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Axios
2 days ago
- Business
- Axios
Des Moines rethinks housing strategy after pushback
Des Moines City Council is expected to adopt its first citywide housing strategy on Monday, significantly revising a controversial plan that would have indefinitely halted most new low-income housing tax credit (LIHTC) projects. Why it matters: The now-revised provision triggered strong opposition from developers and housing advocates who said it could create additional hurdles in the city's efforts to increase affordable housing. Catch up quick: The strategy was developed over much of the past year through public input and the assistance of the Maine-based urban planning firm CZB. It's a long-term plan that will shape how the city funds efforts to tackle housing affordability and includes goals or priorities for rental preservation, new construction and homeownership. Zoom in: The initial proposal to pause LIHTC projects in DSM was intended to encourage more evenly distributed low-income housing across the metro. Developers argued the proposal failed to fully consider the community benefits of using LIHTCs — one of the country's most common tools for creating affordable housing — or acknowledge the extent of their use in suburban communities. State housing agencies award the federal tax credits to private developers of affordable rental projects. Projects typically require approval from local governments before they are awarded incentives. State of play: The revised plan will evaluate future LIHTC projects using broader criteria, including design and whether they might overly concentrate poverty. DSM still aims for regional equity in subsidized housing and plans to collaborate with other jurisdictions, per the revision. What they're saying: Former state Sen. Jack Hatch, a housing developer who sought revisions to the plan, thanked the council for the changes in a Friday email. It now promotes a very different attitude and shows that the city is open to all housing financing strategies, he wrote. The intrigue: One of the new housing strategies includes support for a Community Land Trust — " affordable forever homes" that can only be resold at restricted prices to other low-income buyers. Carrie Woerdeman, board chairperson of the newly created Central Iowa Community Land Trust, tells Axios that DSM's first home in the program will likely hit the market late this year.
Axios
23-06-2025
- Business
- Axios
Housing plan could "redline" Des Moines, former Sen. Jack Hatch says
Des Moines' proposed citywide housing strategy faces criticism from several influential affordable-housing advocates. Why it matters: Housing affordability is an increasing concern throughout Iowa. Des Moines' strategy could influence regional development and decide whether low-income families can find homes in the state's largest city or will be pushed out. Catch up quick: Last year, the City Council hired the Maine-based urban planning firm CZB to develop DSM's first citywide housing strategy. The study addresses long-term goals of enhancing neighborhoods and maximizing the millions of dollars the city allocates annually for revitalization. Driving the news: Housing developer Jack Hatch, a former state senator, criticized the plan in a June 2 letter to the council, saying it misrepresents how affordable housing works and could "redline" the city by halting low-income housing projects. He warns that the report misrepresents the city as being overwhelmed with low-income housing and ignores the economic advantages that such projects provide. Zoom in: The recommendations involve redeveloping about 300 blocks of the city through a combination of voluntary acquisitions and demolitions, reducing the areas from being 100% low- and very-low-income to roughly 30-35%. A pause on most low-income housing tax credit (LIHTC) projects — one of the country's most common tools for creating affordable housing — could also lead to a more even distribution of housing options across the metro by shifting more low-income projects to suburbs, according to a CZB presentation last month. The intrigue: City Councilperson Josh Mandelbaum also expressed concern in a June 4 op-ed published by Bleeding Heartland, a community blog, saying affordable-housing options would worsen if the report were fully adopted. Councilperson and real estate agent Linda Westergaard accused the report of using "scare tactics" during a February meeting when she questioned the proposal to level a wide swath of the city's older housing. What's next: Public feedback about the proposal is being reviewed, and council members are expected to discuss it during a July 14 work session.
Axios
13-02-2025
- Business
- Axios
Des Moines to consider redeveloping 300 blocks of housing
About 300 city blocks would be redeveloped through a mix of acquisitions, demolitions and infill reconstruction under a draft housing strategy presented to the city council this week. Why it matters: The annual $60-million-plus that governments spend to improve DSM's housing won't boost overall conditions without whole-block redevelopment, Charles Buki, director of Colorado-based urban planning firm CZB, told council members. DSM has "an albatross" of 45,000 small and often neglected homes, Buki said. Catch up quick: DSM has among the oldest housing stock in the nation, with nearly 28% of homes built in 1939 or earlier compared to 12% nationally, according to Census estimates. Hundreds of millions of dollars have been spent on revitalization in recent decades, but problems with housing conditions and affordability are still widespread. CZB was hired last year for $200,000 to help draft the first citywide plan to guide future housing decisions. Driving the news: This week's recommendations include voluntary property buyouts to help redevelop entire city blocks. The focus would be on a few blocks at a time that would be completed over decades. How it works: It's unlikely that some property owners would sell, which Buki told the council is fine because each block would be developed differently based on its characteristics and open spaces. Contiguous properties could be acquired mostly for new housing with market factors influencing improvements or redevelopment of the remaining older homes, he said. Zoom in: Specific blocks were not identified in this week's presentation, but examples given include areas along Southridge and Merle Hay malls, East 14th Street and the Fairgrounds neighborhood. Stunning stat: CZB estimates redevelopment would cost private, nonprofit and public entities around $20 million per block, which includes incentives to maintain affordability for families with lower incomes. Inside the room: Councilperson and real estate agent Linda Westergaard accused Buki of using "scare tactics" by predicting that property conditions would continue to worsen under the council's current housing plans. "The market is not strong enough for there to be an alternative outcome," Buki responded. "I'm sorry." Mayor Connie Boesen and the other five council members supported further reviewing the recommendation. The intrigue: A Baltimore pilot project using the whole-block approach in 2009 resulted in $58 million in reinvestment and about 200 new or rehabbed homes, according to nonprofit ReBuild Metro, which assisted in the development. The city is now adopting a widescale version. CZB was commissioned to study Baltimore's vacant property problems and recommended the concept in 2022. What's next: The city manager's office will provide the council with financing details in the coming weeks. Formal council consideration could take place as early as next month.
