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HomeMy WebLinkAbout~Master - Special Meeting of the Ames City Council 10/19/1993MINUTES OF THE SPECIAL MEETING OF THE AMES CITY COUNCIL AMES, IOWA October 19, 1993 The Ames City Council met in special session at 5:10 p.m., October 19, 1993, in the City Council Chambers in the City Hall, 515 Clark Avenue, pursuant to law with Mayor Curtis presiding and the following Council Members present: Campbell, Hertz, Hoffman, Parks, and Wirth. Coun. Brown arrived at 5:20 p.m. CONSENT AGENDA: Motion by Hertz, Second by Parks, to approve the following items on the Consent Agenda: Motion to approve renewal of the following beer and liquor licenses: a. Class E Beer - Jarco Stores, 104 Lincoln Way b. Class E Beer - Quicktrip #537, 111 Duff Avenue RESOLUTION NO. 93-390 approving final plat for Speck Subdivision Pete Cooper Subdivision a. RESOLUTION NO. 93-391 approving final plat for Pete Cooper Subdivision b. RESOLUTION NO. 93-392 approving agreement for RISE Grant with Iowa DOT Dayton Park Subdivision a. RESOLUTION NO. 93-393 approving agreement for easements, platting, and improvements for Dayton Park Subdivision b. Reaffirmation of RESOLUTION NO. 81-211 approving Dayton Park Subdivision RESOLUTION NO. 93-394 approving a subordination agreement between the City of Ames and the Iowa Department of Economic Development Roll Call Vote: 5-0. Resolutions declared adopted unanimously, signed by the Mayor, and hereby made a portion of these minutes. PART II OF WORKSESSION ON AFFORDABLE HOUSING: Housing Coordinator Vanessa Baker-Latimer reviewed data and definitions prepared by Staff in response to Council's requests at the Affordable Housing Workshop Part I in May 1993, and distributed a handout entitled "Affordable Housing Workshop Outline, Parts 1 and 2." She reviewed definitions of a housing unit, household, and family, noting HUD definitions vs. Census definitions. There was discussion regarding the future need to reconcile those definitions with the ones used in the Municipal Code for zoning purposes and for rental housing properties. Ms. Baker-Latimer reviewed figures showing a 3.17 total vacancy rate (owner and renter) in Story County. She said the estimated total of building permits issued for new construction for 1992 were 160 for single-family, with approximately 76 of those in the $60,000 to $79,000 range. She said for multi-family, the estimated total of permits was 19, with none below $100,000 and 12 in the $100,000-$299,999 range. She said those costs only included the cost of building materials and labor, but not the cost of land, electrical equipment, plumbing, fixtures, or landscaping. She said the only figures that were really in the $80,000 or less range were the permits issued for Ken Maril Road homes, which were all at $65,000. She said 11 building permits were issued for Ken Maril Road homes in 1991 and 13 in 1992. Ms. Baker-Latimer reviewed the number of units in Ames participating under the Section 42 (IRS) Tax Incentive Bond Program through the Iowa Finance Authority, figures on the number of demolition permits issued by the City, and information regarding housing moving costs. Noting Council had previously asked for information regarding various housing standards, Ms. Baker-Latimer reviewed HUD regulations setting forth basic Housing Quality Standards (HQS) which all units must meet before rental by program participants. She noted the HQS were contained in the handout booklet "A Good Place to Live" given to tenants participating in the Section 8 program before they inspect the rental unit. She said Section 8 criteria which needed to be addressed most often in Ames regarded chipping and peeling paint, regardless of whether or not lead-based paint had originally been used. She said rent plus utilities for 2-bedroom units could not exceed $475; for 3-bedroom units, the rent plus utilities limit was $600. Ms. Baker-Latimer reviewed other standards to be considered: Attachment A to the Handout, "Rehabilitation Standards" from the City's present Housing Rehabilitation Program under the Block Grant program, and Attachment B to the Handout, "Overall Quality & Condition Rating Guidelines" used by the City Assessor's Office. She said the DED's requirement for the Housing Rehabilitation Program was HUD's Housing Quality Standards. She said the City had adopted a little higher standards for that program, which was HQS plus some minimum standards of the Building Code. She reviewed how costs were prioritized for eligible Rehabilitation Program projects, saying the correction of violations of the City's building, mechanical, plumbing, electrical codes were priority 1 for funding; HUD requirements were priority 2; weatherization projects such as storm doors or insulation were priority 3; and cosmetic improvements were priority 4. Planning and Housing Director Brian O'Connell noted the City did not have to comply with every one of the standards described. He said the City has the ability to modify the housing standard dependent upon what it wants to accomplish. Ms. Baker-Latimer noted standards for FHA-backed Home Mortgage Insurance were included in Attachment C. She updated a chart shown at the previous worksession, which illustrated how much an individual can afford to spend on a home based on income limits and number of people in the family, by adding currently available housing stock in Ames at those price ranges. She said the total number of available housing stock in Ames at $56,000 or less is 637 units; the total number of families earning $23,600 or less is 2,243. She said the figures showed a gap in the number of housing units available from $27,000-56,000 compared to the number of families that are in that same price range. She said the total number of available housing stock at $83,000 or less is 1,650, but the total number of families earning less than $37,750 is 22,117. She noted the Story County Mayors Affordable Housing Report which would be coming out on October 27, 1993 had also identified a gap between what people can afford and what is available. Coun. Hertz asked Staff to provide comparable information on rental housing units. Coun. Wirth noted the Story County Mayors Report would include information on rental and owner-occupied units. Ms. Baker-Latimer reviewed the two definitions of Affordable Housing as discussed at the previous workshop, noting the definitions applied to both rental and owner-occupied dwelling units: Holistic Definition: Affordable Housing can be defined as housing stock available where the cost would not exceed 28-30% of the resident's total gross income, irrespective of income. 2 Targeted Population Definition: Affordable Housing can be defined as housing stock available where the cost would not exceed 28-30% of the resident's total gross income and where the income of the resident ranges between 50 and 125% of the Story County median income. Coun. Parks said he felt both definitions were very narrow. He said cost was only one of several factors which should be incorporated into this discussion, such as safety, quality, size, and energy efficiency. He said in addition, 54% of the residents in the community rent rather than own homes, and individuals at the lowest income levels would be looking for affordable rental housing. He said the Council should be looking at rental issues as the primary issue. He said when it came to purchased housing, they should consider safety standards that somehow parallel rental standards. Ms. Baker-Latimer reviewed the following past and present initiatives the City has taken regarding affordable housing, as well as the funding sources committed and the funds expensed for each: Phase I Affordable Housing Grant Program, Phase II Affordable Housing Grant Program, CDBG "Existing" Affordable Housing Grant Program, Rental Subsidy Housing Grant Program, and Special Purpose Affordable Housing Grant Program. Coun. Hoffman suggested that staff make that information available in the form of a brochure. She said many people don't realize the things the City has done to address these needs over the years. Coun. Parks agreed. Ms. Baker-Latimer noted there has been some form of rental subsidy in Ames since 1976. Mayor Curtis noted there was a possibility that 33 homes would be lost in a flood buy-out program. Coun. Hoffman said there was also the possibility of the University removing 200 units from Pammel Court without restocking the area. She suggested at some stage, ISU should be invited to work with the City on this issue. Coun. Hertz said she agreed with Coun. Parks that the greatest need will be in rental housing for the low-income level individual. Ms. Baker-Latimer said a consideration for Council would be whether they were talking about building low-cost rental housing or increasing money to pursue existing rental units. She said much of the rental property being built was in the higher-priced category that was beyond the limit of the subsidized program. She said while many landlords are willing to reduce rents to meet the subsidy limits in order to keep good tenants who are program participants, the shortage of on-campus housing increases competition for those units. Coun. Parks said he felt the rental housing inspection program and the down-zoning of the mid-80's have both impacted the local housing market over time. He said they needed a broader solution than what was defined by the City's corporate limits, and said the County needed to be part of the solution by providing multiple housing stock for locations outside the City limits. He suggested they may need to look at a joint participation program with surrounding communities. He said manufactured housing and mobile homes should be considered as part of the solution. He said he still needed a definition of "affordable." He said while there was a lot of substandard housing that could be brought up to meet adopted standards, the definition of "affordable" should take into consideration the costs involved in doing so. Coun. Wirth said the cost of replacing the unit needed to be balanced with the cost of the rehab. She 3 said that was one of the problems with taking out housing. Coun. Brown asked whether statistics were available on the number of rental units available before and after down-zoning. She expressed concern that affordable housing was being perceived as "substandard" housing. She said this was a very complex issue and she felt more statistics were needed before conclusions were drawn. Ms. Baker-Latimer suggested the Council arrive at a definition and then set objectives for a program to pursue that definition. Coun. Brown said the suggested definitions didn't address the gap that existed between income and available housing stock. There was discussion about adding language to the definitions to incorporate housing standards. Coun. Parks said he would like to see some degree of quality standards similar to the HUD standards included in a definition of affordable housing for owner-occupied, noting such standards would already be addressed in the Rental Housing Code. He said he was not suggesting a strategy to inspect owner-occupied houses. He said he was suggesting that when affordable housing arguments were used in discussions of zoning issues, for example, a measure of what it would take to bring those houses up to affordable standards should be used. Coun. Hoffman agreed and said that was why housing quality standards needed to be incorporated into the definition. Coun. Hertz said they would need to determine what the minimum standards would be. Mayor Curtis suggested the definition determine a liveability standard. Coun. Brown said a separate category for existing owner-occupied housing stock might be needed. She said existing owner- occupied housing of older vintage was the major concern. Council members discussed Page 16 of the handout, "What are the Elements that Need to be Evaluated to Determine an Affordable Housing Policy?" Planning and Housing Director Brian O'Connell suggested adding language to either definition as follows: Affordable housing can be defined as a housing stock that meets an established standard of the City, where the cost would not exceed..." He said at a future worksession, the staff could incorporate the elements discussed and provide Council with options as to what constitutes that housing standard. Coun. Wirth said they needed to deal with the targeted population definition. She said the people on the lower end of the median income scale were the ones that had the most difficulty finding houses and those housing units were the ones that were least likely to be increasing in number without some type of subsidized aid. Mayor Curtis said the figures in the Story County Mayors breakdown chart showed a fairly substantial gap in availability of housing for high income individuals as well. He said while the higher income individual probably had the wherewithal to solve the problem, the differential 4 numbers should be kept in mind. Coun. Brown said there was no market incentive to address the needs in the lower income area. She said it was not profitable enough, and that was what caused the problem. Coun. Wirth said if housing was not available at a reasonable cost, the lower-income individual wound up paying a non-proportionate amount of their income on housing. She said those in the moderate and upper income level could choose at which level they wanted to live. She said that statistic could not automatically be translated into need. Ms. Baker-Latimer reviewed other elements that needed to be evaluated to determine an affordable housing policy: 1. Is there a need to evaluate the viability of existing housing stock to determine which h o u s i n g units are worth preserving? 2. Is there a need to establish a maintenance ordinance to preserve the existing housing stock for both owner-occupied and rental housing? 3. Should the City provide incentives to construct, rehabilitate, relocate, or remove and replace existing affordable housing? 4. Are there factors that contribute to the affordable housing problems in Ames? 5. Should the City provide incentives for new construction of affordable rental housing and continue to provide incentives for owner-occupied? 6. Does the City, by its actions, create disincentives that prevent affordable housing units being built within new housing developments? 7. Are goals established by the City being implemented for providing housing for all segments of the population and the establishment of a community with a balance of jobs and housing? 8. Is it financially feasible to provide affordable housing in Ames? Will the dollars go further in other cities in Story County? Coun. Parks said he was unsure as to how comprehensive an evaluation should be conducted on the availability of existing housing stock. He said the evaluation should be done as issues containing affordable housing questions came to Council. Coun. Wirth asked how this evaluation would be conducted and by whom. There was discussion of the process used by the City Assessor's office used to rank on a condition from "Poor" to "Excellent," and it was noted that data was available. Mr. O'Connell suggested housing had be dealt with in a land-use planning context. He said he felt if the City went through a planning process and designated various use categories around the community, but didn't address the housing issue, they would have missed the boat. He said he felt a citywide assessment using the City Assessor's data was going to be necessary. Coun. Wirth said she was not convinced that the Assessor's condition standards should be used, but they would provide a starting database for Staff to use. 5 There was discussion regarding the need for a replacement and relocation policy. There was discussion of possible joint participation programs within Story County for grant applications. Coun. Hertz asked whether the development of a Housing Authority had been considered to deal with some of these issues. Ms. Baker-Latimer said the City was designated as a Housing Authority under the Section 8 Program, and there was also a Central Iowa Regional Housing Authority that provides subsidy to Boone and Story Counties. She described how in larger cities, some housing authorities build and manage their own housing units, adding that it was a very expensive program that didn't always break even. Coun. Brown left the meeting at 6:45 p.m. Ms. Baker-Latimer reviewed what other cities are doing to promote affordable housing, as contained on Page 18 of the Handout. She said Council might want to consider some of these options in developing their own plan. She distributed a handout from the Story County Mayors Housing Report entitled "Ways of Increasing the Supply of Affordable Housing." Coun. Wirth complimented Staff on their presentation this evening. She said the Report from the Mayors Committee on Affordable Housing will be presented on October 27, 1993 at 7:30 p.m., most likely at the Story County Courthouse. Coun. Campbell suggested another worksession on this issue be scheduled before the Land Use Policy Plan consultants get too far along with the LUPP update. Coun. Parks agreed and suggested in the next worksession, 5 or 6 specific issues to be accomplished be identified. Coun. Hoffman asked that information packets be sent out in advance of that meeting. Coun. Wirth said she would hope that the next worksession could be scheduled for some time in November. RECESS: Mayor Curtis called a recess at 7:10 p.m. Coun. Parks left the meeting at 7:10 p.m. RECONVENE: The regular meeting reconvened at 7:15 p.m. PRESENTATION OF ANNUAL RESIDENT SATISFACTION SURVEY: Public Information Official Pam Vokolek presented a report on the 11th Annual Resident Satisfaction Survey, noting a correction on page 23 and 24 of the report. She said copies of the survey will be available in the Public Library and in the City Clerk's Office for the public's review. Ms. Vokolek said 500 resident satisfaction forms were sent out in early May, noting it was before the flood and before the street repair work of this Fall. She said 257 forms were returned, or just slightly over 51%. She said that was an all-time high for the eleven years of the survey. She reviewed the demographics of the respondents. Ms. Vokolek reviewed sections of the report, saying 95% of the respondents gave the City services either a "very good" or a "good" rating. She said 50% of the respondents said they would like to see the City spend more on street maintenance; Library and Animal Control Services also had 6 significant increases in the "spend more" category, but not at the 50% mark. She said 57% said they would pay either substantially more or a modest increase in property taxes in order to achieve spending preferences. Ms. Vokolek said the priorities that received the greatest percentage of "high" ratings were street resurfacing (42%) and Campustown parking (24%). She said the City received exceptionally high ratings in utilities and physical environment; 91% of the respondents felt the electrical service provided by the City was at least "good." She said the Water Utility received equally high marks. There was discussion regarding the possibility of reevaluating the entire survey and rewording of some questions. Motion by Wirth, Second by Hoffman, to accept the Annual Resident Satisfaction Survey. Vote on Motion: 4-0. The motion was declared carried unanimously. COMMENTS: Coun. Wirth said she had received a petition from residents in the area of the 1700 and 1800 blocks of Burnett, dealing with storm sewer problems, and would make sure the information was distributed to other Council members. ADJOURNMENT: The meeting was adjourned at 7:40 p.m. Sandra L. Ryan, City Clerk Larry R. Curtis, Mayor 7