Housing plan could "redline" Des Moines, former Sen. Jack Hatch says
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.
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