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Housing Commission Research and RecommendationCity of Dubuque City Council Meeting Action Items # 02. Copyrighted December 4, 2023 ITEM TITLE: Housing Commission Research and Recommendation SUMMARY: City Manager providing information regarding the Housing Commission responsibilities in response to an audit finding from the US Department of Housing and Urban Development and is recommending City Council adopt the updates to the Housing Commission Ordinance to come into compliance with the Federal Regulations and to eliminate redundancies in the ordinance. ORDINANCE Amending City of Dubuque Code of Ordinances Title 2 Boards and Commissions, Chapter 5 Housing Agency and Community Development Commissions, Article B Housing Commission, Sections 2- 5B-5 Membership and 2-5B-13 Powers SUGGESTED Suggested Disposition: Receive and File; Motion B; Motion DISPOSITION: ATTACHMENTS: Description Type MVM Memo City Manager Memo Staff Memo Staff Memo Ordinance - Housing Commission Ordinance 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: Housing Commission Research and Recommendation DATE: November 29, 2023 Dubuque All -America City IN 2007.2012.2013 2017*2019 Housing and Community Development Director Alexis Steger is providing information regarding the Housing Commission responsibilities in response to an audit finding from the US Department of Housing and Urban Development and is recommending City Council adopt the updates to the Housing Commission Ordinance to come into compliance with the Federal Regulations and to eliminate redundancies in the ordinance. I concur with the recommendation and respectfully request Mayor and City Council approval. k�4 Mic ael C. Van Milligen L[yTI LWA Attachment cc: Crenna Brumwell, City Attorney Cori Burbach, Assistant City Manager Alexis Steger, Housing and Community Development Director Wally Wernimont, City Planner Jason Lehman, Assistant City Attorney Dubuque THE CITY OF DUB E Alf -America City ., I��I® Masterpiece on the Mississippi 2017*2019 TO: Michael C. Van Milligen, City Manager FROM: Alexis M. Steger, Housing and Community Development Director DATE: November 22, 2023 RE: Housing Commission Research and Recommendation INTRODUCTION The purpose of this memo is to provide information regarding the Housing Commission responsibilities in response to an audit finding from the US Department of Housing and Urban Development. BACKGROUND In August 2023, the US Department of Housing and Urban Development (HUD) provided the City of Dubuque audit findings from an on -site audit conducted in July 2023. In the findings, HUD notes that the Housing Commission should not allow any landlords that accept Housing Choice Vouchers (HCV) to be a commissioner. HUD cites a regulation that requires the executive board (City Council) to refrain from renting to an HCV household as it is a conflict of interest. The Housing Commission, as set up in Dubuque, only serves as an advisory commission for the City Council. HUD does not feel this advisory commission should allow landlords as commissioners, so the City of Dubuque is looking at options for changing or disbanding the Housing Commission. The Housing Commission duties as set today by city code "2-5113-13: Powers" are: A. To contribute as appropriate in the planning, coordinating, and review of housing development; B. To conduct public hearings to ensure meaningful citizen input in the planning, implementation, and assessment of the city's housing programs; C. To provide for and encourage the participation of low- and moderate -income persons in the planning, implementation, and assessment of housing programs-, 1 D. To provide input into the community planning process and to assist in accomplishing a coordinated and consistent housing development program of the city in accordance with present and future housing needs; E. To request and review ongoing surveys assessing housing needs and identifying future community housing needs, particularly the needs of persons of low and moderate income; F. To support the efforts of the city council and other city commissions in the assessment of the general housing needs of the community; G. To undertake from time -to -time other specific ongoing housing planning which may be referred to it by the city council; H. To research and recommend to the city council policies and programs facilitating the development of affordable housing; To undertake public information efforts to educate citizens of the availability of federal, state, and locally funded housing assistance programs; J. To assist in the preparation of the housing element of the city comprehensive plan and the annual consolidated plan; K. To offer comment, as appropriate, on the consistency of proposed housing development with the comprehensive plan, consolidated plan, and existing city housing strategies; and L. Undertake such additional duties, with regard to the housing trust fund, as are specified in this code. Membership requirements per city code "2-5B-5: Membership" are: A. Number: The commission comprises ten (10) residents of the city. B. Age: Residents must be eighteen (18) years of age or older. C. Special Qualifications: 1. At least three (3) members must be selected specifically on the basis of experience in real estate development, banking, finance, accounting, funds management, or other related areas of expertise. 2. One (1) member must be a person who is a recipient of tenant based rental assistance under section 8 of the United States Housing Act of 1937, whose name appears on a lease of section 8 property. If such member ceases to be a recipient of rental assistance under section 8, the term of such member is deemed terminated and a new member who meets the requirements of this subsection must be appointed for the remainder of the term. 2 3. The remaining members are at -large members. 4. Cross -Representation: a. One (1) member must be appointed by the commission, with city council approval, to serve on the community development advisory commission. b. One (1) member must be appointed by the commission, with city council concurrence, to serve on the long-range planning advisory commission. DISCUSSION Research was completed for the other top ten populous cities in Iowa to ascertain what type of boards and commissions are in place and what their duties consist of. Iowa City — CDBG/HOME and Section 8 guidance are provided by one commission and recommendations are made to the City Council from this commission. This is the same set-up as Dubuque and would not be a model to consider based on HUDs guidance. Des Moines — One board oversees the public housing projects, purchasing, RFPs, and contracts. This board does not report to the City Council and is independent of the City's decisions/policies. The board initiates programs or projects, including grant applications that further the policies and plans of the city's municipal housing agency, including tenant conduct and relations, in accordance with applicable local, state or federal laws, rules or regulations related to public housing. Dubuque does not have public housing and the Public Housing Authority is not a separate entity from the City; therefore, Dubuque is unable to emulate this model. Cedar Rapids — Has one Commission and the functions of that commission are to: • Identify the nature and scope of housing needs of low and moderate -income residents. • Recommend effective strategies to City Council for collaborating to meet those needs. • Identify legislative issues regarding trends or barriers to access programs. • Review and make recommendations to the City Council on key affordable housing issues, such as the annual Housing Market Analysis and State applications. No board or commission in Cedar Rapids reviews Section 8. All Section 8 actions go directly to the City Council without a board review. This is a model that Dubuque could use. West Des Moines — Has no boards or commissions related to Housing; however, they have a Human Services Board to provide opportunities for individuals to improve and enhance the quality of life through the programs and services available 3 with the goal of self-sufficiency. This is like Dubuque's Community Development Advisory Commission. Davenport — Has a Housing Commission that oversees all Section 8 programs and public housing units. This is a five -member commission with no restrictions from being an HCV landlord. This is like Dubuque's Housing Commission set-up, so it would not be a model that could be considered based on HUDs audit findings. Council Bluffs — Has a Municipal Housing Agency that is separate from the City Council for Public Housing. Council Bluffs also has a Community Development Advisory Committee that advises the City Council in respect to the CDBG/HOME programs and housing and public improvements needs in the community. Although this is like Dubuque, Council Bluffs MHA does not advise on Housing Choice Voucher programs and only advises on Public Housing administration. The Community Development Advisory Committee provides advice to the City Council on housing needs and new housing developments. This is a model Dubuque could consider. Waterloo — Does not have a board related to Housing Choice Vouchers or Section 8 programs. Waterloo has a Community Development Board that oversees Urban Renewal projects. Waterloo does not have a robust board and commission related to Housing, but the idea of a board advising the City Council on Urban Renewal Housing Projects could be incorporated into a Dubuque model. Ames — Has no boards or commissions related to housing. Ankeny — Has no boards or commissions related to housing. Sioux City — Has no boards or commissions related to housing. None of the boards and commissions researched have restrictive provisions for being a Housing Choice Voucher landlord. Iowa City and Davenports models would require this provision based on HUDs findings, so the City of Dubuque should not consider these models without this provision. Based on the research and discussions with two similarly situated cities (Cedar Rapids and Davenport), the following updates to the ordinance are recommended: 1. Update the membership requirements with language requiring all members refrain from leasing to a Section 8 participant per Federal Code. 2. Update duties and powers to clean up the language of the ordinance by eliminating the following two duties: 12 K. To offer comment, as appropriate, on the consistency of proposed housing development with the comprehensive plan, consolidated plan, and existing city housing strategies; and L. Undertake such additional duties, with regard to the housing trust fund, as are specified in this code. Section K is duplicative of Section A, and Section L refers to duties related to the Housing Trust Fund which has its own advisory board so this commission does not have these duties any longer. Once these updates are made, some commissioners will need to step down from their positions as Commissioners, due to already accepting Housing Choice Vouchers as a landlord. RECOMMENDATION I respectfully request the City Council adopt the updates to the Housing Commission Ordinance to come into compliance with the Federal Regulations and to eliminate redundancies in the ordinance. Cc: Wally Wernimont, City Planner Crenna Brumwell, City Attorney Jason Lehman, Assistant City Attorney G0 Prepared by: Crenna M. Brumwell, Esq. 300 Main Street Suite 330 Dubuque IA 52001 563 589-4113 ORDINANCE NO. 54 - 23 AMENDING CITY OF DUBUQUE CODE OF ORDINANCES TITLE 2 BOARDS AND COMMISSIONS, CHAPTER 5 HOUSING AGENCY AND COMMUNITY DEVELOPMENT COMMISSIONS, ARTICLE B HOUSING COMMISSION, SECTIONS 2-513-5 MEMBERSHIP AND 2-513-13 POWERS NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: Section 1. Section 2-513-5 of the City of Dubuque Code of Ordinances is hereby amended to read as follows: ��:�■>�il�>� I:��:�y;al�l A. Number: The commission comprises ten (10) residents of the city. B. Age: Residents must be eighteen (18) years of age or older. C. Special Qualifications: 1. At least three (3) members must be selected specifically on the basis of experience in real estate development, banking, finance, accounting, funds management, or other related areas of expertise. 2. One (1) member must be a person who is a recipient of tenant based rental assistance under section 8 of the United States Housing Act of 1937, whose name appears on a lease of section 8 property. If such member ceases to be a recipient of rental assistance under section 8, the term of such member is deemed terminated and a new member who meets the requirements of this subsection must be appointed for the remainder of the term. 3. The remaining members are at -large members. 4. No property owner or landlord accepting Housing Choice Vouchers may serve pursuant to 24 CFR 982.161 and Section 18 of the Annual Contributions Contract. 5. Cross -Representation: a. One (1) member must be appointed by the commission, with city council approval, to serve on the community development advisory commission. b. One (1) member must be appointed by the commission, with city council concurrence, to serve on the long range planning advisory commission. Section 2. Section 2-5B-13 of the City of Dubuque Code of Ordinances is hereby amended to read as follows: 2-56-13: POWERS: The commission has the following powers, duties, and responsibilities: A. To contribute as appropriate in the planning, coordinating, and review of housing development; B. To conduct public hearings to ensure meaningful citizen input in the planning, implementation, and assessment of the city's housing programs; C. To provide for and encourage the participation of low and moderate income persons in the planning, implementation, and assessment of housing programs; D. To provide input into the community planning process and to assist in accomplishing a coordinated and consistent housing development program of the city in accordance with present and future housing needs; E. To request and review ongoing surveys assessing housing needs and identifying future community housing needs, particularly the needs of persons of low and moderate income; F. To support the efforts of the city council and other city commissions in the assessment of the general housing needs of the community; G. To undertake from time to time other specific ongoing housing planning which may be referred to it by the city council; H. To research and recommend to the city council policies and programs facilitating the development of affordable housing; I. To undertake public information efforts to educate citizens of the availability of federal, state, and locally funded housing assistance programs; T To assist in the preparation of the housing element of the city comprehensive plan and the annual consolidated plan; and K. Undertake such additional duties, upon the request of the City Council. Section 3. This ordinance shall take effect upon publication. Passed, approved, and adopted this 41h day of December, 2023. y4l�-� Katy A. Wethal, Mayor Pro Tern Attest: Adrienne Breitfelder, City Clerk EFFECT OF AMENDMENT 2-513-5: MEMBERSHIP: A. Number: The commission comprises ten (10) residents of the city. B. Age: Residents must be eighteen (18) years of age or older. C. Special Qualifications: 1. At least three (3) members must be selected specifically on the basis of experience in real estate development, banking, finance, accounting, funds management, or other related areas of expertise. 2. One (1) member must be a person who is a recipient of tenant based rental assistance under section 8 of the United States Housing Act of 1937, whose name appears on a lease of section 8 property. If such member ceases to be a recipient of rental assistance under section 8, the term of such member is deemed terminated and a new member who meets the requirements of this subsection must be appointed for the remainder of the term. 3. The remaining members are at -large members. 4. No property owner or landlord accepting Housing Choice Vouchers may serve pursuant to 24 CFR 982.161 and Section 18 of the Annual Contributions Contract. 5. Cross -Representation: a. One (1) member must be appointed by the commission, with city council approval, to serve on the community development advisory commission. b. One (1) member must be appointed by the commission, with city council concurrence, to serve on the long range planning advisory commission. 2-513-13: POWERS: The commission has the following powers, duties, and responsibilities: A. To contribute as appropriate in the planning, coordinating, and review of housing development; B. To conduct public hearings to ensure meaningful citizen input in the planning, implementation, and assessment of the city's housing programs; C. To provide for and encourage the participation of low and moderate income persons in the planning, implementation, and assessment of housing programs; D. To provide input into the community planning process and to assist in accomplishing a coordinated and consistent housing development program of the city in accordance with present and future housing needs; E. To request and review ongoing surveys assessing housing needs and identifying future community housing needs, particularly the needs of persons of low and moderate income; F. To support the efforts of the city council and other city commissions in the assessment of the general housing needs of the community; G. To undertake from time to time other specific ongoing housing planning which may be referred to it by the city council; H. To research and recommend to the city council policies and programs facilitating the development of affordable housing; I. To undertake public information efforts to educate citizens of the availability of federal, state, and locally funded housing assistance programs; J. To assist in the preparation of the housing element of the city comprehensive plan and the annual consolidated plan; and K. Undertake such additional duties, upon the request of the City Council. STATE OF IOWA SS: DUBUQUE COUNTY CERTIFICATE OF PUBLICATION I, Kathy Goetzinger, a Billing Clerk for Woodward Communications, Inc., an Iowa corporation, publisher of the Telegraph Herald, a newspaper of general circulation published in the City of Dubuque, County of Dubuque and State of Iowa; hereby certify that the attached notice was published in said newspaper on the following dates: 12/08/2023 and for which the charge is 56.72 7�u V Subscribed to before me, a Notary Public in and for Dubuque County, Iowa, this 1lth day of December, 2023 Notary Put lic'in and for Dubuque County, Iowa. JANET K. PAPE 7 Commission Number 199659 My Commission Expires 12/11 /2025 Ad text : CITY OF DUBUQUE OFFICIAL PUBLICATION ORDINANCE NO. 54 - 23 AMENDING CITY OF DUBUQUE CODE OF ORDINANCES TITLE 2 BOARDS AND COMMISSIONS, CHAPTER 5 HOUSING AGENCY AND COMMUNITY DEVELOPMENT COMMISSIONS, ARTICLE B HOUSING COMMISSION, SECTIONS 2-5B-5 MEMBERSHIP AND 2-5B-13 POWERS NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: Section 1. Section 2-5B-5 of the City of Dubuque Code of Ordinances is hereby amended to read as follows: 2-5B-5: MEMBERSHIP: A. "Number: The commission comprises ten (10) residents of the city. B. "Age: Residents must be eighteen (18) years of age or older. C. "Special Qualifications: 1. "At least three (3) members must be selected specifically on the basis of experience in real estate development, banking, finance, accounting, funds management, or other related areas of expertise. 2. "One (1) member must be a person who is a recipient of tenant based rental assistance under section 8 of the United States Housing Act of 1937, whose name appears on a lease of section 8 property. If such member ceases to be a recipient of rental assistance under section 8, the term of such member is deemed terminated and a new member who meets the requirements of this subsection must be appointed for the remainder of the term. 3. "The remaining members are at -large members. 4. "No property owner or landlord accepting Housing Choice Vouchers may serve pursuant to 24 CFR 982.161 and Section 18 of the Annual Contributions Contract. 5. "Cross -Representation: a. "One (1) member must be appointed by the commission, with city council approval, to serve on the community development advisory commission. b."One (1) member must be appointed by the commission, with city council concurrence, to serve on the long range planning advisory commission. Section 2. Section 2-5B-13 of the City of Dubuque Code of Ordinances is hereby amended to read as follows: 2-5B-13: POWERS: The commission has the following powers, duties, and responsibilities: A. "To contribute as appropriate in the planning, coordinating, and review of housing development; B. "To conduct public hearings to ensure meaningful citizen input in the planning, implementation, and assessment of the city's housing programs; C. "To provide for and encourage the participation of low and moderate income persons in the planning, implementation, and assessment of housing programs; D. "To provide input into the community planning process and to assist in accomplishing a coordinated and consistent housing development program of the city in accordance with present and future housing needs; E. "To request and review ongoing surveys assessing housing needs and identifying future community housing needs, particularly the needs of persons of low and moderate income; F. "To support the efforts of the city council and other city commissions in the assessment of the general housing needs of the community; G. "To undertake from time to time other specific ongoing housing planning which may be referred to it by the city council; H. "To research and recommend to the city council policies and programs facilitating the development of affordable housing; I. "To undertake public information efforts to educate citizens of the availability of federal, state, and locally funded housing assistance programs; J. "To assist in the preparation of the housing element of the city comprehensive plan and the annual consolidated plan; and K. "Undertake such additional duties, upon the request of the City Council. Section 3. This ordinance shall take effect upon publication. Passed, approved, and adopted this 4th day of December, 2023. /s/Katy A. Wethal, Mayor Pro Tem Attest: /s/Adrienne N. Breitfelder, City Clerk Published officially in the Telegraph Herald newspaper on the 8th day of December, 2023. /s/Adrienme N. Breitfelder, CMC, City Clerk It 12/8