 22 FROM: Housing Action Team of Johnson County Livable Community for Successful Aging Policy Board TO: Cities in Johnson County and Johnson County SUBJECT: Recommendations for Code/Ordinance for Accessory Dwelling Units (ADUs) DATE: December 21, 2022 The Housing Action Team believes that there are many benefits associated with the creation of legal accessory dwelling units on lots in single family zones and in other districts. These include: 1. Increasing the supply of a more affordable type of housing not requiring government subsidies; 2. Helping older homeowners, single parents, young home buyers, and renters seeking a wider range of homes, prices, rents and locations; 3. By increasing housing diversity and supply, provide opportunities to reduce the segregation of people by race, ethnicity and income that resulted from decades of exclusionary zoning; 4. Providing homeowners with extra income to help meet rising home ownership costs; 5. Providing a convenient living arrangement for family members or other persons to provide care and support for someone in a semi-independent living arrangement while remaining in their community; 6. Providing an opportunity for increased security, home care, and companionship for older and other homeowners; 7. Reducing burdens on taxpayers while enhancing the local property tax base by providing a cost-effective means of accommodating development without the cost of building, operating and maintaining new infrastructure; 8. Promoting more compact urban and suburban growth, a pattern which reduces the loss of farm and forest lands, natures areas and resources, while reducing the distances people must drive and thereby reducing pollution that contributes to climate instability; and 9. Enhancing job opportunities for individuals by providing housing closer to employment centers and public transportation. Some cities in Johnson County already have code for ADUs (Iowa City and Solon). Johnson County has code that covers the unincorporated areas of the County. Oxford utilizes the Johnson County code. Swisher, Shueyville, Hills and North Liberty do not have code for ADUs. At present, Coralville, Lone Tree and Tiffin do not allow ADUs. The codes that do exist, vary among jurisdictions. The Housing Action Team would like to provide our recommendations that minimize lengthy application processes, high fees and harsh regulations that will prevent the development of ADUs or encourage illegal ADUs. Our recommendation or specific recommended language for each policy question is underlined and then followed by a rationale, if deemed necessary. Recommendations for the Elements of an ADU Code/Ordinance A. Definition- Accessory Dwelling Unit (ADU) means a residential living unit on the same parcel as a single-family dwelling or a parcel of which a single-family dwelling is present or may be constructed, that provides complete independent living facilities for one or more persons. It may take various forms: a detached unit, a unit that is part of an accessory structure, such as a detached garage, or a unit that is part of an expanded or remodeled dwelling. [Rationale Two common circumstances in which an ADU might be built before the primary residence are (1) when a homeowner wishes to stage construction expenses and living arrangements; and (2) when the homeowner owns an adjacent legal lot (typically used as a side or backyard) and would prefer to site an ADU there rather than on the lot with the primary residence.] B. Authorization of ADUs by Zoning District*- Accessory dwelling units are allowed in all zoning districts which allow residential use, including mixed-use zones, townhouse zones and single-family zones, subject to the requirements of the ordinance. C. Number of ADUs Allowed per Lot in Single -Family Zones- Any lot with, or zoned for, a Principal single-family dwelling unit, may have up to two accessory dwelling units. [Rationale There are many ways to accommodate more than one ADU that are sensitive to concerns about neighbor appearance. For example, two internal ADUs can be accommodated by remodeling a large home, without increasing height or bulk. An internal unit can be allowed along with an ADU over an attached garage, without increasing the area of the lot occupied by structures.] D. Minimum Lot Size in Single -Family and Townhouse Zones- Accessory dwelling units may be created on any lot that meets the minimum lot size required for a single-family dwelling or townhouses. Attached and internal accessory dwelling units may be built on any lot with a single-family dwelling or townhouse that is nonconforming solely because the lot is smaller than the minimum size, provided the accessory dwelling units would not increase the nonconformity of the residential use with respect to building height, bulk or lot coverage. [Rationale- As a policy matter, it should not be necessary to establish a separate qualifying lot size for ADUs if the purpose is to assure the retention of landscaping and privacy between homes, because the setback and lot coverage standards can achieve those objectives.] E. Minimum / Maximum Size Area: The maximum size of an accessory dwelling unit may be no more than the footprint of the primary structure or 1,000 square feet, whichever is less. [Rationale- We recommend eliminating minimum size since the basic requirements for a living space (kitchen, bathroom, living/sleeping space) and the housing market will establish a minimum size. For situations in which the existing residence is very small, local governments might consider authorizing ADUs up to 800 square feet when the primary dwelling is smaller than 800 feet.] F. Types of Structures- A manufactured or modular dwelling unit may be used as an accessory dwelling unit in any zone in which dwelling units are permitted. Rationale In recent years, many off-site manufactured and modular ADUs are being produced; old conceptions of what constitutes a manufactured or modular home are outdated. This language maximizes the opportunities for ADUs by allowing any type of structure to be an ADU if that structure is allowed as a principal unit in the zoning district.] G. Lot Coverage Limits- An accessory dwelling unit (detached, attached, or built by expanding the footprint of an existing dwelling) on a lot of 4,000 square feet or larger shall not occupy more than 15% of the total lot area. For single family lots of less than 4,000 square feet, the combined lot coverage of the primary dwelling and the accessory dwelling shall not exceed 60%. Accessory dwelling units built within the footprint of existing, legal, accessory structures are considered not to have changed existing lot coverage. Rationale- Lot coverage allowances and limits intersect with setback requirements, floor -area ratio limits and height limits. If detached or attached ADUs are significantly constrained by a lot coverage limit, then the possibility of having a two-story ADU may determine whether the investment in an ADU will generate a sufficient return to justify its construction.] H. ADU Setbacks- 1. A setback of no more than four feet from the side and rear lot lines shall be required for an accessory dwelling unit that is not converted from an existing structure or a new structure constructed in the same location and with the same dimensions as an existing structure. 2. No setback shall be required for an existing garage living area or accessory structure or a structure constructed in the same location and with the same dimensions as an existing structure that is converted to an accessory dwelling unit or to a portion of an accessory dwelling unit; and 3. A detached accessory dwelling unit is not permitted on the front half of a lot, except when located a minimum of 30 feet from the front line or it falls within the provision of subsection 2. I. ADU Height Limit- The maximum height of an accessory dwelling unit is 25 feet or the height of the primary residence, based on the highest point of its roof compared with the lowest point of ground level at the foundation, whichever is less. J. Architectural Consistency and Design Review- We recommend against establishing separate architectural or design standards for ADUs. Rationale- Highly discretionary standards based on neighborhood "character" or "quality' can be serious obstacles to the construction of ADUs. Vague standards hamper homeowners and decision -makers alike. They can become an avenue for channeling neighborhood objections to ADUs in general. In some cases, the prescriptions for particular designs and materials can also add considerably to the cost of an ADU. A better approach is to reduce key design elements to a set of objective standards governing roof pitches, window orientation and siding. In some cases, design standards should only apply in certain districts or when the ADU is larger than a specified height or taller than one story.] K. Orientation of Entrance- Regulations governing the location, type and number of entrances into primary dwellings apply to accessory dwelling units. [Rationale- Not allowing an ADU entrance on the same side of the house as the primary dwelling can compromise the design and increase the cost of an ADU, substituting a more awkward and expensive entrance. Following the general principal of treating ADUs like the primary dwelling, the authorization and location of access doors and stairs for detached and attached ADUs should be the same as for primary residences.] L. ADU Screening, Landscaping and Orientation- We do not have a specific recommendation on this subject because a privacy regulation that is not applied to primary dwellings should not be applied to ADUs. ADU regulations addressing privacy as a separate subject seem to be rare. M. Parking Requirements- No additional off-street parking is required for construction of an ADU. If the ADU removes one of the existing off-street parking spaces it must be replaced on site if required by the underlying zoning. In lieu of an on-site parking space, an additional on -street parking space may be substituted if there's already sufficient curb area available along the frontage for a parking space or by removing the parking space access ramp and reinstalling the curb. [Rationale Requiring an off-street parking space for each ADU is a serious inhibition to the construction of ADUs for two reasons. First, the cost of creating off- street parking spaces. Second, the lot size, location of the primary residence and topography may make the creation of the space impossible.] N. Short -Term Rentals- We recommend that jurisdictions do not adopt a limitation on short- term rentals unless rental regulations or prohibitions exist for all housing in the jurisdiction or zone. Rationale- Many ordinances already have such limitations or prohibitions on the use of homes as transient lodging in their land use regulations, and those could be extended to ADUs.] O. Separate Sale of ADUs- We do not have a specific recommendation regarding this subject since most ADU ordinances are silent on the separate sale of the units as condominiums. We leave this policy question to the discretion of local jurisdictions. P. Owner Occupancy (Residency) Standards- There should be no requirement that the owner live on the same property (whether in the primary dwelling or the ADU) if there is no owner occupancy requirement for primary residences. [Rationale The practical impact of the occupancy requirement is to inhibit construction of most ADUs. This requirement gives pause to homeowners or institutions financing home purchases because of the limits they place on successive owners who will not be able to rent out or lease their main house, which might be necessary as a result of a divorce, job transfer or death. It can also make financial institutions reluctant to provide financing for construction of an ADU and because it acts as a restriction on a mortgage lender's security interest in the property.] Standards and Conditions Not Recommended for Application to ADUs The following standards and conditions are not recommended for inclusion in ADU ordinances: • Density limits on ADUs in a zone or district • Age of principal dwelling • Size of principal dwelling • Tenure of current owner • Limits on persons who can live in ADUs (age, relationship, disability) • Annual renewal and monitoring of permits for ADUs *Note on Historic Districts: Even historic districts can accommodate ADUs. Denver, Colorado and Pasadena, California provide useful examples. A city may require a simplified pre -application process utilizing a Design Review Committee to provide recommendations to a Landmark Preservation Commission. The most common issues pertain to the massing, building material and historic detailing on the elevations that face the street. The secondary elevations that face away from the street only need to complement the primary structure. In some cases, the roof treatment of an ADU's primary elevation is reminiscent of the primary building; while its secondary elevations, which face the alley, may be flat to maximize interior space. This allows homeowners the flexibility to create more usable spaces while still blending with historical forms and traditions. Incentives: Some cities around the country, recognizing the benefits of ADUs, have initiated various forms of incentives to foster ADU development. Assistance with rent, down payments and mortgages along with tax abatements have been utilized. The city of Des Moines, in January 2022, implemented a 10 year, 100% tax abatement for new ADUs. We hope that the cities that already have an ADU ordinance will review these recommendations and consider making revisions to be more in alignment with our advice. For those cities without an ADU ordinance/code, we encourage you to utilize/consider these recommendations as a template for the drafting of your ordinance/code. We would welcome the opportunity to discuss with you how ADUs can be a useful strategy to support seniors and also provide affordable housing in your city and across the county. ATTACHMENT 4 Proposed Zoning Code Amendments Attachment 4: Proposed Zoning Code Amendments Underlined text indicates added language. Text with a ugh indicates deleted language. Article 14-4C: ACCESSORY USES AND BUILDINGS 14-4C-2: SPECIFIC APPROVAL CRITERIA: 14 -4C -2A. Accessory Apartments: Accessory apartments are permitted ^ the oc 5, oc >z IRS - 42, c 40 RM 42, RMon ^d onlc on moo^^^GWR@F ^d delmaGhed ^ ^I^ f^ml 1^I1l n^e ^na detaghed o Int 1 Re .y .1..y dwell nos and in L.� Id R y fo fhoso same dwell no types provided the following conditions are met: 1. Permit Required: Prior to the establishment of any accessory apartment, the owner of the principal dwell ng un t use must obtain a rental permit from thDep^^�^^' of Housing and Inspection Services according to the applicable procedures set forth in Cehapter 14-8, 'Review And Approval Procedures", ^f th6 t tie 2. Ownership And Occupancy: a Then of the property a uhi^h o aGG@66ery apartment is Ingated m isf QgGupy of L.^n10 Of the dW@11l n^ WR t6 on the pF@m 6@6 a the p rd legal F@6 d@RtThe lot shall contain no more than two (2) dwelling units as a principal use and shall be located in a zone that allows household living activities. b. The accessory apartment and the principal dW@11 Rg use must be under the same ownership. ���� ��B The total n mhor of inrliy d sols that res; ide in theaGGessery apartment m not ^ ri o t ). 3. Site Requirements: a. Only one accessory apartment may be established per ^'angle ffam lT lot- b- Ir. ^.1.1141.... f.. the r.^* Rg FeqW ed f..r the PFRG ^I dW@111 n^ W R t OR@ 9# GtF@@t pa4 W.... red for the aGGessery apartment- G - The minimum lot size area-per--�requirement of the underlying base zone must be met bU! d^^^ Rot apply to aR aGG@GGGFy apaFtM@Rt,' , no additional lot area is required beyond that which is required for the principal use dwell Rg 6i yt. 4. Design Requirements: a The aGG@66GFy ^*%Rt may be !GGated .. thin the PF RG ^l dwells n^ OF . thin ^ aGGessery bu Id nq- b. The accessory apartment must be a complete, separate dwelling unit that functions independently from the principal ^'^^'^ fam l y `well ^^ w'f use. It must contain its own kitchen and bathroom facilities, in addition to a separate entrance from the exterior. be. When located within the a building with an existing principal use dweWw@, the accessory apartment must be designed so that the appearance of the building remains that of an allowed use within that zone, and any ^ ^^'^ f^^ " r^^' ^^^^ ^^ new entrances should f,^o the side or ^r.1 of 7mv-vrthe bwnl Id RgT and any add Bion fee aR aGGesseFy ^rIm rd m ..1 RGFease the fl....r area Of the OF 0 Rai dW@111n0 by m e th^r. tee ^ @Rt (499A)--E-exterior finish materials, trim, windows, and eaves must visually match the principal dwelling useaait. 5. Apartment Size: The aGGesseFy ^rlm..Rt m e1 be .d..^rl y subeF.11 Rate I area to the th the follow nn standards. a ror aR aGGesseFy paFtMeRt IeGate I w thin. ^ PF RG pal dwellin^ UR t tThe floor area of the accessory apartment arait may not exceed Lflythirty percent (590%) of the total floor area of the principal use dw^'�, excluding the area of an attached garage, or one thousand ^'x hundred #Iffy (1 000650) square feet, whichever is less. b. Bedrooms shall have a minimum of one hundred (100) square feet of total floor area. €er an aGGesswy apartment IgGate l w thin a aGGeSSOFY bu las nn the floor area of the aGGessery O ) of the total floor area of the annpsseFy bu Id Rg OF 6 X h6lRdF d fifty (659) ^ e feet .yh Gh..yy..r Is I^ss c. Bedrooms cannot exceed thirty five percent (35%) of the finished floor area of the accessory apartment. The aGGesseFy ^^..m^rd m ort^Ir. n FnRFP th^r. ORP ho,Iroom Article 14-88: ADMINISTRATIVE APPROVAL PROCEDURES: 14-88-1: ACCESSORYAPARTMENT RENTAL PERMIT. A. Permit Required: 1. Prior to the establishment of any accessory apartment, the owner of the principal dwelling unit must obtain a rental permit from the department of housing and inspection services. The permit will be effective for two (2) years. At the end of every two (2) years, renewal of the accessory apartment rental permit will be granted after completion of a routine housing inspection verifying that the propeq rema ns the PF RG pal r s r'^^^^ of the nwnpr and that all of the conditions of this section and approval criteria for accessory apartments set forth in chapter 4, article C, "Accessory Uses And Buildings", of this title have been met. 2. No rental permit for an accessory apartment will be issued unless all the requirements and standards for accessory apartments set forth in chapter 4, article C of this title have been met. B. Submittal Requirements: 1. The owner shall file an application for a rental permit with the department of housing and inspection services on application forms provided by said department- 2- oror to ssuange or al of an aggessery apartment renal perm tthe owner Must uhmit a noari;zodl a# davit to the G ty ver fy n^ owner 2 Prior to the issuance of an accessory apartment rental permit, the owner shall file, in the office of the county recorder, a declaration of covenants stating that the right to maintain an accessory apartment ceases upon transfer of title, and that the right to maintain an accessory apartment in no way constitutes approval of the dwelling as a different principle use 4UPlex. The owner shall provide a copy of the declaration to the department of housing and inspection services, or its successor, prior to the issuance of the accessory apartment permit. Article 14-9A: GENERAL DEFINITIONS 14-9A-1: DEFINITIONS: ACCESSORY APARTMENTS: An temporary accessory dwelling unit located within an owner essupied, single-family or duplex dwelling pomp or in an accessory building and meeting the requirements of this title. An accessory apartment may also be referred to as an accessory dwelling unit. Article 17-5: HOUSING CODE 17-5-3: DEFINITIONS: ACCESSORY DWELLING UNIT: A t@RqPGFaFy dwelling unit that is accessory to ^^ ^ter ess61ped single-family or duplex dwelling. ATTACHMENT 5 Enlarged Map 70 a) O 0- 0 0- a_ 70 c cu c a) L L D U .E 0) a� L O U) U) a) U U Q O Q cu I— N a) U L ^cu LL O Q 10 Kirk Lehmann From: Rick Mason <nyhillsidefarm@gmail.com> Sent: Sunday, October 1, 2023 9:00 AM To: Kirk Lehmann Subject: Proposed zoning changes A ** This email originated outside of the City of Iowa City email system. Please take extra care opening any links or attachments. ** Kirk, I do understand the need for more affordable housing in Iowa City and I have a few comments and concerns. The idea of removing the owner occupied requirement is particularly disturbing. Allowing developers to police themselves and rent with the idea of community improvement vs monetary gain is ludicrous. I know the expected rebuttal- "There are laws and code enforcements in place." These do not work in the real world. For a healthy livable community to exist there needs to be local control to help with a harmonious existence between neighbors. We lived next door to a young man who began to work on the house he was in. He removed the front steps leaving a huge hole in the lawn, proceeded to work on vehicles leaving debris in the yard, built a fence and got several large barking dogs, played loud music late into the night and would let the dogs out into the yard in the middle of the night. Many of our neighbors complained to the police, code enforcement and animal control .We spoke with him on many occasions and, although he was a nice and decent person, things did not change. This went on for several years until he finally moved. Across the street from us the absent landlord cut his house up into many bedrooms including 5 or 6 in the basement, mattresses on the floor and no regard for who he rented to. Numerous calls to the code department were ineffective. When he was cited everyone would move out only to return later. This went on for years and one neighbor actually sold and moved out. Finally the landlord sold his house to another neighbor. I do understand the need for everyone to have affordable housing and a place to live, however some people need help and guidance on how to live peacefully within the community. This will NOT happen with absentee landlords. I have seen cities where your proposed changes have irreversibly altered the community. The construction of rental units in single family homes, splitting lots to have accessory units is a costly endeavor. A developer will need to make a profit at any cost and when tenant problems occur, as they inevitably will, adjacent properties will lose the appeal to a buyer of a single family home. Values will go down and these former single family homes will be more financially attractive to developers and will be split into units for rent. This will cause a continued downward spiral as the area (even a very local one) changes and rents go down as landlords try to cover costs. I am not just a resident of Iowa City, I was a landlord in a big eastern city for decades before retiring here. I rented to mostly low income residents and I found that making one resident the super for a building greatly diminished any problems. As I said there needs to be someone there 24/7 to maintain a civil, decent community presence. Sorry to ramble on but this is the best town we've lived in and I'd like it to stay that way. Thank you for your time Rick Mason 2127 Friendship Street 607-382-3739 Kirk Lehmann From: Pam Michaud <iowastay@gmail.com> Sent: Sunday, October 1, 2023 9:53 PM To: Kirk Lehmann Subject: Accessory vs Affordable Apartments Attachments: image003.png A ** This email originated outside of the City of Iowa City email system. Please take extra care opening any links or attachments. ** Accessory apartments will not be inexpensive to retrofit plumbing, etc. or build new. So rents will be high. Instead we need affordable housing. Two large landlords pay reduced property taxes for their neglected vacant lots. 911 N. Governor - the former Health and Human Services building has been vacant for over 12 years. Zoning, Happy Hollow Park, and the 1.1 acre lot is adequate for a new 3 story apartment building. Rather than a neglected property, TSB Holdings could build affordable units for a mature population. The Historic Elks / Chamber of Commerce building at 325 E. Washington St. was razed in 2021. The lot has been a trashy eyesore for two years. The lot at Gilbert and Washington should not add to the oversupply of "luxury student housing". In the last 10 years, many dogs are now allowed in downtown and close -in apartments. If CC -1 LLC is not going to develop 325 Washington, it could become a public green space and dog park for a thousands of close -in residents. Sincerely, Pam Michaud On Fri, Sep 29, 2023 at 1:14 PM Kirk Lehmann <KLehmannCn@iowa-citv.org> wrote: Dear Stakeholder, Thank you for your interest in the proposed zoning code text amendment relating to accessory apartments. The Planning and Zoning Commission will consider proposed changes to accessory apartment standards and receive comments at their public meeting scheduled for Wednesday, October 4 at 6:00 pm in Emma Harvat Hall at Iowa City City Hall (410 E. Washington Street, Iowa City, IA 52240). The agenda packet, including the staff report, is available on the City website at www.icgov.org/pz. 1 You are welcome to attend this public meeting to present your views concerning the proposed changes. You may also submit written information to me in advance of the meeting, and I will provide your comments for the consideration of the Commission. If you know of any interested party who has not received this message, we would appreciate if you would inform them of the upcoming meeting and opportunity to comment. Please do not hesitate to contact me at klehmannC@iowa-citv.org or 319-356-5247 if you have any questions or comments about this application or if you would like more information on the proposed changes or public process. Regards, x Kirk Lehmann, AICP (he/him) WWW.ICGOV.ORG I Associate Planner Ip:319-356-5247 410 E Washington St Iowa City, IA 52240 Iowa City Transit is now FARE FREE! x Learn more at ICGOV.ORG/FAREFREE Disclaimer The information contained in this communication from the sender is confidential. It is intended solely for use by the recipient and others authorized to receive it. If you are not the recipient, you are hereby notified that any disclosure, copying, distribution or taking action in relation of the contents of this information is strictly prohibited and may be unlawful. Kirk Lehmann From: Brendan Fitzgerald<brend an.fitzgeraId@yesfitz.com> Sent: Sunday, October 1, 2023 6:33 PM To: Kirk Lehmann Cc: Anne Russett; Kirk Lehmann Subject: Re: Planning & Zoning Commission Meeting on Accessory Apartments A ** This email originated outside of the City of Iowa City email system. Please take extra care opening any links or attachments. ** Hi Kirk and Anne, Wish we could be there, but my wife's running a pinball tournament across the street from you at SpareMe, if you want to swing by after the meeting. As a homeowner in a historic conservation district, I've spent a lot of time thinking about how to increase housing density near downtown while preserving the architectural character of the neighborhoods. Making the rules around Accessory Dwelling Units less onerous threads the needle and marries the two goals wonderfully. I'd especially like to voice support for striking the parking requirement. We have a very walkable city, and our public transit is convenient, reliable, and far-reaching. My personal goal is to add an ADU above our garage and rent it out until our parents need to be closer. This change will keep growing families in the same neighborhoods for longer, and increase housing generally in the short term. Good luck! Brendan Fitzgerald YesFitz.com Sep 29, 2023, 1:15 PM by KLehmann@iowa-city.org: Dear Stakeholder, Thank you for your interest in the proposed zoning code text amendment relating to accessory apartments. The Planning and Zoning Commission will consider proposed changes to accessory apartment standards and receive comments at their public meeting scheduled for Wednesday, October 4 at 6:00 pm in Emma Harvat Hall at Iowa City City Hall (410 E. Washington Street, Iowa City, IA 52240). The agenda packet, including the staff report, is available on the City website at www.icgov.org/pz. You are welcome to attend this public meeting to present your views concerning the proposed changes. You may also submit written information to me in advance of the meeting, and I will provide your comments for the consideration of the Commission. If you know of any interested party who has not received this message, we would appreciate if you would inform them of the upcoming meeting and opportunity to comment. Please do not hesitate to contact me at klehmannC@iowa-citv.org or 319-356-5247 if you have any questions or comments about this application or if you would like more information on the proposed changes or public process. Regards, = IOWA CITY A UNESCO CITY OF LITERATURE Kirk Lehmann, AICP (he/him) WWWICGOV.ORG Associate Planner 0000 p: 319-356-5247 410 E Washington St Iowa City, IA 52240 Iowa City Transit is now FARE FARE FREE FREE! IOWA CITY Learn more at ICGOV.ORG/FAREFREE Disclaimer The information contained in this communication from the sender is confidential. It is intended solely for use by the recipient and others authorized to receive it. If you are not the recipient, you are hereby notified that any disclosure, copying, distribution or taking action in relation of the contents of this information is strictly prohibited and may be unlawful. October 2, 2023 CASA DEL ESCUCHA MI VOZ IOWA CATHOLICt, WORKER Fighting for Worker justice OWA cllY and Immigration Reform OBRERO CATOLICO Iowa City Planning and Zoning Commission Iowa City City Council Attn: Geoff Fruin, Kirk Lehmann Iowa City City Hall 410 E Washington St Iowa City, IA 52240 Subject. Support for Proposed Affordable Housing Code Amendments to Expand Permanent Supportive Housing, Accessory Dwelling Units, YWo-Family, and Multifamily Construction City Manager Geoff Fruin, Associate Planner Kirk Lehmann, members of the Planning and Zoning Commission, and Iowa City City Councilors: We write in support of the proposed amendments to simplify the housing code, expand the use of permanent supportive housing services, and encourage the construction of new affordable housing. Although we support the proposed zoning code changes as written, including the provisions on Accessory Dwelling Units (ADU's), the concerns many in our community have are valid about the negative impact the changes will have on Iowa City's remaining historic homes. Without more public investment in affordable housing and permanent supportive housing, real estate developers and landlords stand to benefit the most. Iowa City's remaining historic homes will continue to be demolished and replaced over time by rows of cookie -cutter townhouses and luxury skyscrapers. To best address community concerns, we recommend the city of Iowa City pass the housing code changes as written AND invest an additional $10 million in innovative, deeply affordable housing and permanent supportive housing projects. Background Escucha Mi Voz Iowa and the Iowa City Catholic Worker are member -led, housing and health services organizations. Together, we address the structural determinants of health through permanent supportive housing, community organizing, transformative education, and innovative public policy. Our joint mission is to win whole worker health equity by building the power of immigrant and refugee workers, leaders, volunteers, and advocates to achieve dignity and justice in society. In 2023, our housing and relief programs combined for over $7 million in impact. The five signers of this letter attended three public information and input sessions and interviewed dozens of directly impacted immigrant and refugee members of our organizations about the proposal. As part of our discernment process, we also read the original source of these proposed changes, the Biden-Harris Administration's 2022 Housing Supply Action Plan. The Administration's plan recommended local governments adopt zoning changes because restrictive and costly land use rules are a structural barrier to the construction of new, green, and affordable housing. "Local land use laws and zoning regulations limit where, and how densely, housing can be built. This constrains housing supply, perpetuates historical patterns of segregation, prevents workers from accessing jobs, and increases energy costs and climate risk," the 2022 White House action plan stated. The White House's action plan also tied the zoning changes cities like Iowa City are adopting to new eligibility requirements for federal transportation funding. Cities who do not pass the land use changes the White House wants risk their future competitiveness for future grants. The Administration's action plan also recommended pairing zoning deregulation with additional public investments in affordable housing through the American Rescue Plan Act and other government agency programs such as HUD, CBDG, HOME, and PRO Housing. The $85 million Pro Housing includes among its eligible uses funding for cities to adopt zoning changes. `Every home should have a Christ room in it, so that hospitality may be practiced.' The Catholic Worker Movement has promoted the "Housing First" model since movement co-founder Dorothy Day opened her first house of hospitality in New York City in 1933, during the height of the Great Depression. One of her inspirations came from St. John Chrysostom, who wrote, "Therefore, set aside a room in your house, to which Christ may come; say, "This is Christ's room; this is set apart for him. " Even if it is very simple, he will not disdain it. Christ goes about "naked and a stranger"; he needs shelter: do not hesitate to give it to him. " Single families who want to create a "Christ Room" of affordable housing in their home could potentially construct a new ADU to do so. If 4,000 homeowners built an affordable housing "Christ Room" ADU, the city's housing supply would actually begin to meet demand. However, zoning policy changes alone will not make the construction of new ADU's affordable for most young working families. First-time homeowners are already saddled with student loan and mortgage debt and struggle with the rising costs of pandemic -related inflation to bread-and-butter, kitchen table products like food, gas, water, and electricity. Even assuming a relatively cheap construction cost of $100,000 for a 1,000 sq -ft ADU, construction to the scale of 4,000 new units would cost $400 million, excess wealth young working families and first-time homeowners simply do not have. The real cost could be double. The free market and private sector cannot marshall these kinds of resources alone. More public investment in affordable housing is also necessary if the ambitious goals of the proposed zoning changes are to be met. Affordable Permanent Supportive Housing, Two -Family Homes, and the Migrant Housing Crisis The lack of affordable housing negatively impacts immigrant and refugee workers, their families, and all of society. Record high border crossings are the new normal, and big cities like Chicago are overwhelmed with an influx of refugees arriving by bus everyday from Texas and Florida. Recently arrived refugees from war zones like Colombia, Honduras, and the Democratic Republic of the Congo have up to one year to apply for asylum and then have to wait six more months for their work authorizations to arrive. Both cost hundreds of dollars in fees to file. Many families report having to wait almost two years before they can first work legally. In the meantime, where will they live? How will they survive? The national migrant housing crisis is not just confined to big cities. It is here in Eastern Iowa. In Cedar Rapids, refugee resettlement agencies are filling entire hotels with recently arrived families. In Iowa City, long-standing permanent supportive housing groups like Escucha Mi Voz and the Catholic Worker House - who devote 100 percent of their units to free low-income housing - are filled to capacity even as more properties are purchased to meet the growing need. Many newly arrived refugee families report they are sleeping in their cars, or are forced to live in overcrowded, unsanitary, and substandard housing, all while paying exorbitant amounts in rent. The city's proposed changes will permit the new construction of two-family and multifamily dwellings for permanent supportive housing and the accessory use of space for related services. We wholeheartedly support these changes. But frontline community organizations with the demonstrated capacity to scale up their own housing supply need more public investment in order to take advantage of the proposed zoning changes as much as developers and landlords. Financial Analysis: Iowa City Has Up to $10 Million of APRA for Affordable Housing, May Have Already Applied for $85 Million PRO Housing Fund Iowa City has committed $6 million of its ARPA allotment to the development of undefined future affordable housing projects. The city also has more than $4 million of APRA still uncommitted towards any project. The Biden-Harris Administration's 2022 Housing Supply Action Plan tying transportation funding to housing code deregulation also called for increased public funding in affordable housing through HUD, CBDG, HOME, and PRO Housing. PRO Housing is a new, $85 million program to assist cities in making the housing code changes. Conclusion The city of Iowa City was not completely transparent with the public about the White House's role influencing the code changes with the carrot of PRO Home funding and the stick of decreased competitiveness for transportation grants. Despite this, the proposed housing code changes are welcome and necessary to expand housing supply in Iowa City. But free market changes to the housing code will not be enough on their own to reach the scale we need to solve the housing crisis. More public investment in deeply affordable housing and dynamic, base -building housing organizations is also needed. Recommendations We recommend the city of Iowa City: 1) Pass the housing code changes as written, including the sections expanding the use of Accessory Dwelling Units, 2) Invest an additional $10 million of American Rescue Plan funding in deeply affordable housing projects and permanent supportive housing organizations that can guarantee 100 percent of their units are affordable for Income -eligible Households. 3) Work with permanent supportive housing organizations who have the demonstrated capacity and community support to reach scale to jointly identify and fully fund deeply affordable housing construction projects. Thank you for your commitment to affordable housing and permanent supportive housing. We look forward to continuing to work with you and other community stakeholders on this issue. Sincerely, Favid Goodner and Daniana Trigoso-Kukulski Co -Directors, Escucha Mi Voz Iowa Clinton Dimambu and Ninoska Campos Escucha Mi Voz members and Iowa City residents Dr. Emily Sinnwell Trustee, Iowa City Catholic Worker Kirk Lehmann From: Anne Russett Sent: Wednesday, October 4, 2023 8:29 AM To: Billie Townsend; Chad Wade, Maggie Elliott, Maria Padron; Mike Hensch; Scott Quellhorst; Susan Craig Cc: Kirk Lehmann; Sara Greenwood Hektoen; Danielle Sitzman Subject: FW: Zoning Proposed Changes Attachments: We sent you safe versions of your files, City Council 10-3-23.pdf; GT%.pdf Commissioners - Please seethe attached correspondence Thanks, Anne -----Original Message ----- From: mbslonn@mchsi.com <mbslonn@mchsi.com> Sent: Wednesday, October 4, 2023 12:13 AM To: Anne Russett <ARussett@iowa-city.org> Subject: Re: Zoning Proposed Changes ** This email originated outside of the City of Iowa City email system. Please take extra care opening any links or attachments. ** Mimecast Attachment Protection has deemed this file to be safe, but always exercise caution when opening files. Dear Anne, Yes, on passing along that message and I am also asking you to please include my statement from tonight at City Council (see attachments), plus a list of %of rentals in Goosetown, already at 30%, surely the highest in the city. Unfortunately, I will not be able to attend tomorrow night's meeting but hope that the Commission members will take time to think about the impact that this new policy will have on my neighborhood and the fact that no neighbor I've talked to seems to know about it. They will be more than shocked when more cottages are razed and a 2-plex goes up next-door with more rental space behind. As I say in the statement, our neighborhood is about to be erased. The developer mentioned owns at least 7 houses in a 2 -block area, two sets are contiguous. And I've been told that he may own more under other names. If you detect panic in my message, it is real. Marybeth Slonneger ----- Original Message ----- From: "Anne Russett" <ARussett@iowa-city.org> To: "Marybeth Slonneger" <mbslonn@mchsi.com> Sent: Friday, September 29, 2023 1:40:29 PM Subject: RE: Zoning Proposed Changes Marybeth– The Planning and Zoning Commission has already recommended approval of the zoning code amendments. The only item they deferred was related to accessory apartments. Is this letter related to accessory apartments? If so, I can pass this along if you'd like me to. Thanks, Anne From: Marybeth Slonneger <mbslonn@mchsi.com> Sent: Friday, September 29, 2023 12:16 PM To: Anne Russett <ARussett@iowa-city.org> Subject: Zoning Proposed Changes [cid: i mage001.j pg@ 01 D9 F2DA.81C E B420j ** This email originated outside of the City of Iowa City email system. Please take extra care opening any links or attachments. ** Dear Anne, Because of my concern for a 4th home that has been demolished this past year in GT, I wrote a letter to Council last week and thought it might be good to send a copy to the Committee members for their attention, in case it doesn't appear in their packets. Thank you. Dear Council Members, September 21, 2023 Last August, just before leaving on an extended vacation, as many do this time of year, I became aware of the P &Z Commission's new proposed changes to procedures—a dense and very lengthly document. Others may have missed it. There wasn't time to digest it all but a few things stood out. It was worrisome to me, as within this past year I've already seen two houses disappear, plus one turn -around, all within one block of my house in Goosetown on Davenport St. —all the work of a local developer; a fourth house is in the process of being torn down by its owner. So, starting with the two that were removed... both were small cottages. I believe this is the cat- egory that you are encouraging. They were both replaced by significantlly more expensive single family houses, one I was told was being offered initially in the $500,000 range, lowered to $300,00. Is that what you really mean by affordable housing? I support the effort to provide more housing for lower-income people but I hesitate when it translates into increasing profits for developers in this rapacious way. I don't see the benefit to low income families. I live among a wonderful cluster of modest homes, some with historic value. But Goosetown is probably the most threatened neighborhood in the city because the houses are small—the urge to tear down huge. We regularly get solicitations through the mail: letters, postcards and on the Neighborhood website to sell to developers who have vocally expressed in public meetings how Goosetown will be changed in two years. One particular developer owns multiple properties within sight of my house. He has plans. My sense is that you are not taking into account that these people are not about community val- ues, but only profit. If this isn't somehow regulated, a lot of building material is going to end up in the landfill, Goosetown as we know it will have disappeared, and you will end up with blocky buildings with very high prices attached to them. Would it make more sense to incentivise low income families to own and maintain an already existing property with the use of a decreasing loan? or some such way to utilize what's already built? Also at issue here are concerns for the environment, for the waste of building materials, for the need for a bigger landfill. This is a hugely complex issue. Would you not slow down the voting process to really think out the impact on my neighborhood? It feels like another round of "urban renewal" with similar consequenses... obliteration. Finally, I don't know whether this is true or not, but I've heard from several realtors that Goo- setown is a highly sought after place to live, perhaps the most sought after. If you encourage the destruction of these modest homes, you are also destroying a popular destination. People will not be able to afford to live here. Marybeth Slonneger 1109 E Davenport St. Disclaimer The information contained in this communication from the sender is confidential. It is intended solely for use by the recipient and others authorized to receive it. If you are not the recipient, you are hereby notified that any disclosure, copying, distribution or taking action in relation of the contents of this information is strictly prohibited and may be unlawful. At the end of July, I was informed that a 40 -some page packet of proposed changes to zoning was under- way. I was leaving on a 3 -week vacation so didn't have time to read through this quite dense document but a number of items stood out that raised concern. When I got back, I took time to speak with some neighborbors on both sides of Davenport St. None of them were aware of the document or of the proposed changes, some probably still aren't. It concerns me that this will impact homeowners in a big way and they haven't received a notification letter from the city. The other concern is that it is happening very fast. Per- sonally, I think the process should be slowed down to be absorbed by those who will be impacted. Secondly, because I recall no letter from the city, I felt I had to find out on my own who owned properties, who rented properties and who held them in some company's name. I came up with the following num- bers for Goosetown including Dodge to Reno, Bloomington to Ronalds. By my count, there are 269 homes owned by 52 LC, LLC, management companies, trusts, and 2 Housing Fellowships for a total of about 30% of GT already being rented and that doesn't count unknown rentals by individual owners. That means that about every third house is a rental, creating great turnover, not knowing neighbors, lack of stability and a fear that some developer is coming in to replace the house next door with a possible 2 -unit & a 3rd be- hind ... please try to imagine this happening in your own neighborhood. One neighbor told me that she had meant to build a lovely matching garage to her home, but found out a developer had bought next door and was reluctant to invest now, not knowing what he would build. Her concern is correct, in the last year, 4 nearby houses have been demolished. A small, historic cottage at 935 Bloomington was one of those, its rebuild sold recently for $536,220. Is this what is meant by afford- able housing? Please consider the profits for developers that this is creating. GT is at their mercy and we have been forewarned. At a P & Z meeting last Oct 19th—I quote a developer who spoke—he said "In the next 2 years, GT will change & it will change quickly." He said he has 7 projects underway around our cottage (given Landmark status in October) and 2 properties that are slated to be demolished. I remind you, about 30% of GT is not owned by homeowners. We are in the process of erasing this neighborhood, similar to what happened during Urban Renewal. The city has expressed interest in providing low-income housing. It's already here, if we don't let it slip away to the $500,000+ bracket. GT has renters everywhere including many, many students who daily walk by my house or live across the street. Those who own their homes like living in GT. I've been told by 2 realtors that it is a very popular destination for young families just getting started. It is a neighborhood of creative people, of a distinct culture, and an historic past. It was a neighborhood of immigrants, and, if you look at the names of home owners today, it still is. The answer is here, please don't let it slip away to those whose interest is in huge profits. More than every 3rd house is now a rental, how many more are we going to be asked to carry? Marybeth Slonneger umbar:.... 1 F."..—a— Noiaer. VM 001, MEN owed Hold¢. 2: Mper , luouE PMP." Eddmn: s35 Ei... n Imp CnY.1 TNps BP.FSS POF a.— RE5 Nf L Claae: RES N.L Map Area. 3pp1RF5 SMTwp-Mg: - Int-BIxR: OL 6 Legal Oesnlglan:lWYR OIY(OWNRLMN) E90'0FH 130'OVM1Of6 OmmesignamM: xa+r..-:F.oT rs FLaam oN < x r n SL l.NPV1 PMPeM Anp N NT F9 RFl .—I Bumbv: I.I.M.m5 BSE xoMv: LFROON,wdF.A Pmy,.dre®: 9F!EMVEF S, I CLIYIMP TI POppE M. Mame: R®FN.L n Cla: PE ..L Kapp— I.D.. SMTwPBn9:" bt-BIx4: OL8. 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G•t� fh.�c iy /n urrhnrw2 rtrrrnapr • A�Jt/ra io i7v be Y�/11<'lrr Y/zo;f I Z Kirk Lehmann From: Anne Russett Sent: Wednesday, October 4, 2023 2:21 PM To: Billie Townsend; Chad Wade; Maggie Elliott; Maria Padron; Mike Hensch; Scott Quellhorst; Susan Craig Cc: Kirk Lehmann; Sara Greenwood Hektoen; Danielle Sitzman Subject: FW: Letter to P & Z Commissioners — Please see the correspondence below Thanks, Anne From: Freerks, Ann M <ann-freerks@uiowa.edu> Sent: Wednesday, October 4, 2023 2:16 PM To: Anne Russett <ARussett@iowa-city.org> Subject: Letter to P & Z A ** This email originated outside of the City of Iowa City email system. Please take extra care opening any links or attachments. ** Dear Planning and Zoning Commissioners: I am writing to urge you to vote against the proposal that would allow rental properties to have accessory dwelling units in all residential zones, including the RNS-12 zone. I have lived in a near downtown Iowa City neighborhood for over 30 years. During this time, I have worked to create stable housing for all. I am not a nimby. There is a 12 plex in my back yard, duplexes, triplexes and lots of multifamily in my neighborhood. But there are also single family homes that are key the balance and fabric of the community. These are some of the most fragile portions of our neighborhoods and his proposal would threaten that balance. I spent over 15 years on the Planning and Zoning Commission here in Iowa City, many of those as chair. I did this to create positive change and a healthy community. I have worked though Comprehensive Plan updates, redrafts of the zoning code and Subdivision regulations. I have been part of the Neighborhood Housing Relations Task Force and clearly understand the concerns this will cause the University Impact Zone. Iowa City has committed a great deal of time and money to reduce density in this area through the UniverCity Neighborhood Partnership. When the City adopted the Comprehensive Plan it recognized this concern and created the UniverCity Neighborhood Partnership to help level the playing field. I and other residents of older neighborhoods are concerned the proposed changes will further tip the scale in favor of investment companies and may actually lead to the displacement of affordable housing. The goal should always be finding zoning tools that will promote the creation of as well as the preservation of affordable housing. There are endless solutions to every issue and this one does not work for the long-term benefit of Iowa City. It should never about warehousing people. People need basic amenities, greenspace, and community. This recommendation does not take into account the damage that will be done in the Neighborhood Impact Zone. The near downtown neighborhoods are already very dense and lack parking. I would ask that at the very least you remove the University Impact zone and the RNS-12 zone from this proposal. Thank you, Ann Freerks Community member and former Planning and Zoning Chair 443 South Governor Street Iowa City Please distribute this letter to all Iowa City Planning and Zoning Commission members prior to your October 4th meeting. Thank you. Jim Throgmorton's Statement to the P&Z Commission Re: Case No. REZ23-0001 October 4, 2023 Good evening. My name is Jim Throgmorton. I speak to you as co-chair of the Northside Neighborhood Association's Steering Committee. I come before you today to ask that you amend Item 3c (2) in the staff's August 2 memo. For properties located within the University hnpact Area, we urge you to continue requiring ADUs to be built only on owner -occupied properties. We further recommend that you carve out an exception to permit non-profit providers of income -restricted housing to build ADUs on properties within the UTA. Two months ago we urged you to defer voting on the proposed zoning amendments and to think of ways in which a broader community discussion about the proposed changes could be conducted. We also urged the staff and commission to recognize neighborhood associations as key stakeholders in a collaborative process of considering the proposed amendments. You deferred action on the ADU provisions. Thank you for doing that. And the City staff conducted two open houses pertaining to the ADUs. Several Northside neighbors attended, and we had several stimulating conversations with individual staff members. But these conversations did not enable shared learning on the part of all attendees. People walked in, tried to understand the poster boards, and maybe had a few fleeting conversations. But many looked puzzled. They appeared to be wondering, what do the ADU amendments mean for my neighborhood? The fust challenge residents face when trying to answer that question is to understand the staffs reports. This is no easy task, partly because the technical language of zoning is so unfamiliar to most people. Adding to the difficulty is that the proposed changes vary by zoning category. My own neighborhood contains at least 12 different types of zones, plus three historical overlay districts and one overlay conservation district. The second challenge is to determine how the changes might affect neighborhoods on the ground. This is a daunting task that exceeds the capabilities of normal people trying to live their lives. It calls for collaboration and dialogue between neighborhood leaders and the City's planning staff. To help Northsiders understand how the amendments might affect our neighborhood, we focused our attention on the medium -density residential (RS -8) areas that lie outside the historic preservation districts. Zooming in, we studied one block in Goosetown. This tree -lined block currently contains 31 properties, one of which is vacant. All but one of the main buildings were built in the fust half of the last century. They are all one to two stories in height. The assessed value of this block's 30 single-family properties averages a modest $216,000. Being in the University hnpact Area (UTA), the entire block is affected by the demand for off -campus student housing. Consequently, 9 of the 31 properties are owned by incorporated entities, and 14 of the 31 properties are rentals. The amendments pertaining to accessory dwelling units (ADUs) could — when combined with the amendments permitting duplexes and attached single-family structures in this and other neighborhoods in the UTA — cause some speculative investors to think of Goosetown and other comparable areas as major opportunities for financial gain.' In this scenario, market competition would drive the cost of land up. When properties go on sale, investors would outbid potential owner -occupants. They would very likely demolish older, lower-cost, owner -occupied structures and replace them with the largest possible rental duplexes or attached single-family structures coupled with a rentable ADU. All of this would make it extremely difficult for anyone to buy starter homes in these neighborhoods. Kirk Lehman tells me that 7 of the lots on this block could potentially be redeveloped with duplexes, and 24 of the lots could potentially have ADUs. We looked more closely at two lots in the southwestern corner of the block. One is currently vacant, whereas the other is occupied by a 1'/z story single-family structure. Picture an investor building a new structure and ADU on the vacant lot while that investor (or perhaps another one) purchases the existing structure on the adjacent lot and builds a new ADU in the back. Picture all of the structures being rentals. Picture this being replicated throughout Goosetown and other neighborhoods in the University Impact Area. Contrary to City staffs stated goals, the ADU amendments might increase the supply of housing in this and similar neighborhoods, but the supply of affordable owner -occupied housing would shrink. And, while diversifying housing choices, the amendments could result in the neighborhoods becoming more dominated by investor-owned rental structures. With this concern in mind, we urge you to amend Item 3c (2) in the staffs August 2 memo. For properties located within the University Impact Area, we urge you to continue requiring ADUs to be built only on owner -occupied properties. We also recommend that you carve out an exception which would permit non-profit providers of income -restricted housing to build ADUs on properties within the UTA. ' The bonuses and incentives in Items 4a and 4b should be considered as well. I asked Anne Russett whether investors in RS -8 properties could take advantage of these bonuses if they built a duplex or two attached single- family structures, one unit of which met the City's affordable housing criteria. Briefly summarized, Anne responded that they could. However, she also thinks this is unlikely on infill sites. City Stafrs Proposed Amendments Pertaining to Accessory Dwelling Units Item 3c in the staff's August 2 memo (pp. 12-13) would: (1) allow accessory apartments in any zone that allows household living uses (including RNS-12 and MU zones) and allow them on any lot that contains up to 2 dwelling units; (2) remove the requirement that one unit be owner -occupied; (3) remove limits on the number of bedrooms and residents; (4) increase the size limit to 1,000 square feet or 50% of the floor area of the principal use, whichever is less, and allow stand-alone accessory apartments; (5) remove the requirement for an additional parking space; and (6) remove requirements limiting additions to 10% of a building and limiting entrances to side or rear yards so long as it appears to be a use allowed in the zone. In addition, Items 4a and 4b (pp. 17 and 18) would: (1) for conventional zones, create a 20% density bonus where 20% of units in a development are income -restricted housing for 20 years, to be administered through existing processes; (2) would provide additional flexibility from dimensional standards, including allowing an increase in the maximum height by 5 feet or a 15% setback reduction; and (3) income -restricted affordable housing units in all zones would not be required to have on- site parking if they provide affordable housing for at least 20 years in compliance with the City's new affordable housing requirements. Johnson County Property Information Viewer GIS Information I County Homed parcel number (e,x. t is T lsd' r EFTE i ft a moos 1410 p I ® q:1 ..8 ! 1p Ell U5 z 60 CO 7.1 ; p s e hili' LZ 612,959.7852 2,160.673,7024 Feet E ti t S;.A �}!: f r"i.• '�i � � a1As_� J �� :^,: • ..'wry 1. ���'• .Y: y' — .pf.. .. 0.._ R}Z '.� �. y .ter Parking in the Central Neighborhoods: for Consideration in Regard to Allowing Non -Owner Occupied ADUs in the University Impact Zone 400 block of North Gilbert Street Cars occupy every available on -street parking spot. There are already cars parked illegally on the opposing side of the road. Vehicular travel is difficult and at times dangerous. 500 block of North Gilbert Street Off-street parking is filled solid five blocks from the center of town. It is common for all on -street parking spaces to be taken. The University Impact Area has significant portions of backyards filled with parking. At the ADU Open House, I expressed my concern about the parking waiver for ADUs. In response, staff said that students will learn to leave their vehicles at home (meaning their family home). In addition, the rationale for the parking waiver has been described for seniors who don't drive. It's not logical to think that Iowa City will see an increase of seniors living in ADUs in the University Impact Zone. The driver in the white car executed a three-point turn to change course and allow the garbage truck to pass. I see this every week on garbage day on Lucas Street.The situation is com- pounded in winter with ice and snow. 300 block of North Linn Street At least three cars have yellow no parking tickets on the windshield.The right side of the street is filled solid with parked cars.When adequate parking is not provided by landlords, illegal parking occurs. Please do not allowADUs for non -owner occupied properties. Sharon DeGraw 519 Brown Street Iowa City Sidewalks are blocked for pedestrians including people with disabilities. 600 block of North Johnson Street When inadequate parking is provided illegal parking occurs and public sidewalks are blocked and walkability declines. (0/� X 2-3 My name is William Gorman and I am the Chair of the Housing Action Team of the Johnson County Livable Community for Successful Aging Policy Board. Last November we held a Forum on ADUs and invited all eleven cities in Johnson County to attend. We invited the City Councils and the Mayors as well as homebuilders and realtors. We focused on the benefits of ADUs to help seniors age in place as well as the need for affordable housing for people of all ages. One month later, in December, we submitted to all eleven cities in Johnson County what I would describe as a White Paper, providing recommendations on the elements of a potential ADU zoning code. To be clear, we reached out to Iowa City and the other cities in Johnson County. They did not reach out to us. We appreciate the fact that the city of Iowa City staff took our recommendations seriously. At your direction from the previous meeting, the staff did reach out to the community to solicit additional input, including looking at how other university towns have addressed ADUs. The results show that the university towns have utilized a variety of strategies. Some university towns do not require owner occupancy, some do. We continue to support the staff recommendations, with one caveat. Clearly, many residents have expressed genuine concerns regarding the proposed removal of the owner occupancy requirement. Even though we believe removing the owner occupancy requirement is best practice, and, removing the owner occupancy requirement is likely to more significantly increase the number of ADUs that could be developed, it is very difficult to forecast how many developers will feel there is sufficient profit margin to purchase homes and then add on an ADU in order to rent out both dwellings. Kirk Lehmann's October 4th letter to the Planning and Zoning Committee, on page 7, notes the following: "ADUs may support the stability of existing neighborhoods by accommodating extended families or creating an opportunity to generate revenue from tenants, but it may be necessary to limit them to properties where the primary dwelling unit is the owner's primary residence to avoid speculative investment, particularly when used as short term rentals. Since Iowa law does not allow cities to prohibit short term rentals, in the abundance of caution, we now recommend that Iowa City keep the owner occupancy requirement indicating that the lot owner must reside in the primary residence or the ADU. Then, we suggest that the City revisit this issue in 2-4 years to see if the requirement can be dropped. Lastly, we encourage the city to review its permitting process to look for ways to simplify the application process, decrease fees and eliminate any regulations that may hinder ADU development. Thank you. wI1W�a� City Council Supplemental Meeting Packet CITY OF IOWA CITY October 16, 2023 Information submitted between distribution of packet on Thursday and 4:00pm on Monday. Late 6. Consent Calendar- Settirfi Public Hearings _ Item 6.a Zoning Code Amendment - Accessory dwelling units to improve housing Choice, supply and affordability - See Late P&Z correspondence from Paula Swygard, 9. Planning & Zoning Matters Item 9.a Zoning Code Amendment - Housing Choice, Supply, and Affordability - See correspondence from John Anderson, Kim Anderson. See also revised comment: Comment: At its August 2 meeting, the Planning and Zoning Commission recommended approval of REZ23-0001 by a vote of 5-0 with the exception of the proposed amendments related to accessory apartments, which they voted to defer. The proposed amendments would increase flexibility for a range of housing types to facilitate diverse housing choices, modify design standards to reduce the cost of construction while creating attractive and pedestrian -friendly neighborhoods, and provide additional flexibility through dimensional standards to enhance the supply of housing. The proposed amendments also create regulatory incentives for affordable housing to encourage income -restricted units throughout the community and address fair housing concerns to help support a range of living situations and advance the City's equity and inclusion goals. Correspondence included in Council packet. [Deferred from 10103/2023] October 16, 2023 City of Iowa City -/�(Q, a, From: Paula Swygard <pswygard@gmail.com> Late Handouts Distributed Sent: Monday, October 2, 2023 10:56 AM To: Kirk Lehmann Subject: Zoning Code amendment proposal on Accessory Apartments /0-llo'- �J (Date) I RISIS ** This email originated outside of the City of Iowa City email system. Please take extra care opening any links or attachments. ** Kirk - please pass my comments on to the Planning and Zoning Commission for their October 41 2023 meeting. Thanks! Members of the Planning and Zoning Commission — ADU's, or Accessory Apartments as they are referred to in the Iowa City Zoning Code, can serve a place in Iowa City's housing market. However, given Iowa City's development history heavily led by student housing, I firmly believe as . the planning staff's survey supports, that owner -occupancy must remain as a requirement. Developing more ADU's on owner -occupied properties could create a nice balance of rental units and owner -occupied housing throughout Iowa City, especially in the University Impact Area where the demand for student housing is high. Applying the trickle-down theory that with more housing rental rates and property prices will decline has not proven true in the Iowa City market as developers operate on a per student rate for housing. This prices out lower income residents and those seeking affordable housing. Giving the opportunity to developers to crowd more student housing near the University by allowing ADU's on non -owner occupied property would most likely lead to more of the same expensive housing and is counter to the City goal of neighborhood stabilization. In recommending to City Council changes to Iowa City's zoning code on Accessory Apartments, please maintain the requirement that they be owner occupied. Thanks for your consideration, and for your service, Paula Swygard Item Number: 6.b. CITY OF IOWA CITY COUNCIL ACTION REPORT October 17, 2023 Resolution setting a public hearing on November 6, 2023 on project manual and estimate of cost for the construction of the Wastewater Treatment Facility Improvements Project, directing City Clerk to publish notice of said hearing, and directing the City Engineer to place said project manual on file for public inspection. Prepared By: Ben Clark, Senior Engineer Reviewed By: Tim Wilkey, Wastewater Superintendent Jason Havel, City Engineer Ron Knoche, Public Works Director Geoff Fruin, City Manager Fiscal Impact: $1,350,000 available in Account #V3175 — Wastewater Treatment Facility Improvements 20228 Staff Recommendation: Approval Commission Recommendations: N/A Attachments: Resolution Executive Summary: The project will incorporate three capital improvement projects into one construction contract, including influent flow monitoring, grit classifiers, and biosolids conveyor improvements. Background /Analysis: The existing in -channel area velocity sensor/meter will be replaced with a parshall flume for increased flow measurement accuracy and confidence, which are imperative for plant operations. This will require channel modifications, flume and sensor installation and programming into the headworks programmable logic controller. The grit classifiers were installed in 2002 and have reached the end of their useful design life. They required a major frame repair in 2015, as well as multiple rotating parts replacements over the past 5 years. With improvements in technology, the new classifiers are more effective at dewatering and will produce a more advantageous, drier grit. The conveyor currently collects biosolids from the belt filter presses, taking them to a shaftless screw auger and lifting the biosolids up to discharge over the truck bay. It has been found that when all three presses are operated together, the screw auger cannot keep up with the volume of biosolids delivered by the conveyor. This project will replace the existing conveyor and auger with a continuous conveyor that will keep up with the volume of all three presses, allowing greater operational flexibility. Project Timeline: Public Hearing — November 6, 2023 Bid Letting — November 30, 2023 Award Date — December 12, 2023 Final Completion — December 2024 Prepared by: Ben Clark, Engineering Division, 410 E. Washington St., Iowa City, IA 52240, (319)356-5436 Resolution No. 23-281 Resolution setting a public hearing on November 6, 2023 on project manual and estimate of cost for the construction of the Wastewater Treatment Facility Improvements Project, directing City Clerk to publish notice of said hearing, and directing the City Engineer to place said project manual on file for public inspection. Whereas, funds for this project are available in Account #V3175 - Wastewater Treatment Facility Improvements 2022. Now, therefore, be it resolved by the Council of the City of Iowa City, Iowa, that: 1. A public hearing on the project manual and estimate of cost for the construction of the above-mentioned project is to be held on the 61 day of November, 2023, at 6:00 p.m. in the Emma J. Harvat Hall, City Hall, Iowa City, Iowa, or if said meeting is cancelled, at the next meeting of the City Council thereafter as posted by the City Clerk. 2. The City Clerk is hereby authorized and directed to publish notice of the public hearing for the above-named project in a newspaper published at least once weekly and having a general circulation in the City, not less than four (4) nor more than twenty (20) days before said hearing. 3. A copy of the project manual and estimate of cost for the construction of the above-named project is hereby ordered placed on file by the City Engineer in the office of the City Clerk for public inspection. Passed and approved this 17th day of October , 2023 Ma Approved by Attest: r City Clerk City Attor y's Office (Liz Craig - 10/11/2023) It was moved by Taylor and seconded by Alter the Resolution be adopted, and upon roll call there were: Ayes: Nays: Absent: x Alter x Bergus x Dunn x Harmsen x Taylor x Teague x Thomas Item Number: 6.c. Executive Summary: On October 17,2023, City Council will set a public hearing for November 6, 2023 to consider a resolution authorizing conveyance of 2129 Taylor Drive as part of the South District Program. This will be the sixth home sold under the program. Background /Analysis: Under the South District Program, the City proposes to sell 2129 Taylor Drive for $147,600. The City acquired the duplex at 2129-2131 Taylor Drive in 2019 for $125,610 ($62,805 per unit). City funds were used to rehabilitate the home to sell to an eligible buyer. The home received a new roof, windows, doors, lighting, high efficiency furnace and air conditioner, air source heat pump water heater, long life -cycle flooring, and high efficiency appliances. Following rehabilitation, the duplex was converted to a 2 -unit condominium. The sales price of the home is $147,600. This includes $35,000 in city funds that were used to rehabilitate the property. These costs are provided to the buyer in the form of a conditional mortgage which will be forgiven over 10 years. This amount was included in the sales price to more accurately reflect the value of the property and to avoid artificially deflating home values in the neighborhood. The remaining $112,600 includes the city's purchase price, carrying costs, and rehab costs in excess of $35,000 which include adding a third bedroom in the basement. The homeowner will finance the remaining balance through a private lender to purchase the CITY OF IOWA CITY COUNCIL ACTION REPORT October 17, 2023 Resolution setting a public hearing for November 6, 2023, on a proposal to convey a single- family home located at 2129 Taylor Drive. Prepared By: Stan Laverman, Senior Housing Inspector Reviewed By: Erika Kubly, Neighborhood Services Coordinator Geoff Fruin, City Manager Fiscal Impact: City funds were budgeted at $35,000 for rehabilitation expenses, and up to $25,000 in federal HOME funds may be used for buyer down payment assistance. There will be no impact on the general fund for ongoing operational expenses. Staff Recommendation: Approval Commission Recommendations: NA Attachments: 2129-2131 Taylor Resolution Executive Summary: On October 17,2023, City Council will set a public hearing for November 6, 2023 to consider a resolution authorizing conveyance of 2129 Taylor Drive as part of the South District Program. This will be the sixth home sold under the program. Background /Analysis: Under the South District Program, the City proposes to sell 2129 Taylor Drive for $147,600. The City acquired the duplex at 2129-2131 Taylor Drive in 2019 for $125,610 ($62,805 per unit). City funds were used to rehabilitate the home to sell to an eligible buyer. The home received a new roof, windows, doors, lighting, high efficiency furnace and air conditioner, air source heat pump water heater, long life -cycle flooring, and high efficiency appliances. Following rehabilitation, the duplex was converted to a 2 -unit condominium. The sales price of the home is $147,600. This includes $35,000 in city funds that were used to rehabilitate the property. These costs are provided to the buyer in the form of a conditional mortgage which will be forgiven over 10 years. This amount was included in the sales price to more accurately reflect the value of the property and to avoid artificially deflating home values in the neighborhood. The remaining $112,600 includes the city's purchase price, carrying costs, and rehab costs in excess of $35,000 which include adding a third bedroom in the basement. The homeowner will finance the remaining balance through a private lender to purchase the home. The home features two bedrooms and one bathroom on the main floor with an additional bedroom in the basement. The buyers are currently residents of the South District neighborhood and are first-time home buyers. The buyers will complete a homeowner education course and counseling through Horizons. a r X'iy i � w l..:.'as. _ r ��^^ . ..2 � f \ � ` �� �- z«z� �T� «:.�. � ���� ��-�-- � ? �� : 7 . . . � .� Before/Progress Photos: 2129-2131 Taylor Drive www.icgov.org/SouthDistrict Prepared by: Susan Dulek, First Asst City Atty, 410 E. Washington St., Iowa City, IA 52240; (319) 356-5030 Resolution No. 23-282 Resolution setting public hearing for November 6, 2023, on a proposal to convey a single-family home located at 2129 Taylor Drive. Whereas, the South District Home Investment Partnership Program is an effort by the City to encourage home ownership and reinvestment in designated neighborhoods; and Whereas, the City purchases residential properties, rehabilitates them, and then sells them to income -eligible buyers; and Whereas, the City purchased a duplex at 2129-2131 Taylor Drive, rehabilitated it, and converted it to a 2 -unit condominium; and Whereas, the City has received an offer to purchase 2129 Taylor Drive for the principal sum of $147,600; and Whereas, this sale would provide affordable owner -occupied housing. Now, therefore, be it resolved by the City Council of the City of Iowa City, Iowa, that: The City Council does hereby declare its intent to convey the home located at 2129 Taylor Drive, Iowa City, Iowa, also known as Unit A, 2129-2131 Taylor Drive Condominiums, Iowa City, Iowa, for the sum of $147,600. 2. A public hearing on said proposal should be and is hereby set for November 6, 2023, at 6:00 p.m. in Emma J. Harvat Hall of the Iowa City City Hall, 410 East Washington Street, Iowa City, Iowa, or if said meeting is cancelled, at the next meeting of the City Council thereafter as posted by the City Clerk, and that the City Clerk be and is hereby directed to cause notice of said public hearing to be published as provided by law. Passed and approved this 17 th day of Octob 023. r/ Mayor ) Attest: ✓ J' Cit Clerk Approved by City Att ney's Office (Sue Dulek -10/11/2023) Resolution No. 93_982 Page 2 It was moved by Taylor and seconded by Alter the Resolution be adopted, and upon roll call there were: Ayes: Nays: Absent: Alter Bergus Dunn Harmsen Taylor Teague Thomas Item Number: 10.c. CITY OF IOWA CITY COUNCIL ACTION REPORT October 17, 2023 Resolution approving Iowa City's Pathways to Removing Obstacles to Housing (PRO Housing) grant application to help address barriers leading to the acute scarcity of affordable housing in Iowa City. Prepared By: Kirk Lehmann, Associate Planner Reviewed By: Tracy Hightshoe, Neighborhood and Development Services Director Fiscal Impact: $2,850,000 in leveraged funds to be used in support of the project. Staff Recommendation: Approval Commission Recommendations: N/A Attachments: Resolution Appendix A City Council correspondence - Escucha Mi Voz Iowa Executive Summary: The Department of Neighborhood and Development Services (NDS) intends on applying to the U.S. Department of Housing and Urban Development (HUD) for $5.6 million in Pathways to Removing Obstacles to Housing (PRO Housing) grant funds to address a critical issue within our community — the acute scarcity of affordable housing. These funds would empower the City to undertake activities which will remove barriers to affordable housing, increase housing production, and lower housing costs for families over the long-term. In order to apply for funds, City Council must approve the PRO Housing Grant Application. Staff is also requesting that City Council authorize the use of at least $2.85 million in funding to act as leverage to ensure a competitive application. The full grant application is included in the attachment. The draft PRO Housing grant application was made available for public comment on October 2, 2023. A public meeting will be held at the City Council meeting on October 17, 2023, after which the 15 -day public comment period will close and Council will consider a resolution approving the PRO Housing grant application and allocation of leveraged funds. The application is due to HUD on October 30, 2023. Background /Analysis: Iowa City has a uniquely expensive housing market in Iowa. The City has a high demand for housing generated by students enrolled at the University of Iowa along with a strong economic base and high quality of life. However, the City also has a limited supply of housing that is not expanding fast enough to meet the demand generated by rapid growth. As a result, the City has consistently experienced problems with high housing costs relative to incomes. Due to the ongoing need and issues surrounding housing affordability, the City of Iowa City has long focused on facilitating the creation of affordable housing opportunities and on enhancing housing choice within neighborhoods with a special focus on equity and low- income households. While the City has made considerable progress towards its affordable housing goals since first adopting its Affordable Housing Action Plan in 2016, there are still several barriers that have been identified as further hindering the development of affordable housing. These include: 1. Zoning Regulations and Procedure 2. Land Use Policy 3. Local Development Capacity 4. Low Incomes Relative to High Housing and Construction Costs The overarching vision of proposed activities is to help ensure Iowa City is a place that offers attractive and affordable housing for all people — housing that is the foundation of healthy, safe, and diverse neighborhoods throughout the City. Proposed activities are intended to build on the successes of previous efforts undertaken in support of affordable housing. The full budget for proposed activities would be $8.45 million, of which $5.6 million would be paid for by the grant and of which $2.85 million would be City leverage. The City will accomplish this vision by undertaking the following planning- and housing -related activities: • Parking Study & City -Initiated Parking Code Amendments ($250,000) . The City's minimum on-site parking standards are often identified as inhibiting the construction of new housing. The purpose of this activity is to conduct a comprehensive parking study to evaluate the extent to which parking standards should be modified. This would be followed by Zoning Code text amendments to right -size the City's parking standards. • Regional Housing Study ($150,000). One shortcoming to current efforts is that they evaluate trends within City limits but there is no holistic, regional understanding of the area housing market. A comprehensive assessment of the region's housing needs would help assess exactly what the gaps in the housing market are, how the policies of different neighboring jurisdictions interact, and how the City can best position itself to meet its share of regional affordable housing needs. • Comprehensive Plan Update: Housing and Land Use Elements ($150,000) . Another identified barrier is the City's existing land use policies embodied in its Comprehensive and District Plans. By investing in a revised Comprehensive Plan, the City ensures its adopted goals and strategies are closely tied to the community's current priorities and that development is well -situated to address existing disparities and prepare for an uncertain future. This update is also essential to lay the groundwork for comprehensively reforming the City's Zoning Code to better align with the community's increasing focus on climate action and resiliency, equity, and housing affordability. • City -Initiated Higher Density Rezoning ($50,000). The land entitlement process also acts as a regulatory barrier, especially for higher density and lower cost housing types. Consequently, the City intends to initiate a rezoning to allow higher density uses and increase the supply of more lower cost housing types in areas identified as part of the Comprehensive Plan update process. A City -initiated rezoning process allows a more holistic and proactive approach to ensure areas intended for higher densities are appropriately zoned. • Housing Development Division and Pilot Affordable Housing Project ($5,850,000) . The City has a lack of local development capacity, especially for affordable housing projects. The City intends to explore the creation of a development arm for the Iowa City Housing Authority (ICHA) to directly undertake affordable housing projects. The City will also use funds to jumpstart a pilot affordable housing development project with 24 dwelling units that would build internal affordable housing development experience and provide permanent affordable units. The goal is for the program to become self- sustaining with anticipated revenues from developer fees on subsequent projects and on rental income. The City currently owns 21 affordable rental units that are not federally funded. This project will lay the groundwork for continued viability of the proposed division. • Accessory Dwelling Unit (ADU) Incentive Program ($500,000) . The City has recently focused on encouraging ADUs as one of several ways to help meet the need for additional housing, especially since they tend to have lower construction costs. However, one of the biggest remaining barriers is the absence of direct financial assistance to property owners. The City intends to provide a program to incentivize ADU construction which will help directly increase the supply of housing, improve lender familiarity with these housing types, and promote ADUs as an important component to the City's neighborhoods. • Housing Public Service Activities ($950,000) . In addition to addressing long-term barriers, the City understands there is a need to provide direct assistance that would help meet the short-term need for struggling households. First, the City would use funds to offer housing counseling services as a proactive way to help households navigate the pressing housing challenges that they face. Second, the City would establish an Immediate Housing Assistance Program to help those who are otherwise at risk of becoming unhoused through a combination of security deposit assistance and temporary rental assistance • Project Administration ($550,000). To ensure successful administration of the PRO Housing grant, the City proposes hiring a full-time position to oversee grant funds. These funds would include general management of grant funds, activity oversight and coordination, providing public information about PRO housing activities, preparing budgets and schedules, preparing reports and other HUD -required documents such as the PRO Housing Action Plan, and monitoring proposed activities to ensure compliance with all requirements. PRO Housing grant funding would expand the City's ability and accelerate the implementation timeline for activities previously considered by Council and will provide an opportunity to fund newer priorities as well. All proposed activities will begin prior to September 30, 2026 and be completed prior to September 30, 2029. Several activities will begin as soon as funds are awarded, though others will depend on the completion of prerequisite work. Proposed activities will be administered by existing Neighborhood and Development Services staff, in addition to an anticipated 3 FTE grant -funded positions. Overall, the City has designed its grant proposal activities to address both short and long- term aspects of the its housing crisis. However, the cumulative effect of all proposed activities is to create change that will last long past the grant's period of performance, including the permanent elimination of several key barriers to housing affordability. If awarded funds, the City is committed to ensuring the success of all proposed activities and hopes it can create an effective model that other small and mid-sized, midwestern cities can replicate to address key barriers to affordable housing. The complete PRO Housing Grant Application is available in the attachments. The full draft PRO Housing grant application was made available for public comment on October 2, 2023. Any comments and staff answers are included in Attachment A of the grant application. The PRO Housing grant application is due to HUD by October 30, 2023. Item: 10.c STAFF PRESENTATION TO FOLLOW: T CITY OF IOWA CITY 410 East Washington Street Iowa City, Iowa 52240-1826 (319) 3S6-5000 (319) 356-5009 FAX www.icgov.org Item 10.c: Approval of the PRO Housing Grant Application Resolution approving Iowa City's Pathways to Removing Obstacles to Housing (PRO Housing) grant application to help address barriers leading to the acute scarcity of affordable housing in Iowa City PRO Housing Grant U.S. Department of Housing and Urban Development (HUD) $85 million in competitive grant funding Intended to help identify and remove barriers to affordable housing production and preservation Awards from $1 million to $10 million Expected for 20 communities Application Review Criteria 1. Need (35 pts) 2. Soundness of Approach (35 pts) 3. Capacity (10 pts) 4. Leverage (10 pts) Long -Term Effect (10 pts) PRO Housing $5,600,000 Funds City Affordable $2,850,000 Housing Funds* Total Revenues $8,450,000 * Funds would be allocated over multiple years Proposed Activity Parking Study & City - Initiated Revisions to Zoning Code Parking Standards Regional Housing Study Comprehensive Plan Update: Housing and Land Use Elements City -Initiated Higher Density Rezoning ICHA Feasibility Stu y Housing Development Division Subtotal r Funding Proposed Planning - Related Activities Proposed Activity Accessory Dwelling Unit Incentive Program Housing Counseling Immediate Housing Assistance Program Pilot Affordable Housing Development Project Subtotal Funding Proposed Housing - Related Activities Proposed Activity Funding Project Administration Proposed Administration -Related Activities Public Comment The City received one piece of correspondence from the Catholic Worker House with 6 concerns and 6 recommendations. Staff will amend the application to better reflect the ways in which the application will affirmatively further fair housing. Notice of Funding Opportunity (NOFO) Posted: September 7, 2023 Draft Application Published/Start of Comment Period: October 2, 2023 Public Meeting/End of Comment Period: October 17, 2023 Application Due Date: October 30, 2023 Estimated start date: January 31, 2024 All proposed activities have started: September 30, 2026 Estimated end date: September 30, 2029 STAFF PRESENTATION CONCLUDED CITY OF IOWA CITY 410 East Washington Street Iowa City, Iowa 52240-1826 (3 19) 356-5000 (319) 356-5009 FAX www.icgov.org City Council Supplemental Meeting Packet CITY OF IOWA CITY October 17, 2023 Information submitted between distribution of late handouts on Monday and 3:00 pm on Tuesday. Late Handout(s): 9 Planning &Zoning Matters Item 9.a Zoning Code Amendment- Housing Choice, Supply, and Affordability- See correspondence from Alyse Slau h Regular Formal Agenda Item 10.c Approval of the PRO Housing Grant Application - See email and attachment from City staff regarding response to comments received. October 17, 2023 City of Iowa City C, Kellie Grace From: Anne Russett Sent: Tuesday, October 17, 2023 10:05 AM Late Handouts Distributed To: Kellie Grace Cc: Kirk Lehmann;Tracy Hightshoe; Danielle Sitzman Subject: Late Correspondence - Item 10.c l -7 — Z Attachments: 2023-10-17 Catholic Worker House Response Letter.pdf (Date) Kellie— Please see the attached late correspondence for Council's meeting tonight(item 10.c.). This is our response to comments we received on the PRO Housing Grant application. Let us know if you have any questions. Thanks, Anne CITY OF IOWA CITY ' Anne Russett, AICP UNESCO CITY OF LITERATURE Senior Planner She/Her/Hers VWVW ICGOV ORG O O p: 0 E Wash5251 ington 410 E Washington St Iowa City, IA 52240 1 FARE FREE Iowa City Transit is now FARE FREE! IOWA CITY Learn more at 1CGOV.ORGIFAREFREE 1 tr October 17, 2023 CITY OF IOWA CITY 410 East Washington Street David Goodner and Daniana Trioso-Kukulski Iowa City. Iowa S2240-1826 Escucha Mi Voz Iowa (3 19) 356-5000 Via Email: inf_o@escuchamiyozia.orq (319) 356-5009 FAX wwwAcgov.org RE: PRO Housing Grant Comments Escucha Mi Voz Iowa: Thank you for your comments on the PRO Housing grant application. Your comments were forwarded to City Council for consideration. Staffs response based on your listed concerns and recommendations include the fallowing: 1. At the time the application was drafted, the Affordable Housing Amendments were on track to be approved prior to grant submittal.The grant application included in the October 17 Council packet reflects that those amendments are instead being considered rather than being approved. 2. The letter recommended increasing the City's matching leverage from 52 percent. Council may request staff to revise the budget based on the input they have received. 3. The letter had several concerns about overcoming opposition to equitable housing and reflecting the broader needs of protected class groups like working immigrant and refugee families. The City will build support for equitable housing through education, dialogue,and consensus-building during its comprehensive planning process.The City will also strive to ensure that all voices are involved, especially low- and mid-income residents in addition to protected class groups and those that speak languages other than English. The application will be updated prior to submittal to better reflect the ways the City will affirmatively further fair housing and enhance racial equity, including the use of the City's equity toolkit for proposed housing-related activities. Specifics regarding outreach will be identified during implementation of proposed activities. Staff invites interested parties to remain in dialogue with the City regarding these activities. 4. The letter recommended removing funding for the regional housing study and comprehensive parking study. Information provided in these studies are essential to opening dialogue with the public and calibrating any proposed changes to the Zoning Code. Staff would strongly recommend against removing the $400,000 for those efforts. 5. The letter recommended considering specific rezonings and encouraging affordable housing throughout the community. The City strongly supports encouraging affordability throughout the city and not concentrating them within a limited number of areas. In some cases, the comprehensive plan indicates that higher density development is appropriate in areas currently zoned for lower densities. The City typically considers each request upon application but will more intentionally rezone properties as part of the proposed activities. The City encourages property owners who may be interested in higher densities to contact staff and begin preliminary discussions. October 17, 2023 Page 2 There will be many opportunities to comment and participate during the implementation of proposed activities if awarded funding, especially during comprehensive and other planning- related efforts. Please let me know if you have any additional questions. Regards, #6?�L Kirk Lehmann, AICP City of Iowa City of Iowa City 410 E. Washington Street 1C)'.C,�, Prepared by: Kirk Lehmann, Associate Planner, 410 E. Washington St., Iowa City, IA 52240 (319) 356-5247 Resolution No. 23-283 Resolution approving Iowa City's Pathways to Removing Obstacles to Housing (PRO Housing) grant application to help address barriers leading to the acute scarcity of affordable housing in Iowa City Whereas, the U.S. Department of Housing and Urban Development invites applications for the Pathways to Removing Obstacles to Housing (PRO Housing) grant which empowers communities that are actively taking steps to remove barriers to affordable housing and seeking to increase housing production and lower housing costs for families over the long term; and Whereas, the City of Iowa City, Iowa (City) intends to apply for $5.6 million in PRO Housing grant funds to help address the acute scarcity of affordable housing within the community; and Whereas, the City must prepare and submit a PRO Housing grant application to apply for funds, attached hereto as Appendix A; and Whereas, PRO Housing grant funds would allow the City to undertake activities detailed in Appendix A in support of its efforts to enhance housing affordability throughout the city; and Whereas, the City's PRO Housing grant application includes leveraged commitments of $2.85 million in funding as an indicator of support and commitment in the community; and Whereas, the City has disseminated information, solicited public input, and held a public meeting on the PRO Housing grant application; and Whereas, the PRO Housing grant application will allow Iowa City to apply for federal funds administered by the U.S. Department of Housing and Urban Development; and Whereas, the City Council finds that the public interest will be served by the submission of the PRO Housing grant application to the U.S. Department of Housing and Urban Development. Now, Therefore, be it resolved by the City Council of the City of Iowa City, Iowa, that: 1. The City of Iowa City City Council approves submission of the PRO Housing grant application, attached hereto as Appendix A. 2. The City Manager is hereby designated as the Chief Executive Officer and authorized to act on behalf of the City of Iowa City in connection with the PRO Housing grant, including utilizing up to $2.85 million in City funds as leverage. 3. The City Manager of Iowa City or designee is hereby authorized and directed to submit the City of Iowa City PRO Housing grant application to the U.S. Department of Housing and Urban Development and is further authorized and directed to provide all the necessary certifications or documents required by the U.S. Department of Housing and Urban Development. Resolution No. 23-283 Page 2 4. The City Manager is hereby authorized to execute, terminate, or amend agreements relating to PRO Housing funds executed in connection with the allocation of public funds with sub -recipients or other legal entities. Passed and approved this 17nd day of October 2023. Attest: ))�,, City Clerk M r Z/�, . City Attorney's Office (Sue Dulek — 10/11/2023) Resolution No. 23-283 Page 3 It was moved by Bergus and seconded by Dunn that the Resolution be adopted and upon roll call there were: AYES: NAYS: ABSENT: _x Alter X Bergus X Dunn X Harmsen X Taylor % Teague X Thomas INSERT Appendix A 1. Table of Contents: 1 2. Narrative Exhibits: 2 Exhibit A: Executive Summary: 3 Exhibit B: Threshold Requirements and Other Submission Requirements: 7 Exhibit C: Need: 8 Exhibit D: Soundness of Approach: 17 Exhibit E: Capacity: 31 Exhibit F: Leverage: 35 Exhibit G: Long-term Effect: 36 3. Attachments: 40 Attachment A: Summary of Comments Received on Published Application and List of Commenters by Name/Organization: 41 Attachment B: Leverage Documentation: 42 Attachment C: Eligible Applicant Documentation: 45 Attachment D: Application Certifications and Standard Forms: 48 1 2. Narrative Exhibits Exhibit A: Executive Summary The City of Iowa City is seeking $5.6 million in Pathways to Removing Obstacles to Housing (PRO) grant funds to address a critical issue within our community — the acute scarcity of affordable housing. These funds would empower the City to undertake activities which will remove barriers to affordable housing, increase housing production, and lower housing costs for families over the long-term. The Problem Iowa City, home to the University of Iowa, has a uniquely expensive housing market in the State of Iowa. The City of 75,000 (in Johnson County, population 153,000) has a high demand for housing generated by a student body of 31,000 along with a strong economic base and high quality of life. However, the City also has a limited supply of housing that is not expanding fast enough to meet the demand generated by rapid growth. As a result, the City has consistently experienced problems with high housing costs relative to incomes. Consider the following: Restricted Housing Supply. Iowa City is expected to grow by just over 10,000 residents between 2020 and 2030. This growth will require approximately 4,600 new housing units to meet demand. However, the City is only on track to meet 62% of that demand for housing based on recent building permit trends. This restriction in the housing supply leads to increased competition, rising rental prices (especially in neighborhoods near the university), and higher sales prices. This is also reflected in vacancy rates that are lower than typical in a healthy market. Housing Cost Burden. Iowa City also has relatively low incomes compared to its housing costs. Housing cost -burden is defined as a household spending more than 30% of its income on housing. In 2021, 22% of homeowners with a mortgage and 61% of renters were considered housing cost burdened. Unfortunately, this is not just due to the high number of students. Of households over the age of 25, 20% make less than $30,000 annually and another 13% make less than $50,000. These incomes make it difficult to find housing one can afford in one of the most expensive markets in Iowa. Faced with high and rising housing costs, households with lower incomes are forced to make choices, including staying in current housing and cutting back on other critical necessities, consolidating housing with other households (which can lead to overcrowding), moving more frequently or to lower quality housing, moving to less desired neighborhoods that are further away in exchange for longer commutes, or losing housing altogether. The Commitment Due to the ongoing need and issues surrounding housing affordability, the City of Iowa City has long focused on facilitating the creation of affordable housing opportunities and on enhancing housing choice within neighborhoods with a special focus on equity and low-income households. The City of Iowa City increased efforts to systematically address its affordable housing needs beginning in 2016 when City Council adopted its first Affordable Housing Action Plan. The plan identified 15 steps based on public input about how the City could address housing affordability and on goals in its long-term plans. The City has since completed all action steps and continued engaging stakeholders to identify additional barriers to affordable housing. The City updated its Affordable Housing Action Plan in 2022 to build off previous efforts in support of affordable housing. Recommendations were developed following nearly a year of data review and community engagement. Concurrent with this effort, City Council drew upon previous planning work, studies, and community conversations to refine strategies, determine action steps, and establish priorities for their FY23-FY28 Strategic Plan which included advancing prioritized recommendations in the 2022 Affordable Housing Action Plan. This planning activity spurred City Council to consider amendments to the City's Zoning Code focused on improving housing choice, increasing housing supply, and encouraging affordability. These amendments address several previously identified regulatory obstacles to affordable housing, including most policies that can be accomplished under the currently adopted Comprehensive Plan. However, there are still several barriers that have been identified by staff and the public as further hindering the development of affordable housing. These include: 1. Zoning Regulations and Procedure 2. Land Use Policy 3. Local Development Capacity 4. Low Incomes Relative to High Housing and Construction Costs The City of Iowa City is committed to addressing these persistent barriers that lead to the community's acute scarcity of affordable housing. The Proposal The overarching vision of proposed activities is to help ensure Iowa City is a place that offers attractive and affordable housing for all people — housing that is the foundation of healthy, safe, and diverse neighborhoods throughout the City. Proposed activities are intended to build on the successes of previous efforts undertaken in support of affordable housing. The City will accomplish this vision by undertaking the following planning- and housing -related activities: Parking Study & City -Initiated Parking Code Amendments. The City's minimum on- site parking standards are often identified as inhibiting the construction of new housing. The purpose of this activity is to conduct a comprehensive parking study to evaluate the extent to which parking standards should be modified. This would be followed by Zoning Code text amendments to right -size the City's parking standards. Regional Housing Study. One shortcoming to current efforts is that they evaluate trends within City Limits but there is no holistic, regional understanding of the area housing market. A comprehensive assessment of the region's housing needs would help assess exactly what the gaps in the housing market are, how the policies of different neighboring jurisdictions interact, and how the City can best position itself to meet its share of regional affordable housing needs. Comprehensive Plan Update: Housing and Land Use Elements. Another identified barrier is the City's existing land use policies embodied in its Comprehensive and District Plans. By investing in a revised Comprehensive Plan, the City ensures its adopted goals and strategies are closely tied to the community's current priorities and that development is well-situated to address existing disparities and prepare for an uncertain future. This update is also essential to lay the groundwork for comprehensively reforming the City's Zoning Code to better align with the community's increasing focus on climate action and resiliency, equity, and housing affordability. City-Initiated Higher Density Rezoning. The land entitlement process also acts as a regulatory barrier, especially for higher density and lower cost housing types. Consequently, the City intends to initiate a rezoning to allow higher density uses and increase the supply of more lower cost housing types in areas identified as part of the Comprehensive Plan update process. A City-initiated rezoning process allows a more holistic and proactive approach to ensure areas intended for higher densities are appropriately zoned. Housing Development Division and Pilot Affordable Housing Project. The City has a lack of local development capacity, especially for affordable housing projects. The City intends to explore the creation of a development arm for the Iowa City Housing Authority (ICHA) to directly undertake affordable housing projects. The City will also use funds to jumpstart a pilot affordable housing development project with 24 dwelling units that would build internal affordable housing development experience and provide permanent affordable units. The City currently owns 21 affordable rental units that are not federally funded. The goal is for the program to become self-sustaining with anticipated revenues from developer fees and rental income on subsequent projects. This project will lay the groundwork for continued viability of the proposed division. Accessory Dwelling Unit (ADU) Incentive Program. The City has recently focused on encouraging ADUs as one of several ways to help meet the need for additional housing, especially since they tend to have lower construction costs. This has included consideration of updates to the City's ADU regulations. However, one of the biggest remaining barriers is the absence of direct financial assistance to property owners. The City intends to provide a program to incentivize ADU construction which will help directly increase the supply of housing, improve lender familiarity with these housing types, and promote ADUs as an important component to the City's neighborhoods. Housing Public Service Activities. In addition to addressing long-term barriers, the City understands there is a need to provide direct assistance that would help meet the short- term need for struggling households. First, the City would use funds to offer housing counseling services as a proactive way to help households navigate the pressing housing challenges that they face. Second, the City would establish an Immediate Housing Assistance Program to help those who are otherwise at risk of becoming unhoused through a combination of security deposit assistance and temporary rental assistance. PRO Housing grant funding would expand the City's ability and accelerate the implementation timeline for making many of its biggest changes. Requested funding and expenses for proposed activities are estimated to be as follows. Proposed Revenues PRO Housing Funds $5,600,000 City Affordable Housing Funds $2,850,000 Total Revenues $8,450,000 Proposed Expenditures Planning -Related Activities Parking Study & City -Initiated Revisions to Zoning Code Parking Standards $250,000 Regional Housing Stud $150,000 Comprehensive Plan Update: Housing and Land Use Elements $150,000 City -Initiated Higher Density Rezoning $50,000 ICHA Feasibility Study for Housing Development Division $50,000 Subtotal $650,000 Housing -Related Activities Accessory Dwelling Unit Incentive Program $500,000 Housing Counseling $200,000 Immediate Housing Assistance Program $750,000 Pilot Affordable Housing Development Project $5,800,000 Subtotal $7,250,000 Administration -Related Activities Project Administration $550,000 Subtotal $550,000 Total Expenses $8,450,000 All proposed activities will begin prior to September 30, 2026 and be completed prior to September 30, 2029. Several activities will begin as soon as funds are awarded, though others will depend on the completion of prerequisite work. Proposed activities will be administered by existing Neighborhood and Development Services staff, in addition to an anticipated 3 FTE grant -funded positions. The Result Overall, the City has designed its grant proposal activities to address both short and long-term aspects of the City's housing crisis. However, the cumulative effect of all proposed activities is to create change that will last long past the grant's period of performance, including the permanent elimination of several key barriers to housing affordability. If awarded funds, the City of Iowa City is committed to ensuring the success of all proposed activities. hi the end, the City hopes it can create an effective model that other small and mid-sized, midwestern cities can replicate to address key barriers to affordable housing. Exhibit B: Threshold Requirements and Other Submission Requirements The City of Iowa City, Iowa (herein "City") is applying as a City government, which is an eligible applicant per the Notice of Funding Opportunity (NOFO) posted by the U.S. Department of Housing and Urban Development (HUD). The City currently has no outstanding civil rights matters that must be resolved, and the City will submit only one complete application before the deadline indicated in the NOFO. All relevant documentation is included in the following exhibits and Attachment C as itemized in the Table of Contents. Exhibit C: Need Iowa City, home to the University of Iowa, has a uniquely expensive housing market in the State of Iowa. The City of 75,000 (in Johnson County, population 153,000) has a high demand for housing generated by a student body of 31,000 along with the colocation of highly desirable jobs at the University of Iowa Hospitals and Clinics. However, the City also has a limited supply of housing that is not expanding fast enough to meet the demand generated by rapid growth. This problem is exacerbated by high competition for units, especially in amenity -rich areas near the University, between lower-income students and workers and a relatively well-educated, higher - income population who values proximity to amenities. This has caused the City to consistently experience problems with high housing costs relative to income. As a result of these factors, the City of Iowa City has long focused on facilitating the creation of affordable housing opportunities and on enhancing housing choice within neighborhoods with a special focus on equity and low-income households. However, key barriers still exist that must be addressed to meet the acute demand for housing. Past Efforts to Identify and Address Barriers to Affordable Housing The City of Iowa City increased efforts to systematically address its affordable housing needs beginning in 2016 when City Council adopted its first Affordable Housing Action Plan. The plan identified 15 steps based on public input about how the City could address the housing affordability goals in its long-term plans. The City since completed all action steps and continued engaging stakeholders to identify additional barriers to affordable housing. Highlights include: • Affordable Housing Requirement. The City amended its Zoning Code in 2016 to require that new developments in the Riverfront Crossings District near downtown provide at least 10% of dwelling units as affordable housing for 10 years (or pay a fee in lieu). The affordable housing requirement is triggered when the developer voluntarily requests an upzoning to a Riverfront Crossings zone. For this application, affordable housing and/or affordable units are specifically intended to reference housing units provided to low- and moderate -income (LMI) households at fair market rents or HUD purchase price limits. As of 2023, the City has agreements for 79 affordable units in the Riverfront Crossings District, along with fees totaling $5.8 million which will be used to fund affordable housing in the District. • Affordable Housing Fund. Beginning in fiscal year 2017, the City began funding affordable housing as a separate budget item. This has been used to fund the Housing Trust Fund of Johnson County, to match Low Income Housing Tax Credit (LIHTC) projects, to create an Affordable Housing Opportunity Fund (eligible uses include land acquisition for future affordable housing projects), to finance the City's Healthy Homes Program, to initiate Security Deposit and Landlord Risk Mitigation programs to help low- income households secure housing, and to address emergent situations. In total, the City has provided $7.65 million over the past 8 years. • Tenant Rent Abatement and Displacement Policies. In 2017, Council amended City Code to require that site plans which displace 12 or more households must include a transition plan to better inform residents and the public. In addition, rent abatement can be ordered for units that are determined to be unfit for human habitation. • Affordable Housing Annexation Policy. In 2018, the City amended the Comprehensive Plan to only consider annexations where at least 10% of new housing is provided as affordable housing for 20 years. Since that time, the City has annexed property that will result in the creation of 17 affordable units. • Residential Tax Increment Financing (TIF). The City adopted a policy supporting TIF funds to assist with the cost of residential development where a percentage of funds are set aside for affordable housing. A TIF agreement for Foster Road in 2018 is expected to generate up to $1.5 million for affordable housing over 10 years, and a TIF agreement for the Tailwinds project in 2021 generated another $1.8 million. To date, TIF requirements have created 26 affordable units in addition to 11 affordable units purchased by the City. • Affordable Housing Tax Abatement. In 2019, City Council established a tax abatement program to incentivize the construction of affordable multi -family housing. This allows a 40% property tax exemption for 10 years on all housing units for residential developments exceeding 6 units where 15% to 20% are leased to households under 40% of the area median income at rents that are affordable for that income level. This policy has not been used. • Form -Based Code. In 2021, the City adopted a form -based zoning code for undeveloped land in areas where the City expects growth. The code includes a density bonus and waiver from minimum parking waivers for affordable housing, and allows a mix of housing types in all neighborhoods (including a requirement that at least 2 housing types be provided within each block). Two Comprehensive Planning District Plans have been amended to allow the use of the code but no project has yet used the code. In 2019, the City adopted a Fair Housing Choice Study which systematically reviewed impediments to accessing housing due to protected characteristics in the federal Fair Housing Act such as race, gender, or disability. The Study also recommended actions to affirmatively further fair housing based on extensive public input including targeted feedback from stakeholder interviews and focus groups, a fair housing survey, public events, and a public adoption process. Participants identified a lack of affordable rental housing as one of the most significant fair housing issues, and the study found that one of the primary barriers was the limited number of housing choices throughout neighborhoods for residents with protected characteristics who tend to have disproportionately lower incomes. This includes a limited availability and diversity in price points, housing types, and locations that would facilitate equal access. Since adoption, the City used the plan to help address identified barriers: Retrofit Housing for Equal Access. For persons with disabilities, appropriately designed housing can be difficult to find, so it is important to provide ways to make housing accessible to provide an equal opportunity to use and enjoy a dwelling. While cities are obligated to provide reasonable accommodations to land use or zoning policies by federal law, the City's Zoning Code did not have a comprehensive or systematic way to address reasonable accommodations requests. In 2023, the City adopted a reasonable accommodations process in the Zoning Code to streamline the ability to request reasonable accommodations with a consistent and defined approval procedure. Fair Treatment of Uses. The City's Zoning Code had several housing types defined by protected characteristics that were treated as fundamentally different. The Zoning Code classified Community Service -Long Term Housing, i.e. housing owned by a public or nonprofit agency that provided supportive services to persons with disabilities, as an institutional use. Assisted Group Living also faced additional barriers. As a result, these uses were primarily allowed in certain commercial zones and were often required to receive a special exception or meet other unique approval criteria. In 2023, the City amended the Zoning Code to treat these uses more similarly to other residential uses, allowing them in a wider range of zones with fewer discretionary approval processes. The City updated its Affordable Housing Action Plan in 2022 to build off previous efforts in support of affordable housing. Recommendations were developed following nearly a year of data review and community engagement. Concurrent with this effort, City Council drew upon previous planning work, studies, and community conversations to refine strategies, determine action steps, and establish priorities for their FY23-FY28 Strategic Plan which included advancing the prioritized recommendations in the 2022 Affordable Housing Action Plan. The City began implementing these new actions shortly thereafter, including: Eliminating the Affordable Housing Location Model (AHLM). The AHLM was an effort to avoid overconcentrating the location of City -subsidized housing, especially in elementary school catchment areas with high rates of free and reduced lunch students. However, it had the effect of chilling affordable housing production funded by the City because much of the City exceeded the allowable threshold. Consequently, the model was discontinued, and the funding criteria was revised to instead focus on incentivizing affordable housing in high opportunity neighborhoods. To date, 3 rental acquisition projects are moving forward that would have previously been ineligible for City funding. Funding Transparency. The Iowa City Housing and Community Development Commission (HCDC) uses scoring criteria to rank projects applying for City funding. However, many nonprofits have noted that past HCDC funding recommendations have deviated from the scoring criteria. As a result, HCDC has recently revisited their process to provide greater transparency in how funding decisions are made. Technical Assistance. Following adoption of the 2022 Action Plan, staff held a general technical assistance meeting for area affordable housing providers to share what City resources are available to support their efforts as well as introduce staff who administer housing -related programs. Staff also developed a funding guide for developers and added it to the City website. This training will be provided for free every year in addition to its regular grant -specific technical assistance sessions. Affordable Housing Zoning Code Amendments. Beginning in September 2023, City Council considered several regulatory changes to the City's Zoning Code with the goal of increasing the supply of housing, improving the diversity of housing types, and encouraging affordability. Changes included allowing duplex and attached single-family uses throughout all lower density single-family residential zones, modifying design standards to reduce the cost of construction, allowing accessory dwelling units in more circumstances and locations, increasing the allowable number of bedrooms per dwelling outside of the University Impact Area, and allowing regulatory bonuses such as increased density and no parking minimums for affordable housing units. All changes were 10 identified as standards that could be adjusted without additional study given the City's current planning framework. The City is expected to adopt amendments shortly after this application is submitted. Long -Range Planning. The City also identified a need to update the City's Comprehensive Plan in order to achieve Council's goals of greater density and a variety of housing types in the community. To that end, City staff is beginning to develop a request for proposals for a Comprehensive Plan update to kick off this multi-year endeavor. The outcome should be a revised document that addresses current regulatory barriers and provides a vision and goals that reflect the current views of the community. In addition, the City has actively sought to increase the number of affordable housing units through other means. The Iowa City Housing Authority (ICHA) administers a total of 1,595 vouchers, 202 of which have been secured since 2019. Many of these are specialty vouchers serving households with significant barriers to sustaining housing, including those experiencing homelessness and/or domestic violence. Even though the ICHA is a division of the City, ICHA vouchers serve households throughout Johnson County, Iowa County, and Washington County north of Highway 92. As of January 4, 2022, 954 of total active vouchers or 60% were utilized in Iowa City. ICHA also manages and maintains 86 public housing units and 16 additional publicly owned housing units in Iowa City. The City also uses local funds and federal pass- through funds including Community Development Block Grant (CDBG), and HOME to leverage additional support for low- and moderate -income households. Furthermore, the City uses ARPA funds to support housing activities. It recently allocated Shelter House, a local nonprofit providing emergency shelter and permanent supportive housing services, $1.1 million for a 3 -year pilot project. The funds help pay for a full-time Coordinated Entry specialist, two Housing Stability specialists who help households research and secure housing, and two Eviction Prevention specialists who collaborate with Iowa Legal Aid to keep people housed. Funds also supplement the RentWise program to educate renters on all aspects of a successful rental experience and expand the Landlord Risk Mitigation program which incentivizes landlords to accept households experiencing barriers to housing. Together, these actions demonstrate the City's commitment to increasing housing production that is affordable to low- and moderate -income populations, as well as preserving housing affordability, improving access to affordable, accessible housing in high opportunity areas, and investing in underserved communities. However, the City still has a long way to go to address the need, including several identified barriers to affordable housing that must still be addressed. Iowa City's Acute Demand for Affordable Housing Like many growing metropolitan areas across the country, the lack of affordable homes for Iowa City's residents continues to present a significant problem despite recent actions taken by the City. These issues have the most profound impact on low- and moderate -income households, though they affect all households. The acute demand for affordable housing shows up in nearly every metric, but especially in those relating to cost and income. As a result, the City proposes using grant funds to primarily address needs in Iowa City, which HUD has identified as a Priority Geography. However, several activities serve the broader geography of Johnson County. 11 Restricted Housing Supply One of the primary factors affecting housing affordability in Iowa City is continued growth due to a great quality of life, the University of Iowa, and the strong economic base provided by the University of Iowa Hospitals and Clinics. The 2020 population for Iowa City is 74,828 with a projected population of just over 85,000 in 2030, an increase of 10,240 residents. At the same time, the population of the urbanized area is expected to increase by nearly 20,000 residents. To meet this projected demand, the metro will need to add several thousand new housing units, of which an anticipated 4,600 are needed in Iowa City. However, continued growth strains housing affordability, especially for lower income households, when the demand for housing is not met by an adequate growth in the housing supply. This has become especially problematic in recent years. From 2020 through 2022, the City only issued building permits for 851 dwelling units or approximately 284 dwelling units per year. This satisfies approximately 62% of the estimated increase in demand for housing based on anticipated growth. While the number of dwelling units permitted increased slightly in 2022 compared to 2020 and 2021, the City is still seeing fewer units permitted than before the pandemic. This gap between supply and demand leads to increased competition, rising rental prices (especially in high -demand neighborhoods near the university), and higher sales prices. As a result, lower income households can be priced out of the city. Incomes, Housing Costs, and Housing Cost Burden Iowa City also has relatively low incomes compared to its housing costs. Iowa City's median household income was $51,925 in 2021, but 31% of households make less than $30,000. There is often the misconception that Iowa City has lower incomes solely due to university students who may have parental support, financial aid, or share living expenses with other students. However, there are many non -student households with lower incomes that continue to struggle to afford housing. Approximately 7,600 households are under the age of 25, which includes most undergraduate student households. Of households over the age of 25, 20% still make less than $30,000 and another 13% make less than $50,000. Excluding those enrolled in undergraduate or graduate programs, more than 5,500 persons or 13% of the population still experiences poverty. These are all residents negatively affected by the City's housing market. Despite lower incomes, Iowa City's housing remains stubbornly expensive. In 2021, the median gross home value was $230,700 dollars, which is 4.44 times its median income. This number is up 21% from 2016, partially due to the low homeowner vacancy rate of 1.6%. (2016 and 2021 5 - Year ACS). However, recent data indicates even higher prices for homes that are available for purchase. The Iowa Association of Realtors listed the median sales price in 2022 for Johnson County at $350,000 for detached single-family homes, up 10% over the previous year, and the median sales price for townhomes and condominiums at $240,000, up 11%. At the same time, there were fewer than 2.5 months of inventory available at the end of the year. As a result, 22% of homeowners with a mortgage spend more than 30% of their income on housing. This makes it very difficult for fust -time homebuyers and those with limited incomes to establish themselves in the market. 12 At the same time, rents in Iowa City are high and are constantly increasing, especially near the university. In 2021, Iowa City's median gross rent was $1,030 dollars, up 18% from 5 years earlier (2016 and 2021 5 -Year American Community Survey). The 2023 Fair Market Rent is even higher at $1,127 for a two-bedroom unit and $1,602 for a three-bedroom unit which requires incomes exceeding $45,000 and $64,000 respectively to be considered affordable. At the same time, the 2021 City-wide rental vacancy rate was 4.9% but tracts near campus have rental vacancy rates as low as 1.6%. Due to these factors, approximately 61% of renters in Iowa City spend more than 30% of their income on housing costs, while 37% spend more than 50% of their income (2021 5 -year ACS). These high rates of cost -burdened and extremely cost -burdened households have a profound impact on those living in the City. Faced with high and rising housing costs, households with lower incomes are forced to make choices, including staying in current housing and cutting back on other critical necessities, consolidate housing with other households (which can lead to overcrowding), moving more frequently or to lower quality housing, moving to less desired neighborhoods that are further away in exchange for longer commutes, or losing housing altogether. Geographic Scope HUD identified Iowa City as a priority geography with a Housing Problems Factor of 0.38 in its PRO Housing List of Priority Geographies, considerably higher than the State Threshold of 0.31. This means that approximately 38% households who make up to 100% of the area median income experience a cost burden of at least 50%, overcrowding, or substandard housing, the 13'' highest rate in Iowa out of 1,008 designated places. Of these housing problems, housing cost burden tends to be the most severe. The City's proposed activities will remove barriers to housing production and directly assist low- and moderate -income households in Iowa City Limits who experience the most acute demand for affordable housing. However, Iowa City is part of a larger housing market. While funds will primarily serve Iowa City, certain activities including those administered by the Iowa City Housing Authority focus on the broader region which shares in many of the same housing affordability problems. HUD also identifies Johnson County as a priority geography with a Housing Problem Factor of 0.31 compared to the State Threshold of 0.23. This is the highest Housing Problem Factor of all counties in Iowa and is 247 out of 3,220 counties in the nation. For this reason, all changes to housing policy that result from grant -funded activities will consider the overall housing needs of the region to avoid unintended consequences such as land developers and homebuilders adjusting where they develop, the type of housing they produce, or the price or rent of finished homes due to the regulatory environment of different jurisdictions. Key Barriers to Producing and Preserving Affordable, Accessible Housing Following many of the City's recent efforts but especially the Affordable Housing Zoning Code Amendments currently being considered, several previously identified barriers to affordable housing have been addressed. These include most regulatory obstacles that are possible to accomplish under the currently adopted Comprehensive Plan, such as encouraging a diversity of 13 housing types in lower density zones, enabling small lot development, and providing regulatory incentives for affordable housing. However, a number of barriers that have been identified by staff and the public still exist which have led to the City's acute demand for affordable housing. Many of these contribute to the inadequate supply of housing in Iowa City. Key Barrier #1: Zoning Regulation and Procedure One factor that influences housing choice and supply, and therefore the cost of housing, is zoning. This tool helps implement the City's Comprehensive and District Plans by providing rules for how land can be developed and used, including what structures can be built where and how they may be designed. The City's Zoning Code, initially adopted in 2005, still contains a few outstanding regulatory barriers that continue to restrict housing opportunity and limit housing supply. These have not been addressed yet due to the additional study required to fully understand the scope, public support, and magnitude of changes. As a result, they have been on the City's work list for years but not executed due to the associated costs. The City's minimum parking standards are one such barrier that must be addressed. High parking standards can provide an obstacle to affordable housing for several reasons. First, parking spaces are expensive, especially in structured parking garages, and can significantly increase overall construction costs which are often passed on to renters or homebuyers. They also limit the amount of housing that can be built on a piece of land which restricts available housing, especially in downtown and neighborhoods near downtown where parking requirements have been used to indirectly restrict student rentals. Parking standards can also lead to inefficient use of space and resources due to large areas dedicated to parking rather than housing or other amenities and additional costs for maintenance and security. Finally, excessive parking requirements can encourage car ownership which increases the financial burden on residents, even in areas well -served by public transportation, due to farther distances that make other modes of transportation infeasible. Staff often hears that on-site parking regulations in Iowa City have many of these effects, including reduced housing production. These impacts especially affect students and low-income individuals and families. Another issue identified in adopted plans is that relatively few areas of the City are zoned for multi -family uses, even where it would be supported by the Comprehensive Plan. The 2019 Fair Housing Study directly notes that many residential developments require rezonings, but that the process of rezoning acts as a barrier to fair housing choice and housing affordability, especially for higher density housing. This is because the discretionary land use entitlement process can lack predictability. Of particular concern are cases where the adopted land use vision clearly envisions redevelopment or multi -family housing but neighborhood opposition results in the denial of rezonings. As a result, developers either forgo working in Iowa City or resort to lower density single-family zones to minimize public opposition, even where higher densities are appropriate. This leads to fewer housing units produced compared to what City planning documents would anticipate. Key Barrier #2: Land Use Policy 14 Another factor that can act as a barrier to housing affordability are the adopted policies outlined in the City's Comprehensive Plan. The Comprehensive Plan, including its component District Plans, is a strategic document that outlines the long-term vision and goals for the City's physical, social, economic, and environmental development. The Plan serves as a blueprint for guiding land use, infrastructure, and policy decisions. However, it must balance multiple goals that can at times appear to come into conflict and that change in scope and importance over time. As a result, it is essential to regularly revisit the plan to ensure it aligns with the goals and priorities of the community. This is especially true given the City's recent resolve to fight the housing crisis. The Comprehensive Plan that is currently in effect, IC2030, was adopted in 2013. The current plan includes general goals about providing housing for all members of our community and strategies to enhance housing affordability. As a result, the City been able to complete many tasks in support of affordable housing as noted above. There are also several adopted District Plans which are sub -parts of the Comprehensive Plan. Generally, the policy direction in District Plans provides more specific guidance in those areas of the City. However, many of these plans are significantly older than the Comprehensive Plan with some being initially adopted before the year 2000. This complicates the ability of the public to understand the City's policy direction, especially where the Comprehensive and District Plans are less aligned. It also means that the land use vision for each district does not use consistent future land use categories and that a more piecemeal approach is required to update policy. For example, the Form -Based Zoning Code adopted in 2021 must be applied on a District Plan by District Plan basis with only two being updated thus far. This makes it more difficult to ensure the plan aligns with current priorities. In addition, the plan tends to prioritize lower density development which can have exclusionary effects throughout the community. The future land use map identifies areas as appropriate for rural housing densities, while most residential areas identified are shown as appropriate for development that is 2 to 8 dwelling units per acre. Some older District Plans show areas as exclusively appropriate for single-family uses. At the same time, few areas of the Future Land Use Map are shown as appropriate for multi -family even though the text notes that all areas should consider the inclusion of a mix of higher density uses, especially along major arterials, intersections, and commercial centers. This makes rezoning to multi -family zones, already subject to unpredictable entitlement processes, even more challenging. Overall, these factors have a negative impact on the supply of housing in the community. Key Barrier #3: Local Development Capacity The number of lots created in Iowa City has generally decreased in recent years. From 2020 to 2022, City Council approved final plats with residential components accommodating only 431 dwelling units, or about 144 units per year. This is just over 54% of lots platted over average annual amount from the previous 30 years and is well below the amount needed to satisfy current demand. 2022 alone marked the lowest number of single-family lots platted since at least 1990 with the exception of 2010. At the same time, the supply of vacant lots has continued to decline as the construction of new units outpaces the creation of new lots. Based on recent development trends, the supply of development -ready vacant lots is expected to last as follows: • 2.0 years for single-family units 15 • 2.4 years for duplex units • 1.8 years for multi -family units (though redevelopment can extend this timeframe) Similarly, annexations have decreased over the past decades, even as infrastructure capacity remains adequate for growth and areas intended for growth have been identified. Overall, this indicates a deficit in the capacity and/or desire of existing local developers to build housing in Iowa City, though additional data is needed to understand how these trends interact with the regional housing market. At the same time, there are only a limited number of local affordable housing developers. The Housing Fellowship, a Community Housing Development Organization, is one of a few private, non -profits which builds affordable rental housing in Johnson County. Another local non-profit, Shelter House, is primarily known for its emergency shelter and related services provided to the community's unhoused population, though it has recently developed two permanent supportive housing projects totaling 60 dwelling units. Meanwhile, the Iowa Valley Habitat for Humanity focuses on providing affordable ownership opportunities in the community. While there are other affordable housing providers as well, they typically focus on more specialized populations such as persons with disabilities, and most do not actively develop housing projects. While they all do amazing and important work, the local capacity to develop new affordable housing from the ground up tends to be very limited. As a result, affordable housing projects, especially those utilizing LIHTC, are often taken on by private, out-of-town developers that are not focused on providing a more permanent benefit to the City. These factors all point to a need for additional development capacity at the local level, especially when it comes to the creation of affordable housing units. To address this, there needs to be a concerted effort not just within Iowa City, but within the broader region. Key Barrier 44: Low Incomes Relative to High Housing Costs Most barriers noted thus far are primarily related to factors that lead to an undersupply of housing. However, there is still also the overarching issue of a relatively high number of households that have lower incomes. This problem is especially pressing given the challenges related to increasing construction costs. High interest rates, a severe labor shortage, and supply chain issues all increased the price of new housing over the past couple of years. These, in addition to supply-side issues, exacerbates the housing crisis for households with lower incomes. The City tries to address affordability by raising wages, but does not have much control over these factors due to state pre-emption. As such, the City seeks to address this barrier as follows: 1. Long -Term: Increase the supply of housing, especially permanent regulated affordable housing, such that a more balanced market is reached and competition for housing is reduced to the extent that prices become more stable and affordable. 2. Short -Term: Directly reduce the cost of housing by providing funds to households to help them obtain and maintain stable, affordable housing, and by providing incentives directly to those that provide affordable housing. 16 Although the City cannot control many of the factors that lead to unaffordable housing, the City strives to address the problem from all angles. This grant would be a major leg up in jumpstarting many of the City's neat plans to continue addressing these barriers. 17 Exhibit D: Soundness of Approach The City of Iowa City's PRO Housing grant application seeks to address a critical issue within our community — the acute scarcity of affordable housing. As noted in Exhibit C, the City has identified and addressed many persistent barriers that hindered the supply of affordable housing and exacerbated housing insecurity for residents over the past several years. However, several barriers still exist. The City's proposed project incorporates numerous avenues to address these barriers by seeking to overcome long-term trends while also providing shorter -term relief. Project Vision The overarching vision of the project is to help ensure Iowa City is a place that offers attractive and affordable housing for all people — housing that is the foundation of healthy, safe, and diverse neighborhoods throughout the City. The ultimate vision is a city where affordable housing is not a scarce resource but a fundamental right. To accomplish this vision, the City proposes three sets of activities to mitigate the remaining barriers to affordable housing discussed above while successfully administering and implementing the grant funds: 1. Planning -Related Activities 2. Housing -Related Activities 3. Administration -Related Activities Proposed activities build on the success of previous efforts in support of affordable housing and are designed to avoid the shortcomings of past projects by incorporating community engagement and ensuring the long-term effect. The activities largely complement recent Zoning Code Amendments to improve housing choice, increase housing supply, and encourage affordability which addressed several barriers to affordable housing identified in the 2022 Affordable Housing Action Plan and 2019 Fair Housing Choice Study. However, proposed activities, especially those that are planning -related, will utilize much more extensive public outreach as part of process, made possible by grant funding. This will help ensure outcomes are community -driven and reflect the genuine needs and aspirations of the City's residents. Direct -housing -related activities are also designed to result in a balanced and sustainable approach that ensures the perpetual availability and expansion of affordable housing units over time. In essence, the project scope benefits from recent experience in removing barriers while striving for a more comprehensive, community -centered, and sustainable approach to affordable housing that is poised for lasting impact. With the support of this grant, the City aims to turn this vision into reality. The following sections provide detail on all proposed activities. 1. Planning -Related Activities Planning -related activities involve strategically evaluating and mitigating existing regulatory, and procedural capacity obstacles. These barriers range from restrictive zoning to a better understanding of how to enhance local development capacity. One of the most important activities is to systemically review and update the Comprehensive Plan to ensure it meets the needs of the community today in light of changing circumstances such as continued growth, a T restricted housing supply, changing demographics, and shifting metropolitan transportation and housing patterns. All planning -related activities involve an in-depth engagement of experts and community stakeholders. As a result of these efforts, the City hopes to devise innovative solutions that will streamline the development of housing and lead to more affordable, efficient, and cost-effective housing opportunities throughout the region over the long-term. Planning - related activities are comprised of the following. a. Parking Study & City -Initiated Revisions to Zoning Code Parking Standards One of the most straightforward barriers to the production of affordable housing to address is reviewing and modifying the minimum parking standards required by the City's Zoning Code. Doing so will help directly lower construction costs for new housing and promote more sustainable urban development by producing development patterns that are less car dependent. Changes to parking standards can be adopted under the existing Comprehensive Plan but will fust require a comprehensive parking study to evaluate the extent to which parking standards should be modified (permitted by 24 CFR 570.205(a) (3)(vii)). As such, this activity would begin with a comprehensive evaluation of parking supply and demand downtown, in neighborhoods near downtown, and at typical use categories. Following the study, staff will recommend a Zoning Code text amendments to right -size the City's parking standards (permitted by 24 CFR 570.205(a)(4)(v)). This process will require time to develop appropriate standards and bring them through the public adoption process. Complicating adoption of new standards are the possible ripple effects. For example, parking standards have been used to indirectly limit density near downtown. The City must ensure that redevelopment in inappropriate areas does not suddenly become attractive to developers after standards are modified. b. Regional Housing Study One shortcoming to current efforts is that they evaluate trends within City Limits but there is no holistic, regional understanding of the area housing market. Collecting regional housing data would help provide a better understanding of the interaction of different jurisdictions' policies and requirements. It is also integral to guiding informed policy and planning decisions. As such, another important activity to help the City address its barriers would be to conduct a regional housing study (permitted by 24 CFR 570.205(a)(3)(i)). A comprehensive assessment of the region's housing needs would help assess exactly what are the gaps in the housing market, how the policies of different neighboring jurisdictions interact, and how the City can best position itself to meet its share of regional affordable housing needs. It acts as a policy basis to work with other communities to meet their own regional housing needs as well, and serves as a basis to guide the investments of the Iowa City Housing Authority which serves the Counties of Johnson, Iowa, and part of Washington. While the City would spearhead the regional study, it would also encourage participation by surrounding municipalities which can serve as the jumping-off point for additional regional cooperation, such as forming a HOME Consortium. This activity will also further help guide all other activities which will be funded using the PRO Housing grant. 19 c. Comprehensive Plan, Housing and Land Use Elements Another barrier to affordable housing noted above is the City's existing land use policies embodied in its Comprehensive and District Plans. Many aspects of the plan continue to be relevant, but the document was adopted a decade ago with several District Plans being significantly older. As such, the Plan needs to be updated to reflect current circumstances and priorities, including the need to address the present housing crisis. Consequently, one of the most crucial activities of this grant would be to help fund a much- needed substantial update to the Comprehensive Plan, specifically its Land Use and Housing elements (permitted by 24 CFR 570.205(a)(1)). This includes an overhaul of the future land use map, along with exploring how to address the complications that arise from the City's current District Planning framework. While this activity is focused specifically on updates to the housing and land use sections of the plan, other elements of the Comprehensive Plan (such as transportation and economic development) will also be addressed at the same time. However, they are not being considered as part of this grant and will be separately funded. By investing in a revised Comprehensive Plan, the City ensures its development strategies are closely tied to the community's current priorities and development is well situated to address existing disparities and prepare for an uncertain future. For this reason, it will be essential that the public process uses varied methods of engagement to drive participation to be more reflective of the city's demographics. This includes actively engaging underestimated groups in the process that may benefit from policy changes. In addition, the Plan needs to incorporate a more regional perspective, especially as it relates to housing policy which is an issue that does not end at Iowa City limits. The City is fortunately to have long-standing extra jurisdictional agreements with surrounding communities, but a more thorough understanding of regional housing needs will help improve their continued implementation. Other proposed activities directly feed into this effort, especially the regional housing study. This update is also essential to lay the groundwork for comprehensively reforming the City's Zoning Code to better align with the community's increasing focus on climate action and resiliency, equity, and housing. This forward-looking and regionally minded approach allows the City to identify the demand and suitability for different housing types throughout the community. In the end, it will set the stage for a more flexible Zoning Code that can better adapt to evolving community needs and changing housing demands. d. City -Initiated Higher Density Rezoning The land entitlement process also acts as a regulatory barrier for many developers, especially those looking to building higher density and lower cost housing types. Consequently, the City intends to initiate a rezoning to allow higher density uses and increase the supply of more affordable housing types (permitted by 24 CFR 570.205(a)(4)(v)). These areas would be identified as part of the Comprehensive Plan update process and will reflect the market forces shaping the region based on the outcome of the regional housing study. A City -initiated rezoning process allows a more holistic and proactive approach to ensure areas intended for higher densities are appropriately zoned. Bringing this for adoption as a direct outcome of the updated 20 Comprehensive Plan helps ensure that proposed land uses are consist with the vision of the community and should help mitigate neighborhood opposition. In the end, proactively rezoning land will provide more predictability about areas that are acceptable for higher density development as determined through a public process. e. ICHA Feasibility Study for Housing Development Division The final planning -related activity is intended to help address the lack of local development capacity (in the case of local nonprofits) and interest (in the case of local for-profit developers), specifically for affordable housing projects. The goal is to explore the creation of a development arm for the Iowa City Housing Authority (ICHA), which is both a City department and serves as a regional housing authority for Johnson County, Iowa County, and a portion of Washington County. This study is especially important because lack of internal capacity is a major hinderance to the City's leadership on affordable housing projects. The fust step in this process is to determine the best course of action to develop a Housing Development Division (permitted by 24 CFR.205(a)(6)) that would directly carry out affordable housing activities throughout the region such as the pilot affordable housing development project noted below. The primary intent of this activity is to identify the best way to build internal capacity and design a self-funded division that can utilize development fees and rental income associated with future affordable housing projects. By directly constructing affordable housing, this strategic move will grant the City autonomy to meet its housing goals more swiftly and effectively and reduce reliance on external developers. It can also operate on a regional level since it will be affiliated with the ICHA. Over the course of this study, an alternative legal structure other than a division in the ICHA may be found to be more appropriate, such as the creation of an ICHA- or City -led and funded nonprofit development corporation. The long-term goal is the same regardless: to build local capacity that will help spur the development of local, permanent affordable housing. Note that implementation is not included in this activity. Rather, the proposed pilot affordable housing development project will provide the fust opportunity to fund a position through development fees, in addition to providing ongoing rental income to support property management. 2. Housing -Related Activities Housing -related activities focus more directly on incentivizing the creation of affordable housing, increasing the supply of housing, and on relieving the impacts of the current housing market on low-income households. These activities are also designed to empower the City and build capacity to take a more proactive role in the direct development of permanent affordable housing by funding a pilot affordable housing development project. The goal is that these activities will provide affordable housing units and experience and will help cover the cost of future staffing needs to continue these activities. a. Accessory Dwelling Unit Incentive Program 21 The fust housing -related activity is the establishment of a program to incentivize and promote Accessory Dwelling Units (ADUs) (permitted by 24 CFR 202(a)(1). The City has recently focused on encouraging ADUs as one of several ways to help meet the need for additional housing, especially since they tend to have lower construction costs than other housing types that are typically larger. The City is in the process of updating the ADU regulations within our Zoning Code to make it easier for property owners to build them. However, it became apparent during public outreach that one of the biggest barriers to their construction was the absence of incentives to help property owners build them. As such, the City intends to provide funding these types of housing units to help directly increase the supply of housing, improve lender familiarity with these housing types, and provide experience in promoting ADUs. The incentive program is intended to empower households to build ADUs on their property for the purpose of providing housing opportunities that are more affordable. Funds may be provided as a loan, a grant, or a combination thereof, depending on what would be required to make an ADU cash flow for the owner. By increasing the supply of housing, specifically housing that tends to be smaller and more affordable, the program will serve as an excellent tool to enhance understanding of ADUs throughout the community, to increase the supply of ADUs, and to gently add density in a way that maintains neighborhood character. The City will also explore ways to make the program self-sustaining depending on the structure of incentives necessary to effectively enable the construction of ADUs. b. Housing Counseling In addition to providing direct assistance for ADUs, the City intends on providing housing counseling services as a proactive way to help households navigate the pressing housing challenges that they face (permitted by 24 CFR 570.201(e)). This activity specifically addresses barriers affecting lower incomes households by helping them through the challenging market in several ways. First, it equips households with the knowledge and tools necessary to make informed choices that align with their financial situations and housing needs. Second, it can help individuals improve their credit scores and financial stability, which are essential for securing affordable housing options and favorable mortgage terms. Finally, it educates households about fair housing practices which can help mitigate discrimination and housing disparities, making housing opportunities more accessible to marginalized communities. Funding for this activity will specifically help the City become certified and hire a part-time housing counselor. The first step is to establish the ICHA as a Certified Housing Counseling Agency pursuant to 24 CFR 214. Grant funding would then allow the City to offer valuable resources and guidance to individuals and families seeking affordable housing options, including those receiving rental and homeownership assistance. Programming may encompass a range of services, including financial counseling, information on rental and homeownership assistance programs, guidance on homeownership, educational workshops, and resources to help residents understand their rights and responsibilities. Once the program is established and PRO Housing funding is exhausted, the City hopes to continue providing housing counseling services. c. Immediate Housing Assistance Program 22 The City recognizes that many other activities are intended to address longer-term priorities such as development capacity and the overall supply of housing. However, a need to address shorter - term barriers relating to income and household costs still exists in the meantime. This leaves many renters in tenuous positions until new affordable housing is built, especially as severe housing cost -burden remains an untenable situation for many. As a result, the City proposes to establish an immediate housing assistance program to help those who are otherwise at risk of becoming unhoused through a combination of security deposit assistance and temporary rental assistance (as permitted by 24 CFR 570.201(e)). The goal is that as permanent affordable housing units are built, those receiving these funds could be transitioned into a more permanent and sustainable situation. As such, it can act as a feeder program for other units created. Unlike most other aspects of the proposed grants, this aspect of the program is focused on short- term barriers, such as keeping residents in housing. However, it is still expected to have a long- term impact by supporting the success of other activities and providing funds to those most in need which balances addressing the immediate need with longer-term gains. Activities are expected to be available on an emergency basis for four years during the grant period. It is anticipated that this program will be developed and carried out by City staff, though the City may contract out administration to other agencies that have historically provided these services. This program will also be supplemented by other City funds dedicated to these goals, including the City's current Security Deposit program. However, additional grant funds will allow the City to substantially expand the scope and number of people assisted. d. Pilot Affordable Housing Development Project The most significant housing -related activity focuses on the need for more local development capacity, specifically by building experience in developing permanent affordable housing. As such, this proposed activity will allow ICHA Housing Development Division (or alternative legal arrangement) to undertake its fust direct development project and begin producing income for its long-term success. For the purpose of this application, the City assumes that the ICHA will undertake the development activities. Specifically, this activity will allow the construction of approximately 24 permanent affordable dwelling units to be administered by the new ICHA division (permitted by the PRO Housing program waiver of 24 CFR 570.207(b)(3)). The project will be carried out by new staff, including a full-time Senior Housing Developer position which would be funded by development fees, along with a part-time Housing Program Assistant which will be funded by ongoing rental fees. The affordable housing units will remain affordable in perpetuity and will be occupied by residents who are either assisted through the proposed immediate housing assistance program or the lengthy waiting list for the ICHA. Depending on the feasibility study, it may become apparent that a larger project (or additional tertiary projects) will be needed to provide adequate cash flow to create a self-sustaining division. As a result, the City may find funds to supplement the pilot project using a combination of City -owned land, money available for affordable housing projects, and other resources not yet identified based on viable development opportunities. Over the long-term, the pilot project will help build local and internal affordable housing capacity and provide permanent affordable 23 housing units in partnership with the ICHA. While the pilot project will be focused within City of Iowa City limits, the division will ultimately have a regional focus that matches the boundaries of the ICHA, including Johnson, Iowa, and part of Washington Counties. 3. Administration -Related Activities The final set of activities are related specifically to ensuring successful administration of the PRO Housing grant. This includes general management of grant funds, activity oversight and coordination, providing public information about PRO housing activities, preparing budgets and schedules, preparing reports and other HUD -required documents such as the PRO Housing Action Plan, and monitoring proposed activities to ensure compliance with all requirements. The proposed budget for administration -related activities would allow the City to hire a full-time Associate Planner — Grant Specialist to oversee all grant administration requirements. Geographic Scope The primary geographic scope of the proposed activities will be Iowa City. As such, most planning and development activities are specifically focused on the City's jurisdictional limits, including proposed activities related to the City's Comprehensive Plan and Zoning Code. These changes are expected to affect the entirety of the City by removing exclusionary barriers from high -opportunity neighborhoods while simultaneously expanding opportunity in underserved communities. No individual neighborhoods are targeted for development or redevelopment through this process, but the City does have affordable housing funds to be used within the Riverfront Crossings District just south of downtown and has recently focused on high growth areas to the southwest, south, and east of the City. These additional resources may affect the focus of the pilot affordable housing development project. However, Iowa City operates within a larger housing market that includes Johnson County and other communities in the City's urbanized area including Coralville, North Liberty, Tiffin, and University Heights. As a result, several activities will have a more regional scope, including the proposed regional housing study and capacity building efforts for the ICHA. While the City will encourage all surrounding jurisdictions to participate in these efforts, their partnership will not be required due to the way PRO Housing funds will be used. Key Stakeholders and Public Engagement The City is proposing activities that are the product of years of public engagement which began with the City's 2016 Affordable Housing Action Plan and were reinforced through subsequent planning efforts. Many specific activities are based on comments received during general outreach to community members, affordable housing developers, homebuilders, and realtors conducted as part of recent planning processes for the 2022 Affordable Housing Action Plan, the FY23-FY28 Strategic Plan, and the City's Affordable Housing Zoning Code Amendments. For example, the Accessory Dwelling Unit Incentive Program was an idea directly incorporated into proposed activities from the Affordable Housing Zoning Code Amendments. However, the specific proposal was developed by Community Development, Urban Planning, and Iowa City Housing Authority leadership and staff who would be responsible for carrying out activities. 24 Staff published the draft application materials on October 2, 2023 on its website for public comment and notified the public of the 15 -day comment period and public meeting in the Press Citizen, a local newspaper. All public comments and staff responses are included in Attachment A. City Council held a public meeting regarding the draft application on October 17, 2023, during which additional feedback was received. After the hearing, Council empowered staff to apply for the grant and authorized the use of matching funds. The grant application also takes into account input received as part of the City's recent affordable housing efforts, as well as the City's regular planning engagement processes for federal funding. Should funds be awarded, the City plans to continue making public input a primary component of the planned activities. These methods of obtaining public input, including future public input, are detailed below. Speck Public Input Regarding Affordable Housing The proposed activities are primarily based on existing policies and goals in plans and studies reviewed and adopted by Council over the course of several years (beginning in 2016). More recent efforts started in 2022 with the adoption of an updated Affordable Housing Action Plan and 5 -year Strategic Plan. These plans were built on nearly a year of data review and community engagement, including the following: • American Rescue Plan Act citywide survey with over 1,800 responses. • General outreach activities at Wetherby National Night Out, Fairmeadows Party in the Park, and CommUnity Crisis Services, Iowa City Compassion Food Bank distributions, and several listening posts held by members of City Council. • Meetings with targeted stakeholders such as the Disability Services Coordinating Committee, University of Iowa Student Government leadership, Catholic Worker House, Agency Impact Coalition, Affordable Housing Coalition, Open Heartland, and community and economic development organizations. • Comments from the Greater Iowa City Area Home Builders Association, Iowa City Area Association of Realtors, and the Housing Action Team of Johnson County Livable Community for Successful Aging Policy Board. • Development by an Affordable Housing Steering Committee including representatives from the following industries and organizations: residential construction, the Iowa City Human Rights Commission, the Housing Fellowship (a Community Housing Development Organization), the Johnson County Affordable Housing Coalition, Iowa Valley Habitat for Humanity, Shelter House, the Local Homeless Coordinating Board, Horizon's Financial Wellness Center, the Housing Trust Fund of Johnson County, along with financial institutions, property managers and developers, and other nonprofits. In addition to input specifically considering affordable housing needs, the City also received feedback as part of its recent Affordable Housing Zoning Code amendments to improve housing choice, increase housing supply, and encourage affordability. In total, the City heard from the public, neighborhood organizations, realtors, builders, and nonprofits through correspondence, 25 two open houses, and several public meetings and hearings. The City will also hold another public hearing, anticipated on November 5, 2023, to consider changes to ADU standards. Regular Public Engagement Processes In addition, the City regularly solicits input in compliance with its adopted Citizen Participation Plan as part of the Consolidate Planning process. This includes resident participation in the Housing and Community Development Commission (HCDC), a 9 -member group appointed by City Council to assess the City's community development needs for housing, jobs, and services for low- and moderate -income residents. HCDC meets monthly and holds annual public meetings to review policies and programs of the Neighborhood Services Division and the Iowa City Housing Authority and provide recommendations, to monitor CDBG and HOME projects, and to facilitate public input into these and other programs. The public is invited to participate in all meetings, and all meetings and plans derived from these processes are available on the City's website. The City also regularly consults with a variety of public and private entities as part of this process, including current and past recipients of CDBG and HOME funding. This regular input was also essential to informing proposed grant activities. Furthermore, the City participates in numerous coalitions which provide a broader understanding of the housing situation in the region and help enhance coordination. One example is the Johnson County Local Homeless Coordinating Board which is comprised of nonprofits such as Shelter House, Iowa City's primary homeless services provider, the Domestic Violence hitervention Program, the Hawkeye Area Community Action Program, and others involved in addressing homelessness such as the Veterans Administration, local school district, and Johnson County. These organizations are consulted as part of the Iowa Balance of State Continuum of Care application process facilitated by the Iowa Council on Homelessness. The collaborations have led to the creation of eviction prevention clinics and increased support for coordinated entry to manage increased need due to the pandemic. The City also regularly attends meetings by the Affordable Housing Coalition to share information and solicit input regarding proposed activities, along with industry groups such as realtors, homebuilders, and property managers. Ongoing Public Input Should funds be awarded to the City, public input will be an integral component of proposed activities. The Comprehensive Plan land use and housing elements will include an extensive public outreach process to ensure the vision and goals of the plan align with public attitudes and relevant data, including a combination of public and focus group meetings, interviews, and surveys. The proposed regional housing market and parking studies will also require considerable consultation with local stakeholders familiar with these specific topic areas. In addition, any large-scale changes to City Code will include a public planning process. Similarly, the public will be able to weigh in on proposed development activities as part of the regular processes used by City Council to make decisions. These public engagement activities will help build support and engage the community to result in the best outcomes. Affirmatively Furthering Fair Housing 26 All proposed activities will affirmatively further fair housing in Iowa City by addressing barriers identified in Iowa City's 2019 Fair Housing Study. 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 diversity in price points, housing types, and locations that would facilitate equal access to housing across the City. Ensuring a diversity of affordable housing is available in a range of locations and types to helps 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. Many of the proposed activities help directly address this barrier. Rezoning for higher densities in areas deemed as appropriate and incentivizing accessory dwelling units will directly lead to a wider variety of housing types in areas that otherwise contain lower density products (most likely detached single-family homes). Other strategies to address this fair housing barrier include lowering the cost of housing and investing in affordable housing. Reducing parking requirements will reduce the cost of housing, while studying and implementing an affordable housing pilot project will lead to additional investment in permanent, affordable housing. Taken together, these activities align with the City's existing fair housing policy direction. Increasing Education and Outreach In addition, proposed housing counseling activities will boost fair housing. Based on public input during the Fair Housing Study, many residents lack awareness about rights under fair housing and civil rights laws. This can lead to under -reporting of discrimination, failure to take advantage of remedies under the law, and the continuation of discriminatory practices. In addition, many individuals may not be aware of potential awareness or support that is available when moving. In those cases, having quality information related to housing and affordability, available services, and organizations that serve potential tenants, can help those moves be more successful. Other relevant info that should be shared include listings of affordable housing opportunities or local landlords; mobility counseling programs; and community outreach to potential beneficiaries. Overall, ensuring access to information about housing programs and neighborhoods through housing counseling helps facilitate fair housing goals. The focus on updating the Comprehensive Plan to place equity, climate change and resiliency, and housing at its core, address existing disparities, and prepare for the future will also help address this barrier. As part of that planning process, the City intends to have an in-depth public process that uses varied methods of engagement to drive participation to be more reflective of the city's demographics and to ensure underestimated groups are actively engaged in the process. Facilitating an inclusive process, especially one that helps unrepresented individuals guide policy 27 direction, will lead to a vision for the community that better reflects the desire of residents and helps identify other potential issues that may otherwise be missed. This approach to updating the plan is another vital way the proposed activities will affirmatively further fair housing. Proposed Budget and Timeline While the City regularly budgets for affordable housing projects and activities, PRO Housing grant funding would expand the scope of what the City could achieve and accelerate the timeline for making many of its biggest changes it has considered. To that end, anticipated funding sources and expenses for the proposed activities are estimated to be as follows. Proposed Revenue PRO Housing Funds $5,600,000 City Affordable Housing Funds $2,850,000 Total Sources $8,450,000 Pro osed Expenditures 1. Planning -Related Activities a. Parking Study & City -Initiated Revisions to Zoning Code Parking Standards $250,000 * b. Regional Housing Stud $150,000 * c. Comprehensive Plan Update: Housing and Land Use Elements, including Future Land Use Ma $150,000 * d. City -Initiated Higher Density Rezoning $50,000 * e. ICHA Feasibility Study for Housing Development Division $50,000 * Subtotal $650,000 2. Housing -Related Activities a. Accessory Dwelling Unit Incentive Program $500,000 b. Housing Counseling $200,000 c. Immediate Housing Assistance Program $750,000 d. Pilot Affordable Housing Development Project $5,800,000 Subtotal $7,250,000 3. Administration -Related Activities Project Administration $550,000 Subtotal $550,000 Total Expenses $8,450,000 *Priorities for funding (see "Priorities Without Full Funding") Staff developed the proposed budget using several methodologies. Staff estimated planning costs based on current budgets for items that have scopes of work and on the cost of similar projects undertaken by other municipalities. Project delivery costs for City -initiated zoning code map and text changes are based on the staff time of recently completed major zoning code changes. M Similarly, housing -related public service activities such as housing counseling and the immediate housing assistance program are based on the staff time anticipated to establish and administer the programs during their period of operation, in addition to funding amounts based on experience funding similar programs. In the case of the Accessory Dwelling Units hicentive Program, it is based on providing $100,000 over 5 years to subsidize the cost of building 20-30 ADUs. In the case of the housing counseling activity, it is expected to pay for a 0.5 staff person in addition to the cost of accrediting the ICHA as a Housing Counseling Agency. The cost of the proposed pilot affordable housing development project is based on building a 24 - unit affordable housing building. Staff used the per unit multi -family costs ($241,643) allowed in urban areas under the Iowa Finance Authority's Workforce Housing Tax Credit program. As noted in the leverage section, the City may leverage existing land already in public ownership in support of this proposed activity depending on scope identified during the design stage. As such, this program may increase substantially without affecting the grant amount depending on the relative land cost in the area selected. This is also expected to include development fees which would be used to fund a full-time Senior Housing Developer position to oversee the creation of an ICHA Housing Development division and to carry out the pilot affordable housing development project. Administrative costs are estimated based on the cost of hiring a full-time Associate Planner — Grant Specialist position to administer the PRO Housing Grant for a period of 5 years. To ensure the project will be cost-effective and in-line with industry standards, the City will solicit bids for all external aspects of the project in compliance with City, State, and Federal requirements. This specifically pertains to the hiring of consultants and contractors. For internal projects, the City will track time for each staff person working on the project to ensure that project delivery is accurately reflected in the payment requests. Priorities Without Full Funding While full funding for the City's proposed activities would do the most to address the identified barriers to affordable housing, the City would prioritize certain aspects of the project over others in the event of a partial award of funds. In general, the City places the highest priority on activities that directly remove barriers to affordable housing and that position the City to address identified issues in the future. These would include planning -related activities, housing counseling, the Pilot Affordable Housing Project, and project administration identified above. As a result, the City could accept half of the requested PRO Housing funding ($2,850,000) and would match with up to $2,635,000 in City funds to supplement proposed projects. In such a case, staff would anticipate a revised budget where all planning -related and housing counseling activities remain at the funding noted above. However, the following changes would occur: • The City would be unable to fund direct assistance programs including the Accessory Dwelling Unit Incentive and Immediate Housing Assistance Programs. • The Pilot Affordable Housing Development project would decrease to $4.35 million, which would reduce the size of the project to 18 affordable units and negatively impact 29 the long-term sustainability of future City -led development projects due to reduced revenues intended to fund additional staff. Project administration would decrease to $285,000 due to the administrative cap, which would reduce the ability of the City to hire staff. The City could also accept the minimum PRO Housing funding award amount ($1,000,000), but that would have even greater ramifications on the long-term sustainability of proposed activities. In such an event, the City would provide a match of up to $2,075,000 to the ensure the success of funded activities. However, other funds previously identified for match would most likely be retained for the City's current Affordable Housing Fund uses. In this scenario, all planning - related activities can still be carried out. However, the following changes would occur: • The City would be unable to fund direct assistance programs including the Accessory Dwelling Unit Incentive and Immediate Housing Assistance Programs. • Housing counseling activities would need to be scaled back to $150,000 which would only allow for 3 years of housing counseling services (though the City should still be able to receive its Housing Counseling Agency certification). • The Pilot Affordable Housing Development activity would decrease to $2.175 million, which would reduce the size of the project to 12 affordable units and would further negatively impact the long-term sustainability of future City -led development projects due to reduced revenues intended to fund additional staff. • Project administration would decrease to $100,000 due to the administrative cap, which may result in the City being unable to hire additional staff to administer the grant. Overall, the City could still enact meaningful change with lower grant amounts. However, funding at the half or minimum amounts would not place the City in the best position to have a larger impact on minimizing barriers to affordable housing compared to a full -funding scenario. Project Timeline All proposed activities will begin prior to September 30, 2026 and be completed prior to September 30, 2029. Several activities will begin as soon as funds are awarded, though some depend on other work to first be completed. Specific timelines for each activity, including significant milestones and relevant sub -tasks, are noted below. Planning -Related Activities Parking Study & City -Initiated Revisions to Zoning Code Parking Standards. Reviewing parking standards will begin shortly after the Comprehensive Plan update is underway. Staff anticipates 12 months for the study, followed by 6 months to draft and propose changes to the zoning code. Significant milestones include: • Solicit bids for consultants: 2024 Q3 • Project initiation: 2024 Q4 • Study completion: 2025 Q3 • Zoning code text amendment adoption: 2026 Q1 30 Regional Housing Study. A regional housing study is intended to help inform the Comprehensive Plan and will occur concurrent with planning efforts. Staff anticipates putting out an RFQ immediately upon a funding announcement and completing the project 12 months after project initiation. Significant milestones include: • Solicit bids for consultants: 2024 Q1 • Project initiation: 2024 Q2 • Study completion: 2025 Q1 Comprehensive Plan Housing and Land Use Elements. Updating elements of the Comprehensive Plan will be one of the fust items. Staff anticipates putting out an RFQ immediately upon a funding announcement and completing the project approximately 18 months after project initiation. Significant milestones include: • Solicit bids for consultants: 2024 Q1 • Project initiation: 2024 Q2 • Draft plan completion: 2025 Q3 • Draft plan adoption: 2025 Q4 City -Initiated Higher Density Rezoning. Rezoning land to reflect a newly adopted future land use map will occur upon adoption of the new Comprehensive Plan. Staff anticipates approximately 6 months to identify suitable properties and prepare rezoning materials, followed by 3 months to adopt proposed changes. Significant milestones include: • Project initiation: 2026 Q1 • Rezoning adoption: 2026 Q3 ICHA Feasibility Study for Housing Development Division. Studying how the ICHA can implement a Housing Development Division is important to oversee the proposed Pilot Affordable Housing Development Project, so it must begin early in the grant period. Staff anticipates soliciting bids for consults early in 2024 with a goal of hiring a Senior Housing Developer position by early 2025. Significant milestones include: • Solicit bids for consultants: 2024 Q2 • Project initiation: 2024 Q3 • Study completion: 2025 Q1 • Hire Senior Housing Developer: 2025 Q2 • Implementation completed: 2026 Q1 Housing -Related Activities Accessory Dwelling Unit Incentive Program. Staff anticipates that development and establishment of the Accessory Dwelling Unit Incentive Program will take approximately 6 months and will be implemented over the course of 5 years. Significant milestones include: • Develop program: 2024 Q2 • Establish program: 2024 Q3 • Open applications: 2024 Q4 • Expenditure of project activity funds: 2029 Q3 (goal to make program self-sustaining) 31 Housing Counseling. Staff anticipates that becoming a Certified Housing Counseling Agency will take approximately 6 months, including training existing staff. New staff will be hired and trained after the City is certified. Housing counseling activities will be implemented over the course of 4 years. Significant milestones include: • Project initiation: 2025 Q2 • City certified as Housing Counseling Agency: 2025 Q3 • Begin providing housing counseling services: 2025 Q4 • Hire part-time Housing Program Assistant: 2026 Q1 • Expenditure of project activity funds: 2029 Q3 (City will continue program) Immediate Housing Assistance Program. Staff anticipates that development and establishment of the immediate housing assistance program will take approximately 6 months and will be implemented over the course of 4 years. Significant milestones include: • Develop program: 2025 Q2 • Open applications: 2025 Q4 • Expenditure of project activity funds: 2029 Q3 Pilot Affordable Housing Development Project. This activity will be one of the longest and will do the most to build capacity at the City. Staff has built in redundant time to ensure this activity can be completed prior to the end of the grant's performance period. In general, staff anticipates 3 months to solicit design funis, 9 months for design work, 9 months to establish entitlements, 18 to 24 months to construct the building. Staff also estimates approximately 3 months for lease up based on current waiting lists. Significant milestones include: • Hire Senior Housing Developer: 2025 Q3 • Solicit bids for consultants: 2025 Q3 • Initiate design work: 2025 Q4 • Obtain all required entitlements (zoning, platting, permitting): 2027 Q1 • Begin construction: 2027 Q2 • Complete construction (conservative estimate): 2029 Q1 • Project fully leased: 2029 Q2 Administration -Related Activities Project Administration. Project administration will begin upon project award and will be carried out through the duration of the grant funding timeline. Activities will first be carried out by existing staff and will be handed over to hired staff. Significant milestones include: • Update Annual Action Plan: 2024 Q1 • Hire Associate Planner — Grant Specialist: 2024 Q3 • All funds expended: 2029 Q2 • Grant close-out: 2029 Q3 32 Exhibit E: Capacity The City of Iowa City Department of Neighborhood and Development Services (NDS) will lead implementation of the proposed activities and is well-equipped to do so. NDS is comprised of 46.3 Full Time Equivalent positions and operates an annual budget of $18.7 million for FY23, including federal entitlement funds for public housing, community development, and transportation planning. The Department and its staff are well -versed in administering federally funded projects and working and coordinating with partners, including contractors, subrecipients, community stakeholders, and other government agencies. NDS administered approximately $890,000 in CDBG and $723,000 in HOME in FY22, as well as $8.6 million in Housing Choice Voucher and $697,000 in the Public Housing funds in CY2022. NDS is also responsible for administering $1.8 million in HOME -ARP funds, $1.6 million in CARES Act funds, and over $18 million in ARPA funds. Capacity and Staffing Key divisions within the department include the following. Development Services (13.3 FTE) Development Services assists the public with needs related to urban planning and building inspection services. The Division coordinates all long-range planning efforts, reviews all development proposals, and conducts related building inspection services. Historic Preservation efforts are also coordinated through the Development Services Division. Key management for proposed activities will include: o Danielle Sitzman, Development Services Coordinator o Anne Russett, Senior Planner Neighborhood Services (26.5 FTE) The Neighborhood Services Division is responsible for administration of various housing services, including rehabilitation and housing programs coordinated through the Housing Authority. The Division also provides housing inspection services and administers the City's federal Community Block Grant (CDBG), HOME, and ARPA programs. Key management for proposed activities will include: o Erika Kubly, Neighborhood Services Coordinator o Rachel Carter, Iowa City Housing Authority Administrator Metropolitan Planning Organization of Johnson County (MPOJC) (5.2 FTE) MPOJC is designated by the Governor of the State of Iowa as the Metropolitan Planning Organization (MPO) for the Iowa City Urbanized Area. The MPOJC assists with transportation -related questions and needs. o Kent Ralston, Executive Director o Emily Bothell, Senior Associate Transportation Planner All proposed activities will be managed by City staff utilizing its current leadership capacity and legal authority. 33 Key Staff Divisions most involved in the proposed activities include the following along with key full-time staff that will directly manage the PRO Housing activities: Planning -Related Activities: Development Services (Urban Planning Division) o Anne Russett, Senior Planner o Kirk Lehmann, Associate Planner • Housing -Related Activities (Community Development Division and Housing Authority) o Erika Kubly, Neighborhood Services Coordinator o Rachel Carter, Housing Administrator o Associate Planner — Grant Specialist (existing position) Relevant staff have utilized federally funded grant projects to conduct administrative, planning, public service, and development activities for many years, including administration of CDBG, HOME, Housing Choice Voucher, Rapid Rehousing, Public Housing, and other recent federal funding allocations. This includes general project management related to grant funds, the planning and implementation of grant activities, along with monitoring and ensuring compliance with all federal requirements. In addition, key staff has significant experience enhancing civil rights and addressing fair housing issues. Key staff completed the City's 2019 Fair Housing Choice Study (Analysis of Impediments to Fair Housing Choice) in-house, which required extensive outreach to underserved communities and a thorough data analysis analyzing racial or economic disparities in housing policy. It was this background that allowed the City to incorporate several recent fair housing concerns identified in that plan in the recent Affordable Housing Zoning Code Amendments under consideration by Council. Furthermore, key staff also have experience providing cultural competence and humility training, collecting data to identify racial disparities and make informed programmatic decisions, eliminating barriers that may disproportionately affect certain groups to ensure equitable access to services, and developing culturally sensitive support programs that address specific needs of different racial groups including language services, trauma -informed care, targeted outreach. Key staff are also familiar with working directly with a diverse clientele and with designing and operating programs that equitably benefit disadvantaged groups and advance racial equity. Key staff use a City -developed disparate impact analysis when evaluating new programs. One such program to benefit from this approach was the South District Partnership which was developed to provide high quality affordable homeownership opportunities within one of the City's more diverse neighborhoods. To ensure the program did not displace residents, the program was designed to prioritize applicants from within the neighborhood before considering applicants from other areas of the City. This background, and the mindset it provides, is central to the Department and the way programs and activities are designed, planned, and implemented. Additional Staffing Needs 34 Other staff at the City not mentioned above will also be involved in proposed activities as needed. For example, the expertise of the MPO will be utilized as it relates to analyzing parking demand and updating the City's parking standards. Support will also be provided by other Departments within the City where specific knowledge is required, such as the City Attorney's Office for legal advice, the Department of Finance for financial management and procurement, and the City Manager's Office for additional direction or guidance as needed. In addition, the City anticipates that the proposed activities would require additional capacity, to be paid for using a combination of local and grant funds. These would include the following: • 1.0 Senior Housing Developer to oversee the creation of a local Housing Development division and to carry out the pilot affordable housing development project. • 1.0 Associate Planner — Grant Specialist to aid in overall administration of the PRO Housing Grant, to be paid for by grant administration dollars. • 0.5 Housing Program Assistant to aid in the administration of public service activities including housing counseling and immediate housing assistance programs. • 0.5 Residential Property Manager to aid in management of newly developed publicly owned housing units (to be funded by ongoing rental income from the pilot project). While the City will encourage other partners to participate in the City's planning projects that have a regional scope, action by other governmental entities is not necessary for implementation. As such, the City's capacity to address its identified barriers to affordable housing is not dependent on partner capacity. This should make implementation relatively straightforward and able to commence immediately upon receiving grant approval. Application Preparation Team This application was prepared by City of Iowa City staff. Contributors included: • Geoff From, City Manager • Tracy Hightshoe, Director of Neighborhood and Development Services • Danielle Sitzman, Development Services Coordinator • Erika Kubly, Neighborhood Services Coordinator • Anne Russett, Senior Planner • Rachel Carter, Iowa City Housing Authority Administrator • Kirk Lehmann Associate Planner 35 Exhibit F: Leverage The City of Iowa City is strongly committed to supporting the proposed activities and has committed to providing financial leverage totaling at least $2,850,000 or 52% of PRO Housing grant funds. These resources are expected to be primarily allocated from the City's Affordable Housing fund intended for affordable housing opportunities, along with a portion of the approximately $1,000,000 in funding allocated for affordable housing each year over the course of the proposed activities. These leveraged resources are firmly committed as empowered by City Council Resolution 23-Y—XXX and detailed in the letter from the City Manager dated October 18, 2023 which can be found in Attachment B. However, staff anticipates that the actual leverage by the City will likely be higher. Significant staff time will be dedicated to overseeing and carrying out the proposed activities, most of which has not been included in the activities in this application. hi addition, the pilot development project may utilize existing City property to ensure timely completion of the project and/or additional funds dedicated to affordable housing which are not part of the annual allocation to affordable housing, such as the $5.8 million in the Riverfront Crossings Affordable Housing Fund that must be used to support affordable housing projects in the Riverfront Crossings District. These additional resources were not included in the match amount because their use will be dictated by the final location and form of the pilot project to be determined during the project's design phase. 36 Exhibit G: Long-term Effect Overall, the City has designed its individual activities to address both shorter and longer-term aspects of the City's housing crisis. However, the cumulative effect of all proposed activities is to create change that will last long past the grant's period of performance, including the permanent elimination of several key barriers to housing affordability in Iowa City. This exhibit explores specific deliverables and intended effects of each proposed activity, in addition to how the City will track long-term success Deliverables & Long -Term Effects Addressing the housing crisis requires a multi -faceted approach. The proposed grant activities seek to address barriers posed by zoning, adopted land use policy, the land use entitlement process, limited local development capacity, as well as the cost of construction. Below is a summary of what will be achieved upon completion of each activity. Deliverable: Parking Study and Associated Revisions to Parking Standards Long -Term Effect: Zoning codes can be changed through the legislative process, but the proposed parking study informing changes to parking regulations will help ensure that the changes to parking standards are appropriately calibrated without the need for tweaks through subsequent amendments. This will help ensure that parking is right -sized to the extent that it is no longer used as an indirect way to legislate occupancy and no longer acts as a barrier to new housing in Iowa City. Deliverable: Regional Housing Study Long -Term Effect: A comprehensive assessment of housing needs on a regional scale will allow the City to develop the Comprehensive Plan update with a full understanding of the issues and supply and demand constraints affecting the housing market. This in turn provide a solid basis to guide and support future policy change, including how the City can directly meet affordable housing needs. The assessment will also help the City review its allocations of housing resources and identify any gaps that need to be filled, leading to better long-term funding and policy decisions overall. Deliverable: Updated Comprehensive Plan Housing and Land Use Elements Long -Term Effect: Arguably, the basis of the City's current planning regime was established a decade ago and elements date from long before that. Over this timeframe, a lot has changed. Reviewing and holistically updating its vision, goals, policies, strategies, and action items through a systematic update we provide a more current plan that places equity, climate, and housing at its core, addresses existing disparities, and prepares the City for the future. This new vision will be the guiding source of policy over the next 20 years which will affect the outcome of the built environment for generations. • Deliverable: City -Initiated Rezoning to Higher Densities Long -Term Effect: With a newly adopted land use policy vision, it will be important that the zoning map aligns with any changes. This deliverable is specifically intended to identify areas that should be rezoned to allow higher densities based on that new vision, 37 which is a more proactive and holistic approach than requiring developer -led rezonings on a case-by-case basis. This approach will also be based on significant community outreach and engagement, which will reduce community friction. As a result, future development should cost less due to reduced land use entitlement process, and more certainty in outcomes should streamline the creation of new housing options that will help reduce the tight supply currently experienced within the City. Deliverable: Accessory Dwelling Unit Incentive Program Lone -Term Effect: Combined with the City's recent efforts to address regulatory barriers to ADUs through recently proposed zoning code amendments, this program will help jumpstart the development of ADUs throughout the City and will bring awareness to how these can be utilized. Over the long term, it will help create a more diverse housing stock and emphasize a housing type that is typically available at lower price points than detached single-family homes, all while helping address the cost of construction. Deliverable: Housing Public Services (Housing Counseling and Immediate Assistance) Long -Term Effect: The proposed public services provided through the PRO Housing Grant, including housing counseling and immediate housing assistance, are intended to meet the immediate need of those navigating the complex and challenging housing market of Iowa City. However, they do have longer term impacts as well, including building the capacity of the City to provide housing counseling services in the future and by building the capacity of the public through education. In addition, the City hopes that immediate assistance programs will also help feed potential households into more permanent housing options developed by the City through other proposed activities. Deliverables: ICHA Feasibility Study and Pilot Affordable Housing Development Project Long -Term Effect: Local development capacity is a major issue impacting both housing supply and affordability in Iowa City. The activity that will have the largest impact on that gap is the creation of a development arm of the Housing Authority, which will allow the City to actively develop permanent affordable housing opportunities. In addition, the funds for the City -led pilot project will help ensure the long-term success of the division by providing experience and seed funds for dedicated development staff, while also providing rental income for ongoing property management. Not only that, but all units produced through the Housing Authority will be permanently affordable and managed for low-income households throughout the region. In other words, these activities ensure a long-term impact to the region due to new affordable housing units and they help guarantee the long-term viability of the Iowa City Housing Authority as a developer. Ensuring Success Although the City has identified a real need to move forward with efforts that help to further affordable housing, there will be challenges to implementing these goals. As a result, the proposed activities are designed to mitigate potential roadblocks and ensure the long-term success envisioned by the application. WV First, the City intends to have substantial public engagement efforts to hear from all voices during the implementation process, especially for all planning -related activities. While the City has historically received more input from neighborhood associations and homeowners, the City also intends to make a substantial effort to engage individuals and families that would benefit from more affordable housing, including students, lower income households, and those who speak languages other than English. Through an inclusive engagement framework, the City intends to ensure that a holistic understanding of the community's goals can be reached. Because the City places climate action and resilience at the core of its activities, the City will also plan to mitigate potential environmental risks which may otherwise undermine success. Flooding, the City's main environmental risk, devastated the City in 2008. As a result, the City has recently updated floodplain regulations and is active in buying out properties in the floodplain. High heat events that could impact human health (i.e. areas lacking sufficient vegetative cover or aging residences lacking energy efficient features and/or air conditioning sufficient to handle heat events exceeding 90 degrees) are also a concern. The number of days above 90 degrees for our area is projected to increase to more than 90 days over the next century. Lastly, compounding events must be considered, such as the Derecho wind storm during a pandemic in August 2021 making it hard to shelter people. To mitigate the impact of these hazards, the City will evaluate the need for environmental regulations as part of its proposed Comprehensive Plan process and provide guidance based on the adopted policy direction. By ensuring the success of its efforts, Iowa City hopes to become a model for other small and mid-sized, midwestern cities. The City is serious about addressing the housing crisis in the community and has developed a comprehensive approach to addressing this complex problem. This approach does not solely focus on regulatory barriers, but it also looks at the land use entitlement process and seeks to address local development capacity issues experienced throughout the nation. By thinking through the barriers to affordable housing and developing effective solutions, Iowa City can both demonstrate success and create programs that can be replicated by other similarly situated communities. Tracking Outcomes Maintaining a high quality of life while ensuring all residents have access to more affordable housing options will demonstrate success in Iowa City. While it's a tall order, it is essential in creating a community that truly values all residents. In order to track success, the City intends to focus on several related sets of variables: 1) Housing supply. 2) Land available for higher density development. 3) Housing affordability. The fust sign of success will be to see an increase in the number of new housing units constructed annually with true success being when the supply of housing constructed matches anticipated demand. While housing supply is a symptom rather than a root cause of a lack of affordable housing, increasing supply would be a leading indicator before housing prices are affected. As the housing supply increases, vacancy rates should also increase to a more healthy 39 vacancy rate indicating a balanced housing market. This is especially important in areas near the University where vacancy rates are lowest and access to amenities and opportunities are the greatest. As such, staff will track the following metrics: Metric: Number of newly constructed dwelling units per year Target Outcome: Increase to approximately 460 dwelling units per year Metric: Rental vacancy rate near University Target Outcome: Increase to 6% In addition to increasing supply, the City wants to ensure that all households have access to a variety of housing choices that meets their needs. As a result, the City should be able to demonstrate that a diversity of housing options are being developed which match the needs identified in the City's housing study. Therefore, the City wants to specifically track the number of newly constructed units that are typically smaller and at lower price points than detached single-family homes, such as new accessory dwelling units, duplexes, and multi -family uses. These should be tracked by the percentage of units created for different housing types based on the housing study. Until that is complete, the City can use the following target outcomes for duplexes and ADUs based on increasing the current number of these housing types being built. For multi -family, the City proposes tracking the change in the land area envisioned for multi- family development. Metric: Number of newly constructed ADUs per year Target Outcome: 5 Metric: Number of newly constructed duplexes per year Target Outcome: 15 Metric: Land identified for multi -family development in the updated future land use map Target Outcome: Increase by 30% Finally, the City want to track metrics related specifically to affordability. Since Iowa City has a high number of households that are housing cost burdened, the long-term success of these efforts will only come to fruition if this number begins to decrease. Lower that number by 5 percentage points would be a good start to indicating success, though continued decline is the ultimate goal. Another goal should be the total number of units that are included in an affordable housing program (bolstered by permanent affordable housing units owned by ICHA). A good starting place would be aiming for 10% of housing unit demand (though the final metric for success should be based on need as identified in the regional housing study). • Metric: Reduce the percentage of housing cost -burdened households Target Outcome: 5 percentage points • Metric: Dwelling units in affordable housing programs created per year Target Outcome: 46 These metrics and outcome targets will provide a good starting place to understand the long-term success of proposed activities. .m 3. Attachments 41 Attachment A: Summary of comments received on published Application and list of commenters by name/organization 42 Attachment B: Leverage Documentation 43 [City Letterhead] Date: October 18, 2023 U.S. Department of Housing and Urban Development 451 7t' Street, S.W. Washington, DC 20410 To Whom It May Concern, I am writing on behalf of the City of Iowa City to confirm the City's commitment to supporting the activities outlined in the PRO Housing grant application that will be submitted to the U.S. Department of Housing and Urban Development, which include the following: • Parking Study & Revisions to Zoning Code Parking Standards • Regional Housing Study • Comprehensive Plan Housing and Land Use Elements, including Future Land Use Map • City -Initiated Multi -Family Rezoning • Accessory Dwelling Unit Incentive Program • Housing -Related Public Services • Feasibility Study for a Housing Development Division • Development Pilot Project to Directly Construct Affordable Housing • Administration Costs The City Council is excited to announce its dedication of $2.85 million from our Affordable Housing Fund to advance the goals and objectives detailed in the application. A copy of the Resolution approving the funds is attached for your convenience. The activities proposed in the PRO Housing grant application align seamlessly with our city's commitment to addressing the pressing issue of affordable housing within our community. This funding commitment will enable us to undertake vital initiatives, including the identification and elimination of barriers to affordable housing, the establishment of a dedicated development wing, and updates to our comprehensive plan and housing element, among other activities. We understand the profound impact that accessible, affordable housing has on the well-being of our residents, and we are determined to take proactive measures to ensure housing equity for all. This commitment of $2.85 million reflects our dedication to this cause and our confidence in the effectiveness of the proposed activities. Our City is eager to collaborate to make a tangible difference in the lives of our residents by removing barriers to the production and availability of affordable housing. We look forward to the opportunity to partner with you in this endeavor and to work together toward a future where safe and affordable housing is a fundamental right for every member of our community. Please feel free to reach out to our office should you require any further documentation or information regarding this commitment. We are excited about the possibilities this partnership holds and are eager to embark on this journey together. Sincerely, Geoff Fruin City Manager City of Iowa City Enclosed: Resolution 23-XXXXX M Attachment C: Eligible Applicant Documentation PRO HOUSING CERTIFICATIONS FOR ENTITLEMENT LOCAL GOVERNMENT APPLICANTS In accordance with the applicable statutes and the regulations governing the consolidated plan regulations, the jurisdiction certifies that: Affirmatively Further Fair Housing --The jurisdiction will affirmatively further fair housing. Uniform Relocation Act and Anti -displacement and Relocation Plan -- It will comply with the acquisition and relocation requirements of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended, (42 U.S.C. 4601-4655) and implementing regulations at 49 CFR Part 24. It has in effect and is following a residential anti - displacement and relocation assistance plan required under 24 CFR Part 42 in connection with any activity assisted with funding under the Community Development Block Grant or HOME programs. Anti -Lobbying --To the best of the jurisdiction's knowledge and belief: 1. No Federal appropriated funds have been paid or will be paid, by or on behalf of it, to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with the awarding of any Federal contract, the making of any Federal grant, the making of any Federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any Federal contract, grant, loan, or cooperative agreement; 2. If any funds other than Federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with this Federal contract, grant, loan, or cooperative agreement, it will complete and submit Standard Form -LLL, "Disclosure Form to Report Lobbying," in accordance with its instructions; and 3. It will require that the language of paragraph 1 and 2 of this anti -lobbying certification be included in the award documents for all subawards at all tiers (including subcontracts, subgrants, and contracts under grants, loans, and cooperative agreements) and that all subrecipients shall certify and disclose accordingly. Authority of Jurisdiction -- The submission of the PRO Housing application is authorized under State and local law (as applicable) and the jurisdiction possesses the legal authority to carry out the programs for which it is seeking funding, in accordance with applicable HUD regulations. Consistency with plan --The housing activities to be undertaken with PRO Housing funds are consistent with the strategic plan in the jurisdiction's consolidated plan. Section 3 -- It will comply with section 3 of the Housing and Urban Development Act of 1968 (12 U.S.C. 1701u) and implementing regulations at 24 CFR Part 75. Build America, Buy America (BABA) — It will comply with Title DX, Subpart A of the Infrastructure hivestment and Jobs Act of 2021 (41 U.S.C. 8301 et seq.). Public Participation — It is in full compliance with the PRO Housing streamlined public participation requirements found in Section VLE of the PRO Housing NOFO. Community Development Plan -- Its consolidated plan identifies community development and housing needs and specifies both short-term and long-term community development objectives that have been developed in accordance with the primary objective of the CDBG program (i.e., the development of viable urban communities, by providing decent housing and expanding economic opportunities, primarily for persons of low and moderate income) and requirements of 24 CFR parts 91 and 570. Following a Plan -- It is following a current consolidated plan that has been approved by HUD. Use of Funds -- It has complied with the following criteria: 1. Maximum Feasible Priority. With respect to activities expected to be assisted with PRO Housing funds, it has developed its proposal so as to give maximum feasible priority to activities which benefit low- and moderate -income families or aid in the prevention or elimination of slums or blight. The proposal may also include activities which the grantee certifies are designed to meet other community development needs having particular urgency because existing conditions pose a serious and immediate threat to the health or welfare of the community, and other financial resources are not available (see Optional PRO Housing Certification). 2. Overall Benefit. The aggregate use of PRO Housing funds shall principally benefit persons of low and moderate income in a manner that ensures that at least 70 percent of the amount is expended for activities that benefit such persons. 3. Special Assessments. It will not attempt to recover any capital costs of public improvements assisted with PRO Housing funds by assessing any amount against properties owned and occupied by persons of low and moderate income, including any fee charged or assessment made as a condition of obtaining access to such public improvements. However, if PRO Housing funds are used to pay the proportion of a fee or assessment that relates to the capital costs of public improvements (assisted in part with PRO Housing funds) financed from other revenue sources, an assessment or charge may be made against the property with respect to the public improvements financed by a source other than PRO Housing funds. In addition, in the case of properties owned and occupied by moderate -income (not low-income) families, an assessment or charge may be made against the property for public improvements financed by a source other than PRO Housing funds if the jurisdiction certifies that it lacks PRO Housing funds to cover the assessment. 47 Excessive Force -- It has adopted and is enforcing: 1. A policy prohibiting the use of excessive force by law enforcement agencies within its jurisdiction against any individuals engaged in non-violent civil rights demonstrations; and 2. A policy of enforcing applicable State and local laws against physically barring entrance to or exit from a facility or location which is the subject of such non-violent civil rights demonstrations within its jurisdiction. Compliance with Anti -discrimination laws -- The grant will be conducted and administered in conformity with title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d) and the Fair Housing Act (42 U.S.C. 3601-3619) and implementing regulations. Lead -Based Paint -- Its activities concerning lead-based paint will comply with the requirements of 24 CFR part 35, subparts A, B, J, K and R; and EPA's lead-based paint rules (e.g., Repair, Renovation and Painting; Pre -Renovation Education; and Lead Training and Certification (40 CFR part 745)). Compliance with RFRA -- The grant will be conducted and administered in conformity with the requirements of the Religious Freedom Restoration Act (42 U.S.C. 2000bb) and 24 CFR 5.109, allowing the full and fair participation of faith -based entities. Environmental Review -- It will comply with environmental review procedures and requirements at 24 CFR parts 50 and 58. Compliance with Laws -- It will comply with applicable laws. Signature of Authorized Official Title Date Attachment D: Application Certifications and Standard Forms I 26 WORKSPACE FORM 'GRAN S.GOV � GF§ATVTS.GOV" SUPPORT@GRANTS.GOV This Workspace form is one of the forms you need to complete prior to submitting your Application Package. This form can be completed in its entirety offline using Adobe Reader. You can save your form by clicking the "Save" button and see any errors by clicking the "Check For Errors" button. In -progress and completed forms can be uploaded at any time to Gmnts.gov using the Workspace feature. When you open a form, required fields are highlighted in yellow with a red border. Optional fields and completed fields are displayed in white. If you enter invalid or incomplete information in a field, you will receive an error message. Additional instructions and FAQs about the Application Package can be found in the Grants.gov Applicants tab. OPPORTUNITY& PACKAGE DETAILS: Opportunity Number: FR -6700-N-98 Opportunity Title: Pathways to Removing Obstacles to Housing (PRO Housing) Opportunity Package ID: PKGO0283091 CFDA Number: 14.023 CFDA Description: Community Development Block Grant- PRO Housing Competition Competition ID: FR -6700-N-98 Competition Title: Pathways to Removing Obstacles to Housing (PRO Housing) Opening Date: 09/07/2023 Closing Date: 10/30/2023 Agency: Department of Housing and Urban Development Contact Information: WORKSPACE CDBG-PROHousing@hud.gov Workspace ID: WS01198047 Application Filing Name: City of Iowa City UEI: VJ7SSXEP1M18 Organization: CITY OF IOWA CITY Form Name: Application for Federal Assistance (SF -929) Form Version: 9.0 Requirement: Mandatory Download Date/time: Oct 10, 2023 10:56:38 AM EDT Form State: No Errors OMB Number: 4040-0004 Expiration Date: 11/30/2025 Application for Federal Assistance SF -424 1. Type of Submission: ❑ Preapplication ®Application ❑ Changed/Corrected Application ' 2. Type of Application: ` If Revision, select appropriate leder(s): ® New Continuation ` Other (Specify): ❑ Revision ` 3. Date Received: 4. Applicant Identifier: Completed by Grants.gov upon submission. 5a. Federal Entity Identifier: 5b. Federal Award Identifier State Use Only: 6. Date Received by State: E== 7. State Application Identifier: 6. APPLICANT INFORMATION: `a. Legal Name: City of Iowa City `b.Employer/Taxpayer Identification Number(EIINTIN): "c. LEI: VJ7SSXEP1M18 92-6009805 d. Address: 'Streetl: 910 E. Washington Street Street2: "CdY Iowa City County/Parish: " State: IA: Iowa Province: 'Country: USA: UNITED STATES • Zip / Postal Code: 52290-1826 e. Organizational Unit: Department Name: Division Name: Development Services Neighborhood and Dev. Services f. Name and contact information of person to be contacted on matters involving this application: Prefer: Mr `First Name: Middle Name: Kirk `Last Name: Lehmann Suffer: Title: Associate planner Organizational Affiliation: `Telephone Number: 319-356-5297 Fax Number: `Email: klehmann@iowa-city.org Application for Federal Assistance SF -424 * 9. Type of Applicant 1: Select Applicant Type: C: City or Township Government Type of Applicant 2: Select Applicant Type: Type of Applicant 3: Select Applicant Type: ` Other (specify): * 10. Name of Federal Agency: Department of Housing and Urban Development 77. Catalog of Federal Domestic Assistance Number: 19.023 CFDA Title: Community Development Block Grant- PRO Housing Competition * 12. Funding Opportunity Number: FR -6700-N-98 * Title: Pathways to Removing Obstacles to Housing (PRO Housing) 13. Competition Identification Number: FR -6700-N-98 Title: Pathways to Removing Obstacles to Housing (PRO Housing) 14. Areas Affected by Project (Cities, Counties, States, etc.): Add Attachment Delete Attachment View Attachment * 15. Descriptive Title of Applicant's Project: PRO Housing grant funds to remove barriers to affordable housing, increase housing production, and lower housing costs over the long-term. Attach supporting documents as specfied in agency instructions. Add Attachments Delete Attachments View Attachments Application for Federal Assistance SF -424 16. Congressional Districts Of: * a. Applicant IA -1 * b. Program/Project IA -1 Attach an additional list of Program/Project Congressional Districts if needed. Add Attachment Delete Attachment View Attachment 17. Proposed Project: * a. Start Date: 01/01/2029 * b. End Date: 09/30/2029 16. Estimated Funding ($): * a. Federal 5, 600, 000.00 * b. Applicant 2, 850, 000.00 * c. State 0.00 *d. Local 0.00 * e. Other 0.00 *f. Program Income 0.00 *g. TOTAL F 8,950,000.00 * 19. Is Application Subject to Review By State Under Executive Order 12372 Process? ❑ a. This application was made available to the State under the Executive Order 12372 Process for review on ® b. Program is subject to E.O. 12372 but has not been selected by the State for review. ❑ c. Program is not covered by E.O. 12372. * 20. Is the Applicant Delinquent On Any Federal Debt? (If "Yes," provide explanation in attachment.) ❑ Yes ® No If "Yes", provide explanation and attach Add Attachment Delete Attachment View Attachment 21. *By signing this application, I certify (1) to the statements contained in the list of certifications** and (2) that the statements herein are true, complete and accurate to the best of my knowledge. I also provide the required assurances— and agree to comply with any resulting terms if I accept an award. I am aware that any false, fictitious, or fraudulent statements or claims may subject me to criminal, civil, or administrative penalties. (U.S. Code, Title 18, Section 1001) ® **I AGREE ** The list of certifications and assurances, or an internet site where you may obtain this list, is contained in the announcement or agency specific instructions. Authorized Representative: Prefix: Mr. First Name: Geoff Middle Name: `Last Name: Fruin Suffix: `Title: City Manager `Telephone Number: 319-356-5013 Fax Number: `Email: gfruin@iowa-city.org * Signature of Authorized Representative: completed by Gmnts.gov upon submission. * Date Signed: completed by Grants.gov upon submission. I 26 WORKSPACE FORM 'GRAN S.GOV � GFiATVTS.GOV" SUPPORT@GRANTS.GOV This Workspace form is one of the forms you need to complete prior to submitting your Application Package. This form can be completed in its entirety offline using Adobe Reader. You can save your form by clicking the "Save" button and see any errors by clicking the "Check For Errors" button. In -progress and completed forms can be uploaded at any time to Gmnts.gov using the Workspace feature. When you open a form, required fields are highlighted in yellow with a red border. Optional fields and completed fields are displayed in white. If you enter invalid or incomplete information in a field, you will receive an error message. Additional instructions and FAQs about the Application Package can be found in the Grants.gov Applicants tab. OPPORTUNITY& PACKAGE DETAILS: Opportunity Number: FR -6700-N-98 Opportunity Title: Pathways to Removing Obstacles to Housing (PRO Housing) Opportunity Package ID: PKGO0283091 CFDA Number: 14.023 CFDA Description: Community Development Block Grant- PRO Housing Competition Competition ID: FR -6700-N-98 Competition Title: Pathways to Removing Obstacles to Housing (PRO Housing) Opening Date: 09/07/2023 Closing Date: 10/30/2023 Agency: Department of Housing and Urban Development Contact Information: WORKSPACE CDBG-PROHousing@hud.gov Workspace ID: WS01198047 Application Filing Name: City of Iowa City UEI: VJ7SSXEP1M18 Organization: CITY OF IOWA CITY Form Name: Applicant and Recipient Assurances and Certifications (HUD -929B) Form Version: 1.0 Requirement: Mandatory Download Date/time: Oct 10, 2023 10:56:98 AM EDT Form State: Applicant and Recipient U.S. Department of Housing OMB Number: 2501-0017 Assurances and Certifications and Urban Development Expiration Date: 01/31/2026 Instructions for the HUD -424-B Assurances and Certifications As part of your application for HUD funding, you, as the official authorized to sign on behalf of your organization or as an individual, must provide the following assurances and certifications, which replace any requirement to submit an SF -424-B or SF -424-D. The Responsible Civil Rights Official has specified this form for use for purposes of general compliance with 24 CFR §§ 1.5, 3.115, 8.50, and 146.25, as applicable. The Responsible Civil Rights Official may require specific civil rights assurances to be furnished consistent with those authorities and will specify the form on which such assurances must be made. A failure to furnish or comply with the civil rights assurances contained in this form may result in the procedures to effect compliance at 24 CFR §§ 1.8, 3.115, 8.57, or 146.39. By submitting this form, you are stating that all assertions made in this form are true, accurate, and correct. As the duly representative of the applicant, I certify that the applicant: 'Authorized Representative Name: Pref Mid( 'Las Suff 'Title: 'Applican 1. Has the legal authority to apply for Federal assistance, has the institutional, managerial and financial capability (including funds to pay the non -Federal share of program costs) to plan, manage and complete the program as described in the application and the governing body has duly authorized the submission of the application, including these assurances and certifications, and authorized me as the official representative of the application to act in connection with the application and to provide any additional information as may be required. 2. Will administer the grant in compliance with Title VI of the Civil Rights Act of 1964 (42 U.S.0 2000(d)) and implementing regulations (24 CFR part 1), which provide that no person in the United States shall, on the grounds of race, colorer national origin, be excluded from participation in, be denied the benefits of, or otherwise be subject to discrimination under any program or activity that receives Federal financial assistance OR if the applicant is a Federally recognized Indian tribe or its tribally designated housing entity, is subject to the Indian Civil Rights Act (25 U. S.C. 1301-1303). 3. Will administer the grant in compliance with Section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 794), as amended, and implementing regulations at 24 CFR part 8, the American Disabilities Act (42 U.S.C. §§ 12101 et.seq.), and implementing regulations at 28 CFR part 35 or 36, as applicable, and the Age Discrimination Act of 1975 (42 U.S. C. 6101-07) as amended, and implementing regulations at 24 CFR part 146 which together provide that no person in the United States shall, on the grounds of disability or age, be excluded from participation in, be denied the benefits of, or otherwise be subjected to discrimination under any program or activity that receives Federal financial assistance; except if the grant program authorizes or limits participation to designated populations, then the applicant will comply with the nondiscrimination requirements within the designated population. 4. Will comply with the Fair Housing Act (42 U.S.C. 3601-19), as amended, and the implementing regulations at 24 CFR part 100, which prohibit discrimination in housing on the basis of race, color, religion sex (including gender identity and sexual orientation), disability, familial status, or national origin and will affirmatively further fair housing; except an applicant which is an Indian tribe or its instrumentality which is excluded by statute from coverage does not make this certification; and further except if the grant program authorizes or limits participation to designated populations, then the applicant will comply with the nondiscrimination requirements within the designated population. 5. Will comply with all applicable Federal nondiscrimination requirements, including those listed at 24 CFR §§ 5.105(a) and 5.106 as applicable. 6. Will comply with the acquisition and relocation requirements of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended (42 U.S.C. 4601) and implementing regulations at 49 CFR part 24 and, as applicable, Section 104(d) of the Housing and Community Development Act of 1974 (42 U.S.C. 5304(d)) and implementing regulations at 24 CFR part 42, subpart A. 7. Will comply with the environmental requirements of the National Environmental Policy Act (42 U.S.C. 4321 et.seq.) and related Federal authorities prior to the commitment or expenditure of funds for property. 8. That no Federal appropriated funds have been paid, or will be paid, by or on behalf of the applicant, to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, and officer or employee of Congress, or an employee of a Member of Congress, in connection with the awarding of this Federal grant or its extension, renewal, amendment or modification. If funds other than Federal appropriated funds have or will be paid for influencing or attempting to influence the persons listed above, I shall complete and submit Standard Form - LLL, Disclosure Form to Report Lobbying. I certify that I shall require all subawards at all tiers (including sub -grants and contracts) to similarly certify and disclose accordingly. Federally recognized Indian Tribes and tribally designated housing entities (TDHEs) established by Federally - recognized Indian tribes as a result of the exercise of the tribe's sovereign power are excluded from coverage by the Byrd Amendment, but State -recognized Indian tribes and TDHs established under State law are not excluded from the statute's coverage. Me, the undersigned, certify under penalty of perjury that the information provided above is true and correct. WARNING: Anyone who knowingly submits a false claim or makes a false statement is subject to criminal and/or civil penalties, including confinement for up to 5 years, fines, and civil and administrative penalties. (18 U.S.C. §§287, 1001, 1010, 1012, 1014; 31 U.S.C. §3729, 3802). `Signature: Completed Upon Submission to G-ants.00v `Date:Completed Upon Sub tsston to Giants.^o, Form HUD -424-B (02/23) I 26 WORKSPACE FORM 'GRAN S.GOV � GFiATVTS.GOV" SUPPORT@GRANTS.GOV This Workspace form is one of the forms you need to complete prior to submitting your Application Package. This form can be completed in its entirety offline using Adobe Reader. You can save your form by clicking the "Save" button and see any errors by clicking the "Check For Errors" button. In -progress and completed forms can be uploaded at any time to Gmnts.gov using the Workspace feature. When you open a form, required fields are highlighted in yellow with a red border. Optional fields and completed fields are displayed in white. If you enter invalid or incomplete information in a field, you will receive an error message. Additional instructions and FAQs about the Application Package can be found in the Grants.gov Applicants tab. OPPORTUNITY& PACKAGE DETAILS: Opportunity Number: FR -6700-N-98 Opportunity Title: Pathways to Removing Obstacles to Housing (PRO Housing) Opportunity Package ID: PKGO0283091 CFDA Number: 14.023 CFDA Description: Community Development Block Grant- PRO Housing Competition Competition ID: FR -6700-N-98 Competition Title: Pathways to Removing Obstacles to Housing (PRO Housing) Opening Date: 09/07/2023 Closing Date: 10/30/2023 Agency: Department of Housing and Urban Development Contact Information: WORKSPACE CDBG-PROHousing@hud.gov Workspace ID: WS01198047 Application Filing Name: City of Iowa City UEI: VJ7SSXEP1M18 Organization: CITY OF IOWA CITY Form Name: Disclosure of Lobbying Activities (SF -LLL) Form Version: 2.0 Requirement: Mandatory Download Date/time: Oct 10, 2023 10:56:57 AM EDT Form State: DISCLOSURE OF LOBBYING ACTIVITIES Complete this form to disclose lobbying activities pursuant to 31 U.S.C.1352 OMB Number: 4040-0013 Expiration Date: 02/28/2025 1. * Type of Federal Action: 2. * Status of Federal Action: 3. * Report Type: a. contract a. bidbffer/application ® a. initial fling ® b. grant ® b. initial award F-1 b. material change c cooperative agmement ❑ c post -award d. ban ❑ e. ban guarantee El f. ban insurance 4. Name and Address of Reporting Entity: ®Prime F-1SubAwardee 'Name ' street l 6 Street 2F— 'City State Zip .city, Congressional District, if known: 5. If Reporting Entity in No.4 is Subawardee, Enter Name and Address of Prime: 6. * Federal Department/Agency: 7. * Federal Program Name/Description: Community Development Block Grant- PRO Housing Competition CFDA Number, if appd'cable: 14.023 8. Federal Action Number, if known: 9. Award Amount, if known: $ 10. a. Name and Address of Lobbying Registrant: Prefu First Name Middle Name 'Last Name Suffu ' Street I Street 2 'City State Zip b. Individual Performing Services (including address if different from No. 10a) Pre%u • First Name Middle Name 'Last Name Sidi& 'small Street2 'city, State ➢'p 11. Information requested through this form is authorized by title 31 U.S.C. section 1352. This disclosure of lobbying activities is a material representation of fact upon which reliance was placed by the tier above when the transaction was made or entered into. This disclosure is required pursuant to 31 U.S.C. 1352. This informatbn will he reported to the Congress semi-annually and will be available for public inspection. Any person who fails to file the mquired disclosure shall be subject to a civil penalty of not less than $10,000 and not more than $100.000 for each such failure. ' Signature: Completed on submission to Grants.gov *Name: Pre& 'First Name Middle Name 'Last Name Sidi& Title: Telephone No.: Date: Completed on ubrris tto Grants.gov Federal Use Only: sitl;n.1is df.,Wufe°.Wi. .. I 26 WORKSPACE FORM 'GRAN S.GOV � GFiATVTS.GOV" SUPPORT@GRANTS.GOV This Workspace form is one of the forms you need to complete prior to submitting your Application Package. This form can be completed in its entirety offline using Adobe Reader. You can save your form by clicking the "Save" button and see any errors by clicking the "Check For Errors" button. In -progress and completed forms can be uploaded at any time to Gmnts.gov using the Workspace feature. When you open a form, required fields are highlighted in yellow with a red border. Optional fields and completed fields are displayed in white. If you enter invalid or incomplete information in a field, you will receive an error message. Additional instructions and FAQs about the Application Package can be found in the Grants.gov Applicants tab. OPPORTUNITY& PACKAGE DETAILS: Opportunity Number: FR -6700-N-98 Opportunity Title: Pathways to Removing Obstacles to Housing (PRO Housing) Opportunity Package ID: PKGO0283091 CFDA Number: 14.023 CFDA Description: Community Development Block Grant- PRO Housing Competition Competition ID: FR -6700-N-98 Competition Title: Pathways to Removing Obstacles to Housing (PRO Housing) Opening Date: 09/07/2023 Closing Date: 10/30/2023 Agency: Department of Housing and Urban Development Contact Information: WORKSPACE CDBG-PROHousing@hud.gov Workspace ID: WS01198047 Application Filing Name: City of Iowa City UEI: VJ7SSXEP1M18 Organization: CITY OF IOWA CITY Form Name: HUD Applicant -Recipient Disclosure Report Form Version: 9.0 Requirement: Mandatory Download Date/Time: Oct 10, 2023 10:56:96 AM EDT Form State: Applicant/Recipient U.S. Department of Housing Disclosure/Update Report and Urban Development OMB Number: 2501-0017 Expiration Date: 01/31/2026 Applicant/Recipient Information * UEI Number: VJ7SSXEP1M18 * Report Type: I INITIAL 1. Applicant/Recipient Name, Address, and Phone (include area code): * Applicant N * Streetl, Streetl: * City: County: * State: * Zip Code: * Country: * Phone: 2. Employer ID Number (do not include individual social security numbers): 3. HUD Program Name: ty Development Block Grant- PRO Housing Competition * 4. Amount of HUD Assistance Requested/Received: $ 5. State the name and location (street address, City and State) of the project or activity: * Project Name: * Streetl: Streetl: * City: County: * State: * Zip Code: * Country: Part I Threshold Determinations 1. Are you applying for assistance for a specific project or activity? These terms do not include formula grants, such as public housing operating subsidy or CDBG block grants. For further information see 24 CFR Sec. 4.3. Yes ❑ No 2. Have you received or do you expect to receive assistance within the jurisdiction of the Department (HUD), involving the project or activity in this application, in excess of $200,000 during this fiscal year (Oct. 1 -Sep. 30)? For further information, see 24 CFR 4.9. Yes ❑ No If you answered "No" to either question 1 or 2, Stop! You do not need to complete the remainder of this form. However, you must sign the certification at the end of the report. Form HUD -2880 (02/23) Part II Other Government Assistance Provided or Requested / Expected Sources and Use of Funds. Such assistance includes, but is not limited to, any grant, loan, subsidy, guarantee, insurance, payment, credit, or tax benefit. Department/State/Local Agency Name: Government Agency Name: Government • Streetl: Streetl: • City: County: • State: • Zip Code: • Country: Type of Assistance: Expected Uses of the Funds: Department/State/Local Agency Name: Government Agency Name: Government Agency Address: Streetl: Streetl: • City: County: • State: • Zip Code: • Country: Amount Requested/Provided: $ Type of Assistance: Expected Uses of the Funds: Amount Requested/Provided: $ Note: Use additional pages if necessary. IAdd Attachment Delete Attachment View Attachment Form HUD -2880 (02/23) Part III Interested Parties. You must disclose: 1. All developers, contractors, or consultants involved in the application for assistance or in the planning, development, or implementation of the project or activity. Alphabetical list of all persons with a reportable financial interest in the project or ' Unique Entity ID ' Type of Participation in ' Financial Interest in activity (for individuals, give the last name first) Project/Activity Project/Activity ($ and %) $�% $�% $� % $ �% $�% 2. Any other person who has a financial interest in the project or activity for which the assistance is sought that exceeds $50,000 or 10 percent of the assistance (whichever is lower). Alphabetical list of all persons with a reportable financial interest in the project or City of Residence ' Type of Participation in ' Financial Interest in activity (For individuals, give the last name first) Project/Activity Project/Activity ($ and %) $% $% $% $% Note: Use additional pages if necessary. Add Attachment Delete Attachment View Attachment Certification I/We, the undersigned, certify under penalty of perjury that the information provided above is true, correct, and accurate. Warning: If you knowingly make a false statement on this form, you may be subject to criminal and/or civil penalties under Section 1001 of Title 18 of the United States Code. In addition, any person who knowingly and materially violates any required disclosures of information, including intentional non -disclosure, is subject to civil money penalty not to exceed $10,000 for each violation. Signature: ' Date: (mm/dd/yyyy) Completed Upon Submission to Grants.gov Completed Upon Submission to Grants.gov Form HUD -2880 (02/23) Instructions Overview. A. Coverage. You must complete this report if: (1) You are applying for assistance from HUD for a specific project or activity and you have received, or expect to receive, assistance from HUD in excess of $200,000 during the fiscal year; (2) You are updating a prior report as discussed below; or (3) You are submitting an application for assistance to an entity other than HUD, a State or local government if the application is required by statute or regulation to be submitted to HUD for approval or for any other purpose. B. Update reports (filed by "Recipients" of HUD Assistance): General. All recipients of covered assistance must submit update reports to the Department to reflect substantial changes to the initial applicant disclosure reports. Line -by -Line Instructions. Applicant/Recipient Information. All applicants for HUD competitive assistance, must complete the information required in blocks 1-5 of form HUD -2880: 1. Enter the full name, address, city, State, zip code, and telephone number (including area code) of the applicant/recipient. Where the applicant/recipient is an individual, the last name, first name, and middle initial must be entered. 2. Entry of the applicant/recipient's EIN, as appropriate, is optional. Individuals must not include social security numbers on this form. 3. Applicants enter the HUD program name under which the assistance is being requested. 4. Applicants enter the amount of HUD assistance that is being requested. Recipients enter the amount of HUD assistance that has been provided and to which the update report relates. The amounts are those stated in the application or award documentation. NOTE: In the case of assistance that is provided pursuant to contract over a period of time (such as project -based assistance under section 8 of the United States Housing Act of 1937), the amount of assistance to be reported includes all amounts that are to be provided over the term of the contract, irrespective of when they are to be received. 5. Applicants enter the name and full address of the project or activity for which the HUD assistance is sought. Recipients enter the name and full address of the HUD -assisted project or activity to which the update report relates. The most appropriate government identifying number must be used (e.g., RFP No.; IFB No.; grant announcement No.; or contract, grant, or loan No.) Include prefixes. Part I. Threshold Determinations - Applicants Only Part I contains information to help the applicant determine whether the remainder of the form must be completed. Recipients filing Update Reports should not complete this Part. If the answer to either questions 1 or 2 is No, the applicant need not complete Parts II and II I of the report but must sign the certification at the end of the form. Part II. Other Government Assistance and Expected Sources and Uses of Funds. A. Other Government Assistance. This Part is to be completed by both applicants and recipients for assistance and recipients filing update reports. Applicants and recipients must report any other government assistance involved in the project or activity for which assistance is sought. Applicants and recipients must report any other government assistance involved in the project or activity. Other government assistance is defined in note 4 on the last page. For purposes of this definition, other government assistance is expected to be made available if, based on an assessment of all the circumstances involved, there are reasonable grounds to anticipate that the assistance will be forthcoming. Both applicant and recipient disclosures must include all other government assistance involved with the HUD assistance, as well as any other government assistance that was made available before the request, but that has continuing vitality at the time of the request. Examples of this latter category include tax credits that provide for a number of years of tax benefits, and grant assistance that continues to benefit the project at the time of the assistance request. The following information must be provided: 1. Enter the name and address, city, State, and zip code of the government agency making the assistance available. 2. State the type of other government assistance (e.g., loan, grant, loan insurance). 3. Enter the dollar amount of the other government assistance that is, or is expected to be, made available with respect to the project or activities for which the HUD assistance is sought (applicants) or has been provided (recipients). 4. Uses of funds. Each reportable use of funds must clearly identify the purpose to which they are to be put. Reasonable aggregations may be used, such as "total structure" to include a number of structural costs, such as roof, elevators, exterior masonry, etc. B. Non -Government Assistance. Note that the applicant and recipient disclosure report must specify all expected sources and uses of funds - both from HUD and any other source - that have been or are to be, made available for the project or activity. Non-government sources of Form HUD -2880 funds typically include (but are not limited to) foundations and private contributors. Part III. Interested Parties. This Part is to be completed by both applicants and recipients filing update reports. Applicants must provide information on: 1. All developers, contractors, or consultants involved in the application for the assistance or in the planning, development, or implementation of the project or activity and 2. Any other person who has a financial interest in the project or activity for which the assistance is sought that exceeds $50,000 or 10 percent of the assistance (whichever is lower). Note: A financial interest means any financial involvement in the project or activity, including (but not limited to) situations in which an individual or entity has an equity interest in the project or activity, shares in any profit on resale or any distribution of surplus cash or other assets of the project or activity, or receives compensation for any goods or services provided in connection with the project or activity. Residency of an individual in housing for which assistance is being sought is not, by itself, considered a covered financial interest. The information required below must be provided. 1. Enter the full names and addresses. If the person is an entity, the listing must include the full name and address of the entity as well as the CEO. Please list all names alphabetically. 2. Entry of the Unique Entity Identifier (UEI), for non -individuals, or city of residence, for individuals, for each organization and person listed is optional. 3. Enter the type of participation in the project or activity for each person listed: i.e., the person's specific role in the project (e.g., contractor, consultant, planner, investor). 4. Enter the financial interest in the project or activity for each person listed. The interest must be expressed both as a dollar amount and as a percentage of the amount of the HUD assistance involved. Note that if any of the source/use information required by this report has been provided elsewhere in this application package, the applicant need not repeat the information, but need only refer to the form and location to incorporate it into this report. (It is likely that some of the information required by this report has been provided on SF 424A, or on various budget forms accompanying the application.) If this report requires information beyond that provided elsewhere in the application package, the applicant must include in this report all the additional Form HUD -2880 (02/23) information required. Recipients must submit an update report for any change in previously disclosed sources and uses of funds as provided in Section I.D.S., above. Notes: 1. All citations are to 24 CFR Part 4, which was published in the Federal Register. [April 1, 1996, at 63 Fed. Reg. 14448.] 2. Assistance means any contract, grant, loan, cooperative agreement, or other form of assistance, including the insurance or guarantee of a loan or mortgage, that is provided with respect to a specific project or activity under a program administered by the Department. The term does not include contracts, such as procurements contracts, that are subject to the Fed. Acquisition Regulation (FAR) (48 CFR Chapter 1). 3. See 24 CFR §4.9 for detailed guidance on how the threshold is calculated. 4. "Other government assistance" is defined to include any loan, grant, guarantee, insurance, payment, rebate, subsidy, credit, tax benefit, or any other form of direct or indirect assistance from the Federal government (other than that requested from HUD in the application), a State, or a unit of general local government, or any agency or instrumentality thereof, that is, or is expected to be made, available with respect to the project or activities for which the assistance is sought. 5. For the purpose of this form and 24 CFR Part 4, "person" means an individual (including a consultant, lobbyist, or lawyer); corporation; company; association; authority; firm; partnership; society; State, unit of general local government, or other government entity, or agency thereof (including a public housing agency); Indian tribe; and any other organization or group of people. Form HUD -2880 (02/23) Kellie Grace From: Escucha Mi Voz Iowa <info@escuchamivozia.org> Sent: Thursday, October 12, 2023 10:29 AM To: Geoff Fruin; Tracy Hightshoe; Danielle Sitzman; Erika Kubly; Rachel Carter; Anne Russett; Kirk Lehmann Cc: *City Council Subject: Org. Comments on draft PRO Housing application Attachments: We sent you safe versions of your files; 10.11.21EMV.Comments. Pro HousingApplications.pdf A ** This email originated outside of the City of Iowa City email system. Please take extra care opening any links or attachments. ** Mimecast Attachment Protection has deemed this file to be safe, but always exercise caution when opening files. To the city of Iowa City: Attached as a PDF letter: Escucha Mi Voz Iowa's and the Iowa City Catholic Worker's official organizational comments on the city's draft PRO Housing application. Thank you for considering them, David Goodner and Daniana Trigoso-Kukulski Co -Directors, Escucha Mi Voz Iowa 113 S Johnson St Iowa City, IA 52240 319-499-8929 www.escucham ivozia.ore www.iowacitycatholicworker.ore October 12, 2023 ESCUCHA Mi VOZ IOWA Fighting for Worker Justice and Immigration Reform CASA DEL CATHOLIC 4% WORKER Jowncnv OBRERO CATOLICO Geoff From, City Manager Tracy Hightshoe, Director of Neighborhood and Development Services Danielle Sitzman and Erika Kubly, Neighborhood and Development Services Coordinators Rachel Carter, Iowa City Housing Authority Administrator Anne Russet and Kirk Lehmann, City Planners Organizational comments on the city of Iowa City's draft Pathways to Removing Obstacles to Housing (PRO Housing) Application City Manager Geoff Frain, Director Tracy Hightshoe, and team: Thank you for applying for the federal PRO Housing grant and inviting the public to comment on the application`. We appreciate the city of Iowa City's commitment to improving affordable housing, supportive housing, and local development capacity in our community. We support the city's draft application and the breadth and scope of its proposed programs, in particular: • City -Initiated Higher Density Rezoning to make more land inside city limits available for multifamily development solutions; • Creation of anew Housing, Development Division to increase local development capacity; • One or more Affordable Housing Pilot Proiects to build dozens of new affordable housing dwelling units, and • An Accessary Dwelling Unit _(ADIJ)_Incentive Fund, to help working-class homeowners finance new accessory construction. ' Iowa City draft PRO Housing application, Oct. 2, httins'llioyocityia.prod.eovacCess.orolhemelshowdocument?id=l666 Our main concerns with the city's draft PRO Housing application are: 1. The city has not passed the Affordable Housing ZonineCode Amendments it claims to have made in order to demonstrate progress towards eliminating discriminatory local barriers to fair housing. The city does not have an articulated plan for overcoming opposition to equitable housing by homeowners and neighborhood associations. 2. The city's proposed Matching leverage of 52 percentis small given its available resources, the acute demand for affordable housing, and rival bids from other competitors for scarce federal housing funds. 3. The proposed parking and housine studies totaling $400,000 may not be necessary because opposition by homeowners and neighborhood associations is the real obstacle to desegregating the city, not a lack of studies. 4. It narrowly defines targe populations as only low and mid -income residents. This erases protected class groups of low and mid -income residents like working immigrant and refugee families. Underserved communities of color who do not speak English have historically been denied equal access to well -resourced areas of the city and are unlikely or least likely to apply absent specifically tailored efforts. 5. It lacks a sound Civil Rights & Equity analysis of city policies and practices that perpetuate segregation. The city's application does not contain any words such as racially restrictive covenant, segregation, desegregate, immigrants, refugees, Black, Hispanic, African, Sudanese, Arab, Muslim, Indian, indigenous, native, racial composition, or people of color. 6. It fails to analyze holy. without citywidQ high-dQnsity the Riverfront Crossings and South Districts alone could lead to the displacement of vulnerable residents in communities of color and further concentrate affordable housing in low -opportunity areas that already have ample affordable housing. To address these concerns, we offer to partner with city officials in the improvement, implementation, and evaluation of Iowa City's PRO Housing plan.' - Our member -led community organizations have seven years of experience providing innovative, deeply affordable supportive housing for immigrant workers. Our base of grassroots support includes 1,500 individual members and more than 40 institutions, churches, women's religious congregations, and labor unions. Our community land trust owns nearly $2 million in affordable housing properties. Last year, we helped more than 900 Hispanic residents of Iowa City and Johnson County apply for the Direct Assistance Program, including 319 who were originally excluded by restrictive city contracts. Our federal grant experience this year includes the successful handling of a $1.357 million USDA Farm and Food Worker Relief (FFWR) Program grant. More than 600 French-speaking, Congolese residents of Iowa City and Johnson County applied for the FFWR program and received a one-time $600 payment. We have written additional comments on the city's application below and hope to meet with you soon to discuss a collaborative partnership around our shared values and priorities on this issue. Missing Background: Iowa City's history of racially restrictive covenants and exclusionary single-family zoning continues to impact fair and equitable housing decisions today Iowa City is the most diverse city in Johnson County, and more than 25 percent of its population identify as Black, Indigenous, Latino, SE Asian/Island Pacific, or People of Color'. Less than 75 percent of Iowa City residents identify as white -only, not Hispanic or Latino. Fully ten percent are immigrants or refugees without U.S. citizenship. Sixty percent of renters in Iowa City spend more than 30 percent of their income on housing'. Iowa City's acute housing affordability crisis was accelerated by the Covid-19 pandemic and pandemic -related inflation'. Incomes would have to rise by 55 percent, or housing prices drop by 35 percent, for housing affordability to return to pre -pandemic levels. Despite its relative diversity, Iowa City has a history of racially restrictive neighborhood covenants'. Today 80 percent of Iowa City is still zoned as low-density, single-family housing. This prevents the city from increasing its housing supply" and perpetuates the segregation of Hispanic and African immigrants and refugees in the industrial and fringe neighborhoods south of Highway 6 and on the far east and west sides of town. ' Compare this to nearby Tiffin, population 92 percent white, too far from the county seat and city center of Iowa City for essential workers to travel, and currently in the middle of a multi -family construction boom due to the glut of available land for development. `2022 U.S. Census, htless.8yW_W.Cennic-4ovinuickfacts1fant s See footnote 1, Iowa City's draft PRO Housing Application s One Hispanic family that owns a duplex on East Court St confirmed a fact in the city's grant application data by reporting that the cost of a duplex on their block increased from $180,000 in 2018 to $240,000 today, as much as a small house with a yard used to cost. Business Insider, Oct. 6. https:/lmarkets.b usinessinsider.cominewslcom modi ti a slhousi ng -ma rket-afforda ble-income-expensive-bla ek-kn iaht-m ado alfa -rates -fed -2023-10 ' Discriminatory housing practices and the racial wealth gap continue to affect black Iowa Citians, Daily Iowan, Feb 27, 2022. httt2s:ll0aiIyi pwa n.com12022102l271dis criminalary-housi ng-practices-rac is I-wealth-ga p-continue-to-affect-black-iowa ns s A narrow focus on low to mid -income residents without regard to racial composition skews the dataset towards resource -rich downtown because a majority of young college students attending the University of Iowa are technically low to mid -income tenants. A majority of UI students came to Iowa City from outside of the state or country and leave after their studies are completed. POLICYMAP Q ns. . _ 0 ® B dssv® Demographies InconI Spending Housing Lending Gualityof Life Economy Education Health Fed.noIGuidelineo Carnal CnIlEdlOm +LYEN 'J- p u.cu unx e�wxmi�a,,,racsel.c amain G _ ea,.R„zm rxm,.@ - ■ e,xoaa,:,,e� pW n.n ry +M ;uxeae+x eie<x a„„y.xozo 6 i i -•'% ' tet. 3_ I rf! il_>, \,. `'- �. � Dark Purple neighborhoods are < 90% white. Bright & Light Green are 50%African-American or Black African. Medium Purple are 70-90% white. Light Piaple are 50-70% white but have significant Hispanic populations segregated in overcrowded mobile home parks University Heights Is Closer To The Norm Than The Exception Iowa City's single-family neighborhoods are 70-90 percent white10, with three neighborhoods more than 90 percent white, like University Heights": 1. The Longfellow neighborhood east of Summit St. and west of 7th Ave, north of Muscatine Ave and south of E Court St. 2. The Helen Lemme mega neighborhood comprising three contiguous CDBGi2 census tract neighborhoods east of I st Ave, west of Scott Blvd, south of Rochester, and north of Friendship St. 3. A few blocks south of downtown, between E. Court St, S. Clinton St, and S Gilbert St, along part of E Harris St and E Prentiss St. 'g See census data aggregated to attached Policymaps.com equitable housing tool " University Heights took Iowa City's racially restrictive covenants to new heights by annexing itself from the city in 1935. Although it is notorious for its segregation, the Longfellow and Helen Lemme school districts are just as homogeneously white, and most of the rest of Iowa City is nearly as white. ” CDBG is short for Community Development Block Grant, a federal designation neighborhoods receive for the purpose of allocating U.S. Department of Housing and Urban Development community improvement funds Opposition to equitable rezoning in Iowa City has been concentrated among homeowners and neighborhood associations in the most exclusive, well -resourced areas of town'. African-American and Black African Refugees Are Searep-ated In Multifamily Neiehborhoods on the South and West Sides and C)a Off From the City Center by Highway ISE Only three neighborhoods in Iowa City are majority Black or Black African refugee. They are: 1) the high-density, multifamily Lakeside Dr neighborhood southwest of Industrial Park Rd (RM44). 2) The mixed -density, multifamily Broadway St and Taylor Dr neighborhoods south of Highway 6E between Broadway and Sycamore St (RS 12 and RM44). 3) The mid -density, multifamily Pheasant Ridge neighborhood west of Mormon Trek between Melrose and Benton St. (RS 12). ..maa . : », .,. =w,e,. ,a.,� e POLICYMA? ® 'A Q'I neon ® eu+awF~: Demographics IneemesR Spending F.oueieg Lendln9 Duali[yaf Life Eeonemy Educa^ion Health Federal Guidelines Uvra[ed GcllecLon t — �nmvy�. �77)I6 An overlay of Hispanic & Latino poptdations shows that both of fovea City's 50-70% white neighborhoods are actually 1 3rd Hispanic, fvith the ethnic diversity segregated into dense trailer parks near industrial areas on the ftinges of MY limits "According to the city of Iowa City's own survey, opponents of the proposed housing supply code changes are white homeowners. See Oct 4 memo to Planning and Zoning, page 15 tt s:8www.iowa-cit or lWe6Link/D cView.as x7i=2178966&dhid= r o=Ci ofl aCi Hispanic and Latino Immigrants Are egrera_tcd Into Mobile Home Parks On the Outskirts of City Limits Only two census tract neighborhoods in Iowa City are more than 30 percent Hispanic, both of them high-density mobile home parks on the south and far east sides of city limits", They are; I. The Modem Manor and Sunrise Village mobile home parks east of Scott Blvd between American Legion Rd and Highway 6E, in a fringe area outside city limits. II. The Cole's, Hilltop, Lake Ridge, and Lake Ridge Estates mobile home parks near the Iowa City airport, on the industrial southeast and southwest sides (RS 12). A third map overlay on foreign -born households shows the three largest demographic groups living in these five segregated neighborhoods are from Mexico, Honduras, and Middle Africa. Fair and equitable housing solutions should explicitly prioritize these Spanish and French-speaking immigrant and refugee workers, children, and families. Huai ' IT. F •. •.. pump MI ups IN POLICYMAla a Detu eti.:. r n .Laci�< _ m 19Y■ ® eaWnial Demogmphlcs Income.&Spending Housing Lending Qualtyof L(e Economy... Education Health Federal Guidelines Curatedcolleetions f1 r lium. aqua n,mo,ir,usaaum,yaaoirnuagE ,r Ioreynmmeoemmm� uemeeo xDiczcie (i � rruuo� IN zm3amep c a' t s Portion inam Country Population 9-51entA �� the Foreign.HusmPopulation Rnwg Tifiddid101W1202 ease -� Othee1.11-6frio rill n,emein S Harm- - TXN Ip1.q i.`v—/'.T � i T VIA,YCva 4'u1 - Q lvarcF predominant country of birth among the foreign born population, CDBG mapping toot by PolieyMap. Light Green: Honduras. Dark Green: Mexico. Purple: Other Middle Africa. Teal -Blue: Chinese. Light blue: Vietnamese. 14 A group of Nicaraguan construction workers reported paying $5001mo per person for 8 men to share one small trailer at a Lake Ridge Estates mobile home, or $4,000/mo in total. Recommendation #1: Pass Affordable Housing Zoning Code changes on Oct 17 to allow two-family duplex and "missing middle" construction in single-family neighborhoods According to HUD's PRO Housing Fact -Sheet", the purpose of the grant program is to: "Affirmatively further fair housing by addressing and removing barriers that perpetuate segregation, inhibit access to areas of opporttmityfor protected class groups and vulnerable populations, and concentrate affordable housing in under -resourced areas. Frfori v will begiven to avolicants who demonstrate a commitment to and prowess toward overcoming local barriers to affigrelable housine and have an acute demand for affordable housing. " The city's application incorrectly states that Affordable Housing Zone Code Amendments were adopted in 2023: This spurred City Council to adopt amendments to the City's Zoning Code focused on improving housing choice, increasing housing supply, and encouraging affordability. With the adoption of these amendments, several major regulatory barriers to affordable housing that were previously identified have now been addressed. In 2023, City Council adopted several regulatory changes to the City's Zoning Code with the goal of increasing the supply of housing, improving the diversity of housing types, and encouraging affordability. ChaiWes inchuled allowirte duplex and attached single-filntill- uses throughout all lower dettsin• single-family residential zones. While the city has asked its planning and zoning commission and city council to update its housing code16 and change some of its land use limitations, the process has been stalled by Not -In -My -Backyard politics". This organized opposition is fighting to maintain existing barriers which prevent the new construction of two-family dwellings in single-family neighborhoods and limit ADU construction on rental properties. These types of developments are commonly referred to as the "missing middle" in urban and regional planning's. " HUD PRO Housing Summary Sheet, accessed 10.07.23 at 2:54pm at httpsJ/www.hud.govisiter,idfiles/CPD/documentsIPRO-HousJnaSumman-Sheet-2023-08-3l ,pdf 's Oct 30 city council copy, "Ordinance amending Title 14, Zoning Code, to improve housing choice, increase housing supply, and encourage housing affordability (REZ23-0001) (Second Consideration)" 17 According to Homeless hub "NIMBY opposition to affordable, supportive or transitional housing is usually based on the assumed characteristics of the population that will be living in the development. Common arguments are that there will be increases in crime, litter, thefts, violence and that property taxes will decrease. The benefits for the residents of the development are often ignored." httos:ihvww.home lessh ub.calsolu ti onsfaffordabl a -ho us ingln i m bV-nal-mv-backva rd 18 A new row of townhouses on Preston lane is $1.6 million for five -units, $340k each for 1,700 sq ft, 3 bedrooms, 2 -car garage, 1.5 bathrooms, and modern cabinets and appliances. This type of construction would presumably be cheaper in the city if strong new housing supply code changes were made and local governments subsidized part of it httos:ilwvwv.realtor.mmireaiestateandhomes-searchilowa-City fAltyoe-multi-family-homeishw-nc Because of organized pressure from neighborhood associations, it will be difficult for the city of Iowa City to fully pass any housing code changes at all before the PRO Housing application is due on Oct 30. The code changes that city council will consider on Oct 17 and Nov 6 may now include concessions that will perpetuate local barriers preventing mid -block duplex construction and new ADU's on rental property. Weakening the proposed housing supply code changes on these points will take Iowa City further away from the two-family, "missing middle" zoning we need, not closer to it19. HUD anticipates approving $85 million in PRO Housing funds to only 20 entities, an average of just $4.25 million per award. The city of Iowa risks its competitive edge for federal funds without taking stronger action now to end its historic and ongoing housing segregation policies20. Recommendation #2: Increase the city's matching leverage from 52 percent to 100 percent The maximum PRO Housing award to cities is $10 million, The city of Iowa City requested $5.6 million, and pledged to contribute $2.85 million more in local matching funds, for a total budget of $8.5 million. Iowa City's 52 percent matching proposal is low compared to the resources available, the acute scarcity of housing, and rival PRO Housing bids from other governments21. We recommend the city of Iowa City fully match the $5.6 million in requested PRO Housing funds dollar for dollar, by increasing the size of its committed leverage by an additional $2.75 million. Increasing the city's commitment from $2.85 million to a matching $5.6 million would raise the total potential impact of the fair housing stimulus package by 25 percent, from $8.5 to $11.2 million. 19 Compare this with St. Paul, MN, which legalized ADUs in 2016 and is poised to allow triplexes and quadplexes in almost every area of the city h ttosl/www. m i nnpost.com/metrol20231101st-oau l -poi sed -to- allow -triplexes -almost -a nwvhere-in-the-city-deba te-less-h e ale d-than-in-minnea ool Is! 2° For more information on the city's proposed two-family rezoning of single family neighborhoods, see page 4, Aug 2 memo to council, and Figure 3: Map of Zones that Currently Allow Duplex and/or Attached Single -Family Usesht1r)&/fd3n9v02raazwoo_cloudfront.netlicaovla0982924-1 b5f-11 ee.b4fc-0050569183fa-cal d6c72-Oa44-46fl-87e b-6gd52bdl03e.5-16,959,32244.odf The state of Hawaii committed 85 percent leverage in its draft application. The city of Owensboro committed to pooling PRO Housing funds with ARPA-HOME funds and a 25 percent developer match. State of Hawaii draft PRO Housing Application httns-ll0nvemnrhawaii.gnv6 mntenthipinadef2n23710fr1Pfi;n Hilt) PRr]-Hnrsinn-grant-A inatin DRAFT 220_2 3-10-03.ndf City of Owensboro Pro Housing Application https:llowensboro.oro/assets/f les/0wensboroProFtousing2D23,pdt This additional investment could be used to address one of the shortcomings of the city's application, its lack of a plan to "build capacity of'locat nonprofit organizations to increase housing supply," and target tailored programs and "areas of opportunity for protected class groups and vulnerable populations 12 who are "unlikely or least likely to apply absent such efforts", such as immigrant and refugee workers. At its Sept. 7, 2021 Work Session23, the Iowa City City Council signaled support for a strategic investment in Affordable Housing Initiatives using up to $6 million of its $18.3 million in local fiscal recovery funds from the American Rescue Plan Act (ARPA). A total of $4.3 million in city ARPA funds remain unencumbered, with $0 directed to or spent on affordable housing. Iowa City does not currently have $2.85 million in its Affordable Housing Trust Fund2°. If the PRO Housing application is approved by HULL, the city will likely direct $2.5 million of its ARPA dollars into the Affordable Housing Trust Fund, in order to fulfill its pledged leverage. However, an additional $1.8 million of ARPA already pre -approved for affordable housing initiatives would still be available. In addition, the balance of the city's separate Riverfront Crossings Affordable Housing Trust Fund is currently $5.8 million". Millions more could be transferred from this account if necessary to raise the city's PRO Housing match to a fully vested $5.6 million. A 25 percent developer contribution equal to nearly $2 million could also be negotiated with the largest real estate interests, home builders, and construction companies. Lastly, a final $400,000 could be saved and redirected to additional pilot projects for immigrant and refugee workers by cutting the proposed parking and regional housing studies. We urge the city of Iowa City to consider the present moment as a once-in-a-lifetime opportunity to triple the impact of affordable housing initiatives, by leveraging all available ARPA, PRO Housing, and Riverfront Crossing dollars together into one comprehensive stimulus package. 22 PRO Housing Summary Sheet, ibid 23 American Rescue Plan Update to Iowa City City Council, August 31, 2023 h 7/Ie islarweb- rcduction.s3.amazanawsmm/u Inds/attachmenU df12l46O74/Memo from Grants Mana er - American Rescue Plan Act Uodale.odt 2' Telephone conversation with city planning staff, Fri, Oct. 6, 10:25am-10:40am. 2s As noted in PRO Housing application Exhibit F: Leverage, hltos:l/iowacityta.orad.00vaccess.orelhomelshowdocu ment?id=1666 Recommendation #3: Consider future higher density rezoning at 1) the west 1500 block of Lower Muscatine Rd and 2) the NE corner of Taft Ave and Lower West Branch Rd. We support City -Initiated Higher Density Rezoning and an update to the city's Comprehensive Plan. We recommend the city include in its higher density rezoning analysis the possibility of high-density, multifamily rezoning on the block directly across from the old Kirkwood Community College, specifically 1807, 1813, 1819, 1825, and 1831 Lower Muscatine Road. The west side of the 1800 block an Lower Muscatine Rd is a perfect spot for high-density, multifamily rezoning to reduce neighborhood blight and build aJm7r and equitable housing option for immigrant and refugee workers Most of these rental properties along this strip are in poor, marginal, or defective condition and could be purchased, demolished, and rebuilt into deeply affordable supportive housing for immigrants and refugees. Doing so would improve the overall quality of the neighborhood, fulfill unmet needs in the community, and help achieve affordable housing goals`6. We also suggest the city look at rezoning Parcel 0908251002 on the NE comer of Taft Ave and Lower West Branch Road for high-density, multi -family use. We have consulted with the current landowner and a number of other Southeast side churches on the possibility of a feasibility study to convert this parcel of agricultural land into a 200+ -unit, deeply affordable supportive housing community, authentic ethnic enclave, cooperative eco -village, and "Agri -hood" for immigrant and refugee workers. "Under two-family zoning, 8-10 townhouses of 5 bedrooms each. Under multi -family zoning, 100 or more deeply affordable supportive housing units could be possible. Rezoning both of these areas for high-density, multifamily development could help the city achieve its goals to increase housing supply, the land available for high density housing, and housing affordability, particularly for those unlikely or least likely to apply absent such efforts. Native prairie is being replaced by large & expensive single-famt`ty deretapment along the northside of Rochester Ave and east of the First Ave extension. But Parcel 0908151002 on the NE corner of Taft Ave and Loner PVest &ranch Rd is a church -owned, farmer -rented corn and soybean field It could potentially be snore productive and restorative if the land were redeveloped for use as an authentic ethnic enclave, agri-hood, and sustainable ecovillage for immigrant and rejirgee workers to Live and work..4 loge -scale housing and worker cooperative would become a model of n'ansforntative, fair, and equitable housing than spurs economic growth, creates jobs close to workers' hontes, and enriches both the city:s culture, entrepreneurship, and biodiversity. Recommendation # 4: Increase The Budget For the Housing Development Division and Pilot Affordable Housing Project(s) by an Additional $2.75 Million and Target Pilot Projects To Underserved Communities of Color Unlikely or Least Likely To Apply, Such As Immigrant and Refugee Workers Who Don't Speak English. We applaud Iowa City for its plan to create a city -led Housing Development Division and Pilot Affordable Housing Project. We recommend an additional $2,750,000 investment in additional pilot projects that build local nonprofit development capacity and deeply affordable supportive housing for immigrant and refugee workers. For example, on the 1800 block of Lower Muscatine Rd or on Parcel 0908251002 on the northeast corner of Taft Avenue and Lower West Branch Rd. According to the U.S. Department of Housing and Urban Development (HUD): ff the applicant proposes to use PRO Housing funds to find housing units, the applicant must discuss how those benefits will be affirmatively marketed broadly throughout the local area and nearby areas to a etnngra�_hic ginunc that would be unlikelr or !Past likeh, to a,Wrtly absent such CCfQrts". Working-class, immigrant and refugee families whose primary language is not English are the most unlikely or least likely to apply for new public housing programs absent such efforts". In addition, without additional citywide high-density rezoning, creating new affordable housing pilot projects only in the Riverfront Crossings and South Districts risks continuing the trend of over -concentration of multi -family homes in industrial, resource -poor areas. Because of record -high prices, new home construction only in these areas could lead to gentrification. Without citywide high-density rezoning, potentially displaced families could have nowhere else to go. Recommendation #5: Increase Public Outreach and Education About the Accessory Dwelling Unit Incentive Program, Housing Development Authority, and Affordable Housing Development Pilot Projects. We support the proposed Accessory Dwelling Unit Incentive Program and recommend the city increase public outreach and education about its PRO Housing platform. A demonstrated commitment to increasing public investment in affordable housing is one of the best ways to build a consensus around the necessary housing supply code changes and blunt opposition to desegregating the city. This would likely have a much bigger impact than more studies. Recommendation #6: Commit to an inclusive engagement framework that is backed up by concrete action, not just rhetoric The city's application states that the key to ensuring success of its PRO Housing plan is an inclusive engagement framework that prioritizes the voices of low-wage workers who don't speak English. Yet these very same voices were left out of the PRO Housing application process until the final 15 days, after a 48 -page application was already drafted that did not include fair and equitable housing developments for immigrant and refugee workers who are unlikely or least likely to apply absent such efforts. RightsCivil -• Housing guide, " See also Recommendation 6: inclusive public engagement, for a discussion on the preventable shortcomings of last year's Direct Assistance Program, which saw hundreds of those unlikely or least likely to apply go without. We recommend the city adjust its PRO Housing plan to take this into account. There is currently a nationwide migrant surge making the affordable housing crisis worse for everyorcz'. Immigrant workers face significant structural barriers to housing and health equity due to multiple intersecting factors such as race, native language, legal status, lack of credit, lack of rental history, undiagnosed trauma, and the type of dangerous work they perform in un -unionized essential industries. According to the National Council on Family Relations, a nationwide advocacy group that lobbies for culturally -sensitive housing programs: Although a crisis for all U.S. residents, households of color are substantially more likely to be cost -burdened when it comes to housing. Immigrants are more likely than native-born individuals to be cost -burdened, more likely to live in poor or hazardous housing conditions, and more likely to live in situations of overcrowding30. Newly -arrived asylum -seekers often have to wait for as long as two years after arriving in Iowa from the border before they receive legal authorization to work. Because of a backlog of immigration cases exacerbated by the COVID-19 pandemic, the U.S. Department of Homeland Security is dismissing many refugee's cases for asylum. While an immigration case dismissal may protect some families from potential deportations, a case dismissal also ends all pathways to legal work authorization or permanent status. Past Efforts Have Missed lmmierant Workers Livine In the Shadows Iowa City's previous commitments to both affordable housing and permanent supportive housing, while laudable and worthy of praise, have not prioritized marginalized communities of color such as immigrant and refugee workers and families. Past efforts and public -nonprofit partnerships have tended to focus on individual city residents who visibly experience homelessness in public - living in camps, squats, and shelters, and panhandling downtown or on the highway - many of whom have documented disabilities that lead to run-ins with the police, such as substance abuse and drug addiction. These efforts have been noteworthy but have also led to a consolidation on the southside of shelters, supportive housing, and service providers, further concentrating poverty in the most low -resourced, multifamily neighborhoods the furthest away from the city center. 2' Axios News Analysis. Sept. 23. httos:llwww.axios.com/2023109i231housino-ensis-migrant-immiaranis-homeless 30 A Place to Call Home: Housing Challenges for Immigrant Families, Summer 2020. hU ns:llwww. nefr.orglncfr-reoortlsum mer-2020/0lace-ca! I-home-housinac hal I enaes-among-immigrant-famiii es Meanwhile, immigrant workers and refugee families with children who are not coded as public nuisances continue to suffer in private, excluded and left behind. Hundreds of immigrant and refugee workers in our community live in overcrowded, dilapidated conditions, and are routinely missed by street teams and so-called `evidence -based' data collection". This type of exclusion from meaningful participation in the public decisions that affect their lives goes far beyond the city's long and unaddressed history of racially restricted neighborhoods. Last year, hundreds of French-speaking Congolese meatpacking plant workers living in Iowa City, Coralville, and Johnson County were unaware of the joint city/county Direct Assistance Program and the opportunity to apply for and receive $1,400 household stabilization payments from this innovative local ARPA program'2. Rather than increase public outreach and engagement in French and African refugee communities, some county officials instead blamed the Congolese workers for not reading the news in time to apply. Another example to learn from was in early 2022, when the city of Iowa City pledged to invest $1.5 million in the new Direct Assistance Program, but initially spent less than $800,000, leaving 319 city residents temporarily out of the promised relief". It was only after directly impacted Hispanic mobile home park residents spoke out at local council meetings and the city reversed course and raised its Direct Assistance Program spending to a little over $1.1 million, still hundreds of thousands of dollars short of its original commitment34. "To change this and gather missing public health data, Escucha Mi Voz Street Teams will canvas Spanish and French-speaking neighborhoods this Fall with a rapid response community needs assessment and whole worker health survey. az Escucha Mi Voz Census finds 500+ Congolese residents left out of Direct Assistance Program, Daily Iowan, Nov 28, 2022. s•1ldailyiowan rnml7n77H 117AItysnn-fends-emnlnvpes-demand-atldilinna6ralief-funds.from.johnsnn.cmmfy-hoard of-suoervisors! " Iowa City agrees to fully fund 319 residents left out of direct assistance program, Cedar Rapids Gazette, Aug 17, 2022 hthl>�s:llw.w ,thegazette.comllocal-eovernmanbiowa-city-agrees-Io-ful4v-fund-319-residents-left-out-cf-direct-assistanc e-orograrn 34 Recall that hundreds of Congolese workers were never timely notified and could have benefited from the leftover funds, but were told the deadline had expired and there was nothing public officials could do. Use Past Experiences to Do Better Now "To the individuals who have endured this, I wish that we could turn back the hands of time and there are a few things we could have done different so that we weren't in this position. I will learn from this," Iowa City Mayor Bruce Teague said at the time35. The city's pledge to spend $6 million of ARPA on affordable housing initiatives may have been conditioned with an asterisk, on the premise that only $2.5 million of ABPA would actually have to be invested if the city's $5.6 million PRO Housing application was also approved. This is similar to the Direct Assistance Program scenario last year, when the city publicly committed to invest a much larger amount in the household stabilization program than it actually ended up spending on it. If for some reason, HUD were to approve less than $5.6 million, the extra $1.8 million in ARPA money would still be there to help fill the gap. The Biden-Harris Administration encourages36 co -mingling of PRO Housing and ARPA funds in order to have the biggest impact possible on fair, equitable, and affordable housing. " Iowa City compromises with Johnson County to fund 319 residents left out of direct assistance program, Iowa City Press -Citizen, Aug 25, 2022. hl10s:llwww.Dress-cilizen.comistorylnews12022108/2�fgwatti�n�,-,�phnsn_ n-rnunlV-camoromise-direct-assistance-nr ogramf7664436001/ " White House 2022 Affordable Housing Action Plan, https,i/www-whitehn use.uov/briefing-roomtstatem a nts-re lease s12022105116/pre s i dent -bide n -announces -naw -actions -t o -ea se -the -burden -of -ho using-costsf To improve transparency and inclusive engagement in the future, we ask the city to: 01. Proactively reach out to immigrant and refugee communities for meaningful input and feedback at the beginning of the process, not just in the final 15 days. 02. Recognize as permanent stakeholders and proactively reach out to member -led community organizations with a demonstrable base of support in faith -based, immigrant, and refugee communities and a proven track record of success. 03. Tailor some affordable housing and supportive housing initiatives specifically for the most marginalized low-income residents, who historically have not benefited from public investment as much as others, such as immigrant and refugee workers. More than 40 Escucha Mi Voz members attended a fair housing meeting in Spanish on Oct 10 at the Iowa City Catholic Worker Nouse. Conclusion: Iowa City's PRO Housing Grant Application Is Needed to Help Address the Acute Scarcity of Affordable Housing in Johnson County Escucha Mi Voz Iowa members and Iowa City Catholic Workers support the city's PRO Housing application and we have provided some feedback with the hope of strengthening it. Our guiding values are the stories and lived experiences of our members, as well as the Gospel, specifically the Works of Mercy as found in Matthew 25; to house the homeless, feed the hungry, heal the sick, and visit the prisoner. Catholic Social Teaching informs us that public policy should have a preferential option for the poor. The historical Jesus of Nazareth, who we call Christ, was born a homeless refugee and had nowhere to lay his head. When we offer hospitality to those in need, we entertain angels. We recommend HUD to approve the city of Iowa City's final PRO Housing application after it is submitted. If there is anything else beyond these comments we can do to support city and federal government efforts on this issue, please let us know. Thank you again for your commitment to increasing the supply of affordable housing in Iowa City. We very much appreciate your work and look forward to meeting with you soon. Sincerely, Jaime Roberto Betancourt Co -President, Escucha Mi Voz Iowa Coordinating Committee 1414 Sycamore St Iowa City, IA 52240 Construction worker, father, and asylum -seeker from Honduras Daniana Trigoso-Kukulski Co -Director, Escucha Mi Voz Iowa 113 S Johnson St Iowa City, IA 52240 Full-time, paid staff: Former executive director, Fe y Justicia Worker Justice Center in Houston, Texas David Goodner Co -Director, Escucha Mi Voz Iowa 35 N Westminster St Iowa City, IA 52245 Full-time, paid staff` Iowa City native. Juan Manuel Galvez Ibarra Owner and publisher, EI Tmeque Magazine 265 Juniper CT North Liberty, IA 52317 Public worker, father, LatinoFest sponsor, and immigrant from Mexico Clinton Dimambu Escucha Mi Voz member 1819 Lower Muscatine Road Iowa City, IA 52240 Refugee from the Democratic Republic of the Congo, tenant in rental home Ninoska Campos Escucha Mi Voz member 18 Summary St Iowa City, IA 52245 Essential domestic, hotel, and restaurant worker, asylum-seeker.from Honduras, mobile home owner Emily Sinnwell Trustee, Iowa City Catholic Worker 35 N Westminster St Iowa City, IA 52245 Nurse practitioner, mother and homeowner Maureen Vasile Iowa City Catholic Worker Advisory Committee 2434 Rushmore Dr Iowa City, IA 52246 Retired health-care worker and condo owner Item Number: 10.d. I CITY OF IOWA CITY COUNCIL ACTION/REPORT October 17, 2023 ` Resolution i support of the Israeli leaders and p o� as they defend against Hamas terrorist attacks on the sovereign natio �f Israel Prepared By: Eric Goers, C�' Attorney Reviewed By: Geoff Frui1City Manager Fiscal Impact: NIA Staff Recommendation: No re ommendation Attachments: Israel Resolution 2023 Resolution No. Resolution in support of the Israeli leaders and people as they d�end against Hamas terrorist attacks on the sovereign nation of I fael. Whereat R n October 7, 2023, Hamas terrorists launched a coordinated, uZ eked attack on Israel from�e ,Gaza Strip; and Whereas, Hamdg has fired thousands of rockets toward Israel's major p n centers, breached Israel's borders, infiltrated Israeli communities and kidnappe over 130 civilians from numerous nations, killed more than 1,200 Israelis including babies, ildren, and the elderly, and wounded over a tlNusand more; and Whereas, at least twenty-fiive Americans have been at the hands of Hamas; and Whereas, this is the most significant attack on Israel sinc the Yom Kippur War, which was launched 50 years ago nearly to'the day; and 1 Whereas, more than 360,000 reserv��soldiers we called to defend the state of Israel and Israeli Prime Minister Benjamin Netanyahu dec red that Israel was at war to defend itself; and Whereas, all innocent lives should be proud from harm during hostilities; and Whereas, a humanitarian corridor shou)d be opined by Egypt to ensure food, medicine, clean water, and other basic necessities c�ri reach civilian populations. Now, therefore, be it resolveZY e City Council of t�1e City of Iowa City that we: 1. That the City of Iowanequivocally condeml Hamas for this deplorable and unprovoked attack o� Israel; and \\ 2. That the City of lowla City stands in solidarity with the'�$tate of Israel and condemns this unprovoked attack by Hamas against Israel and its citizens and supports Israel's right to defend itself and protect its citizens from indiscriminate 41ence and terrorism; and 3. The City of Igwa City unequivocally supports the right of thele tate of Israel to exist as a sovereign Vnd independent nation, with the full recognition of`(ts borders and territory; and 4. The City of Iowa City calls upon the nation of Egypt to open a hurhanitarian corridor to ensu,0food, medicine, clean water, and other basic necessities call reach civilian popo ations. i11 Pas /e�'and approved this day of 023 I 1 Mayor Attest: It was moved adopted, and Clerk roll call there was: Approved by CAy Attomey's Office seconded by the Resolution be Ayes: �� Nays: Absent: ` Alter / Bergus j Dunn Harmsen Taylor Teague ` Thomas