HomeMy WebLinkAbout2016-06-21 Public hearingAffordable Housing
Success in providing
affordable housing is the sum
of small efforts, repeated
project by project
NDS
Proposed Riverfront Crossings
Inclusionary Affordable Housing
Ordinance -----
----------------------
South
{ r 11 1
t r South Downtown �1 1
vv II 11 i
1
\ 11
\ Un+vcrsitoo, i J 1) 1
District
II
\
it Central Crossings r_ �� 1 e
it
_ f
it j G Ibert
1 DistrrU
West \ V Park
{ I :
jRjvvrfront 1 to I i�1 1
1 \ t
_ 1 "�
1 AV j Gilbert
/
t 1 1 1
Sir
I / 1 1 raa
� t
s
Inclusionary Affordable Housing
Requires that a certain percentage of new housing to be
affordable.
Defines affordable housing.
Creates housing choice for low income families.
It is as much about "where" affordable housing is located as
it is about producing affordable housing.
Linked to "areas of opportunity ' -- additional development
capacity, upzoning, form -based code, option for TIF, etc.
Relies upon the private sector to produce affordable housing.
Affordable housing units are produced only to the extent that
overall development proceeds.
Designed so the that incentives/benefits offset cost associated Nis
with affordable housing units.
Principle #1 - Provision of inclusionary
housing should be mandatory, not
voluntary
When a property is up -zoned a Riverfront Crossings
zoning designation —The Riverfront Crossings Zone
allows a higher density of residential development
When the City participates financially (TIF) in a
development that includes residential units regardless
of zoning designation (adopted by the City Council
5/3/16 to require rental units to be targeted at 60%
AMI; owner -occupied units at 110% AMI)
NDS
Principle #2 - A percentage of units in a
development should be set aside for
housing that is affordable for a period of
time
When the City is not participating financially in a
development, 10% of the residential units must be
affordable for a minimum of 10 years
When the City is participating financially (TIF), a
minimum of 15% of the residential units for a
minimum of 20 years, or the term of the
development agreement whichever is longer
NDS
Principle #3 - Project size should be
considered and a threshold established
for a set-aside requirement
Developments that include 10 or more residential
units are subject to the set-aside requirement
Requires most new developments in the
Riverfront Crossings District to include
affordable housing while also recognizing that
inclusionary housing for smaller projects is not
practical orfinancially feasible
NDS
Principle #4 - The method used to meet
the affordability requirement is the
developers option
When taking advantage of the up -zoning, the
developer must choose one of the following options to
meet the requirements of the Riverfront Crossings
Zone:
On-site rental affordable housing
On-site affordable owner -occupied housing
Fee -in -lieu of payment, to be used for affordable
housing purposes in the Riverfront Crossings
District
NDS
Principle #5 -Alternatives to on-site
affordable housing and/or fee -in -lieu
should be provided
Off-site affordable housing in the Riverfront
Crossings District*
Contribution of land in the Riverfront Crossings
District, for an affordable housing project*
*Use of these options require a City
determination that the affordability
requirement cannot be met on-site
NDS
Principle #6 - Funds created from the
`Fee in lieu' contributions must be used
to support affordable housing purposes
in the Riverfront Crossings District
The `Fee in Lieu' (FIL) is the gap between market -
rate project value, and project value with the
required affordable housing units - the proposed
FIL is $80,872
Funds may be used for purposes such as down -
payment assistance, grants and/or loans to non-
profit agencies for affordable housing production,
gap -financing for affordable housing projects in the
Riverfront Crossings District, etc.
NDS
Principle #7 - Affordable Housing
should be provided to households of a
qualifying income level
Renter households not to exceed 60% Area Median
Income (AMI)
Owner households not to exceed 110% Area Median
Income (AMI)
NDS
Other Information about proposed
ordinance
For rental housing, HUD Fair Market Rents would be
used as maximum rent levels
For owner -occupied housing, HUD HOME
Homeownership value limit would be used (currently
$218,000)
Affordable units would be required to be at least 80%
of the size of market -rate units, and have comparable
number of bedrooms
Affordable units must be distributed throughout the
development
No parking requirement for required affordable units NDS
Projects designed and utilized for elderly/disabled not
required to provide an affordable housing set-aside ■
Additional Steps
Amend Affordable Housing Location Model to exempt
Riverfront Crossings District (requires City Council action)
Establish the 'Fee in Lieu' (FIL), based on the difference in
project value between a 100% market rate project and a 10%
affordable project (requires City Council action)
Develop administrative rules, forms and documents with the
goal of being ready when the ordinance goes into effect
August 1St
If adopted, all new residential projects of 10 units or more
with Riverfront Crossings zoning will be subject to the IH
ordinance
Thank you to the Ad -Hoc Inclusionary
Housing Committee
Tracey Achenbach, Housing Trust Fund of Johnson
County
• Maryann Dennis, Housing Fellowship
• Chad Keune, Homebuilders Association President,
2014
• Brad Langguth, Hills Bank and Trust
• Scott McDonough, Iowa Valley Habitat for Humanity
Chair, 2015
• Sally Scott, Johnson County Affordable Homes
Coalition
• Glen Siders, Siders Development
NOTICE OF PUBLIC HEARING
Notice is hereby given that a public hearing will
be held by the City Council of Iowa City, Iowa, at
7:00 p.m. on the 21 day of June, 2016, in Emma
J. Harvat Hall, 410 E. 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; at which hearing the
Council will consider:
• AN ORDINANCE AMENDING CITY
CODE SECTION 14-2G TO ADOPT A
RIVERFRONT CROSSINGS
INCLUSIONARY HOUSING (IH)
ORDINANCE.
• AN ORDINANCE AMENDING CITY
CODE TITLE 14, ZONING CODE, TO
ESTABLISH A NEW USE, COMMUNITY
SERVICE — LONG TERM HOUSING,
AND ESTABLISHING PARKING,
DENSITY, AND PROVISIONAL AND
SPECIAL EXCEPTION CRITERIA FOR
SAID USE.
Copies of the proposed ordinances and
resolutions are on file for public examination in the
office of the City Clerk, City Hall, Iowa City, Iowa.
Persons wishing to make their views known for
Council consideration are encouraged to appear
at the above-mentioned time and place.
MARIAN K. KARR, CITY CLERK
N
O
Prepared by: John Yapp, Dev. Srvs. Coor., 410 E. Washington Street, Iowa City, IA 52240;319-35252
ORDINANCE NO.
C�
-Y,
ORDINANCE AMENDING CITY CODE ARTICLE 14213, RIVERFRONT CROSSINGS FORM BASED
DEVELOPMENT STANDARDS, TO ADD A RIVERFRONT CROSSINGS AFFORDABU HOUSING
REQUIREMENT
WHE EAS, the Iowa Legislature has adopted "Iowa S art Planning Principles", codified in Iowa Code
Section 18 .1, which principles include, among others, eff rts to facilitate the revitalization of established
town center nd neighborhoods by promoting developme that conserves land, protects historic resources,
promotes ped Irian accessibility, and integrates different ses of property, encouraging diversity in the types
of available ho ing, and promoting the location of ho sing near public transportation and employment
centers; and
WHEREAS, the we Legislature has evidenced s pport for mixed income neighborhoods by requiring
that all cities consider a residence of a recipient of ervices under a home or community-based services
waiver as a permitted re ' ential use of property fort purposes of zoning; prohibiting cities from requiring a
special exception or varian for such a use; and pr hi ng cities from establishing limitations regarding the
proximity of one such residen to another (Iowa a Section 414.32); and
WHEREAS, the City Cou it adopted Stra gic Plan intends to foster a more inclusive, just and
sustainable Iowa City, and sets mong its to priorities the encouragement of a vibrant and walkable
urban core with diverse housin types an price points for a variety of income levels, and the
advancement of social justice and ra 'al equi affordable housing programs; and
WHEREAS, permanent and long- rm ousing in proximity to the source of employment serves to
stabilize the community, reduce regi I traffic congestion, and minimize impacts on adjacent
communities; and
WHEREAS, the City has been gra d e power to adopt regulations and restrictions on the density
of population, the location and use of b ildings, structures and land; and
WHEREAS, the City has divide the city to districts it has deemed best suited to carry out the
purposes of the state and municipal oning codes nd has adopted specific regulations and restrictions on
the construction and use of buildin s, structures an and within the distinct districts; and
WHEREAS, the 2007 Iowa Ci MetroArea Afford Is Housing Market Analysis ("2007 Market Analysis")
examines existing and future n d for housing among I r income households;
WHEREAS, this 2007 rket Analysisfound, a ng other findings, that housing prices have
outpaced income; that man cost -burdened house holda active members of the region's workforce
whose salaries are not kee g pace with housing costs; th the market is producing many more higher -
priced housing units than oderately priced units; and that p ojected housing construction activity is not
expected to address affor able housing needs; and
WHEREAS this 20 Market Analysis recommends adopt g an inclusionary zoning ordinance to
meet the significant un at need for affordable housing; and
WHEREAS, the 15 Iowa City Metro Area Affordable Housi Market Analysis, an update to the
2007 Analysis prep ed by the Metropolitan Planning Organization Johnson County and the Housing
Trust Fund of Joh on County, ("2015 Market Analysis") found that tween 2000-2012, the majority of
housing stock gro114h was single-family housing; and
WHEREAS, his 2en015 Market Analysis further found that the pro ortion of renters in Iowa City
considered cos burded (paying more than 30% of their household gro annual income on rent) and
severely cost urdened (paying more than 50% of their household gr s annual income on rent)
increased be een 2000 and 2012; and
WHER S, this 2015 Market Analysis found homeowners in Iowa City are increasingly cost-
burdened- and
W REAS, this 2015 Market Analysis concluded that real median housing values increased between
2000 nd 2012 by an average of 15.6 percent while real median household income decreased by nearly 7
p nt during that same time; that the number and percentage of families in poverty in the urbanized
area increased from 1,038 (6.2 percent) in 2000 to 1,684 (8.2 percent) in 2012; and in 2013 the hourly
wage required to afford a two-bedroom apartment in the urbanized area was $16.40.
Ordinance No.
Page 2
WHEREAS, this 2015 Market Analysis recommended, among other strategies to increase affordable
housing opportunities, that the City rezone land to allow for more multi -family residential uses and adopt
an inclusionary zoning ordinance; and
WHEREAS, in 2014, the City contracted with the University of Iowa Public Policy Center to study
impediments to fair housing within the City; and
WHEREAS, the resultant report from the Public Policy Center, titled "Analysis to Impediments to Fair
Housing Choice -2014" identifies racial and ethnic concentrations of housing in Iowa City as an impediment
and recommends adopting an inclusionary zoning policy for new ownership and rental housing development
as a method to overcome this impediment; and
WHEREAS, the City Steps 2016-2020, Iowa City's Five -Year Consolidated Plan for Housing, Jobs and
Services for Low -Income Resid ts, adopted on May 15, 2015, ("City Steps") is intended to guide funding
decisions for housing and commu 'ty development activities, particularly those funds received through the
federal CDBG and HOME grant prog ms; and
WHEREAS, the City Steps ident' s the high percentage of housing cost -b dened households as the
most common housing problem with the City, identifies that the number of housing cost -burdened
households and declares that the expan ion of affordable rental and ho r housing opportunities is of
the Citys highest priorities; and
WHEREAS, the lack of affordable ho sing makes it difficult for low-inc me individuals and families
with children to maintain a stable househo ; and
WHEREAS, high housing costs, physi I deficiencies, unstable nei borhoods, and overcrowding all
contribute to local homelessness; and
WHEREAS, the availability of public tran portation to adequate] ink lower income households
located outside of Iowa City to employment o rtunities within th ity is inadequate; and
WHEREAS, the City Steps Plan indicates at one of the pri ary areas where people face housing
affordability challenges is near the University pus and the ty's urban core; and
WHEREAS, the Riverfront Crossings Distri t is ripe for ixed-use development, including residential
uses, due to the adoption of the Riverfront Crossings For Based Code which allows a higher density of
development than was previously permitted; and i
WHEREAS, the mix of uses allowed under the Ri rfront Crossings Form Based Code is intended to
encourage a walkable, pedestrian -friendly area where esidents can work, live and play, and will increase the
need for housing that is affordable to the workforce; d
WHEREAS, market forces would not likely r ult.in the creation of affordable housing without the City
requiring the creation of affordable housing in n developments within the Riverfront Crossings District; and
WHEREAS, The Riverfront Crossings Di ict is welksituated to support a mix of housing due to its close
proximity to downtown Iowa City and the iversity of Iowa campus, its existing and planned mix of uses,
convenient access to public transit a municipal parking facilities, and it is ripe for higher -density
development under the Form Based C e; and
WHEREAS, the Planning and ing Commission has %viewed the proposed Zoning Code amendment
for an Inclusionary Affordable Ho ng Ordinance and has recommended approval by a vote of 6-0.
NOW, THEREFORE, BE IT DAINED BY THE CITY COUNCIL OF THE CITY OF IOWA CITY, IOWA:
SECTION I APPRO AL. City Code Article 14-2G, Riverfront Crossings Form Based Development
S/Affordab
by a nded by adding a new section as follows:
_o
1Housing Requirement:
ArnTis chapter is to:;e a more inclusive, just and sustainable Iowa City; c�
w
2. Reduce concentrations of low and moderate income households in Iowa City;
3. Increase the mufti -family housing stock near the University and the City's urban core;
4. Promote the construction of housing that is affordable to the community's workforce;
5. Increase opportunities for people of all income levels to work and live near key employment
centers;
Ordinance No.
Page 3
6. Promote a balanced community that provides housing for people with diverse income levels;
7. To reduce the number of housing cost -burdened households; and
8. Promote household stability and reduce the threat of homelessness.
B. Definitions
For purposes of is Code Section 14-2G-8, the following definitions shall apply to these terms:
Affordable Hous g: The collective reference to Owner -occupied Affordable Housing and/or Affordable
Rental Housing, as hose terms are defined herein. /
Affordable Rental Hosing is housing that is rented for no more fhan the HUD Fair Market Rent for the
Iowa City, IA HUD Me FMR Area, as adjusted annually, and rey{ted to an Income -eligible Household.
Owner -occupied Afford ble Housing is housing that is sold V a price no greater than the most current
published Housing and Urbpn Development (HUD) homed rship sale price limit for existing and new
homes to an Income -eligible ousehold.
Income -eligible Household: household is an incom igible household for purposes of purchasing
an Owner -occupied Affordable ousing dwelling unit 'rf t t household has an annual income equal to or
less than 110% of the area me n income (AMI) for I a City, as adjusted annually. A household is an
income -eligible household for lea 'ng Affordable Reny Housing if that household has an annual income
equal to or less than 60% of the AfA for Iowa City, as/adjusted annually.
C. General Requirements
Affordable Housing
Except for developments providing affon
City executed prior to June 6, 2016, and
Housing, any development containing tet
zoning designation is required to provi
greater than ten percent of the total n
dwelling units result in a fractional n be
for any fraction over fifty percent t estat
Any exempt Elder Apartment H sing d
compliance with the Title 14 Zo ng Code
2. Methods of
The Affordable He
following methods:
Affordability
housing pursuant to a development agreement with the
pt for developments exclusively providing Elder Apartment
o more dwelling units on land zoned a Riverfront Crossings
Aff rdable Housing dwelling units in an amount equal to or
;r o welling units. Should ten percent of the total number of
this fevction shall be rounded up to the nearest whole number
sh the equired number of Affordable Housing dwelling units.
velopm is shall be subject to periodic inspection to insure
,oulation of such use.
may be
i) on-site weer -occupied affordable housing;
ii) on-siljif Affordable Rental Housing;
iii) a fiapf in -lieu contribution to an affordable housing
iv) olysilte affordable housing, and/or
v) gibritribution of land.
If the owr)6r desires to utilize methods iv or v, the owner must
feasiblyfie satisfied, as reasonably determined by the City.
3. / Affordable Housing Agreement
the provision of one or more of the
that methods irih and iii cannot
CJ
Upon rezoning to a Riverfront Crossings zoning designation,the pr perty owner shall enter into an
affordable housing agreement with the City establishing which meth or methods it will utilize. This
agreement must be executed prior to the dose of the public hearingthe rezoning ordinance. Upon
application for a building permit to construct any development for whit Affordable Housing is required,
the property owner shall enter into an agreement with the City detailing how it will satisfy the obligations
of this code, which shall include details of the programming and development requirements if applicable.
Ordinance No.
Page 4
The City Manager is hereby given the authority to execute such an agreement, which shall be recorded
in the records of the Johnson County, Iowa Recorder's Office at owner's expense.
4. Term of Affordability
The Affordable Housing dwelling units shall remain so for no less than ten (10) years from the issuance
of the Certificate of Occupancy for the dwelling unit and recording of the Deed Restriction described
below.
5.
No Affordable Ho sing dwelling unit shall be occupied by knyone other than an Income -eligible
Household. Househdys that wish to purchase or rent Affordablp Housing dwelling units shall be subject
to verification of their igibility in accordance with the applicabp Income Verification provisions set forth
below and as set forth i administrative rules adopted to accorqplish the purposes of this chapter.
6. Deed Restriction
A deed restriction documen' g the Affordable Hou
si
affordability, term, applicable r ale restrictions, and ap
placed upon the Owner-Occu ' d Affordable Housing
Rental Housing, shall be placed on the land being d
the Certificate of Occupancy. Th deed restriction s
Recorder and referenced in any eed conveying ti
Affordability. This deed restriction sh II automatically
City Manager is hereby authorized to sue any rete e
appropriate, in a form approved by the co
Afforne .
Parking
Affordable Housing dwelling units shall be
code.
D. Owner -Occupied Affordable Housing
Owner -Occupied Affordable Housing must
and the following requirements:
Development
ng equirements, selected method of achieving
pli ble occupancy and rental restrictions shall be
welling unit or, in the case of the Affordable
e loped contemporaneously with the issuance of
II be recorded with the Johnson County, Iowa
e of any such unit or land during the Term of
pon the expiration of the Term of Affordability. The
of this deed restriction, as may be necessary and
pt from the parking otherwise required by the zoning
N
O
the eneral Requirements set forth in Subsection C abpye
C7%
A. Dwelling Unit Types: TF 6 Affordable Housing di
of dwelling unit types irrproportion to the market
B. Dwelling Unit Size
percent of the for
similar quality, or i
g units shall be comprised of -Me same -mix
dwelling units within the deve4menf.
w
i(d Quality: The Affordable Hous g dwelling unit size shall be at least eighty
area for the market rate dwellink units of the same type, and shall be of
approved by the City Manager or
C. Location: The rordable Housing dwelling units shall be istributed throughout the development
to achieve int ration and avoid concentration or segregat n of the Affordable Housing dwelling
units, unless a different distribution will result in the provi 'on of additional Affordable Housing
dwelling unIs than that which is required by this Code, a approved by the
' City Manager or
designee.
D. Timing f Construction: The Affordable Housing dwelling units hall be constructed and issued a
cert to of occupancy concurrently with or prior to the rket-rate dwelling units in the
development.
2. Program Requirements.
Ordinance No.
Page 5
A. Occupancy: An Affordable Housing dwelling unit shall, at all times during the Term of
Affordability, be occupied by an income -eligible household as the household's primary
residence.
B. Income Verification: The annual household income shall be determined according to the HUD
Part 5, Section 8 regulations on Annual Income codified in 24 CFR 5.609, as amended, and
verified by the City prior to close of the sale.
C. Rental Restriction: An Owner -Occupied Affordable Housing unit may not be rented, except an
owner may rent or lease a bedroom in the unit.
D. Sale Restrictions: In addition to the deed restrictions re fired above, all required Owner -
Occupied Affordable Housing dwelling units shall be subj t to the following sale restrictions
during the Term of Affordability, compliance with which shl be verified by the City Manager, or
designee, prior to closing on the sale.
lasers: A seller of an affordable d�lling unit must sell the unit only to an
household.
ii. Sale Price: T sale price of any Affordable 'lousing dwelling unit shall not exceed the
purchase price aid by the original income ligible household purchaser or the HUD
Homeownership \estat
mit, whichever is reater, with the following exceptions:
(a) Closing Comary closing osts and costs of sale.
(b) Real Estssions: Co s of real estate commissions paid by the seller to a
licensed agent.
(c) Permanent Capital Ir
to permanent capital
a properly issued bui
(d) Special Fees: The 011er r
additional fees orAny fin
other than orovid d in this
Reasonable value added to the dwelling unit due
> installed within the unit by the seller pursuant to
it.
affordable dwelling unit shall not levy or charge any
fee nor demand any other monetary consideration
E. Affordable Rental H/irements.
Affordable Rental Housinhe General Requirem is set forth in Subsection C above and the
following requirements.
1. DevelopmentA. Affordable ree provided in accordance wit the Development Regyirements for
owner-occupiousing set forth in Subsection D above.
B. If a tenant' itially deemed an income -eligible household for pur ses of occupying an Affordable
Housing elling unit pursuant to this chapter, but is subsequen deemed no longer income -
eligible n annual examination of household income, that tenant' unit shall not be considered
animiaparable
dable Housing dwelling unit and the rent can be adjusted t market rate. To maintain
conce with the Affordable Housing Requirement, the next availab rental unit in the project
of size or larger must be rented to an Income -Eligible Household. To that end, the
Affordable Rental Units need not be specifically designated in a fixed location, but may be
floating throughout the development.
2. Program Requirements
A. Rental Rate: The monthly rental rate shall be no more than the Fair Market rents as published by
HUD for the Iowa City, IA HUD Metro FMR Area, as adjusted annually.
Ordinance No.
Page 6
B. Occupancy: Affordable rental units must be rented to income -eligible households.
C. Income Verification: The landlord shall annually verify to the City that the Affordable Rental
Housing units are occupied by income -eligible households. Prior to the commencement of a
lease, the landlord shall determine a potential tenanfs annual household income according to
the HUD Part 5, Section 8, regulations on Annual Income coded in 24 CFR 5.609, as
amended. Upon extension or renewal of a lease, the landlord may determine a tenant's annual
household income based upon federal income tax retums for all adults in the household.
D. The owner ust annually verify to the City that it is in compliance with these Program
Requirements, and provide any documentation as deemed necessary by the City to determine
compliance, w
h may include examination the documents u d to verify tenant income. Any
violation of this r uirement may result in immediate suspen on of any rental permit issued for
the applicable unit.
F. Fee -in -Lieu Contribution
In lieu of providing Affordable Ho sing dwelling units, an
Crossings District affordable housin and to be established
shall be determined biennially by res ution of the City Col
difference between renting a market to unit for the Ter
affordable to an income -qualified hous hold. The fund
purposes, which may include administratio costs, in the RIv6
G. Transfer of Affordable Dwelling Units
own r may contribute a fee to a Riverfront
by a City. The contribution per dwelling unit
n d based upon a formula that analyzes the
of Affordability and renting a dwelling unit
call be utilized solely for affordable housing
Front Crossings District.
Upon the Owner establishing that the Affords le using Requirements cannot be satisfied on-site, as
reasonably determined by the City, it may be sa ' f d by designating off-site existing or newly constructed
dwelling units in the Riverfront Crossings Distric as Affordable Housing dwelling units. Any transferred
Affordable Housing units shall in no way waive o r uce any obligation to provide Affordable Housing units
within the development to which the obliga' n i transferred. In addition to satisfying the General
Requirements set forth in Subsection C above, ese u its must satisfy the following requirements.
1. Development Requirements:
A. Off -Site Affordable Dwelling nits, whether th are owner -occupied or rental units, shall be
provided in accordance the Development )Requirements for Owner -occupied Affordable
Housing set forth in Subs ction D(1) above. The City reserves the right to deny a request to
transfer affordable hous' g units to a particular velopment if it would result in an undue
concentration of Afforda a Housing units within that d velopment.
B. Timing: Where the ordable Housing Requirement is t be met through the provision of newly
constructed dwellin units, such units shall be constructed nd pass final inspection no later than
the date the occu ncy permit is issued for the developmen resting the need for the Affordable
Housing, unless therwise agreed upon by the City Manager, r designee. Where the Affordable
Housing Requir ment is to be met through the provision of a ting off-site dwelling units, they
shall be esta fished as Affordable Housing dwelling units prior o issuance of any occupancy
permit for th development creating the need for the Affordable using. The marketing of the
Affordable ousing dwelling units should occur no later than one r after the first market -rate
dwelling u t in the site that generated the requirement passes final i spection, unless otherwise
agreed on by the City Manager. The Affordable Housing Agreement pursuant to Section C3
above all be recorded prior to issuance of a building permit for the development creating the
need f r the Affordable Housing.
2. Programming Requirements:
ti
0
rn
C
ZZ
I
c'1
Ordinance No.
Page 7
A. Where the Off -Site Affordable Dwelling Units are to be Owner -Occupied Affordable Housing,
those units shall comply with the programming requirements for Owner -Occupied Affordable
Housing set forth in Subsection D2 above.
B. Where the Off -Site Affordable Dwelling Units are to be Affordable Rental Housing, they shall
comply with the programming requirements for Affordable Rental Housing set forth in Subsection
E2 above.
H. Land Dedication
Upon the Owner establishing that the Affordable Housing Requirements cannot be satisfied on-site, as
reasonably deter ed by the City, it may be satisfied by the dedication of land to the City of Iowa City or an
entity designated byXhe City of Iowa City for construction of affordable dwelling units in accordance with the
provisions of this cha er, upon consideration of the following factors. j
1. Location: Th land shall be located in the Riverfront Crossings istrict, in an area appropriate for
residential red elopment, as determined by the City;
2. Number of Affordpble Units: The total dwelling units possible on the land shall be equal to or
greater than the nu ber of required Affordable Housing dAelling units;
3. Dwelling Type: The 1 d shall allow for the provision of ffordable units of equivalent type (single-
family, multifamily, to home, etc.), floor area, and umber of bedrooms to that which would
have been otherwise fired;
4. Land Value: The value of I nd to be dedicated sh I be determined, at the cost of the developer,
by an independent appraise who shall be set from a list of certified appraisers provided by
the City, or by such alternativ means of valuatio to which a developer and the City agree; and
5. The City reserves the right to r usi
Requirement if it determines, in\d,,
interests of the public for any re
construct or administer an affordable
unavailability of funds or other resou
dedicated is less than the value of t
provisions above, the City reserves
this difference in values.
dedicati n of land in satisfaction of the Affordable Housing
sole di cretion, that such a dedication is not in the best
m, in ding a determination that the City is not likely to
hou g development project in a timely manner due to the
s. dditionally, where the value of the land pkoposed to be
e in lieu contribution established in accofdance with the
ght to require an owner to contribute a fee making up
I. Administrative Rules.
The City Manager or designee is h/ae
uthorized t establish administrative -rules dee{Tned necessary
not inconsistent with any ordinancd by the ci council in order to assure that fhe purposes of
this chapter are accomplished. A che rules shall on file with the city clerkWrd available on
the city website.
SECTION It. APPROVAL. Iowa Ciode Section 14 -2G -7G(10), titled "Height Bonus For Workforce Or
Affordable Housing" is hereby ame9ded by deleting the section in s entirety and inserting in lieu thereof
the following language:
Height Bonus for Affordabl Housing: Up to five (5) floors of additional building height may be granted
for projects that design e a minimum of fifteen percent (15° of the dwelling units within the
development as Afford;pe Housing, as defined in Code Section 14 G-8 and regulated in accordance
therewith.
SECTION III. APPROVAL Iowa City Code Section 14 -5A -4(B) "Minimum Parking Requirements" is hereby
amended by ad;using
g a following language to the end of Paragraph 3:
Affordable dwelling units provided in accordance with Section 14-213-8 shall not be required to
provide parking, and are therefore exempt from the minimum parking requirement calculation for the
respective Riverfront Crossings zoning classification.
Ordinance No.
Page 8
SECTION IV APPROVAL. Iowa City Code Section 14 -5A -4F(4) is hereby amended by deleting the current
language in its entirety and replacing it with the following language in lieu thereof:
Minor Modification for Parking Reduction in the Central Business Zones: In the CB -5 and CB -10 zone,
a minor modification may be granted as specified in section 1446-1 exempting up to thirty percent
(30%) of the total number of dwelling units contained in a building from the minimum parking
requirements, provided that t4se dwelling units are committed to the citys assisted housing program
or any other affordable housing rogram approved by the city.
City Clerk is hereby authorized and dir c
office of the County Recorder of Johns
SECTION VI. REPEALER. All ord
Ordinance are hereby repealed.
SECTION VII. SEVERABILITY. If a
invalid or unconstitutional, such adjudica
section, provision or part thereof not adju
SECTION VIII. EFFECTIVE DATE.
passage, approval and publication, as pr(
RECORDING. Upon passage and approval of a Ordinance, the
ed to certify a copy of this ordinance and to r rd the same, at the
County, Iowa, at the owner's expense, all a provided by law.
ances and parts of ordinances in conflicy5vith the provisions of this
Passed and approved this day of
MAYOR:
ATTEST:
CITY CLERK
ction, provision or part of the Or nance shall be adjudged to be
shall not affect the validity of a Ordinance as a whole or any
I invalid or unconstitutional.
Ordinance shall be in ect on August 1, 2016, after its final
!d by law.
20_.
by:
4CiAittorney's Office
0
o.
77
C.3
C4
S_ Q-,-/
Prepared by: John Yapp, Dev. Srvs. Coor., 410 E. Washington Street, Iowa City, IA 52240; 319-356-5252
ORDINANCE NO.
ORDINANCE AMENDING CITY CODE ARTICLE 14-2G, RIVERFRONT CROSS GS FORM BASED
DEVELOPMENT STANDARDS, TO ADD A RIVERFRONT CROSSINGS AF RDABLE HOUSING
REQUIREMENT
WHEREAS, the Iowa Legislature has adopted "Iowa Smart Planning Prin les", codified in Iowa Code
Section 186.1, which principles include, among others, efforts to facilitate a revitalization of established
town centers d neighborhoods by promoting development that conserve and, protects historic resources,
promotes pedes ' n accessibility, and integrates different uses of prope , encouraging diversity in the types
of available housin and promoting the location of housing near p lic transportation and employment
centers; and
WHEREAS, the to Legislature has evidenced support for ' ed income neighborhoods by requiring
that all cities consider the esidence of a recipient of services u er a home or community-based services
waiver as a permitted resid tial use of property for the purpose of zoning; prohibiting cities from requiring a
special exception or variance or such a use; and prohibiting c' ies from establishing limitations regarding the
proximity of one such residenc to another (Iowa Code Secti 414.32); and
WHEREAS, the City Cou cil adopted Strategic PI intends to foster a more inclusive, just and
sustainable Iowa City, and set among its top prioriti s the encouragement of a vibrant and walkable
urban core with diverse housi types and price points for a variety of income levels, and the
advancement of social justice and aci
WHEREAS, permanent and to g
stabilize the community, reduce t
communities; and
WHEREAS, the City has been gr:
of population, the location and use of t
WHEREAS, the City has divided
purposes of the state and municipal zr
the construction and use of buildings,
WHEREAS, the 2007 Iowa City Mei
equity affor ble housing programs; and
rm housi in proximity to the source of employment serves to
onal tr is congestion, and minimize impacts on adjacent
examines existing and future need f9f housing
WHEREAS, this 2007 Mark f Analysis
outpaced income; that many co -burdened
power to adopt regulations and restrictions on the density
structures and land; and
into districts it has deemed best suited to carry out the
as and has adopted specific regulations and restrictions on
and land within the distinct districts; and
\ffordable Housing Market Analysis ("2007 Market Analysis")
monglower income households;
nd, among other findings, that housing prices have
oLIkehold are active members of the region's workforce
whose salaries are not keeping ace with housing sts; that the market is producing many more higher -
priced housing units than mod rately priced units; a d that projected housing construction activity is not
expected to address affordab housing needs; and
WHEREAS this 2007 arket Analysis recommen
meet the significant unmet eed for affordable housing; ar
WHEREAS, the 201 Iowa City Metro Area Afforda
2007 Analysis prepared y the Metropolitan Planning Or
Trust Fund of Johnson County, ("2015 Market Analysis")
housing stock growth as single-family housing; and
adopting an inclusionary zoning ordinance to
Housing Market Analysis, an update to the
nation of Johnson County and the Housing
Xthat between 2000-2012, the majority of
WHEREAS, this 2015 Market Analysis further found that t proportion of renters in Iowa City
considered cost -bur ened (paying more than 30% of their househord., gross annual income on rent) and
severely cost -bur ned (paying more than 50% of their householhgross annual income on rent)
increased betweeA 2000 and 2012; and
2015 Market Analysis found homeowners in Iowa, City are increasingly cost -
burdened; and /
W HEREA this 2015 Market Analysis concluded that real median housing values increased between
2000 and 2012 by an average of 15.6 percent while real median household income decreased by nearly 7
percent during that same time; that the number and percentage of families in poverty in the urbanized
area increased from 1,038 (6.2 percent) in 2000 to 1,684 (8.2 percent) in 2012; and in 2013 the hourly
wage required to afford a two-bedroom apartment in the urbanized area was $16.40.
Ordinance No.
Page 2
WHEREAS, this 2015 Market Analysis recommended, among other strategies to increase affordable
housing opportunities, that the City rezone land to allow for more multi -family residential uses and adopt
an inclusionary zoning ordinance; and
WHEREAS, in 2014, the City contracted with the University of Iowa Public Policy Center to study
impediments to fair housing within the City; and
WHEREAS, the resultant report from the Public Policy Center, titled "Analysis to Impediments to Fair
Housing Choice -2014" identifies racial and ethnic concentrations of housing in Iowa City as an impediment
and recommends adopting an inclusionary zoning policy for new ownership and rental housing development
as a method to overcome this impediment; and
WHEREAS, the City Steps 2016-2020, Iowa City's Five -Year Consolidated P n for Housing, Jobs and
Services for Low -Income Residents, adopted on May 15, 2015, ("City Steps") i intended to guide funding
decisions for housing and community development activities, particularly thos funds received through the
federal CDBG and HOME grant prog s; and
WHEREAS, the City Steps Iden' ies the high percentage of housing st-burdened households as the
most common housing problem wit in the City, identifies that the n mber of housing cost -burdened
households and declares that the expa sion of affordable rental and ho eowner housing opportunities is of
the City's highest priorities; and
WHEREAS, the lack of affordable ho sing makes it difficult for ow -income individuals and families
with children to maintain a stable househo ; and
WHEREAS, high housing costs, physic I deficiencies, uns le neighborhoods, and overcrowding all
contribute to local homelessness; and
WHEREAS, the availability of public tran ortation to a equately link lower income households
located outside of Iowa City to employment o ortunities ithin the City is inadequate; and
WHEREAS, the City Steps Plan indicates at one the primary areas where people face housing
affordability challenges is near the University pus nd the City's urban core; and
WHEREAS, the Riverfront Crossings Distri t is ripe for mixed-use development, including residential
uses, due to the adoption of the Riverfront Cros i gs Form Based Code which allows a higher density of
development than was previously permitted; and
WHEREAS, the mix of uses allowed under h Riverfront Crossings Form Based Code is intended to
encourage a walkable, pedestrian -friendly are he residents can work, live and play, and will increase the
need for housing that is affordable to the wor orce; d
WHEREAS, market forces would not I' ely resu in the creation of affordable housing without the City
requiring the creation of affordable housin in new dev lopments within the Riverfront Crossings District; and
WHEREAS, The Riverfront Crossin96 District is w I -situated to support a mix of housing due to its close
proximity to downtown Iowa City and a University of owa campus, its existing and planned mix of uses,
convenient access to public transi and municipal p rking facilities, and it is ripe for higher -density
development under the Form Based ode; and
WHEREAS, the Planning and Zoning Commission ha reviewed the proposed Zoning Code amendment
for an Inclusionary Affordable Hoy§ing Ordinance and has commended approval by a vote of 6-0.
NOW, THEREFORE, BE IT OVDAINED BY THE CITY COUNCIL OF THE CITY OF IOWA CITY, IOWA:
SECTION I APPROV . City Code Article 14-2G, Riv rfront Crossings Form Based Development
Standards, is hereby ame ed by adding a new section as folio
14-2G-8: Affordable HgGsing Requirement:
A. Purpose 7
The purpose of this/chapter is to:
1. Cre fe a more inclusive, just and sustainable Iowa City;
2. Red ce concentrations of low and moderate income house p\Ids in Iowa City;
3. Increase the multi -family housing stock near the University anti the City's urban core;
4. Promote the construction of housing that is affordable to the community's workforce;
5. Increase opportunities for people of all income levels to work and live near key employment
centers;
Ordinance No.
Page 3
6. Promote a balanced community that provides housing for people with diverse income levels;
7. To reduce the number of housing cost -burdened households; and
8. Promote household stability and reduce the threat of homelessness.
B. Definitions
For purposes of this Code Section 14 -')CZ' -B, the following definitions shall apply to theterms:
Affordable Housing: The collective eference to Owner -occupied Affordable Hou ' g and/or Affordable
Rental Housing, as those terms are d fined herein.
Affordable Rental Housing is housi that is rented for no more than the H Fair Market Rent for the
Iowa City, IA HUD Metro FMR Area, a adjusted annually, and rented to an/come-eligible Household.
Owner -occupied Affordable Housing Is housing that is sold ata price o greater than the most current
published Housing and Urban Developm nt (HUD) homeownership a price limit for existing and new
homes to an Income -eligible Household.
Income eligible Household: A household 's an income-eligibI household for purposes of purchasing
an Owner -occupied Affordable Housing dwe Ing unit if that ho sehold has an annual income equal to or
less than 110% of the area median income ( MI) for Iowa q ty, as adjusted annually. A household is an
income -eligible household for leasing Afforda a Rental Hyy sing if that household has an annual income
equal to or less than 60% of the AMI for Iowa 'ty, as adjdsted annually.
C. General Requirements
Affordable Housing Requirement
Except for developments providing affordab 6 hou ing pursuant to a development agreement with the
City executed prior to June 6, 2016, and except for evelopments exclusively providing Elder Apartment
Housing, any development containing tenor more welling units on land zoned a Riverfront Crossings
zoning designation is required to prov�de Affordabl Housing dwelling units in an amount equal to or
greater than ten percent of the total number of dwelli g units. Should ten percent of the total number of
dwelling units result in a fractional number, this fractio shall be rounded up to the nearest whole number
for any fraction over fifty percent 3o establish the requi ed number of Affordable Housing dwelling units.
Any exempt Elder Apartment housing developments hall be subject to periodic inspection to insure
compliance with the Title 14 Zoning Code regulations of
2. Methods of Achieving Affordability
The Affordable Housing/Requirement may be satisfied
following methods:
i) on-site wner-occupied affordable housing; 1
ii)on-sit Affordable Rental Housing;
ill)
a fe m -lieu contribution to an affordable housing
iv) off-�ssite affordable housing, and/or
V) cgf�tribution of land.
use.
If the owner desires to utilize methods iv or v, the owner must
feasibly be/satisfied, as reasonably determined by the City.
3. /affordable Housing Agreement
the provision of one or more of the
that methods i, ii, and iii cannot
Upon rezoning to a Riverfront Crossings zoning designation, the Voperty owner shall enter into an
affordable housing agreement with the City establishing which metNod or methods it will utilize. This
agreement must be executed prior to the close of the public hearing bn the rezoning ordinance. Upon
application for a building permit to construct any development for whicA�Affordable Housing is required,
the property owner shall enter into an agreement with the City detailing how it will satisfy the obligations
of this code, which shall include details of the programming and development requirements if applicable.
Ordinance No.
Page 4
The City Manager is hereby given the authority to execute such an agreement, which shall be recorded
in the records of the Johnson County, Iowa Recorder's Office at owner's expense.
4. Term of Affordability
The Affordable Housing dwelling units shall remain so for no less than ten (10) years from the issuance
of the Certificate of Occupancy for the dwelling unit and recording of the Deed Restriction described
below.
5. Occupancy
No Affordable Housing dwelling unit shall be occupied by anyone other than an Income ligible
Household. Households that wish to purchase or rent Affordable Housing dwelling units shall b subject
to verification of their eligibility in accords with the applicable Income Verification provisio set forth
below and as set forth in administrative rules adopted to accomplish the purposes of this ch ter.
6. Deed Restriction
A deed restriction documenting the AffordablN Housing requirements, ected ethod of achieving
affordability, term, applicable resale restrictions, d applicable occupancy anseld r tal restrictions shall be
placed upon the Owner -Occupied Affordable Hdysing dwelling unit or, in t case of the Affordable
Rental Housing, shall be placed upon the land beit developed contempor eously with the issuance of
the Certificate of Occupancy. This deed restriction shall be recorded w' the Johnson County, Iowa
Recorder and referenced in any deed conveying title of any such it or land during the Term of
Affordability. This deed restriction shall automatically J on the expirati of the Term of Affordability. The
City Manager is hereby authorized to issue any release this deed striction, as maybe necessary and
appropriate, in a form approved by the City Attorney. \
Parking
Affordable Housing dwelling units shall be exempt
code.
D. Owner -Occupied Affordable Housing
Owner -Occupied Affordable Housing must satisfy th6 General
and the following requirements: �
parking otherwise required by the zoning
set forth in Subsection C above
Development Requirements.
A. Dwelling Unit Types: The Affodable Housing dwelling un s shall be comprised of the same mix
of dwelling unit types in pro rtion to the market rate dwells g units within the development.
B. Dwelling Unit Size and ality: The Affordable Housing dw Iling unit size shall be at least eighty
percent of the floor ar a for the market rate dwelling units of the same type, and shall be of
similar quality, or as proved by the City Manager or design
C. Location: The Aff dable Housing dwelling units shall be distrib ted throughout the development
to achieve integr tion and avoid concentration or segregation o the Affordable Housing dwelling
units, unless a different distribution will result in the provision o additional Affordable Housing
dwelling unit than that which is required by this Code, as app oved by the City Manager or
designee.
D. Timing of construction: The Affordable Housing dwelling units shall ke constructed and issued a
certificat4b of occupancy concurrently with or prior to the market- to dwelling units in the
2. Program Requirements.
Ordinance No.
Page 5
A. Occupancy: An Affordable Housing dwelling unit shall, at all times during the Term of
Affordability, be occupied by an income -eligible household as the household's primary
residence.
B. Income Verification: The annual household income shall be determined according to the HUD
Part 5, Section 8 regulations on Annual Income codified in 24 CFR 5.609,as a ended, and
verified by the City prior to close of the sale.
C. Rental Restriction: An Owne ccupied Affordable Housing unit may not be r ted, except an
owner may rent or lease a be oom in the unit.
D. Sale Restrictions: In addition
Occupied Affordable Housing <
during the Term of Affordability,
designee, prior to closing on the
i. Approved Purchasers: A E
income -eligible household.
the deed restrictions required above all required Owner-
:lling units shall be subject to the fglfowing sale restrictions
mpliance with which shall be verifi9d by the City Manager, or
ii. Sale Price: The sale price of
purchase price paid by the c
Homeownership sale price limit,
(a) Closing Costs: Customary
(b) Real Estate Commissions:
licensed real estate agent.
(c) Permanent Capital Impro
to permanent capital imps
a properly issued building
an affordable dwelling u it must sell the unit only to an
Affordable Housi dwelling unit shall not exceed the
nal income-eligi le household purchaser or the HUD
ichever is grea r, with the following exceptions:
(d) Special Fees: The sell 'r of an
additional fees or an finder's
other than provided jn this chat
E. Affordable Rental Housing
Affordable Rental Housing must
following requirements.
Development
A. Affordable rental
owner -occupied,
General
shall be provided in acc
able Housing set forth in
and costs of sale.
real estate commissions paid by the seller to a
Reasonable value added to the dwelling unit due
s installed within the unit by the seller pursuant to
-dable dwelling unit shall not levy or charge any
nor demand any other monetary consideration
B. If a tenant initially deemed an income -eligible househol(
Housing dweelI ing unit pursuant to this chapter, but is
eligible upoy annual examination of household income,
anAfford ble Housing dwelling unit and the rent can
complia a withthe Affordable Housing Requirement, 1
of com arable size or larger must be rented to an Incl
Afford ble Rental Units need not be specifically des
floati4 throughout the development.
2. Program Requirements
set forth in Subsection C above and the
with the Development Requirements for
on D1 above.
for purposes of occupying an Affordable
lbsequently deemed no longer income -
at tenant's unit shall not be considered
adjustedto market rate. To maintain
next available rental unit in the project
n -Eligible Household. To that end, the
Ina*d in a fixed location, but may be
A. Rental Rate: The monthly rental rate shall be no more than the Fair Market rents as published by
HUD for the Iowa City, IA HUD Metro FMR Area, as adjusted annually.
Ordinance No.
Page 6
B. Occupancy: Affordable rental units must be rented to income -eligible households.
C. Income Verification: The landlord shall annually verify to the City that the Affordable Rental
Housing units are occupied by income -eligible households. Prior to the commencement of a
lease, the landlord shall determine a potential tenant's annual household income according to
the HUD Part 5, Section 8, regulations on Annual Income codified i 24 CFR 5.609, as
amended. Upon extension or renewal of a lease, the landlord may deter ine a tenant's annual
household income based upon Fede I income tax returns for all adults i the household.
D. The owner must annually verify o the City that it is in comp ance with these Program
Requirements, and provide any do mentation as deemed nece ary by the City to determine
compliance, which may include exa ination the documents us to verify tenant income. Any
violation of this requirement may res It in immediate st. isi n of any rental permit issued for
the applicable unit.
F. Fee -in -Lieu Contribution
In lieu of providing Affordable Housing dwelling u its, an ow r may contribute a fee to a Riverfront
Crossings District affordable housing fund to be esta lished by he City. The contribution per dwelling unit
shall be determined biennially by resolution of the C Cou cil based upon a formula that analyzes the
difference between renting a market rate unit for thk Te of Affordability and renting a dwelling unit
affordable to an income -qualified household. The fu d shall be utilized solely for affordable housing
purposes, which may include administration costs, in the Viverfront Crossings District.
G. Transfer of Affordable Dwelling Units Off -Site
Upon the Owner establishing that the Affordabl Housii
reasonably determined by the City, it may be s , ed by
dwelling units in the Riverfront Crossings Dis ict as Af
Affordable Housing units shall in no way waiv or reduce
within the development to which the ob' ation is tra
Requirements set forth in Subsection C abq e, these units
Development
Requirements cannot be satisfied on-site, as
signating off-site existing or newly constructed
able Housing dwelling units. Any transferred
I
bligation to provide Affordable Housing units
rred. In addition to satisfying the General
1 satisfy the following requirements.
A. Off -Site Affordable Dweljing Units, whether they ar owner -occupied or rental units, shall be
provided in accordance/with the Development Req irements for Owner -occupied Affordable
Housing set forth in bsection D(1) above. The Ci reserves the right to deny a request to
transfer affordable g6using units to a particular de lopment if it would result in an undue
concentration of Aff dable Housing units within that de elopment.
B. Timing: Where th Affordable Housing Requirement is t be met through the provision of newly
constructed dw fling units, such units shall be constructe and pass final inspection no later than
the date the o�a�upancy permit is issued for the developm nt creating the need for the Affordable
Housing, unless otherwise agreed upon by the City Mana er, or designee. Where the Affordable
Housing Re wrement is to be met through the provision f existing off-site dwelling units, they
shall be a ablished as Affordable Housing dwelling units rior to issuance of any occupancy
permit for the development creating the need for the Affor ble Housing. The marketing of the
Affords a Housing dwelling units should occur no later than one year after the first market -rate
dwellino unit in the site that generated the requirement passe final inspection, unless otherwise
agree upon by the City Manager. The Affordable Housing A reement pursuant to Section C3
abovA shall be recorded prior to issuance of a building permit pr the development creating the
nee4 for the Affordable Housing. \,
2. Programming Requirements:
Ordinance No.
Page 7
A. Where the Off -Site Affordable Dwelling Units are to be Owner -Occupied Affordable Housing,
those units shall comply with the programming requirements for Owner -Occupied Affordable
Housing set forth in Subsection D2 above.
B. Where the Off -Site Affordable Dwelling Units are to be Affordable Rental Housing, they shall
comply with the programming requirements for Affordable Rental Housing t forth in Subsection
E2 above.
H. Land Dedication
Upon the Owner establishing that the Affords le Housing Requirements c nnot be satisfied on-site, as
reasonably determined by the City, it may be sa isfied by the dedication of I d to the City of Iowa City or an
entity designated by the City of Iowa City for co truction of affordable dw 'ling units in accordance with the
provisions of this chapter, upon consideration oft a following factors.
1. Location: The land shall be located in he Riverfront Cros ngs District, in an area appropriate for
residential redevelopment, as determined by the City;
2. Number of Affordable Units: The total
greater than the number of required Aff
3. Dwelling Type: The land shall allow for
family, multifamily, town home, etc.), 1
have been otherwise required;
4. Land Value: The value of land to be (
by an independent appraiser, who sh,
the City, or by such alternative means
5. The City reserves the right to refu b dedi
Requirement if it determines, ins sole
interests of the public for any reason, ii
construct or administer an affg4able hou:
unavailability of funds or other resources. f
dedicated is less than the clue of the fee
provisions above, the Cireserves the ric
this difference in values. /
possible on the land shall be equal to or
) dwelling units;
on of affordable units of equivalent type (single -
and number of bedrooms to that which would
rted shall be determined, at the cost of the developer,
selected from a list of certified appraisers provided by
uation to which a developer and the City agree; and
on of land in satisfaction of the Affordable Housing
,cretion, that such a dedication is not in the best
ding a determination that the City is not likely to
development project in a timely manner due to the
itionally, where the value of the land proposed to be
lieu contribution established in accordance with the
to require an owner to contribute a fee making up
I. Administrative Rules.
The City Manager or desig ee is hereby authorized t establish administrative rules deemed necessary
not inconsistent with any rdinance adopted by the 'ty council in order to assure that the purposes of
this chapter are accomp shed. A copy of the rules s 11 be on file with the city clerk and available on
the city website.
SECTION II. APPROVA . Iowa City Code Section 14-213-7 (10), titled "Height Bonus For Workforce Or
Affordable Housing" is 6reby amended by deleting the sec ion in its entirety and inserting in lieu thereof
the following language
Height Bonus
for projects t
development
therewith. /
amended by
(Affordable Housing: Up to five (5) floork of additional building height may be granted
t designate a minimum of fifteen per nt (15%) of the dwelling units within the
Affordable Housing, as defined in Code ction 14-213-8 and regulated in accordance
OVAL. Iowa City Code Section 14 -5A -4(B)
the following language to the end of Paragra
Parking Requirements" is hereby
Affordable Housing dwelling units provided in accordance with SVction 14-2G-8 shall not be required to
provide parking, and are therefore exempt from the minimump rking requirement calculation for the
respective Riverfront Crossings zoning classification.
Ordinance No.
Page S
SECTION IV APPROVAL. Iowa City Code Section 14 -5A -4F(4) is hereby amended by deleting the current
language in its entirety and replacing it with the following language in lieu thereof:
Minor Modification for Parking Reduction in the Central Business Zones: In the CB -5 and CB -10 zone,
a minor modification may be granted as specified in section 14-413-1 exempting up to thirty percent
(30%) of the total number of dwelling units contained in a building from the minimum parking
requirements, provided that those dwelling units are committed to the city's assis d housing program
or any other affordable housing program approved by the city.
City Clerk is hereby authorized and directed to
office of the County Recorder of Johnson CoLo
SECTION VI. REPEALER. All ordinan
Ordinance are hereby repealed. 11
SECTION VII. SEVERABILITY. If any sect
invalid or unconstitutional, such adjudication sl
section, provision or part thereof not adjudged i
SECTION VIII. EFFECTIVE DATE. This
passage, approval and publication, as provided
Passed and approved this day of
ATTEST:
CITY CLERK
MAYOR:
)RDIN Upon passage and
Why a copy of this ordinance
r, Iowa, at the owner's expen
and parts of ordinances in,*
Pip val of the Ordinance, the
Id to record the same, at the
all as provided by law.
ict with the provisions of this
provision or part of a Ordinance shall be adjudged to be
not affect the val' ity of the Ordinance as a whole or any
id or unconstitu ' nal.
law.
shall 06 in effect on August 1, 2016, after its final
20_
by:
4CiAitoorney's Office
CITY OF IOWA CITY
MEMORANDUM
Date: June 16, 2016
To: Geoff Fruin, Interim City
From: Doug Boothroy, Director
John Yapp, Developmer
Re: Riverfront Crossings I
Information
velopment Services
7Y -rt --
Housing Ordinance — Additional
The public hearing for the Riverfront Crossings (RFC) Inclusionary Affordable Housing (IH)
Ordinance is set for the June 2151 City Council meeting. The Planning and Zoning Commission,
at its May 19`" meeting, recommended approval of the ordinance by a vote of 6-0.
The ordinance was drafted at the direction of City Council with the requirements to be only
applicable to the RFC area and to be based on the seven fundamental principles which are the
foundation of the ordinance, and were recommended to the City Council by an ad-hoc work
committee composed of developers, a banker, and affordable housing advocates and
practitioners. Detailed information on the ordinance is provided in the May 12 memorandum to
the Planning and Zoning Commission (also included in the June 215' City Council information
packet).
This memo is to highlight the additional actions which will need to take place with the adoption
of the IH Ordinance.
ADDITIONAL ACTIONS:
Affordable Housing Location Model:
The Affordable Housing Location Model, adopted in 2011, is used to ensure that publically-
subsidized (with CDBG, HOME, or City funds) affordable housing rental projects are not put into
an area that already has a concentration of subsidized / assisted housing, to further the goal of
income diversity in neighborhoods, and to address goals of the Iowa City Community School
District to not concentrate subsidized / assisted housing. In general the Affordable Housing
Location Model grew out of the scattered site -approach for publically subsidized housing
projects to ensure such projects are scattered throughout the City.
The Riverfront Crossings IH Ordinance takes a different approach. The IH Ordinance requires
affordable housing be addressed on a project -by -project basis for properties with Riverfront
Crossings Zoning (the RFC Zones allow a higher density of residential housing than other
zoning districts). This ensures that affordable units will be scattered throughout the district as
properties redevelop. Because the Affordable Housing Location Model would have the effect of
disallowing affordable housing for many if not most Riverfront Crossings projects, staff and the
City Council had discussed exempting RFC from the Affordable Housing Location Model.
June 16, 2016
Page 2
Staff intends to have a resolution exempting RFC from the Affordable Housing Location Model
prepared for the same City Council meeting at which the third reading of the IH Ordinance is to
take place.
Fee in Lieu:
The proposed IH Ordinance states that one option developers have to address affordable
housing is to pay a 'fee in lieu' (FIL) of providing affordable units on-site. The fee is to be
established by resolution. The fee is based on the difference in project value between a 100%
market rate project vs. a project with 10% affordable housing. In other words, it is based on the
financial 'gap' created due to the affordable housing requirement. Using this method, a financial
model was created, and the fee is calculated to be $80,872 per unit — we anticipate the fee
being updated every two years, as the data used to create the fee is available every two years.
The affordable housing fund created from payment of FIL must be used for affordable housing
purposes in the Riverfront Crossings area. It is important to maintain the link between the area
from which the fees are generated and the area in which the fees are used. We will have a
general discussion of this anticipated RFC affordable housing fund and how it may be used (gap
financing for affordable housing projects, down payment assistance, land banking, etc. are
options) as part of the June 21St Work Session on affordable housing.
Staff intends to have a resolution establishing the FIL prepared for the same City Council
meeting at which the third reading of the IH Ordinance is to take place. More detail on how the
fee was calculated will be provided at that time.
Administrative Rules/August 1" Effective Date:
Administering the IH Ordinance will require the creation of forms, documents, brochures and
other information used to convey the intent and regulations associated with the ordinance; and
to ensure landlords / owners are collecting appropriate information from prospective tenants and
conveying that information to City staff. While we are basing these forms and documents on
existing City programs as much as possible, creating a new set of administrative documents like
this will require a significant amount of staff time. For this reason, the ordinance is drafted to go
into effect August 1"— this will give staff time to develop the administrative rules and regulations
and adjust them as need be due to Council discussion of the IH Ordinance.
Administrative rules do not need to be adopted by City Council — the proposed ordinance gives
the City Manager or designee authority to establish administrative rules necessary to carry out
the ordinance.
DEVELOPMENT PROJECTS UNDERWAY:
Only development projects that have made progress such as permit application, demolition, site
work, etc. are not be required to comply with the IH ordinance. There are three projects that
have made substantial progress and they include 316 Madison St (site work has started), the
600 Block S. Dubuque (demolition has occurred, plans prepared for permit approval) and 435 S
Linn St. (site and building plans approved along with an approved development agreement to
provide affordable housing). If the IH Ordinance is approved, all new projects with Riverfront
Crossings Zoning will be required to comply with the ordinance.
r
rl�,:.pw CITY OF IOWA CITY
'h MEMORANDUM
Date: May 12, 2016
To: Planning & Zoning
From: Douglas Boothroy, Director of
Re: Riverfront Crossings (RFC) I
Services
Affordable Housing (IH) Ordinance
Staff has prepared a draft of an IH ordinance for Planning and Zoning Commission (P&Z)
consideration. The ordinance was drafted at the direction of the City Council with the
requirements to be applicable only to'the RFC area and to be based on the seven fundamental
principles of an IH regulation that are attached to this memo. The 'Fundamental IH Principles'
were recommended to City Council by an ad-hoc work committee composed of developers, a
banker and affordable housing advocates.
Background
The City's recent adoption of the RFC Plan and Form -Based Code has created a
"Neighborhood of Opportunity" in RFC. All parties (private and public) will benefit from these
City actions. Because RFC upzonings provide a significant increase in the development
capacity of this area, a favorable IH environment, unique to this time and place, has been
created. The potential now exists for the public benefit of mixed incoming housing to become a
reality in this area.
The basic purpose of the IH requirement for the RFC area is to provide a minimum number of
affordable housing units as an integral part of the RFC area, and to further the goals of the RFC
Master Plan for a walkable and sustainable mixed-use urban neighborhood
At the January 6, 2015 City Council meeting, Council directed staff to convene an ad-hoc work
committee to study IH and to develop 'Fundamental IH Principles' that would be the basis for an
IH requirement for the RFC area. The following individuals volunteered to work with staff as
members of an ad-hoc work committee.
Tracey Achenbach, Housing Trust Fund of Johnson County
Maryann Dennis, Housing Fellowship
Chad Keune, Homebuilders Association President, 2014
Brad Langguth, Hills Bank & Trust
Scott McDonough, Iowa Valley Habitat for Humanity Chair, 2015
Sally Scott, Johnson County Affordable Homes Coalition
Glenn Siders, Siders Development
In August 2015, the ad-hoc work committee recommendations, including the 'Fundamental IH
Principles,' were presented to Council. The committee unanimously recommended that IH
regulations, based on the 'Fundamental IH Principles,' be developed for the RFC area. The
May 12, 2016
Page 2
Council agreed with all of the ad-hoc committee's recommendations and unanimously directed
staff to develop an IH ordinance for their consideration.
Highlights of Proposed IH Ordinance
Affordable Housing Requirement
All residential projects (without public financing) with 10 or more residential units that are
located within the RFC area are required at the time of upzoning to RFC form -based code to
provide 10% of the dwelling units as affordable units for a period of 10 years. Elder apartment
housing developments are excluded from this affordability requirement.
The proposed IH ordinance defines affordable rental housing as housing rented to a household
with income not exceeding 60% of the area median income (AMI). Affordable owner -occupied
housing is defined as housing sold at a price no greater than the most current published HUD
HOME Homeownership value limits to a household with income not exceeding 110% AMI.
Options for Achieving Affordability
The committee had originally recommended that residential projects without public financing be
required to designate 10% of the units as affordable rental units (see Principle #4). However,
because Iowa Code (section 364.3(9)) prohibits cities from adopting or enforcing "any ordinance
imposing any limitation on the amount of rent that can be charged for leasing private residential
or commercial property," the proposed ordinance was drafted to give the property
owner/developer several options for meeting the affordable housing requirement.
If a property owner/developer chooses to take advantage of the significant upzoning provided by
the RFC form -based code, that property owner/developer must provide affordable housing by
choosing one of the options provided in the ordinance:
1, on-site owner occupied affordable housing;
2. on-site rental affordable housing;
3. fee -in -lieu contribution to an affordable housing fund for RFC;
4. off-site affordable housing in RFC; and/or
5. contribution of land in RFC.
Use of the last two options (4 and/or 5) requires a City determination that the affordability
requirement cannot be accomplished on-site.
The option(s) selected by the property owner/developer will be documented in an affordable
housing agreement with the City at the time of upzoning to the RFC zone. For property zoned
RFC prior to the effective date of the ordinance and on which no substantial part of construction
has begun, the affordability option(s) will be documented by an agreement with the City at the
time the building permit is issued.
May 12, 2016
Page 3
Affordable Rental Housing
Affordable rental units would be required to be affordable to households with incomes that do
not exceed 60% AMI (see Table 1). If the property owner/developer chooses to provide
affordable rental housing as the method to meet the IH affordability requirement, then
households for these units will need to be income -qualified by the landlord and verified by the
City. This income verification process would be consistent with the process followed in the
HOME/CDBG programs. Because households have different income levels, the maximum rents
are also being defined as HUD's HOME Fair Market Rents. Table I below shows the maximum
rent a household at 60% AMI would be expected to pay for housing based on the criterion that a
household, to avoid being 'cost -burdened' by housing costs, should not pay more than 30% of
their income toward housing. Table II shows HUD's HOME Fair Market Rents, which are
recommended as the maximum rents permitted for affordable rental units. These HOME rents
are adjusted annually by HUD.
Table I: Maximum rent for 60% AMI Households (using 30% of income threshold)
Household Size
1 -person
household
2 -person
household
3 -person
household
4 -person
household
60% Median
$34,620
$39,540
$44,460
$49,380
Income
$63,470
$72,490
$81,510
$90,530
Max monthly
$866
$989
$1,112
$1,235
rent (30% of
monthly income)
Table II: HOME Fair Market Rents - anticipated 6-1-16
Unit Type
Efficiency
1 -bedroom
2 -bedroom
3 -bedroom
Fair Market
Rent
$552
$665
$863
$1,258
Affordable Owner -occupied Housing
Affordable for -sale units would be required to be affordable to households whose income does
not exceed 110% AMI (see Table III). The 110% AMI was based on the experience of
affordable housing providers who have had difficulty qualifying low income households with
lower than 110% AMI for mortgages. Additionally, they found that when these households did
qualify, homeownership expenses often lead to failure. The proposed ordinance sets the
maximum unit sale price not to exceed the HOME Homeownership value limit ($218,000). This
sale price is adjusted annually by HUD. The purpose of these requirements is to increase the
likelihood that homeownership is a successful experience for low- and middle-income families,
and to avoid putting low-income households at risk of failure.
Table III: 110% Median Income by Household Size (using 2015 median income data)
Household
1 -person household
2 -person household
3 -person household
4 -person household
Size
110% Median
$63,470
$72,490
$81,510
$90,530
Income
May 12, 2016
Page 4
Fee -in -Lieu (FIL)
The ordinance provides a fee -in -lieu (FIL) option as a method to accomplish the City's land use
objectives in RFC. This option is not a fee imposed by the City, but rather an option that is
available to the property owner/developer. Any FIL contribution must be used within the RFC.
Staff has done considerable research to determine a reasonable amount for the FIL provision.
The National Development Council created a model using assumptions based on: local market
conditions, including the vacancy rate; expense ratio; market rents for near -downtown
properties; capitalization rate; and HOME Fair Market Rents for affordable units. Using these
factors, the model then determines project value with and without the affordable housing
requirement, which is used to determine a per-unit FIL. The model determines the difference
between a typical project with 100% market rate housing and a project with 10% affordable
housing and uses this difference to determine a per-unit FIL. Using the model, the per-unit FIL
in RFC would be $80,872. The ordinance provides that the FIL would be adopted by the City
Council biennially (every two years) by resolution,
Dwelling Unit Types, Size and Quality
The affordable units must be of comparable size to market -rate units. The proposed ordinance
requires that affordable units be no less than 80% of the average size of market -rate units of the
same type, or similar quality, as approved by the City. This provision allows some design
flexibility in the size of affordable units while maintaining comparability with the market -rate
units.
The mix of affordable units, in terms of number of bedrooms, must be consistent with the
number of bedrooms for market -rate units. This ensures that income -qualified households of
various sizes will be served.
The affordable units must be distributed throughout the development to achieve integration and
avoid concentration or segregation of the affordable units.
Income Verification
The regulations require the property owner/landlord to annually verify household income with
the City. This verification process is consistent with current City practice for monitoring
compliance with residential projects receiving CDBG or HOME assistance. The property owner /
landlord must compute income based on the HUD Part 5 definition as described in 24 CFR
5.609, formerly referred to as the "Section 8" definition of income. Staff believes that by using
current and familiar practices for income verification, the proposed IH program can be
implemented without adding City staff, at least in the near term. Training will be made available
for landlords not familiar with this income verification process.
Flexibility is built into provisions of the proposed ordinance to accommodate situations in which
tenant income increases and the tenant is no longer income -eligible. In these situations, tenants
are not required to move, and the rent can be adjusted to market -rate at the end of the lease
term. As a result, the unit is no longer considered an affordable unit. To maintain compliance,
the property owner/landlord is required to provide the next comparable rental unit in the project
to an income -eligible household.
May 12, 2016
Page 5
Elimination of Parkina for Reauired Affordable Housin
The proposed ordinance amends the zoning code so that there is no parking requirement for the
required affordable housing units in the RFC area. This is consistent with the RFC Plan that
encourages a pedestrian -oriented, mixed-use neighborhood. The RFC neighborhood is centrally
located in the community, walkable to downtown, University, employment centers, community
services, and public transit stops. Development density is limited to number of parking spaces
provided. The affordable housing requirement can be more easily achieved with the elimination
of the parking requirement because it enables a developer to add residential units without
adding additional required parking. The elimination of the parking requirement also helps
contain development costs, making the affordable housing requirement more attractive to
developers.
Economic Development Policy Amendments
On 5/17/16 Council amended its Economic Development Policy to include an affordable IH
housing requirement as a condition of TIF financing (notwithstanding the zoning district). This
amendment is consistent with the ad-hoc committee's recommendations:
1. When the City participates financially (e.g. TIF) in a development that includes residential
units, a minimum of 15% of the units must be affordable for a minimum of 20 years. The City
may negotiate a higher minimum set-aside and a longer affordability term.
2. For affordable rental housing, dwelling units must be targeted to households whose income
is not more than 60% AMI. The City may negotiate a lower AMI.
3. For affordable owner -occupied housing, dwelling units must be targeted to households
whose income is not more than 110% AMI. The City may negotiate a lower AMI.
Recommendation
The ad-hoc work committee unanimously recommends that the attached IH ordinance be
adopted.
Requiring IH affordable housing to be tied to RFC upzonings and/or public financial assistance
(TIF) should be considered a quid pro quo for recapturing some of the public benefits/value
assigned to the land in RFC. The adoption of the Riverfront Crossing IH ordinance will, in
combination with other local, state and federal affordable housing programs, make a difference
in the supply of affordable housing, and will further the RFC plan goal of creating a new mixed -
income, pedestrian friendly, sustainable neighborhood located near downtown.
Staff recommends that the Planning and Zoning Commission take action to recommend
approval of the IH ordinance to the City Council.
Attachment
CC: Members of the ad-hoc Riverfront Crossings Inclusionary Housing Committee
Ad -Hoc Work Committee Recommended Fundamental Principles of an Inclusionary
Housing Regulation
PRINCIPLE #1 - Provision of inclusionary housing should be mandatory, not voluntary.
Inclusionary Housing is mandatory:
• When the City participates financially (e.g. TIF) in a development that includes residential
units regardless of zoning designation.
• When property is zoned a Riverfront Crossings zoning designation.
Comment
These mandatory requirements guarantee that affordable housing is created with new
residential development. The affordable housing requirement applies only when the City
participates financially and/or when a property is zoned to a Riverfront Crossings designation
(allows higher densities and mixed uses).
PRINCIPLE #2 - A percentage of units in a development should be set aside for housing that
is affordable for an established period of time.
Set-aside percentage and term of affordability:
• When the City participates financially in a development, 15% of the residential units must be
affordable for a minimum term of 20 years, or the life of the TIF, or term of developer's
agreement, whichever is longer.
• When the City is not participating financially in a development, 10% of the residential units
must be affordable for a minimum term of 10 years.
Comment
Set-aside percentage is the requirement that a portion (percentage) of the total number of
residential units be affordable. The set-aside strongly impacts development revenues possible
financial viability of a project. Set-aside percentages generally range from 10 to 20 percent in IH
ordinances. The committee recommends a 15% set-aside if the City provides financing and a 10%
set-aside if no public financing is involved.
Term of affordability is the length of time residential units must stay affordable. Affordability terms
range from 10 to 99 years in IH ordinances. To protect the public's investment in affordable
housing, the committee recommends a minimum of 20 year term of affordability when TIF is used.
PRINCIPLE # 3 - Project size should be considered and a threshold established for a set-
aside requirement.
Development size threshold
• Developments that include 10 or more residential units are subject to the set-aside
requirement.
Comment
Threshold size is the number of units that "trigger" the affordable housing set-aside requirement.
The 10 -unit threshold will require most new developments to include affordable housing while
also recognizing that an inclusionary housing requirement for small projects is often not practical
or financially feasible.
PRINCIPLE #4 - Requirements should be appropriate for the type of development (rental
vs. owner -occupied housing).
Type of development:
Rental projects are required to provide affordable units within the development unless the
developer qualifies for a hardship exemption to provide a 'fee -in -lieu'.
Owner -occupied projects may choose to pay a 'fee -in -lieu' for their affordable housing obligation,
or may offer affordable for -sale units to non -profits for management and re -sale to income -
qualifying owners. Proceeds from the 'fee -in -lieu' fund may be used for down payment
assistance for income -qualifying households purchasing owner -occupied units.
Comment
Affordable rental housing is the community's greatest housing need. Affordable rental units must
be developed on-site unless the development qualifies for a hardship exemption to provide a
`fee -in -lieu' (see below). To create economically integrated neighborhoods, affordable housing
units must be built within each development. This on-site requirement prevents affordable
housing from being clustered and prevents income -based concentrations within the Riverfront
Crossings area.
Developments designed for owner -occupied units are allowed to provide either a Yee -in- lieu' or
provide units on-site. This flexibility is provided because it is more difficult for low income families
to qualify for mortgages. If the City participates financially, owner -occupied units could be
required to be on-site through the developer's agreement.
PRINCIPLE #5 - Alternatives to the on-site affordable housing set-aside should be
provided.
Alternatives:
'Fee -in -lieu' contributions. These contributions may include money, land or other in-kind
contributions. Rental projects may appeal on site requirement in exchange for a 'fee -in -
lieu' option. This may be provided off-site but only within the Riverfront Crossings Area.
Comment
A 'fee -in -lieu' contribution allows a developer to make a cash payment instead of constructing the
required affordable housing units. The fee is to be based on the financial pap between market
rate units and affordable units. These payments are deposited into an affordable housing fund or
managed by the City to fund/assist other affordable housing opportunities. Fee -in -lieu provisions
are common in 1H ordinances to provide flexibility and to acknowledge that affordable housing
may not be practical (e.g. a development loses money as an unavoidable consequence of the IH
requirement). Fees allow for the creation of an affordable housing fund to provide housing in
other locations, fund non -profits, provide down -payment assistance for home ownership, or other
similar types of affordable housing funding.
PRINCIPLE #6 - Funds created from 'fee -in -lieu' contributions should be used to create an
Affordable Housing Fund for the sole purpose of supporting affordable housing in the
Riverfront Crossings area.
Use of funds:
• Funds can only be utilized for affordable housing located within the Riverfront Crossings
Area.
• Funds may be used for down payment assistance for owner -occupied households.
i. Down payment assistance made available for income -qualifying households must be
repaid upon resale of the unit. Down payment assistance may then be recycled to
another income -qualifying household. Owner is able to keep any equity over and
above the down payment assistance.
• Funds may be used to provide grants/low interest and/or forgivable loans to local
non-profit affordable housing agencies (e.g. Fellowship, Trust Fund, Habitat, other) for
affordable housing development.
Oversight of funds:
• A third party agency should manage the Affordable Housing Fund. A third party (e.g. the
Housing Trust Fund or similar agency) has the expertise and staff to administer this fund
without having to add a City staff. The City may provide criteria by which the funds may
be used and request annual reports on use of the funds.
Comment
City legal staff advise that fees acquired as part of the development process in Riverfront
Crossings must be used solely for affordable housing in Riverfront Crossings.
PRINCIPLE #7 — Affordable housing should be provided to households of a qualifying
income level.
Income Target
Renters: Not to exceed 60% of Area Median Income (AMI). With a TIF project, the City may
negotiate affordability level (i.e. some units at a lower percentage than 60% AMI).
Owners: Not to exceed 110% AMI. With a TIF project, the City may negotiate affordability level
(i.e. some units at a lower percentage than 110% AMI).
Elderly/Disabled: Developments designed and utilized for elderly/disabled are not required to
provide an affordable housing set-aside.
Comment
The AMI for a 3 person household is $74,100. Affordable housing in Riverfront Crossings is
being defined at 60% AMI for rental housing ($44,460 for 3 person household and is the funding
level for federal Low Income Housing Tax Credit projects) and 110% AMI for owner occupied
units ($81,510 for 3 person household). The greatest need is for affordable rental housing
because almost 213 of all renters in the community are cost -burdened (i.e. pay more than 30%
of adjusted income for rent).
Inclusionary Housing Ordinance
Riverfront Crossings District
Sub -Committee Draft
April 7, 2016
Findings.
• 2008 & 2013 Iowa City Area Housing Market Analysis findings
• Impediments to Fair Housing Choice findings
• City Steps 2016-2020 goals
Iowa City Comprehensive Plan goals iIIIIII ���i6
• Based upon the review and consideration of the's recent hou'sino,SStudies, reports, and analysis,
uu r' ry iF.
it is clear that the provisions of this chap{eviler, necessary in of�de to preserve and increase
diversity of housing opportunities for the city{ residents. I�{�{p
• A diverse housing stock is necessary in
income levels so that they may have
institutions, and community services and
people of all
educational
• The Downtown and Riverfront C}�ossirigysMaster Plan'Ipjgvides a vision, goals and objectives
encouraging pedestrian -oriented, I IN 'se redeveloprrren within the Riverfront Crossings
District. 11 99j �III1{���
IIIIllllll ,113i, li�illl{ILIIl)I
• The City adoptAll
form-based code asia�Qr{m I tool ojp�slement the Master Plan's vision for
this District asla Ikable ands sustainable urba N. eighborjj�iood.
• This District is ripe%i{IredeYelopr�e5nt for a'ii�ucilof uses in residential uses, because the
Citythai„filn{ly ao�dla,lfore taa`fan�thelC�tcode
due t'thelhi Ily h landrents
(rices and lowhave
vacancbeen
�illp � YPl! P FIsp ,118512t, ! Y 9 P Y
tjrgtgs reflective bfit�{ ,desirati _lclose prii ltp downtown and campus.
• THQ mix of uses allowed under the Riverfront Crossing form based code is intended to encourage
a waWa`b!J'e�, pedestrian-fr ehdly area;where residents can work, live and play, and will increase the
need fobhousing that is aft`prdable tot workforce.
• The Riverfroht{r� ossings f.... based zoning code allows for redevelopment at higher densities
than currently is{ [l wetil�er existing zoning, and such increase in density will exacerbate the
market factors th{{$;ge limited the availability of affordable housing in areas close to the center
of town, tilil�
• The Riverfront Crossings form -based zoning code provides up to five floors of additional building
height bonus incentive for reserving a minimum of 15% of the dwelling units as affordable or
workforce housing.
• Market factors would not likely result in the creation of affordable housing without the City
providing incentives and requiring the creation of affordable housing in new developments within
this District to mitigate the deleterious effects of high levels of economic development.
Page 1
• There is a public health, safety, moral and general welfare need for affordable housing in the
Riverfront Crossings District.
• Affordable housing is most effective at providing socioeconomic integration when it is distributed
throughout each development and throughout the Riverfront Crossings District, is not
concentrated in certain areas, and the affordable units are indistinguishable from the surrounding
market -rate housing in quality, design, and general appearance.
• Permanent and long-term housing in proximity to the source of employment serves to stabilize
the community, reduce regional traffic congestion, and minimize impacts on adjacent
communities.
• The City has been granted the power to adopt
population, the location and use of buildings, strut
• The City has divided the city into districts
the state and municipal zoning codes and
construction and use of buildings, structur
• The City has furthermore adopted a Iowa Citi
preserve the availability of agricultural land; to
lessen congestion in the street; to promote
overcrowding of land; to avoid ur d�ife concentn
energy resources; and to facilitaigllih�Mdegi
schools, parks and other public Q"yife}Qtsr,
• The Iowa Lec
Section 186.1
established to
protects histoi
near
consider'th'e' be:
:s waiver astaQi
from requiring a(
shlnq limitations
• The City Council',
and sets among,
diverse housing 1
social justice and
Purpose.
The purposes of this chapter are to:
restrictions on the density of
sfj�"c�ited to carry out the purposes of
ific.N9ulations and restrictions on the
the disiinc districts.
ve Plan aj,lioning code designed to
�clent urban development patterns, to
t general weifa ge to prevent the
lotion; to promote the conservation of
of transportation, water, sewerage,
:d`tllowa Sm'b' jl Ilanning'P i ciples", codified in Iowa Code
rclude�lamong o�re"r"., (forts o facilitate the revitalization of
ghbor o9dsJb l prornot,pb ,development that conserves land,
>tes pedestrian accessibility, and integrates different uses of
the types, available housing, and promoting the location of
andi emplo�l lent centers.
III d s 1p��56, r mixed income neighborhoods by requiring that all
a recipierjt�lbf services under a home or community-based
ldential use of property for the purposes of zoning; prohibiting
eption or variance for such a use; and prohibiting cities from
the;; proximity of one such residence to another (Iowa Code
n intends to foster a more inclusive, just and sustainable Iowa City,
ies the encouragement of a vibrant and walkable urban core with
ce points for a variety of income levels, and the advancement of
affordable housing programs.
(a) Implement the housing goals of the Iowa City Comprehensive Plan, and 2016-2020 City Steps;
(b) Implement the housing goals of the Riverfront Crossings Master Plan;
(c) Implement the Strategic Plan's intention for a more inclusive, just and sustainable Iowa City;
Page 2
(d) Promote the construction of housing that is affordable to the community's workforce;
(e) Increase opportunities for people to work and live in the city;
(f) Implement a recommendation of the 2014 Analysis to Impediments to Fair Housing, which
recommended an Inclusionary Housing program for the Riverfront Crossings District as an approach
for making diverse housing available; and
(g) Promote a balanced community that provides housing for people with diverse income levels.
Definitions.
Affordable Housing: The collective reference to Owner
Rental Housing.
Housing and/or Affordable
Affordable Rental Housing is housing that is rented for nol mbFe'tha�lt he HUD Fair Market Rent for the
Iowa City, IA HUD Metro FMR Area, as adjusted anpually, and re ted to households whose income
is equal to or less than 60% of the area medians rii fp"mte (AMI) for to a`j,Ity, as adjusted annually.
Owner -occupied Affordable Housing is housinc- T arist sold at a price nolg�eater than the most current
published Housing and Urban Development' H I D� homeownership sale price limit for existing and
new homes for households with an annual househod income a ual to or lesslthan 110% of the area
median income (AMI) for Iowa City, as adjusted annually. ,,IIIIIII�' il�lilt,.
Income -eligible Household: A housel�dl'dj
Owner -occupied Affordable Housingld
less than 110% of the area median ins
an income -eligible household for leasi
has an annual income.eaual.to or less
(a) Affordable Housing R6401fe
d IPll,rr e
Exce t EI gr' !A artme
dwt(Iin units on I� n"d zoi
AffS} able Housing dt911
numbe�Ilof dwelling untispl
fractional`number, this fract
fifty perce(Iestablish the
(b) Methods of Ag�ipging Affor(
e-ellolbldpbusehold for purpose's of purchasing an
if that household has an annual income equal to or
or
Iowa C41las adjusted annually. A household is
able Rentalloi�sng dwelling unit if that household
fa
t{teIQi1llfor Io�vIjGity, as adjusted annually.
fllll�i
j'Id0Velopme(tts, any development containing ten or more
:rfronij"C'�ossings zoning designation is required to provide
an amounlltequal to or greater than ten percent of the total
percent of the total number of dwelling units result in a
Ir�ounded,rup to the nearest whole number for any fraction over
uuv
umber of Affordable Housing dwelling units.
The Affordable Ho' 0,ing Regia' . t may be satisfied through the provision of i) on-site owner -
occupied affordable hosts ngl;Il��on-site Affordable Rental Housing, iii) a fee in -lieu contribution to an
affordable housing fun -site affordable housing, and/or v) contribution of land. If the owner
desires to utilize methods iv or v, the owner must establish that methods i, ii, and iii cannot feasibly
be satisfied on-site, as reasonably determined by the City. Upon rezoning to a Riverfront Crossings
zoning designation, the property owner shall enter into an affordable housing agreement with the
City establishing which method or methods it will utilize, which must be executed prior to the close of
the public hearing on the rezoning application. Upon application for a building permit, the property
owner shall enter into an agreement with the City detailing how it will satisfy the obligations of this
code, which shall include details of the programming and development requirements if applicable.
The City Manager is hereby given the authority to execute such an agreement, which shall be
recorded in the records of the Johnson County, Iowa Recorder's Office at owner's expense.
(c) Term of Affordability:
Page 3
The Affordable Housing dwelling units shall remain so for no less than ten years from the issuance
of the Certificate of Occupancy for the dwelling unit.
(d) Occupancy:
No Affordable Housing dwelling unit shall be occupied by anyone other than an Income -eligible
Household. Households that wish to purchase or rent Affordable Housing dwelling units shall be
subject to verification of their eligibility in accordance with the applicable Income Verification
provisions set forth below, and reasonable asset limitations set by the City Manager or designee in
order to accomplish the purposes of this chapter.
(e) Deed Restriction:
A deed restriction documenting the Affordable Housing require(7ibots, selected method of achieving
affordability, term, applicable resale restrictions, and applicle�Il11occupancy and rental restrictions
shall be placed upon the Owner -Occupied Affordable H.oRt}�j,9y'dwelling unit or, in the case of the
Affordable Rental Housing, shall be placed upon thef �a lye r g developed. This deed restriction
shall be recorded with the Johnson County, Iowa R`eErorder. r�,a,,Iawfully referenced in any deed
conveying title of any such unit or land during the efip of affordabi(t)gt,
(f) Parking:
Affordable Housing dwelling units shall be
code.
In addition to satisfying the General Re(
must satisfy the following requirements:
1. Development Require i
(a) Dwelling Unit TypcolP{�(
The Affordable HorlSik
proportion to the mark
(b) Dwell'�nE� ��lyike(( �jjnd
T � � 'f rdablerr0 Z,11"
malP, rate dwelling �i
City M€(ager or design
(c) Location.[��t
The Affordable IHRusin
integration and ayrojd 0different distribudA,$Vil
that which is required,$
(d) Timing of Construction:
shall
size's]
type,
il from the parking otherwig required by the zoning
forthjI Owner -Occupied Affordable Housing
comprised of the same mix of dwelling unit types in
,,# development.
least eighty percent of the floor area for the
be of similar quality, or as approved by the
units shall be distributed throughout the development to achieve
n or segregation of the Affordable Housing dwelling units, unless a
the provision of additional Affordable Housing dwelling units than
as approved by the City Manager or designee.
The Affordable Housing dwelling units shall be constructed and issued a certificate of occupancy
concurrently with or prior to the market -rate dwelling units in the development.
2. Program Requirements.
(a) Occupancy: An Affordable Housing dwelling unit shall, at all times during the Term of Affordability, be
occupied by an income -eligible household as the household's primary residence.
(b) Income Verification: The annual household income shall be determined according to the HUD Part 5,
Section 8 regulations on Annual Income codified in 24 CFR 5.609, as amended, and verified by the
City prior to close of the sale.
Page 4
(c) Rental Restriction:
An Owner -Occupied Affordable Housing unit may not be rented, except an owner may rent or lease
a bedroom in the unit.
(d) Sale Restrictions:
In addition to the deed restrictions required above, all required Owner -Occupied Affordable Housing
dwelling units shall be subject to the following sale restrictions during the Term of Affordability,
compliance with which shall be verified by the City Manager, or designee, prior to closing on the
sale.
(1) Approved Purchasers: A seller of an affordable dwelling unit must sell the unit only to an
income -eligible household. II
(2) Sale Price: The sale price of any Affordable Ho siridw dwelling unit shall not exceed the
purchase price paid by the original income-eligibleotFf ejhold purchaser, with the following
exceptions: �IIi II
(A) Closing Costs: Customary closing costs
f siii�tcosts of saa.
(B) Real Estate Commissions: Costs Ij f 1;elal estate commi sioliis paid by the seller to a
licensed real estate agent. 111111
I II�1� 'I
(C) Permanent Capital Improvements: eai� able v lue added tol�ti�eflc welling unit due to
permanent capital improvements install t•teq y }" P
ed within the unit b the seller pursuant to a
properly issued building, a m't.
I ip
I}I�II II ,. II II``
(D) Inflation: The resale pricel�n�ay ,'ncludel IIIlllela'sonable inflationaryl factor or shared
a reciation factor. til%,da
`,,,,,Inc
'II ��� 11
� .'ll ��
(3) Special Fees: The seller of an able�dFte�llI unitls 11 �ot levy or charge any additional
fees or any fine�sfeeior demanIlan+y other!'ItjjM Meta consderation other than provided in
this chapter.
dlllll I III�6 j`�IIII}tdl�Illi I�l�l I II!}Ib
In addition to satisfying tfibliGener{ Requ'rements'Isett forth above, Affordable Rental Housing must
satisfy thefollgly'iriglY,equireme�i;��l}III litiit}}�Illlhh. Iillil,
DeII dIIi''o�pment Requirements:'IIIIIII}s SII}IIIIiI
(a) AffaYdable rental u(riitjtjal'!'shall be provided in accordance with the Development Requirements for
ownerE'o"tccu ied Affordabl' IN sing se; fofth above.
tenant . i I
(b) If a tenantllnitially deemed n incomle-.e'ligible household for purposes of occupying an Affordable
Housingdwellig unit pursuan to this chapter, but is subsequently deemed no longer income -eligible
upon annual e, ination ofll}jouse hoI income, that tenant's unit shall not be considered an
Affordable Housin"11" lling uni 2nd the rent can be adjusted to market rate. To maintain compliance
with the Affordable Hoi$I�gl�equirement, the next available rental unit in the project of comparable
size or larger must be r'engd to an Income -Eligible Household. To that end, the Affordable Rental
Units need not be specif'cally designated in a fixed location, but may be floating throughout the
development.
2. Program Requirements.
(a) Rental Rate: The monthly rental rate shall be no more than the Fair Market rents as published by
HUD for the Iowa City, IA HUD Metro FMR Area, as adjusted annually.
(b) Occupancy: Affordable rental units must be rented to income -eligible households.
(c) Income Verification: The landlord shall annually verify to the City that the Affordable Rental
Housing units are occupied by income -eligible households. Prior to the commencement of a lease,
the landlord shall determine a potential tenant's annual household income according to the HUD Part
Page 5
5, Section 8, regulations on Annual Income codified in 24 CFR 5.609, as amended. Upon extension
or renewal of a lease, the landlord may determine a tenant's annual household income based upon
federal income tax returns for all adults in the household.
(d)The owner must annually verify to the City that it is in compliance with these Program
Requirements, and provide any documentation as deemed necessary by the City to determine
compliance, which may include examination the documents used to verify tenant income. Any
violation of this requirement may result in immediate suspension of any rental permit issued for the
applicable unit.
Fee -in -Lieu Contribution
In lieu of providing Affordable Housing dwelling units, an owner glay contribute a fee to a Riverfront
Crossings District affordable housing fund to be established by the ,3,The contribution per dwelling unit
shall be determined biennially by resolution of the City Counci �S£ upon a formula that analyzes the
difference between renting a market rate unit for the Ter rdability and renting a dwelling unit
affordable to an income -qualified household. The fund s el i"iitized solely for affordable housing
purposes, which may include administration costs, in th�IRiveiilront CroF,t�gs District.
11
Transfer of Affordable Dwelling Units Offsite tl i��i}' `tljj(1ii111E
Upon the Owner establishing that the Affordablel�i'a�usiiing Requirements ca itgt,be satisfied on-site, as
reasonably determined by the City, it may be �safisfied by designating offAte existing or newly
constructed dwelling units in the Riverfront Crossing sl(ptstrict as{{A,Wordable Housingijdwelling units. Any
transferred Affordable Housing units sha� �m no way wait f1rei�956 any obligation toiptrovide Affordable
Housing units within the developmenttg which the obliga it�q�je r'ansferred. In additioh to satisfying the
General Requirements set forth above, t,esei�'t� must satis'e following requirements.
(a) Development Requirements: �"III, �I ��`)����� �t(���i Iiia
�4��)
(1) Off -Site Affordable DwF�lling Units, hether a re own r,oceupied or rental units, shall be
3iI ittll0i§Y 4 3 alt iii
provided in aecb dapc=e y th the De 2c)}3jr, merits, lbr owner -occupied Affordable
t 6i Ckt 91 (¢g11
Housing seta o th abov } City res"Neest �he righ LV jdeny a request to transfer affordable
housing uni sl �as a partic lai developmi 3}I ifi it would Me'sult in an undue concentration of
Affordable Houiq nits witfi (that developent.
(2) Timi❑❑g, Where the"l rda6jj� piing Requ)i ent is to be met through the provision of newly
,(14 'li iIh , t i m 9 t, [ t i i i
co sifiio edCd�velling iJsuch'h1{s s all be gonstructed and pass final inspection no later
( '# illir.. t9 ❑ Bat t ( Ftti1• t a
!!hon the da a "thQ occurpartC permit islssugd or the development creating the need for the
I tAA ordable Hout �t4g )� °� e g Mit P Y Y 9 9
si ) nless h rwise a ree upon b the Cit Manager, or designee. Where
#ei ffordable Ho!!�t g Req ire ant is to be met through the provision of existing off-site
dwe (in units, they sf `al )be esta fished as Affordable Housing dwelling units prior to issuance
of aRbbcupancy pernit 0r the deuelbpment creating the need for the Affordable Housing. The
marketiitb41t,
e Affords " ousing dwelling units should occur no later than one year after the
first markt=o dwellinglunit in the site that generated the requirement passes final inspection,
eg agree' a`� 'Pon by the City Manager. The deed restriction for the off-site
Affordable Ho siri'gi shallh recorded prior to issuance of a building permit for the development
creating the needio sIe Affordable Housing.
(b) Programming Requirements:
(1) Where the Off -Site Affordable Dwelling Units are to be Affordable Rental Housing, they shall
comply with the programming requirements for Affordable Rental Housing set forth above.
(2) Where the Off -Site Affordable Dwelling Units are to be Owner -Occupied Affordable Housing,
those units shall comply with the programming requirements for Owner -Occupied Affordable
Housing set forth above.
Land Dedication
Upon the Owner establishing that the Affordable Housing Requirements cannot be satisfied on-site, it
may be satisfied by the dedication of land to the City of Iowa City, or an entity designated by the City of
Page 6
Iowa City, for construction of affordable dwelling units in accordance with the provisions of this chapter,
upon consideration of the following factors.
(a) Location: The land shall be located in the Riverfront Crossings District, in an area appropriate for
residential redevelopment, as determined by the City;
(b) Number of Affordable Units: The total dwelling units possible on the land shall be equal to or greater
than the number of required Affordable Housing dwelling units.
(c) Dwelling Type: The land shall allow for the provision of affordable units of equivalent type (single-
family, multifamily, town home, etc.), floor area, and number of bedrooms to that which would have
been otherwise required;
(d) Land Value: The value of land to be dedicated shall be determ-Jb1 at the cost of the developer, by
an independent appraiser, who shall be selected from a list1o1'�certified appraisers provided by the
City, or by such alternative means of valuation to which a developer and the City agree.
(e) The City reserves the right to refuse dedication of land ilrills�alti'sfaction of the Affordable Housing
Requirement if it determines, in its sole discretion, t at suclh a dedication is not in the best interests of
the public for any reason, including a determinatior���at the City is no,#1l ely to construct or administer
an affordable housing development project i 1f timely manner due to thel unavailability of funds or
other resources. Additionally, where the value o t}re land proposed to beldedicated is less than the
value of the fee in lieu contribution establishe,accordance with the proyi ions above, the City
reserves the right to require an owner to contributela ee ma ing Up this differe 1 ce 'n values.
I
I I
��i�1111I��r,_ l��j ��I�r
Note: Changes will be necessaryto the yen ,Permit code, inc(gdiPg but not limited to: Sections 17-5-14,
17-5-16(c). Changes will be necessaMto M816 ht bonus pmv�ions in 14 -2G -7G(10). Changes will
be necessary to the "alternatives to mrnlr um ped31' egwrements" set forth in 14 -5A -4F(4).
,talll��((Ili��� ``''�111j1
Administrative Regu dons.
To the extent the City M�aager, or dgsignee, deems necessary, rules and regulations pertaining to this
it
chapter will be developed, rri intaineii)Iapd enforced11 order to assure that the purposes of this chapter
4A .1nIU ❑ ,171 r,,. 11 .
are accom I h`ed. the uded in these administrative reg ahons shall be details regarding how the City will
pp#�' t4"111�If41t�llt . ❑71111 1
determinelW ether a ur�if ts7 compar le" for ort It. Ilipancy Cas an Affordable Rental Housing unit. No person
shall vidfate any rule or reg11 '11111111
Cation issuedj under this -section.
'111Monitoring11 1 Practice.l 1 I I' ",11
I` +I i
The City will adolpt a practice of periodically having the City Manager or designee present sufficient
information to the &.t lCouncil so diet it can effectively review the operation of this chapter and determine
whether any of the71p"rovisions gf{ltkis chapter should be amended, adjusted, or eliminated. Such
information should be slift ent to!a low the City Council to evaluate the following:
�If�=(IiIiIP'
(a) Effectiveness: The effec iveness of this chapter in contributing to the purposes of this chapter, which
may include information orilthe net increase in affordable housing for the Riverfront Crossing District;
(b) Trends: Any demographic trends affecting housing affordability indicating the need for amendments
or alterations to the provisions of this chapter;
(c) Integration: The level of integration of the provisions of this chapter with other tools being utilized by
the city as part of a comprehensive approach toward obtaining the goals of this chapter.
Page 7
Information submitted by Cheryl Cruise
May 13, 2016
Planning and Zoning Commission,
You will be receiving a draft of the inclusionary housing ordinance for Riverfront Crossings.
I have followed the work of the committee on this draft and have some comments about the
ordinance related to affordable rental units.
The draft recommends that affordable housing rental units be reserved for households with
income of 60% AMI as defined by HUD for Median Family Income from the American
Community Survey. (All data from this Census Bureau survey comes with caveats about
sampling errors, non sampling errors, and large margin of error to be taken into account which
are too often ignored.) AMI, or Area Median Income, is reported by Census Bureau as Johnson
County Household AMI, Family Median Income, and Non -family Median Income. Each category
has large differences between these groups.
Compare the draft 60% AMI recommendation with other documents and groups:
* Iowa City Public Housing: 80% AMI and no move needed if income rises.
* CDBG taxpayer purchased rental units: 80% AMI.
* 2007 Iowa City Metro Affordable Market Analysis: 80% AM].
* 2014 Update to the 2007 Market Analysis: low/moderate income or 80% to 120% AMI.
* "Analysis of Impediments to Fair Housing Choice: Iowa City", February 2014: 80% AMI.
* "Increasing Affordable Housing in Iowa City" by affordable housing experts, September
2013: 80% AMI.
* City Steps 2016-2020: focus on low/moderate income, 80+% AMI.
* "Workforce Housing": 80% AM] to 120%AMI.
*Andy Johnson, administrative assistant to Johnson County, former director of Johnson
County Housing Trust Fund: " 80% AMI paying 30% of income for housing."
The committee thought the ordinance should be like Low Income Housing Tax Credit (LIHTC)
projects which are currently aimed at 60% AMI but also have large tax credits to make the
project work. This local ordinance is intended to cover newly constructed units with no TIF
subsidy.
HUD publishes yearly a maximum income for LIHTC units. HUD also publishes the maximum
rent for each size of unit. HUD defines affordable rental housing as costing 30% of income for
rent and utilities,
The maximum gross rent= 30% of the income for the household size that is derived from the
bedroom count for the AMI that matches the unit's set aside such as 60% AMI. HUD defines
units by persons in household this way:
* Studio=1 person income limit
* 1 bedroom =1.5 persons
* 2 bedroom = 3 persons
* 3 bedroom = 4.5 persons
Inclusionary housing ordinances are intended to provide a set percentage of new units as
"affordable housing." Affordable housing is consistently defined in the nation as not being "cost
burdened" which is defined as not paying more than 30% of income for housing costs.
Instead of using the 30% of income, the draft ordinance defines affordable housing as not
paying more than the HUD calculated yearly Fair Market Rent as a maximum rent. Fair Market
Rent is calculated for use with the Section 8 program and is neither "fair" nor "market".
The national association of directors of all the public housing authorities (PHADA) tells HUD
every year that Fair Market Rent is "flawed, not credible, inaccurate, and volatile, showing wild
swings from year to year."
Here is how to get Fair Market Rent:
Start with the annual American Community Survey. There were 918 households in the 2014
sample. This was about one and a half percent of all households in Johnson County in 2014.
Take out the renters, about 38% of the 2014 sample.
That makes about 350 renter households out of about 21,200 rental units in Johnson County.
From that, take out just the 2 bedroom units of people that moved recently.
From that tiny sample, combine with the previous 4 years of tiny samples.
Make some mathematical adjustments to find the 40`" percentile and then add a cost of living
escalator.
This answer will be fair market rent of 2 bedrooms for 2017. Make percent calculations to
decide what studio, 1 bedroom, 3 bedroom will be.
Because of the small survey sample Fair Market Rent often goes down instead of up. It is
unpredictable and inconsistent. Right now Fair Market Rent approximates 40% to 55% AMI for
small units and 80% AMI for 3 bedroom units.
If the goal is to relieve cost burden, then the maximum rent for affordable housing should use
the 30% of income threshold; not less than that. It is easy to do the math but HUD also
provides the 30% of income calculation each year.
Publicly subsidized housing assists households with very low income (50% AM[) and extremely
low income (30% AMI). This is now about 13% of Johnson County rentals.
Mortgage interest is tax deductible for people who can buy housing.
Inclusionary housing is intended for those in the middle.
Since the Riverfront Crossings ordinance could be a model for the county, I suggest that our
definition of affordable housing be similar to the rest of the country and HUD.
Best regards,
Cheryl Cruise
Iowa City, Iowa
Attachments:
Johnson County definition of affordable housing
American Community Survey raw data for Area Median Income
ACS raw data on cost burden by age
HUD income limits for LIHTC projects 2016
HUD calculated maximum gross rent for LIHTCs 2015
Johnson County definition of affordable housing
Affordable Housing: Housing is affordable for households with incomes at or
below 80% of the HUD established Area Median Income if residents pay no more
than 30% of their gross monthly income for either; rent, insurance, and utilities or
mortgage, principal, interest, insurance and homeowner fees.
S1903 MEDIAN INCOME IN THE PAST 12 MONTHS (IN 2014 INFLATION-ADJUSTED DOLLARS)
2014 American Community Survey 1 -Year Estimates
Although the American Community Survey (ACS) produces population, demographic and housing unit estimates, h is the Census Bureau's
Population Estimates Program that produces and disseminates the official estimates of the population for the nation, states, counties, cities and
towns and estimates of housing units for states and counties.
Supporting documentation on code lists, subject definitions, data accuracy, and statistical testing can be found on the American Community
Survey website in the Data and Documentation section.
Sample size and data quality measures (including coverage rates, allocation rates, and response rates) can be found on the American
Community Survey website in the Methodology section.
Source: U.S. Census Bureau, 2014 American Community Survey 1 -Year Estimates
Explanation of Symbols:
An'- entry in the margin of error column indicates that either no sample observations or too few sample observations were available to compute
a standard error and thus the margin of error. A statistical test is not appropriate.
http://factfinder.census.gov/faces/tableservices/Isf/pagesyproductview.xhtml?pid=ACS 14 1YR 51903&prod Type=table 10/18/15. 1:33 PM
Page 1 of C
rT
Johnson County, Iowa
Versions of this
table are available
1
Total
Median income (dollars)
for the following
30
Margin of
Margin of
years:
3f
Subjeot
Estimate
Error
Estimate
Error
2014 1,
Households
-:,
55,574
+/-1,409
60,254
+/-4,974
2013 !
One race--
2012
White
86.7%
+/-1.7
65,107
+/-5,373
2011
Black or African American
N
N
33,677
+/-6,116
2010
American Indian and Alaska Native
N
N
N
N '
2009
Asian
N
N
38,560
+/-18,182
2008
Native Hawaiian and Other Pacific Islander
N
N
-
2007
Some other race
N
N
54,598
+/-19,692-
2006
Two or more races
N
N
N
N
2005
----t
Hispanic or Latino origin (of any race)
N
N
60,325
+1-30,1 01
White alone, not Hispanic or Latino
84.7%
+/-1.7
64,886
+/-5,442
HOUSEHOLD INCOME BY AGE OF
HOUSEHOLDER
15 to 24 years
14.2%
+/-1.8
14,529
+/-5,500
25 to 44 years
38.2%
+/-2.0
62,357
+/-11,398'
45 to 64 years
32.1%
+/-1.9
79,818
+/-9,040
65 years and over
15.4%
+/-1.2
59,390
+1-11,7641
FAMILIES ---
--'
Families
31,520
+/-1,965
84,137
+/-2,935
With own children under 18 years
N
N
79,920
+/-5,379
With no own children under 18 years
N
N
87,079
+/-8,550
Married -couple families
N
N
96,776
+/-5,133
-
Female householder, no husband present N
N
36,555
+1 -7,079 -
Male householder, no wife present
N
N
48,360
+/-10,747
NONFAMILY HOUSEHOLDS
Nonfamity households
24054
+/1,972
269322
+/-3,269
Female householder
53.5%
+/-4.3
28,978
-y.
+/-6.223 i
Living alone
350%
+/-4.5
28,772
+/-7,988 '.
Not living alone
18.5%
+/-4.0
29,309
+/-13,582
Male householder
46.5%
+/-4.3
25,294
+1-3,837
Living alone
31.6%
+/-4.8
22,359
+/-4,554 .
Not living alone
14.9%
+/-36
31,608
+/-13,459'
PERCENT IMPUTED
Household income in the past 12 months
22.8%
(X)
(X)
(X)
Family income in the past 12 months
22.4%
(X)�
(X)
(X);
Nonfamily income in the past 12 months
21.8%
(X)
(X)
(X)'i
Source: U.S. Census Bureau, 2014 American Community Survey 1 -Year Estimates
Explanation of Symbols:
An'- entry in the margin of error column indicates that either no sample observations or too few sample observations were available to compute
a standard error and thus the margin of error. A statistical test is not appropriate.
http://factfinder.census.gov/faces/tableservices/Isf/pagesyproductview.xhtml?pid=ACS 14 1YR 51903&prod Type=table 10/18/15. 1:33 PM
Page 1 of C
nn = entry in me estimate wiumn moicau>s mat eimer no sample ooservauons or too raw sample ooservaaons were avaname to compute an
estimate, or a ratio of medians cannot be calculated because one or both of the median estimates falls in the lowest interval or upper interval of
an open-ended distribution.
An =' following a median estimate means the median falls in the lowest interval of an open-ended distribution.
An'+' following a median estimate means the median falls in the upper interval of an open-ended distribution.
An -'entry in the margin of error column indicates that the median falls in the lowest interval or upper interval of an open-ended distribution. A
statistical test is not appropriate.
An " entry in the margin of error column indicates that the estimate is controlled. A statistical test for sampling variability is not appropriate.
An 'N' entry in the estimate and margin of error columns indicates that data for this geographic area cannot be displayed because the number of
sample cases is too small.
An '(X)' means that the estimate is not applicable or not available.
Data are based on a sample and are subject to sampling variability. The degree of uncertainty for an estimate arising from sampling variability is
represented through the use of a margin of error. The value shown here is the 90 percent margin of error. The margin of error can be interpreted
roughly as providing a 90 percent probability that the interval defined by the estimate minus the margin of error and the estimate plus the margin
of error (the lower and upper confidence bounds) contains the true value. In addition to sampling variability, the ACS estimates are subject to
nonsampling error (for a discussion of nonsampling variability, see Accuracy of the Data). The effect of nonsampling error is not represented in
these tables.
While the 2014 American Community Survey (ACS) data generally reflect the February 2013 Office of Management and Budget (OMB)
definitions of metropolitan and micropolitan statistical areas; in certain instances the names, codes, and boundaries of the principal cities shown
in ACS tables may differ from the OMB definitions due to differences in the effective dates of the geographic entRles.
Estimates of urban and rural population, housing units, and characteristics reflect boundaries of urban areas defined based on Census 2010
data. As a result, data for urban and coral areas from the ACS do not necessarily reflect the results of ongoing urbanization.
Source_ U.S. Census Bureau I Amencan FactFinder
http://factfinder.census.gov/faces/tableservicosljsf/pages/productview.xhtml?pid=ACS 14 1YR_51903&prod Type=table 10/18/15, 1:33 PM
Page 2 of 2
B26072 AGE OF HOUSEHOLDER BY GROSS RENT AS A PERCENTAGE OF
HOUSEHOLD INCOME IN THE PAST 12 MONTHS
Universe: Renter -occupied housing units
2014 American Community Survey 1 -Year Estimates
Although the American Community Survey (ACS) produces population, demographic and housing unit estimates, it is the
Census Bureau's Population Estimates Program that produces and disseminates the official estimates of the population
for the nation, states, counties, cities and towns and estimates of housing units for states and counties.
Supporting documentation on code lists, subject definitions, data accuracy, and statistical testing can be found on the
American Community Survey website in the Data and Documentation section.
Sample size and data quality measures (including coverage rates, allocation rates, and response rates) can be found on
the American Community Survey website in the Methodology section.
Source: U.S. Census Bureau, 2014 American Community Survey 1 -Year Estimates
Explanation of Symbols:
An ' " entry in the margin of error column indicates that either no sample observations or too few sample observations
were available to compute a standard error and thus the margin of error. A statistical test is not appropriate.
An -' entry in the estimate column indicates that either no sample observations or too few sample observations were
available to compute an estimate, or a ratio of medians cannot be calculated because one or both of the median
estimates falls in the lowest interval or upper interval of an open-ended distribution.
http://factfinder.census.gov/faces/tabiGservices/jsf/pages/productview.xhtml?pid=ACS 14 1YR 825072&prod Type=table 10/29/15, 3:38 PM
Page 1 of 2
Johnson County, Iowa
Versions of this
1
table are available
Estimate
Margin of Error
for the following
29 Total:
21,241
+/_1,872
years
of
29 Householder 15 to 24 years:
7,688
+/-1,095
2014 0
Less than 20.0 percent
864
+/-612
2013
i
i
20.0 to 24.9 percent
314
+/-234
2012
25.0 to 29.9 percent
172
+/-207
2011
_
30.0 to 34.9 percent
�_-
399
+/-369
2010
35.0 percent or more
4,686
+/-1,111
2009
Not computed
---------FFF
1,253
+/-627
2008
Householder 25 to 34 years
6.312
+/-1,200
2007
Less than 20.0 percent
1,693
+/-666
2006
20.0 to 24.9 percent
�
672
+/-469
2005
25.0 to 29.9 percent
637
+/-454
30.0 to 34.9 percent
358
+/-292
35.0 percent or more
2,881
+/-986
_
Not computed
71
+/-100
Householder 35 to 64 years:
5,740
+/-1,015
Less than 20.0 percent
1,691
+/-533
20.0 to 24.9 percent
844
+/-504
25.0 to 29.9 percent
589
+/-369
_
30.0 to 34.9 percent
114
+/_158
35.0 percent or more
2,216
+/-831
Not computed
-
286
+/-259
Householder 65 years and over.
1,501
+/-479
Less than 20.0 percent
97
+/-90
20.0 to 24.9 percent
84
+/-84
25.0 to 29.9 percent
74
+/-96
30.0 to 34.9 percent
61
+/-99
35.0 percent or more
1,054
+/-464
t
Not computed
131
+/-133
Source: U.S. Census Bureau, 2014 American Community Survey 1 -Year Estimates
Explanation of Symbols:
An ' " entry in the margin of error column indicates that either no sample observations or too few sample observations
were available to compute a standard error and thus the margin of error. A statistical test is not appropriate.
An -' entry in the estimate column indicates that either no sample observations or too few sample observations were
available to compute an estimate, or a ratio of medians cannot be calculated because one or both of the median
estimates falls in the lowest interval or upper interval of an open-ended distribution.
http://factfinder.census.gov/faces/tabiGservices/jsf/pages/productview.xhtml?pid=ACS 14 1YR 825072&prod Type=table 10/29/15, 3:38 PM
Page 1 of 2
JM'_' following a median estimate means the median falls in the lowest interval of an open-ended distribution.
An'+' following a median estimate means the median falls in the upper interval of an open-ended distribution.
An— entry in the margin of error column indicates that the median falls in the lowest interval or upper interval of an
open-ended distribution. A statistical test is not appropriate.
An' " — entry in the margin of error column indicates that the estimate is controlled. A statistical test for sampling
variability is not appropriate.
An'N' entry in the estimate and margin of error columns indicates that data for this geographic area cannot be displayed
because the number of sample cases is too small.
An'(X)' means that the estimate is not applicable or not available.
Data are based on a sample and are subject to sampling variability. The degree of uncertainty for an estimate arising
from sampling variability is represented through the use of a margin of error. The value shown here is the 90 percent
margin of error. The margin of error can be interpreted roughly as providing a 90 percent probability that the interval
defined by the estimate minus the margin of error and the estimate plus the margin of error (the lower and upper
confidence bounds) contains the true value. In addition to sampling variability, the ACS estimates are subject to
nonsampling error (for a discussion of nonsampling variability, see Accuracy of the Data). The effect of nonsampling
error is not represented in these tables.
While the 2014 American Community Survey (ACS) data generally reflect the February 2013 Office of Management and
Budget (OMB) definitions of metropolitan and micropolitan statistical areas; in certain instances the names, codes, and
boundaries of the principal cities shown in ACS tables may differ from the OMB definitions due to differences in the
effective dates of the geographic entities.
Estimates of urban and rural population, housing units, and characteristics reflect boundaries of urban areas defined
based on Census 2010 data. As a result, data for urban and rural areas from the ACS do not necessarily reflect the
results of ongoing urbanization.
Source: U.S. Census Bureau I American FactFinder
http://factfinder.census.gov/faces/tab l eservices/jsf/pages/p rod uctview.xhtm l?p id=AC S14 1YR_B25072&p rod Type= tab le 10/29/15, 3:38 PM
Page 2 of 2
Jul.' FY 2016 MULTIFAMILY TAX SUBSIDY PROJECT INCOME
FAMI R LIMITS SUMMARY
Iowa City, IA HUD Metro FMR Area was subject to HUD's Hold Harmless Policy in 2007 and 2008.
Section 3009(a XfJ(ji) & (Ilj) of the Housing and Economic Recovery Act of 2008 (Public Law 110-289)
defines projects within Iowa City, IA HUD Metro FMR Area as "HUD hold harmless impacted project" if
the project was subject to a policy similar to the rules outlined in section 3009(a)(E)(1) to prevent
income limits from declining. These projects are given special income limits as defined in part (a)(E)(ii)
(II) of section 3009. Income limits and their associated rents are defined by HERA Specified in the
tables below.
Iowa City, IA HUD Metro FMR Area
FY FY 2016
2016 MTSP
MTSP Median 1 2 3 5 6 7 8
Income 4 Person
Income Income Person Person Person Person Person Person Person
Limit Limit
Area Category
50
Percent
)EBB $30,700 $35,100 $39,500 $43,850 $47,400 $50,900 $54,400 $57,900
Iowa Special
City, IA Income
HUD Limits
$86,900
Metro b_4
FMR Percent
Area HERR
Special $36,840 $42,120 $47,400 $52,620 $56,880 $61,080 $65,280 $69,480
Income
Limits
Projects which have not used Income Limits prior to the publication of FY2016 Income Limits for
determining income eligibility and maximum rents use the following income limits
Iowa City, IA HUD Metro FMR Area
FY
2016 FY 2016
MTSP Median IMomPe 1 2 3 4 Person 5 6 7 8
Income Income Person Person Person Person Person Person Person
Limit
imit
Area Category
https://www.huciuser.gov/portal/datasets/it/iI2016/2016sum_mts...y%2C+IA+HUD+Metro+FMR+Area&area choice=hmfa&year=2016 5/13/16, 7:35 AM
Page 1 of 3
Iowa
City, IA
HUD
Metro
FMR
Area
$30,250 $34,600 $38,900 $43,200 $46,700 $50,150 $53,600 $57,050
$36,300 $41,520 $46,680 $51,840 $56,040 $60,180 $64,320 $68,460
NOTE: Official MTSP Income limits, available in pdf and excel formats at this 1ink.may differ
slightly from those calculated in the documentation system and should be used for ALL
official purposes. Underlined headings in both the IL table link to detailed documentation
concerning the calculations of the parameters listed here.
NOTE: Based on paragraph (a)(E)(i) of section 3009 of the Housing and Economic Recovery
Act (HERA) of 2008 (Public Law 110-289), projects that used income limits based on the
FY2009 publication should use the higher of the FY2009 or FY2011 income limits.
Determination of Maximum Income Limits
The following table outlines the maximum set of Income Limits for existing projects within Iowa City, IA
HUD Metro FMR Area to use based on the projects Placed in Service Date:
Iowa City, IA HUD Metro FMR Area
Vintage of Maximum Income Limits
Placed In Service Date Maximum Income Limits
On or before 12/31/2008 FY2015 HERA Special
1/1/2009 to 5/13/2010 )FY2016
5/14/2010 to 5/31/2011 FY2016
6/1/2011 to 11/30/2011 FY2016
12/01/2011 to 12/10/2012 FY2016
12/11/2012 to 12/17/2013 FY2016
12/18/2013 to 3/05/2015 112016
3/06/2015 to 3/27/2016 FY2016
3/28/2016 to Present FY2016
NOTE: Official determinations of maximum income limits and all compliance issues are the purview of
the State Housing Finance Agencies and the Internal Revenue Service. A list of state allocating agencies
and their internet contact information is available here.
https://www.huduser.gov/portal/datasets/il/i 12016 1 2016sum_mts_.y%2C+IA+HUD+Metro+FMR+Area&area_choice=hmfa&year=2016 5113116, 7:35 AM
Page 2 of 3
Services
OurSar .
Student I{ou,m,,
Apartment Rq___
Sin Ie a family.
R.1 Fstaw
I!I m m n, T i
Data
i> m:,
Olhar Housine Data
Where We've Been
Tax Credit
tit_.t�-s
Max Rents/Incomes
Pair Market Rets
XT Database
Diff Dev Areas
Articles
Ne,,Al an Amh,r
Smcial Rcpon,
Eloy;
Contact us
Press
Subscribe to
ifinr; List
Links
Employment
Search
staff
MARKET FEASIBILITY Fon TRE REAL ESTATE
Query Results (Non New England Counties)
For some areas, HUD adjusts rents for low and high housing costs or uses the state
nonmetro area median income. If you notice an incongruity between the county
median income and the reported maximum incomes and rents, it is likely that HUD
has adjusted these figures.
The following results cover two situations. Our first set of rents and incomes is for
existing properties. Such properties may be subject to the "hold harmless" policy in
which rents and incomes are not subject to decreases according to the Housing and
Economic Recovery Act (HERA). The second set of tables illustrates rents and
incomes for properties which have not yet been placed in service. The "hold
harmless" policy does not apply to these properties per HERA. Please visit the HUD
User website to determine which set of income limits apply to your property
2015 Income limits and rents have an as -of date of 3/06/2015
Is this area subject to the Hold Harmless Policy per HERA? Yes
2016 Income Limits for existing properties to which the Hold Harmless Limits
apply per HERA.
State IA
County: Johnson
2015 State Nonmetro Median: $61800
2015 County Median Income: $62300
MSA name: Iowa
City, IA HUD
Metro FMR Area
MAXIMUM INCOMES
HOUSEHOLD SIZE
NY2
600/6
One Person:
$29100
$34920
Two Persons:
$33250
$39900
Three Persons:
$37400
$44880
Four Persons:
$41550
$49860
Five Persons:
$44900
$53880
Six Persons:
$48200
$57840
MAXIMUM RENTS*
UNIT SIZE
600/0
600/p
Studio
$727.5
$873
One -bedroom:
$779.375
$935.25
Two-bedroom:
$935
$1122
Three-bedroom:
$1080.625
$1296.75
Four-bedroom:
$1205
$1446
2016 Income Limits for properties to which the Hold Harmless Limits do not
apply per HERA.
State: IA 2015 State Nonmetro Median: $61800
County: Johnson 2015 County Median Income: $82300
http://www.danter.com/TAXCREDIT/getrents.asp?state=IA&county=Johnson 5/13/16, 7.35 AM
Page 1 of 3
MSA name:
Iowa City, IA HUD Metro FMR Area
MAXIMUM INCOMES
HOUSEHOLD SIZE
600A
In
One Person:
$28850
$34620
Two Persons:
$32950
$39540
Three Persons:
$37050
$44460
Four Persons:
$41150
$49380
Five Persons:
$44450
$53340
Six Persons:
$47750
$57300
MAXIMUM RENTS"
UNIT SIZE
in
NY,
Studio
$721.25
$865.5
One -bedroom:
$772.5
$927
Two-bedroom:
$926.25
$1111.5
Three bedroom:
$1070
$1284
Four-bedroom:
$1193.75
$1432.5
The following Maximum Income
Trends table is for all
properties regardless of Placed In Service Date
Maximum Income Trends 110 years)
2006 Median Income: $68000
2007 Median Income: $68200
2008 Median Income: $71900
2009 Median Income: $76000
2010 Median Income: $77800
2011 Median Income: $79200
2012 Median Income: $80300
2013 Median Income: $75800
2014 Median Income: $79500
2015 Median Income: $82300
'All rents are gross rents (including utilities). Utility allowances must be deducted from these rents to
determine net or street rents.
"For nonmetro counties, if the county median income is lower than the state nonmetro income, the
incomes and rents provided here have already been adjusted by HUD to the state nonmetro income levels
and no further adjustments are necessary.
See here for Fair Market Rents
Run another analysis
Quick Navigation: Go to Darter ....
What's NewI Search Tax Credit I StartsWatch I Free \,,\,letters I Methodology,
Our Services I SI,,there I Horne �Iovment
voLdmer.com
http://www.danter.com/TAXCREDIT/getrents.asp?state=IA&county=Johnson
5/13/16, 7:35 AM
Page 2 of 3
Additional Information Submitted by Cheryl Cruse May 16,
2016
The University of Iowa Initiative for Sustainable Communities will soon be presenting
information on their 2015-2016 project looking at housing and equity.
They will compare Iowa City with 5 other locations that they consider similar because of having
a large University presence and related housing affordability problems. The 5 locations are
Lawrence KS, Chapel Hill NC, Ann Arbor MI, Portland OR, and Burlington VT.
Looking at Inclusionary Zoning in these 5 towns we find:
Lawrence KS- No IZ yet. (Fair Market Rent went up 17.17% in 2013 and down 9.42% in 2014.)
Chapel Hill NC- Uses 65% AMI paying 30% income for gross rent.
Ann Arbor MI- No IZ but defines affordable as 30% income on housing.
Portland OR- Just got legal right to have IZ. For 20+ units uses 80% AMI and 30% income on
housing.
Burlington VT- Oldest IZ ordinance. 80% AMI to qualify. Rent set at the 65% AMI level paying
30% income for gross rent.
The University of Iowa Initiative for Sustainable Communities states
"Affordable housing is defined as housing units paying no more than 30% of
income toward housing, and also with incomes under 80% AMI."
If income of affordable housing tenant rises above the cutoff:
Inclusionary housing draft currently says on first income verification to fail to meet set level, the
tenant goes to market rate rent and is not counted as affordable unit. See "Affordable Rental
Housing" 1b.
Some other communities allow an extra year in order to see if the raise in income holds steady.
Incomes can often rise and then fall again.
The Low Income Housing Tax Credit (LIHTC) programs allow households that exceed 140% of
AMI to be redesignated as a Market Rate Unit.
Public Housing, which can be 80% AMI, currently does not ask people to leave if income rises.
However in Spring 2016 HUD is now proposing that a tenant above 80% AMI must be evicted.
This proposal is meeting with opposition as some want to have "mixed income " in Public
Housing. Others see how long the waiting lists are and feel that higher income households
should move on.
1`' -'FY 2016 FAIR MARKET RENT
r -t _c uEMa
DOCUMENTATION SYSTEM
The Final FY 2016 Iowa City, IA HUD Metro FMR Area
FMRs for All Bedroom Sizes
Final FY 2016 FMRs By Unit Bedrooms
Efficiency One -Bedroom Two -Bedroom Three -Bedroom Four -Bedroom
$552 $665 $863 $1,258 $1,507
The Office of Management and Budget release new Core Based Statistical Area
definitions in February 2013. The Census American Community Survey
incorporated these definitions in the ACS2013 release, which are the basis for
FY2016 Fair Market Rents. HUD has elected to continue use of the pre -2013
definitions except where the post -2013 definitions result in a smaller FMR area.
This is consistent with HUD's objective to maximize tenant choice by allowing
FMRs to vary locally.
The Iowa City, IA HUD Metro FMR Area consists of the following counties: Johnson
County, Iowa. All information here applies to the entirety of the Iowa City, IA HUD
Metro FMR Area.
Fair Market Rent Calculation Methodology
Show/Hide Methodology Narrative
Fair Market Rents for metropolitan areas and non -metropolitan FMR areas are
developed as follows:
1. 2009-2013 5 -year American Community Survey (ACS) estimates of 2 -
bedroom adjusted standard quality gross rents calculated for each FMR area
are used as the new basis for FY2016 provided the estimate is statistically
reliable. The test for reliability is whether the margin of error for the estimate
is less than 50% of the estimate itself.
If an area does not have a reliable 2009-2013 5 -year, HUD checks whether
the area has had a reliable estimate in any of the past 5 years. If so, the
most recent reliable estimate is updated by the change in the area's
corresponding State metropolitan or non -metropolitan area from the year of
the most recent reliable estimate to 2009. This update value becomes the
https://vmAw huduser.gov/portal/datasets/fmr/fmrs/FY2016_code/2016summary.odn 3/9/16. 9:19 AM
Pace 1 of E
basis for FY2016.
If an area has not had a reliable estimate in the past 5 years, the estimate
State for the area's corresponding metropolitan area (if applicable) or State
non -metropolitan area is used as the basis for FY2016.
2. HUD calculates a recent mover adjustment factor by comparing a 2013 1 -year
40th percentile recent mover 2-bedr000m rent to the 2009-2013 5 -year 40th
percentile adjusted standard quality gross rent. If either the recent mover and
non -recent mover rent estimates are not reliable, HUD uses the recent mover
adjustment for a larger geography. For metropolitan areas, the order of
geographies examined is: FMR Area, Entire Metropolitan Area (for Metropolitan
Sub -Areas), State Metropolitan Portion, Entire State, and Entire US; for non -
metropolitan areas, the order of geographies examined is: FMR Area, State Non -
Metropolitan Portion, Entire State, and Entire US. The recent mover adjustment
factor is floored at one.
3. HUD calculates the appropriate recent mover adjustment factor between the 5 -
year data and the 1 -year data and applies this to the 5 -year base rent estimate.
4. Rents are calculated as of 2014 using the relevant (regional or local) change in
gross rent Consumer Price Index (CPI) from annual 2013 to annual 2014.
5. All estimates are then inflated from 2014 to FY2016 using a trend factor based on
the forecast of gross rent changes through FY2016.
6. FY2016 FMRs are then compared to a State minimum rent, and any area whose
preliminary FMR falls below this value is raised to the level of the State minimum.
The results of the Fair Market Rent Step -by -Step Process
1. The following are the 2013 American Community Survey 5 -year 2 -Bedroom
Adjusted Standard Quality Gross Rent estimate and margin of error for Iowa City,
IA HUD Metro FMR Area.
ACS2o13 5 -
Year 2-
ACS2013 5 -Year 2 -
Bedroom
Bedroom Adjusted
Area Adjusted
Standard Quality Ratio Result
Standard
Gross Rent Margin
Quality Gross
of Error
Rent
Iowa
City,
IA
HUD
Metro
FMR
$783
$13
0.017 < .5 Use
ACS2013 5 -Year
Iowa City, IA HUD
$13/ Metro FMR Area
$783=0.017 2 -Bedroom
Adjusted
h¢pa://tvwmhuduser.gov/portal/datasets/fmr/fmrsJFY2016_code/2016 sum mary.odn 319116, 9:19 AM
Page 2 of 6
Area
Standard Quality
Gross Rent
Since the ACS2013 Margin of Error Ratio is less than .5, the ACS2013 Iowa City, IA
HUD Metro FMR Area value is used for the estimate of 2 -Bedroom Adjusted
Standard Quality Gross Rent:
Area ACS2013 Rent j
Iowa City, IA HUD Metro FMR Area $783
2. A recent mover adjustment factor is applied based on the smallest area of
geography which contains Iowa City, IA HUD Metro FMR Area and has an ACS2013
1 -year Adjusted Standard Quality Recent -Mover estimate with a Margin of Error
Ratio that is less than .5.
ACS2013 1 -Year
2 -Bedroom
Area Adjusted
Standard Quality
Recent -Mover
Gross Rent
ACS2013 1 -Year 2 -
Bedroom Adjusted
Standard Quality Ratio
Recent -Mover Gross
Rent Margin of Error
Result
Iowa
0.123 < .5
City,
Use ACS2013 1 -Year
IA
Iowa City, IA HUD
HUD t^
$99 0.123 Metro FMR Area 2 -
Metro
Bedroom Adjusted
FMR
Standard Quality
Area
Recent -Mover Gross
Rent
The smallest area of geography which contains Iowa City, IA HUD Metro FMR
Area and has an ACS2013 1 -Year Adjusted Standard Quality Recent -Mover
estimate with a Margin of Error Ratio that is less than .5 is Iowa City, IA HUD
Metro FMR Area.
3. The calculation of the relevant Recent -Mover Adjustment Factor for Iowa City, IA
HUD Metro FMR Area is as follows:
ACS2013 ACS2013 5 -Year 40th ACS2013 1 -Year 40th Percentile
5 -Year Percentile 2 -Bedroom 2 -Bedroom Adjusted Standard
Area Adjusted Standard Quality Quality Recent -Mover Gross
Gross Rent Rent
Iowa City,
https://www.huduser.goviportal/datasets/fmr/fmrs/F Y2016 code/2016summa ry.odn 3/9/16. 9:19 AN
Page 3 of c
IA HUD $783
Metro FMR
Area
•E
Area Ratio Recent -Mover Adjustment Factor
Iowa City, IA HUD $806/ 1.029 >_ 1.0 Use calculated Recent -Mover
Metro FMR Area $783 Adjustment Factor of 1.029
=1.029
4. The calculation of the relevant CPI Update Factors for Iowa City, IA HUD Metro
FMR Area is as follows: HUD updates the 2013 intermediate rent with the ratio of
the annual 2014 local or regional CPI to the annual 2013 local or regional CPI to
establish rents as of 2014.
Update Factor Type
CPI Update Factor 1.0238 Region CPI
S. The calculation of the Trend Factor is as follows: HUD uses the forecasted change
in national gross rents from 2014 to 2016. This makes Fair Market Rents "as of"
FY2016. For more information on the calculation of the trend factor, please see
here.
Trend Factor
1.0457
6. The FY 2016 2 -Bedroom Fair Market Rent for Iowa City, IA HUD Metro FMR Area is
calculated as follows:
7. In keeping with HUD policy, the preliminary FY 2016 FMR is checked to
ensure that is does not fall below the state minimum.
Preliminary FY 2016 Final FY2016 2 -Bedroom
Area FY2016 2- Iowa State
https://wwoahuduser.gov/portal/datasets/tmr/fmrs/FY2016_code/2016 summary. odn 319/16, 9:19 AM
Page 4 of 6
ACSz0a3
Recent-
Annual 2013
TrendinS
FY 2016 2-
Area
-Year
Mover
to 2014 CPI
1.04Si
Bedroom
Estimate
Ad�9�nstment
Adjustment
t®
FMR
Fa or
FY2016
Iowa City,
$783 * 1.029
IA HUD
$783
1.029
1.0238
1.0457
* 1.0238 *
Metro FMR
1.0457=$863
Area
7. In keeping with HUD policy, the preliminary FY 2016 FMR is checked to
ensure that is does not fall below the state minimum.
Preliminary FY 2016 Final FY2016 2 -Bedroom
Area FY2016 2- Iowa State
https://wwoahuduser.gov/portal/datasets/tmr/fmrs/FY2016_code/2016 summary. odn 319/16, 9:19 AM
Page 4 of 6
https://vrwvr.huduser.gov/portal/datasets/fmr/fmrs/FY2016 code/2016summary.odn 3/9/16, 9:19 AM
Page 5 of 6
Bedroom FMR Minimum FMR
Iowa City, IA $863 >_ $619 Use Iowa City,
HUD Metro $863 $619 IA HUD Metro FMR Area FMR
FMR Area of $863
Final FY2016 Rents for All Bedroom Sizes for Iowa City, IA HUD Metro FMR Area
The following table shows the Final FY 2016 FMRs by bedroom sizes.
Click on the links in the table to see how the bedroom rents were derived.
Final FY 2016 FMRs By Unit Bedrooms
(efficiency_ One- Two- Three- Four -
Bedroom Bedroom Bedroom Bedroom
Final FY 2016
FMR
$552 $665 $863 $1,258 $1,507
The FMRs for unit sizes larger than four bedrooms are calculated by adding 15
percent to the four bedroom FMR, for each extra bedroom. For example, the FMR
for a five bedroom unit is 1.15 times the four bedroom FMR, and the FMR for a six
bedroom unit is 1.30 times the four bedroom FMR. FMRs for single -room
occupancy units are 0.75 times the zero bedroom (efficiency) FMR.
Permanent link to this page: http://www.huduser.gov/portal/data
sets fmr/fmrs/FY2016_code /2016summary.odn?
&year=2016&fm rty_pe= Final&cbsasu b= METR026980M M3500
Other HUD Metro FMR Areas in the Same MSA
Select another Final FY 2016 HUD Metro FMR Area that is a part of the Iowa City, IA MS
Washington County, IA HUD Metro FMR Area Select Metropolitan FMR Area
Select a different area
Press below to select a different county within the
same state (same primary state for metropolitan
areas) :
Adair County, IA Select a newcounty
Press below to select a different state:
Seleci a new state
https://vrwvr.huduser.gov/portal/datasets/fmr/fmrs/FY2016 code/2016summary.odn 3/9/16, 9:19 AM
Page 5 of 6
Select a Final FY 2016 Metropolitan FMR Area:
Iowa City, IA HUD Metro FMR Area
Select Metropolitan FMR Area
I HUD Home Page I HUD User Home I Data Sets I Fair Market Rents I Section 8 Income
Limits IFMR/IL Summary System I Multifamily Tax Subsidy Project.(MTSP) Income Limi
I HUD LIHTC Database I
Prepared by the Economic and Market Analysis Division, HUD. Technical problems or questions?
Contact Us.
https://W%Wrv-hudusor. goviportal/datasets/fmritmrs/FY2016_code/2016 sum mary.odn 319/16, 9:19 AM
Pace 6 of 6
MINUTES PRELIMINARY
PLANNING AND ZONING COMMISSION
MAY 19, 2016 — 7:00 PM — FORMAL MEETING
EMMA HARVAT HALL — CITY HALL
MEMBERS PRESENT: Carolyn Dyer, Mike Hensch, Phoebe Martin, Max Parsons, Mark
Signs, Jodie Theobald
MEMBERS ABSENT: Ann Freerks
STAFF PRESENT: Doug Boothroy, Sara Hektoen, Bob Miklo, John Yapp
OTHERS PRESENT: Cheryl Cruise, Charlie Eastham, Maryann Dennis, Crissy
Canganelli
RECOMMENDATIONS TO CITY COUNCIL:
By a vote of 6-0 the Commission recommended adoption of amendments to City Code Section 14-
2G to adopt a Riverfront Crossings Inclusionary Housing (IH) Ordinance.
By a vote of 6-0 the Commission recommended amendments to City Code Title 14 to adopt
amendments related to establishing a Community Service — Long Term Housing use, and
establishing parking, density, and provisional and special exception criteria for said use.
CALL TO ORDER:
Hensch called the meeting to order at 7:00 PM.
PUBLIC DISCUSSION OF ANY ITEM NOT ON THE AGENDA:
There were none
COMPREHENSIVE PLAN ITEM:
A public hearing for discussion of an amendment to the Comprehensive Plan for property
located north of Benton Street and west of Orchard Street to be included in the Downtown
and Riverfront Crossings Master Plan.
Hensch stated that the applicant has requested this item be deferred until June 2.
Theobald moved to defer this item until the June 2 meeting.
Signs seconded the motion.
A vote was taken and the motion passed 6-0.
CODE AMENDEMENT ITEMS:
Discussion of amendments to City Code Section 14-2G to adopt a Riverfront Crossings
Inclusionary Housing (IH) Ordinance.
Planning and Zoning Commission
May 19, 2016 — Formal Meeting
Page 2 of 10
Boothroy began with some history of how this amendment proposal came to be. This amendment
would apply Inclusionary Housing only to the area of Riverfront Crossings, no other areas of the
City. When the City adopted the Riverfront Crossings District several years ago there was some
discussion at the Council of having a requirement for affordable housing that would be required as
a part of proposed developments. So as developments come before the City for approval, they
would be responsible as part of the upzoning to include some affordable housing. Each
development of 10 units or more would be required to provide some affordable housing. At the
Council meeting there was discussion on whether there was support in the community for this.
Therefore an ad-hoc work committee was created made up of stakeholders that are involved in the
development process and affordable housing advocates and providers. The committee consisted
of a couple of representatives from the Homebuilders Association, a member from Hills Bank for a
financial perspective, affordable housing advocates from the Housing Fellowship and the Housing
Trust Fund. All these parties were brought together to use their knowledge to see if common
ground could be found and it was important from the Council's point of view that all decisions were
unanimous regarding an affordable housing inclusionary ordinance. This group met over a period
of six months and did reach a unanimous position of seven principles everyone felt the affordable
housing ordinance should be based on. The seven principles were shared with City Council who
accepted the recommended seven principles and unanimously directed Staff to proceed with
developing an affordable housing ordinance based on those seven principals only for the Riverfront
Crossings District.
Boothroy explained that in the area that became the Riverfront Crossings District, what the City did
was change the capacity potential of this area. The area is central to the City, close to downtown,
and is designated to develop under a form -based code as a walkable, mixed-use and (if the
Inclusionary Housing Ordinance is adopted) a mixed -income area. Therefore one of the provisions
was that in the Riverfront Crossings area when property is upzoned to a Riverfront Crossings
zoning designation the potential development capacity is greater. This area is now allowing
residential uses where they were once not permitted. This area will also include a new park and
improvements of streets in the area to make the area more attractive to development. Because
the City believes this area has such growth potential they want to tap into that potential and
capacity and provide affordable housing. Boothroy stated the other thing that has happened in this
area is land values have gone up so it is important to have some housing that is affordable
because otherwise it would all be more expensive.
Boothroy then discussed the seven principles guiding this proposed ordinance. The first is
provision of inclusionary housing should be mandatory, notvoluntary noting that when a
property is upzoned to the Riverfront Crossings Zone that is when a developer would have to
choose how they would meet the affordable housing requirement. The second principle, which
was already adopted by the Council at their May 3 meeting, a percentage of units ina
development should beset aside for housing that is affordable for an established
period of time.
When the City participates financially in a development, 15% of the residential units must
be affordable for a minimum term of 20 years, or the life of the TIF, or term of developer's
agreement, whichever is longer. This policy is in effect for any development in the City
where TIF funds are used. This is the floor, the percentage or years can be greater.
When the City is not participating financially in a development, 10% of the residential units
must be affordable for a minimum term of 10 years. This recommendation by the
committee seemed fair because the higher the number of years, or the percentage, the
more difficulty it would to finance the project.
Planning and Zoning Commission
May 19, 2016 — Formal Meeting
Page 3 of 10
Boothroy noted that most of the development in Riverfront Crossings will be more expensive larger
buildings with more units. The third principle project size should be considered and a threshold
established for a set- aside requirement. The Committee decided upon a development size
threshold that developments that include 10 or more residential units are subject to the set-aside
requirement. Again due to the development forecast of Riverfront Crossings it is expected that
most developments will be larger than 10 units. If a development is below 10 units it is more
difficult to meet an affordable housing requirement because the project is just too small to support
that kind of requirement. Boothroy noted that at the time of upzoning the developer will have three
options that are defined in the fourth principle the method used to meet the affordability
requirement is the developers option. The options are: Option one is on-site rental
affordable housing, option two is on-site affordable owner -occupied affordable housing, or
option three is to pay a fee in lieu of offering on-site affordable housing for the purposes of
providing affordable housing support elsewhere in the Riverfront Crossings area. Boothroy
explained that these options are necessary due to the State's preemption of rent control.
Boothroy said the fifth option is Alternatives to on-site affordable housing and/or fee -in -
lieu should be provided. If the developer can show that on-site affordable housing cannot be
accommodated, there are alternatives including donation of land or provision of affordable
housing at another location in the Riverfront Crossings District. The sixth principle is funds
created from'fee-in-lieu'contributions should be used to create an Affordable Housing
Fund for the sole purpose of supporting affordable housing in the Riverfront Crossings
area). The fee -in -lieu can be used for down payment assistance, or other grants/low
interest/or forgivable loans to local nonprofit affordable housing agencies to assist with
affordable housing in Riverfront Crossings. Finally, the seventh principle discusses qualifying
income levels (affordable housing should be provided to households of qualifying
income level). It was decided upon that Income Target would be:
Renters: Not to exceed 60% of Area Median Income (AMI). With a TIF project, the City may
negotiate affordability level (i.e. some units at a lower percentage than 60% AMI).
Owners: Not to exceed 110% AMI. With a TIF project, the City may negotiate affordability level
(i.e. some units at a lower percentagethan 110%AMI).
Elderly/Disabled: Developments designed and utilized for elderly/disabled are not required to
provide an affordable housing set-aside.
Boothroy explained inclusionary housing must be comparable in style and size of other housing in
the area. It must also be distributed throughout a development, not clustered in one area or floor.
An incentive that is also included in the ordinance is that for the affordable units there will be no
parking requirement would be required under the Code.
Parsons asked about rental units and if the existing tenants would be grandfathered in once their
affordable housing term expires (at year 10). Boothroy said that there is no control on that so after
the 10 year affordable term the rents could then go up to market value.
Theobald asked about the no parking requirement, and if after 10 years there is a number of units
that become market rate housing what impact with the no parking have. Boothroy said because
the Riverfront Crossings is a planned area that hopefully will be sustainable with commercial mixed
in with residential there won't be a need for vehicles.
Yapp confirmed that the goal is for this to be a walkable neighborhood where people do not rely on
their vehicles. However if someone is in a unit without a parking space, and desires storage for a
Planning and Zoning Commission
May 19, 2016 — Formal Meeting
Page 4 of 10
vehicle, there is a City parking facility in Riverfront Crossings already and another is being
constructed.
Theobald asked about the fee -in -lieu and if a developer chooses a fee -in -lieu why the fees must be
used in Riverfront Crossings. Boothroy explained it is much like park land dedication fees, the fee
is being generated for that particular area. The fee is for affordable housing and a goal of that
particular zoning classification. Theobald feels that the fee could be used to encourage more
development of affordable housing in other parts of town. Boothroy said there are other funds that
can be used within the City to encourage affordable housing throughout, this ordinance is to keep
the affordable housing in this District. Hektoen confirmed that one of the functions of the Riverfront
Crossings Zone is to create affordable housing so the monies need to be reinvested in that
neighborhood. Boothroy did note that the fee piece would be a resolution approved by Council and
reviewed on a regular basis.
Dyer asked for an example of an inability of a developer to provide affordable housing. Boothroy
said it is set up to be a tough standard to meet. Yapp said there could be a developer that will not
request TIF financing and can show through their financials that they just cannot make the project
work with that affordable housing requirement — in that case the ordinance provides alternatives.
Signs asked why high-end senior living is excluded from this ordinance. Boothroy said the
Riverfront Crossings Code already encourages affordable senior housing.
Hensch opened the public hearing.
Cheryl Cruise (905 Bluffwood Drive) is a retired child psychiatric nurse practitioner but is also
involved in a small family business that rents apartments. She has been around rental housing in
Iowa City since the 1970's. She started reading extensively about affordable housing and
inclusionary housing and what is the AMI and where does it come from. When reading
Census.gov she became alarmed they are only getting 1.5% of people surveyed. Cruise shared
with the Commission data that shows the Johnson County medium income is $55,000 to $65,000
and there is a range with a margin of error. HUD gets median family incomes from separating out
the people that are related to each other, families, and that is why the number is so high. HUD
takes the family number from two years ago for a family of four and adds a cost of living escalator.
HUD then says 90% of that number is a family of three, 80% is a family of two and 70% is a family
of one. However there really are no families of one, they are all non -families. Cruise feels when
setting policies it is important to note how few numbers are available in which to use to set the
policy. Cruise also shared with the Commission the Cost Burden data because cost burden is
important to inclusionary and affordable housing. The definition of affordable housing is to not pay
more than 30% of your income for housing. From this data it shows that almost half of the people
of Johnson County are 18-24 years old. Another 27% are graduate students, young professions,
and young people just starting out and about 27% of them are cost burden. The numbers are
skewed by the large number of 18-24 year olds. The committee thought the 60% AMI was a better
number because it was lower and that is true and it is the number low-income tax projects use.
Cruise believes that 30% of income is the better number to use rather than fair -market rent. Fair -
market rents are calculated from about 100 units in any given year, and only two-bedroom units, it
doesn't represent any one -bedroom or studio units.
Charlie Eastham (953 Canton Street) suggests to the Commission to approve the recommendation
for this ordinance. He has a lot of respect for the members of the ad-hoc committee that created
this recommendation. He also agrees with Cruise regarding the proper way to calculate an
Planning and Zoning Commission
May 19, 2016 — Formal Meeting
Page 5 of 10
affordable rent. Eastham is concerned about the period of time for the non -subsidized
developments, feeling it should be a permanent term of affordability.
Cruise wanted to clarify using the 30% versus fair -market rent and stated this needs to be set up to
be a model for other parts of the City and the County. The University of Iowa Institute for
Sustainable Communities is working with Council now as well and having consistency amongst all
constituencies would make sense.
Maryann Dennis (1307 Rochester Avenue) works for the Housing Fellowship and was on the ad-
hoc committee that created this proposed ordinance. Dennis appreciates what Cruise is saying
and agrees they don't want anyone to pay more than 30% of their income for housing costs. For
affordable homeownership that is figured into mortgage and lending policies. As a landlord, if they
don't know what the income is then it is hard to cash-flow a rental project. The Housing Fellowship
owns a 171 units scattered around Johnson County and tenants must be under a certain income
level depending on funding source (some are 80% some are 60% and some are 40%) last year the
average for incomes for all of their tenants in 2015 was $22,019 per year. Now if those folks pay
only 30% of their income for rent they cannot cash-flow the project. So in order to do her proforma
she needs to know how much rent she will get. Dennis closed by saying she appreciates the work
her colleagues and Staff have done on this proposal and hopes the Commission will support the
ordinance.
Hensch closed the public hearing
Dyer moved to recommend adoption of amendments to City Code Section 14-2G to adopt a
Riverfront Crossings Inclusionary Housing (IH) Ordinance.
Parsons seconded the motion.
Dyer noted that she feels this is something that has been needed in Iowa City for quite some time
and this is a great beginning. Perhaps some point in the future the discussion of extending the
duration of affordability can happen, but permanent affordably might just be too big of a bite to take
at this time. Dyer also stated that the 30% issues seems to have to do with the occupant of a
property and specific rental rates are what the landlord or owner deals with.
Theobald is happy to see this proposal but also shares concern about what will happen after 10
years. However agrees this is a start and the committee has put in a lot of hard work. She also
hopes this will someday expand to the entire community.
Martin shared her concern about possible subpar or cheaper built projects due to this ordinance,
but does support it.
Hensch said he is a big fan of Riverfront Crossings and form -based zoning of mixed-use and
walkability. Adding in this mixed -income just rounds out the area and hope it does become a
model for other areas and cities.
Signs noted his appreciation of all the data provided but perhaps has a different interpretation. He
feels the data shows the need for housing at the 30% or below level of AMI. Looking specifically at
the age householder by rent chart and looking at the 30 to 30.9 group and the 35+ group are the
largest in each group of rents paid. That just reinforces the need to address the 60% group.
Parsons agreed this is a great starting point and because it is the first in the State it will need to be
Planning and Zoning Commission
May 19, 2016— Formal Meeting
Page 6 of 10
open for changes and adjustments. He is ready to support this and thanks City Staff and the ad-
hoc committee for their work on this proposal.
A vote was taken and the motion carried 6-0.
2. Discussion of amendments to City Code Title 14 to adopt amendments related to
establishing a Community Service — Long Term Housing use, and establishing parking,
density, and provisional and special exception criteria for said use.
Yapp explained that over the past year or so there have been a group in the community meeting to
put together what is called a Housing First project for FUSE (Frequent Users System Engagement)
clients. FUSE refers to chronically homeless individuals who are frequent uses of local institutions,
including the justice system, human service agencies, and medical services including emergency
rooms. Housing First refers to a model that has started in other parts of the country where instead
of treatment model that emphasizes treating the symptoms and moving individuals from being
homeless to a housing shelter and then eventually to transitional housing and then hopefully to
independent housing, Housing First emphasizes as a very first step providing safe and secure
housing for these individuals. One of the things the local human service agencies have struggled
with is trying to find an appropriate location for such a use. In meeting with those agencies and
looking through the Iowa City Zoning Code it became clear that there is not a clear use
classification for such a use and that the density and parking requirements are designed more for
typical households not for FUSE clients. So Staff has been working to develop a Code
Amendment. FUSE clients are the chronically homeless. The Department of Housing and Urban
Development defines the chronically homeless as someone who has a disability and has been
living in a place not meant for human habitation, in an emergency shelter or safe haven for the last
12 months continuously or at least on four occasions in the last three years totally 12 months.
Yapp addressed of the questions the Commission had at the work session Monday which was the
definition of disability. Federal laws define a person with a disability as "any person that has a
physical or mental impairment that substantially limits one or more life activities, has a record of
such impairment, or is regarded as having such an impairment'. Yapp noted the definition goes on
to say that these impairments include hearing, mobility, visual impairments, chronic alcoholism,
chronic mental illness, AIDS or AIDS related complex, and mental retardation. He explained that
the HUD definition of a chronic homeless person does note that the person has a disability.
Yapp next discussed the proposal. What Staff is proposing is establishing a new use category
called Community Service — Long Term Housing. The Zoning Code currently has a broad category
called Community Service Uses and refers to a typical community service use like a community
center or a housing center, which is defined as short-term housing. So Staff proposes adding a
definition for Community Service — Long Term Housing which would be "long term housing for
persons with a disability operated by a public or nonprofit agency". So a private multi -family
housing complex would not be able to take advantage of the density or parking exceptions, it would
have to be owned by a nonprofit agency and serve persons with disabilities. Yapp explained with
regards to density, currently in commercial zones residential density is limited to one unit per 2,725
square feet of lot area regardless of the size of the unit. Staff reviewed densities in other Iowa City
Zones and is recommending a density of one unit per 900 square feet of lot area and that the units
be efficiency and/or one -bedroom units. The one unit per 900 square feet lot area is consistent
with rooming house density in a medium -density multi -family zone. So this would not be the
highest density residential uses the City has nor is it the lowest. Yapp explained that with regards
to parking Staff recommends one parking space per three units, or three beds. That is consistent
with the parking requirement for assisted living facilities. The use would also have some office
June 16, 2016
A statement for City Council about statistics:
Late Handouts Distributed S
(Date)��
Across the country mayors are trying to figure out what to do about a lack of affordable
housing. Some cities or counties are using inclusionary housing ordinances. In about 500 of
these local laws, affordable housing means not paying more than 30% of income for gross rent.
Otherwise a household is called "cost burdened".
Inclusionary Housing ordinances are intended to alleviate "cost burden".
The data about cost burden comes from a Census Bureau survey done sometime in the middle
of the year. The last data we have for Johnson County surveyed just 1.5% of the households.
Results of the survey report there is a 90% chance that somewhere between 48 and 70% of
households in our county are cost burdened. Maybe it's about 60%. That is the same as Ames.
We both have large populations of students with low income. Having low reported income in
relation to the rent you pay makes you cost burdened on the survey. About 20% of households
from all ages report they are not working. This lowers income reported.
About one half of the cost burdened households in Johnson County are 15-24 year olds. We
also know that 55% of Johnson County households under the poverty line are 18-24 year olds.
Another one fourth or more of the cost burdened are 25-34 year olds. They may be grad
students or just starting careers.
Census Bureau tells us that income numbers in Johnson County are underestimated for lots of
reasons. This includes not counting most means tested welfare benefits or employer provided
benefits as income.
Census Bureau survey tells us median rent in Johnson County has gone up 12% in 25 years.
( $770 in 1990 to $860 in American Community Survey Johnson County 2010-2014.) 2014 ACS
by itself reflected $930 median rent. That would be an increase of 20% in 25 years.
Note that a new apartment in an expensive building on expensive land in Iowa City will rent for
more than median rent. We also note tax assessments for apartments (not co-ops or condos) in
Iowa City have gone up about 50% in 10 years.
How should Iowa City define affordable rental housing?
HUD requires public housing and CDBG purchased rentals to use the Section 8 "Fair Market
Rent" maximum rent calculated yearly from the Census survey of about 100 two bedroom units
(out of 22,000 total units in the county.) Some may be rental houses. No actual studio, 1
bedroom, or 3 bedroom units are used. One HUD director said this measure is misnamed as it is
neither "fair" nor "market". This measure can vary a lot from year to year based on who fills out
the survey. Fair Market Rent is not used as a definition of affordable housing by HUD, LIHTCs,
Johnson County, the Iowa Initiative for Sustainable Communities, the Center for Housing Policy
of the National Housing Conference, the NYU Furman Center housing policy experts,
Washington D.C, Burlington VT, Portland OR, Ann Arbor MI, Chapel Hill N.C., Denver CO,
Boulder CO or 500 other localities. HUD defined 30% of income is used instead. This measure is
rent plus utilities.
Section 8 Fair Market Rent is also considered rent plus utilities, however in the draft ordinance
it is assumed to not include utilities.
The council should choose the affordability level for income: 80% AMI or 60% AMI or in
between. Some areas ask for a blended average of some range. All prior city documents and
analysis call for 80% AMI level of affordability as does Iowa City Public Housing and CDBG
purchased rentals.
Add "Maximum rent for affordable units will be HUD defined 30% of income.". The goal of
inclusionary housing is to relieve cost burden and this would be the objective measure.
If 60% AMI paying 30% of income is "too high", then we have a problem with publicly
subsidized housing. Indeed, nationally only one out of four households who qualify for publicly
subsidized housing will get it. That is not a problem for local apartment developers to solve.
Cheryl Cruise
905 Bluffwood Dr.
Iowa City, IA 52245
N
d
O�
�-9
Community Service -Long Term
Housing Use Summary
'FUSE' = Frequent User System Engagement — it is a
reference to the chronically homeless who are
frequent users of local institutions
'Housing
First' is
a treatment model
that
emphasizes
provision
of safe
and
secure
housing as a
first step
'Community Service - Long Term Housing'— long term
housing for persons with disabilities operated by a
public or non-profit agency
Community Service -Long Term
Housing Use Summary
• Add a new use category: Community Service - Long Term
Housing
•
Density: Recommended to be 1 unit per 900 SF of lot area;
units must be efficiency and/or one -bedrooms units
• Parking requirement: 1 parking space per three units /
beds
• Where permitted: Recommended as a provisional use in
the CO -1, CI -1, CC -2, CB -2 and CB -5 Zones
Recommended that a special exception be
required when the proposed use is within 200
feet of a single family zone due to the multi -family
character of the use
Community Service -Long Term
Housing Use Summary
Provisional Use Criteria
• Management Plan required
• Special exception required if the use is in the CO -1,
CI -1 or CC -2 zone and is within 200 feet of a single
family zone
• Neighborhood meeting required prior to a site plan
being approved
• Proposed facility must maintain a rental permit
• Up to 50% of the first floor may be occupied by
residential uses
5b
r
`ipa'rl CITY OF IOWA CITY
'� -1 MEMORANDUM
Date: May 13, 2016
To: Planning and Zoning Commission
From: John Yapp, Development Services Coordinator
Re: Discussion of amendments to City Code Title 14 to adopt amendments related to
establishing a Community Service — Long Term Housing use, and establishing
parking, density, and provisional and special exception criteria for said use
INTRODUCTION: Staff has been discussing the potential for a FUSE / Housing First project
with local human services agencies. 'FUSE' stands for Frequent User System Engagement; in
layman's terms it is a reference to the chronically homeless who are frequent users of local
institutions such as the justice system, hospitals / medical clinics, and human services agencies.
A significant component of FUSE is to provide housing in a model referred to as Housing First.
Housing First is a treatment model that emphasizes, instead of moving households through
levels of housing (street to shelter to transitional/temporary to independent housing), providing
chronically homeless persons secure housing as a first step. This approach is based on the
concept that for many of the chronically homeless, the first and primary need is to obtain stable
housing; and that once stable housing is secured, other issues can be addressed. The attached
articles help explain in greater detail the goals of a Housing First program.
One of the things local human services agencies have struggled with, in trying to find an
appropriate location for a Housing First use, are criteria in the Iowa City Zoning Code. Iowa City
currently has no appropriate definition for a 'Housing First' multi -family use other than regulating
it as a standard multi -family development; density and parking requirements for multi -family
developments are designed for typical households and not FUSE clients.
In reviewing the Zoning Code for this use, staff realized that we currently do not have a land use
that refers to a community service use for long-term multi -family housing operated by a public or
non-profit agency. While the Zoning Code does have land use definitions for 'Group Care
Facilities' such as Assisted Living Facilities and Group Homes; and short-term Transient
Housing such as a housing shelter, the Housing First or similar initiatives are designed to be
Iona -term housing with supportive services and staff on-site.
Supporting the FUSE program is a goal of the City Council Strategic Plan.
FUSE CLIENTS: FUSE clients are the chronically homeless who are frequent users of local
institutions. The Department of Housing and Urban Development (HUD) defines a chronically
homeless person as someone who has a disability and has been living in a place not meant for
human habitation, in an emergency shelter or a safe haven for the last 12 months continuously
or on at least four occasions in the last three years where those occasions cumulatively total at
least 12 months.
USE CATEGORY: The Zoning Code currently has a use category titled Community Service
Uses. Long-term supportive housing such as a Housing First use would clearly be a community
May 13, 2016
Page 2
service use as it would be providing a local service to people of the community and would be
operated by a non-profit agency, it does not fit with the definition of a shelter or short term
housing. Staff proposes amending this section of the Zoning Code as shown to allow long-term
supportive housing under the use category of a Community Service Use:
14 -4A -6C. Community Service Uses:
1. Characteristics: Uses of a public, nonprofit, or charitable nature providing a local
service to people of the community. Generally, they provide the service on the site or
have employees at the site on a regular basis. The service is ongoing, not just for
special events. Included are community centers or facilities that have membership
provisions that are open to the general public to join at any time, e.g., a senior center
that allows any senior to join. The use may provide shelter or short term housing where
tenancy may be arranged for periods of less than one month when operated by a public
or nonprofit agency. The use may provide tenancy for long-term housing for persons
with disabilities when operated by a public or nonprofit agency. The use may also
provide special counseling, education, or training of a public, nonprofit or charitable
nature.
2. Examples: Examples include uses from the following two (2) three 3 subgroups:
a. General Community Service: Libraries; museums; 'transit centers; park and ride
facilities; senior centers; community centers; neighborhood centers; youth club facilities;
some social service facilities; vocational training facilities for the physically or mentally
disabled; soup kitchens; surplus food distribution centers; public safety facilities, such as
police and fire stations.
b. Community Service - Shelter: Transient housing operated by a public or nonprofit
agency.
c Community Service — Long term housing: Long term housing for persons with a
disability operated by a public or non-profit agency.
DENSITY: One of the difficulties local agencies have had in trying to locate a Housing First
structure is Iowa City's density requirements for multi -family residential uses. In the Commercial
Office (CO -1) and Community Commercial (CC -2) zones, residential density is limited to one
unit per 2,725 SF of lot area regardless of unit size or number of bedrooms. For a'/2 acre lot,
for example, this would mean that only 8 units could be on the property.
As proposed, the Housing First project would be using efficiency or one -bedroom units, and
would have on-site management. Staff recommends allowing an increase in unit density for a
Community Service — Long Term Housing Use. Staff recommends 1 unit / 900 square feet of lot
area be permitted for efficiency and/or 1 -bedroom units; This density recognizes the smaller
size of individual units and the unique use, while still limiting the density to less than what would
be permitted in the highest density residential zones. The table below provides some
comparisons for density in different zones, and how many units would be permitted on a'/2 acre
lot:
May 13, 2016
Page 3
Table 1: Comparison of densities allowed in selected zones
Zone
Lot Area per Unit
# of units based on '/: acre
property
CO -1 / CC -2 — all units
2,725 SF
8
RM -12 —1 bedroom units
2,725 SF
8
RM -20 —1 bedroom units
1,800 SF
12
RM -20 — Rooming house units
900 SF per roomer
24
RM -44 —1 bedroom units
500 SF
43
RM -44 — Rooming house units
300 SF per roomer
72
PRM —1 bedroom units
435 SF
50
Recommended for
Community Service — Long
Term Housing
900 SF
24
PARKING: In discussions with staff, local agencies have made the point that for FUSE clients
or other individuals with disabilities, most if not all of them will not have a vehicle upon moving
into a Housing First project, and that current City parking requirements do not take this into
account. Longer term, agency representatives have estimated that one out of every five
residents may acquire a vehicle as their lives stabilize, but that most residents will never own a
vehicle. In most zones, parking requirements are 1 parking space per unit for efficiency and 1 -
bedroom units. In Riverrront Crossings Zones, parking requirements are between 0.5 and 0.75
parking spaces per unit depending on the subdistrict.
While staff recognizes that current minimum parking requirements are high for this particular
use, and would result in the need to provide parking that may be un -used, staff also notes that
City Code already has a provision to allow for a reduction in required parking. The Board of
Adjustment may approve a special exception to reduce the minimum parking requirement by up
to 50%for'unique circumstances.'
A concern with reducing the parking requirement too much is that it will make the property
functionally obsolete for other uses, if and when Housing First moves on to another site. A
change in use in the building in the future would trigger the need to meet parking and other site
development standards.
Staff recommends the parking requirement be consistent with requirements for Assisted Group
Living uses, which is one parking space for every three beds. Assisted Group Living is similar
to the proposed 'Community Service — Long Term Housing' use in that both serve persons with
needs for support and services. This parking requirement also sets a minimum amount of
parking for the property in anticipation of future uses in the building. If the owner of the property
has a desire to reduce the parking requirement further, there is the option of applying to the
Board of Adjustment for a further reduction in the minimum parking requirement.
Local agencies have also noted they will have community and office space in the Housing First
structure. Staff does not recommend any changes to current parking requirements for office or
community room space. In commercial zones, parking for office uses and for general
community service uses is 1 parking space per 300 square feet.
May 13, 2016
Page 4
WHERE PERMITTED: The proposed Community Service — Long Term Housing is a residential
use with supportive services, and it has office & community room components. Given the
mixed-use nature of the use, staff finds it is appropriate in commercial and mixed-use zones, as
opposed to purely residential zones. The table below identifies commercial zones in which
community service uses are currently permitted. For comparison, the table also identifies zones
in which Assisted Group Housing and Multi -family uses are permitted.
Table 2• Community Service Assisted Group Living and Multi -family Uses —Where Permitted
Note: P = Permitted; S = Special Exception required; PK = Provisional use (allowed IT criteria are met)
Note: Riverfront Crossings Uses are generally consistent with the CB -5 Zone
For the proposed Community Service — Long Term Housing Use, we considered that the
proposed use has elements consistent with community service uses (supportive services,
community room), multi -family uses (apartments), and with assisted living uses (occupants will
be persons with disabilities). Staff recommends it be permitted as a provisional use in the
Commercial Office (CO -1), Intensive Commercial (CI -1), Community Commercial (CC -2),
Central Business Service (CB -2) and Central Business Support (CB -5) zones. The proposed
provisions to apply to the use are outlined in the next section of this memo.
Staff considered whether or not the use should be permitted only by special exception. Local
agency representatives have raised the point that the occupants of this type of project will be
persons with disabilities, and are a protected class. Staff concurs that if site development
standards, and the other provisions as proposed for the code are met, causing this use to
require a special exception raises concerns that the project may be unduly delayed or litigated
based on the occupancy. Staff recommends the owner or operator of the proposed use host a
neighborhood meeting prior to the use being established (as outlined in proposed Provisional
Use Criteria below).
However, because the proposed use has a multi -family residential component of a higher
density than would be permitted for typical multi -family uses in these zones, staff recommends
that if the property proposed for this project is located in a CO -1, CI -1 or CC -2 Zone adjacent to
or across the street from a single family residential zone, a special exception be required. Table
3 outlines the staff recommendations for which zones the Community Service — Long Term
Housing use be permitted in.
CO -1
CNA
CH -1
CI -1
CC -2
CB -2
CB -5
CB -10
MU
General Community
Service
P
S
S
P
P
P
P
S
Community Service -
Shelter
S
S
S
PR
PR
S
S
Assisted group living
PR
S
PR
Multi -family dwellings
PR
PR
S
PR
PR
PR/S
P
Note: P = Permitted; S = Special Exception required; PK = Provisional use (allowed IT criteria are met)
Note: Riverfront Crossings Uses are generally consistent with the CB -5 Zone
For the proposed Community Service — Long Term Housing Use, we considered that the
proposed use has elements consistent with community service uses (supportive services,
community room), multi -family uses (apartments), and with assisted living uses (occupants will
be persons with disabilities). Staff recommends it be permitted as a provisional use in the
Commercial Office (CO -1), Intensive Commercial (CI -1), Community Commercial (CC -2),
Central Business Service (CB -2) and Central Business Support (CB -5) zones. The proposed
provisions to apply to the use are outlined in the next section of this memo.
Staff considered whether or not the use should be permitted only by special exception. Local
agency representatives have raised the point that the occupants of this type of project will be
persons with disabilities, and are a protected class. Staff concurs that if site development
standards, and the other provisions as proposed for the code are met, causing this use to
require a special exception raises concerns that the project may be unduly delayed or litigated
based on the occupancy. Staff recommends the owner or operator of the proposed use host a
neighborhood meeting prior to the use being established (as outlined in proposed Provisional
Use Criteria below).
However, because the proposed use has a multi -family residential component of a higher
density than would be permitted for typical multi -family uses in these zones, staff recommends
that if the property proposed for this project is located in a CO -1, CI -1 or CC -2 Zone adjacent to
or across the street from a single family residential zone, a special exception be required. Table
3 outlines the staff recommendations for which zones the Community Service — Long Term
Housing use be permitted in.
May 13, 2016
Page 5
Table 3: Proposed Zones for Community Service — Long Term Housing Use
PROVISIONAL USE CRITERIA: For Community Service - Shelter Uses, the Zoning Code
(Section 14 -4B -4D(5)) contains density standards, standards for addressing potential nuisances
such as loitering, lights, noise etc., a requirement for a management plan to be on file with the
City, and site development standards. Staff proposes to use similar criteria for the proposed
Community Service — Long Term Housing use as follows:
Community Service — Long Term Housing:
a. Maximum Density:
1. In the CO -1 CI -1 and CC -2 Zones: A minimum of 900 square feet of lot area per
dwelling unit is required. Dwelling units must be efficiency and/or 1 -bedroom units.
2. In the CB -2 and CB -5 Zones: Density standards for multi -family dwellings in commercial
zones in Section 14-2C of this title.
b. Management Plan Required: The applicant must submit a site plan and a management plan
that addresses potential nuisances such as loitering, noise, lighting, late night operations,
odors, outdoor storage and litter. The management plan must include plans for controlling
litter, loitering and noise: provisions for 24/7 on-site management and/or security, and a
conflict resolution procedure to resolve nuisances if they occur. The site plan and
management plan must be submitted concurrently to the City, or if permitted as a special
exception said plans must be submitted with the special exception application.
c. Special Exception Required: A special exception is required if the proposed use is in a CO -
1 CI -1 or CC -2 Zone and is across the street from or adjacent to a single family residential
zone.
d. Neighborhood Meetinq Reauired: Prior to a building permit beinq issued, the owner or
operator of the Community Service — Long Term Housing Use must hold a neighborhood
meeting inviting all property owners within 200 feet of the proposed use. At the
neighborhood meeting, the owner or operator must provide copies of the Management Plan,
and contact information for the management team of the proposed use
e. Site and Building Development Standards:
1. If the proposed use is located in the Central Planning District, it must comply with the
multi -family site development standards as set forth in Section 14-26-6 of this title.
2. In the CB -2 and CB -5 Zones Community Service — Lona Term Housing uses must be
located above the street level floor of a building.
3. The proposed facility must comply with the minimum standards as specified in the Iowa
City Housing Code, as amended, and maintain a rental permit.
4. In the CO -1. CI -1 and CC -2 Zones up to 50% of the first floor of the building maybe
occupied by residential uses.
CO -1
CN -1
CH -1
CI -1
CC -2
CB -2
CB -5
CB -10
MU
Community Service —
Long Term Housing
PR/S
PR/S
PR/S
PR
PR
PROVISIONAL USE CRITERIA: For Community Service - Shelter Uses, the Zoning Code
(Section 14 -4B -4D(5)) contains density standards, standards for addressing potential nuisances
such as loitering, lights, noise etc., a requirement for a management plan to be on file with the
City, and site development standards. Staff proposes to use similar criteria for the proposed
Community Service — Long Term Housing use as follows:
Community Service — Long Term Housing:
a. Maximum Density:
1. In the CO -1 CI -1 and CC -2 Zones: A minimum of 900 square feet of lot area per
dwelling unit is required. Dwelling units must be efficiency and/or 1 -bedroom units.
2. In the CB -2 and CB -5 Zones: Density standards for multi -family dwellings in commercial
zones in Section 14-2C of this title.
b. Management Plan Required: The applicant must submit a site plan and a management plan
that addresses potential nuisances such as loitering, noise, lighting, late night operations,
odors, outdoor storage and litter. The management plan must include plans for controlling
litter, loitering and noise: provisions for 24/7 on-site management and/or security, and a
conflict resolution procedure to resolve nuisances if they occur. The site plan and
management plan must be submitted concurrently to the City, or if permitted as a special
exception said plans must be submitted with the special exception application.
c. Special Exception Required: A special exception is required if the proposed use is in a CO -
1 CI -1 or CC -2 Zone and is across the street from or adjacent to a single family residential
zone.
d. Neighborhood Meetinq Reauired: Prior to a building permit beinq issued, the owner or
operator of the Community Service — Long Term Housing Use must hold a neighborhood
meeting inviting all property owners within 200 feet of the proposed use. At the
neighborhood meeting, the owner or operator must provide copies of the Management Plan,
and contact information for the management team of the proposed use
e. Site and Building Development Standards:
1. If the proposed use is located in the Central Planning District, it must comply with the
multi -family site development standards as set forth in Section 14-26-6 of this title.
2. In the CB -2 and CB -5 Zones Community Service — Lona Term Housing uses must be
located above the street level floor of a building.
3. The proposed facility must comply with the minimum standards as specified in the Iowa
City Housing Code, as amended, and maintain a rental permit.
4. In the CO -1. CI -1 and CC -2 Zones up to 50% of the first floor of the building maybe
occupied by residential uses.
May 13, 2016
Page 6
SUMMARY AND RECOMMENDATION
The proposed use, long-term multi -family housing to be managed by a non-profit or public entity
for persons with disabilities, does not fit within any existing Iowa City use classifications due to
density standards, parking standards, the fact that it will have on-site management and security,
and that it will have an office and community room component. As such, staff is recommending
a new use — Community Service — Long Term Housing — be created, with related parking,
density and provisional use criteria.
Staff recommends amending City Code Title 14 as follows (proposed additions underlined):
14 -4A -6C. Community Service Uses:
1. Characteristics: Uses of a public, nonprofit, or charitable nature providing a local
service to people of the community. Generally, they provide the service on the site or
have employees at the site on a regular basis. The service is ongoing, not just for
special events. Included are community centers or facilities that have membership
provisions that are open to the general public to join at any time, e.g., a senior center
that allows any senior to join. The use may provide shelter or short term housing where
tenancy may be arranged for periods of less than one month when operated by a public
or nonprofit agency. The use may provide tenancy for long-term housing for persons
with disabilities when operated by a public or nonprofit agency. The use may also
provide special counseling, education, or training of a public, nonprofit or charitable
nature.
2. Examples: Examples include uses from the following two (2) three 3 subgroups:
a. General Community Service: Libraries; museums; transit centers; park and ride
facilities; senior centers; community centers; neighborhood centers; youth club facilities;
some social service facilities; vocational training facilities for the physically or mentally
disabled; soup kitchens; surplus food distribution centers; public safety facilities, such as
police and fire stations.
b. Community Service - Shelter: Transient housing operated by a public or nonprofit
agency.
c Community Service — Long term housing: Long term housing for persons with a
disability operated by a public or non-profit agency.
Table 14-2C-1: Principal Uses allowed in Commercial Zones
CO -1
CNA
CH -1
CIA
CC -2
CB -2
CB -5
I CB -10
I MU
Community
Service
General
Community
Service
P
S
S
P
P
P
P
S
Community
Service - Shelter
S
S
S
PR
PR
S
S
Community
Service — Long
PR/S
PR/S
PR/S
PR
PR
Term Housing
May 13, 2016
Page 7
Table 14-5A-2: Minimum Parking Requirements for All Zones, Except the CB -5, CB -10 and
Riverfront Crossings Zones
Use Category
Subgroups
Parking Requirement
Bicycle Parking
General
1 space per 300 square feet of
10 percent
Community Service
Community Service
floor area
Community Service
0.1 space per temporary
25 percent
— Shelter
resident based on the maximum
number of temporary residents
staying at the shelter at any 1
time, plus 1 space per employee
based on the maximum number
of employees at the site at any 1
time
Community Service
1 space per three units, or three
25 percent
Long Term
beds, whichever is greater
Housing
14-413-4: Specific Approval Criteria for Provisional Uses and Special Exceptions; Subsection D:
Institutional and Civic Uses
Community Service — Long Term Housing:
a. Maximum Density:
1. In the CO -1. CI -1 and CC -2 Zones: A minimum of 900 square feet of lot area per
dwelling unit is required. Dwelling units must be efficiency and/or 1 -bedroom units.
2. In the CB -2 and CB -5 Zones: Density standards for multi -family dwellings in commercial
zones in Section 14-2C of this title.
b. Management Plan Required: The applicant must submit a site plan and a management plan
that addresses potential nuisances such as loitering, noise, lighting late night operations,
odors outdoor storage and litter. The management plan must include plans for controlling
litter, loitering and noise: provisions for 24/7 on-site management and/or security, and a
conflict resolution procedure to resolve nuisances if they occur. The site plan and
management plan must be submitted concurrently to the City, or if permitted as a special
exception said plans must be submitted with the special exception application
c. Special Exception Required: A special exception is required if the proposed use is in a CO -
1. CIA or CC -2 Zone and is across the street from or adjacent to a single family residential
zone
d. Neighborhood Meetinq Required: Prior to a building permit being issued, the owner or
operator of the Community Service — Long Term Housing Use must hold a neighborhood
meeting inviting all property owners within 200 feet of the proposed use. At the
neighborhood meeting the owner or operator must provide copies of the Management Plan
and contact information for the management team of the proposed use
e. Site and Building Development Standards:
May 13, 2016
Page 8
1. If the proposed use is located in the Central Planning District, it must comply with the
multi -family site development standards as set forth in Section 14-21B-6 of this title.
2. In the CB -2 and CB -5 Zones, Community Service — Long Term Housing uses must be
located above the street level floor of a building.
3. The proposed facility must comply with the minimum standards as specified in the Iowa
City Housing Code as amended, and maintain a rental permit.
4. In the CO -1, CI -1 and CC -2 Zones up to 50% of the first floor of the building may be
occupied by residential uses.
Approved by:
Doug BiTbthigy, Director V
Department Neighborhood and Dev opment Services
Attachments
1. March 6, 2008 Wall Street Journal Article Homeless Study Looks at 'Housing First'
2. November 9, 2006 National Alliance to End Homelessness Report What is Housing First?
THE WALL STREET JOURNAL.
Homeless Study Looks at 'Housing First'
Shifting Policies to Get
Chronically III in Homes
May Save Lives, Money
By JOE BARRETT
March 6, 2008; Page A10
A four-year study of homeless people with chronic medical problems in Chicago offers
fresh evidence that efforts to move the homeless into permanent housing quickly can
improve their lives and save taxpayer money.
The study was put together by a coalition of hospitals and housing groups seeking
hard evidence supporting this approach to dealing with homelessness. Results of the
study, which was financed by housing grants from the federal Housing and Urban
Development Department and private charities, will be presented today at the National
Housing and HIV/AIDS Research Summit in Baltimore.
The study, called the Chicago Housing for Health Partnership, or CHHP, is among the
first to use a scientific approach in a housing study of homeless people with problems
other than mental illness, according to Dennis Culhane, a professor at the University
of Pennsylvania and leading researcher in the field who has followed the study's
progress.
Arturo V. Sendixen One group of homeless people that received housing and intensive follow-up by a case
manager consumed fewer public resources than a separate group that received "usual
care" -- the piecemeal system of emergency shelters, family and recovery programs --
according to a preliminary review of data by the researchers.
Members of the study group, such as Claude Ousley, a 60 -year-old with congestive heart
failure who had been homeless about five years, spent half as many days in hospitals and
nursing homes and went to emergency rooms half as often as the usual -care group over
18 months. The savings more than made up for the $12,000 -per -person annual cost of
providing housing and a case manager, according to the preliminary findings.
Some homeless advocates remain skeptical of "housing first," the rapid placement of the
long-term homeless in apartments where they can work on the underlying causes of their
homelessness. "Taking somebody quickly off the street and moving them to housing
without building the right steps" can be a recipe for failure, said the Rev. John Samaan,
who runs the 176 -bed Boston Rescue Mission. He said homeless people, particularly
those struggling with substance abuse, need the community of support and the structure
that a residential treatment facility can provide.
Arturo Bendixen, director of the study and a vice president at the AIDS Foundation of
Chicago, said housing first works only with the kind of intensive follow-up the study
group was given.
The study is likely to add a push to an increasing national shift in homeless policy.
Spurred in part by a Bush administration drive to end chronic homelessness over 10
years, many cities are moving to a housing -first policy.
The Chicago study "takes us another deeper step into what we know in the field," said
Philip Mangano, executive director of the U.S. Interagency Council on Homelessness,
who has pushed the housing -first model since President Bush appointed him in March
2002. "The old status quo responses of ad hoc crisis intervention are more expensive."
The Chicago study emerged from the experience in the 1990s of several people working
at Interfaith House, a respite center on Chicago's West Side for'homeless people
recovering from illnesses. "If they went into housing, many of them stabilized their lives
and became productive," said Mr. Bendixen, a former head of Interfaith House. If they
were sent to shelters or other nonpermanent programs, many cycled back through the
system after their next hospital stay, he said.
To attack the problem, Mr. Bendixen helped put together a coalition of three hospitals
and a dozen housing groups. Around this time, the group heard about a study by Prof.
Culhane that stressed the fiscal benefits of quickly taking mentally ill homeless people
off the streets of New York. Other studies looked at homeless people who were the
biggest users of emergency services, but few were scientifically designed.
To win funding and make a scientific case for the housing -first model, the Chicago group
set up a rigorous study. Beginning in 2003, researchers recruited homeless people
admitted to Cook County Hospital, Stroger Hospital Medical Center and Mount Sinai
Hospital Medical Center. Participants had to have a chronic medical condition such as
HIV/AIDS, hypertension, or heart or liver problems. A total of 407 were enrolled and
selected at random for either housing or usual care.
The housed group showed improved health, including important benchmarks among
HIV-positive subjects. About 60% of the intervention group was in permanent housing at
the end of their 18 -month study period, compared with 15% of the usual -care group.
The cost of housing and case management for the housed group was a cumulative $1.6
million over the 18 months that each person was tracked, Mr. Bendixen said. The savings
add up quickly when comparing the two groups. For instance, the 201 members of the
housed group spent 5,500 days in nursing homes, while the 206 usual -care patients spent
10,023 days there. The estimated cost difference for that service alone was nearly
$500,000.
Mr. Ousley, who got a housing voucher, had been suffering for years with congestive
heart failure, degenerative joint disease and severe arthritis. Unable to afford housing, he
would sleep for a few hours before and after his shift loading newspapers until a hand
injury ended that job.
In January 2004, he was treated for pneumonia at Stroger Hospital, where he was
approached by researchers for the study. His CHHP voucher got him his own apartment
and a case manager who helps him stay on top of his medical problems. "Without it, I
wouldn't be here," he says.
Healthy Homes
A study of ill homeless people in Chicago found that those who received housing
required fewer public services than those who received usual care
Estimated costs over 18 months,
In millions
Hospitalizations
$3._1 _
-- - - _I 5.3
Nursing home stays
= 0.5
mg -71 1.0
Emergency room visits
■ 0.3 M Housed group
i`��: 0.6 = Usual care
Estimated total costs
Group given housing` $5.5 million
Usual care $6.9 million
Mary Pelts, in her kitchen. She was in the usual
care group, but got an apartment through CHHP
after the study ended.
housing and wse management costs Smrm Chicago Housing for Hoolth Partnership
Mary Pelts, 43, an HIV-positive heroin addict, was in the hospital recovering from a
suicide attempt in September 2005 when she was contacted by CHHP. She didn't want to
be part of any study, she says, but the researcher was persistent.
She was selected for "usual care," but it didn't much matter. After she revived from her
suicide attempt, police charged her with possession of heroin, and she was sentenced to a
year in prison. She said she was surprised when a CHHP worker visited her there twice
for follow-up interviews.
After her release, Ms. Pelts spent several months in a drug -treatment center run by the
Sisters of Sobriety. Since her 18 -month study period was over and CHHP was
transitioning into a permanent program, her caseworker was able to arrange housing for
her last April.
Ms. Pelts now lives in a one -bedroom apartment near a racetrack in Cicero, III. Her walls
are decorated with pictures of her children, with whom she is reconnecting, and
certificates to her sobriety. She is working on her high -school -equivalency degree and
hopes to be a motivational speaker one day.
"They didn't give up on me, even when I gave up on myself," she says.
joseph.barretl@wsj.com
Copyright 2008 Dow Jones & Company, Inc. All Rights Reserved.
National Alliance to
END HOMELESSNESS www.endhonnelessness.org
wvnoWnc rcucvI Dmtmnc unac IcDDunxc minion trwncu
ISIS K Shoot, NW, SURD 4 10 1 Washington, DC 20005
Tel IDL6 is.,s261 Fau 103.659.4664
What is Housing First?
Revised November 9, 2006
Housing First is an approach that centers on providing homeless people with housing
quickly and then providing services as needed. What differentiates a Housing First
approach from other strategies is that there is an immediate and primary focus on helping
individuals and families quickly access and sustain permanent housing. This approach
has the benefit of being consistent with what most people experiencing homelessness
want and seek help to achieve. Housing First programs share critical elements:
• There is a focus on helping individuals and families access and sustain rental
housing as quickly as possible and the housing is not time-limited,
• A variety of services are delivered primarily following a housing placement to
promote housing stability and individual well-being;
• Such services are time-limited or long-term depending upon individual need;
and
• Housing is not contingent on compliance with services — instead, participants
must comply with a standard lease agreement and are provided with the
services and supports that are necessary to help them do so successfully.
A Housing First approach rests on the belief that helping people access and sustain
permanent, affordable housing should be the central goal of our work with people
experiencing homelessness. By providing housing assistance, case management and
supportive services responsive to individual or family needs (time-limited or long-term)
after an individual or family is housed, communities can significantly reduce the time
people experience homelessness and prevent further episodes of homelessness. A central
tenet of the Housing First approach is that social services to enhance individual and
family well-being can be more effective when people are in their own home.
While there are a wide variety of program models, Housing First programs all typically
include:
• Assessment -based targeting of Housing First services
• Assistance locating rental housing, relationship development with private
market landlords, and lease negotiation
• Housing assistance — ranging from security deposit and one month's rent
to provision of a long-term housing subsidy
0 A housing placement that is not time-limited
Case management to coordinate services (time-limited or long- term) that
follow a housing placement
Housing First is an approach used for both homeless families and individuals and for
people who are chronically homeless. Program models vary depending on the client
population, availability of affordable rental housing and/or housing subsidies and services
that can be provided. Housing First programs often reflect the needs and preferences of
each community, further contributing to the diversity of models.
What are some examples of Housing First programs?
Beyond Shelter, Los Angeles, CA
Community Care Grant Program, Washington, DC
Direct Access to Housing, San Francisco, CA
Family Housing Collaborative, Columbus, OH
HomeStart, Boston, MA
Pathways to Housing, New York City, NY and Washington, DC
Project Coming Home, Contra Costa County, CA
Rapid Exit Program, Hennepin County, MN
Shelter to Independent Living, Lancaster, PA
What does a Housing First approach entail?
Assessment and Targeting
Individuals and families receive an in-depth, upfront assessment before being referred to
or receiving services from a Housing First provider. This allows providers to ascertain
whether the community's Housing First approach is feasible given the providers'
capacity to provide housing assistance and services tailored to their clients' needs. The
level of assistance programs are able to provide most often shapes who is targeted for
Housing First services.
Families
Chronically Homeless Individuals
Some Housing First programs serving homeless
Some Housing First programs serving chronically
families can only offer short-term rent assistance.
homeless individuals are able to provide very rich,
As a result, these programs target families who can
intensive wraparound services and supports to
be expected to assume the rental payments in the
promote a successful housing outcome. Because of
short-term. However, some families with very
the level of services they are able to deliver, these
minimal incomes can also be served because the
providers typically prioritize those individuals who
delivered intensive case management services help
have failed to use or succeed in other program
families maximize their income through
models — some intentionally identifying their
employment services and access to public benefits.
community's "high system users" - those who have
heavily relied on shelters, jails, and emergency
rooms.
Evidence indicates Housing First is appropriate for most, if not all, homeless persons.
The combination of housing linked to services can help a wide variety of people exit
homelessness more rapidly. This is supported by research that demonstrates that most
formerly homeless families, including those with significant challenges, will retain
housing with the provision of a long term housing subsidy. It is also supported by
evaluations of Housing First interventions with chronically homeless individuals that
have found that many who have remained outside of housing for years can retain housing
with a subsidy and provision of wraparound supports. In short, while most communities
are targeting Housing First services to a subset of their homeless population, the approach
can be tailored to end homelessness for many more.
Permanent Housing
There is substantial variation in how Housing First providers help meet the housing needs
of the individuals and families they serve.
Some Housing First programs provide only minimal financial assistance,
for example assistance with security deposits and application fees. Other
programs are able to rely on federal housing subsidies or move
individuals/families into public or subsidized housing.
Some Housing First programs rely solely on apartments in the private
rental market. Others master -lease or develop multi -family units and then
sublease those units to program participants. And still others seek out
many different permanent housing options, in order to maximize the
availability of permanent, affordable housing for the people they serve.
Some Housing First programs hold the individual or family's lease while
they are involved with the program; individuals and families then often
take on the lease when the "program" services end (time-limited case
management). In other program models, the family or individual holds a
lease with a public or private landlord from the onset.
All Housing First providers focus on helping individuals and families move into
permanent housing as quickly as possible, based on the premise that social service needs
can best be addressed after they move in to their new home.
Assistance Locating & Sustaining Housing
Housing First programs all typically invest time and resources in helping homeless
individuals and families overcome barriers to accessing permanent housing. This includes
reaching out to landlord organizations, housing management companies, public housing
authorities, civic organizations and congregations. Developing strong relationships helps
improve Housing First providers' capacity to relocate individuals and families into
permanent housing arrangements.
All Housing First programs are responsive to the concerns of landlords, housing
operators and developers. Many Housing First programs develop strategies to overcome
concerns expressed by landlords. This is a critical investment to help facilitate access to
housing and promote successful housing outcomes. As a result, these programs are able
to find housing for individuals and families who have extensive housing barriers.
Successful housing placements often result in landlords and management companies
increasing the number of units they are willing to lease to individuals and families served
by Housing First programs.
Chronically Homeless Individuals
Families
One Housing First operator provides additional
A Housing First program that serves high-risk families
deposits/reserve funds to developers of a multi -family
offers landlords an "eviction guarantee." If a family fails
building. He reports that the developers and owners
to comply with the terms of the lease, the program will
he contracts with to house chronically homeless
assist the landlord and reimburse any costs he incurs.
individuals have all insisted on the additional deposits
The program markets the services it provides to the
and reserve funds as they anticipate the population
families and its willingness to intervene with any problem
will put significant wear and tear on the building. The
behavior that arises. The Housing First program,
Housing First program operator reports in every
landlords, and families are jointly committed to
instance he has been able to recapture those funds
promoting a successful housing outcome. The program
during contract renewal as owners have been satisfied
has greatly expanded the roster of landlords that it
with the light wear on the building.
successfully works with. And, even if families lose their
housing, the Housing First program continues to work
with them to find and sustain suitable housing so they do
not re-experience homelessness.
Low, Moderate or High Intensity Supportive Services
Housing First programs offer services with varying levels of intensity following a
housing placement to ensure successful tenancy and promote the economic and social
well-being of individuals and families. These services are typically offered for only as
long as they are needed. In many instances, services are transitional to help stabilize the
individual or family in housing. A focus of the transitional supports is to help the
individual or family develop a support network that includes other local or community
mainstream resources and/or social service agencies that can be responsive and attentive
to the individual's or family's long term goals and any subsequent crisis. In other cases,
on-going, intensive supports will be needed to ensure that the individual or family will be
able to remain stably housed. The capacity of programs to provide supportive services
following a housing placement is largely determined by, and determines, who is targeted
for Housing First services.
Families
Chronically Homeless Individuals
Housing First programs serving homeless families
Housing First programs serving chronically
typically provide transitional, case management services
homeless individuals typically provide
lasting 6-12 months, often intensive at the beginning.
intensive case management services coupled
Most programs prioritize helping the families link up
with providers in the community who are able
with community-based, mainstream social service
to address individuals' substance abuse and
providers that are able to meet their long-term social
support and service needs. Case management services
for families tend to phase out as families stabilize in
their housing and new networks of supportive services
are in place.
mental health treatment needs over the long
term. Programs serving chronically homeless
individuals can typically provide very intensive
services because case managers have small
client -to -worker ratios.
Outcome Measures
Determining the effectiveness of Housing First programs relies on capturing outcome
data. Among the primary outcomes that should be assessed in a Housing First program
are individual or family housing outcomes. How rapidly are families being re -housed?
Are individuals and families remaining housed? Do families or individuals re-enter
shelter?
Programs may want to capture outcomes on family or individual well-being. Programs
serving families may include employment and earning outcomes and school performance
of children. Programs serving chronically homeless individuals might examine increases
or decreases in hospital stays.
In communities where there is widespread implementation of a Housing First approach,
one outcome measurement that should be captured is the average length of stay in
homelessness of the target population. This outcome measurement allows communities
to assess whether they are reducing the length of homeless episodes overall through their
Housing First initiatives.
Examples of Client Level Performance Measures
Length of Stay in Shelters
Length of stay in shelter, outdoors or other
homeless programs before accessing permanent
housing
Housing Placement
Successful placements in permanent housing
Housing Stability
Retains permanent housing (typically measured at 6
months, 1 year, 18 months or 2 ears
Recidivism
Subsequent homeless episodes (typically measured
by identifying re-entry into shelters stem).
Housing Outcome
Type of housing individual/family moved into
(permanent supportive housing, public housing, and
private sector rental units with or without assisted
through short term or long term housing subsidy)
and whether placement was successful
Health and well-being
Changes in individual and family members' health
and well-being
Increase economic well-being
Increased income from access to benefits and/or
employment
Where can I learn more about Housing First?
We have developed resources on Housing First for homeless families and for chronically
homeless individuals. As the Housing First approach continues to take hold, there may
soon be resources for other populations — including homeless youth and single, non -
disabled adults. Visit www.endhomelessness.org for more information.
Planning and Zoning Commission
May 19, 2016 — Formal Meeting
Page 6 of 10
open for changes and adjustments. He is ready to support this and thanks City Staff and the ad-
hoc committee for their work on this proposal.
A vote was taken and the motion carried 6-0.
2. Discussion of amendments to City Code Title 14 to adopt amendments related to
establishing a Community Service — Long Term Housing use, and establishing parking,
density, and provisional and special exception criteria for said use.
Yapp explained that over the past year or so there have been a group in the community meeting to
put together what is called a Housing First project for FUSE (Frequent Users System Engagement)
clients. FUSE refers to chronically homeless individuals who are frequent uses of local institutions,
including the justice system, human service agencies, and medical services including emergency
rooms. Housing First refers to a model that has started in other parts of the country where instead
of treatment model that emphasizes treating the symptoms and moving individuals from being
homeless to a housing shelter and then eventually to transitional housing and then hopefully to
independent housing, Housing First emphasizes as a very first step providing safe and secure
housing for these individuals. One of the things the local human service agencies have struggled
with is trying to find an appropriate location for such a use. In meeting with those agencies and
looking through the Iowa City Zoning Code it became clear that there is not a clear use
classification for such a use and that the density and parking requirements are designed more for
typical households not for FUSE clients. So Staff has been working to develop a Code
Amendment. FUSE clients are the chronically homeless. The Department of Housing and Urban
Development defines the chronically homeless as someone who has a disability and has been
living in a place not meant for human habitation, in an emergency shelter or safe haven for the last
12 months continuously or at least on four occasions in the last three years totally 12 months.
Yapp addressed of the questions the Commission had at the work session Monday which was the
definition of disability. Federal laws define a person with a disability as "any person that has a
physical or mental impairment that substantially limits one or more life activities, has a record of
such impairment, or is regarded as having such an impairment'. Yapp noted the definition goes on
to say that these impairments include hearing, mobility, visual impairments, chronic alcoholism,
chronic mental illness, AIDS or AIDS related complex, and mental retardation. He explained that
the HUD definition of a chronic homeless person does note that the person has a disability.
Yapp next discussed the proposal. What Staff is proposing is establishing a new use category
called Community Service — Long Term Housing. The Zoning Code currently has a broad category
called Community Service Uses and refers to a typical community service use like a community
center or a housing center, which is defined as short-term housing. So Staff proposes adding a
definition for Community Service — Long Term Housing which would be "long term housing for
persons with a disability operated by a public or nonprofit agency". So a private multi -family
housing complex would not be able to take advantage of the density or parking exceptions, it would
have to be owned by a nonprofit agency and serve persons with disabilities. Yapp explained with
regards to density, currently in commercial zones residential density is limited to one unit per 2,725
square feet of lot area regardless of the size of the unit. Staff reviewed densities in other Iowa City
Zones and is recommending a density of one unit per 900 square feet of lot area and that the units
be efficiency and/or one -bedroom units. The one unit per 900 square feet lot area is consistent
with rooming house density in a medium -density multi -family zone. So this would not be the
highest density residential uses the City has nor is it the lowest. Yapp explained that with regards
to parking Staff recommends one parking space per three units, or three beds. That is consistent
with the parking requirement for assisted living facilities. The use would also have some office
Planning and Zoning Commission
May 19, 2016 — Formal Meeting
Page 7 of 10
space and community room space in the building. Staff does not recommend any parking
reduction for that part of the use. The parking requirement for office space and community room
space is one parking space per 300 square feet. Staff did not want to recommend reducing the
parking requirement too much due to concerns that it would make the property functionally
obsolete for other uses in the future. Yapp noted that because the proposed use would have
qualities in it of multi -family residential housing, community room and office space, and similar to
an assisted living facility Staff recommends this use be allowed in certain commercial zones. It is
recommended to be allowed as a provisional use in the Commercial Office, Intensive Commercial,
and Community Commercial zones as well as the CB -2 and CB -5 zones. Originally staff was
recommending if the facility is adjacent to or across the street from a single family residential zone,
a special exception be required. After some conversations with Staff they are now proposing a
special exception be required if it is within 200 feet of a single family zone. The 200 feet is more
consistent with other similar uses in the Code and it is also consistent with the minimum distance
under State Code for notification requirements. Yapp explained that as proposed it would be a
provisional use meaning that certain provisions would need to be met before the use could be
established. Those provisions include a requirement for a management plan that is consistent with
management plans that are required for shelter uses. The management plan would need to
include a plan to address any potential nuisances such as loitering, littering, noise, etc. Staff is
also recommending that a neighborhood meeting be required prior to the site plan being approved.
He explained that with most rezoning applications and special exception applications the City
encourages but does not require a neighborhood meeting. Due to the particular unique use of this
living they are recommending a neighborhood meeting be required both to share the management
plan and to set up the lines of communication. Yapp stated that the facility must maintain a rental
permit, as it would be considered rental housing. With the rental permit it would be subject to
periodic inspections by City Staff. Staff also recommends that up to 50% of the first floor be able to
be occupied by residential uses. That gives the managers of the facility a little more flexibility of
where they put residential uses and then can have some residential uses adjacent to the
community space and office spaces.
Martin asked about the definition of disability and that it states chronic alcoholism but no other
substances. Hektoen said for the Commission to not get distracted by the definition, that will be a
decision that the operator of this type of facility will make and if tenants qualify for their services.
Yapp noted there was a question at the work session Monday night regarding the percentage of
the homeless population that may have a disability and the Human Agency Staff will be able to
address that question.
Hensch opened the public hearing.
Crissy Canganelli (2307 E. Washington Street) is the Executive Director of Shelter House wanted
to be available to answer any questions the Commission had.
Dyer asked if there was a specific plan for developing such a facility. Canganelli said that they
have been working on a plan for about two years. They took a site visit of a facility in Charlotte
South Carolina and were positively impacted by the facility there. They have met with Neumann
Monson who have agreed to donate 100% of the architectural services for the project. HBK will
be providing the civil engineering services. They are still developing a design for the project, but
are anticipating a two-story building that will include the efficiency apartments. Canganelli said
they had to wait until the Commission and Council approve this amendment before they could
confirm the number of units because they need to know their ability to develop the piece of
Planning and Zoning Commission
May 19, 2016 — Formal Meeting
Page 8 of 10
property they are looking at. The facility would include community spaces, a library, a computer
room, meeting room, offices spaces, a nurse's station, and accommodations like that. Canganelli
also noted it would be a secure facility; their intention is to have onsite security as a safe guard for
the residents.
Hensch asked if there are other facilities in Iowa that are similar to this. Canganelli said there may
be facilities because this is a model of supportive housing, what is different about this project and
what would be unique for the State of Iowa is that it is made available on a Housing First approach
The Housing First approach represents a paradigm shift that is slow to appear in the Midwest and
has not been implemented in the State of Iowa, we would be the first and a model for the State.
Dyer asked about families, would studios and one -bedroom units be adequate to house a family.
Canganelli said they are not intending to make these units or building available to families. With
this being the first foray into Housing First the Housing Coalition providers agreed to prioritize
chronically homeless and specifically people who are qualifying in that cohort known as frequent
users of public services as jail or emergency rooms only to end up back on the street. Canganelli
said they did a case study of four individuals and that they are averaging about $139,000 in
unreimbursed expenditures to live and die on the streets of our community.
Theobald noted that it was presented that the individuals have to have an actual diagnosis and
wondered if it was known how many people are out on the streets that wouldn't have a diagnosis.
Canganelli said she does not have an exact percentage but it is substantial and they have the
resources to help establish the diagnosis. Yapp added that overall about 40% of the adult clients
at Shelter House suffer from a disability; about 26% of the adult clients were chronically homeless.
Martin asked what those number actually look like. 40% is how many people. Canganelli said the
40% of adults that Shelter House has served is 40% of about 650 people.
Hensch asked if there was an estimate of how many chronically homeless there are in this area.
Canganelli said she knows there are 20-25 people living on the streets at any point in time, the low
barrier shelter in the winter averaged 32 people per night, and almost without exception those
people are chronically homeless. It can be a moving target.
Hensch asked how many units are in their proposed project. Canganelli said they hope to have up
to 24 units.
Hensch closed the public hearing.
Parsons moved to approve the amendments to City Code Title 14 to adopt amendments
related to establishing a Community Service — Long Term Housing use, and establishing
parking, density, and provisional and special exception criteria for said use.
Theobald seconded the motion.
Theobald expressed her gratitude to see a possibility of such a project.
Signs agreed, noting that he once worked with the homeless youth center in Des Moines and
providing that initial stability is very important.
Dyer noted she has followed report from other communities where this approach has been taken
and they seem to be almost universally successful.
Hensch echoed Dyer's comments and sees the need for this dramatically
A vote was taken and the motion carried 6-0.
DRAFT
Prepared by: John Yapp, Dev. Srvs. Coor., 410 E. Washington Street, Iowa City, IA 52240; 319-356.5252
ORDINANCE NO.
ORDINANCE REZONING AMENDING CITY CODE TITLE 14 TO ADOPT AMENDMENTS RELATED TO
ESTABLISHING A COMMUNITY SERVICE — LONG TERM HOUSING USE, AND ESTABLISHING
PARKING, DENSITY AND PROVISIONAL AND SPECIAL EXCEPTIO CRITERIA FOR SAID USE
WHEREAS, the City Council Strategic Plan identifies the advance ant of social justice and racial equity
as a top priority; and
WHEREAS, one idents ed initiative for addressing this priority ' cludes support for the Housing First
initiative, a housing model th t strives to provide sufficient, permane supportive housing apartments to end
long-term and chronic homele ness; and
WHEREAS, City Steps 20 -2020, a five-year consolidated Ian for Housing, Jobs and Services for
Low -Income Residents adopte by the City Council, also i ntifies the provision of suitable Irving
environments, increased housing o rtunities, empowerment o low and moderate income households to
achieve self-sufficiency as among the ighest priorities for the co munity; and
WHEREAS, the adopted Compreh sive Plan supports pr iding options for households of all types and
people of all incomes; and
WHEREAS, the Zoning Code currently low:
type of housing model contemplated by the Ho sii
WHEREAS, in order to reduce the risk of p
negative externalities of such a multi-famity use,
special exception in certain commercial zones, s
the
for short- shelters, but does not specifically allow the
3 First Ins ' five; and
is oppo tion and discrimination, yet mitigate the potential
bbZtaff r mmends allowing such uses provisionally or by
certain approval criteria, including, among others,
WHEREAS, it is estimated that one out of every
own a car, and thus Staff recommends the parking
Group Living use parking requirement; and
WHEREAS, to mitigate potential negative e m
parking requirements, density limitations, and pr isiot
WHEREAS, the Planning and Zoning Co missi
recommended approval by a vote of 6-0.
NOW, THEREFORE, BE IT ORDAINED
SECTION I APPROVAL. City
deletions are struck -through):
14 -4A -0C. Community Service
residents in this type of multi -family housing may
Knent for this use be consistent with the Assisted
es o his use, a management plan a to establish
and spbqial exception approval criteria; and
has revi ed the proposed amendments and has
N
0
IE CITY COUNCIL OFE CITY OF IOWA'CITY, IOWA
14 is hereby amended as Ilows (additions are �jderlined,.
-77
w
Characteristics: Uses of yj(public, nonprofit, or charitable nature providing a tpcal servicei6' people of
the community. GenergAy,they provide the service on the site or have em oyees at the site on a
regular basis. The se ice is ongoing, not just for special events. Included are mmunity centers or
facilities that have mbership provisions that are open to the general public to in at any time, e.g.,
a senior center t allows any senior to join. The use may provide shelter or ort term housing
where tenancy ay be arranged for periods of less than one month when operat by a public or
nonprofit age y. The use may provide tenancyfor long-term housingfor ersons ith disabilities
when oder ed by a public or nonprofit agency. The use may also provide speciIiii counseling,
education, or training of a public, nonprofit or charitable nature.
2. Examples: Examples include uses from the following We (2) three 3 subgroups:
a. General Community Service: Libraries; museums; transit centers; park and ride facilities; senior
centers; community centers; neighborhood centers; youth club facilities; some social service
facilities; vocational training facilities for the physically or mentally disabled; soup kitchens;
surplus food distribution centers; public safety facilities, such as police and fire stations.
Ordinance No.
Page 2
b. Community Service - Shelter: Transient housing operated by a public or nonprofit agency.
c. Community Service — Lona term housing: Lona term housing for persons with a disability
operated by a Public or non-profit agency.
Table 14-2C-1: Principal Uses allowed in Commercial Zones
Table 145A-2: Mi imum Parking Requirements for All Zones, Except the CB -5, CB -10 and Riverfront
Crossings Zones
Use Category
ubgroups
CO -1
CN -1
CH -1
CIA
CC -2
CB -2
CB -5
CB -10
MU
Community
General
P
S
S
P
P
P
P
S
Service
Community
the shelter a any 1 time, plus 1
space per mployee based on
Service
employee at the site at any 1
0
time
o+
Community
S
25 oe of z T,Lona
C;
=
Te
S
S
PR
PR
S
S
Service - Shelter
Community
PR/S
PR/S
PR/S
PR
PR
Service — Lon
T rm Housing
Table 145A-2: Mi imum Parking Requirements for All Zones, Except the CB -5, CB -10 and Riverfront
Crossings Zones
Use Category
ubgroups
Parkinq Reauiremint
Bicycle Parkin
neral Community
1 space per 300 square feet of
10 percent
Community Service
Se ice
floor area
Com unity Service
0.1 space pert porary resident
25 percent
— She r
based on the aximum number
of temporary r sidents staying at
the shelter a any 1 time, plus 1
space per mployee based on
the max' um number of
employee at the site at any 1
0
time
o+
Commun' Sery'k
inits,or three
25 oe of z T,Lona
C;
=
Te
beds hicheveris reater
Housing
14-4B-4: Specific Approval Criteria for Prc
and Civic Uses
Communitv Service — Lona Term Housina:
a. Maximum Density:
1) In the CO -1. CI -1 and CC -2 Zones:
2)
14-2C of this title.
(7
and Special Exceptions; Subsection 134stituQ-141
7
w
c. Special Exception Required: A special exception is required if the proposed use is in a CO -1. CI -1 or
CC -2 Zone and is across the street from or adiacent to a single family residential zone.
Ordinance No.
Page 3
d.
team of the proposed use
e. Site and Building Development Standards:
1. If the proposed use is located in the Central Planning District it must comply with the multi -family
2.
3.
4.
by residential uses.
SECTION II. CERTIFICATIO ND RECORDING. Upo passage and approval of the Ordinance, the
City Clerk is hereby authorized and di cted to certify a copy f this ordinance and to record the same, at the
office of the County Recorder of Johns County, Iowa, at th owner's expense, all as provided by law.
SECTION III. REPEALER. All ordin Vlid
s ordinances in conflict with the provisions of this
Ordinance are hereby repealed.
SECTION IV. SEVERABILITY. If any ' n or part of the Ordinance shall be adjudged to be
invalid or unconstitutional, such adjudicatiect the validity of the Ordinance as a whole or any
section, provision or part thereof not adjudgunconstitutional.
SECTION V. EFFECTIVE DATE. Thihall be in effect after its final passage, approval and
publication, as provided by law.
Passed and approved this day of / \ , 20_
ATTEST:
ZT-YrOM
Approved by:
CITY CLERK / City Attori ey's Office
N
O
r
NOTICE OF PUBLIC HEARING ON PLANS, SPECIFICATIONS, FORM OF CONTRACT AND
ESTIMATED COST FOR THE 2016 LANDFILL GAS COLLECTION SYSTEM EXPANSION
PROJECT IN THE CITY OF IOWA CITY, IOWA
TO ALL TAXPAYERS OF THE CITY OF IOWA CITY, IOWA, AND TO OTHER INTERESTED PERSONS:
Public notice is hereby given that the City Council of the City of Iowa City, Iowa, will conduct a public
hearing on plans, specifications, form of contract and estimated cost for the construction of the 2016 Landfill
Gas Collection System Expansion Project in said City at 7:00 p.m. on the 21st day of June, 2016, said
meeting to be held in the Emma J. Harvat Hall in City Hall in said City, or if said meeting is cancelled, at the
next meeting of the City Council thereafter as posted by the City Clerk.
Said plans, specifications, form of contract and estimated cost are now on file in the office of the City Clerk
in City Hall in Iowa City, Iowa, and may be inspected by any interested persons.
Any interested persons may appear at said meeting of the City Council for the purpose of making
objections to and comments concerning said plans, specifications, contract or the cost of making said
improvement.
This notice is given by order of the City Council of the City of Iowa City, Iowa and as provided by law.
MARIAN K. KARR, CITY CLERK
pwengUnasterslnph.doc
9/99