AFFORDABLE HOUSING

Being researched

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 one-year and five-year plans to meet U. S. Department of House and Urban Development regulations. (1) A 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)

One of the efforts was led by Karen O'ROURE, spokeswoman for the Center for Public Ministry. At a meeting held in January, 1994 of twenty five Dubuque housing, church and banking officials opportunities and risks were laid out by Judy Dierenfeld, of the Iowa Community Action Association and David Discher of Iowa Institute for Low-Income Housing, Energy, and Telecommunications. The organizing group intended to use federal money, loans, and other investments to rehabilitate housing and rental units for low-income residents. They were informed that about $1.4 million was available state-wide in 1992 and an estimated $500,000 for 1994. Participants learned that competition for the money was not strong because local communities had not created a required local housing development group. The risk lay in choosing development projects that were financially viable. The Dubuque City Council announced it would not participate until more was known about the organization. (3)

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. (4)

Many family specialists supported the idea that welfare families who purchased and maintained 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. (5)

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. (6)

At the end of December, however, 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 purchase and hold land for future affordable housing development. (7)

In May 1994 it was announced that the city might consider using some of the 400 parcels of property it owned for low-income housing development. The property had been acquired through tax sales over many years and the city wanted it back on the tax roles. The city housing manager suggested that some of the property could be sold "at little or no cost" to private developers who could construct affordable housing. (8)

In July, 1995 Dubuque Housing Initiative officials announced that the organization had raised two-thirds of its 1995 goal of $28,500 to help provide affordable housing. Dubuque Housing, affiliated with Mercy Housing Inc., was the only non-profit affordable rental housing developer in Dubuque. It had developed and managed affordable housing the downtown area and planned to build 49 units of affordable housing in other areas of the city. Raising $20,000 was an important milestone for the organization. When the full $28,500 goal was reached, the Woodward Foundation was to make a $10,000 contribution. (9)

In December, 1995 Heartland Housing Initiative, formerly Dubuque Housing Initiative, received a $259,000 grant from the Federal Home Loan Bank of Des Moines. The project, construction of eight townhouses on 22 acres, located south of Crescent Ridge and east of English Mill roads, also received a $1.7 million loan from DUBUQUE BANK AND TRUST COMPANY which would be the first mortgage holder. (10)

In 2000 the Dubuque City Council had identified increasing the amount of owner-occupied affordable housing as its top priority and appointed an Owner-Occupied Affordable Housing Committee to research the issue. At a special meeting to review recommendations for producing more affordable housing, the council asked the committee for more information on the cost of its suggestions. The target household the committee wanted to help was a two-income household of four that was earning 90% of the median area household income of $40,780. According to the committee's report, this household desired a 1,100-1,300 square-foot home with attached garage and unfinished basement. The moderate-income household could not afford this housing. (11)

The Owner-Occupied Affordable Housing Committee had four task forces. The Housing Market Development Task Force recommended a city-sponsored model development to demonstrate ways to provide affordable housing. By building 25-30 homes, developers could negotiate lower unit material costs. The task force also suggested no-interest loans for sewer construction. The Land Development Task Force reported that rural residential growth had outpaced urban development for years. Opportunities existed for creating lower lot frontages, smaller lots and denser development while still providing quality of life. The recommendations of the Home Construction Task Force included changing construction ordinances and creating a resource guide for affordable construction. A limited construction force contributed to the expense. Lastly, the Downtown Living Task Force found the available space for owner-occupied housing was very limited. Within seventy blocks, only 54 spaces of undeveloped or underdeveloped residential areas were found on upper floors of commercial buildings. Only six of these were possible to convert into owner-occupied condominiums. (12)

By 2002 the Dubuque City Council had listed affordable housing as a top priority. A city-appointed Affordable Housing Committee established criteria and recommended incentives which balanced the demand for new development with adaptive re-use, availability of city money, consistency with long-range plans, prevention of urban sprawl and overall benefit to the city. The wisdom of the use of the committee came in June, 2002 when a developer proposed the construction of 105 single family houses along Seippel Road but requested incentives beyond what the committee had suggested. Following the committee's recommendations, the council at least initially rejected the construction keeping open the option of city staff working with the contractor to work within the guidelines. (13)

State action in 2003 led to the Iowa Legislature creating the State Housing Trust Fund (SHTF). The fund helped ensure decent, safe and affordable housing for Iowans through two programs. The Local Housing Trust Fund Program received at east 60% of the SHTF allocation to provide grants for organizations certified by the Iowa Finance Authority as a Local Housing Trust Fund. The remaining funding went to the Project-Based Housing Program which assisted in the development of affordable single-family and multi-family housing. Both funds were administered by the Iowa Finance Authority. (14)

Restoration at Five Points. Photo courtesy: Telegraph Herald

Between 2003 and 2014, the SHTF provided $49.8 million in affordable housing assistance that benefited over 15,200 Iowa families. The fund leveraged another $152.4 million in other funds or $3.06 for every dollar of State Housing Trust Fund investment. (15) Revitalization efforts in 2003 included work by GRONEN PROPERTIES/GRONEN RESTORATION in the FIVE POINTS area. The city had an estimated $200,000 of federal funding, grants and loans for restoration work in the vicinity which contained some of Dubuque's oldest and most affordable housing. The intent was to "spark a neighborhood renaissance" preserving social connections in addition to buildings. (16)

Photo courtesy: Telegraph Herald

The preliminary Community Equity Profile: Housing report released in May, 2015 identified many facets of affordable housing. The 2012 American Community Survey indicated at 77% of homeowners and 46% of renters in Dubuque lived in housing they could afford. The National Low Income Housing Coalition in 2014 reported that Dubuque workers earning the national minimum wage needed to work 77 hours per week to afford a two-bedroom apartment at a fair market value of $725.00. Only 33.9% of survey respondents who rented said they were living in their ideal housing situation compared to 81.5% of respondents living in a home. Most renters stated their desire to own a home. (17)

The report in 2015 also dealt with fair housing, the ability of all persons to have equal opportunity to be considered for rental units, purchase of property, and property insurance. The report found that most renters/tenants were unaware they had tenant rights when it came to discriminatory practices. Many were unaware of how or where to file claims when they had issues with their landlords. (18)

The area of "access" revealed many important problems in Dubuque. There were 2,585 households in the city earning less than 30% of the Area Median Income (AMI). According to the report there were 610 housing units affordable to households earning less than 30% of the AMI. This was less than 25% of the units needed to house that population. There were 1664 households deemed "cost burdened"--these paid more than 30% of its income in housing. (19) Gentrification, expired tax credits and lower federal assistance were generally thought to be responsible for a lack of non-subsidized rental housing. (20)

In 2015 Dubuque officials reported the city had spent nearly $9 million purchasing, refurbishing and re-selling more than one hundred homes in the Washington Street Neighborhood. Of these, forty-one had been rentals which were converted to single-family homes. While his supported city efforts to disperse the dense downtown population, the work had reduced the amount of affordable rental housing. (21)

The Guest House at Almost Home offered shelter for homeless men, mentoring, and guidance services. These were to allow the men to concentrate on their vocational, financial, and self-growth. Volunteers in 2018 directed night-time operations of Guest House Shelter and supervised morning chores. (22)

The City of Dubuque in June, 2019 entered into an agreement with the Affordable Housing Network Inc., a nonprofit affiliated with Four Oaks, one of the largest providers of human services in Iowa. The council approved $750,000 in funding to support rehabilitation efforts on twenty-five housing units in the following five years to increase affordable home ownership. The efforts were part of the Comprehensive Housing Activities for Neighborhood Growth & Enrichment (CHANGE). According to the agreement the Affordable Housing Network would receive $600,000 in housing tax-increment financing funds and $150,000 through the 2019 Community Development Block Grant allocation. After a house was remodeled, Four Oaks used three options. The home might be immediately sold. As a second choice, the nonprofit would serve as a property manager and rent the home. The third option allowed the Affordable Housing Network to use a rent-to-own program. (23)

The City of Dubuque also signed an agreement with True North and Community Housing Initiatives to renovate fifty and twenty units with the goal of the City's goal being to renovate and sell 120 units. (24)

In late 2019 despite near-record-low-unemployment and rising wages, more Dubuque students found themselves homeless than in any other recorded year. The DUBUQUE COMMUNITY SCHOOL DISTRICT defined "homeless" if living in a shelter or "doubled-up" in a single-family residence with other families, staying in a motel or hotel because they lost housing, or were living in a campgrounds or vehicles. In response, City of Dubuque officials hoped to keep more families together in safe, affordable housing in 2020 by requesting approximately $300,000 in federal funding to support family unification. The district in 2019 identified 196 school-aged students who lacked permanent housing, compared to 191 in 2018. (25)

According to a study by the GREATER DUBUQUE DEVELOPMENT CORPORATION, area workers and families were earning more, both on a household and per-capital basis, than they were in 2014. However, an estimated one-third of the households could not afford a "survival budget" allowing savings for the future and retirement. Area wages remained below state and national median, despite increases. (26) The results mirrored those of the 2018 United Way ALICE (Asset-Limited, Income-Constrained Employed) report which found 22% of Dubuque County households' incomes were above the federal poverty line but were not sufficient to meet the needs of housing, food, and child care. (27)

The family unification program of 2019 would offer fifty additional housing vouchers for families who had children placed or faced the likelihood of being place in foster or out-home care because parents could not provide shelter. The program would also provide housing vouchers to those between 18 and 24 who were aged out of foster care and struggled to find housing. If successful, the city would partner with the Iowa Department of Human Services to identify and refer youth and families eligible for housing assistance. Once DHS discontinued services, the city would continue services through its Gaining Opportunities program. Eligible applicants would be placed on the city housing voucher wait list and issued a voucher within a month. (28)

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. Eiler, Donnelle, "Group Can Aid Affordable Housing," Telegraph Herald, January 22, 1994, p. 3

4. Eiler, "Housung Activists..."

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

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

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

8. Eiler, Donnelle. "Dubuque Eyes Uses for City-Owned Lots," Telegraph Herald, May 14, 1994, p. 1

9. "Housing Initiative Nears Goal," Telegraph Herald, July 20, 1995, p. 9

10. Bergstrom, Kathy, "Housing Project Wins Grant," Telegraph Herald, December 22, 1995, p. 5

11. Coyle, Erin, "Council Seeks Research on Housing Issues," Telegraph Herald, December 11, 2001, p. 1

12 Ibid.

13. "Council Right to Follow Housing Guidelines,"(editorial), Telegraph Herald, June 7, 2002, p. 4

14. "Trust Funds Help Spur Affordable Housing," Dyersville Commercial, December 17, 2014, p. 69

15. Ibid.

16. Coyle, Erin, "Five Points Slated for Makeover," Telegraph Herald, March 15, 2003, p. 1

17. "Community Equity Profile: Housing," Telegraph Herald, May 7, 2015, p. 8

18. Ibid.

19. Ibid.

20. "Volunteering," Telegraph Herald, March 8, 2018, p. 28

21. Barton, Thomas J., "A Place to Call Home," Telegraph Herald, July 12, 2015, p. 6A

22. Ibid.

23. Montgomery, Jeff, "City Sees Housing Rehab Efforts as Welcome CHANGE," Telegraph Herald, June 8, 2019, p. 3

24. Ibid.

25. Barton, Thomas J. "City Hopes to Aid Struggling Families With Housing Grant," Telegraph Herald, December 30, 2019, p. 1A

26. Ibid.

27. Montgomery, Jeff, "United Waqy Documents Working Poor Here," Telegraph Herald, June 29, 2018, p. 1A

28. Barton, "City Hopes..."