HomeMy WebLinkAbout2017-06-08 OrdinancerA
Prepared by: Eleanor Dilkes, City Atty., 410 E. Washington Street, Iowa City, IA 52240; 319-356-5030
ORDINANCE NO. 17-4710
An ordinance amending Title 17 of the City Code (Building and Housing) to
establish a six and a half month moratorium on the issuance of new rental
permits, and building permits that result in an enlargement of a rental
dwelling, in RS -5, RS -8 and RNS-12 zones within the area generally
bounded by Scott Boulevard on the east, 1-80 on the north, the Iowa River
and Mormon Trek Blvd on the west, and Highways 1/6 on the south in Iowa
City, Iowa.
Whereas, Iowa City, like many cities around the country, currently regulates occupancy based
upon its definition of "family" and whether the occupants are or are not related by blood,
marriage, adoption or placement by a social service agency; and
Whereas, the State legislature recently adopted a law (HF 134) amending Iowa Code Section
414.1 to prohibit municipalities, after January 1, 2018, from adopting or enforcing any regulation
or restriction related to occupancy of residential rental property that is based upon the existence
of familial or nonfamilial relationships between the occupants of such rental property; and
Whereas, regulation of occupancy based on familial status has been an important tool to
promote peaceful habitation in residential areas of Iowa City for more than 50 years; and,
Whereas, since at least the 1960s, maximum occupancy has been based on the number of
unrelated persons and off-street parking; and
Whereas, on October 23, 2001, the City Council established the Neighborhood Housing
Relations Task Force in Resolution No. 01-353 consisting of representatives of owners,
tenants, and neighborhoods to review nuisance laws and policies "to afford peaceful habitation
in residential areas of Iowa City"; and
Whereas, on June 27, 2002, the Task Force submitted its "Proposed Initiatives/Report of Task
Force' to the City Council; and
Whereas, seven of the twenty-six recommended initiatives were directed at occupancy which
resulted in the requirement that landlords and tenants acknowledge in writing the maximum
occupancy of the unit (i.e., the Informational Disclosure and Acknowledgment Form) and the
inclusion of the maximum occupancy on the face of the online rental permit; and
Whereas, in recognition of the fact that over -occupancy of rental units is an issue that
negatively impacts the quality and value of neighborhoods, City Council has imposed the
maximum penalty allowed by state law for a violation of the maximum occupancy requirements
of the City Code; and
Whereas, the loss of this tool significantly threatens the stability of the neighborhoods in the
City's single family zones and requires careful study of alternative options;
Whereas, subsequent to this new law being enacted, the City has received approximately 40
Ordinance No. 17-4710
Page 2
applications for building permits on existing rental properties that would result in an increase in
the number of bedrooms; and
Whereas, in recent years the City has received fewer than five such applications per year; and
Whereas, due to this new law, the City must study how to mitigate the impacts of rental housing
and increases in occupancy levels on neighborhood stability, housing affordability, public and
tenant safety, urban congestion, blight, risk to public peace and order, conflicts between rental
and owner -occupied housing, and excessive demands upon public safety, infrastructure and
municipal services; and
Whereas, during the course of this study, it is prudent to establish a moratorium until December
31, 2017 on the issuance of new rental permits (i.e. not renewals of existing permits) and
building permits that would result in an enlargement of existing rental dwellings.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF IOWA
CITY, IOWA THAT:
SECTION I. AMENDMENT. Title 17 "Building and Housing" of the City Code is hereby
amended by adding a new Chapter 15, entitled "Moratorium", as follows:
1. Moratorium and Area of Applicability: For properties zoned RS -5, RS -8 and RNS-12 within
the area generally bounded by Scott Boulevard on the east, 1-80 on the north, the Iowa River
and Mormon Trek Blvd on the west, and Highways 1/6 on the south in Iowa City, Iowa, as
more particularly shown on the attached "Moratorium Boundary Map", the City shall not issue
a rental permit for any dwelling that is not subject to a current rental permit or a rental permit
that expired within the past 18 months. The City, furthermore, shall not issue a building permit
that would result in an enlargement of a rental dwelling located within the area described
above.
2. Definitions: For the purposes of this ordinance, the following definitions apply:
a. ENLARGEMENT shall be as defined in Chapter 14-9 of the City Code: An increase in
the volume of a building, an increase in the area of land or building occupied by a use,
an increase in the number of bedrooms within a dwelling unit or an increase in the
number of dwelling units. For group living uses, any alteration that allows an increase in
the number of residents is considered an enlargement of the use.
b. DWELLING shall be as defined in Chapter 14-9 of the City Code: Any building,
structure or manufactured housing, except temporary housing, wholly or partly, used or
intended to be used for living or sleeping by human occupants and includes any
appurtenances attached thereto.
c. DWELLING UNIT shall be as defined in Chapter 14-9 of the City Code: Any habitable
room or group of adjoining habitable rooms located within a dwelling and forming a
single unit with facilities used or intended to be used by one household for living,
sleeping, cooking and eating meals. Multiple dwelling units exist if there is more than
one meter for any utility, more than one address to the property, more than one kitchen,
and/or if there is a lockable, physical separation between rooms within the dwelling unit
such that a room or rooms on each side of the separation could be used as a dwelling
unit.
d. RENTAL DWELLING: Any dwelling with a valid rental permit or any dwelling with a
rental permit that expired in the past eighteen (18) months.
Ordinance No. 17-4710
Page 3
3. Termination: This Chapter 15 shall be automatically repealed on January 1, 2018.
SECTION Il. REPEALER. All ordinances and parts of ordinances in conflict with the provi-
sions of this Ordinance are hereby repealed.
SECTION III. SEVERABILITY. If any section, provision or part of the Ordinance shall be
adjudged to be invalid or unconstitutional, such adjudication shall not affect the validity of the
Ordinance as a whole or any section, provision or part thereof not adjudged invalid or unconsti-
tutional.
SECTION IV. EFFECTIVE DATE. This Ordinance shall be in effect after its final passage,
approval and publication, as provided by law.
Passed and approved this 8th day of June 20 17
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Ordinance No. 17-4710
Page 4
It was moved by Mims and seconded by Botchway that the
Ordinance as read be adopted, and upon roll call there were:
AYES: NAYS:
x
x
x
x
x
x
ABSENT:
x
ABSTAIN:
Botchway
Cole
Dickens
Mims
Taylor
Thomas
Throgmorton
First Consideration 06/06/2017
Voteforpassage: AYES: Dickens, Mims, Taylor, Thomas,
Throgmorton, Botchway, Cole. NAYS: None. ABSENT: None.
Second Consideration _
Vote for passage:
Date published 06113/2017
Moved by Mims, seconded by Botchway, that the rule requiring
ordinances to be considered and voted on for passage at two
Council meetings prior to the meeting at which it is to be
finally passed be suspended, the second consideration and vote
be waived and the ordinance be voted upon for final passage at
this time. AYES: Botchway, Cole, Dickens, Mims, Thomas, Throgmorton.
NAYS: None. ABSENT: Taylor.
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COUNCIL ACTION REPORT
Click here to enter a date of council meeting.
An ordinance amending Title 17 of the City Code (Building and Housing) to
establish a six and a half month moratorium on the issuance of new rental
permits, and building permits that result in an enlargement of a rental
dwelling, in RS -5, RS -8 and RNS-12 zones within the area generally
bounded by Scott Boulevard on the east, 1-80 on the north, the Iowa River
and Mormon Trek Blvd on the west, and Highways 1/6 on the south in Iowa
City, Iowa.
Prepared By:
Eleanor Dilkes, City Attorney
Reviewed By:
Geoff Fruin, City Manager
Doug Boothroy, Director of Neighborhood Development Services
Stan Laverman, Senior Housing Inspector
John Yapp, Coordinator of Development Services
Fiscal Impact:
No impact
Recommendations:
Staff: Approval
Commission: NIA
Attachments:
Ordinance
Executive Summary:
This ordinance establishes a moratorium through December 31, 2017 on the issuance of any
new rental permits in the RS -5, RS -8 and RNS-12 residential zones within the area of the City
already largely developed for residential purposes. It also establishes a moratorium on the
issuance of any building permit that would result in an enlargement of an existing rental unit
within the same zoning and geographic limitations. Staff recommends approval of these
moratoria to allow time to study the impact of recently -adopted state legislation that prohibits the
City from regulating rental units based upon the existence of familial or non -familial relationships
between the occupants of such rental property.
Background / Analysis:
Short term moratoria preserve the status quo. The City currently regulates occupancy based
upon its definition of "family". Effective January 1, 2018, the City can no longer enforce this
ordinance due to the Iowa Legislature's passage of HF 134. Since the passage of this law, in
the past several weeks, the City has received 40 permit applications for 35 properties to add
bedrooms to existing rental properties — a majority of these are for single family and duplex units
for properties located in near -downtown neighborhoods. In comparison, over the past two years,
the City has issued an average of less than five permits per year for adding bedrooms to rental
single family and duplex units.
The proliferation of rental housing and increases in occupancy levels can have a destabilizing
effect on the neighborhood; drive up prices; cause threats to public and tenant safety; create
urban congestion, blight, a risk to public peace and order, conflicts between rental and owner -
occupied housing, and excessive demands upon public safety, infrastructure and municipal
'r 1 CITY OF IOWA CITY
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-r4 COUNCIL ACTION REPORT
services. These impacts are documented in the Iowa City Comprehensive Plan and adopted
sub -district plans.
For decades, the City has dealt with the negative impacts of the conversion and redevelopment
of older single family homes into rentals with inadequate green space, parking, lighting, or
property management. Because students can pool their resources, many individuals and
families have been priced out of owning or renting in the center of town close to work, school
and other public resources. Staff has studied and documented a correlation between the
location of police calls for service, and the location of rental permits. The problems of high
number of rental units are magnified when the landlords do not live in the area and the renters
are young and inexperienced.
The moratorium is limited to properties located within the RS -5, RS -8 and RNS-12 zones within
an area generally bounded on the east by Scott Boulevard, on the north by 1-80, on the west by
Mormon Trek Blvd, and on the south by Hwy 1/6. This area contains the older neighborhoods
and predominantly developed parts of the City, which is also where the majority of rental permits
are located. Growth areas in the far west, south and east sides of the City are not proposed to
be included in the moratorium area. The RS -5, RS -8, and RNS-12 zones are the predominant
single-family zones in which rental permits are issued within the moratorium area.
While the City has taken such measures as creating neighborhood task forces and adopted
nuisance ordinances, this new state law significantly impacts one of the City's primary ways of
mitigating these challenges. As a result, the moratorium will aid the City in furthering many goals
set forth in its IC2030 Comprehensive Plan and sub -district plans. For instance, the IC2030
Comp Plan states that "stable neighborhoods with affordable housing and quality schools are
essential to ensuring that Iowa City remains an attractive place for families with children" (page
11).
The moratorium does not apply to multi -family properties and does not apply to pending rental
permit renewal applications. It is proposed to be in effect until December 31, 2017. During the
moratorium period Staff will research and study possible code revisions that may be prudent to
mitigate the impacts of rental housing, in consultation with City Council. Staff anticipates
presenting code amendments to be considered by Council prior to the expiration of this
moratorium.