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HomeMy WebLinkAboutMN-RHAC-1988-12-19 r Rental Housing Task Force December 19, 1988 DRAFT MINUTES (by SJ) Present: Jackson (Chair) , Killeen (Vice-Chair) , Chase, Howard, Lewis, Lytel, MacDougall, McLaughlin, Rector, Shanter, Weiss; members of the public and press. Meeting called to order at 6:35pm. Jackson welcomes all present and asks members of the task force to identify themselves briefly. Jackson then mentions contents of packets distributed at start of meeting to all members. Contents are: copy of list of task force members; resolution of Common Council authorizing creation of task force; 1987 study by City Planning staff on "Supply, Demand, and Affordability of Housing;" "Strategic Housing and Neighborhoods Plan" adopted by Planning and Development Board in December 1987; "Rental Regulation: An Examination of the Rental Housing Market in Ithaca, NY amd Rental Regulation Techniques: Recommended Areas of Interest for the City of Ithaca" by David Bertenthal, July 1988. I. Discussion of Mandate from Common Council Jackson began with the following remarks: More than two-thirds of Ithaca's households live in rented rooms or ilartments. Yet, for many years, even as we were witness dramatic changes in the housing situation in the City, Awe has been done to address the needs and concerns of this majority of the City's population. Whether the number, size, and condition of Ithaca's rental housing is appropriate for our current and future needs has barely been examined. At the same time, escalating rents combined with reductions in Federal assistance for affordable housing have priced a substantial portion of the population in the area which would like to live in the City out of the market. While the wages of the working class have been going down, and benefits to the impoverished held down, rents in Ithaca have been rising. Last year, the City's Planning Board supervised the creation of a Strategic Housing Plan. The process of generating that plan led the Board to assemble a substantial amount of information about the housing situation in the City. However, when it came to recommending specific actions to assist Ithaca's renters, in particular, little consensus emerged and little accomplished. When Common Council acted this fall to create this Task Force, it gave us the opportunity --indeed, the obligation-- to begin the critically important process of addressing the needs --sometimes urgent-- of Ithaca's present and future residents. While I am sure that we will find our six month term very short in terms of trying to come up with workable recommendations for Common Council, I believe that we owe it to all those who have waited in vain for many years for some action, who struggle to make their monthyl payments, who struggle to find any place at all which they might afford, to move as quickly as we can. Jackson concluded with three observations about the mandate as presented in the Council resolution: 1) that the Task Force was obligated to conclude its work and present its recommendations to Common Council by June 19, 1989; 2) that the range of topics assigned to the Task Force was exceptionally broad and, as a result, requires the Task Force to narrow its focus rather quickly if we are to make any progress; and 3) that among the mandates from Council, the one by which we must be strictly bound is that of advising Couuncil on the creation of a permanent Rental Housing Board. Killeen observed that the selection of a new Building Commissioner will be of great importance to renters in the City; that different candidates for the position have very different orientations; that the Task Force may wish to consider the relevance of this position to the topics of our deliberation. II. Issues of Particular Interest to Task Force Members Weiss: moving here finds rents outrageously high, and what you get for the money not very satisfactory. particularly interested in exploring options for increasing cooperative ownership, mutual housing, and other alternative forms of housing ownership. Rector: working for Cooperative Extension, often hears from tenants with problems. particularly interested in seeking ways to make sure that both tenants and landlords are aware of their rights and responsibilities; ways to enforce these rules better; ways to insure fair treatment on both sides. MacDougall: believes it very important that action follow from the work of the Task Force, that it not just result in yet another study; that the City and County needs to make a serious commitment to housing, including a commitment of resources. Problems of affordability require shift of attention from private homeowners to the working poor; she (not untypically) pays 68% of her take home pay in rent, compared to the Planning Department's rule of thumb that noone should pay more than 30%; definitions of income eligibility for governmental assistance exclude many people who really need such assistance; security deposits increasingly required make it even more difficult: for example, $1000 required up front as a security deposit for a $250 per month studio apartment. Problems of quality include faulty locks, windows, limited closets, soundproofing, maintenance, and off-street parking; that these conditions reflect a failure of landlords to reinvest in their properties. Problems of enforcement observed for example in the practice which allows landlords to rent their units even while they are in violation of building codes. Lewis: concerned with enforcement, affordability, and availability; especially for families, the working poor; sees difficulties, for example, in situation of family on public assistance living in building which is in violation of codes but who are afraid to call the Building Department lest they find themselves without any place to live. Notes ,. that problems of affordability of homes for families extends into the category of home ownership. Lytel: as only renter on Common Council, has strong personal, as well as policy, interest in rental housing; important to take note of conflicts which exist between different segments of Ithaca's resident population; important, if Task Force is to be effective with Common Council, that there be as much unity as possible within the Task Force; most important task is the creation of the permanent Rental Housing Board; also important to serve as a group which articulates the needs of the rental housing community. Howard: as manager of more than 600 rental units, here to present the minority perspective (on the Task Force) of landlords. Feels it perfectly understandable that rents have been escalating at a time when banks use floating interest rates, when taxes and utilities are increasing rapidly. Thinks it important that landlords receive fair treatment too. Notes that Cornell, which houses only 39% of its students, charges those students $290 per month; meanwhile, Ithaca College, housing 65% of its students, charges only $240 per month. McLaughlin: having come from Albany, appalled by rents here. Particularly concerned about the disappearance of affordable housing for working families. Partly related to decline of Section 8 federal funds. Also, as those units in West Village which were subsidized with Federal funds 15 years ago fulfill their obligations they are being rented at full market rent, pricing most families out of the market. This leaves families in West Village with no place to go. Shanter: wishes to help by making her expertise in finance available to the task force. Chase: rents have escalated rapidly in recent years; appreciates Howard's participation on Task Force, but does not envy him; rising rents have led to declining standards of living for many; believes we may have to look at some ceiling on the costs passed on to renters. Killeen: we should look at ways of helping starting renters; perhaps a revolving loan fund. Jackson: have to explore options for financing affordable housing from State and Federal sources; have to find ways to permanently involve tenants in City policy-making; have to explore mutual housing and other ways of allowing renters to become owners; have to explore feasibility of rent control. III. Comments from the Public Danny Williams: had to borrow $800 in order to pay deposit for his apartment; feels that if City needs more resources to finance affordable housing untapped resources could be found if enforcement were increased. For example, many buildings are rented without certificates of occupancy. If that violation were fined at $250 per day, then one year of violations would bring in more than $75,000. Rev. Gregory David: pastor at Calvary Baptist Church; came as a community leader to be involved in an issue which affects the community; compared to Philadelphia where he lived most recently, wages in Ithaca are lower, while rents are higher; concerned about a family of 5 in his parish, with both parents working, struggling to be able to afford $800 per month in rent; important to give attention to Ithaca's permanent residents. Theron Johnson: while rents appear high, rents have not increased any faster than any other prices; must be aware that rent control would lead to a decrease in the number of rental units. Larry Beck: Important to take account of the reality of costs faced by landlords. For example, considering buying a house in Ithaca, fair market rents would support a $50,000 mortgage from the bank, but the selling price was $99,000. Ben Nichols: glad to see Task Force in existence; assures us that many members of Council will be very receptive to recommendations; however, when those recommendations involve spending money, it will be much more difficult to act; while City moving on setting up Housing Trust Fund, still unclear to to find revenue for fund; important to consider a Rental Registry as one possible measure. Important to remember role of Cornell and IC in driving up costs of housing for families. Stephen Hertzberg: high rents follow from shortage of housing owing to Cornell's failure to house reasonable number of students; question is how to get Cornell to house 55% of its students, instead of 39%. Important to recall that income from apartments is important to some working families who own income apartments; as a result, rent control would limit their incomes; the crucial task is to unite working families; whether they rent or own. IV. Organization of the Work of the Task Force After discussion, the Task Force agreed by consensus to give attention to six topics: impact of Cornell on rental housing situation; sources of funding for affordable housing from Federal, State, and private sources; tenant/landlord relations; enforcement of building codes; mutual housing and other forms of alternative ownership; and, rent control, rent regulation, and/or rent registry. The Task Force decided to devote its next meeting to Cornell, the meeting following that to funding sources. The next meeting of the Task Force will be on January 23, 1989. From that point forward, the Task Force will meet on the second and fourth Mondays of each month. All meetings will be at 7:00pm in City Hall. Meeting adjourned at 8:05pm.