2022 Neighborhood and Development Services Annual Report

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City of Iowa City 410 E. Washington Street, Iowa City, Iowa 52240

City of Iowa City, IA Neighborhood and Development Services 2022 Annual Report

www.icgov.org/NDS

Mission Neighborhood and Development Services (NDS) works to create community and find solutions that promote healthy neighborhoods and a vibrant business community.

www.icgov.org/NDS

Contents

4 About Iowa City, Iowa Community Profile

8 NDS Overview

NDS Management Team

9 Development Services Urban Planning

Building Inspection

12 19

Highlights

20 Neighborhood Services Housing Inspection Services

20 24 27

Housing Authority

Community Development Housing Rehabilitation 29 32 Metropolitan Planning Organization of Johnson County (MPOJC) Major Projects 33 Grant Awards Received for Iowa City 34 Objectives and Performance Measures 35

Cover photo: The Nest Iowa City, 123 E College Street

410 E. Washington Street, Iowa City, IA 52240

City of Iowa City

service is provided by the mainline of the Chicago, Rock Island and Pacific Railroad. The Iowa City Transit, Coralville Transit, and the University of Iowa’s Cambus system provides public transportation to the metropolitan area.

www.icgov.org/NDS

About Iowa City, Iowa Iowa City is a dynamic and growing community with quality medical care facilities, superior educational opportunities, and stellar recreational and cultural amenities. Community Profile Location and Demographics Iowa City serves as the County seat for Johnson County, and lies at the intersec tion of Highways 80 and 380 — approximately 115 miles east of Des Moines, 20 miles south of Cedar Rapids and 55 miles west of Davenport (Quad Cities). Iowa City is the 5th most populous city in Iowa, and is positioned at the southern end of the Iowa City-Cedar Rapids region, which has a combined population of over 450,000. Iowa City experienced a 10.3% increase in population since 2010. It is anticipated that by 2050, the City’s population is projected to grow to 103,118, an increase of over 28,000 residents.

Sources: US Census 2000, 2010, ACS 2019

City of Iowa City

410 E. Washington Street, Iowa City, IA 52240

www.icgov.org/NDS

About Iowa City, Iowa

Post Secondary Education, Fall 2022 University of Iowa (a Big 10 University)

# of Students

31,317

Language Use in Iowa City Language other than English spoken at home (age 5+ years)

% of Population

18.60%

Common languages the City provides translations for: Spanish, French, Mandarin, Arabic

Due to the large student population at the University of Iowa, the urbanized area has proportionally more residents between 20 and 24 than other urbanized areas in the state. Cities in the urbanized area have become more racially and ethni cally diverse in recent years. Iowa City and Johnson County are generally more racially diverse than Iowa as a whole, but still have a majority White population.

Sources: US Census 2000, 2010, ACS 2017-2021 5-year estimate

410 E. Washington Street, Iowa City, IA 52240

City of Iowa City

www.icgov.org/NDS

About Iowa City, Iowa

Johnson County Mean Annual Wage and Percent of Total Employment:

Employment The City’s major employers are a mix of corporate headquarters, health care and education. Thanks to the presence of a large university, Iowa City’s top employer is the University of Iowa. Iowa City is home to national and international Fortune 500 companies, small, family-owned businesses, and emerging and advancing entrepreneurs representing multiple industries.

Principal Employers - 2020

# of Employees

University of Iowa & University of Iowa Hospitals and Clinics

29,860

Iowa City Community School District Veterans Administration Medical Center

2,289 2,119 1,348 1,048

Hy-Vee Inc.

Mercy Hospital

Proctor and Gamble

976 885 731 719 612

ACT Inc.

City of Iowa City

NCS Pearson

Johnson County

City of Iowa City

410 E. Washington Street, Iowa City, IA 52240

www.icgov.org/NDS

About Iowa City, Iowa

Iowa City Area 2020 Recognition and Accolades + Ranked #1 for Best College Town in America ( Reviews.org ) + Named One of the Best Cities for Creatives ( Thrillist.org ) + Ranked #4 Best Place to Live in America ( Liveability.com , 2019) + Iowa City earned the top score for municipal support of LGBTQ rights (Human Rights Campaign’s 2018 Municipality Equality Index)

Fast Facts +

Total Area: 25.6 square miles

Median Household Income: $51,925*

Persons Living in Poverty: 26.8%

Number of Households: 30,380

Number of Housing Units: 33,074

Owner-Occupied Units: 46.5%

Rental-Occupied Units: 53.5%

+ Median Value of Owner-Occupied Housing Units: $230,700 + Homeowner Vacancy Rate: 1.6% + Rental Vacancy Rate: 4.9% + Median Gross Rent: $1,030

* Includes householders under age 24 that may include students. Sources: US Census Bureau, ACS 2017-2021 5-year estimates

410 E. Washington Street, Iowa City, IA 52240

City of Iowa City

www.icgov.org/NDS

NDS Overview Neighborhood and Development Services (NDS) Administration is responsible for oversight and support of the department’s four operating divisions, Administration, Development Services, Neighborhood Services (including the Housing Authority), and the Metropolitan Planning Organization of Johnson County (MPOJC). The revised budget for FY22 was $42.9 million due to the receipt of American Rescue Plan Act (ARPA) and CARES Act funds. The FY23 adopted budget is $18.7 million.

At Glance FY22 Budget Employees

$42.9 million

46.30 FTE

NDS Management Team (Total 46.30 FTE, includes 1.30 FTE Administration)

Tracy Hightshoe Director

Metropolitan Planning Organization of Johnson County (5.20 FTE)

Development Services (13.30 FTE)

Neighborhood Services (26.50 FTE)

Kent Ralston Executive Director and IC Transportation Planner

Danielle Sitzman Development Services Coordinator

Erika Kubly Neighborhood Services Coordinator

Emily Bothell Senior Associate Transportation Planner

Building Inspection

Housing Inspection

Tim Hennes Senior Building Inspector

Stan Laverman Senior Housing Inspector

Iowa City Housing Authority

Urban Planning

Anne Russett Senior Planner

Rachel Carter Housing Administrator

City of Iowa City

410 E. Washington Street, Iowa City, IA 52240

www.icgov.org/NDS

Development Services The Development Services Division is respon sible for facilitating the development process from comprehensive planning to annexation, zoning and subdivision, site plan, building

Staffs the following boards/commissions: + Planning and Zoning Commission + Historic Preservation Commission + Board of Adjustment + Board of Appeals

Plan and administers zoning, subdivision and historic preservation regulations. The guiding principle of these regulations and policies is to preserve and enhance the best qualities of the City’s existing residential, com mercial, and employment areas while promoting new development opportunities that create long-term value for the community. The Division fulfills state statutory requirements pertaining to zoning, development, and historic preservation. Urban Planning provides staffing for the following boards and commissions, which are associated with developmental regulations and zoning. Staffing includes preparation of agendas and information packets, notification letters, minutes, and preparation of ordinances, resolutions and historic preservation certifi cates related to proposed construction, and attendance at all meetings. The Planning and Zoning Commission is charged with holding public discussions and providing recommendations to City Council on development-related applications including Comprehensive Plan updates, annexations and requests for rezonings, subdivisions and code amendments. The Board of Adjustment reviews requests for special exceptions, variances and other appeals pertaining to the Zoning Code. The Historic Preservation Commission conducts studies and implements regulations designed to promote the preservation of historic landmarks and districts. The primary duty of the Historic Preservation Commission is to review proposed building projects in historic and conservation districts. + + +

permit, building inspections, and the final certificate of occupancy. The Division is also responsible for zoning code related inspec tions and enforcement; local administration of state and federal regulations such as floodplain management regulations; historic preservation programs, administration of the Sign Code, minor modification applications, temporary use permits, and other local permits; research, recommendations, and developing code amendments to address City Council and/or City Manager’s Office direc tives such as the Affordable Housing Action Plan, the Climate Action Plan, and the Equity Toolkit. The Division also interacts regularly with other local organizations such as the Iowa City Downtown District, the Iowa City Homebuilders Association, the Iowa City Area Association of Realtors, Friends of Historic Preservation, and Neighborhood Associations. Urban Planning The Urban Planning staff promotes sustainable growth and development within the City by applying the vision, goals, and strategies of the Comprehensive

410 E. Washington Street, Iowa City, IA 52240

City of Iowa City

www.icgov.org/NDS

Urban Planning Activities Planning & Zoning Commission FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 Average Annexations 1 3 2 1 0 1 0 1 1 2 1 Rezonings 29192914202616 6 9 8 18 Preliminary Plats 7 11 9 6 6 11 4 6 3 3 7 Final Plats 0 0 14 18 2 0 6 5 4 4 5 Code Amendments 11 11 3 4 9 5 3 6 6 6 6 Comprehensive Plan Amendments 6 2 2 4 3 3 2 0 2 2 3 Right of Way Vacations - - - - - - - - - 3 3 County Zoning Items 2 3 2 4 6 0 5 8 7 3 4

Development Services

Urban Planning staff works with prospective applicants to review requirements for new development and construction and to create solutions for properties that confront obstacles to development, renovation, or reuse. Once an application is filed, staff reviews the proposal, coordinates feedback from various departments, and writes reports, including recommen dations to boards and commissions. Urban Planning staff also participates in design review applications for areas such as the Riverfront Crossings District. In 2020 one FTE was moved from Building Inspections as a Development Specialist to Urban Planning as an Associate Planner. This position continued to conduct site plan reviews and floodplain management as well as other Urban Planning activities. 2022 Urban Planning Activity For the third year in a row, the overall current planning case load activity in 2022 for Urban Planning work, such as annexations, rezoning, and platting, was below the running average. However, work on several in-fre quent and multi-year long-range planning projects was completed. This included an update to the Southwest District Plan, in anticipation of the extension of public sewers. Long-range planning requires significant engagement with the community, data analysis, and drafting of multiple plan documents. Urban Planning activity is tracked and reported on a fiscal year (July-June) basis. Annexation , the process by which land is added to the City, occurs infrequently. Historically, most undeveloped land is not annexed into the City by its owner until just prior to its development. Property tax rates are usually lower in the unincorporated County and land is often

Board of Adjustment Special Exceptions

FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 Average

13 11 16 10 8

7 0 0

6 13 11 15

Appeals

1 0

2 1

0 1

0 0

1 0

0 0

1 0

0 0

Variances

Development Activity Metrics

FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 Average

Acres Annexed

20 85 24

- -

19.8 18.6 0.0 7.9 0.0 35.29 3.6 76.52

Acres Zoned Residential Acres Zoned Commercial Acres Zoned Mixed-Use / RF Crossings Acres Zoned Commercial / Office Residential Lots Final Platted / Created Commercial Lots Final Platted / Created

- 125.5 119 13.7 171.0 80.0 72.1 37.2 60.95 - 85.9 7.98 1.00 0.70 26.90 0 17.68 55.03

35.1 2.48 25.21 5.08 5.30 2.75 5.90 0.13

85.9 0.98 0.00 0.00 0.00 0.00 0.00 0.00

101

150 335 23 67 32 83 59 59

19 12 0

Historic Preservation Commission FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 Average Project Reviews 93 108 83 86 90 102 100 96 94 105 96 Additional Landmarks 1 2 1 1 1 6 5 2 6 0 3 Additional properties in historic/conservation districts 39 265 0 0 0 0 0 0 1 0 31

Properties rehabed, restored, or converted through adaptive reuse

24 25 30 22 24 24 24

City of Iowa City

410 E. Washington Street, Iowa City, IA 52240

www.icgov.org/NDS

Development Services

used for agricultural purposes up until the time that is sold for development. Additionally, unlike other cities, the 2008 recession did not result in a large inventory of improved but not developed lots in Iowa City. Over the past 10 years the average is one event adding between 10-20 acres of land. In 2022 a large annexation of 76 acres occurred on the west side of the city. This was for potential future commercial development along IWV Road. The number of rezonings , the process that allows for changing the use of a property, remained low for a third year in 2022. Only eight (8) rezonings were completed in 2022 compared to the 10-year average of 18. This is a slight decline from the year before. Rezoning cases filed in 2022 included new residential greenfield development, residential/ commercial infill development, redevelopment in Riverfront Crossings, historic overlays, and existing developed property to facilitate its redevelopment. Previous years of abnormally heavy rezoning activity occurred in 2013-2018 during which the City itself initiated several rezonings to implement a master plan for the Riverfront Crossings area and the adoption of the Riverfront Crossing Form Based Code. More recent redevelopment in the Riverfront Crossing District has focused largely on multi-fam ily housing desirable to University of Iowa students. Individual lots are created via the subdivision platting process. New first-time development of vacant land requires land to be platted to create lots while re-development often occurs on already created lots. 2022 had the lowest levels of

residential lot creation in more than 30 years. The number of lots produced were well below the aver age lots platted from 2012 to 2021, which could accommodate 128 single-family, 7 duplex, and 136 multi-family units annually. The chart below shows residential lots subdivided by type from 2011 to 2021. In addition, building permit activity continues to outpace the creation of new lots which diminishes the overall supply. If residential growth continues at this pace, the City will only accommodate up to 6,254 new residents by 2030, compared to a projected demand of 10,240 new residents. While redevelopment of existing lots can provide additional housing through increased density, the City will still likely experience unmet demand and deplete its supply of all vacant lots in the process unless lot creation and redevelopment accelerates soon.

Subdivision platting in the County near the City’s borders continued to remain high due to recent changes in the County’s Comprehensive Planning and Future Land Use Map that increased areas for residential and commercial development in the County. Such activity is regulated through a shared agreement with the County called the Fringe Area Agreement (FAA). Many of the appli cations in 2020 were out of compliance with the existing agreement. In 2021, Staff completed the process to update the FAA. This included analysis of past land use patterns and projection of future growth patterns to establish a growth boundary area. The new agreement redefines the role of each jurisdiction based on this growth boundary area giving more control to the City closer to its borders.

410 E. Washington Street, Iowa City, IA 52240

City of Iowa City

www.icgov.org/NDS

Development Services

Iowa City has thirteen (13) Historic Preservation or Conservation Districts which were established begin ning in the mid 1980s. Districts range in size from one to more than twenty (20) blocks in size. The last District was established in 2014 as the Goosetown/Horace Mann Conservation District. Throughout these years and since 2014, historic preservation activity has continued in the form of historic landmark designation of individual properties. Two landmarking applications were com pleted in 2022 including properties on Bowery Street and E. Davenport Street. Once designated, exterior changes to properties located within a District or landmarked are reviewed by the Historic Preservation Commission. To support properties designated as historic, the City pro vides grants and loans of up to $5,000 per property per project for qualified exterior rehabilitation or preservation projects under the Historic Preservation Fund Program. The Program is funded with $42,000 from the General Fund annually and fully utilized each year. Building Inspection The Building Inspections Services staff is responsible for facilitating the site plan review process, building permit review, building inspections, and final certificates of occupancy. Building Inspection Services is also responsible for enforcement of codes and ordinances regulating the protection of the public health, safety and general welfare as it relates to the built environment and maintenance of existing structures. Review and issuance of all permits for new construction, additions, alterations, repairs, and signs are key functions. Building Inspections Services enforces the following construction codes:

Total Value of Construction (in millions) 10 Year Average

CY 2013 CY 2014 CY 2015 CY 2016 CY 2017 CY 2018 CY2019 CY2020 CY2021 CY2022

$188.1

$184.9 $152.6 $138.3 $388.4 $216.8 $192.8 $231.5 $87.3 $135.5 $152.7 - 9.3% -17.5% -9.4% 180.8% -44.2% -11.1% 20.1% -62.3% 55.2% 12.7%

2018 International Building/Residential Code (adopted with local amendments) 2018 International Mechanical Code (current State adopted code) 2018 Uniform Plumbing Code (current State adopted code) 2018 International Fire Code (adopted with local amendments) 2017 National Electrical Code (current State adopted code)

2012 International Energy Conservation Code (current State adopted code) Accessibility Code (current Federal and State adopted code; local amendments for visitability/adaptability)

In addition to the above codes, the Building Inspection Services Office enforces the zoning, reviews and approves sign permits, and pro vides key staff support for the Design Review Committee. Building Inspections Services also provides staffing for the Board of Appeals. The Board of Appeals hears and decides appeals of

City of Iowa City

410 E. Washington Street, Iowa City, IA 52240

www.icgov.org/NDS

Development Services

orders, decisions or determinations made by City staff relative to the application and interpretation of the Iowa City Building, Electrical, Mechanical, Plumbing, Fire and Housing Codes. 2022 Permit Activity Iowa City requires building permits for new building construction and most existing building repairs and remodel projects. Data regarding the type of project and its valuation is collected at that time. Valuation is not building permit fee revenue or market value, but the estimated average construction cost of a project based on a standardized per square foot estimate using typical construction practices. Building permit activity is tracked and reported on a calendar year basis. Construction continued to be impacted by the COVID19 pandemic which affected labor and manufacturing activity, disrupted supply chains, raised construction material costs, and created economic uncertainty for builders and buyers. Acclerating inflation and rising interest rates also impacted home sales. Permits in most categories declined and were below the 10-year average. 1,851 total permits were applied for in calendar year 2022. This included construction related permits as well as site plan, sign, liquor, and temporary use permits. This is a decrease from 2,130 permits applied for in 2021 and below the 10-year average of 2,288 permits. $152.7 million total value was reported for all permits in calendar year 2022. Despite the decline in permits, this was an increase in project valuation. The pandemic year of 2020 was the worst year in project valuation reported since the three years immediately following

the Subprime Mortgage Crisis and Great Recession of 2008. During that year there was a 62% decline in project values undertaken from the previous year, and $97 million dollars less than the 10-year average valua tion. 2021 and 2022 permit activity made up for some of this decline but 2022 was still $35 million below the 10-year average. While permit activity during the pandemic in 2020 shows a noticeable decline, there was an equally unusual increase in the previous years from 2016 to 2018. During that timeframe, construction activity jumped to more than $388 million, more than double the previous 10-year average at the time of $135 million. These swings in activity largely reflect development interest in the Downtown and Riverfront Crossings area. In addition, the construction phase on large projects often also spans several calendar years. 1. Single-family Detached and Attached (Duplex) Home Building: 97 new single-family detached dwellings were applied for in calendar year 2022. This is a decline from the previous year and below the 10-year average. Over nearly the past 20 years, new single-family detached home construction has averaged 130 new units per year. Year to year production has varied widely with annual rates bottoming out at 80 units in 2011 and 2019 and climbing back up to the mid 170s in between. The highest number of new applications was 193 units in 2003. The past year indicates a setback from the previous three-year recovering trend. Historically, Iowa City building permit activity is dominated by construction of three main categories:

Total 2022 permit value $152.7 million

1,851 Total permits applied for in 2022 A decrease from 2,130 in 2021 and below 10-year average of 2,288

410 E. Washington Street, Iowa City, IA 52240

City of Iowa City

www.icgov.org/NDS

Development Services

In 2022, total project value of new single-family housing construction was $40 million. The per unit value in 2022 was $416,860. This is well above the 10-year average and the highest on record since 2003 and shows a continuation of the inflationary trend identified in 2021. Compared to the Bureau of Labor Statistics annual Consumer Prices Index (CPI) and Construction Price Indexes from the US Census Bureau’s Survey of Construction (SOP), new single-family dwelling valuation per unit in Iowa City follows the same generally increasing pace of inflation. Year to year differences are greatest between 2010 and 2016 where the local value fluctuates widely. Local value is self-reported by builders at the time of permit application. In the same time period, permit activity also varied widely indicating other changes in the local market. The average trend line of the three measures are shown to represent overall trends regardless of potential misjudgments. Starting in 2011, the local value trend line exceeds the percent increase of CPI for the first time and begins to overtake the SOP metric. This indicates that overall, construction value inflation was greater than inflation in the rest of the economy and a little bit more so in the local construction market than the national one. All three metrics indicate a rapid increase in inflation from 2020-2021. New duplex construction is a small portion of the new single-family housing total. Only one (1) permit for duplex construction was issued in 2022 for a total construction of two dwelling units. The average number of duplex permits permits per year from 2009-2022 is five (5). The highest year of

City of Iowa City

410 E. Washington Street, Iowa City, IA 52240

www.icgov.org/NDS

Development Services

duplex permit activity was 2011-2012 with nine (9) and eight (8) permits per year respectively. Similarly, alteration, remodel, and repair construc tion activity on existing residential buildings is a small percentage of the overall residential project valuation per year. Typical valuation of reinvest ment ranges from $5 million-$9 million annually . That’s approximately 10-25% of the total amount of residential valuation annually. In 2022, the amount of reinvestment was 23% of the total valuation of single-family construction, or $12.6 million.

410 E. Washington Street, Iowa City, IA 52240

City of Iowa City

www.icgov.org/NDS

Development Services

2. New Multi-family Dwelling Construction : Housing that contains more than two dwellings in one structure is con sidered multi-family construction. These dwellings may be owned or rented such as townhomes, apartments, or condominiums. As mentioned in the Urban Planning summary, in 2013 2014 the City initiated several rezonings to implement a master plan for the Riverfront Crossings area and the adoption of the Riverfront Crossing Form Based Code. This is reflected in the uptick in new multi-family construction permits and valuation in 2013-2017 for projects using the

“The Rise at Riverfront Crossings” by Alan Light (licensed under CC BY 2.0)

City of Iowa City

410 E. Washington Street, Iowa City, IA 52240

www.icgov.org/NDS

Development Services

new zoning available to them to build new large buildings near downtown. The Riverfront Crossings Form Based Code also continued to encourage the trend for multi-family housing to be combined in multi-story buildings with other uses such as retail, office, or hotel and categorized as “mixed-use” structures. The valuation of multi-family or mixed-use projects is more dependent on the scale or location of a development project than the overall number of permits issued. Therefore, the trend line fluctuates more with number of dwelling units than with permit numbers. Such projects often take more than one construction season or permit year to complete with developers finishing one before beginning another resulting in a ‘lumpiness’ or rise and fall of valuation from one year to the next.

410 E. Washington Street, Iowa City, IA 52240

City of Iowa City

www.icgov.org/NDS

Development Services

Projects Completed or Underway Since Adoption of RFC Form Based Code - 6/3/2014 Completed Address Date The Rise (CA Ventures) 435 S. Linn Street 2015 316 Madison (Graves) 316 Madison Street 2015 Riverside West (Hannick) 629 Riverside Drive 2015 Tate Arms (Clark) 912 S. Dubuque Street 2015 Phase 1 (Hodge) 602 S. Dubuque Street 2016 Sabin Townhomes 175 E. Harrison Street 2016 Orchard Court Lofts (Wade) 627 Orchard Court 2017 Phase 2 (Hodge) 620 S. Dubuque Street 2017 The Crossings (Miller) 1301 S. Gilbert Street 2017 Hieronymus Square/The Edge 314 S. Clinton Street 2018 The Crossings (Miller) 1141 S. Gilbert Street 2018 The Crossings (Miller) 1201 S. Gilbert Street 2018 Breckenridge 707 S. Dubuque Street 2018 Del Ray Ridge (THF) 628 S. Dubuque Street 2019 Phase 4 (Hodge) 225 Prentiss Street 2019 The Crossings (Miller) 1121 S. Gilbert Street 2019 Gilbane Development 700 S. Dubuque Street 2021-in progress

3. All Other New Commercial Buildings: All other non-res idential construction is considered as the final category

of permit activity. This may include retail and services buildings, industrial and manufacturing, healthcare, office, and schools. Like multi-family construction, these projects can be large in scale and value, tend to occur infrequently, and are completed one at a time. The exception recently has been the Iowa City School District’s implementation of their 10-year Facilities Master Plan beginning in 2015 to complete construction projects ranging from new school construction to renovation and expansion projects in all 27 schools in the District. In late 2017, voters approved an estimated $192 mil lion bond package to fund the second half of the approved 10-year Facilities Master Plan with planned completion by 2023. In November 2021, voters approved extending the tax levies to 2035 and 2051 to cover additional improvments identified in the School District’s Facilities Master Plan 2.0.

Approved-Not Started

Address

Date 2019 2019 2020

Orchard Court-Part II (Wade)

Benton Street/Orchard Court

Pentacrest Garden Apartments (Clark) 12 E. Court Street

The 908 Group

315 E. Prentiss Street

Scannell West Riverfront

Riverside Drive/Myrtle Avenue 2020

All dwelling types combined: 357 total new dwelling units (one- and two- family dwellings and multi-family dwellings) were issued in calendar year 2022. This is an increase from 2021 but still well down from 505 new units in 2019 and 436 units which is the 10-year average.

City of Iowa City

410 E. Washington Street, Iowa City, IA 52240

www.icgov.org/NDS

Development Services

The Tailwind Group rehabilitated and preserved three 19th and early 20th century buildings on E. College Street, in Iowa City’s downtown core. The building’s later additions were removed in the rear to construct an 11-story multi-family residential building. As part of the project, the prop erties were designated as Local Historic Landmarks and a below market lease provided to Riverside Theatre to facilitate their move and reinforce that Iowa City is the Greatest Small City for the Arts! Leasing for the residential building began in the fall of 2022. The developer paid a fee in lieu for the affordable housing requirement, an option under our tax increment finance agreement, for the proj ect. The City used these funds to purchase eight duplexes (16 homes) as part the South District Homeownership Program.

Preserved historic buildings on E. College Street

The Nest Iowa City, property of The Tailwind Group

Highlights Recent Accomplishments

Tailwinds - E. College Street - building construction review to preserve historic buildings and construct new 11-story residential building Gilbane Project - design review, site review, and building plan/construction review of new 6-story residential building in the Riverfront Crossings District Hired and on-boarded three new staff members (20% of entire Division staffing) due to turnover

Work in long-range planning, zoning, site, design review, and building code and inspection services supported continued development interest throughout the city including: Adoption of a form-based zoning code for a portion of the Southwest District where a planned sewer extension will allow for future greenfield development +

21 S. Linn Street - site plan review of new 13-story residential building in the Downtown

410 E. Washington Street, Iowa City, IA 52240

City of Iowa City

www.icgov.org/NDS

Neighborhood Services

Staffs the following boards/commissions: + Housing and Community Development Commission

The Neighborhood Services Division is respon sible for the administration of various housing services, housing programs and revitalization efforts that focus on sustaining healthy neighborhoods. The Division provides hous ing inspection services and administers the City’s federal Community Block Grant (CDBG), HOME, Housing Choice Voucher and Public Housing programs. Housing Inspection Services Housing Inspection Services (HIS) works with property owners, managers, and tenants to ensure rental units are in conformance with the Iowa City Housing Code. There are close to 20,000 rental units in Iowa City that get inspected annually or over a two-year period. Housing Code language establishes minimum health and safety standards necessary to promote the welfare of tenants and the general public. HIS also enforces certain zoning ordinances and responds to complaints of nuisance-related ordinance violations such as tall grass and weeds, snow, or inoperable vehicles. Housing Code Changes – Radon In January 2020, the City of Iowa City announced a new policy requiring all single-family detached and duplex rental properties to be tested for hazardous radon levels as a step towards improved public health. The ordinance, set to go into effect on July 1, 2020, was delayed due to COVID-19 and began July 1, 2021.

The City remains committed to radon testing and mitiga tion as important health measures. The Iowa Department of Public Health identifies radon as the No. 1 cause of lung cancer among non-smokers. Iowa’s indoor radon average of 8 pCi/L (picocuries per liter) is more than six times the national average. The EPA recommends that all Iowa homes be tested for radon and homes with indoor levels of radon over 4 pCi/L be mitigated. Due to the pandemic, the City delayed the new radon requirements to reduce contact between staff and pub lic to help limit exposure and the spread of COVID-19. Property owners were encouraged to use this extension to schedule radon inspections and take the steps needed for mitigation while units may be vacant. Radon testing completed in 2020 was accepted to document compliance with the new radon requirements that went into effect on July 1, 2021. The City has approximately 3,800 homes with rental permits subject to the policy. Roughly 2,800 units have been tested with another 1,000 to be tested by July, 2023. We anticipate all properties subject to this regulation that need to be mitigated will have the action completed by January, 2024. Neighborhood Stabilization Efforts in University Impacted Neighborhoods The State Legislature prohibited cities from adopting or enforcing any regulation or restriction related to occu pancy of residential rental property that is based upon the existence of familial or nonfamilial relationships between the occupants of such rental property, effec tive January 1, 2018. This was the principle tool on how many cities, including Iowa City, addressed occupancy

Top and bottom: The Housing Fellowship single family home rentals

City of Iowa City

410 E. Washington Street, Iowa City, IA 52240

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Neighborhood Services

of rental properties, especially in neighborhoods surrounding the university. In response to this change, the City implemented various measures to 1) ensure single-family detached structures and duplexes provide healthy and safe living environments for all occupants; 2) maintain neighborhood characteristics and housing options suitable for attracting a diverse demographic in our older single-family neighbor hoods; and 3) prevent the overburdening of City infrastructure and operational resources. The City started tracking the number of rental permits for single family and duplex dwellings in University impacted neighborhoods in November of 2017. As of June 2022, the City has not seen a dramatic increase in the number of rental permits for this housing type. The City also started track ing how many bedrooms were added in these neighborhoods. Approximately 31 bedrooms have been added to properties in these neighborhoods since 2017. In this past year, one bedroom was added in the Northside Goosetown neighborhood and two in the Bowery neighborhood. The following map and spreadsheet highlight the per centage of single family and duplex rental permits in each neighborhood as of June 30, 2022 as well as a recent history of activity compared to 2017. Note: to standardize how the City tracks these permits, in June of 2021 the single family and duplex definition changed to match the zoning code definition (one unit per lot for single family or two units per lot for duplexes). The impact of this change reduced the total # of properties in various neighborhoods.

CY2022 HIS Stats 1,779 neighborhood complaints 90% resolved in 14 days. Extended time to allow for removal of ash trees lowered this number from 92% in CY2021. 19,276 rental units New land use software implemented in FY21 allows for more accurate tracking of properties. The new system allows multi-family condo buildings to be tracked for rental license purposes and removed from the rental license rolls when no rental units are present in those buildings. This resulted in a slight decrease in reported rental units.

Key Dates 12/19/2017

In addition to several zoning and housing codes changes, the City adopted a Rental Permit Cap, Ordinance #17-4734, to prohibit addi tional rental permits issued for single-family or duplex dwellings in neighborhoods that exceeded more than the 30% threshold. 1/1/2018 Effective date of State prohibition on any regulation or restriction related to occupancy of residential property by familial status. 4/23/2019 State prohibits municipalities from adopting or enforcing rental permit caps. 4/29/2019 City adopts rental permit moratorium for the following neighbor hoods: Northside, College Green, Bowery, Longfellow, Mark Twain, RFC East, RFC West, Miller/Orchard and Brookland/Roosevelt, Ordinance #19-4793. 1/21/2020 City repeals rental permit moratorium, Ordinance #20-4819. 7/1/2021 City begins enforcement of radon requirements. 1/19/2023 City repeals rental cap to come into compliance with State code, Ordinance #23-4892.

410 E. Washington Street, Iowa City, IA 52240

City of Iowa City

www.icgov.org/NDS

Neighborhood Services

Percent of Single-Family & Duplex Units with a Rental Permit Iowa City Rental Impact Area - Updated as of June 30, 2022

Created by: Emani Brinkman

22% 19%

City Park

54% 53%

Northside Goosetown

54% 57%

13% 14%

College Green

Brookland Roosevelt

College Green

Melrose Emerald

City High

76% 76%

54% 59%

Bowery

16% 17%

65% 79%

28% 26%

Brookland Roosevelt

68% 50%

Melrose Emerald

RFC East

Longfellow

28% 26%

RFC West

28% 29%

Miller Orchard

18% 21%

RFC West

Mark Twain

Willow Creek

Bedrooms added in UIA in Single Family or Duplex Units with Rental Permits Rental Districts University Impact Area Current % (June 30, 2022) Baseline % (November 2017)

0 0.2 0.4 0.8

Miles

City of Iowa City

410 E. Washington Street, Iowa City, IA 52240

www.icgov.org/NDS

Neighborhood Services

Historical Data for University Impacted Neighborhoods Percent of Single-Family (SF) & Duplex Units with a Rental Permit (November 2017-original and June 2020-2022)

November 2017 Rental SF/ Duplex Units

November 2017 % Rental SF/ Duplex Units

June 2020 % Rental SF/ Duplex Units

June 2021 % Rental SF/ Duplex Units

June 2022 % Rental SF/ Duplex Units

November 2017 SF/Duplex Units

June 2020 Rental SF/ Duplex Units

June 2021 Rental SF/ Duplex Units

June 2022 Rental SF/ Duplex Units

June 2020 SF/Duplex Units

June 2021 SF/Duplex Units

June 2022 SF/Duplex Units

Neighborhood

City High

1,143

153

13.4%

1,136

165

15.0%

1,131

154

13.6%

1,136

155

13.6%

Melrose/Emerald

226

15.9%

227

18.0%

227

17.2%

227

17.2%

Willow Creek

765

135

17.6%

785

169

22.0%

787

155

19.7%

787

166

21.1%

City Park

544

117

21.5%

544

117

22.0%

545

112

20.6%

544

101

18.6%

Mark Twain

1,138

318

27.9%

1,133

330

29.0%

1,129

327

29.0%

1,135

323

28.5%

Longfellow

909

258

28.4%

891

253

28.0%

884

245

27.7%

902

237

26.3%

Miller/Orchard

310

28.4%

327

26.0%

308

27.6%

307

26.4%

Northside Goosetown

1,200

646

53.8%

1,190

636

53.0%

1,181

624

52.8%

1,187

631

53.2%

College Green

365

197

54.0%

370

217

59.0%

358

212

59.2%

375

213

56.8%

Brookland/ Roosevelt

297

161

54.2%

325

175

54.0%

280

170

60.7%

292

172

58.9%

Riverfront Crossings East Riverfront Crossings West

65.1%

67.0%

72.4%

78.6%

68.0%

63.0%

60.0%

50.0%

Bowery

238

181

76.1%

241

184

76.0%

231

175

75.8%

243

185

76.1%

Total

7,203

2,335

32.4%

7,231

2,414

33.4%

7,105

2,328

32.8%

7,179

2,333

32.5%

410 E. Washington Street, Iowa City, IA 52240

City of Iowa City

www.icgov.org/NDS

Neighborhood Services

Voucher Assistance Form of Assistance

Cross Park Place, a Housing First project of Shelter House

# of Vouchers

Housing Choice Vouchers

1,166

Non-elderly Disabled (NED) Vouchers Veterans Supportive Housing (VASH)

100

95 78 69 60

Mainstream

Emergency Housing Vouchers

Project Based Vouchers

Total

1,568

Housing Authority The Iowa City Housing Authority (ICHA) acts as a com munity leader for affordable housing, family self-suf ficiency, and homeownership opportunities. ICHA provides information and education, housing assis tance, and public and private partnership opportunities. Housing Choice Voucher Program ICHA administers a total of 1,568 vouchers consisting of 1,166 unrestricted vouchers, 100 Non-elderly Disabled (NED) Vouchers, 95 Veterans Affairs Supportive Housing (VASH) vouchers, 78 Mainstream Vouchers, 69 Emergency Housing Vouchers, and 60 Project-Based Vouchers for Cross Park Place and 501. These vouchers serve households not only in the City of Iowa City, but also throughout Johnson County, Iowa County, and Washington County North of Highway 92.

In 2022, ICHA continued its partnership with Shelter House with the addition of 36 Project Based Vouchers at the 501 Project. Since the start of Calendar Year 2016, the ICHA has added 185 vouchers serving per sons experiencing homelessness. These allocations were competitive and the ICHA partnered with Shelter House when applying for the new vouchers. In 2022, ICHA applied for 18 Stability Vouchers in conjunction with Shelter House to serve households experiencing homelessness with significant barriers.

94% ICHA voucher utilization rate

(81.47% statewide average)

During 2022: $8.1 million ICHA Housing Assistance Payments

+ ICHA paid out $8.1 million in Housing Assistance Payments during 2022. This primarily consists of pay ments to local landlords who rent to voucher holders, but also includes escrow savings deposits for Family Self-Sufficiency participants.

City of Iowa City

410 E. Washington Street, Iowa City, IA 52240

www.icgov.org/NDS

Neighborhood Services

Household Characteristics (All Relevant Programs) Total Families as reported to HUD: September 1, 2020 — December 31, 2021. Source: HUD’s Resident Characteristics Report (RCR) Household Characteristics (All Relevant Programs) Total Families as reported to HUD: October 1, 2021 — January 31, 2023 Source: HUD’s Resident Characteristics Report (RCR) Family Type by Head-of-Household (HOH) Count % of Total 834 57% Non-Elderly/Non-Disabled HOH 622 43% Total 1,456 100% Count % of Total Family Type by Head-of-Household (HOH) Disabled and/or Elderly HOH 815 597 58% 42% Non-Elderly/Non-Disabled HOH Total 1,412 100%

Voucher Distribution Point-in-Time count 2/24/2023: Of the total active vouchers, 1,013 were utilized in Iowa City (68%), 178 in Coralville (12%), 93 in North Liberty (6%), and 127 (8%) in other Johnson County Municipalities or port-outs.

Public Housing and City-Owned Affordable Housing

Public housing provides decent and safe rental housing for low- income families, the elderly, and persons with disabilities. Iowa City currently owns 86 public housing units throughout the City that are managed by ICHA staff. Units are located at scattered sites and constructed to conform and blend into existing neighborhoods. Five of those units, located at The Chauncey in downtown Iowa City, were added to the City’s affordable housing portfolio in 2020. ICHA also manages 10 units of City-owned affordable housing at Peninsula Apartments and recently acquired six units at Augusta Place.

Family Composition by Household Households without children Family Composition by Household Count Households without children 824

% of Total

782 630

55% 45%

57% 43%

Households with Children Households with Children

632

Total Total

1,412

100%

1,456

100%

Race by HOH White HOH Race by HOH

Count

% of Total

664 706

47% 50%

City-Owned Affordable Housing Housing Type

Black/African American HOH White HOH Black/African American HOH All Other Races HOH

670 743

46% 51%

# of Units

Total

1,412

100%

All Other Races HOH

Public Housing

86 10

Total

1,456

100%

Peninsula Apartments

Ethnicity by HOH Non-Hispanic HOH Ethnicity by HOH Non-Hispanic HOH Hispanic HOH Total

Augusta Place

1341

95% % of Total

Count

Total

102

1383

95%

1,412

100%

Hispanic HOH

City of Iowa City Less than 1% of assisted households (total = 14) report Family Investment Program (FIP) as th assistance to low income families with children while they move toward self-sufficiency. 25 Voucher Distribution: Point-in-Time count 1/4/2022 : Of the total active vouchers, 975 were utilized in Iowa City (71 Johnson County Municipalities or port-outs. Total 1,456 100%

410 E. Washington Street, Iowa City, IA 52240

FOR RENT

www.icgov.org/NDS

Neighborhood Services

Affordable units in the Peninsula neighborhood, 1310 Foster Rd, Iowa City

Family Self-Sufficiency Program The Family Self-Sufficiency (FSS) Program promotes self-sufficiency and asset development by providing supportive services to participants to increase their employability, to increase the number of employed participants, and to encourage increased savings through an escrow savings program. In 2022, FSS served 221 households, 92% of which have an escrow savings account and 59% of which have increased income. The average escrow savings balance is over $6,800. In 2022 the program saw 40 FSS gradu ates who accomplished their program goals and received full access to funds in their escrow savings account.

FSS Program Statistics Family Self-Sufficiency (FSS) Program Total participants = 221 Participants with escrow savings account Participants with increased income FSS Graduates in Calendar Year 2022

Count

% of Total

1310 FOSTER RD. IOWA CITY, IOWA 203 92% 152 69% 40 -

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City of Iowa City

410 E. Washington Street, Iowa City, IA 52240

For more information, contact Patricia MacKay 410 E. Washington Street, Iowa City, IA | 319-887-6069

No smoking in building, including common areas and apartment

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