Housing NOW!

Our recommendations and proposed policies are part of a process constantly in progress. Below are updates to keep you informed about any changes to our recommendations.

December 18, 2018 Agenda Action Request

Recommendations #3, #8, and #9 Approved

The City Commission adopted these amendments after extensive discussion with the community. That means the City Commission has approved 8 of the 13 originally proposed amendments. An additional 4 recommendations will undergo further review and changes before the Commission considers them. The Commission deferred 1 of the recommendations until the Master Plan process.

Dec 2018 Agenda Action Request(PDF, 982KB)

The Planning Commission recently approved several Zoning Ordinance amendments regarding affordable housing. These are recommendations 3, 6, 8, and 9.

Recommendations Worksheet

Review the worksheet created to assist the City Commission in deciding next steps for the final four remaining Housing NOW! recommendations.

Download Worksheet(PDF, 180KB)

Compare the recommendations

We've outlined all the details about the recommendations in the other accordion panels on this page. We also have a side-by-side comparison between what was originally proposed by staff and what was recommended by the Planning Commission. Columns 2 and 3 refer to the related Zoning Ordinance Articles.

Side-by-Side Comparison

Staff Report

Review our staff report for the Planning Commission on January 25, 2018 here. Want to watch a video of that Planning Commission meeting? Watch here.

January 25, 2018 Meeting Minutes(PDF, 1MB)

Look at the affordable housing activities accomplished with federal funds between 2012 and 2016.

• 123 homes were newly constructed or significantly rehabilitated for homeowners
• 277 rental units were newly constructed
• 158 homes were purchased with down payment and closing cost assistance
• 3,126 housing units were repaired or rehabilitated
• 3,779 people received rent and/or utility assistance

• Community Development Block Grant (CDBG)
• HOME Investment Partnerships Program (HOME)
• Emergency Solutions Grants Program (ESG)
• Neighborhood Stabilization Program (NSP)

The PILOT City Ordinance allows developers to pay a service fee payment in lieu of taxes. This resulted in the creation of 1,576 rental units during this same period.

Housing Advisory Committee accomplishments:

• Amended the City’s Homebuyer Assistance (HAF) program to increase homeownership rates and housing choice 

Great Housing Strategies: Addressing Current and Future Housing Needs accomplishments:

• Established an Eviction Prevention Program in the 61^st District Court
• Modified the Neighborhood Enterprise Zone (NEZ), Obsolete Property Rehabilitation Act (OPRA), and Brownfield Redevelopment programs’ policies to encourage and incentivize affordable housing development and mixed-income neighborhoods
• Amended the City’s Zoning Ordinance:
  • Reduced the minimum lot width and minimum lot area from 50% to 30% above that required for a single-family home to encourage affordable and accessible dwelling multiple-family dwelling units
  • Removed the 12-month occupancy requirement for Accessory Dwelling Units
  • Allowed micro-units, and reduced parking requirements for affordable housing and micro-units
  • Moved attached single-family requirements into the Special Land Use section so that the Planning Commission could extend greater flexibility in evaluating requests

This recommendation has been approved! 

Currently, property owners pay a standard annual 4% service charge for the life of their mortgage. We proposed and approved an ordinance to add a lower cost option. We proposed the option to pay a 1% annual service charge. If a property owner chooses this option, they would also be required to pay the equivalent of a 2% service charge annually. The money collected from this would go to the City's Affordable Housing Fund. 

This would lower costs for eligible property costs while putting funds back into affordable housing incentives and initiatives.

We also recommended clarifying the ordinance about net shelter rent calculations. Only rent restricted units within a development that's actually occupied by low-income tenants should calculate net shelter rent. 

Check out the recommendation and proposed ordinance here.

We updated this proposed policy and it was approved. See the updated version below

Updated January 30, 2018(PDF, 113KB)

This recommendation has been approved! 

To facilitate affordable housing, we proposed to provide incentives for homeownership. The outcomes we hope to see with this recommendation are:

• Increased home ownership rates and housing choice
• Increased personal wealth over time 
• Reduced number of vacant homes in neighborhoods

Access to down payment assistance is crucial. We want to expand these resources for low- and moderate-income future homeowners.

We already have a Homebuyer Assistance Fund (HAF) loan program. This provides up to $5,000 of down payment and closing cost assistance. Households with incomes at or below 80% of the area median income are eligible. Currently, homes must be purchased within the Community Development General Target Area (GTA). We recommend updating the policy with the following changes:

• Realign the policy's purpose. Change to increase homeownership opportunities and promote housing choice instead of simply providing financial assistance to eligible homebuyers 
• Remove the GTA requirement. Allow homeowners to apply HAF funds to a home they buy anywhere in the city
• Clarify the residential zoning requirement to include mixed-use structures
• Clarify the occupancy status toallow an existing tenant to purchase the home
• Remove the term first-time homebuyer to more accurately describe eligible applicants as anyone who hasn't owned a home within the last three years
• Increase the maximum loan amount from $5,000 to $7,500
• Increase household assets from $5,000 to $10,000
• Remove places where the policy references federal program requirements so other funding sources, such as the Affordable Housing Fund, can be used for the HAFprogram

Check out our draft HAF policy amendment here.

Check out the official recommendation sent to the City Manager here.

We continued the discussion at City Commission meetings. Check out the documents we developed:

• City Commission Resolution approving the amendments to the Homebuyer Assistance Fund
• Homebuyer Assistance Fund Policy Attachment

This recommendation has been approved!

Small scale development is referred to as "missing middle" housing. These are duplexes, fourplexes, bungalow courts and mansion apartments smaller than a large house. These housing types are crucial to expand affordable housing options. To reduce barriers to this type of development, we recommend changes to the development approval process. We'd like to see changes to the standards for development site layout and building placement.

We've discussed this with developers and have come up with four proposed changes to the zoning ordinance:

• Reduce the minimum dwelling unit width from 18 feet to 14 feet
• Allow developers to build two-family residential units by-right in the LDR zone district. Eligible properties should be located on a corner parcel or within 100 feet from a TBA, TOD, TCC or C zone district. The two-family lot width and area requirements should be the same as the single family units
• Remove the minimum lot area requirement for multi-family residential developments. Currently this is 20,000 square feet
• Allow developers to build multi-family residential units by-right in the LDR zone district. These developments are only eligible if the property is located within 100 feet of a TBA, TOD, TCC or C zone district. They shouldn't have more than 4 units per building. To qualify these need to comply with form, maximum building width and footprint standards

We recommend creating a Design Guidelines Manual to preserve the existing neighborhood character. These would also become City ordinances. We anticipate this will create more form-based architectural requirements.

We've discussed this with neighborhoods and heard that current standards don't protect neighborhood character. This includes lack-luster front stoops, flat facades and incompatible design. The Design Guidelines Manual will help address these concerns. 

Before adopting the proposed amendments, the City should consider:

• Will this change affect the neighborhood's character?
• Will this change affect the City's image in general?
• We could lose single-family dwellings in favor of new multi-family developments
• Single-family housing could convert to higher density residential structures
• These changes wont' directly increase the number of affordable housing units. It could create conditions that support increased housing supply
• Can the City enforce more people living here? (In terms of front yard parking, overcrowding, etc.)

We recommended this draft policy in November. Check it out here.

Want to see what the proposed buffer zones around TBA districts could look like? Check out our maps here.

Relevant Zoning Ordinance Articles

This recommendation is related to the below Zoning Ordinance Articles:

• Article 2(PDF, 828KB)
• Article 5(PDF, 294KB)
• Article 9(PDF, 575KB)
• Article 16(PDF, 444KB)

Compare the recommendations

We've outlined all the details about the recommendations in the other accordion panels on this page. We also have a side-by-side comparison between what was originally proposed by staff and what was recommended by the Planning Commission. Columns 2 and 3 refer to the related Zoning Ordinance Articles.

Check out the side-by-side comparison here

• Affordable housing
• Mobility
• Micro-Local Business contracting

• Hiring from the community
• Wage goals
• Public infrastructure investments
• Property development standards and conditions.

This recommendation has been approved!

The current residential density bonuses are incentives available to mixed-income housing projects. Currently these bonuses can't be applied to more traditional affordable housing projects, such as Low Income Housing Tax Credits (LIHTC) projects. This is because the percentage requirement for mixed-income housing bonuses conflicts with the requirements for LIHTC. Our proposed amendment would provide an additional bonus.This bonus could be used as an incentive for a traditional affordable housing project and it'd be available for LIHTC funded projects.

We met with housing providers about changing the ordinance. Based on our discussion, we recommend adding an Affordable Housing Bonus. Development projects would would be eligible for the Affordable Housing Bonus if they:

• Are located within 300 feet of a transit line
• Create at lease 20 units
• Rental units: at least 30% of units are at or below 60% AMI
• Owner units: at least 30% of units are at or below 80% AMI

We recommended this draft policy in November. Check it out here.

Relevant Zoning Ordinance Articles

This recommendation is related to the below Zoning Ordinance Articles:

• Article 5(PDF, 294KB)
• Article 6(PDF, 472KB)

Compare the recommendations

We've outlined all the details about the recommendations in the other accordion panels on this page. We also have a side-by-side comparison between what was originally proposed by staff and what was recommended by the Planning Commission. Columns 2 and 3 refer to the related Zoning Ordinance Articles.

Check out the side-by-side comparison here

This recommendation has been approved! 

We're interested in taking a market-based approach to increasing housing availability. The Housing Advisory Committee recommends the City buy or otherwise acquire property for affordable housing. We want to accomplish this through our proposed Property Acquisition and Management Policy. This policy would allow these acquisitions and set investment strategies to maintain neighborhood character.

The proposed policy was adopted on January 30, 2018 as it was originally presented to City Commission. Check out the Property Partnership Policy here.

This recommendation has been approved!

Accessory Dwelling Units (ADUs) are residential spaces added to a primary residence. The current policy on ADUs is restrictive so we propose to change it. We heard from residents at input sessions and researched other cities' policies.

Here are our recommended changes:

• Allow ADUs by-right in all zone districts
• Remove the lot area requirement
• Increase accessory building heights where an ADU is proposed
• Increase the floor ratio from 25% to 40% of the primary structure
• Remove the maximum number of bedrooms and maximum number of occupants. Except that no more than 4 unrelated individuals can live in a single dwelling

We recommended this draft policy in November, 2017. Check it out here.

Relevant Zoning Ordinance Articles

This recommendation is related to the below Zoning Ordinance Articles:

• Article 2(PDF, 828KB)
• Article 5(PDF, 294KB)
• Article 9(PDF, 575KB)

Compare the recommendations

We've outlined all the details about the recommendations in the other accordion panels on this page. We also have a side-by-side comparison between what was originally proposed by staff and what was recommended by the Planning Commission. Columns 2 and 3 refer to the related Zoning Ordinance Articles.

Check out the side-by-side comparison here

This recommendation has been approved!

Non-Condo Zero Lot Line Units are also known as attached single-family residential dwelling units. These are housing units attached to each other in a row.

Currently the Zoning Ordinance allows this type of development as either:

• A Special Land Use within the Low Density Residential (LDR) zone district
• A Permitted Use within the Mixed Density Residential (MDR) zone district

We consulted with neighbors, housing developers and architects about creating a policy amendment. Neighborhood association representatives voiced concerns about over-parking and the lack of code compliance enforcement resources. After digesting all the feedback, we're proposing to change the policy to:

• Allow attached single-family units in the LDR zone district if they have less than 4 attached units per structure and are located within 100 feet of a TBA, TOD, TCC, or C zone district. This should be measured from the closest point of the parcels on the public right-of-way
• Reduce the minimum dwelling unit width from 18 to 14 feet
• Remove the requirement for minimum lot width
• Reduce the minimum lot area from 3,000 square feet to 1,500 square feet in LDR
• Reduce the minimum lot area from 2,250 square feet to 1,250 square feet in MDR

We recommended this draft policy amendment in November, 2017. Check it out here.

Relevant Zoning Ordinance Articles

This recommendation is related to the below Zoning Ordinance Articles:

• Article 5(PDF, 294KB)
• Article 9(PDF, 575KB)

Compare the recommendations

We've outlined all the details about the recommendations in the other accordion panels on this page. We also have a side-by-side comparison between what was originally proposed by staff and what was recommended by the Planning Commission. Columns 2 and 3 refer to the related Zoning Ordinance Articles.

Check out the side-by-side comparison here

This recommendation has been approved!

The City Commission approved a residential rental application fees ordinance on Tuesday, July 10. The approved ordinance will go into effect November 7, 2018.

Under the adopted ordinance:

• Landlords can only charge a rental application fee for the amount it cost them to screen an applicant
• The landlord must refund the application fee if an applicant is rejected for any reason other than criteria disclosed in writing prior to applying, or for any violation of the ordinance. If the applicant is rejected because they don't meet the landlord's previouslyu disclosed criteria, a fee refund isn't required
• The conditions under which a rental application fee will be returned are specified

Check out the full ordinance here.(PDF, 27KB)

Purpose of the ordinance

The ordinance was designed in partnership with community stakeholders to:

• Protect applicants from unnecessary and predatory collection of fees. 
• Create a framework of mutual expectations between landlords and tenants for collecting and returning rental application fees.
• Improve housing affordability and housing choices for city residents. 

Written disclosure requirements

A rental property owner must provide applicants written information prior to taking payment for an application fee.  This document is known as a “disclosure statement” and must:

• Clearly identify the criteria the landlord will use to judge rental applications;
• Describe the screening process used, including contact information of person or party that will screen the application;
• Tell how much will be charged for applying;
• Explain each item to be paid for with the application fee; and
• Tell applicants how to file a complaint if they believe the ordinance has been violated.

Other important parts

• If an applicant pays an application fee and is denied, the landlord must give them in writing the reasons for rejection
• If an applicant is rejected for a reason not listed in the landlord's criteria, they  must refund the application fee to the applicant
• If a rental unit becomes no longer available after application and application fees are received, application fees must be returned within 14 days for any applications that were not screened
• A landlord can collect and hold an application fee for up to 30 days for an available unit so long as they provide a written receipt to the applicant
• Violation of this ordinance will result in a municipal civil infraction

This recommendation has been approved! 

Our goal is to have a citywide housing inventory mix of 70% market rate and 30% affordable housing. This should include a mix of homeownership and rental opportunities that accommodate various household sizes, abilities and needs.

Affordable Housing Fund

We want to address the income gaps and long-term equity issues in the city. To do this, we proposed establishing an Affordable Housing Fund.

Check out the original proposed policy here.

The resolution was adopted March 6, 2018.

Check out the Resolution here.

A nonprofit will be created, called the City of Grand Rapids Affordable Housing Fund (the Fund).

The Affordable Housing Fund will invest in creating and preserving affordable housing units - both owned and rented. We recommended appointing an Affordable Housing Fund board to:

• Provide recommendations for policy changes to support affordable housing programs
• Allocate funding within the City  Commission's priorities to applicants
• Manage the application, allocation and reporting processes for Affordable Housing Fund monies

The City Commission will establish the Fund's purpose and set the policy and parameters for spending.

Affordable Housing Fund Board of Directors 

The Affordable Housing Fund board of directors will be comprised of 9 directors:

• 4 directors appointed by the Housing Commission
• 4 directors appointed by the City Commission
• 1 Board Chairperson appointed by the Housing Commission, subject to City Commission approval

The Board will decide how to spend fund resources and make other mission related decisions.

Advisory Committee 

The Board of Directors will establish an Advisory Committee. The Advisory Committee will include representatives from:

• For-profit and non-profit developers
• Financial institutions
• Residents of affordable housing
• Others whose talents and experiences would be beneficial to the Advisory Committee

The Advisory Committee won't have decision making authority, but will provide advice and insights to the Board of Directors.

Management Agreement

The City, the Housing Commission and the Fund will all be held accountable to a Management Agreement. The initial term of this agreement is 3 years. It may continue year-to-year after the first 3 years unless it's terminated.

The Housing Commission staff will implement the activities the Board of Directors approves. If necessary, they'll also enter agreements with third parties to complete this work.

The Housing Commission won't be compensated for these services. They'll need to render a monthly statement of accounting to the Board of Directors.