AFFORDABLE HOUSING

AFFORDABLE HOUSING. In 1993 housing activists in Dubuque were considering fifty-one strategies to create more affordable housing in the city. The strategies were used to develop the city's one-year an five-year plans. The plan had to be developed to meet U. S. Department of House and Urban Development regulations. (1)

The needs survey indicated that elderly people made up a significant portion of residents needing housing assistance. An estimated 800 elderly earned less than half of the city's median income ($32,881). About 300 of those citizens paid half of their income for housing. Another finding found that about 2,000 non-elderly earned less than half of the city's median income with 800 paying more than half of their income for housing. A third fact was that 1,718 Dubuque homeowners earned between zero and half the city's median income. Dubuque had 750 people waiting for housing assistance at a time when the city helped about 900 people with housing costs. (2)

In addition to seeking federal funding for housing subsidies and homeowner programs such as Section 8, loans for rehabilitation and DREAMS, city officials were seeking federal funds for public housing for the poor, considering 1) a "workfare" training program to develop construction crews for help low-income residents rehabilitate buildings, 2) amending city housing codes to make it easier to move rather than demolish homes, and 3) continuing and expanding programs to help pay closing costs for first-time buyers. (3)

Many family specialists supported the idea that welfare families who purchase and maintain their own property had more incentives to stay off public assistance programs. One program to enable this in Dubuque allowed families earning less than $26,304 annually to buy their first homes with a $5,000 no-interest, five-year deferred payment loan. This helped pay "entry costs" of getting a loan such as appraisals and closing costs. (4)

In December 1993 the city council reluctantly began considering the issue. The council did not want the city to own the housing, administer the program, or commit any local tax revenue toward it. City staff responded that these conditions could be met with the city still eligible to obtain federal money for scattered-site public housing. The city could turn the money over to a nonprofit agency to own, maintain and operate the houses and duplexes. The city would not to legally responsible for the property if the nonprofit organization disbanded. (5)

Thoughts that the council were shattered at the end of December, however, when the council rejected a recommendation to investigate obtaining federal money. Among the recommendations cut from the city's comprehensive plan included an inclusive zoning requirement that would have forced some affordable housing in each new housing development, an ordinance that would have required developers to pay $10,000 when affordable housing was demolished and not replaced with affordable housing, and using federal community development money to purchae and hold land for future affordable housing development. (6)

See: DUBUQUE CASKET COMPANY

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Sources:

1. Eiler, Donnelle. "Housing Activists Eye 51 Strategies," Telegraph Herald, October 28, 1993, p. 3A

2. Ibid.

3. Ibid.

4. Eiler, Donnelle. "Housing Advocates Push Benefits of Home Ownership," Telegraph Herald, December 4, 1993, p. 1

5. Eiler, Donnelle. "Dubuque Considers Public Housing," Telegraph Herald, December 19, 1993, p. 3

6. "Housing Plan Diluted," Telegraph Herald, December 21, 1993, p. 1