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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 4�_ `. / MA)MR ATTE�e "'t""'� CITY CLERI M d by G-6-47 City Attorney's Office wmhVandue Vnomtonum ord.dm 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. �11, i 1 H `7T_ L 'llryy 1?,. �j'� )`�� ri,.. '!'�.� r.w//�•%l'`'s s`/, � = .l�t-�/I.� ( }♦:\ '� 3�� fit' � ; r ' CITY OF IOWA CITY 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 AVAI PV Ilk -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.