Workforce Housing Needs — Early Efforts Work SessionCity of Dubuque
City Council Meeting
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Copyrighted
March 21, 2022
Work Session - Top # 1.
5:30 PM - Workforce Housing Needs — Early Efforts Work Session
City Manager transmitting information for the City Council Work Session
on Workforce Housing Needs — Early Efforts.
Dave Lyons, Sustainable Innovation Consultant for Greater Dubuque
Development Corporation, will make a presentation.
ATTACHMENTS:
Description
Workforce Housing - Early Efforts-MVM Memo
Staff Memo
Type
City Manager Memo
Staff Memo
Presentation Supporting Documentation
THE CITY
DUOF
B TEE
Masterpiece on the Mississippi
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Work Session on Workforce Housing Needs — Early Efforts
DATE: March 16, 2022
Dubuque
All -America City
IN
2007.2012.2013
2017*2019
Housing and Community Development Director Alexis Steger is transmitting information
for the City Council Work Session on Workforce Housing Needs — Early Efforts.
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Mic ael C. Van Milligen
MCVM:sv
Attachment
cc: Crenna Brumwell, City Attorney
Cori Burbach, Assistant City Manager
Alexis Steger, Housing and Community Development Director
Wally Wernimont, Planning Services Manager
Anderson Sainci, Director Office of Shared Prosperity and Neighborhood Support
Jill Connors, Economic Development Director
Chris Lester, Water Department Manager
Gus Psihoyos, City Engineer
Dave Lyons, Sustainable Innovation Consultant, Greater Dubuque Development Corp
Rick Dickinson, President and CEO, Greater Dubuque Development Corporation
THE C
Dubuque
DUUB-.'&-FE-E
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Masterpiece on the Mississippi
2017*2019
TO: Michael C. Van Milligen, City Manager
FROM: Alexis M. Steger, Housing and Community Development Director
SUBJECT: Work Session on Workforce Housing Needs — Early Efforts
DATE: March 14, 2022
Introduction
The purpose of this memorandum is to provide information for the March 21 st, 2022 City
Council Work Session on workforce housing needs.
Background
The City Council identified quality affordable housing creation as a goal and priority
for 2020-2022. Workforce housing has been identified as an affordable housing need
that is not being met as quickly as it is needed in the City of Dubuque. This work
session will detail the current status and impact of the housing shortage, and early
efforts being made to encourage workforce housing development.
A second City Council Work Session will be scheduled to discuss a comprehensive
strategy, barriers/access and affordability.
Discussion
The need for additional housing has been clear in past studies completed for the City of
Dubuque, such as the Consolidated Plan for Community Development Block Grant and
the Comprehensive Plan: Imagine Dubuque. The population of Dubuque has grown
since 2010 and the number of housing units has not kept up with this growth leading to
low rental/homeowner vacancy rates, overcrowding, and growth outside of the City of
Dubuque to meet the demands.
There is a small margin of profit for developers that create workforce housing, so often
developers focus on building houses that sell for over $300,000. To incentivize
developers to refocus on workforce housing creation, several cities have implemented
new incentives for developers such as Tax Increment Financing, building infrastructure
before development, and supporting applications for funding from State and Federal
funding sources.
Workforce housing is required in a City to house childcare workers, nursing assistants,
paramedics and teachers who would be cost burdened purchasing a home for over
$300,000. A household is expected to pay 30% or less on their housing costs, as to not
be cost burdened. This not only includes mortgage payments, taxes and insurance, but
also essential housing utilities such as electric, gas, water, sewer and refuse.
More than 40% of renters in Dubuque spend more than 30% of their income on
housing, and more than 25% of those spend more than 50% of income on housing. The
need for affordable housing is so prevalent in Dubuque that 42% of businesses
interviewed said housing should be a priority, and 7 out of 10 Iowans support affordable
housing development. Despite this community support and awareness, 1 in 3 housing
projects are blocked by opposition.
Where there is a need, there is opportunity, so this work session will conclude exploring
current funding opportunities, potential incentive programs, and land available for future
development of workforce housing.
Recommendation
This memo is for informational purposes only; no action is required at this time.
Dubuque Workforce
Housing Shortage.
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10 1 Work Session #1
• Status and Impact of
Shortage
• Early Efforts on
"Middle Market"
Agenda
102 Work Session #2
• Access and
Affordability
• Future Comprehensive
Strategy
-Im
Dubuque's Vision
Workforce Housing - Middle Market
Viable
Livable
Equitable
Source: City of Dubuque 3
The Need in Numbers
0.5%
Homeowner vacancy rate, annual
0.5%
New units built in 2020 as a
percent of current housing stock
Rental vacancy rate, annual
7.6%
Projected employment
growth by 2030
Source: Iowa Dashboard, Dubuque City; Iowa State Profile, Volume III: Dubuque City, 14.51, City of Dubuque
The Need in Numbers
1.1 C.)% 681
New workforce
housing units
needed by 2030
New units built by
2030, following
present trend
Source: Iowa State Profile, Volume III: Dubuque City, 14.56; Iowa Dashboard
Falling Behind
City of Dubuque Population Growth
58,400
58,200
58,000
57,800
57,600
2010
2012 2014 2016 2018
City of Cedar Rapids Population Growth
133,000
132,000
131,000
130,000
129,000
128,000
127,000
2010 2012 2014 2016 2018
City of Madison Population Growth
255,000
250,000
245,000
240,000
235,000
2010
Source: ACS 5Year Estimates, ACS 1-Year Estimates
2012 2014 2016 2018
M
20.0
` vl
5.0
m
Falling Behind
Percent Population Growth, 2010 - 2020 (Metro)
Dubuque Cedar Rapids Madison
Source: Decennial Census 7
Falling Behind
Percent Population Growth, 2010 - 2020 (Regional)
AIXII
911111
30.0
on
it
Source: Decennial Census
E
Falling Behind
New Units Per Capita (Regional)
2015 0 2016 M 2017 0 2018 0 2019
0.020
0.015
0.010
Source: ACS 5Year Estimates, Ruhl Homes 9
Falling Behind
Forest City - Westown Place Apartments
Forest City Economic Development, through public -private partnership,
created Westown Place LLC. The 24-unit development was financed by
private investment, an IFA workforce housing loan, and workforce
housing tax credits
Waterloo — Edison Site
City will deed land to developer for $1. The site also qualifies for city tax
abatement (3 years at 100%, or 10 -year tapering schedule) and housing
infill incentives ($5,000 per certificate of occupancy)
Source: The Gazette "Iowa communities drive innovation to fill affordable housing gaps", City of Waterloo
Falling Behind
Council Bluffs — South End Housing
Development Program
City will use Community Project Funding to extend streets, create
property access points, and provide fill dirt to prepare city -owned sites
for private sector redevelopment
Cedar Rapids — Terex Plant
City to provide a TIF reimbursement of 100% of the increment generated
by the project for each respective building for up to 20 years*
*May include slum/blight designation
Source: City of Council Bluffs, Corridor Business Journal "Cedar Rapids council approves preliminary incentive plan for
Terex site redevelopment"
Housing Cost -Burdened
Those paying 30% or more of their income on housing
Childcare Workers
expenses
Food Servers
Nursing Assistants
EMTs and Paramedics Grocery Store Clerks Preschool Teachers
Is This Equitable?
43,5%
Dubuque renters that spend more than 30 % of their income on housing
25.1%
Dubuque renters that spend more than 50% of income on housing
Source: Iowa State Profile, Volume III: Dubuque City, 14.27, 14.47,
Is This Equitable?
Over $375,000
Average valuation of new
single-family homes built in
Dubuque from 2018 to 2020
Source: the Iowa Dashboard, Zillow Mortgage Calculator
Current new unit prices will not
improve affordability.
To afford a new single -family home, a
household would need an annual
income of
Over $100,000
14
Is This Viable?
Dubuque businesses don't
just support affordable
housing, they need it
prioritized
Approximately 42% of Dubuque
businesses interviewed said that
the amount and/or affordability
of housing should be a priority
Source: Iowa Finance Authority, Welcome Home, Iowa; Greater Dubuque Development Corporation 15
Opportunities
Duplex units built
between 2013 and 2020
Triplex or quadplex
units built between
2013 and 2020
Source: City of Dubuque 16
4
Opportunities
$OA 199000
Approximately one year's (2020) potential
property tax revenue lost due to low per
capita housing development rate in Dubuque
About This Number: https://drive.google.com/file/d/1 gEmPoBk050vnkF0518XwOwwHsJDOUMeL/view?usp=sharing
Opportunities
• City of Dubuque Housing Trust Fund
• Community Development Block - Grant Housing Rehabilitation
• Historic Preservation Tax Credits
• HOME Rental Assistance
• Housing Tax Credit
• Multi -Family Loan Program
• National Housing Trust Fund
• New Market Tax Credit
• Opportunity Zones
• Project -Based Housing Program
• Workforce Housing Tax Incentive Program
Opportunities
Applications and Awards for the 2021 Fiscal Year
Housing Tax Credit =* 0 Applications
National Housing Trust Fund ; Application,
Home Rental Assistance =* 0 Awards
Workforce Housing Tax Credit =* 0 Awards
Source: Iowa Finance Authority, Iowa Economic Development Authority,
Awards
Opportunities
• City of Dubuque Housing Trust Fund
• Community Development Block - Grant Housing Rehabilitation
• Historic Preservation Tax Credits
• HOME Rental Assistance
• Housing Tax Credit
• Multi -Family Loan Program
• National Housing Trust Fund
• New Market Tax Credit
• Opportunity Zones
• Project -Based Housing Program
• Workforce Housing Tax Incentive Program
20
Workforce Housing Tax Incentive Program (WHTIP)
Can be used for:
• Brownfield/ grayfield housing
development
• Repair or rehabilitation of
dilapidated housing stock
• Upper story housing
development
• Greenfield housing
development, for communities
with demonstrated workforce
housing needs
Source: Iowa Economic Development Authority
Dubuque cannot utilize WHTIP for
greenfield housing development
unless it's designated a Distressed
Workforce Housing Community
Plan for Designation
• Initial analysis
• ECIA assessment
• Submit Application for
Designation by late May
• Tax Credit Applications due
June 15th
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Thank you for your attention
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Source: The City of Dubuque
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