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Housing Affordability Copyright 2014 City of Dubuque Consent Items # 38. ITEM TITLE: Housing Affordability SUMMARY: City Manager providing information on the housing affordability in Dubuque as compared to other cities in Iowa, including Cedar Falls, Cedar Rapids, Davenport and Iowa City. SUGGESTED DISPOSITION: Suggested Disposition: Receive and File ATTACHMENTS: Description Type ❑ Housing Affordability-MVM Memo City Manager Memo ❑ Staff Memo Staff Memo THE CITY OF Dubuque UBE I erica .i Masterpiece on the Mississippi 2007-2012-2013 TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Housing Affordability DATE: July 2, 2015 Housing and Community Development Department Director Alvin Nash has provided information on the housing affordability in Dubuque as compared to other cities in Iowa, including Cedar Falls, Cedar Rapids, Davenport and Iowa City. // k�4 S4-z:n=' Micliael C. Van Milligen MCVM:jh Attachment cc: Barry Lindahl, City Attorney Cindy Steinhauser, Assistant City Manager Teri Goodmann, Assistant City Manager Alvin Nash, Housing & Community Development Department Director THE CITY OF Dubuque AII11-America CiI.ty UB E1 Masterpiece on the Mississippi 2007-2012-2013 TO: Mike Van Milligen FROM: Alvin Nash DATE: June 17, 2015 RE: Housing Affordability and Cost Burden in Iowa Cities Introduction This memorandum provides information on the Housing Affordability of Dubuque as compared to other cities in Iowa. The affordability of Dubuque was compared to Cedar Falls, Cedar Rapids, Davenport, and Iowa City. Background Staff from the Housing & Community Development, Legal, and Human Rights Departments conducted a work session with City Council on June 15, 2015. The session reviewed the progress on the Voluntary Compliance Agreement between the City and HUD, the Analysis of Impediments, consistency with the Consolidated Plan, and the Action Plan to Remove Barriers to Fair Housing. Council Member Resnick requested additional information demonstrating how Dubuque compares to other cities in Iowa with respect to Affordable Housing. Housing & Community Development Staff Erica Haugen did not have the information during the work session, but stated the information on affordability and cost burden was available for any entitlement City in Iowa. Staff Haugen stated she would provide that information for Council. Information Attached for your review are four charts presenting Comprehensive Housing Affordability Strategy (CHAS) Data provided by HUD. This data represents the most current CHAS data available from the 2008-2012 American Community Survey. Data presented to the Council during the work session was used to prepare the 2016-2020 Consolidated Plan and was based on the 2007-2011 ACS because the 2008-2012 data was not available at the time the housing analysis was conducted. The 2007-2011 and the 2008-2012 data varies only slightly. In an effort to provide Council with the most updated information, the 2008-2012 data was used for this memorandum. Affordability is often determined by assessing the number of households that are cost burdened. Cost burdened household pay more than 30 percent of their income to meet their housing needs. Severely cost burdened household pay upwards of 50% of their income for housing. Exhibit A shows the percentage of households that are cost burdened, or paying over 30% of their income for housing. This data includes figures for both renters and homeowners. The data shows the percent of cost burdened household in Dubuque is 27%. Higher than Cedar Rapids (24%), close to Cedar Falls (28%) and Davenport (28%), and lower than Iowa City (41%). Exhibit B shows the number of severely cost burdened households, or household that are paying over 50% of their income for housing. 12% of Dubuque households are severely cost burdened. This is higher than Cedar Rapids (10%), but lower than Davenport (13%), Cedar Falls (15%), and Iowa City (25%). Exhibit C shows the percentage of homeowners living in housing they can afford (less than 30% of income going towards housing), cost burdened, and severely cost burdened households. Most homeowners in Dubuque (83.05%) live in housing that is affordable for their income level. This is higher than Iowa City (78.30%) and Davenport (79.60%), about the same as Cedar Rapids (82.50%), but lower than Cedar Falls (87%). The number of cost burdened homeowners in Dubuque is 12.02%. This is about the same as Cedar Rapids (11 .51 %), Davenport (12.43%), and Iowa City (13.11 %). Cedar Falls has a lower number of cost burdened homeowners at 8.59%. The number of severely cost burdened homeowners in Dubuque is 4.64%. Slightly higher than Cedar Falls (3.77%), slightly lower than Cedar Rapids (5.86%) and lower than Davenport (7.39%) and Iowa City (8.10%). Exhibit D shows the number of renter-occupied households that are living in housing they can afford, cost burdened, and severely cost burdened. In Dubuque, 53.12% of renters pay less than 30% of their income for housing, similar to Davenport (52.48%). Iowa City (37.29%), and Cedar Falls (40.66%) have lower numbers of renter-occupied households living in housing they can afford. Cedar Rapids has a higher number of renters living in affordable housing at 57.72%. Rental households experience cost burden at similar rates, from lowest to highest is Iowa City (18.40%), Davenport (19.38%), Cedar Rapids (20.10%), Dubuque (20.13%), and Cedar Falls (21 .95%). Dubuque has 25.65% renter-occupied households experiencing severe cost burden. This is higher than Cedar Rapids (20.10%) and Davenport (23.82%), but lower than Cedar Falls (34.73%) and Iowa City (41 .43%). Prepared by: Erica Haugen, Community Development Specialist Attachment 2 A.hlbitA nl [Dm 2nU-2012 a¢ MNI l umenee ioml Households Tlad m>3M ) 2� 4,U19 14,340 rRl",Can baI! M bank,13M PLl¢I 24% 12,765 5;6ss m it 1,055) m i5,355i 27% 6,395 23,97G wn C" hurdm>net 111,105) 41F.. 31,305 37,290 Percent of Households that are Cort 6uMeneci (Paying>30%of inmme for housing) xy >m aumrzeuee¢>ypslWN � 1 �ma�u+vrvmesn>> >m VYa¢A ey 1 1 1 >ewl4¢xl mm aagve ma f us� amx Ifi�l �l>•t�l usa uAdvunev[en osm >mx ow aaus iwa >��IaPr+I � >s�P�nz,¢ari �I��I� � 14ss9� �V¢Sasl Pabibit B CHAS DATA 2008 2012 A� flwv le,ls Seyerely OsrBmJen TmIMope 0 (x,1141 0% ,N5) 10% 5,345 52,615 Wy nO e hun>ni55Mi5,520i (28401 owa[rzymuwr�n>sn%16.B901 6,690 27,290 Pemnt of-Hw ul&Mat are Se mly CnstBurdened(Pao ng>BO%of ino[me for dousing) mfi �aaamv9.umcewm.>%+aI:3+51 w 1 , 1 , amo �onmea.ee,>� eml mla�l moven mnwem> MWWmnWMEM> iw C� Abw > snalvul s�Ls�l� > Isnnl mR�l 1§�>I @sFlbitC Raw labek Cetlarralk Cedar Rapkis Davenport Dubuque Iowa City Affordable Hourng 87.SW< 8250% 79.fi0% 83.05% 78.30% rust Burdened 8591a ll.51% 1243% 1202% 19.11% Severely Cost Burdened 377% 5.86% 739% 664% 0.10% CSI Burden not available 0.54% 0.12% 0.58% 0.29% 0.49% Grand Total 10.00% 100.00'M IW.W% SDD.W% 100.m Cosi Burden Amang Horneoymem CHAS DATA 2008-2012 AGS um 00% inner W Game 83 Oe% an com under IVNd�R.RAv 3C 30% _ . 9"` 2000% 11 •1viCre Exhibit D _Row Labe6 fMarnalls: fetlar RapIds Davenport Dubuque Iowa CRy Hong In Afforrable Housing 40.6616 57.72% 52.60% 53.12% 37,29% Cost Burdened 21.95% 20.1056 19.38% 20.13% 18AM Severely Cost Burdened 34.73% 20.10% 21.82% 25.65% 41,13% Cost Burden not available 2.66% 2.08911 4.31% 1.09% 2.89% Grand Total YWIp% IW.0 SWAG% 100.00% IW.W% Cost Burden Among Renters CHAS DATA 2008-2012 ACS 70 0yB mvx 577n 24�1]M 50 wds. 4143% MC1d,F1B W NM 1936% •Oaren�rt65 Door,ARo� Da � x_ R. l ran6rr,6aa6b a .ned m o amain