2 days ago
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.
