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Home My WebLink About2018-02-22 Info PacketCity Council Information Packet CITY OF IOWA CITY www.icgov.org February 22, 2018 IP1 Council Tentative Meeting Schedule Miscellaneous IP2 Copy of article from Assistant City Manager: Affordable Housing Shortage Expected to Worsen Under New Tax Law IP3 Information from Iowa Department of Transportation (DOT): 1-80 Planning Study IP4 Invitation: Reminder — 2018 Winter Mixer at Big Grove - Tuesday 2/27 u[ -[[-7a IN J r , City Council Tentative Meeting Schedule w®� Subject to change CITY OF IOWA CITY February 22, 2018 Date Time Meeting Location Tuesday, March 6, 2018 5:00 PM Work Session Emma 1. Harvat Hall 7:00 PM Formal Meeting Tuesday, March 20, 2018 5:00 PM Work Session Emma J. Harvat Hall 7:00 PM Formal Meeting Tuesday, April 3, 2018 5:00 PM Work Session Emma J. Harvat Hall 7:00 PM Formal Meeting Monday, April 16, 2018 4:00 PM Reception ICCSD 4:30 PM Joint Meeting TBD Tuesday, April 17, 2018 5:00 PM Work Session Emma J. Harvat Hall 7:00 PM Formal Meeting Tuesday, May 1, 2018 5:00 PM Work Session Emma J. Harvat Hall 7:00 PM Formal Meeting Tuesday, May 15, 2018 5:00 PM Work Session Emma J. Harvat Hall 7:00 PM Formal Meeting Monday, June 4, 2018 5:00 PM Work Session Emma J. Harvat Hall 7:00 PM Special Formal Tuesday, June 19, 2018 5:00 PM Work Session Emma 1. Harvat Hall 7:00 PM Formal Meeting Tuesday, July 3, 2018 5:00 PM Work Session Emma J. Harvat Hall 7:00 PM Formal Meeting Tuesday, July 17, 2018 5:00 PM Work Session Emma J. Harvat Hall 7:00 PM Formal Meeting Tuesday, August 7, 2018 5:00 PM Work Session Emma J. Harvat Hall 7:00 PM Formal Meeting Tuesday, August 21, 2018 5:00 PM Work Session Emma J. Harvat Hall 7:00 PM Formal Meeting Page 1 of 2 _ j P2 V From Assistant City Manager Monroe Affordable Housing Shortage Expected to Worsen Under New Tax Law BY: J.B. Woaan I February 21, 2018 Even before Congress passed a $1.5 trillion tax cut in December, the demand for affordable rental housing far exceeded the supply. For every 100 renters who fit the federal government's definition of "extremely low income," only 35 units were available. Congress offers some money for people who can't cover the full cost of rent, but that, too, is inadequate: A recent study found that federal housing assistance goes to fewer than one in five of those who qualify. Now, because of the new tax law, the affordable housing shortage is expected to get worse By one estimate, developers will build nearly 235,000 fewer affordable rental units in the next decade. The reason? Congress diluted tax incentives that fueled the construction and rehabilitation of low-cost rental housing. "Considering how severe the affordable housing shortage is already, it's moving in the wrong direction," says Sarah Mickelson, senior director of policy at the National Low Income Housing Coalition. The primary way that all levels of government (federal, state and local) facilitate the production of affordable housing is through the federal Low Income Housing Tax Credit, which Congress created in its last major tax package under President Ronald Reagan. Between 1995 and 2015, the tax credit spurred the creation of more than 2 million affordable housing units, according to the U.S. Department of Housing and Urban Development (HUD). The Tax Cuts and Jobs Act that Congress passed just before Christmas, however, makes that tax credit less attractive. Now that the corporate tax rate is only 21 percent (down from 35 percent), affordable housing investors (which are mostly banks) will owe significantly less in taxes and have less of a need to buy tax credits from developers. The effect was visible even before the law passed Housing finance experts attribute last year's drop in the average price per credit to the election of Donald Trump. They say the market was already anticipating that Congress would overhaul the tax code and thus reduce the credits' value to banks. As the price drops, the credits become less helpful to developers who are trying to raise money from private investors for affordable housing projects. In 2016, the average monthly price of a credit ranged from $1.01 to $1.06, but from February through November of 2017, it ranged from 91 cents to 93 cents. In December, it dropped again to 89 cents. The diminished tax credit could be the beginning of more federal changes that would worsen the affordable housing shortage. For example, the White House budget released this month calls for a 14 percent reduction at the U.S. Department of Housing and Urban Development and the elimination of the Community Development Block Grant program and the HOME Investment Partnership Program — two block grants that help state and local governments build affordable housing. The White House has also http://www.goveming.com/templates/gov_print_article?id=474482103 2/22/2018 Page 2 of 2 asked Congress to allow work requirements for federal housing assistance programs, which would limit the number of low-income people eligible for rental aid. The White House budget, in its own words, "devolves responsibility to State and local governments, which are better positioned to assess local community needs and address unique market challenges." To justify those and other cuts to government programs, the Trump administration cites the $1.5 trillion that the GOP tax law will add to the national debt. Both the tax law and the White House budget come at a time when city officials say they need more affordable housing, not less. "City leaders are really feeling like the federal government is not living up to its obligation under these proposals," says Michael Wallace, who oversees federal advocacy for the National League of Cities. The best foreseeable hope for sweetening the value of the housing credits comes in March, when Congress faces a deadline to pass a long-term spending plan. An early version of the short-term spending deal passed in February included provisions from a bill last year that would have increased the size of the credit, but it wasn't included in the final deal. The bill, however, had bipartisan support. It was sponsored by U.S. Sen. Maria Cantwell, a Democrat from Washington state, and supported by Utah Republican Sen. Orrin Hatch, the chairman of the Senate Finance Committee. If Congress doesn't enhance the tax credit in the March budget deal, affordable housing advocates will continue to push for some kind of legislative fix. "We have to figure out how to make Low Income Housing Tax Credits more attractive again," says Wallace. This article was printed from: http://www.governing.com/topics/finance/gov-affordable- housing-tax-cred it.html http://www.governing.com/templates/gov_print article?id=474482103 2/22/2018 02-22--i - IP3 1=80 Planning Study The Iowa Department of Transportation is conducting a planning study of Interstate 80. The study is being developed and released through a series of technical reports that identify the existing condition of 1-80, the way the system is performing, short- and long-term issues, and strategies to improve the route. Each report will be accessible online as it becomes available on the Iowa DOT's 1-80 Planning Study website at: www.iowadot.gov/interstatestudy. The third and final online meeting is now available to view on the website. To view the meeting, navigate to https //iowadot.govfinterstatestudy/public-meetings, or select the "PUBLIC MEETINGStab on the homepage, and then select"Meeting 3"The meeting was recorded allowing persons to view it any time and will be available on the website throughout the duration of the planning study. Four new technical reports have been included on the website, these include: -Existing conditions. -Resiliency and vulnerability. -Viability of modal options. -Tolling considerations. The Iowa DOT is asking interested parties to take a few minutes to view the online public meeting and review the information on the website. The website also offers a way for those interested to receive future emails or text messages regarding the study. Use the "STAY CONNECTED" link on the 1-80 Planning Study website to subscribe. For more information regarding the study, contact the Iowa DOT's office listed below. To submit a comment online about this project, go to: http://bit.ly/180Comment. The Iowa DOT will be using the hashtag #180lowaPlan and you can use that key phrase to find relevant tweets about the planning study. When posting to Twitter about the planning study, please use #180lowaPlan and reference @iowadot in your post. More information will be posted as it becomes available at: www.iowadot.govfrnterstatestudy. Office of Location and Environment Iowa Department of Transportation 800 Lincoln Way Ames, Iowa 50010 Phone: 515-239-1225 Email: DOT-1-80Planning@iowadot.us Twitter: #1801owaPlan Comments: http://bit.ly/180Comment Federal and state laws prohibit employment and/or public accommodation discrimination on the basis of age, color, creed, disability, gender identity, national origin, pregnancy, race, religion, sex, sexual orientation, or veteran's status. If you believe you have been discriminated against please contact the Iowa Civil Rights Commission at 800457-4416 or Iowa Department of Transportation's affirmative action officer. 02-22 -18-- I P4 Kellie Fruehling From: Johnson County Affordable Housing Coalition <jcaffordablehousing=gmail.com@maill43.atl221.rsgsv.net> on behalf of Johnson County Affordable Housing Coalition <jcaffordablehousing@gmail.com> Sent: Thursday, February 22, 2018 11:20 AM To: Council Subject: Join us on Tuesday at Big Grove! No meeting tomorrow View this email in your browser AMC '1HNSON LUVIv I , Affordable Housing Coalition s"L.A All owe welcome -Po. axd OP affordable lnov,Si�° p,r09Yess tw JOt1NSOh Cokhs%' !_ JC4IL MTIM1'R M:VRpr.+.ri,ert �wM'albMaroCemr,n�Mey GINI Wpn TUESDAY, FEBRUARY 27 4:30-6:00 pm Big Grove Brewery, Iowa City FREE FOOD I Cash Bar I Door Prizes TUESDAY! Join us for our Winter Mixer NOTE: No community meeting tomorrow (Friday). Instead, join us on Tuesday, February 27 at Big Grove Brewery! Our twice -yearly mixers are an opportunity for us to get together for food, conversation, and connection -building in support of affordable housing progress. We want to see YOU there! RSVPs are appreciated but not required. You may RSVP on Facebook at hftl)s://www.facebook.com/events/204629740280049/ or by replying to this 1 email. See you Tuesday, February 27 at Big Grove in Iowa City! Thank you to University of Iowa Community Credit Union for their generous support of this Winter Mixer! Copyright* 2018 Johnson County Affordable Housing Coalition, All rights reserved. You are receiving this email because you signed up at an event or meeting. Our mailing address is: Johnson County Affordable Housing Coalition 308 E. Burlington St. PMB 121 Iowa City, IA 52240 Add us to your address book Want to change how you receive these emails? You can update your preferences or unsubscribe from this list.