Housing Crisis in Detroit

Write a memo to Detroit council member about The Inclusionary Housing Comission and ho it has not changed the housing crisis in Detroit.

 

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ARTICLE X11 – Inclusionary Housing

Sec. 14-12-1. Purpose and intent.

The regulations and requirements of this article are intended to:

(1) Promote the health, safety and general welfare of the citizens of the city through the implementation of housing goals, objectives and policies that support housing opportunities for all residents of Detroit;

(2) Increase affordable home ownership opportunities within the city,

(3) Stimulate the private sector production of housing available to families within the range of 50 percent to 80 percent of the area median income, or lower;

(4) Encourage the even and widespread distribution of inclusionary housing opportunities throughout all portions of the community, including within new developments in fastest growing areas of the community; and

(5) Ensure that the City-provided housing resources, such as discounted land and tax incentives, optimize the benefits for low and moderate income residents during the City’s revitalization.

Sec. 14-12-2. Definitions.

For purposes of this chapter, the following words and phrases shall have the meanings respectively ascribed to them by this section:

“Area Median Income (AMI)”. The median family income for the Detroit-Warren-Livonia Metropolitan Statistical Area, as published by the U.S. Bureau of Census and the U.S. Department of Housing and Urban Development, unless otherwise specified.1

“Inclusionary housing” means with respect to rental housing, housing that is affordable to households earning up to 80 percent of the Detroit-Warren-Livonia Metropolitan Statistical Area median income.

“Condominium” means a form of property established pursuant to the Condominium Act MCL 559.101 et seq.

“Developer” means any person who develops housing units, but does not include a lender or any governmental entity.

“Development” or “develop” means the construction or substantial rehabilitation of housing units or the conversion of any building into residential condominiums.

“Eligibility criteria” means with respect to rental housing, at the time of the first rental by that household, a household earning between 50 and 80 percent of the Detroit-Warren-Livonia Metropolitan Statistical Area median income provided that when a residential housing project receives financial assistance from tax increment financing revenues pursuant to Section 14-12-3 “eligibility criteria” for that project means:

(i) with respect to rental housing, at the time of the first rental by that household, one-half of the housing units required to be inclusionary are affordable to households earning up to 80 percent of the Detroit-Warren-Livonia Metropolitan Statistical Area median income, and one-half of the housing units required to be inclusionary are affordable to households earning up to 50 percent of the Detroit-Warren-Livonia Metropolitan Statistical Area median income; and

(ii) Fee in-lieu means the fee paid by the developer/owner of any primary development as an alternative to providing required inclusionary housing for sale within the primary development.

“Financial assistance” means any assistance provided by the city through grants, direct or indirect loans, allocation of tax credits, or tax abatements for the development of residential housing units.

“Housing unit” means a room or suite of rooms that are designed, occupied or intended for occupancy as a separate living quarter with cooking, sleeping and sanitary facilities provided within the unit for the exclusive use of the occupants of the unit.

“Planned development” has the same meaning as ascribed to that term in Detroit Zoning Code.

“Residential housing project” or “project” means one or more buildings that collectively contain twenty or more housing units on one or more tax parcels or lots marketed as a single or unified project or sharing common elements, or comprising a part of a planned development or the addition of ten or more housing units to an existing building.

“Substantial rehabilitation” means the reconstruction, enlargement, installation, repair, alteration, improvement or renovation of a building, structure or portion thereof requiring a permit issued by the city; provided the cost of the substantial rehabilitation must be $25,000.00 or more per housing unit, adjusted annually based upon the United States Department of Labor, Bureau of Labor Statistics Consumer Price Index for all Urban Consumers for the Detroit metropolitan area, or some other comparable index..

“Trust Fund” means the Detroit Housing Trust Fund, a not-for-profit organization.

Sec. 14-12-3. Applicability and Requirements for Inclusionary Housing.

(a) The requirements of this section shall apply to new development within the Inclusionary Housing Overlay Area, inclusive of property in the City of Detroit generally bounded by the city limits of Highland Park to the north, Hamtramck to the east following I-75 south to East Grand Blvd to the east and south to Mack Ave to the east to the centerline of St. Jean extended south to the Detroit River west to the centerline of Rosa Parks Blvd extended to the north to the center line of Webb Ave east to the southern city limits of Highland Park, with 20 or more residential dwelling units with the following characteristics:

(1) the City sells real property to any developer for less than fair market value on which a residential housing project is subsequently developed, the developer shall be required to establish twenty percent of the housing units as inclusionary housing in the following amounts: five percent at 50 percent AMI, five percent at 60 percent AMI and 10 percent at 80 percent AMI; or the equivalent as provided in subsection (2);

(2) financial assistance is provided to any developer in connection with the development of a residential housing project, the developer shall be required to establish twenty percent of the housing units as inclusionary housing in the following amounts: five percent at 50 percent AMI, five percent at 60 percent AMI and 10 percent at 80 percent AMI; or the equivalent as provided in subsection (b).

(b) A developer subject to the provisions of subsection 1, may establish inclusionary housing by one of the following: (i) the development of inclusionary housing units as part of the residential housing project; or (ii) payment of a fee in lieu of the development of inclusionary housing unit; or a (iii) a combination thereof it. The in-lieu fee shall be $50,000 for each inclusionary housing unit not developed as a part of the residential housing project, adjusted annually based upon the United States Department of Labor, Bureau of Labor Statistics Consumer Price Index for all Urban Consumers for the Detroit metropolitan area, or some other comparable index. Such fees shall be deposited into the Detroit Housing Trust Fund, unless required to be deposited into another fund pursuant to federal or state law.

Sec. 14-12-4. Inclusionary Unit Size

All inclusionary units when built in pursuant to this article shall comprise of at least 15 percent of the total square footage of the residential portion of the housing development.

Sec. 14-12-5. Administration.

The housing provisions of this section shall be administered by the Department of Housing and Revitalization.

Sec. 14-12-6. Detroit Housing Trust Fund.

The City shall establish a separate fund designated as the Detroit Housing Trust Fund which shall be supported by the fees collected under this article. By-Laws requiring the fund to be used to support housing opportunities for Detroit resident with income between 50 and 80 percent of the Detroit-Warren-Livonia Metropolitan Statistical Area median income shall be established. The revenues of the Detroit Housing Trust Fund shall be disbursed in accordance with bylaws established for the use of the trust.

Sec. 14-12-7. Duration of Affordability Requirement.

The inclusionary housing units required by this ordinance shall continue to be inclusionary housing for a period of 30 years after the time of the issuance of the certificate of occupancy (or after the first day of the initial lease if no such certificate is issued), unless:

1. The property is foreclosed upon or condemned, or a deed in lieu of foreclosure is given; or

2. The seller of an inclusionary housing unit has sold the unit to a household that does not meet the eligibility criteria and has paid the recapture fees required by Section 14-21-8.

Sec. 14-12-8. Vested Rights.

Those provisions in this article requiring of new development of inclusionary housing or in-lieu payments shall not apply to development of any property authorized by and consistent with any of the following development projects approved, or prior to the effective date of the affordability housing ordinance: preliminary plat approval; site plan approval; or development agreement approval. However, projects that require additional approvals by City Council for financial assistance or tax abatements will not be considered vested. In those instances where the property owner of a vested property applies for a new development project, that if approved, would constitute a modification, not including minor modifications nor planned developments in urban renewal areas, of the previous development project, that property may lose its vested status as it relates to the provisions of this Article. Determination as to whether a change to the development order would constitute a modification shall be made in accordance to Section 61-3-97 of the Code.

Sec. 14-12-9. Exemptions.

The following shall be exempt from the requirements of this article:

(1) Nursing homes, residential care facilities, assisted care living facilities, and retirement homes; and

(2) Dormitories and group quarters, as defined by the U.S. Census.

Sec. 14-12-10. Fees.

Prior to the issuance of a building permit, for any planned development or residential housing project subject to the inclusionary housing requirements of this section:

(1) the developer shall pay an amount equal to the required fee in lieu pursuant to Section 14-12-3; or

(2) the director shall cause a lien, or similar instrument to be recorded, initially, prior to development, against and comprising the planned development or residential housing project, and subsequently, in connection with the rental of any inclusionary housing unit, against the land on which such inclusionary housing unit is located to secure the requirements of this section and the recapture of the following amounts:

(a) Upon the rental of any housing unit required to be inclusionary under this section at a rental price that renders the housing unit not inclusionary housing, or to a household that does not meet the eligibility criteria, the owner shall pay a fee of $500.00 per unit per day for each day that the owner is in noncompliance; provided that prior to the assessment of the penalty, the owner shall have 90 days, after written notice from the director, to cure the noncompliance. If after 90 days the owner fails to cure the noncompliance, the fees shall be assessed from the first day of noncompliance. The 90-day time period to cure the noncompliance may be extended by the director for good cause;

(b) The sale of any rental housing unit required to be inclusionary under the Article is converted to a condominium in accordance with the Condominium Act or otherwise being sold as a owner-occupied unit must be to a household with income between 80 and 100 percent of the Detroit-Warren-Livonia Metropolitan Statistical Area median income;

(c) Any fines or penalties imposed by the city for a violation of this section.

The fees collected under this subsection shall be deposited into the Detroit Housing Trust Fund, unless required to be deposited into another fund pursuant to federal or state law.

Section 2. All ordinances, parts of ordinances, or resolutions in conflict herewith are repealed.

Section 3. This ordinance is hereby declared necessary for the preservation of the peace, health, safety, and welfare of the people of the City of Detroit.

Section 4. In the event that this ordinance is passed by a two-thirds (2/3) majority of the City Council Members serving, it shall be given immediate effect and become effective upon publication in accordance with Section 4-118 of the 2012 Detroit City Charter. Where this ordinance is passed by less than two-thirds (2/3) majority of the City Council Members serving, it shall become effective no later than thirty (30) days after enactment in accordance with Section 4-118 of the 2012 Detroit City Charter.

Section 5. This ordinance shall be severable. If any Court of competent jurisdiction determines that any word, phrase or section of this ordinance is invalid, the remainder of the ordinance shall remain in full force and effect.

Using these sources

https://www.freep.com/in-depth/news/columnists/john-carlisle/2020/05/24/detroit-neighborhood-gentrification-protest-carlisle/4954702002/

https://detroitmi.gov/sites/detroitmi.localhost/files/2019-04/2019-04-05%20Inclusionary%20Housing%20Update%20April%202019.pdf

https://detroitmi.gov/sites/detroitmi.localhost/files/2018-06/HRandA%20Detroit%20Inclusionary%20Housing%20Study.pdf

https://www.modeldmedia.com/features/inclusionary-housing-ordinance-030318.aspx

 

 

Objectives

· To develop skills in analytic issue diagnosis, including:

Ø Assessing the magnitude of harm/opportunity/need using credible data sources.

Ø Identifying relevant theoretical models and empirical sources.

Ø Developing political context to understand constraints on policy action.

· To integrate analysis into a clearly written, persuasive, client-oriented memorandum.

 

Overview of Assignment:

This memo is the first step in a term project to analyze a public policy or planning issue. You will produce a three-page memo (single spaced) that frames the issue and discusses relevant theoretical frameworks and evidence. You will later incorporate this material into a longer staff report. Your work must meet the following criteria:

Use research to support a thoughtful and critical evaluation of the issue. We will assist you in identifying some key research sources. You should identify additional research sources to come up with an informed exploration of the issue that is based on credible information.

 

Produce a “client-oriented” statement of the issue. You must analyze the proposal for a hypothetical “client,” who might act or take a position (e.g., support or oppose a proposal) based on your recommendation.

 

Issue Diagnosis Paper: Problem Definition

“Frame the issue” for your client in a memorandum of about three pages, single-spaced, with a one-paragraph executive summary. This memo should be a thoughtful discussion of the “problem” or opportunity that uses approaches and questions discussed in class, and described in the readings. It should address the following points:

1. What “claims of harm” or statements of opportunity are relevant to this particular issue? Who are the stakeholders attached to the issue?

2. Use evidence to assess and evaluate the magnitude of the “harm” or “opportunity” and to substantiate the underlying frameworks that are relevant to the issue.

3. What is the political or organizational context that affects your client’s consideration of this policy?

 

Please identify and properly attribute all information used for your analysis. I will work with you to develop sources of information and coach you on proper attribution.

 

Please see the attached issue format for suggestions as to how you might structure your memo.

 

Issue Diagnosis Format

 

You must include section headings. The following is a suggested set of organizational headings for the issue diagnosis memo. Please do not follow this in a mechanical fashion, but adapt it to the particular argument you are making, which will vary across the five topics.

 

I. Executive Summary: In one or two paragraphs, summarize the argument in the memo. The main question is the character of the problem (or opportunity) related to this issue. What is the main issue (in one sentence)? What evidence of harm or need is there? What is the state of policy or planning and who are the main stakeholders?

 

II. Issue Overview: (synopsize issue at hand): In a paragraph or two, synopsize the issue from the perspective of the “client.” What decision is on the table? Very briefly, what policy or planning issue is at hand; what decision must be made (if any), who is going to make it, and when? This section is composed of two separate sections: 1) Problem Identification and 2) State of Policy or Planning.

 

1. The “Problem” with… (or “Need” for): This should be the “meat” of the issue diagnosis and should be around one page in length. Questions to consider include: What are the “claims of harm” (or opportunity)? What evidence is there regarding the magnitude of the problem or public “need?” Why is the phenomenon observed considered to be a “problem?” To what extent is there social science evidence to support political claims about the “problem?”

If it is appropriate to consider “causal theories” include a subsection to discuss this. In the case of cell phone regulation, for example, what factors influence automobile accidents? In the case of commuter rail, why is government intervention necessary? And what evidence is there that commuter rail is required?

 

Note that the internal organization of this section will depend on the issue you have selected and the argument you are making.

 

2. State of Policy/Planning: Here provide a paragraph or two that provide relevant political and/or organizational context. What is the current law or status of planning efforts? Who are the main stakeholders and what are their interests in the issue?

 

III. Conclusion: Summarize here your issue diagnosis in a paragraph. What are the most important things to consider with respect to this issue? (Note that this may contain similar points to those in the executive summary—it should not, however, be a cookie-cutter copy of it)

 

IV. Reference: Must Include a reference page (does not count towards the 3-page limit)

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