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HomeMy WebLinkAboutFair Housing Study (2019) - Recommendations 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 other 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 disparities 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 diversity 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 negatively 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 opportunity. 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. Continuing 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 rehabilitation 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 through 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 within 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 Location 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 standard 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, amenities, 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 access 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 neighborhoods 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 community. 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, this 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, there 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 change 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 discussion 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 institutions 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.