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HomeMy WebLinkAboutAFC 01-28-10~r ~ MEETING NOTICE JCCOG Affordable Housing Committee Meeting Thursday, January 28, 2010 - 4:00 PM Coralville City Hall Council Chambers Agenda 1. Call to Order 2. Consider approval of October 29, 2009 meeting minutes 3. Public discussion (of any item not on the agenda) 4. Review summary of discussion to date 5. Review summary of manufactured housing information and data for Johnson County 6. Review identitfed redevelopment areas and public policies which would support creation of affordable housing 7. Identify topics for next agenda 8. Discuss next meeting time and location 9. Other business 10. Adjournment Attachments S:\PCDWGE N DAS\JCCOGW HC\2010\AFCagenda 1-2&10.doc MINUTES JCCOG AFFORDABLE HOUSING COMMITTEE THURSDAY, OCTOBER 29, 2009 - 4:00 PM CITY HALL, CORALVILLE, IOWA Members Present: City of Coralville: City of Iowa City: City of North Liberty: City of Tiffin: City of University Heights: Clear Creek Amana School District: Home Builders Association: Housing Fellowship: IC Community School District: Johnson County: University of Iowa: Members Absent: Staff Present: Others Present: CALL TO ORDER: PRELIMINARY Ellen Habel Steve Long Tracey Mulcahey Royce Phillips Louise From Paula Vincent Glenn Siders Maryann Dennis Lane Plugge Andy Johnson George Hollins Housing Trust Fund of Johnson Co.: Tracey Achenbach IC Area Association of Realtors: Cheryl Nelson Kris Ackerson and Linda Severson Carol Spaziani (League of Women Voters); Mary Abboud (Housing Authority) Linda Severson called the meeting to order at 4:10 PM and the meeting attendees introduced themselves. PUBLIC DISCUSSION: None CONSIDER APPROVAL OF AUGUST 27.2009 MINUTES: Glenn Siders moved to approve the minutes and Andy Johnson seconded; the motion passed unanimously. HOUSING AND POPULATION DATA OVERVIEW: Severson provided an overview of recent housing and population projections, noting that local populations are expected to reach remarkable numbers by 2040. She also highlighted that the average price of a .condominium has increased, while the average price of single family homes in the Iowa City area has decreased in the last year. Siders requested more information about the conclusions for Chart 11, that "there will be more homes in the upper end of the price spectrum and fewer in the middle." Long asked for further clarification of "upper" and "middle" priced homes. Long noted that the data indicates the largest share of owner occupied homes have increased in price from $100k-$125k to $200k-$250k since 2000. JCCOG Affordable Housing Committee October 29, 2009 Page 2 of 3 Referring to the Cook Appraisal report of local rental rates, Dennis commented that the Housing Fellowship provides rental housing at price points lower than the average rates charged for 2 bedroom and 3 bedrooms in Iowa City, Coralville, and North Liberty. POLICY AND ZONING CODE OPTIONS TO ENCOURAGE MODERATE-PRICED HOUSING: Ackerson provided a summary of six policy and zoning code tools used by communities to encourage affordable housing. The tools do not require the municipality to allocate funds for implementation, which improves the likelihood of adoption. The tools include the following: • Accessory dwelling unit (i.e., granny flat) • Proportional Impact Fees • Density Bonuses • Pre-Approved Plans for Streamlined Approval • Alternative Single Family Zone Development (Higher Density) • Innovative (Cottage) Housing Programs Hollins discussed a recent trip to Vancouver, B.C. and his observation that high rise units in that city contained a mix of income levels. The structures appeared to use space efficiently and he expressed interest in learning more about the mechanisms that enabled this type of development. Siders and Long discussed the recent Iowa Ciry zoning code revision and accessory dwelling units. Long and Dennis stated that accessory dwelling units are allowed in single family residential zones in Iowa City. Siders stated that impact fees are against state laws, although open space dedications or exactions are not considered an impact fee. He expressed interest in evaluating this topic further. The pre-approved (i.e., permit-ready) plans offered by Portland and Sacramento generated interest among some committee members. The design review process is time consuming, according to Siders; and, developers are often required to hire an architect to design their proposal before knowing if the project will be approved. Long mentioned that the city offers this service to Habitat for Humanity and suggested the idea might work for affordable housing projects. Phillips requested more information on this topic. Johnson mentioned that the pre-approved plan concept might move projects through the public input process more quickly than multi-family projects frequently require. AFFORDABLE HOUSING AND PUBLIC RELATIONS: Severson reviewed the Federal Department of Housing and Urban Development definition of affordable housing. The committee agreed that although the definition does not fit all populations perfectly this national definition would be appropriate for the Committee going forward, knowing its limitations. Severson summarized the local income guidelines and definitions table, which accounts for all communities in the urbanized area. The fair market rent table illustrates the amount the Iowa City Housing Authority is permitted to pay. JCCOG Affordable Housing Committee October 29, 2009 Page 3 of 3 Severson reviewed public education campaigns and noted the difficulty measuring the cost- benefit of these programs. The campaigns could be mirrored locally using public service announcements, brochures, or ads. Severson mentioned redevelopment projects in Bloomington, Indiana that improved blighted areas, which Dennis noted could be considered for areas in rural Johnson County. Siders highlighted the challenges resulting from NIMBY-ism. He shared that neighborhood meetings hosted by developers to obtain public input are rarely effective. The "Good Neighborhood Meeting" hosted by the City of North Liberty, however, creates a neutral atmosphere that improves the effectiveness of the meetings. Johnson discussed the success of a housing group in Silicon Valley that reviews developer plans using unique criteria; the group promotes projects that meet the criteria, which provides a third-party/objective and credible evaluation of proposals. IDENTIFY TOPICS FOR NEXT AGENDA: Severson listed possible topics for the upcoming meeting, including building code issues, regulatory impacts on housing costs, inclusionary zoning, and enterprise zones. Siders requested that meeting packets be mailed two weeks prior to the meeting to allow time to review the materials thoroughly. Johnson requested an opportunity to offer updates by cities or pose questions. The committee agreed to focus on two topics at the next meeting: opportunities to redevelop districts that would provide opportunities for affordable housing; and a summary of manufactured housing stock, lot rental rates, and other market trends. NEXT MEETING TIME AND LOCATION: Mid -late January at Coralville City Hall. The next meeting of the JCCOG Affordable Housing Committee will be held on January 28 at 4:00 PM, at Coralville City Hall. OTHER BUSINESS: None ADJOURNMENT: With no other business, the meeting was adjourned at 5:15 pm. Minutes taken by K. Ackerson S:1PCD1Minutes\Affordable Housing Committee\ aff hsg minutes 10 29 09 Date: To: From Re: January 11, 2010 r r~~~~ JCCOG m e m o JCCOG Affordable Housing Committee Kristopher Ackerson, Assistant Transportation Planner Agenda item #4: Review summary of discussion to-date The following memo provides a select recap of discussion by JCCOG Affordable Housing Commit- tee meetings. As this committee continues to convene, we plan to append topics and recommenda- tions that received positive feedback. This will be useful in summarizing the outcomes of this com- mittee for our local governments in the future. August 27, 2009 The committee brainstormed topics they would like more research on for future meetings. The topics of mutual interest included: 1) Public awareness and perceptions/education on affordable housing issues; 2} understanding the demand for affordable rental housing; 3) understanding the ways which affordable housing may utilize more community resources and matching those resources to housing locations; and 4) the cost of developing housing. October 29, 2009 Public outreach and public perception of affordable housing continues to be a key topic of interest; pursuing a joint educational campaign could be considered as a recommendation. The challenges resulting from NIMBYism are an issue. The "Good Neighborhood Meetings" hosted by the City of North Liberty create a neutral atmosphere that improves the effectiveness of commu- nicating development proposals. This policy could be implemented by other JCCOG municipalities. The pre-approved (i.e., permit-ready) plans offered by Portland and Sacramento generated interest among some committee members. The design review process is time consuming, and developers are often required to hire an architect to design their proposal before knowing if the project will be approved. The City of Iowa City offers this service to Habitat for Humanity but more designs could be provided to other affordable housing providers. Voluntary density bonuses as an incentive to develop affordable housing intrigued members of the committee. This carrot and stick approach is less controversial than inclusionary zoning policies that require developers to set aside a percentage of affordable units. If a developer includes affordable units, many cities offer a range of incentives, including: • Reduced minimum lot sizes and/or dimensions • Increased maximum lot coverage • Increased maximum building height and/or stories • Reduced on-site parking stan- dards, including the number or size of spaces and garage re- quirements Conclusion • Reduced street widths • Reduced park dedication requirements • Shifting commercial uses to residential • Expedited review Staff will continue to add to this list of topics of interest after each committee meeting. Feel free to contact me with questions at 356-5247 or Kristopher-AckersonC~iowa-city.org. I will also be at your January 28th meeting to answer questions. S:W000G\Aflordable Housing Committee\Jan 2009 Agenda\Topics of mural interest_t_8_10_kja.doc .~'~ r~~j m e m o Date: January 14, 2010 To: JCCOG Affordable Housing Committee From: Linda 3~l~s~on, Human Services Coordinator Re: Agenda Item #5: Review summary of manufactured housing information and data for Johnson County A manufactured home is a catch-all term for asingle-family dwelling constructed entirely in a controlled factory environment. There are a range of types of manufactured homes, including the traditional 14 foot wide trailer as well as panelized homes, modular homes, and prefabricated homes. They may be single or multi-sectioned, and are transported to the home site after being constructed entirely in a controlled environment. One of the benefits of manufactured housing is that it can provide an owner-occupied opportunity for a segment of the housing market not traditionally served by the site-built housing market. Manufactured housing attracts a greater percentage of young homebuyers: 25% of manufactured homeowners are under 34 years old, compared to 14% of homeowners of other types of homes. Construction Cost: The square-foot construction cbst of manufactured housing is approximately 75% that of site-built homes of comparable size and quality (according to the American Planning Association). Uniform Building Code: Since 1976, traditional 14 foot wide mobile homes are subject to the federal Manufactured Home Construction and Safety Standards building code; there is a perception that mobile homes are not constructed to the same building codes as other homes. According to the National Association of Home Builders, other types of manufactured housing, including modular homes and panelized homes, meet the Uniform Building Code requirements and can be located within normal single-family subdivisions, According to the NAHB, modern modular homes are typically more energy-efficient and are produced with less waste than site-built homes. Techniques to Ensure Compatibility of Manufactured Homes: One of the comments about manufactured housing is that they are incompatible with site-built homes. There are several techniques communities have adopted to ensure compatibility with existing neighborhoods, including: ^ Roof pitch. A range or a minimum pitch can be specified so that manufactured homes have a peaked roof to match the norms in the neighborhood. Foundation appearance. A requirement for permanent foundations, faux foundations, and landscaping and grading standards can ensure that the manufactured home and property are consistent with adjacent structures. ^ Exterior siding. A simple requirement for wood or cement board siding can ensure the manufactured home is compatible with other adjacent homes. Johnson County Data: In Johnson County there are 23 manufactured home courts, ranging from two homes to 456 homes. The total number of manufactured homes in Johnson County is 3,383 (see attached map and table). In the 2000 Census, this type of housing comprised 5.6% of the housing units in Coralville, Iowa City, North Liberty, Tiffin and University Heights. The price of a manufactured home depends on the size, age, and what amenities it may offer. A review of previously-owned manufactured homes for sale indicates a range of purchase costs: ^ Currently a 1996 unit; 16' x 80'; 3 bedrooms and 2 bathrooms listed at $28,000; ^ A 2002 unit; 32' x 80'; 4 bedrooms and 3 bathrooms; and a two car garage listed for $72,000 Expenses Related to Owning a Manufactured Home Financing of the purchase of a manufactured home is typically done through dealers or retailers that sell manufactured homes. Some lenders will grant a conventional mortgage for manufactured homes but will require that the home be placed on a permanent foundation. This type of housing may be eligible for an FHA or VA home loan. Insurance for a manufactured home is more expensive to buy, compared to a stick-built home based on a per $1,000 or square foot basis. Manufactured housing can be more susceptible to weather-related claims such as hail, wind, and frozen water pipes, or flooding if placed in a flood plain. If the unit is newer, replacement cost insurance may be available. For taxes, the home is taxed as a vehicle if it is located in a court or park. If it is located in a standard subdivision on a foundation, the home is typically taxed as real estate. Lot rent is another monthly expense with this type of home. The amount of lot rent varies according to the individual parks and what was included. The range in Johnson County is from $225 to over $300 per month. One court we spoke to stated the lot rent included mowing and trimming, snow removal on streets and sidewalks, after-hours security patrol, water and sewage treatment, garbage and paper recycling picked up at the door, and basic family cable service (this lot rent was $305). Another expense related to home ownership is repair. From staff we spoke to, the repair issues are similar to conventional stick-built housing. With some of the older manufactured homes, repair and replacement of mechanical items like water heaters and furnaces typically occur on a more frequent schedule due to the nature of the structure and quality of equipment. Lack of attention to maintenance or needed home repairs typically compounds repair needs -some of the newer courts have requirements for exterior maintenance of the unit. Conclusion: Manufactured housing is an affordable option for many people. Households that have not established adequate credit or are no longer interested in renting are a typical manufactured home buyer. Households who don't have enough income to purchase a conventional stick-built home and households that no longer can or wish to do their own exterior maintenance (mowing or snow shoveling) are another typical household for this type of home. From the data that we collected, there are a significant amount of older manufactured homes (pre-1976) that are not constructed to the same code requirements as more modern homes and are certainly not as efficient from a utilities perspective. Information for this memo was collected from Iowa City home rehabilitation sfaff, the Johnson County Treasurer's Office, Insurance Agent Bill Wirth, Habitat for Humanity staff, and manufactured home websites. jccogadmlmemlmanutacturedhomes01-11-10.doc ~~-~ ~~~ rr ".~• ~_ ~~~<<- i. ~ ,f .y:, I;_.L~i hSr .. ..... f'YYI sir., ~, i 141 . s ~- ~:Y... .. .. ,. ,... ~.. ~, N e ~ ,... ~, . - [ i: 1 . . . _ '. _... ._... ,'.P y~. .,~ i ~ ..~~.,. i j, '', is ; ~-~ ~ ,.:>~;,,~~ i . _~ ,~ LDC8t6~0(1 __._ ~t't~t0.Ti I 1_' ,- k ?T i -~"m'.. ~~ Baau]is Mv,F~ ~;~ ,ne Pa,k Cc~.a 137 ; _ .;;, t ~:-A:~rv +.`.7c: ~ _ +5 Lt~dye ~t~~kr~ A56 ~ ':. _~_ Bret%e^ r;e !ss Ceunt 143 ~ _ , ,,_. ,,._, r .~ ..,. ~, ~'+`L~, 41__ rye ~.f(..U . ~,,, ;iuflt +~ ~ - ~._ ~ G b t S, ~~i>>rne Cauft C6U8S ~ 2 , ,s , , : ,~- ~~ - ~ t. ~ Har ~Jf~ , v r na Park Coun; . _;~ , . ~, ~ : Gai .-~>r: .~. _ > rau-na G~,a:rt Caun2 2 ~' ~ ~ _ I -.<.~ . ~sr>,r , .~, - . - .. ~ ~~ ... , „ ~c>;,nt .. ~ - .:.ta.-.r '~R1 Krr. . ~ ~:~~ : „:;....t C.:;rirt 11 _ ._ ~ - ~ -. ~ L~~k ~ ! ~ to h~ ~ ~~ ~.~~~rN C'~utt Gaunt 422 ~ _ _ ~, . , ,r .,_.. ~ .~.. . 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The following memo outlines redevelopment opportunities in local districts and individual properties. Additionally, we have provided a recap of affordable housing incentive policies that received positive feedback during your last meeting. Local Redevelopment Districts Redevelopment is one of the most effective ways to revitalize underdeveloped areas which have physical, environmental, or economic conditions which act as a barrier to new investment by private enterprise. Through the redevelopment process, a project area receives focused at- tention and financial investment to reverse deteriorating trends, rehabilitate and add to the hous- ing stock, and gain active participation and investment by citizens which may not otherwise oc- cu r. The following map illustrates local areas which have been identified by local municipalities as potential redevelopment districts, which could also incorporate affordable housing incentives. In general, cities typically utilize incentives to encourage redevelopment, such as tax increment financing (TIF), density bonuses, fee waivers, community development block grants (CDBG), and expedited application processing. Other Potential Redevelopment Opportunities For planning purposes, land use and economic development planners often identify properties with higher land values than improvement values to be "underdeveloped." Aproperty, for exam- ple, with structures worth $25,000 while the land is assessed at $50,000 would be considered underdeveloped. The second enclosed map illustrates properties in the urbanized area~that meet this basic crite- rion. Redevelopment helps encourage new housing and businesses to locate within already de- veloped areas. Affordable Housing Policies Various communities employ land-use tools to improve the supply of workforce and retiree housing. The following affordable housing tools have been successfully employed in other com- munities and could be considered locally in Johnson County. Significantly, these tools do not require the city to allocate funds for implementation, which improves the likelihood of adoption. Pre-Approved Plans for Streamlined Approval -Several communities have initiated programs that reduce the time and cost of the permit process for the developer for certain types of hous- ing, while promoting well-designed housing. These cities offer contractors the opportunity to purchase or use house plans that are pre-approved by the city. The city reviewed plans in ad- S:U000G1Affordable Housing CommitteeWan 2009 Agenda\Redevelopment memo_1_6_10_kja.doc vance for conformance with building codes and many other standards. The City of Iowa City of- fers this service for Habitat for Humanity to reduce application review costs. The Portland, Ore- gon program targets housing on narrow lots, and Santa Cruz offers accessory dwelling unit plans. More Efficient Use of Housing/Accessory Dwelling Units - An accessory dwelling unit is a sec- ondary dwelling incorporated within asingle-family structure -sometimes called a `granny flat.' Accessory dwelling units (ADU) may not be subdivided or otherwise segregated in ownership from the primary residence structure. The City of Iowa City allows ADUs by right in RS-5,-8, and -12, as well as RM-12, RM-20, and RNS-20 (see attached). While Iowa City does not offer in- centives, other communities reduce the following requirements to encourage affordable acces- sory dwelling units and bonus units on-site: • Reduced minimum lot sizes and/or dimensions • Increased maximum lot coverage • Increased maximum building height and/or stories • Reduced on-site parking standards, including the number or size of spaces and ga- rage requirements • Reduced street widths • Reduced park dedication requirements • Shifting commercial uses to residential • Expedited review Density Bonus -Density bonuses and other incentives can offset the developer's project costs and compensate them for providing affordable units, which may otherwise reduce profits. This approach enlists private sector help in contributing to the affordable housing supply and reduces segregation of affordable housing. To be effective, the incentives must be enticing enough to encourage the development community to take advantage of them. Conclusion The opportunities outlined in this memorandum provide a menu of options to consider. What works in one community may not be effective in another. However, the success of these pro- grams in other communities hints at opportunities for further research and evaluation based on local conditions. Feel free to contact me with questions at 356-5247 or Kristopher-AckersonCa~iowa-city.org. I will also be at your January 28th meeting to answer questions. S:U000GVIffordable Housing CommitteeWan 2009 AgendalRedevelopment memo_1_6_10_kja.doc ~re~,ar~~ b} r . ,~ri ,°:;k~rfi0n Dec.. ? 5, 204 ~:,n~fo~ihar Arkpr5ar~ C7et,, tea, 2C;a9 Thursday. December 17, 2009 ~be~xrtttr Z~A LEFT: A rendering of the Oakhitl Jackson Brickstones apartment building is seen at Sixth Street and 12th Avenue SE before a groundbreaking Wednesday in Cedar Rapids. ~~<' ,~~z l~i Sssi~iit061 a~,<< CEQAR ,~~ RARIDS ~sy ~ ~} : Pyz.. (/~r K`~' „~+r 1~~C P~Q. Otrs Rif. _ -. w Gartatt(~ rrrr.t `Work force housing' in works gY Rick Smith ";~ Gazette t"}-',Iti~k IZ.~F'IDS-- T11N}~ I tnn~r(:•,a a htxt(~ r=rr~>rrzlcl at ltitr(:h atl 1~'1't-~dnesday~ t(> 1,1}te file itlitrrll step in'ntildinti; ts4•(> ~ril`~~t•dab}r_ hrrusini alr=rtr~nrant cornlrlexcti for "~,rn-kirlg~ Canullrs~' in the flood-GrT1~~etecl {)ak lard J~ c.k4r7r1 tlai~hl,~crrhtrc~d. '1'hr~ liryt ca}'!ht' t~w~rl t~tti{rli.rrk,;; ( .rllr~tl tht~ Uak.llill J~rr.k~Can 13rir:kstc~rlc~~ k~4~ , } in the ~+I9 inillian ~ prr~jF~ct ~;hcl7.ild h~~ rilien for' c-~ccupants lrr ltl = T~ 1114I1tIlS, deL'E'lCrj~kl" ~~' .Lack Hatch. prirrcipr~~tl ~; ,,, ~~ (rf }Irtt(°.lt T~evr~ic~}~t~tierrt Group rn lles :~'1+1it1E's. ~JaCk Hatch I t(.ald ~ ~rnut'rdbrc~akitag r)evesio~er g,rtllryrin~; at thr~ ~:itc of (,nr~ (3f the bui}dint;s. 'r, Si'itlr ~krcaei and 1'~t.11 ~verluf~ 41:. TIl(~ other rl}rar'tnl~nt lattildint; will tr, trp aftt~z• the (~- ~ ;~ .~ first, datvn ttte stre~ct- I ~,,~ at Si~;tll Street arld T~ ' kr - tVntil Av~enuz~ 5E. The project _ . 5'l Grpartn~etnts il~ ore »n~ • ~. ht~ildin~, 9•:i in the -.~, othr~r is taei~n fuzldr;d itl la.r~e pat' ;a~wai~ln~a Pe hp rr cnrzzl~ir~atiozi of ,~„tfaority federal faanda. That irlciude+ ~1U million in low-income housln~ tali cz•edit. and anoiher S~}.1 millirrrl in feller ~~l stirnuluti funds. At ~Vedztesday's evE=tlt, hatch, a st<zte senatt~r, made ~•r paint that city lr*.ader5 hE~rt~ hav~:~ hranlnrerecl llonle since the .Tune 2tN)#3 t7r7od ---- thz~~ nod tcy use fed~~z al ir~w-izl- crrme hatrsing tai creci:ir,s to build ,~ttracti~le, cltrality apat*tznents for• peuflle ~~th jabs. 'T'he citir has carne to call prz~.lect ~ lil:r~ Fiatch':~ "~a-rlrk }i~rce tlcrusint;." ~+" t °ti; ~ Car:°la 1'tfl~e, di- ' ~ rector rrf rrffor~dt~i~le ";_.. retltal prc}dut~tiarl `~ j ~ti'itl'1 t11P 1CJli!~~ la'3rrarlCE' ~'~ttahorit~'. 4aid the ~~' t~rlrkstnnt.~sati~tlllar~ "hc~ttsirlr: for t~°ur kirl~ ~~ ~i Parllrlies. Sho r~(~tc~ci IUef~tit~t~r!loo~~ that some of the f'r;rl- el•al fualdirl~ is corxt- a.~scc~~tlc~r' ink; to Cht~ ~proje(~i to cre:rste jtlh5 to belle the r~~rtion's strutglint; c~conrlm,v. 1~licha(}! tlichards, prr~sidetlt ctf the t)akh.ill .lacksozl rZert;hbcrrhood ~lssocitttiarl, said the 13rickstorles will ~a ltp in a spot in thEr nf~€;tl- borhrrr~d I'rcrrn cw}lich }people rt,~il_I be able to ~r4rlk to G~=nark ztt noar'tly i1'ter•cy ~'Ierli.crrl Canter and tl1r~ rio~rrlto~~rn, ^ G.,.r,.;ycnts ?'r::~ 34>'£t-$312 r~r r u. V ~ rr~, S rs, ; ~.i m~csm r. +xur= Crystal laGiudBCd~The Gazette