Iowa City considering zoning code changes to encourage affordable housing

IOWA CITY — The city of Iowa City is looking at whether changes in property regulations can increase affordable housing and improve housing choice in the community as demand grows.

During Tuesday’s City Council work session, city staff presented five proposed changes to the zoning code that are intended to increase housing supply and diversity of housing options. Since it was a work session and not a formal meeting, council members asked questions and shared general thoughts, but couldn’t share their positions until a public hearing is closed.

The council will hold a public hearing on the proposed changes during its Sept. 19 meeting, which also will include the first consideration of the amendments. This will be an opportunity for the public to share their thoughts to the council.

Council member Shawn Harmsen said during the meeting one of the reasons he ran for a seat on the council was to take a look at “long-term zoning issues that have created inequalities over the decades.”

Mayor Pro Tem Megan Alter noted how so many different pieces need to fit together to increase affordable housing and livability for residents.

“One of the things that I was very much struck by was that you were not focused simply on one component, but really looking at here's the big picture and what this could mean for us decades to come and how we are going to grow in a way that can help the community,” Alter said.

How did we get here?

The recommendations presented by city staff stem from the City Council adopting its first affordable housing plan in 2016. The plan included 15 action steps, including changes to zoning regulations. The changes to zoning regulations is the only action step that has not been completed, senior planner Anne Russett said.

A Fair Housing Choice study in 2019 identified a lack of affordable rental housing as a significant issue. The study looked at barriers to housing because of race, gender or disability. Improving housing choice was one of the strategies recommended to help address this.

City staff has been working with the city’s planning and zoning commission since February on housing affordability. The proposed zoning amendments were presented in July, with the planning and zoning commission on Aug. 2 recommending approval by the council.

What are the proposed amendments?

Zoning code plays a factor in affordable housing by allowing a diversity of options, which is why staff is presenting the five changes, Russett said.

The goals of the proposed amendments include increasing housing supply and the diversity of housing options, incentivizing development of income-restricted affordable housing and addressing fair housing issues.

“What we're trying to do is enable the construction of housing units that are more affordable than what's currently allowed in a lot of those zones, and making sure that the zoning code is not a barrier to the construction of affordable housing,” associate planner Kirk Lehmann said.

Each of the five amendments has its own proposed changes:

These recommendations are based on national best practices, as well as looking at what was successful in other jurisdictions, Lehmann said. These amendments are intended to allow additional units within the current neighborhood framework, as well as reduce the costs of construction, Lehmann added.

“With these proposed amendments, we're not anticipating wide scale redevelopment,” Lehmann said. “We're not looking at creating a new Riverfront Crossings District that's specifically intended for redevelopment.”

Examples of changes

Within the five zoning amendments, there are 13 proposed changes that look to address affordable housing.

One of the changes would allow duplexes and two attached units more widely in lower density single-family zones, instead of only on corner lots. Staff estimates this would allow up to 2,900 lots to accommodate duplex uses through gradual conversion.

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Duplexes tend to be more affordable than single-family homes, Lehmann said.

Another proposed change would allow townhome-style multifamily uses in higher density single-family zones.

Currently, up to six attached single-family townhomes are allowed in higher density residential zones. Multifamily townhomes are not allowed even though they can be more affordable and look the same from the street, Lehmann said.

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City staff also is proposing to increase the bedroom limit by one for multifamily housing outside of the university area to allow for the construction of units for larger families.

The change would increase the multifamily limit to four bedrooms and the duplex limit to five bedrooms.

“The goal is really to accommodate a wider variety of housing types and family types within those because currently single family detached is the primary housing type that's allowed for those large families,” Lehmann said.

If not addressed, city won’t keep up with growth

Housing affordability is a “complex issue” with many factors influencing affordability, including income, educational opportunities, health care costs and child care costs, Russett said.

“Housing supply also impacts affordability, and our community is growing. However, housing supply is not meeting the demand generated by the growth,” Russett said.

Recommended Reading

While rental markets continue to see increasing demand affordability, supply remain scarce

An analysis looking at residential development in 2022 found if residential growth continues at the current pace, the demand will not be able to keep up with housing supply. The city will be able to accommodate less than 6,300 new residents by 2030, compared with a projected demand of 10,240.

Last year was one of the lowest levels of residential lot creation in at least 30 years, according to the city. If Iowa City can’t keep pace with the demand for housing, it may see slower population growth and rising housing prices, among other impacts.

“Accommodating new residential growth is a fundamental aspect of planning for the future of Iowa City,” staff wrote in a March memo. “Staff believes it is important to continue to encourage residential growth in areas that have access to City services, such as in infill locations, as well as in the City’s designated growth areas which are anticipated to become part of the City in the future.”

Comments: (319) 339-3155; izabela.zaluska@thegazette.com