Latest news with #JackHatch
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.
