minhpd 07-25-22 - Laserfiche WebLink

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At the invitation of the Chair, Director Leininger discussed the City's various programs to promote affordable housing. Director Leininger discussed the City's first-time home buyer program, mentioning the cap on the value of the home ($149,900). This cap was set by HUD in 2015 and needs to be re-set to a higher value. He explained that the Department is currently researching programs in other states that set caps on property tax reassessments so that long-term residents do not experience the full brunt of them. He spoke about the rapid increases in sale prices for single-family homes from 2011 to 2021. Councilmember Bullock summarized that there are two different aspects of owner-occupied affordability 1)the original purchase price and down payment needed to get into a home and 2) assistance with the cost of home maintenance, rising utility costs and taxes. Director Leininger noted that the particular programs that address both issues are not mutually exclusive and that a qualifying applicant could benefit from multiple city and Lakewood Alive programs. Mr. Andrews, Director Leininger& Chairman Bullock further discussed the down payment assistance program. Mr. Andrews flagged that the program requires those with single family homes to repay the assistance monies upon sale of their home. Those who use the program to purchase a double do not. He asked the city to consider full forgiveness for those purchasing single family homes under the program. Councilmember Bullock speculated that the reason could have been that many years ago doubles were undervalued in the city, whereas that is no longer the case. Director Leininger acknowledged that this decision is controlled at the local level and expressed open-mindedness to re-evaluating it. Chairman Bullock flagged as an action item that Council and the administration advocate for the need to raise the cap on the purchase price of a house in order to receive HOME assistance, noting that so few homes in the city are currently available below the cap of$149,900. Councilmember Shachner pointed to the issue of limited housing supply as one factor contributing to rising prices. He asked if the city has experienced requests for variances and/or proposals to build multi-family housing in areas of the city that are zoned as single-family. Commissioner Parmelee replied that the department has not received any such proposals, though it has received many proposals for additions and renovations on single-family homes. Councilmember Shachner remarked that the city does not have a mechanism to control rents and that the Ohio General Assembly has prohibited municipalities from implementing any kind of caps on rent. Councilmember Shachner and Director Leininger had an exchange regarding the legacy of the city's zoning code and the interests served by maintaining it, or potentially changing it. It was 2