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HUD Regulatory Reform LetterOffice of the Mayor City Hall 50 West 13th Street Dubuque, IA 52001-4864 www.cityofdubuque.org 6 April 07 -THE CITY OF DuB E ~~,~~ The Honorable Alphonso Jackson Secretary of the United States Department of Housing and Urban Development 451 7th Street SW Washington DC 20410 Dear Secretary Jackson, On behalf of the City of Dubuque, Iowa, I want to take this opportunity to accept the Department of Housing and Urban Development's (HUD) invitation to become a participant in the National Call for Affordable Housing through Regulatory Reform. Our city is aware of the complexities of affordable housing issues and has taken many initiatives in recent years to address them. We created a Developer's Roundtable as an on-going forum to discuss regulatory reform with our local developers. The City Council approved the concept of "affordable housing subdivisions," allowing us to waive regulatory requirements and provide incentives for construction of new homes affordable to moderate-income buyers. We are now building out three of these subdivisions, simultaneously. The City's policies and programs reflect the understanding that we must balance the demand for new development on the community's fringe with the benefits of in-fill development and adaptive reuse of existing building stock in a cost effective manner. We provide a variety of incentives for renovation of our older housing stock and have effectively utilized many state and federal programs for subsidy of affordable housing projects. Our Council has adopted three building codes to assist developers of our older downtown buildings. These include the Uniform Code for Building Conservation (UCBC), which provides alternatives for developers as they confront the difficult code issues in reusing these 100+ year old buildings. Recently, Dubuque was one of five communities selected nationally to receive technical assistance from the American Institute of Architects (AIA) for the Sustainable Design Assessment Team (SDAT) Program. The Dubuque SDAT project will address the following five critical land use and urban design issues: Service People Integrity Responsibility Innovation Teamwork 1. urban sprawl vs. planned and managed growth 2. Mississippi River bluff preservation vs. bluff development 3. storm water run-off vs. collection and management 4. traditional vs. sustainable design 5. neighborhood disinvestment vs.~revitalization We are also beginning a process to write a Unified_Development Code that will up-date the City's zoning, subdivision, historic preservation and sign regulations. This process will provide direction for developing regulations and design guidelines that encourage affordable -housing and sustainable development. I believe it is important that we address issues of regulatory reform at the local level and develop local solution to ensure affordable housing opportunities for working families. I also appreciate HUD's understanding that these are local issues needing local solutions. We look forward to exchanging news and information with the Department and other cities throughout the country. Through our mutual efforts we can work toward a future where all Americans have a place to call home. Respe tfully ,~~~ Roy D Buol, Mayor City of Dubuque NATIONAL CALL TO ACTION FOR AFFORDABLE HOUSING THROUGH REGULATORY REFORM Q and A's for State and local officials 1. Why should we join the America's Affordable Communities Initiative's "National Call to Action?" The America's Affordable Communities Initiative's (AACI) "Call to Action" invites States, cities, towns and other municipalities to participate in a voluntary network of communities interested in addressing their own regulatory barriers. Regulatory barriers increase cost and reduce the supply of affordable housing. Though this network, localities can learn from each other, be kept up-to-date on some of the most innovative reforms tried in other communities and receive guidance materials and tools they can use to advance regulatory reform in their own communities. For more information on the Initiative and the "Call for Action" please visit the Initiative's website, http://www.hud.gov/initiatives/affordablecom cfin or the website of the Regulatory Barriers Clearinghouse at: www.huduser.or /repbarriers. 2. Aren't development regulations a State and local issue? Why is the Federal government getting involved? We recognize that most regulations on housing development are strictly local and HUD neither seeks nor is even empowered to directly address these issues. HUD's role is educational and advisory, providing materials and research and other tools that can assist you in addressing these issues at the local level. Each community is different and all housing markets are local. HUD encourages each locality to explore the issue of regulatory barriers, through the formation of a task force and choose those solutions that best meet local needs, policies and priorities. Participating communities will be recognized as leading the charge for reform. 3. What is actually meant by affordable housing? Families face an affordable housing problem if they cannot afford to buy or rent a decent home in a good community without sacrificing other basic necessities of life. Therefore, affordable housing addresses the needs of a wide swath of the American population -from teachers, firemen, police, other essential public servants, factory workers, health workers and others - requiring "workforce housing". These individuals should, but are currently not able to, buy or rent adequate housing in the marketplace. Ideally, America's "workforce "should be able to live in or near the communities where they work in affordable and attractive homes that any community would be proud to have as part of its diverse housing market. 4. What is a regulatory barrier? All communities have myriad rules, standards, ordinances, and administrative processes that regulate development generally and housing in particular. Most of these rules were enacted for valid public proposes. However, regulations become a barrier to affordable housing when they prohibit, discourage or excessively increase the cost of new and rehabilitated housing without sound compensating public benefits. 5. Is this really a serious problem? Isn't this really just an issue of families without sufficient income to buy or rent housing that the market provides? It is very serious problem. Numerous studies have shown that regulatory barriers can increase housing costs between 25%-35%. These are only direct cost impacts. Through regulations and policies that limit land supply and development, the impact may be much higher. Studies also show that the lack of affordable housing can have a negative impact on communities. Over the past few years, housing advocates, researchers, non-profits and others committed to affordable housing have come to recognize that removal of regulatory barriers and increasing the total supply of all housing in a community must be part of any national housing strategy. As in any market, housing prices are a function of both supply and demand and regulatory barriers increase cost and constrain supply. Regulatory barriers impact affordable housing projects in particular where, in many cases, "Not In My Backyard" (NIMBY) attitudes keep out or constrain the supply of such needed housing. 6. Aren't regulatory barriers just a problem in communities where large lot zoning keeps out all affordable housing? How does this issue impact my community? Regulatory barriers exist at all levels of state and local government that manage the housing development and rehabilitation process. Generally these barriers develop because other public policies were considered important without adequate consideration given to impacts on housing supply or cost. Also, many regulations are just out of date and reform and modernization has not been a priority. Finally, many administrative, review and approval processes can be dramatically streamlined and modernized without compromising other important public values and priorities. Communities that are addressing regulatory reform are already having positive results across a number of economic and social issues.