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HomeMy WebLinkAboutPZ Agenda Packet 07.05.2023PLANNING AND ZONING COMMISSION Wednesday, July 5, 2023 Formal Meeting – 6:00 PM Emma Harvat Hall Iowa City City Hall 410 E. Washington Street Agenda: 1. Call to Order 2. Roll Call 3. Public Discussion of Any Item Not on the Agenda Zoning Code Amendment Items 4. Case No. REZ23-0001 Presentation and discussion on proposed zoning code amendments to improve housing choice, increase housing supply, and encourage affordability. 5. Consideration of meeting minutes: June 21, 2023 6. Planning and Zoning Information 7. Adjournment If you will need disability-related accommodations to participate in this meeting, please contact Anne Russett, Urban Planning, at 319-356-5251 or arussett@iowa-city.org. Early requests are strongly encouraged to allow sufficient time to meet your access needs. Upcoming Planning & Zoning Commission Meetings Formal: July 19 / August 2 / August 16 Informal: Scheduled as needed. Date: July 5, 2023 To: Planning & Zoning Commission From: Kirk Lehmann, Associate Planner, Neighborhood & Development Services Re: Zoning Code Amendments to improve housing choice, increase housing supply, and encourage affordability (REZ23-0001) Introduction Iowa City has a uniquely expensive housing market in Iowa. As a result, the City has increasingly focused on facilitating the creation of affordable housing opportunities and on enhancing housing choice within neighborhoods with a special focus on equity and low-income households. The City’s Zoning Code (Title 14) impacts housing choice and supply, which can affect affordability. To further goals identified in the Comprehensive Plan regarding affordable housing, staff proposes several amendments to Title 14 to enhance housing choice and support a more inclusive, equitable city. These include: • Increasing flexibility for a range of housing types to facilitate diverse housing choices; • Modifying design standards to reduce the cost of construction while creating safe, attractive, and pedestrian-friendly neighborhoods; • Providing additional flexibility to enhance the supply of housing by modifying dimensional standards and reducing regulatory barriers to accessory apartments; and • Creating incentives (e.g., density bonuses and parking reductions) to encourage income- restricted affordable housing throughout the community. The proposed amendments also include provisions to improve fair housing. This will help ensure that housing within neighborhoods can support a range of living situations and advance the City’s equity and inclusion goals. At your meeting on July 5, staff will provide an overview of the proposed amendments, answer questions, and request feedback from the Commission. These amendments will not solve all issues related to housing affordability or equity, but they can help improve housing choice, increase housing supply, and encourage affordability. Consequently, they are just one part of the larger effort to encourage affordability. By implementing these strategies, the City can become a more inclusive, diverse, and equitable place that provides housing opportunities for all residents. Background Affordable housing is complicated because it depends on a variety of factors including income, household characteristics, education, the cost of necessities such as child and health care, and the cost of housing itself. The U.S. Department of Housing and Urban Development (HUD) considers housing to be affordable if a household pays no more than 30% of its gross income on housing costs, including rent or mortgage payments, other fees, and utilities. Most publicly subsidized housing is targeted to households that make less than a certain percentage of the area median income (AMI) based on household size and housing tenure, as noted in Table 1. HUD defines households making less than 80% AMI as low income. For households with lower incomes, it is often the case that the housing families can afford may not meet their needs, such as a large family in a one-bedroom apartment, or they simply can’t find housing that is affordable. July 5, 2023 Page 2 Table 1: Household Income Limits Based on Household Size and Area Median Income (AMI) Household Size 1 2 3 4 5 6 Owner Households (80% AMI) $64,650 $73,850 $83,100 $92,300 $99,700 $107,100 Renter Households (60% AMI) $48,480 $55,440 $62,340 $69,240 $74,820 $80,340 Effective June 15, 2023, and updated annually One of the primary factors affecting housing affordability in Iowa City is continued growth. The metro provides a great quality of life and the University of Iowa and University of Iowa Hospitals and Clinics helps provide a strong economic base. These in turn draw new residents. However, continued growth has also strained housing affordability, especially for lower income households, because the demand for housing is not being met by an adequate housing supply of new construction as noted in the City’s recent residential development analysis (Attachment 1). This leads to increased competition, rising rental prices (especially in neighborhoods near the university), and higher sales prices. As a result, certain households can be priced out of the city. Another factor that influences housing choice and supply, and therefore the cost of housing, is the Zoning Code. Zoning is a tool used by the City to implement its Comprehensive and District Plans by providing rules for how land can be developed and used, including what structures can be built where and how they may be designed. The code must balance multiple goals, including protecting property values, encouraging appropriate uses of land, providing for a variety of housing types, promoting economic stability of existing and future land uses, lessening congestion and promoting access, preventing overcrowding of land, avoiding undue concentration of population, and conserving open space and natural, scenic, and historic resources. Given this context, it is crucial to continually assess whether the code is addressing the policy goals of the City as identified through public input processes and adopted plans. Public Engagement City Council adopted its first Affordable Housing Action Plan in 2016. The Plan identified 15 action steps based on goals in long-term planning documents and on previous public input about how the City could help address housing affordability. Since then, the City completed 14 of the action steps in the plan with the exception of regulatory changes to the code in support of affordable housing. In addition, the City continued engaging stakeholders during and after this process to identify additional solutions and barriers preventing the construction of affordable housing. In 2019, the City adopted a Fair Housing Choice Study which comprehensively reviewed impediments to accessing housing because of protected class such as race, gender, or disability as codified in the federal Fair Housing Act. This Study included recommended actions to affirmatively further fair housing based on extensive public input such as targeted feedback from stakeholder interviews and focus groups, a fair housing survey, public events, and a public adoption process. One of the most significant fair housing issues identified was lack of affordable rental housing, and improving housing choice was one of many strategies recommended to help address this issue. The full list of recommendations is included in Attachment 2. The City updated its Affordable Housing Action Plan in 2022 to build off previous efforts in support of affordable housing. Its recommendations, included in Attachment 3, were developed following nearly a year of data review and community engagement. Public input included the following: • American Rescue Plan Act citywide survey with over 1,800 responses and listening posts; • General outreach activities at Wetherby National Night Out, Fairmeadows Party in the Park, and CommUnity Crisis Services and Iowa City Compassion Food Bank distributions; • Meetings with targeted stakeholders such as the Disability Services Coordinating Committee, University of Iowa Student Government leadership, Catholic Worker House, July 5, 2023 Page 3 Agency Impact Coalition, Open Heartland, and community and economic development organizations; and • Comments from the Greater Iowa City Area Home Builders Association and Iowa City Area Association of Realtors regarding development regulations and from the Housing Action Team of Johnson County Livable Community for Successful Aging Policy Board regarding Accessory Dwelling Units. City Council drew upon previous planning work, studies, and community conversations to refine strategies, determine action steps, and establish priorities for their FY23-FY28 Strategic Plan. A summary of the action steps, which includes advancing prioritized recommendations in the 2022 Affordable Housing Action Plan, is included in Attachment 4. While the City has made significant progress since 2016, the proposed amendments are another step towards achieving the City’s goals as the culmination of these extended efforts. Zoning Code Amendment Summary & Justification The proposed amendments to Title 14 Zoning are intended to improve housing choice, increase housing supply, and encourage affordability while also enhancing equity in Iowa City. The following list describes current and proposed regulations, organized by topic. A future memo will include specific language and more detailed analysis. 1. Increase flexibility for a range of housing types The City of Iowa City has regulated uses since the adoption of its first zoning code in 1925. Over time, the ordinance expanded from simply distinguishing between residential, business, and industrial uses and zones to more complex structures regulating housing types and household arrangements, in addition to where they may be located. This has often resulted in zones that segregate and discourage housing types which are more financially accessible to lower income households in much of the community, even if they would not create substantial impacts. Consequently, the City has identified the need to expand the range of housing types allowed, especially in single-family zoning districts, in its 2016 Affordable Housing Action Plan, its 2019 Fair Housing Study, and again in its 2022 Affordable Housing Action Plan. The following changes are intended to create flexibility and streamline processes for a variety of more affordable housing types that would have limited impacts on neighborhood character. a. Allow duplex and attached single-family uses throughout single-family residential zones. Currently duplexes and attached single-family homes are only allowed on corner lots in the RS-5 and RS-8 zones. The proposed amendment would allow such uses to be located anywhere in a block. This provides additional flexibility to facilitate the inclusion of these housing types in more neighborhoods compared to current requirements. b. Allow townhome-style multifamily provisionally in the RS-12 zone. Currently up to 6 attached single-family dwelling units (i.e., one unit per lot) can be located in the RS-12 zone. The proposed amendment would allow up to 6 side-by-side, attached dwelling units to be located on one lot. Generally, these two uses are indistinguishable from the street since the only difference is the composition of lots. As such, this provides an additional method to provide housing without affecting the appearance of the neighborhood. c. Allow multi-family uses on the ground floor in most commercial zones by special exception and provisionally allow multi-family uses in the CC-2 zone. Currently, the code only allows multi-family uses on the ground floor in a few Central Business zones under very specific circumstances. In most commercial zones, multi-family uses are only allowed above the ground floor. Additionally, multi-family uses in the CC-2 zone require a special exception which must be approved by the Board of Adjustment. The proposed change would allow multi-family uses provisionally in the CC-2 zone and would also allow multi-family uses on the ground floor in most commercial zones through a special exception. This would mean a ground floor multi-family use must be reviewed by the Board of Adjustment to ensure all July 5, 2023 Page 4 approval criteria are met while multi-family uses on upper floors would be allowed provisionally in most commercial zones. This simplifies the process in most mixed-use contexts while permitting ground floor multi-family uses only where they are appropriate. d. Regulate assisted group living uses more consistently with multi-family uses in RM-12, CN-1, CC-2, CB-2, CB-5, and CB-10 zones. Assisted group living uses, which include assisted living facilities and group care facilities such as nursing homes, are currently allowed in many but not all zones where multi-family uses are allowed. In some cases, additional approval processes are also required. The proposed amendment would regulate assisted group living uses more consistently with multi-family uses by allowing it in more commercial zones, eliminating the need for a special exception in the RM-12 zone, and removing it as an allowable use in the CI-1 zone. The CI-1 zone is an intensive commercial zone where residential uses are typically not allowed. This provides for a greater variety of living arrangements without impacting the character of each zone. 2. Modify design standards Standards regarding building and site design based on zone, use, and location help ensure safe, attractive, pedestrian friendly neighborhoods. However, the 2016 Affordable Housing Action Plan identified a need to review the multi-family site development standards to reduce cost and expedite approvals, which has been supported by ongoing feedback from the Affordable Housing Coalition and Homebuilders Association. Design standards continue to be important, but staff recommends some adjustments to help reduce the cost and timing of compliance without impacting the purpose of the standards. a. Eliminate some multi-family site development standards to provide flexibility. Buildings containing multi-family or group living uses not built of masonry or stucco must have a 2- foot base of masonry, stucco, or dressed concrete, and where wall materials change, they must wrap 3’ around the corner. This often requires additional material which has cost and design implications. Removing these provisions will improve affordability and flexibility while continuing to meet the intent of the multi-family site development standards. b. Adjust standards to allow attached single-family and duplex uses in mid-block locations. Attached single-family and duplex uses in RS-5 and RS-8 zones are only allowed on corner lots, and each unit’s main entrance and garage must face a different street to appear like a single-family home. The proposed amendment would allow attached single- family and duplex uses in mid-block locations which would require different standards. Staff proposes amending the use standards in such a way to facilitate mid-block duplex and attached single-family uses consistent with other buildings in the neighborhood. c. Simplify the process to reduce parking setbacks for townhome-style multi-family uses. Currently, townhome-style multi-family uses cannot have parking for the first 15’ of building depth. This makes sense for the front, but parking for end units must be set back 15’ where they abut a street. While this standard may be waived by minor modification, it requires additional process and there is no similar requirement for attached single-family uses. The proposed amendment would allow the Building Official to simply waive this requirement for townhome-style multi-family uses without a minor modification. 3. Provide additional flexibility to enhance the supply of housing Iowa City is always balancing the demand for student rentals near downtown with concerns regarding quality of life for long-term residents and redevelopment in older neighborhoods. Residents near the edge of the city are also often wary of new development. As a result, single- family zones with lower densities, specifically RS-5 and RS-8, often become a default to try and minimize neighborhood opposition. This has several impacts including more conventional development patterns at the edge of the city that are often at odds with the City’s sustainability and equity goals. In some areas, RS-5 was also applied to historic small lot areas near downtown July 5, 2023 Page 5 which created non-conforming lots. In addition, planned development overlays are often required to recreate neighborhoods like those in the core of the city. Additionally, standards like bedroom caps for non-single-family detached units and policies on accessory apartments (a.k.a. accessory dwelling units) limit what housing types can serve households throughout the City. a. Modify dimensional standards to better align with existing lots and newer form-based standards, and to ensure greater consistency by use. Current and proposed dimensional standards are noted in the table below. In some older neighborhoods, lot sizes and widths do not conform to current zoning requirements, and standards for missing middle housing types are well above those in recently adopted for form-based zones (14-2H). The proposed amendment would reduce the minimum lot size and width for detached single- family uses in RS-5 zones and allow the RNS-12 zone to utilize the single-family density bonus which together align standards more closely to historic lot requirements. In addition, it would reduce lot widths for detached single-family uses in RM zones to match those for single-family uses in other zones. Finally, it would reduce minimum standards for duplex and attached single-family uses in RS-5 and RS-8 zones to be closer to those in the recently adopted form-based zones. These updates provide additional flexibility and enhance the supply of housing in a way that is consistent with the comprehensive plan. Zone Use Lot Size (Sq. Ft.) Area/ Unit (Sq. Ft.) Lot Width (Ft.) Frontage (Ft.) RS-5 Detached Single-family Current 8,000 (6,000 w/ rear access) 8,000 (6,000 w/ rear access) 60 (50 w/ rear access) 45 (30 w/ rear access) Proposed 6,000 (5,000 w/ rear access) 6,000 (6,000 w/ rear access) 50 (45 w/ rear access) 40 (30 w/ rear access) Duplex Current 12,000 6,000 80 80 Proposed 10,000 5,000 70 70 Attached Single-Family Current 6,000 6,000 40 40 Proposed 5,000 5,000 35 35 Other Uses Current 8,000 n/a 60 45 Proposed 6,000 n/a 50 40 RS-8 Duplex Current 8,700 4,350 70 70 Proposed 8,000 4,000 60 60 Attached Single-Family Current 4,350 4,350 35 35 Proposed 4,000 4,000 30 30 RNS- 12 Detached Single-family Current 5,000 5,000 45 25 Proposed 5,000 (3,000 w/ rear access) 5,000 (3,000 w/ rear access) 45 (30 w/ rear access) 25 (20 w/ rear access) RM- 12 Detached Single-family Current 5,000 5,000 55 40 Proposed no change no change 45 no change RM- 20 Detached Single-family Current 5,000 5,000 55 40 Proposed no change no change 45 no change b. Allow additional bedrooms for attached single-family, duplex and multi-family uses outside of the University Impact Area. The code limits multi-family uses to 3 bedrooms and duplex and attached single-family uses to 4 bedrooms. Staff recommends increasing the number of bedrooms allowed outside of the University Impact Area (see map in Attachment 5) to 4 bedrooms for multi-family uses and to 5 for duplex and single-family attached uses. This allows these uses to accommodate a wider range of family types in areas where development pressure for student rentals is less than near downtown. c. Encourage accessory apartments in a broader variety of contexts and reduce barriers to construction. Currently, accessory apartments are only allowed in conjunction with owner- July 5, 2023 Page 6 occupied, detached single-family homes in a limited number of zones. The proposed amendment would make several changes generally based on recommendations by the Housing Action Team of Johnson County Livable Community for Successful Aging Policy Board (Attachment 6). Proposed changes include allowing accessory apartments on any lot that allows household living uses and does not contain more than two dwelling units as a principal use (including all single-family and duplex lots). In addition, the amendment would remove barriers such as requirements for owner-occupancy, an additional parking space, that additions not exceed 10% of an existing building’s floor area, that the unit only have one bedroom, and that detached accessory apartments not exceed 50% of an accessory building’s floor area. It would also increase the allowable size of a detached accessory apartment to 1,000 square feet, though it still must be smaller than a percentage of the principal use. These changes help increase the supply of housing by encouraging the development of accessory apartments. 4. Create regulatory incentives for affordable housing The proposed amendments above help enhance housing diversity and increase housing supply, but they do not specifically create income-restricted affordable units for low-income households. As such, staff also recommends creating new regulatory incentives (i.e., density bonuses, flexibility, and parking reductions) for affordable housing in conventional zones. This would help reduce the cost of units in exchange for providing housing for low-income households in ways similar to other programs that directly subsidize affordable housing. As part of these changes, staff recommends consolidating multiple sections that encourage the provision of affordable housing into one section. This should enhance understanding and streamline administration. a. Create a density bonus for affordable housing units in conventional zoning districts. Currently the City offers height bonuses for affordable housing in Riverfront Crossings and density bonuses in Form-Based zones, but conventional zones only provide density bonuses for alleys serving single-family detached housing, for multi-family elder housing, for quality design elements in certain zones, and for features promoting sustainability. Staff proposes adding a 20% density bonus in exchange for 20% of units in a development being regulated as affordable housing for 20 years. The bonus would be administered through existing processes, primarily during site plan, subdivision, or OPD rezoning review depending on the project. This would help off-set the financial costs of providing affordable housing by increasing the allowable number of dwelling units. The proposed change may also include additional flexibility from dimensional and site development standards and would consolidate multiple sections of the zoning code that address affordable housing into a common set of definitions, requirements, and incentives. b. Expand existing parking reductions for affordable housing to all zones. Currently in the Riverfront Crossings District and Form-Based Zones, no minimum amount of parking is mandated for affordable housing. The code also allows a minor modification in CB-5 and CB-10 zones to exempt up to 30% of dwelling units in an affordable housing project from the minimum parking requirements. These should be consolidated into a single requirement exempting income-restricted affordable housing from minimum parking requirements in all zones if it serves that purpose for 20 years. This requirement will help offset the cost of providing affordable housing through an indirect subsidy equal to the cost of building parking areas. 5. Address fair housing In order to make Iowa City a more equitable place to live, staff also proposes amendments to help enhance fair housing as recommended by the City’s 2019 Fair Housing Study. a. Create a process to request reasonable accommodations from the zoning code. By federal law, cities are obligated to provide reasonable accommodations to land use or zoning policies when they may be necessary to allow persons with disabilities to have an equal July 5, 2023 Page 7 opportunity to use and enjoy a dwelling. Currently, the zoning code has some specific waivers (such as a minor modification to allow a ramp in the front setback), but they do not cover every accommodation and are not easily found. Adding a “Reasonable Accommodations Request” process would streamline the ability to grant reasonable accommodations with a defined approval procedure. b. Reclassify community service – long term housing uses as a residential use. Currently, long-term housing operated by a public or nonprofit agency for persons with disabilities is classified as a community service – long term housing use, which is considered an institutional use and is regulated differently from residential uses. Major differences include that community service – long term housing is only allowed in a few commercial zones (including the CI-1 zone which does not allow household living uses), but it is not allowed in residential or the CN-1, CB-10 or MU zones. On one hand, long term housing uses allow higher densities and less parking than residential uses in the zones in which it is allowed, and it is typically accompanied by on-site supportive services. On the other, it can trigger additional process where it is near single-family residential zones, and it requires a neighborhood meeting and management plan which are not required for any other residential use that houses persons with disabilities. To date, only two properties are classified as community service – long term housing uses. The proposed amendment would reclassify community service – long term housing as a residential use, and it would specify that supportive services only for residents are considered an accessory use. Where supportive services are provided for a population outside of a development, they would be considered a separate use. The proposed amendment would allow housing with supportive services for persons with disabilities more widely in the community while addressing a potential fair housing issue. Next Steps At the Planning & Zoning Commission’s first meeting in August, staff will present proposed changes to zoning code. A future memo to the Commission will provide a more detailed outline of the proposed Zoning Code amendments, along with additional analyses. Draft code language will also be available for public review, and staff will accept comments throughout the adoption period. Attachments 1. Memo Regarding Iowa City Residential Development in 2022 2. Excerpt of Recommendations from the Fair Housing Choice Study, 2019 3. Excerpt of Recommendations from the Affordable Housing Action Plan Update, 2022 4. Excerpt of the Action Plan from the FY23-FY28 City Council Strategic Plan 5. Map of the University Impact Area 6. Housing Action Team of Johnson County Livable Community for Successful Aging Policy Board Recommendations for Code/Ordinance for Accessory Dwelling Units (ADUs) Approved by: _____________________________________________ Danielle Sitzman, AICP, Development Services Coordinator Department of Neighborhood and Development Services Date: March 15, 2023 To: Geoff Fruin, City Manager From: Kirk Lehmann, Associate Planner Re: Iowa City Residential Development in 2022 Introduction: Every year, the City of Iowa City analyzes residential subdivision and building permit data to track development patterns and to compare recent and long-term trends. The goal is to provide accurate information that can be used during land use and planning decision-making processes, and to provide a discussion on implications for future growth. Key takeaways in 2022 include: - 2022 continued the trend of low levels of residential lot creation from the past few years. - The number of dwellings units permitted increased slightly from 2021, but the City is still seeing fewer units permitted than before the pandemic. - Permit activity continues to outpace the creation of new lots, which diminishes the supply. - If residential growth continues its recent pace, the City will only be able to accommodate less than 6,300 new residents by 2030, compared to a projected demand of 10,240. - While redevelopment can provide some additional housing, the City is still on track to experience unmet demand and deplete its supply of all vacant lots. Where housing demand remains unmet, the City may see impacts to its population growth and the growth of surrounding communities, which has implications on the City’s sustainability and housing affordability goals. One of the fundamental aspects of planning is being able to accommodate new growth. Staff believes it is important to continue encouraging residential development in areas with access to City services, as well as in the City’s planned growth areas. Background: Residential development is the process by which land is prepared for new dwellings, either as new construction on vacant land or redevelopment on land that was previously developed. It includes a series of steps with each step provides more clarity to the size, type, and appearance of the development. However, it is the final two steps of the land development process that provide the best understanding of how many new dwelling units are expected in the next few years: - Final Plats: A subdivision permanently delineating the location and dimensions of features such as lots, streets, easements, and other elements pertinent to the transfer of property. - Building Permits: The final administrative approval of building plans to allow construction. In general, the City distinguishes between three types of development. Single-family development includes one principal dwelling unit on a lot, which may be detached or attached to adjacent units (such as townhomes) and which may include accessory dwelling units. Duplex development includes two principal units on a single lot. Multi-family development includes three or more principal dwelling units on a single lot, which may include apartments or condominiums. In buildings with a mix of residential and non-residential uses, all dwellings are considered multi- family. March 15, 2023 Page 2 Analysis: This section reviews short-term and long-term trends on the approval of final plats, the issuance of building permits, and the number of vacant lots. This is used to estimate how long the supply of lots will last given recent development activity. Final Plat Activity In 2022, City Council approved two final plats with residential components: Sandhill Estates Part 5 in the south and Hickory Trail Estates in the northeast. While they encompass 57.63 acres, only 18.65 will be developed with 38.98 acres dedicated as parkland. In total, these subdivisions created lots that can accommodate 18 single-family units and an assisted living use with an estimated 140 beds (which are counted as dwelling units in Figure 1). Both properties were zoned Low Density Single-Family Residential with a Planned Development Overlay (OPD/RS-5). In 2022, the residential lots platted will accommodate the lowest number of single-family dwelling units since at least 1990 with the exception of 2010 (long-term trends are in Attachment 1). This is somewhat offset by the multi-family lot with a proposed 140-bed assisted living facility. While beds typically do not count as dwelling units, they do help accommodate some residential growth. Overall, the number of lots produced were below the average lots platted from 2012 to 2021, which would have accommodated an average of 128 single-family, 7 duplex, and 136 multi-family units annually. Figure 1 shows residential lots subdivided by type from 2012 to 2022. Figure 1: Residential Lots Subdivided by Housing Type (in Anticipated Dwelling Units), 2012-2022 Over the previous 30 years, enough lots were created to accommodate an average of 133 single- family units, 11 duplex units, and 123 multi-family units each year. This indicates that the production of single-family and duplex lots has somewhat decreased over time, while the production of lots accommodating multi-family units has increased. However, lot creation tends to occur in cycles lasting about 10 years with a recent peak in 2015. The City appears to be near the low point of its development cycle, though staff had hoped to see a larger rebound in development trends after last year. If past trends hold, development may increase over the next few years to peak around 2026. Several final plat applications are currently under review this year, which should help numbers in 2023. 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Multi-Family 209 76 7 144 98 279 206 204 108 32 140 Duplex 16 0 2 18 0 14 12 0 0 12 0 Single Family 111 154 254 259 169 31 105 79 56 65 18 0 50 100 150 200 250 300 350 400 450 Un i t s P l a t t e d March 15, 2023 Page 3 Building Permit Activity With regards to building activity, the City issued permits for approximately 363 dwelling units in 2022. Figure 2 shows residential building permits issued by type from 2012 to 2022. Trends for building permits include the following: - Single-Family: The number of single-family building permits sunk to 95 units from a brief uptick during 2021 and is now well below the 10-year (138) and 30-year (145) averages. Since 1990, 358 more single-family building permits were issued compared to lots created, which has decreased the supply of vacant single-family lots over time. - Duplex: Only 2 duplex units were permitted in 2022, which is lower than the 10- and 30- year annual averages of 10 and 22 respectively. However, relatively few duplexes are permitted annually, which causes greater variation in numbers. Prior to the 2005 zoning code update, duplexes were about twice as common. The supply of duplex lots also decreased over time with 166 more duplexes permitted than lots created since 1990. - Multi-Family: Permits for multi-family units increased to 266 units in 2022, but the number is still slightly below both the 10-year average (386) and 30-year average (274). Of the units permitted this year, 249 are due to a single building in the Riverfront Crossings District. Notably, no multi-family units were in mixed use buildings this year. Figure 2: Residential Building Permits Issued by Housing Type (in Dwelling Units), 2012-2022 Attachment 2 shows long-term trends in building permit activity. Similar to platting patterns, single- family and duplex building permits occur in cycles, but they have trended downward the past 30 years. However, multi-family construction has increased over time, especially following the adoption of the Downtown and Riverfront Crossings Master Plan in 2012. This has led to redevelopment in the Riverfront Crossings District, which is reflected in the recent peak in multi- family activity that culminated in nearly 900 multi-family units permitted in 2016 alone. As a result, the total number of units permitted has trended upward over the past 30 years. 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Multi-Family, Mixed Use 100 27 37 47 340 150 169 59 0 40 0 Multi-Family 140 488 218 499 556 203 163 417 49 155 266 Duplex 16 8 14 6 12 8 10 8 8 6 2 Single Family 143 171 176 137 172 157 109 80 97 133 95 0 100 200 300 400 500 600 700 800 900 1000 1100 1200 Dw e l l i n g U n i t s P e r m i t t e d March 15, 2023 Page 4 Development Potential In general, the number of new building permits exceeded the creation of new lots for all development types since at least 1990. Because multi-family development often occurs on infill sites, it is less dependent on the creation of new lots compared to single-family and duplex development. Figure 3 notes the number of vacant lots in Iowa City, the number of dwelling units they can accommodate, and whether they still require infrastructure for a building permit to be issued. This year’s memo provides a more complete understanding than last year’s because it includes all vacant lots in Iowa City rather than just those in subdivisions platted since 1990. Figure 3: Number of Vacant Lots by Type of Dwelling and Provision of Infrastructure Dwelling Type Infrastructure Required Infrastructure Provided Total Lots Units Lots Units Lots Units Single-Family 124 124 270 270 394 394 Duplex 0 0 12 24 12 24 Multi-Family 4 56 16 709 20 765 At the end of 2022, the City had approximately 394 vacant single-family lots, of which 270 are currently served by infrastructure. The City also contained 12 vacant duplex lots with infrastructure provided. With regards to lots that still require infrastructure to be built, the City anticipates 18 single-family lots will become buildable next year in Sandhill Estates Pt. 5 which was recently platted. The other 106 single-family lots that still require infrastructure are from older subdivisions that are not likely to be built out anytime soon. Note that residential lots owned by adjacent property owners and used as a single lot are excluded from these numbers because they are unlikely to develop. Most vacant single-family lots available for development are in the Northeast, South, or Southeast Planning Districts. Multi-family development depends less on new lot creation because many new units are part of redevelopment projects on existing lots. At the end of 2022, the City had around 20 vacant multi- family lots, of which 16 had infrastructure provided. 14 of these lots are on greenfield sites and are expected to accommodate at least 483 dwelling units (including the assisted living facility with 140 beds). The other 2 lots are on infill sites and concepts show them accommodating at least 226 units. The 4 multi-family lots that do not yet have infrastructure constructed are expected to accommodate at least another 56 dwellings units. Vacant developable multi-family lots are spread throughout the City, including the North (52 units), Northeast (70 units + 140 beds), Southeast (75 units), South (36 units), Northwest (110 units), and Central/Downtown (226 units) Planning Districts. Undevelopable lots are currently located exclusively in the South District. There is also some capacity for additional units on partially developed lots that are not included. Based on development trends from 2012 through 2021, the supply of vacant lots with infrastructure would last as follows: - 2.0 years for single-family units (down from 2.7 in 2021), - 2.4 years for duplex units (down from 3.7 om 2021) - 1.8 years for multi-family units (up from 1.7) – note redevelopment extends this timeframe. Because this analysis is more complete than that conducted last year, the decrease in the supply of vacant single-family and duplex lots points to an even larger deficit than previously understood. March 15, 2023 Page 5 Discussion: The year 2022 marks one of the lowest levels of residential lot creation in at least 30 years, especially as it relates to single-family lots. It also reflects broader trends such as building permit activity outpacing the creation of new lots. This has resulted in a diminishing lot supply which is not meeting the demand. Ripple effects include increased competition for a limited supply of residential lots, which can increase lot prices. Despite this, the number of dwelling units developed has increased over the past 30 years, primarily due to multi-family redevelopment which does not depend as heavily on the creation of new lots. Looking forward, the Metropolitan Planning Organization of Johnson County (MPO) projects a demand for 10,240 new residents in Iowa City by 2030. However, if recent trends continue through 2030, the City would only be able to accommodate new population as follows: - 2,626 new residents based on the development of all vacant residential lots (in 394 single-family units, 24 duplex units, and 765 multi-family units); or - 3,189 new residents based on average annual residential lot creation trends from 2020 through 2022 (in 463 single-family units, 40 duplex units, and 933 multi-family units); or - 6,297 new residents based on average annual building permit trends from 2020 through 2022 (in 1,083 single-family, 53 duplex, and 1,700 multi-family dwelling units) Based on the most optimistic scenario, the City stills need to develop and build out all currently platted vacant lots, and add lots accommodating an additional 689 single-family, 30 duplex, and 935 multi-family dwelling units over the next 7 years. This would still only accommodate 61% of the projected demand for new housing and would leave the City with no available lots for the next decade. To meet the full demand projected by the MPO, the City would need to construct approximately 3,430 dwelling units, on top of developing all existing vacant lots. Staff anticipates the completion of several final plat and redevelopment applications this year which will help next year’s outlook. However, these trends continue to highlight a significant deficit. If Iowa City cannot meet its demand for housing, it may see slower population growth along with other repercussions. First, excess demand may locate in nearby cities, such as Tiffin or North Liberty, which have seen a proliferation of new residential lots. This can create negative environmental impacts as homes shift further from employment centers and car dependence and traffic congestion increases. Other impacts include rising housing prices - when supply cannot meet the demand for housing, Iowa City becomes less affordable. Regardless of the cost when built, new homes are needed to help the City meet its demand for housing to achieve affordability. Accommodating new residential growth is a fundamental aspect of planning for the future of Iowa City. Staff believes it is important to continue to encourage residential growth in areas that have access to City services, such as in infill locations, as well as in the City’s designated growth areas which are anticipated to become part of the City in the future. Attachments: 1. Residential Lots Subdivided by Housing Type (in Anticipated Dwelling Units), 1990-2022 2. Residential Building Permits Issued by Housing Type (in Dwelling Units), 1990-2022 Attachment 1: Residential Lots Subdivided by Housing Type (in Anticipated Dwelling Units), 1990-2022 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Multi-Family 194 0 44 22 20 4 262 28 89 434 118 233 54 413 117 169 11 142 31 0 60 64 209 76 7 144 98 279 206 204 108 32 140 Duplex 12 0 40 6 22 116 8 0 0 0 2 0 24 26 4 0 0 8 6 0 0 0 16 0 2 18 0 14 12 0 0 12 0 Single-Family 75 264 167 359 205 49 89 110 46 174 92 63 281 108 300 193 173 77 65 81 0 79 111 154 254 259 169 31 105 79 56 65 18 0 50 100 150 200 250 300 350 400 450 500 550 600 650 An t i c i p a t e d D w e l l i n g U n i t s Attachment 2: Residential Building Permits Issued by Housing Type (in Dwelling Units), 1990-2022 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Mixed Use*17 82 45 42 56 0 16 51 100 27 37 47 340 150 169 59 0 40 0 Multi-Family 203 140 312 235 335 166 218 185 97 152 267 310 402 486 220 141 138 83 85 71 80 76 140 488 218 499 556 203 163 417 49 155 266 Duplex 2 10 12 20 28 16 28 26 32 44 26 34 34 60 52 62 18 26 16 10 8 18 16 8 14 6 12 8 10 8 8 6 2 Single-Family 136 143 214 223 206 149 90 110 154 209 139 129 148 193 149 160 137 133 114 127 108 80 143 171 176 137 172 157 109 80 97 133 95 0 100 200 300 400 500 600 700 800 900 1000 1100 1200 Dw e l l i n g U n i t s * not collected prior to 2004 FAIR HOUSING CHOICE STUDY 2019 Analysis of Impediments to Fair Housing Choice Neighborhood & Development Services 410 E. Washington Street, Iowa City, IA 52240 Adopted August 20, 2019 171 171 Chapter 5: Impediments & Recommendations This Chapter analyzes factors that create, contribute to, perpetuate, and increase the severity of fair housing issues. Identifying contributing factors is important in assessing why members of protected classes may experience restricted housing choice due to various reasons including, but not limited to, segregation, disparities in access to opportunity, disproportionate housing needs, or ot her issues. Some contributing factors are outside of the ability of the City to control or influence; however, such factors should still be identified and recognized. After discussing and identifying barriers to fair housing choice in Iowa City, it is important to lay out strategies to overcome those barriers. These strategies can then be prioritized and incorporated into subsequent planning processes such as the Consolidated Plan. Ultimately, the City is responsible for taking meaningful actions to move towards completing the strategies identified. Meaningful actions are designed and can be reasonably expected to achieve a material positive change that affirmatively furthers fair housing by, for example, increasing fair housing choice or decreasing dispar ities in access to opportunity. The City of Iowa City is committed to providing fair housing choices for all its residents. The City Code has a broad definition of discriminatory behavior, an inclusive definition of protected classes, and is clear in its lack of tolerance for discriminatory behavior in the housing market. The City’s Comprehensive Plan envisions a city with a variety of housing options for the city’s diverse population. The City’s Zoning Ordinance allows for construction of a variety of housing types at difference price points. And the City’s Building Code does not impose conditions that could restrict fair housing choice for protected classes. However, policies and practices can be improved upon and the City can take additional steps to assure that all protected classes have fair access to housing in Iowa City. These identified impediments to fair housing choice and some strategies to address them comprise the rest of this Chapter. 172 DRAFT FAIR HOUSING CHOICE STUDY | 2019 Analysis of Impediments to Fair Housing Choice 1: Improving Housing Choice One of the primary barriers identified is the lack of adequate housing choices throughout neighborhoods in Iowa City for residents with protected characteristics, who tend to have disproportionately lower incomes. This includes a lack of availability in addition to d iversity in price points, housing types, and locations that would facilitate equal access to housing across the City. While many low-income households in Iowa City are nonfamily student renters, 21% are small families (including single parents) and 15% are elderly. 31% of low-income households have a member with a disability. Many are people of color. Large families face additional challenges in finding appropriate units with the proper price points. Coupled with the City’s expensive housing, this has nega tively impacted fair housing choice within Iowa City. Ensuring a diversity of affordable housing is available in a range of locations and types to promote fair housing choice, especially in areas that promote access to opportunity. This means encouraging the provision of affordable housing for households of all types in Iowa City, including larger units for families with children, smaller accessible units with supportive services for the elderly and persons with disabilities, and adequate housing for students. When considering housing choice, transportation, supportive services, school quality, and other important factors must also be considered. The City should continue to support and encourage a diversity of housing types in areas of opportun ity. The following strategies assist in addressing this impediment to fair housing choice: Strategy 1: Facilitate a Range of Housing Types One strategy to overcome this barrier is to allow a wider variety of development types in areas throughout the community. Since most areas are zoned for low density, single family homes, this will require exploring ways to increase the density and the types of housing allowable in order to further fair housing goals. This strategy includes promotion of more types of housing in more varied locations, which also facilitates the creation of housing units at different price points within neighborhoods. Many non-single family residential developments require rezonings to increase density. The City can proactively increase the amount of land available for development by-right for higher densities, as encouraged by the Comprehensive Plan along major arterials, intersections, and commercial centers. This may be especially helpful where undeveloped land is zoned for single family and would allow a variety of housing types as the land is developed . Staff could proactively look for areas intended for higher densities and initiate a rezoning with the City as the applicant. Eliminating the distinction between single family and multi -family residential zoning districts would have a similar effect, thereby regulating by density rather than type of housing. Similarly, the City could make flexible zoning arrangements, such as OPD overlays, provisional rather than negotiated. This would encourage its use while simultaneously promoting a range of housing. Another way to increase housing variety is to remove restrictions on housing sizes for units that are not detached single family units (i.e. attached single family, duplex, and multi-family dwellings). Specifically, the code places a bedroom cap on these types of units, which may negatively affect the ability of certain protected classes to find appropriate units, such as large families. The City should explore expanding the number of bedrooms from three to four in multi-family units and consider when this would be allowed to better accommodate larger families throughout the City. While this does not necessarily change the type of housing, it does allow a greater diversity of units within a specific type of housing. 173 173 Strategy 2: Lower the Cost of Housing In addition to facilitating a wider range of housing types throughout Iowa City, reducing the cost of housing can also help ensure more varied price points, especially in the more affordable rental and owner markets. The City is already in the process of working with the Home Builders Association to explore ways of reducing costs through modifications to the zoning and development codes. One way to lower the cost of housing is to evaluate building and housing permit fees and their effects on housing costs. Given that these fees have a higher relative impact on lower cost units, it is recommended that the City explore reducing or waiving fees for properties which are operated for affordable housing by non-profit housing organizations to offset negative disproportionate impacts. This could be used for properties in the private market receiving City assistance for a period of time for affordable housing as well. It may also be possible to use property tax policies to lower the cost of housing. While there are already several such programs for the most vulnerable populations, including seniors, persons with disabilities, and affordable rental housing providers, broadening property tax relief could further help preserve lower-income homeownership opportunities for the more than 4,000 low income homeowners in the City. For example, tax exemption policies could be used to increase the affordability of housing. The ongoing viability of the existing housing stock becomes increasingly important as the cost of new housing continues to rise. Continued improvement and maintenance of the current stock is vital. Efforts towards energy conservation can also reduce heating and cooling costs when rehabilitating older homes. All these factors can help lower the cost of housing. Due to the number of student households in the community, the City should explore ways to increase affordability and housing choice for this demographic. Incentives for housing programs should remain available for students from low income families and students who are financially independent. Strategy 3: Continue investment in affordable housing There is a growing gap in the number of affordable homes for those with lower incomes. C ontinuing affordable housing activities is crucial to creating a variety of housing types and price points within the community. This can include new construction, acquisition, and rehabi litation of rental and owner properties. These provide a valuable opportunity to improve housing choice for members of the protected classes who are often low- and moderate-income households. This also includes leveraging City funds to obtain additional affordable housing investment in the community through LIHTC or other programs that assist with the construction of affordable housing opportunities. Assisting renters’ transition to homeownership, in certain cases, may also help stabilize housing payments t hrough fixed rate mortgages in a market experiencing increasing rental rates. Strategy 4: Retrofit Housing for Equal Access In some cases, appropriate units are not be available, especially for those with disabilities. In such cases, it becomes important to allow owners and renters to make housing units accessible so that they have an equal opportunity to use and enjoy a dwelling. Access may include physical access for individuals with different types of disabilities. For example, installing ramps and other accessibility features for individuals with mobility impairments, visual alarms and signals for individuals who are deaf or hard of hearing, and audio signals, accessible signage, and other accessibility features for individuals who are blind or have low vision. To facilitate this need, the City should adopt a Reasonable Accommodation or Modification procedure to their zoning ordinances and other policies. This would allow persons with disabilities to request a reasonable accommodation/modification to 174 DRAFT FAIR HOUSING CHOICE STUDY | 2019 Analysis of Impediments to Fair Housing Choice regulatory provisions, including land use and zoning requirements to facilitate the retrofitting of existing housing. In addition, because many low-income households are elderly and/or disabled, continuing to provide assistance to allow those households to age in place is also important, as is continuing to invest in their housing to ensure it remains safe, decent and affordable . 175 175 2: Facilitating Access to Opportunity Housing that affords access to opportunities, such as high-performing schools, public transportation, employment centers, low poverty, and environmentally healthy neighborhoods may be cost prohibitive or non-existent for persons in certain protected classes, especially for those with lower incomes. High costs can have a greater effect on families with children who need multiple bedrooms and individuals with disabilities who need accessible housing or housing located close to accessible transportation. Currently, Iowa City appears to have some disparate access to opportunity, especially when it comes to access to jobs and other quality of life factors such as affordable childcare. The geographic relationship of employment centers, housing, and schools, and the transportation linkages between them, are important components of fair housing choice. The quality of schools and economic opportunities are often major factors in deciding where to live. Job and school quality are also key components of economic mobility. Ensuring affordable units are available in a range of sizes, locations, and types is essential to providing equal access to opportunities by meeting the needs of individuals with protected characteristics. In Iowa City, ensuring the availability and accessibility of a variety of jobs and training opportunities, is also vital. In addition, affordable childcare should be available and close to a range of housing opportunities, and facilities should be fully accessible to individuals with different types of disabilities to avoid further barriers. As such, siting as it relates to the placement of new housing developments, especially those that are affordable, becomes crucial. This includes new construction or acquisition with rehabilitation of previously unsubsidized housing. Local policies and decisions significantly affect the location of new housing. In addition, the availability, type, frequency, and reliability of public transportation including buses and paratransit for persons with disabilities also affect which households are connected to community assets and economic opportunities. As such, it is important to connect individuals to places they need to go such as jobs, schools, retail establishments, and healthcare. This study proposes a balanced approach to address disparities in access to provide for both strategic investment in areas that lack key opportunity indicators, while opening housing opportunities in areas with existing opportunity through effective mobility options and the preservation and development of a variety of housing in high opportunity areas. Several strategies can assist in addressing this impediment to fair housing choice: Strategy 1: Emphasize Variety in Housing in Areas of Opportunity Areas of opportunity are places where jobs are relatively plentiful and access to education, healthcare, and other amenities is close at hand. Iowa City generally ranks highly when it comes to quality of life. However, some areas of town have less access to opportunity as identified w ithin this Study, especially as it relates to affordable childcare and job access. Analysis suggests there are some discrepancies in services and access to opportunity by race, income, and area. To some extent, this is likely due to clustering of racial and ethnic groups. All protected classes should have an equal opportunity to live throughout Iowa City. Increasing housing variety for a range of household types and price points, in areas with affordable childcare and near job centers is one way to achieve fair housing choice while improving access to opportunities. This strategy complements those related to increasing the variety of available types and prices of housing. The placement of the City’s subsidized housing is governed by the Affordable Housing Lo cation Model (AHLM). The model serves to not place additional subsidized housing in areas that already have a concentration of City-assisted housing and lower incomes as determined by elementary school catchment areas. The model does not apply to housing for persons with disabilities, seniors, the rehabilitation of existing rental housing or for homeownership. The AHLM does not necessarily promote greater variety of price points in areas of opportunity. As such, the City could explore ways to use the 176 DRAFT FAIR HOUSING CHOICE STUDY | 2019 Analysis of Impediments to Fair Housing Choice model or another policy to promote city-assisted housing in low poverty neighborhoods or neighborhoods that provide good access to opportunity. The goal of fair housing choice is to provide sufficient, comparable opportunities for housing for all types of households in a variety of income ranges. Comparable units should have the same household (elderly, disabled, family, large family) and tenure (owner/renter) type; have similar rents/prices; serve the same income group; in the same housing market; and in standar d condition. The goal is not to necessarily have an equal number of assisted units within each neighborhood, but rather that a reasonable distribution of assisted units should be produced each year to approach an appropriate balance of housing choices within and outside neighborhoods over several years. An appropriate balance should be based on local conditions affecting the range of housing choices available for different types of households as they relate to the mix of the City’s population. Strategy 2: Community Investment It is recommended that the City pursue additional investment in neighborhoods with higher concentrations of low income families, especially those with concentrations of persons with protected characteristics, to improve the quality of life for existing residents. This may include a range of activities such as improving housing, attracting private investment, creating jobs, expanding educational opportunities, and providing links to other community assets. The quality and maintenance of housing is especially important to community investment as survey respondents rank it as one of the factors that varies most widely between areas of the City. As a result, the City should continue targeted investment in infrastructure, ameniti es, community facilities, and public services serving lower income households and in low income areas. Amenities such as recreational facilities, grocery stores, pharmacies, and banks are especially important in maintaining a higher quality of life. Housing rehabilitation is also important in maintaining the housing stock and appearance, while new construction in areas that have not received as much recent investment can also be beneficial. Special attention should be given to investments that increase access to housing or that lower housing costs generally, such as energy efficiency improvements. Economic development support near low-income neighborhoods also can create jobs, increase wages, and increase access to amenities. This strategy in conjunction with providing a diversity of housing types in all new neighborhoods creates opportunities of access throughout the City. Preserving the City’s existing affordable housing is also important as part of a balanced approach to affirmatively further fair housing. This can include funding and indirect subsidies for rehabilitation to maintain physical structures, refinancing, affordable use agreements, and incentives for owners to maintain affordability. Similarly, efforts to repair and maintain the infrastructure of existing affordable housing should be part of concerted housing preservation and community investment effort. The City should continue encouraging private investment to advance fair housing from homeowners, developers, and other nonprofit or business initiatives. Securing financial resources (public, for-profit, and nonprofit) from sources inside and outside the City to fund housing improvements, community facilities and services, and business opportunities in neighborhoods will help ensure access to opportunities for all residents. Strategy 3: Enhance Mobility Linkages Throughout the Community Non-automotive transportation is an important part of ensuring equal access from housing to jobs and other amenities in Iowa City. Transportation improvements could significantly improve access to opportunity for employment and other services and amenities for those who rely on public or active transportation. This complements policies to increase the range of housing opportunities near opportunity and employment areas which can reduce spending on transportation-related expenses. 177 177 Strategies to enhance both active and public transportation linkages may include improved coordination with service providers, expansion of active and public transportation to provide ac cess to jobs through improved infrastructure, providing late night/ weekend service, or ensuring adequate coverage to assist with access to opportunities. Investment across the City can also include improved transit facilities and equipment, including bus shelters, and expanded bicycle and pedestrian facilities. Prioritizing ADA access is especially important to further fair housing purposes. 178 DRAFT FAIR HOUSING CHOICE STUDY | 2019 Analysis of Impediments to Fair Housing Choice 3: Increasing Education and Outreach Based on public input, many residents of Iowa City lack awareness about rights under fair housing and civil rights laws, which can lead to under-reporting of discrimination, failure to take advantage of remedies under the law, and the continuation of discriminatory practices. Even those who do know their rights do not always act on them due to feeling it would not be productive or fear of reprisal. This suggests a lack of knowledge and awareness regarding fair housing rights is a major barrier to fair housing choice. Ensuring access to information about housing programs and neighbo rhoods can also facilitate fair housing goals. This is because individuals and families attempting to move to a neighborhood of their choice, especially areas of opportunity, may not be aware of potential assistance or support. In those cases, having quality information related to housing and affordability, available services, and organizations that serve potential tenants, can help those moves be successful. Other relevant info may include listings of affordable housing opportunities or local landlords; mobility counseling programs; and community outreach to potential beneficiaries. Several strategies can assist in addressing this impediment to fair housing choice. Strategy 1: Improve Demand-Side Awareness The demand-side of the housing market includes tenants, homeowners, borrowers, mobile home park residents, and other who need and/or use housing. Generally, these groups do not have any formal training or education regarding their fair housing rights, nor are they formally organized in most cases. This makes it important to raise awareness through advocacy campaigns, education and outreach activities geared toward the general public, and fair housing informational materials for both homebuyers and tenants. Housing Choice Voucher (HCV) holders should especially be informed of their rights, including the right to be free from discrimination based on source of income. In addition to fair housing rights, this should include how to report violations of those rights. It is recommended that the City explore the development of new outreach, education, or informational programs and activities to promote housing opportunities for segments of the community such as persons of color, those not as fluent in English, and for the elderly and persons with disabilities. This should be done in cooperation with other organizations working on furthering fair housing. Ideally, this will increase knowledge of the laws, reduce discriminatory behavior, achieve a better understanding, and reduce negative attitudes concerning people who are racially, ethnically, and culturally diverse or who are disabled. A comprehensive program would help ensure that there is broad knowledge of legal protections for all residents. Beyond fair housing information, providing more generalized information about housing can be beneficial. For example, information for tenants about leasing can improve rental outcomes and homebuyer education can help those less familiar with homeownership, such as long-term renters, overcome challenges as first time homebuyer. Those new to the HCV program can also benefit from additional information about facilities and services available in each neighborhood to assist them with their housing search. This may encourage voucher holders to look for housing in neighborhoods with more access to opportunity. This information can also assist residents moving from high -poverty to low- poverty neighborhoods that have greater access to opportunity assets appropriate for their family. It is important that information is comprehensive (e.g. that the information provided includes a variety of neighborhoods, including those with access to opportunity indicators) and up -to-date (e.g. that the information is actively being maintained, updated and improved). The information should also alleviate fears of retaliation and should showcase the process and concrete outcomes to address those who “didn’t know what good it would do” to report discrimination. 179 179 Strategy 2: Increase Supply-Side Awareness The supply-side of housing includes lenders, appraisers, mortgage insurers, realtors, landlords, and management companies. Unlike the demand-side, these groups are often provided formal training regarding fair housing rights through industry groups or employee training. As such, they require less guidance than the demand-side of housing. However, it is still important that they understand fair housing rights and responsibilities as well, especially small landlords or others who may be less formally integrated within the industry. As such, technical training for housing industry representatives remains an important component of the City’s efforts to affirmatively further fair housing in the communit y. In addition to general fair housing rights, those on the supply -side of housing should also be made aware of best practices and efforts to affirmatively further fair housing through equity, inclusion, fairness, and justice. This could involve providing education regarding marketing in targeted neighborhoods or for protected classes and encouraging advocacy groups to share opportunities for their products and services. Similarly, additional technical training regarding civil rights may include fair housing issues such as the appropriate application of arrest and criminal conviction records, credit policies, prior evictions, leasing and lease termination decision making; and fair housing issues affecting LGBTQ individuals. Pro-active outreach can widen the pool of participating rental housing providers, including both owners of individual residences and larger rental management companies. Meanwhile, the City should encourage these groups to regularly examine and update their policies, procedures, and practices to avoid differential treatment of residents and applicants based on protected characteristics. Similarly, supply-side providers should also be encouraged to examine their clientele profiles to determine whether there are neighborhoods or groups that are underrepresented or unrepresented. Doing so will help supply-side providers to go beyond just understanding fair housing issues towards meaningfully furthering fair housing. Strategy 3: Increase Regulator Awareness The City must ensure those who make decisions regarding public policies and regulations, including public officials, Commission and Board members, and staff, have adequate fair housing training. While this will further fair housing, it may also help inspire confidence in the City’s processes. In addition to general training, one potential method of educating decision -makers would be to train them as fair housing ambassadors who can then help spread the word about fair housing to both demand - and supply-side groups. Strategy 4: Provide meaningful language access Individuals with limited English proficiency (LEP) includes anyone who does not speak English as their primary language and who has a limited ability to read, write, speak, or understand English. Often, t his is tied to foreign-born populations who may not understand English. Increasing meaningful language access regarding fair housing information and housing programs would facilitate housing choice for LEP individuals seeking housing. It is important that housing providers and policy makers ensure that all individuals have access to information regarding fair and affordable housing, regardless of language. In Iowa City, this is particularly salient due to the higher prevalence of foreign-born populations. Relevant City departments maintain Limited English Proficiency (LEP) plans to ensure equal access to knowledge of fair housing and housing assistance. However, the LEP plan likely needs to be updated, especially as the number of foreign-born residents has rapidly grown in recent years. In addition, the City should explore what housing documents are most important to translate to achieve a better understanding of fair housing choice by LEP speakers and to improve communication through language access. 180 DRAFT FAIR HOUSING CHOICE STUDY | 2019 Analysis of Impediments to Fair Housing Choice 4: Operational Improvements Several other barriers to fair housing choice in Iowa City included smaller operational and planning changes that could help affirmatively further fair housing. These include impediments such as administrative processes and regulations which can slow down and/or stop projects that would benefit protected classes, a need for increased regional cooperation for issues that affect housing, a lack of information that could help identify or address other barriers, and a need to improve the transparency of fair housing enforcement. Most of these barriers can be addressed through operational improvements at the City level, though accomplishing in cooperation with others may improve their effectiveness. Strategy 1: Improve Fair Housing Enforcement and Transparency In addition to ensuring awareness of fair housing rights and process, the City needs to improve enforcement and increase transparency in the process, so the public can be aware that complainants obtain relief in a timely and effective manner. Doing so would fight feelings of helplessness and provide certainty to complainants that filing a report helps combat fair housing violations. This may include actively monitoring the outcomes of complaints, in addition to making fair housing complaint information more easily visible to the public. Fair housing testing may also assist with transparency and fair housing enforcement. Doing so allows the City to identify whether landlords or realtors, and others involved in the housing market are abiding by fair housing laws. In addition, these tests help the City to better identify and target fair housing outreach. Strategy 2: Review implementing procedures and regulations The City has several new programs, administered by various staff and departments, with various rules that can be confusing to understand, implement and enforce. This problem is exacerbated when the program is combined with federal programs that have rigid, complex rules. This creates a challenging regulatory environment, especially for affordable housing and public service programs. As such, t here are opportunities to harmonize, coordinate, streamline, and define administration and planning. Possibilities include centralizing processes for affordable housing and ensuring they are online; reducing uncertainty for service providers in allocating funds; and harmonizing rules between programs. Similarly, the zoning ordinance has been updated in fragmented ways since its initial adoption. While it generally accommodates the City’s fair housing goals, codes frequently updated can indicate a need for a comprehensive reevaluation. This is a long -term effort. In the meantime, incremental improvements can make the code easier to follow yet still comprehensive and flexible. One simple change is to reclassify community service – long term shelter as a multi-family/mixed use, since it is a long-term residence rather than a public service shelter use. Another similar chan ge is to clarify the definition of nonfamily households; the current City definition is a holdover from before the State modified law to prohibit regulating use based on familial characteristics . In addition, administrative procedures may better promote fair housing choice as compared to some decision-making processes. Updating administrative policies and practices may help support Council objectives in ways that produce more impartial, predictable outcomes. The City should promote funds to organizations committed to affordable housing and who have the capacity to administer long term housing projects. Agencies receiving funds should have the capacity to administer the project for the entire compliance period while enhancing fair housing. By doing so, the City increases the likelihood of maintaining the units as affordable housing after City and federal restrictions are released. 181 181 Regardless, all changes to administrative, zoning, or other public policies and practices should be preemptively evaluated through the lens of fair housing. This is also true as new policy continues to develop, including potential changes to the housing and zoning following the State’s disallowing the use of a rental permit cap. Strategy 3: Improve regional cooperation Regional cooperation includes networks or coalitions of organizations, people, and entities working together to plan for regional development. Cooperation in regional planning can help coordinate responses to identified fair housing issues that cross multiple sectors—including housing, education, transportation, and commercial and economic development—and multiple political and geographic boundaries. As such, encouraging regional cooperation can further fair housing not only for Iowa City, but the entire region. This was also mentioned as a need in many stakeholder meetings. While the City and surrounding jurisdictions cooperate through regional transportation planning and through the Fringe Area Agreement, there are still additional opportunities to better coordinate housing and fair housing planning on a regional level. Projecting development and demand for different types of housing and price points is one way to approach the issue. Doing so can start a d iscussion about how to facilitate housing choice in each of the communities. Communication between staff can also facilitate coordination between jurisdictions. Strategy 4: Improved Data Collection Another impediment is the need for increased data, analysis and reporting. While improving data collection and analysis does not directly overcome a barrier to fair housing choice, it will help identify potential barriers in the future. All of these can also be paired with equity mapping to identify areas of opportunity using factors relevant to fair housing choice. Currently, many of the City’s local housing programs do not require the same level of tracking and reporting regarding protected characteristics of beneficiaries as federal programs. As part of its annual monitoring of these projects, the City should begin tracking and reporting the race, ethnicity, and other protected characteristics of beneficiaries to allow finer levels of analysis and reporting regarding fair housing choice. This will also allow better measurement regarding the extent to which policy and practice changes are impacting outcomes and reducing disparities. In addition, the City should regularly monitor HMDA reports of financial i nstitutions and obtain information on the location of properties that are the subject of loan applications . HMDA data can be used to develop policies to act upon this information such as incentivizing banks with good performance records by only depositing public funds in banks that meet threshold scores. Similarly, location information can help the City guide lender education activities to promote fair housing. Finally, ICHA should regularly analyze its beneficiary and waitlist data to ensure its preferences do not have a disparate impact on those in protected classes and that it is serving the people most in need as determined by the City’s Consolidated Plan. As part of this, ICHA should periodically update an equity analysis to identify if any disparate impacts are identified. 2022 Iowa City Affordable H ousing ACTION PLAN 2022 Iowa City Affordable Housing Action Plan CITY OF IOWA CITY 28 AFFORDABLE HOUSING PRIORITIES/GOALS The City Council’s Strategic Plan objectives include fostering healthy neighborhoods and affordable housing throughout the City. The City strives to do this through: 1. Investing City and federal CDBG/HOME funds to create and/or preserve affordable homes, both rental and owner-occupied housing throughout the City; 2. Supporting our most vulnerable residents, especially those experiencing homelessness or at risk of homelessness, maintain safe, affordable housing; 3. Ensuring equitable growth for all Iowa City residents and minimizing displacement; and 4. Supporting innovation in housing and streamlining processes. 2022 AFFORDABLE HOUSING RECOMMENDATIONS The City has broad powers to support affordable housing through various requirements and funding mechanisms. The City is willing to pursue courses of action to support affordable housing, except when legally prohibited. For example, in the state of Iowa, cities cannot institute rent control. Cities are also preempted by state law from regulating the provisions in a lease between a landlord and a tenant. In 2016 the City of Iowa City adopted an ordinance to protect source of income. The measure prohibited landlords from rejecting housing applicants based solely on their use of housing vouchers or other rental subsidies. The purpose of the Iowa City Human Rights ordinance amendment was to reduce housing discrimination and give all tenants the same consideration for housing. In 2021 the state prohibited cities from passing or enforcing “source of income” ordinances. Any city who adopted a source of income protection may not enforce it after January 1, 2023. The City will continue to work with our various partners to support and encourage affordable housing with the mechanisms and funding sources available to municipalities in Iowa. The Committee’s recommendations for City Council consideration are broken down into three sections: Recommendations for existing policies and programs, recommendations for development regulations and recommendations for programs or policies based on household income. Existing Policies and Programs The Affordable Housing Steering Committee reviewed the City’s current policies and programs. Most programs were found to be effectively increasing or preserving the supply of affordable housing; 2022 Iowa City Affordable Housing Action Plan CITY OF IOWA CITY 29 however, six recommendations were made to either enhance or make the policy or program more effective. 1. Affordable Housing Location Model The model currently aims to distribute subsidized affordable housing more evenly throughout the community and avoid overconcentration in any one neighborhood. While the intent of the model is a worthy goal, the model can restrict supply for much needed affordable housing projects. The committee recommends shifting from a restrictive model to one that incentivizes or prioritizes affordable housing projects in all neighborhoods, especially those neighborhoods with a lack of affordable housing options but does not go so far as to restrict supply of potential locations. If the model is discontinued, it is recommended that there be close monitoring of changes in affordable housing locations within the community. Achieving mixed-income neighborhoods throughout the City should continue to be an overall goal. Recommendation: Discontinue Affordable Housing Location Model and consider incentives or prioritization policies that encourages affordable housing in all neighborhoods. 2. Housing and Community Development Commission (HCDC) Funding Allocation Process The Committee observed that the current funding process for housing projects does not involve detailed staff analysis of applications. Staff have years of professional experience and often understand the funding sources and regulatory environment much more comprehensively than volunteer commissioners. The Committee recommends that the funding process be restructured to ensure staff scoring recommendations are provided upfront to the HCDC. Their recommendations should be considered during the review process to ensure the City is supporting viable, federally compliant projects that meet the City’s priorities for the entire length of the required affordability period. Ultimately, the HCDC can still make alternate recommendations to the City Council but the process will be enhanced by inviting this input from the outset. Furthermore, policy should be developed upfront as to how funds will be allocated to further improve transparency in decision-making (e.g., full funding to top-rated applications, or applications will be pro- rated, or partial funding to applicants based on scores, etc.). The Commission’s final review and ranking should be based on objective and established criteria, priorities, and data. Discrepancies with staff scores should be included in the final recommendations to the City Council. 2022 Iowa City Affordable Housing Action Plan CITY OF IOWA CITY 30 Recommendation: 1) Require staff analysis and funding recommendations before HCDC review; and 2) Further define how funds will be allocated to improve transparency (e.g. full funding for top-rated applications, partial funding based on scores, etc.) 3. Affordable Housing Fund Distribution The overall funding should be increased with consideration given to the budget with a goal of a 3% increase each year. Allow for greater flexibility in targeted use of funds, for example: o Prioritize deeply affordable housing (0-30%) but do not restrict to only those at that income. o Include Low Income Housing Tax Credit (LIHTC) funding with the Housing Trust Fund of Johnson County (HTFJC) allocation. However, set as a preferred use but not restricted/required. If funding is awarded to a LIHTC project and the project does not get funding from the Iowa Finance Authority (IFA), allow HTFJC to withdraw the award and make those funds available for general applications rather than waiting for the next LIHTC cycle. Maintain Security Deposit Assistance and implement a Risk Mitigation Fund. Typically, Risk Mitigation Funds cover landlord losses, up to a certain value, but may also include a connection to resources such as tenant/landlord education, credit repair, etc. to increase rental opportunities for households who have difficulty finding a landlord who will accept them due to criminal history, bad credit, bad landlord references, and/or a prior eviction history. Increase marketing and communications of availability of the different funds. Periodically review (every 5 years as part of the Consolidated Plan for Housing, Jobs and Services for Low-Income Residents) the affordable housing fund distribution to ensure the set-asides produce/contribute to the desired policy outcomes. Prioritize partnerships with not-for-profit affordable housing developers to preserve affordable units as their mission is centric to preserving affordability. Recommendation: 1) Allocate funds to the Affordable Housing fund with a goal of a 3% annual increase; 2) Include the LIHTC reservation with the HTFJC allocation. If no LIHTC projects apply during the annual allocation or if an approved LIHTC project does not get IFA funding, allow the HTFJC to make those funds available for general applications; 3) Implement the Risk Mitigation Fund; and 4) Enact policy that prioritizes partnerships with not-for-profit affordable housing developers/organizations to preserve affordable housing units. 4. Support of Non-Profit Housing Provider Capacity 2022 Iowa City Affordable Housing Action Plan CITY OF IOWA CITY 31 Typically, developers receive a developer fee to build or rehabilitate housing projects. This fee is only received if a project is funded. Funds, including operational funds and developer fees, should be provided on a regular basis to non-profit affordable housing providers who build and/or rehabilitate residential housing as long-term investments to build the capacity of local providers. This could include technical assistance in various areas such as housing finance, market analysis, legal issues, property management, green and/or sustainable building practices and affordable housing design. Financial assistance for architectural and engineering expenses for the development of multi-family affordable development, outside of LIHTC projects, is needed to support the development of townhomes, small apartment buildings, and the rehabilitation of existing multi-family developments. The City should increase access by non-profit affordable housing developers to various funding opportunities to incorporate green or sustainable housing practices. Recommendation: Allow non-profit affordable housing developers who build or rehabilitate residential housing to apply for additional funds to support ongoing operations; and 2) Allow developers of affordable housing to apply for technical assistance needs from a variety of City programs, including but not limited to, the Affordable Housing Opportunity Fund and Climate Action grants. 5. Annexation Policy The current policy has only applied to one annexation and thus drawing conclusions is difficult. Staff and some committee members have concerns about the cost implications and viability of requiring permanent affordable housing or greater percentages and compliance periods. This is particularly a concern in a regional housing market where outlying communities that are experiencing robust growth do not have similar policies. Too stringent requirements could have an unintended impact of pushing development into other jurisdictions and thus forgoing any affordable housing requirements and constraining supply in Iowa City. The Committee does believe that permanent affordable housing achieved through dedication of lots to the City or a non-profit housing provider is a goal that should be vigorously pursued with future annexations. If needed, the City should consider contributing funding or exploring unique partnerships such as tax increment financing or tax abatement to achieve the goal of permanent affordable housing in new residential annexations. 2022 Iowa City Affordable Housing Action Plan CITY OF IOWA CITY 32 Recommendation: Encourage, but not mandate permanent affordable housing in new residential annexations. With future annexations explore partnerships and funding opportunities to secure permanent affordability when possible. 6. General Education Increase efforts to educate all tenants about tenant rights and responsibilities and how to address housing code problems, perceived discrimination, or other matters most effectively. Recommendation: Increase efforts to educate all tenants about tenant rights and responsibilities and how to address housing issues. Development Regulations Development regulation is an umbrella term for rules that govern land development. At the local level, zoning is the way the government controls the physical development of land and the kinds of uses to which each individual property may be put. This includes the use, size, height, and design of buildings, and historic preservation requirements. These regulations are contained in the Code of Ordinances of the City of Iowa City as laws adopted by the City’s Legislative body the Iowa City Council. The following are recommended changes to the current land-development regulations to increase the diversity and supply of housing throughout the City: 1. Increase the allowable number and/or type of dwelling units in zoning districts previously limited to only free-standing single-family dwellings. For example: In Single-Family zoning districts, expand by-right building allowances to permit attached single-family dwellings, such as duplexes and zero-lot line structures, in more locations. Allow accessory dwelling units in more circumstances and locations. To support student housing, consider ADU’s associated with rental housing (expand from owner-occupied). Increase the allowable number of bedrooms per dwelling (duplex and attached single- family). 2. Facilitate multi-family dwelling development. For example: Continue to look for opportunities to purchase land for future resale/development. 2022 Iowa City Affordable Housing Action Plan CITY OF IOWA CITY 33 Conduct a City-initiated rezoning to allow multi-family housing or mixed use in areas supported by the Comprehensive Plan and served by transit. Reduce the minimum amount of land needed to qualify for a planned overlay district/planned development. 3. Increase the allowable number of bedrooms per dwelling in multi-family dwellings outside of the University Impact Area. Various state and federal housing programs incentivize housing developments that include units with more than three bedrooms to accommodate large families. Allow larger bedroom sizes to accommodate local, state and federal funding parameters. 4. Create Form Based Code regulations for additional neighborhoods, focusing on growth areas first and then infill locations. Recommendation: 1) Increase the allowable number and/or type of dwelling unit in single family zoning districts by right in more locations. Examples include ADUs, duplexes and zero-lot line structures. 2) Increase the allowable number of bedrooms in duplex and zero-lot line structures in single family zoning districts; 3) Facilitate multi-family development by purchasing land to be developed; 4) Conduct a City initiated rezoning to allow multi-family housing or mixed use in areas supported by the Comprehensive Plan; 5) Allow multi-family units with more than three bedrooms when required to meet local, state or federal affordable housing funding parameters such as the LIHTC program; 6) Encourage infill development flexibility by reducing the minimum amount to land eligible to apply for a planned overlay zoning; and 7) Create form based code regulations for additional neighborhoods, focusing on growth areas first and then infill locations. Programs and Policies Based on Household Income If additional funding is made available, the priority should be on housing for those with the lowest income. In recognizing housing is needed to support a healthy housing market and there needs to be housing options for all incomes and ages throughout the City, recommendations are made for housing for households up to 100% of area median income. 0-30% Median Income Recommendations 1. Support a Landlord Risk Mitigation Fund for hard to house tenants. Landlord risk mitigation programs are intended to add protection to landlords willing to rent to someone with limited income, a poor rental history, or a criminal history. The funds can cover items 2022 Iowa City Affordable Housing Action Plan CITY OF IOWA CITY 34 such as excessive damages to the rental unit, lost rent, or legal fees beyond the security deposit. The Johnson County Local Homeless Coordinating Board plans to develop a program working in collaboration with the City. These programs are most effective at a regional level for expanded housing options and landlord participation. Recommendation: Seek proposals for a local landlord risk mitigation fund for hard to house tenants and secure funding to operationalize it annually. Encourage proposals that seek partnerships with regional entities (Johnson County, Coralville, and North Liberty) to expand housing options and landlord participation. 2. Support non-profit housing providers develop and maintain permanent supportive housing/Housing First models. The Housing First model is a homeless assistance approach that prioritizes providing permanent housing to people experiencing chronic homelessness. The subsidized housing is provided with the ongoing option to participate in supportive services but does not place conditions on the housing. Permanent supportive housing is permanent housing in which housing assistance and supportive services are provided to assist households with at least one member with a disability in achieving housing stability. The City supported Shelter House in the development of Cross Park Place, a Housing First project, that opened in January of 2019. The project houses 24 one-bedroom apartments with on-site offices and an exam room for case managers and partners with health and behavioral health clinicians. The City converted 24 tenant based rental vouchers to project-based vouchers so that those renting at Cross Park Place have a voucher to assist with rent. Due to the success of Cross Park Place, plans are underway for the second Housing First project, “The 501 Project,” for persons facing chronic homelessness. Construction started in 2021. The building will have 36 apartments with a clinic for partnering health clinicians, computer workstations, laundry facilities and a multi-purpose room for tenants. Like Cross Park Place, housing choice vouchers will be converted to project-based vouchers to assist tenants pay rent. The City should continue to provide support for existing permanent supportive/Housing First projects as well as additional efforts to produce additional housing through acquisition, new construction, or rehabilitation. The City should expand efforts to include permanent supportive/Housing first projects to families experiencing chronic homelessness. 2022 Iowa City Affordable Housing Action Plan CITY OF IOWA CITY 35 Recommendation: Continue to support existing permanent supportive/Housing First projects, expanding into projects for families experiencing chronic homelessness. 3. Support major investments. Support non-profit housing providers to significantly increase their supply of permanent supportive housing when granted an opportunity, either through acquisition, new construction or by assisting through creative approaches such as a master lease between non-profit providers and landlords. Under a master lease scenario, a non-profit service provider enters a lease with one or more landlords to secure housing for their participants. The participants in the program pay rent to the non-profit service provider based on the requirements of the program. Consider converting housing choice vouchers to project-based vouchers for projects assisting those experiencing or with a history of homelessness. The City is currently collaborating with the Housing Trust Fund of Johnson County for the allocation of ARPA funds. Funds will be dedicated to support larger investments in affordable housing for acquisition, rehabilitation, or new construction. The goal for the projects selected will be permanent affordability through deed restrictions, land leases or ownership by non-profit entities whose core mission is to provide affordable housing. Recommendation: Allocate ARPA funds and future City funds to support larger investments in affordable housing assisting those up to 60% median income, prioritizing permanent affordability and households with lower incomes. 4. Maintain affordable housing through rehabilitation. Efforts should include grant funds for those improvements that improve energy efficiency and lower tenant utility costs. In all housing, support aging in place initiatives that supports the ability to live in one’s own home safely, independently, and comfortably, regardless of age or ability level. Support safety improvements and emergency repairs to homes, including mobile/manufactured homes. Recommendation: Increase funding for those improvements that improve energy efficiency, lower utility costs, supports aging in place initiatives and improves home safety. Provide grants where feasible. 31-60% Median Income Recommendations 1. Support security deposit assistance. 2022 Iowa City Affordable Housing Action Plan CITY OF IOWA CITY 36 Provide additional funds to support security deposit assistance that allows up to 2 months for those with poor rental history to get housed. The City allocated $70,000 to security deposit assistance in FY22. The amount has been increased twice due to demand to a total of $148,000. Previously, the program allowed up to 2 months of assistance, but due to limited funds available for the remainder of the fiscal year, assistance was limited to $1,000 in a twelve-month period with a preference for tenants referred by Shelter House and the Domestic Violence Intervention Program. Recommendation: Provide additional funds to support security deposit assistance. 2. Support and Expand Eviction Prevention Programs. Due to the pandemic, housing instability has increased dramatically. Evictions are a destabilizing event that can send a family into a cycle of financial and emotional upheaval and affect their current and future prospect for residential stability. The City has allocated over $850,000 to our community partners to maintain housing for those impacted by the pandemic for eviction prevention and eviction diversion. It is anticipated that additional funds through the American Rescue Plan Act (ARPA) will be dedicated for this purpose. Efforts should expand community outreach, especially to landlords, to make more tenants and landlords aware of eviction diversion and prevention programs. Increase efforts to intervene earlier before evictions are necessary with opportunities to mediate, work out payment arrangements and file for rental assistance programs. Recommendation: Support and expand eviction prevention programs. 3. Energy Efficiency Improvements Provide grant funding to complete energy efficiency improvements that reduce a low-income tenant or homeowner’s monthly utility cost. Increase partnerships with non-profit housing providers, including public housing, to complete energy efficiency improvements. Recommendation: Provide additional grant funding for energy efficiency improvements that lower utility costs. 2022 Iowa City Affordable Housing Action Plan CITY OF IOWA CITY 37 4. Downpayment Assistance Support financial assistance to purchase an affordable home. Ensure affordable financing to owner, such as 30-year fixed loans with area lenders. Assistance also includes credit and financial counseling to potential homebuyers or those wanting homeownership. Recommendation: Support downpayment assistance, including credit and financial counseling to potential homebuyers. 61-100% Median Income Recommendations 1. Downpayment Assistance Support financial assistance to purchase an affordable home. Ensure affordable financing to owner, such as 30-year fixed loans with area lenders. Assistance also includes credit and financial counseling to potential homebuyers or those wanting homeownership. Recommendation: Support downpayment assistance, including credit and financial counseling to potential homebuyers. 2. Energy Efficiency Improvements Provide grant funding to complete energy efficiency improvements that reduce a low-income tenant or homeowner’s monthly utility cost. Recommendation: Provide additional grant funding for energy efficiency improvements. 2022 Iowa City Affordable Housing Action Plan CITY OF IOWA CITY 38 Summary Tables Recommendations and Actions Required for Existing Policies and Programs Recommendation Type of Action Required Policy Change Increased Funding Education Discontinue Affordable Housing Location Model and consider incentives or prioritization policies that encourages affordable housing in all neighborhoods. X Require staff analysis and funding recommendations of CDBG/HOME housing applications before HCDC review. X Further define how CDBG/HOME funds will be allocated to improve transparency (e.g. full funding for top-rated applications, partial funding based on scores, etc.). X Allocate funds to the Affordable Housing Fund with a goal of a 3% annual increase. X Affordable Housing Fund: Include the LIHTC reservation with the HTFJC allocation. If no LIHTC projects apply during the annual allocation or if an approved LIHTC project does not get IFA funding, allow the HTFJC to make those funds available for general applications. X Implement the Risk Mitigation Fund. X X Enact policy that prioritizes partnerships with not-for-profit affordable housing developers/organizations to preserve affordable housing units in all housing programs. X Allow non-profit affordable housing developers to apply for additional funds to support ongoing operations (Opportunity Fund, HOME CHDO funds, etc.). X X Allow developers of affordable housing to apply for technical assistance needs from a variety of city programs, including but not limited to, the Affordable Housing Opportunity Fund and Climate Action grants. X X Encourage, but not mandate permanent affordable housing in new residential annexations. With future annexations explore partnerships and funding opportunities to secure permanent affordability when possible. X X Increase efforts to educate all tenants about tenant rights and responsibilities and how to address housing issues. X 2022 Iowa City Affordable Housing Action Plan CITY OF IOWA CITY 39 Recommendations and Actions Required for Development Regulations Applicable to Both Single- and Multi-Family Recommendation Type of Action Required Policy Change Increased Funding Education Encourage infill development flexibility by reducing the minimum amount of land eligible to apply for a planned overlay zoning. X Create form-based code regulations for additional neighborhoods, focusing on growth areas first and then infill locations. X Recommendations and Required Actions for Development Regulations Applicable to Single-Family Recommendation Type of Action Required Policy Change Increased Funding Education Allow by right more types of dwelling units in single family zoning districts such as duplexes and zero-lot line structures in more locations. (Note: Comprehensive Plan amendment may be quired. Possible consultant.) X X Increase the allowable number of bedrooms in duplex and zero- lot line structures in single family zoning districts. X X Allow accessory dwelling units (ADUs) under more circumstances and in more locations. X X Recommendations and Required Actions for Development Regulations Applicable to Multi-Family Recommendation Type of Action Required Policy Change Increased Funding Education Facilitate multi-family development by purchasing land to be developed. X X Conduct a City initiated rezoning to allow multi-family housing or mixed use in areas supported by the Comprehensive Plan. (Note: Comprehensive Plan amendment may be quired. Possible consultant.) X X Allow multi-family dwelling units with more than three bedrooms when required to meet local, state, or federal affordable housing funding parameters such as the LIHTC program. X 2022 Iowa City Affordable Housing Action Plan CITY OF IOWA CITY 40 If additional funds are allocated/reserved for affordable housing, recommendations based on household income are below. 0-30% Median Income Recommendations Seek proposals for a local landlord risk mitigation fund for hard to house tenants and secure funding to operationalize it annually. Encourage proposals that seek partnerships with regional entities Johnson County, Coralville, and North Liberty) to expand housing options and landlord participation. Continue to support existing permanent supportive/Housing First projects, expanding into projects for families experiencing chronic homelessness. Allocate ARPA funds and future City funds to support larger investments in affordable housing assisting those up to 60% median income, prioritizing permanent affordability and households with lower incomes. Increase funding for those improvements that improve energy efficiency, lower utility costs, supports aging in place initiatives and improves home safety. Provide grants where feasible. 31-60% Median Income Recommendations Provide additional funds to support security deposit assistance. Support and expand eviction prevention programs. Provide additional grant funding for energy efficiency improvements that lower utility costs. Support downpayment assistance, including credit and financial counseling to potential homebuyers. 61-100% Median Income Recommendations Provide additional grant funding for energy efficiency improvements that lower utility costs. Support downpayment assistance, including credit and financial counseling to potential homebuyers. Strategic Plan FISCAL YEARS 2023-2028 Adopted December 2022 9 IMPACT AREAS Neighborhoods & Housing FUTURE VISION Iowa City is a collection of authentic, vibrant neighborhoods and districts. By way of internal and external streets and trails, each community member has safe, easy access to everyday facilities and services within a 15-minute walk or bike ride. Neighborhoods are compact and socially diverse, with a variety of housing choices and at least one place serving as its center. Permanent affordable housing choices are dispersed throughout the community. New higher density development blends with existing buildings and shapes a comfortable, human-scale pedestrian environment. Public spaces are inviting and active with people recreating and socializing in parks, natural areas, and tree-lined streetscapes, all enhanced with public art and placemaking initiatives. STRATEGIES To advance the Vision the City will pursue the following strategies: Update City Comprehensive Plan and Zoning Code to encourage compact neighborhoods with diverse housing types and land uses. Partner in projects that serve as models for desired future development. Create inviting and active outdoor spaces with unique and engaging recreation offerings. Address the unique needs of vulnerable populations and low-to-moderate income neighborhoods. 10 ACTION PLAN Action Champion Target Date Explore legal steps to discourage or prevent bad faith and predatory property investors. City Attorney FY23-24 Act on building regulation recommendations outlined in the Accelerating Iowa City’s Climate Actions Report; including TIF energy efficiency incentives, energy standards for height and density bonuses, and a climate action building permit rebate program. Climate Action & Outreach and Neighborhood & Development Services FY23-25 Revamp the neighborhood PIN grant program and evaluate discretionary funding for district/neighborhood grassroots projects. Communications FY23-25 Advance prioritized recommendations in the 2022 Affordable Housing Action Plan. Work with partners to undertake significant-scale affordable housing efforts. Neighborhood & Development Services FY23-28 Seek out and approve residential TIF applications for infrastructure when the project provides community benefit such as permanent affordable housing, expansive public open space, or advancement toward stated climate action goals. Consider a standard application of residential TIF for all new annexations to meet permanent affordable housing goals. City Manager’s Office FY24-25 Initiate a Comprehensive Plan update and subsequent Zoning Code review to more broadly incorporate form-based principles with emphasis on growth areas first and infill areas next, expanded missing middle housing allowances, minimum density requirements, and streamlined approval processes Neighborhood & Development Services FY24-28 Explore pilot housing projects utilizing tiny homes, 3D printed homes, prefabricated or manufactured homes, net-zero homes, or other innovative options. Neighborhood & Development Services FY24-28 Bolster financial support for homeless services and evaluate shifting towards shelter as service model. City Manager’s Office FY25-28 Expand the South District Homeownership Program to other targeted neighborhoods and consider allowing relocation assistance to expedite completion. Neighborhood & Development Services FY26-28 Provide all residents with public open space within a 15-minute walk or bike ride by strategically executing agreements with local schools or other partners. Parks and Recreation FY26-28 11 Mobility FUTURE VISION Community members of all socioeconomic statuses easily, safely, and comfortably travel using multiple modes of transportation year-round. Commuters choose to walk, bike, or bus at least half of the time, and an increasing number of trips are fueled by clean energy. Regional collaboration has created a strong multi-modal network that links Iowa City to neighboring communities. Highly traveled corridors have separated trails or comfortable, safe lanes for bicyclists. When prioritizing, the needs of pedestrians, bicyclists, transit riders, and other emerging forms of transportation are weighted greater than those of automobile drivers and adjacent property owners. STRATEGIES To advance the Vision the City will pursue the following strategies: Expand the access and convenience of environmentally friendly and regionally connected public transit. Design and maintain complete streets that are comfortable and safe for all users. Grow and prioritize bike and pedestrian accommodations. 12 ACTION PLAN Action Champion Target Date Fully evaluate the feasibility and funding sources needed for a zero-fare transit system. Transportation Services and Finance FY23-24 Develop a vision statement for a singular regional transit system with metro Johnson County entities and obtain initial commitments to study a regional system from each entity’s elected officials. City Council FY23-25 Install additional permanent charging stations for vehicles, bicycles, and electronic devices. Climate Action Outreach FY23-28 Identify additional opportunities for road diets, sidewalk infill, curb cut enhancement, and bike lane installation with a goal of at least two such projects each construction season. Public Works FY23-28 Explore opportunities to utilize the CRANDIC right-of-way for passenger rail, bus rapid transit, or pedestrian usage. City Council FY23-28 Evaluate with the State of Iowa reverting Dodge and Governor to 2-way streets Public Works FY23-28 Secure federal funding for a relocated transit building that can accommodate future growth in service and electrification of the fleet. Transportation and City Manager’s Office FY24-28 Consider adding or retrofitting bike pathways that are separated from streets or protected utilizing flexible bollards. Public Works FY24-28 Expand the fleet of electric buses or other low/no emission-technology vehicles each time a diesel bus is due for replacement and seek grants that can expedite the conversion. Climate Action Outreach FY25-28 Consider an on-demand or subsidized voucher system for times and locations in which no fixed route service is available. Transportation Services FY25-28 Expand snow clearing operations at sidewalk corners in high priority pedestrian areas, bus stops, and bike lanes. Public Works and Parks & Recreation FY25-28 Initiate and promote vehicle and bike-share/scooter programs. Transportation Services FY26-28 Evaluate with the State of Iowa the possibility of a Burlington Street Road Diet utilizing flex zones in non-peak hours. Public Works FY26-28 13 Economy FUTURE VISION Iowa City is the preferred location for businesses at all stages of development. Start-up businesses flourish and take advantage of mentoring and other resources. The vibrant arts and culture community attracts both visitors and new residents. Technologies developed through the University of Iowa are transferred to the local business sector, creating business diversity and new value within the community. Businesses pay living wages and support skill development for their employees. Support services - such as child-care and language assistance - are readily available for all, which means every person who wishes to participate in the local economy can do so. Community members support each other by spending their money locally. STRATEGIES To advance the Vision the City will pursue the following strategies: Reinforce Iowa City as a premier community to locate and grow a business. Ensure appropriate infrastructure is in place for future business growth and development. Cultivate a strong entrepreneurial and small businesses ecosystem with a focus on creating new pathways to success for systemically marginalized populations. Build Iowa City’s image as the Greatest Small City for the Arts. Strengthen the Iowa River’s role as a signature community amenity and tourism generator. 14 ACTION PLAN Action Champion Target Date Enhance access to affordable childcare for all populations through innovative partnerships with higher education, non-profits, and the business community. City Manager’s Office and Neighborhood & Development Services FY23-25 Utilizing American Rescue Act Funds, execute on agreeable recommendations in the Inclusive Economic Development Plan with a particular focus on actions that build long-term support and wealth-building opportunities for systemically marginalized populations. City Manager’s Office and Economic Development FY23-25 Partner with Kirkwood Community College, Iowa City Community School District, Iowa Labor Center, local trades, and other stakeholders to provide meaningful career development opportunities, pre-apprenticeship, and apprentice programs. Economic Development and Neighborhood & Development Services FY23-28 Increase small business technical assistance to aid in the creation, success, and growth of home-grown businesses. Economic Development FY24-28 Create flexible incentives to support the top goals of Iowa City’s Self-Supporting Municipal Improvement Districts and other commercial nodes, including attaining a desired business mix that serves the surrounding neighborhood. Economic Development and City Manager’s Office FY25-28 Develop targeted marketing to promote Iowa City as a unique and attractive place to do business. City Manager’s Office FY26-28 Develop a riverfront master plan in cooperation with the University of Iowa, Think Iowa City, and other stakeholders. City Manager’s Office FY26-28 15 Safety & Well-being FUTURE VISION Our City supports the mental and physical well-being of our community members. Public safety response, whether from the City or a non-profit partner, is nuanced depending on the specific needs of the situation. Community members receive emergency response services promptly and welcome responders as problem-solvers. Inviting spaces for social interaction, exercise, and regeneration are equitably located throughout the community and are lively with activity and use. New and long-time community members alike, especially marginalized groups, easily build networks and establish roots within our community. Community members have safe, healthy indoor spaces and are well-prepared for climate-related changes. STRATEGIES To advance the Vision the City will pursue the following strategies: Implement and expand innovative public safety models and facilities to improve outcomes and relationships within the community. Partner with non-profits to address the most emergent and foundational community safety and well-being needs. Build community by fostering social connections and developing safe, accessible public spaces for gathering. 16 ACTION PLAN Action Champion Target Date Work collaboratively with Johnson County and other stakeholders to launch a community violence intervention effort in close cooperation with local law enforcement. City Council and Police Department FY23-24 Leveraging American Rescue Plan Act funds, build capacity in local non-profits that will help ensure they are able to meet future community demands. Neighborhood & Development Services FY23-26 Build on the relationship with the University of Iowa College of Nursing to increase participation in the Healthy Homes program. Neighborhood & Development Services FY23-26 Expand the Mental Health Liaison program with CommUnity Mobile Crisis with a goal of 24-hour coverage by the end of FY28. Police Department FY23-28 Actively promote 988 throughout the year and ensure that CommUnity Mobile Crisis has resources to meet community demands. City Manager’s Office and Communications FY23-28 Continue critical exterior renovations to the Senior Center and continue progress on Senior Center Facility Master Plan recommendations. Senior Center FY23-28 Integrate CommUnity Mobile Crisis into the 911 dispatch protocols. Police Department FY24-26 Consider and, where feasible, implement alternatives to routine non-emergent traffic stops. Police Department FY24-26 Expand neighborhood-based programs such as mobile community social/recreation resources (fun patrol), nests or micro-hubs for kids/teens. Parks & Recreation FY26-28 17 RESOURCES Facilities, Equipment and Technology FUTURE VISION Municipal facilities are modernized and designed for operational efficiency, capacity for growth, employee safety and health, resilience, alignment with Climate Action goals, and civic pride. Funding of equipment and facility replacement funds and partnerships with other entities result in joint facilities, technology, and equipment that improve access and services. City staff are encouraged to be entrepreneurial in their approach and actively seek to innovative and streamline processes while improving service levels to the community. STRATEGIES To advance the Vision the City will pursue the following strategies: Invest in the next generation of public facilities and equipment to create immediate operational efficiencies, boost workplace safety, health, and morale, and improve cross-department collaboration. Promote high-performance governance leveraging technology, partnerships, and innovation. 18 ACTION PLAN Action Champion Target Date Outline a municipal-wide facilities plan and initiate relevant action steps to keep projects moving forward. City Manager’s Office FY23-24 Complete a City Hall and Public Safety Headquarters space needs study and develop a plan for next steps toward implementation. City Manager’s Office FY23-24 Implement the asset management system and expand use for facility maintenance and management. Public Works FY23-25 Develop and implement an electric vehicle transition plan. Public Works and Climate Action & Outreach FY23-25 Pursue grant opportunities, bolster the Facility Reserve Fund, and explore public/private partnerships to facilitate completion of key facility projects. City Manager’s Office and Finance FY23-28 Design replacement and renovated facilities to ensure alignment with Climate Action goals and create safer and healthier working environments for public employees. City Manager’s Office FY24-28 Improve public transparency through a coordinated and centralized open data platform. City Manager’s Office FY26-28 Consider resourcing a Smart City initiative that prioritizes data-driven decision- making through technology adaptation and data analysis. City Manager’s Office FY26-28 19 People FUTURE VISION The City is an employer of choice in the region and viewed as a rewarding, long-term career choice. Valuable benefits, flexible schedules, energizing workspaces, remote and hybrid work arrangements, and professional development and advancement opportunities improve productivity, service to the public, and morale. Employees enter an inclusive, fun, and engaging environment each workday. City staff, board and commission members, and volunteers are demographically representative of the City population at-large and every employee is continuously building cultural awareness. Leadership and elected officials ensure sufficient staff levels to maintain baseline services, weather vacancies or emergencies, protect against employee burnout, and add capacity to act on special assignments and strategic, long-term initiatives. STRATEGIES To advance the Vision the City will pursue the following strategies: Establish the City of Iowa City as an employer of choice in the region with a pay plan, benefits package, and flexible work options that attract and retain high-quality and motivated public service employees. Carry out a multi-dimensional staff engagement initiative to ensure every City employee feels welcome, informed, involved, and engaged at work. Build a diverse talent pipeline. 20 ACTION PLAN Action Champion Target Date Complete and execute upon the results of an organization-wide classification and compensation study. As part of study, review all job requirements to ensure applicability and eliminate unnecessary barriers to employment, including testing, residency requirements, education, and certification or license requirements. Human Resources FY23-25 Monitor implementation of new telecommuting and flexible work schedule policies to ensure public service standards are fully met and desired employee work arrangement flexibility is pursued where possible. City Manager FY23-25 Balance investment in new annual initiatives with staffing levels to ensure core municipal service levels are maintained and reduce instances of burnout. City Manager’s Office and City Council FY23-28 Elevate new and existing intra-organizational communication strategies to bolster information sharing and improve productivity and connectiveness across the organization. City Manager’s Office FY23-25 Create more opportunities to promote inter-departmental relationships, collaboration, and problem-solving. City Manager’s Office FY23-25 Upskill City staff in implicit bias, cultural awareness, and inclusion. Equity & Human Rights FY23-28 Develop recruitment network with local minority institutions. City Manager’s Office FY23-28 Take steps to promote more diverse representation on Boards, Commissions, and Committees. City Council FY23-28 Ensure every single employee knows the City’s strategic vision and can connect their role accordingly. City Manager’s Office FY23-28 Strengthen volunteer engagement, management, and appreciation efforts. City Council and City Manager’s Office FY23-28 Implement increasingly relevant organization-wide training opportunities such as conflict resolution and de-escalation training. City Manager’s Office FY24-28 Conduct comprehensive benefits review and implement changes based upon best practices and modern expectations, exploring benefits such as paid volunteer time, wellness offerings, and flexible stipends for challenges such as childcare, transportation, higher education and more. City Manager’s Office FY25-28 Launch targeted apprenticeship program(s) in partnership with local education and workforce institutions. City Manager’s Office FY26-28 21 Financial FUTURE VISION City residents believe property taxes and utility fees are fair and commensurate to service levels, and do not experience erratic changes in rates and fees. The City maintains sufficient financial resources to proactively maintain and replace assets, carry out strategic plan initiatives, and be insulated from unanticipated financial stressors. Partnerships, grant funding, and other creative financing mechanisms are routinely part of program and project financing structure. The City maintains a AAA bond rating, resulting in lower borrowing costs for residents and businesses. STRATEGIES To advance the Vision the City will pursue the following strategies: Grow the tax base, consider alternative revenue sources, and leverage outside funding to maintain core services and pursue community priorities while maintaining equitable property tax rates. Exercise fiscal responsibility by maintaining and growing assigned and emergency reserve funds and prudent debt management. 22 ACTION PLAN Action Champion Target Date Ensure Enterprise Funds are well supported through incremental rate and fee increases and do not become reliant on large rate spikes, property taxes, or unplanned debt issuance. Finance FY23-28 Coordinate with Iowa League of Cities, Metro Coalition, and the City’s contracted state lobbyist to oppose unfunded state mandates and detrimental tax reforms. City Manager’s Office FY23-28 Maintain the City’s AAA bond rating. Finance FY23-28 Increase the Emergency Fund balance by an annual target of 5%. Finance FY23-28 Significantly bolster the Facility Reserve Fund and develop an implementation plan for use of funds that minimizes large debt issuances. Finance FY23-28 Create a centralized grant management initiative that will focus on securing additional private, state, and federal funding opportunities, while ensuring proper oversight and compliance. City Manager’s Office FY24-28 Develop and maintain cost recovery guidelines for programs and services that balance fiscal responsibility and equity. City Manager’s Office FY26-28 Consider financial incentives and land use policies that aim to grow and diversify the tax base (commercial, industrial, and residential). City Manager’s Office FY26-28 Consider alternative revenue sources such as a Local Option Sales Tax that can help achieve strategic plan goals, fund infrastructure and facility needs, and reduce reliance on property tax. City Manager’s Office and City Council FY26-28 FROM: Housing Action Team of Johnson County Livable Community for Successful Aging Policy Board TO: Cities in Johnson County and Johnson County SUBJECT: Recommendations for Code/Ordinance for Accessory Dwelling Units (ADUs) DATE: December 21, 2022 The Housing Action Team believes that there are many benefits associated with the creation of legal accessory dwelling units on lots in single family zones and in other districts. These include: 1. Increasing the supply of a more affordable type of housing n ot requiring government subsidies; 2. Helping older homeowners, single parents, young home buyers, and renters seeking a wider range of homes, prices, rents and locations; 3. By increasing housing diversity and supply, provide opportunities to reduce the segrega tion of people by race, ethnicity and income that resulted from decades of exclusionary zoning; 4. Providing homeowners with extra income to help meet rising home ownership costs; 5. Providing a convenient living arrangement for family members or other persons to provide care and support for someone in a semi-independent living arrangement while remaining in their community; 6. Providing an opportunity for increased security, home care, and companionship for older and other homeowners; 7. Reducing burdens on taxpayers while enhancing the local property tax base by providing a cost-effective means of accommodating development without the cost of building, operating and maintaining new infrastructure; 8. Promoting more compact urban and suburban growth, a pattern which reduces the loss of farm and forest lands, natures areas and resources, while reducing the distances people must drive and thereby reducing pollution that contributes to climate instability; and 9. Enhancing job opportunities for individuals by providing housing c loser to employment centers and public transportation. Some cities in Johnson County already have code for ADUs (Iowa City and Solon). Johnson County has code that covers the unincorporated areas of the County. Oxford utilizes the Johnson County code. Swisher, Shueyville, Hills and North Liberty do not have code for ADUs. At present, Coralville, Lone Tree and Tiffin do not allow ADUs. The codes that do exist, vary among jurisdictions. The Housing Action Team would like to provide our recommendations that minimize lengthy application processes, high fees and harsh regulations that will prevent the development of ADUs or encourage illegal ADUs. Our recommendation or specific recommended language for each policy question is underlined and then followed by a rationale, if deemed necessary. Recommendations for the Elements of an ADU Code/Ordinance A. Definition- Accessory Dwelling Unit (ADU) means a residential living unit on the same parcel as a single-family dwelling or a parcel of which a single-family dwelling is present or may be constructed, that provides complete independent living facilities for one or more persons. It may take various forms: a detached unit, a unit that is part of an accessory structure, such as a detached garage, or a unit that is part of an expanded or remodeled dwelling. [Rationale- Two common circumstances in which an ADU might be built before the primary residence are (1) when a homeowner wishes to stage construction expenses and living arrangements; and (2) when the homeowner owns an adjacent legal lot (typically used as a side or backyard) and would prefer to site an ADU there rather than on the lot with the primary residence.] B. Authorization of ADUs by Zoning District*- Accessory dwelling units are allowed in all zoning districts which allow residential use, including mixed-use zones, townhouse zones and single-family zones, subject to the requirements of the ordinance. C. Number of ADUs Allowed per Lot in Single-Family Zones- Any lot with, or zoned for, a principal single-family dwelling unit, may have up to two accessory dwelling units. [Rationale- There are many ways to accommodate more than one ADU that are sensitive to concerns about neighbor appearance. For example, two internal ADUs can be accommodated by remodeling a large home, without increasing height or bulk. An internal unit can be allowed along with an ADU over an attached garage, without increasing the area of the lot occupied by structures.] D. Minimum Lot Size in Single-Family and Townhouse Zones- Accessory dwelling units may be created on any lot that meets the minimum lot size required for a single -family dwelling or townhouses. Attached and internal accessory dwelling units may be built on any lot with a single-family dwelling or townhouse that is nonconforming solely because the lot is smaller than the minimum size, provided the accessory dwelling units would not increase the nonconformity of the residential use with respect to building height, bulk or lot coverage. [Rationale- As a policy matter, it should not be necessary to establish a separate qualifying lot size for ADUs if the purpose is to assure the retention of landscaping and privacy between homes, because the setback and lot coverage standards can achieve those objectives.] E. Minimum / Maximum Size Area: The maximum size of an accessory dwelling unit may be no more than the footprint of the primary structure or 1,000 square feet, whichever is less . [Rationale- We recommend eliminating minimum size since the basic requirements for a living space (kitchen, bathroom, living/sleeping space) and the housing market will establish a minimum size. For situations in which the existing residence is very small, local governments might consider authorizing ADUs up to 80 0 square feet when the primary dwelling is smaller than 800 feet.] F. Types of Structures- A manufactured or modular dwelling unit may be used as an accessory dwelling unit in any zone in which dwelling units are permitted . [Rationale- In recent years, many off-site manufactured and modular ADUs are being produced; old conceptions of what constitutes a manufactured or modular home are outdated. This language maximizes the opportunities for ADUs by allowing any type of structure to be an ADU if that structure is allowed as a principal unit in the zoning district.] G. Lot Coverage Limits- An accessory dwelling unit (detached, attached, or built by expanding the footprint of an existing dwelling) on a lot of 4,000 square feet or larger shall not occupy more than 15% of the total lot area. For single family lots of less than 4,000 square feet, the combined lot coverage of the primary dwelling and the accessory dwelling shall not exceed 60%. Accessory dwelling units built within the footprint of existing, legal, acc essory structures are considered not to have changed existing lot coverage . [Rationale- Lot coverage allowances and limits intersect with setback requirements, floor-area ratio limits and height limits. If detached or attached ADUs are significantly constr ained by a lot coverage limit, then the possibility of having a two-story ADU may determine whether the investment in an ADU will generate a sufficient return to justify its construction.] H. ADU Setbacks- 1. A setback of no more than four feet from the side and rear lot lines shall be required for an accessory dwelling unit that is not converted from an existing structure or a new structure constructed in the same location and with the same dimensions as an existing structure. 2. No setback shall be required for an existing garage living area or accessory structure or a structure constructed in the same location and with the same dimensions as an existing structure that is converted to an accessory dwelling unit or to a portion of an accessory dwelling unit; and 3. A detached accessory dwelling unit is not permitted on the front half of a lot, except when located a minimum of 30 feet from the front line or it falls within the provision of subsection 2. I. ADU Height Limit- The maximum height of an accessory dwelling unit is 25 feet or the height of the primary residence, based on the highest point of its roof compared with the lowest point of ground level at the foundation, whichever is less. J. Architectural Consistency and Design Review- We recommend against establishing separate architectural or design standards for ADUs. [Rationale- Highly discretionary standards based on neighborhood "character” or “quality” can be serious obstacles to the construction of ADUs. Vague standards hamper homeowners and decision-makers alike. They can become an avenue for channeling neighborhood objections to ADUs in general. In some cases, the prescriptions for particular designs and materials can also add considerably to the cost of an ADU. A better approach is to reduce key design elements to a set of objective standards governing roof pitches, window orientation and siding. In some cases, design standards should only apply in certain districts or when the ADU is larger than a specified height or taller than one story.] K. Orientation of Entrance- Regulations governing the location, type and number of entrances into primary dwellings apply to accessory dwelling units. [Rationale- Not allowing an ADU entrance on the same side of the house as the primary dwelling can compromise the design and increase the cost of an ADU, substituting a more awkward and expensive entrance. Following the general principal of treating ADUs like the primary dwelling, the authorization and location of access doors and stairs for detached and attached ADUs should be the same as for primary residences.] L. ADU Screening, Landscaping and Orientation- We do not have a specific recommendation on this subject because a privacy regulation that is not applied to primary dwellings should not be applied to ADUs. ADU regulations addressing privacy as a separate subject seem to be rare. M. Parking Requirements- No additional off-street parking is required for construction of an ADU. If the ADU removes one of the existing off-street parking spaces it must be replaced on site if required by the underlying zoning. In lieu of an on-site parking space, an additional on-street parking space may be substituted if there’s already sufficient curb area available along the frontage for a parking space or by removing the parking space access ra mp and reinstalling the curb. [Rationale- Requiring an off-street parking space for each ADU is a serious inhibition to the construction of ADUs for two reasons. First, the cost of creating off - street parking spaces. Second, the lot size, location of the p rimary residence and topography may make the creation of the space impossible.] N. Short-Term Rentals- We recommend that jurisdictions do not adopt a limitation on short- term rentals unless rental regulations or prohibitions exist for all housing in the jurisdiction or zone. [Rationale- Many ordinances already have such limitations or prohibitions on the use of homes as transient lodging in their land use regulations, and those could be extended to ADUs.] O. Separate Sale of ADUs- We do not have a specific recommendation regarding this subject since most ADU ordinances are silent on the separate sale of the units as condominiums . We leave this policy question to the discretion of local jurisdictions. P. Owner Occupancy (Residency) Standards- There should be no requirement that the owner live on the same property (whether in the primary dwelling or the ADU) if there is no owner occupancy requirement for primary residences. [Rationale- The practical impact of the occupancy requirement is to inhibit construction of most ADUs. This requirement gives pause to homeowners or institutions financing home purchases because of the limits they place on successive owners who will not be able to rent out or lease their main house, which might be necessary as a result of a divorce, job transfer or death. It can also make financial institutions reluctant to provide financing for construction of an ADU and because it acts as a restriction on a mortgage lender’s security interest in the property.] Standards and Conditions Not Recommended for Application to ADUs The following standards and conditions are not recommended for inclusion in ADU ordinances: • Density limits on ADUs in a zone or district • Age of principal dwelling • Size of principal dwelling • Tenure of current owner • Limits on persons who can live in ADUs (age, relationship, disability) • Annual renewal and monitoring of permits for ADUs *Note on Historic Districts: Even historic districts can accommodate ADUs. Denver, Colorado and Pasadena, California provide useful examples. A city may require a simplified pre-application process utilizing a Design Review Committee to provide recommendations to a Landmark Preservation Commission. The most common issues pertain to the massing, building material and historic detailing on the elevations that face the street. The secondary elevations that face away from the street only need to complement the primary structure. In some cases, the roof treatment of an ADU’s primary elevation is reminiscent of the primary building; while its secondary elevations, which face the alley, may be flat to maximize interior space. This allows homeowners the flexibility to create more usable spaces while still blending with historical forms and traditions. Incentives: Some cities around the country, recognizing the benefits of ADUs, have initiated various forms of incentives to foster ADU development. Assistance with rent, down payments and mortgages along with tax abatements have been utilized. The city of Des Moines, in January 2022, implemented a 10 year, 100% tax abatement for new ADUs. We hope that the cities that already have an ADU ordinance will review these recommendations and consider making revisions to be more in alignment with our advice. For those cities without an ADU ordinance/code, we encourage you to utilize/consider these recommendations as a template for the drafting of your ordinance/code. We would welcome the opportunity to discuss with you how ADUs can be a useful strategy to support seniors and also provide affordable housing in your city and across the county. MINUTES PRELIMINARY PLANNING AND ZONING COMMISSION JUNE 21, 2023 – 6:00 PM – FORMAL MEETING EMMA J. HARVAT HALL, CITY HALL MEMBERS PRESENT: Susan Craig, Maggie Elliott, Mike Hensch, Maria Padron, Billie Townsend, Chad Wade MEMBERS ABSENT: STAFF PRESENT: Madison Connolly, Sara Hektoen, Anne Russett, Parker Walsh OTHERS PRESENT: Pablo Mejia Aguilar CALL TO ORDER: Hensch called the meeting to order at 6:00 PM. ELECTION OF VICE CHAIR: Townsend nominated Craig to be Vice Chair, Padron seconded, a vote was taken and motion passed 6-0. PUBLIC DISCUSSION OF ANY ITEM NOT ON THE AGENDA: None. DEVELOPMENT ITEM CREZ23-0001: Location: 4201 Nursery Ln SE, Unincorporated Johnson County An application for a conditional use permit to allow a home industry on approximately 3 acres of land zoned County Residential (R3) in unincorporated Johnson County outside the City's growth area. Walsh began the staff report with an aerial of the property, noting the existing home and two warehouses on the property, one of which is intended to become the home industry. The property is zoned County Residential (R3) which is for property of 3 to 4.99 acres and the property as mentioned is a little more than 3 acres. Walsh showed the Fringe Area Map, noting this property is outside the City's growth area and is not likely to be annexed into the City. The County's Future Land Use Map indicates the subject parcel as appropriate for County Agricultural and the proposal aligns with both Johnson County Future Land Use Map and the Fringe Area Agreement as home industry is a conditional use allowed in both agricultural and the existing residential zone. Walsh stated the proposal is intended to convert the warehouse on the property to a home industry for a kitchen remodeling business titled Superstar Granite, with the business hours expected to be between Monday and Friday 8am to 5pm. Walsh showed where the parking area is left to the warehouse, and stated it is large enough to serve the expected two clients at any one time. Staff recommends approval of CREZ23-0001, an application submitted for a County conditional use permit to allow home industry on 4201 Nursery Lane SE. Planning and Zoning Commission June 21, 2023 Page 2 of 3 Following the Commission's recommendation to Council, City Council would then give their recommendation to the Johnson County Board of Adjustments and since this property is located outside of the City's growth area, any building permits or site plans would go through the County. Craig asked what the definition of a home industry is and what are the County’s criteria for the approval of one. Walsh is not exactly sure what the County’s specific approval criteria is. Wade asked if there anything that the Commission needs to review or consider regarding screening or otherwise. Walsh replied no because any site plans or building permits would be reviewed solely by the County and the City wouldn't see anything beyond this application. Hensch opened the public hearing. Pablo Mejia Aguilar stated they are wanting to get approval so they can create this commercial space and be able to work where they live. Hensch closed the public hearing. Elliott moved for approval of CREZ23-0001, an application submitted for a County conditional use permit to convert an existing warehouse to a home industry use intended as Super Star Granite LLC. Townsend seconded the motion. A vote was taken and the motion passed 6-0 CONSIDERATION OF MEETING MINUTES: APRIL 19, 2023: Townsend moved to approve the meeting minutes from April 19, 2023. Wade seconded the motion, a vote was taken and the motion passed 6-0. PLANNING AND ZONING INFORMATION: Russett reported the City Council approved the rezoning on Scott Boulevard for the Oaknoll East expansion and the commercial rezoning off Mormon Trek was also approved. Additionally, at one of the more recent meetings Commissioners Townsend and Wade were reappointed to the Commission by City Council. Russett stated there was also another member of the community that was appointed to the Commission but they subsequently resigned, so they are taking more applications and hope to have a new Commissioner in August. Lastly, Russett introduced Madison Connolly as a new associate planner, she used to work for the Conservation Districts of Iowa and graduated from the University of Iowa. ADJOURNMENT: Townsend moved to adjourn, Elliott seconded, a vote was taken and the motion passed 6-0. PLANNING & ZONING COMMISSION ATTENDANCE RECORD 2022-2023 7/6 8/3 9/7 10/19 11/2 11/16 12/7 12/21 1/4 1/18 2/15 3/1 4/5 4/19 6/21 CRAIG, SUSAN X X X X X X O/E X X X X X X X X ELLIOTT, MAGGIE X X X X X X X X X X X X X X X HENSCH, MIKE X X X X X X X X X X X X X X X NOLTE, MARK O/E O/E O/E -- -- --- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- PADRON, MARIA X X X X X O/E X X X X X X X X X SIGNS, MARK X X X X O/E O/E X X X X O/E O/E X -- -- -- -- TOWNSEND, BILLIE X X X X X X X O/E X O/E X X X X X WADE, CHAD --- --- --- --- X O/E X X X O/E X X X X X KEY: X = Present O = Absent O/E = Absent/Excused --- = Not a Member