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Home My WebLink AboutWS - Forest View Relocation ProposalItem: WS STAFF PRESENTATION TO FOLLOW: 1 r i cm; tia tui , + mom Iii II CITY OF IOWA CITY 410 East Washington Street Iowa City, Iowa 52240-1826 (319) 356-5000 (3I9) 356-5009 FAX www.icgoV.org Forest View Relocation Proposal MARCH 22, 2022 Redevelopment Project Timeline • December2016: The Forest View Mobile Home Park Relocation Plan completed. The plan was prepared by HBK Engineering, LLC in partnership with North Dubuque, LLC, the residents of Forest View Mobile Home Park and the Center for Worker Justice. • August 2017: The City adopted Resolution 19-90, an amendment to the North District Plan that included updated housing, transportation and design goals along with commercial, single-familyand multi -family uses for the larger Forest View area. • February 2018: North Dubuque, LLC and Forest View Tenants Association jointly applied for a rezoning and preliminary plat covering approximately 73 acres of land. • May 2018: A revised Forest View Mobile Home Park Relocation Plan was completed. The Plan was prepared by HBK Engineering, LLC in partnership with North Dubuque, LLC, North Dubuque Developer, LLC, the residents of Forest View Mobile Home Park and the Center for Worker Justice. • June 2019: The City Council approved Ordinance 19-4794 — Rezoning 73.15 acres to OPD/RS-12 for 50.82 acres and OPD Highway Commercial (OPD/CH-1) for 20.45 acres and Neighborhood Public OPD/P-1 for 1.88 acres. The applicants included North Dubuque, LLC, and the Forest View Tenants Association. The rezoning was subject to a Conditional Zoning Agreement (CZA). Key next steps before building permits could be approved include a detailed affordable housing agreement and an updated traffic study. The owner also began the process of requestingTax Increment Financing(TIF) support for the public infrastructure components of the project. • March 2020: Onset of the COVID-19 pandemic and associated economic impacts on households, businesses, and commercial property markets. • June 2021: The OPD Plan expired per City Code standards as no building permits were issued within two years of the plan approval. 2019 Conditional Zoning Agreement • All persons who were residents on the day the CZA was signed (6/4/2019) are eligible for the assistance outlined in the plan. Eligible means any resident that is in good standing with the property and abiding by a current lease (if one exists). • 57 new modular homes were to be built in a new Forest View neighborhood based on the number of income -eligible residents and their desire to remain in the new development. The CZA also outlined several conditions related to the design of the homes. • The owner was to provide the opportunity for income -eligible residents to participate in a lease -to -purchase pathway to homeownership. • Each resident was to receive at least one-year advance notification of the date they must move. • Three replacement housing options were outlined including, (1) moving to a new modular home in the Forest View neighborhood if income -eligible (lease -to -own option), (2) relocating to housing outside the development, or (3) relocating to new multi -family buildings to be constructed within the development (with lease -to -own option). • Units were to be similar in size, function, and location and be decent, safe, sanitary, and affordable. Affordable is not defined in the Relocation Plan. However, conversations at the time anticipated residents being able to start with rent that was comparable to their current lot rent with an annual inflationary factor. • The owner was to hire a relocation coordinator to assist with the relocation activities and options available. • For those moving to a different location or living situation, a maximum replacement housing payment was limited to a maximum of $7,200 per household. This expense was to be covered by the owner. Moving expenses paid per the Fixed Resident Moving Cost Schedule for Iowa based on number of rooms with furniture. Current Status Project not moving forward, portion of site listed for sale Number of households steadily decreasing Lot rent remains at $310 Financial viability of maintaining the park has likely passed Deterioration of common areas, infrastructure and private homes 2020 and 2021 city sponsored efforts to winterize homes 2020 Iowa City Federation of Labor / Center for Worker Justice 2021 Habitat for Humanity Relocation Approaches 2016 Rose Oaks: $250 per household + social service support 2018 Hawl<eye Trailer Court: $4,000 per household, split between developer and city + social service support Federal Uniform Relocation Act methodology Consider gap between existing rent/utilities and comparable or newly leased unit over 42 months. Add moving expenses per federal schedule Max assistance of $7,200 (matches CZA language) Any City effort is voluntary and can be crafted based on the situation, funding availability, etc. Amount of Assistance Funding Source Eligibility Relocation Timeframe Future Affordable Housing Staff Relocation Proposal Eligibility: Household (mobile home unit) as of Sept 1, 2021 • Maximum household income of - $40,626 OR eligible for certain federal assistance programs • Self -certify income • Proof of residency required Amount: Methodology borrowed from URA but cap of $7,200 eliminated. Total assistance including moving allowance is $15,750. • Double cap in URA and CZA • 25% available upfront and 75% upon moveout • December 9th moveout deadline 6 Future Affordable Housing on Site Achieved through potential land dedication with current owner or future discussions with new owner Either scenario will be several years out at best Unknown funding sources and related eligibility limitations Recommendation is to focus on the relocation package as an independent matter and not tie in future housing commitments If such opportunity arises, the City Council can explore possibilities at that time with more precise project and funding information available Conclusion Legislative approvals do not always translate to successful projects Development team, residents, City and larger community invested considerable time, energy and financial resources into the project The existing CZA will not be executable, leaving everyone in a precarious position Proactive relocation is necessary to avoid a sudden displacement crisis and an opportunity for safer housing of their choosing in an amount greater than the CZA off-site assistance level Allows City to begin to work on alternative plans that can provide an overall benefit to the community, including future affordable housing and flood resiliency Council Discussion Questions 1. Staff has proposed offering relocation to households that were established in the Forest View neighborhood as of September 1, 2021, the month in which pursuing a relocation was first recommended. Other options include, but are not limited to: a. Current residents b. Residents established in Forest View as of March 3, 2021 c. Residents established as of the date of the Conditional Zoning Agreement (June of 2019) If the Council opts for option (c), consideration should be given to non-ARPA funding sources and potentially limiting assistance to $7200 per household, as was contemplated in the Conditional Zoning Agreement for off-site relocation. 2. Does the Council agree that self -certification of income (or eligibility in a prescribed federal assistance program) is a preferred approach over collecting data and information from residents that could potentially show the neighborhood was disproportionality impacted by COVID? The latter may allow those with incomes over the eligible threshold to access relocation funds paid through ARPA. 3. Is the Council comfortable with staff's proposal for a total relocation amount of $15,750 and the plan to offer 25% in advance of moveout and 75% upon moveout? 4. Is there agreement that in order to access the funding households must voluntarily vacate the property by December 9, 2022? 5. Staff intends to contract with a few non-profit organizations to provide relocation support for those needing such services. Accessing support services will be optional for households and not required to access relocation benefits. Is this City Council comfortable with this arrangement or is a strict case management approach preferred? 6. Staff recommends against any guarantee or first right of refusal related to future affordable housing on the 73 -acre redevelopment site. We are comfortable exploring these possibilities should they arise. Is the Council comfortable with this approach? STAFF PRESENTATION CONCLUDED 1 1 imospaqr CITY OF IOWA CITY 4 1 0 East Washington Strect Iowa City, Iowa 52240-1826 (319) 356-5000 (319) 356-5009 FAX www.icgov.org