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2002 MAYOR'S AFFORDABLE HOUSING TASK FORCE RECOMMENDATIONS

A Printable Version of the 2002 Mayor's Affordable Housing Task Force Report and Recommendations is available.  For the printable version, you will need Adobe Acrobat Reader.  If you do not have a current copy of this free software, you can download it now.

1.  PRESERVATION OF EXISTING HOUSING
2.  PRODUCTION OF NEW HOUSING
3.  PROTECTION OF VULNERABLE RESIDENTS
4.  PROMOTION OF AFFORDABLE HOMEOWNERSHIP

1.  PRESERVATION OF EXISTING HOUSING

LOCAL

1.1. Adopt a flexible rehabilitation sub-code
Adopt a flexible rehab sub-code that provides clear guidelines for each category of rehabilitation, increases the predictability for property owners and reduces the cost of rehabilitation. (Unanimous)

Discussion: Vermont has the second oldest housing stock in the nation, which means that rehabilitation and conversions are a critical aspect of efforts to expand the supply of affordable housing. Existing buildings that were built to comply with an earlier building code or with no code at all are often still safe and sound. Cities across the country are discovering that it is no longer logical that a building which can remain unimproved must be upgraded in numerous respects, many of which provide minimal safety improvement, simply because the owner chooses to improve the building. This approach often discourages owners from making any improvements. The building code, which is designed for new construction, can add unnecessarily to the time and expense of rehabilitating existing buildings because it was not written with existing buildings in mind. For new construction, complying with the building code is a straightforward process, but it is difficult to apply the code rationally and predictably to existing buildings. This is the reason for Burlington to develop provisions for existing buildings that are rational and predictable and that facilitate safe and sound rehabilitated structures.

1.2. Evaluate Housing Preservation and Replacement ordinance
Evaluate Housing Preservation and Replacement ordinance to determine if it impedes new housing development or housing rehabilitation. (Unanimous)

Discussion: In response to a trend of conversions of residential buildings to commercial uses and several high profile demolitions of residential structures, the City Council adopted Article 15 of the zoning code in 1988. Among other things, this provision requires "that an owner shall replace any housing units that are demolished or converted to a nonresidential use".

1.3. Increase the use of tax sales of delinquent properties
Increase the use of tax sales of delinquent properties for fairness to other taxpayers and to create housing rehabilitation opportunities. (Unanimous)

Discussion: Historically, the City of Burlington has allowed delinquent property tax payers a lengthy period of time before initiating a tax sale. This practice has the unintended effect of accelerating property deterioration and places an unfair burden on property tax payers that are current on their taxes. More timely enforcement of the tax sale provision in State law would send a clear message that delinquent property taxes and the resultant property deterioration that typically accompanies tax delinquencies will not be tolerated by the City of Burlington.

1.4. Secure voluntary affordability preservation agreements
The VHFA should be encouraged and supported in an effort to secure voluntary affordability preservation agreements for those privately owned Section 8 and Low Income Housing Tax Credit (LIHTC) developments without such protections. (Unanimous)

Discussion: There are between 75-100 privately owned apartments in Burlington that were rehabilitated in the early 1980s and received "project-based" Section 8 certificates or federal Low Income Housing Tax Credits. In order to prevent the conversion of those units to market rate housing when their contracts expire over the next 5-10 years, agreements need to be reached with each property owner that preserve the future affordability.

1.5. Enact Time of Sale Minimum Housing Compliance ordinance
The City should enact an ordinance that requires every rental property placed on the market for sale to be inspected for Minimum Housing Code compliance prior to sale. (Unanimous)

Discussion: This proposal should parallel the City's Time of Sale Energy Ordinance. The seller or buyer could assume responsibility for achieving code compliance, but in either case, Burlington's rental properties would see an incremental gain in compliance at an appropriate time for the cost of compliance to be weighed into the sale price. Obviously, properties that have been routinely maintained are unlikely to see any surprises in the time of sale inspection and compliance process. This ordinance should have an anti-speculation effect in the sale of rental properties. This proposal was included in both the Affordable Housing Task Report of 1986 and the Rental Housing and Safety Standards Report that was completed for the VT Department of Housing and Community Affairs in 1999.

1.6. Promote use of the federal Rehabilitation Investment Tax Credit
This federal tax credit is for 20% of the costs of renovations to an income producing building that is historic. The City should promote the use of this program among Burlington property owners. (Unanimous)

Discussion: With the nation's second oldest housing stock, Vermont is one of the states that utilize the RITC the most. However, the vast majority of income-producing rental property owners that undertake substantial rehabilitation are unaware of this federal tax incentive. Increased familiarity with the RITC among City code, planning and development officials will result in greater awareness and use of this significant federal incentive for rehabilitation.

1.7. Maintain and augment rental rehabilitation program
The City should continue to operate and augment the resources for a rehabilitation program for privately owned rental housing. (Unanimous)

Discussion: The Community and Economic Development Office operates a program that provides loans and technical assistance to private, for-profit owners of rental properties. With increased enforcement of minimum housing standards, this type of resource becomes especially critical to improving the condition of rental properties. The Task Force found that many resources exist for owner-occupied rehabilitation and the nonprofit housing organizations have access to an array of public funding sources. This program is the state's only rehabilitation program specifically created for private sector landlords.

REGIONAL

1.8. Promote housing rehab programs to other municipalities
Other municipalities should be urged to create housing rehabilitation programs for maintaining their stock of older rental housing. (Unanimous)

Discussion: Through the Vermont Community Development Program (VCDP), a consortium of municipalities (Burlington is ineligible) could apply for funding to operate a regional rental rehabilitation loan program. Using a combination of VCDP and private loan capital, these resources could be leveraged to provide significant assistance to rental property owners throughout the region.

STATE

1.9. Investigate escalating insurance costs
Ask the Vermont Commissioner of Banking, Insurance and Health Care Access to investigate rapidly escalating insurance costs for multi-family rental property and housing designed for people with special needs or to explore more affordable alternatives to private-sector insurance. (Unanimous)

Discussion: For many years owners of affordable rental properties have faced increased insurance premiums or fewer options among insurance carriers. This problem was exacerbated by the events of September 11, and the situation has reached crisis proportions that justify an investigation by state regulators. Some communities are developing more affordable alternatives to private sector insurance to save on premiums.

1.10. Support a statewide rental housing inspection program
Urge Burlington's legislative delegation and Chittenden County senators to support a statewide rental housing inspection program for communities that do not already have a local inspection program. Such a program should be designed so as to address any potential loss of housing through the provision of relocation benefits for tenants by enforcement actions, and financial resources to help property owners bring their units up to code or to build replacement units. (Unanimous)

Discussion: A bill was introduced during the last legislative session to create a statewide rental housing inspection program. As with item 1.5 above, this proposal was included in the Rental Housing and Safety Standards Report that was completed for the VT Department of Housing and Community Affairs in 1999. Vermont is one of the only states in the nation that does not have a program that provides routine inspection of rental properties. Both tenants and property owners adjacent to rental properties would benefit from such a program.

FEDERAL

1.11. Preserve the affordability of privately-owned, federally-assisted units
Urge Vermont's Congressional delegation to support a preservation tax incentive that would provide exit tax relief in order to encourage private-sector owners of assisted housing to transfer properties to "preservation entities" committed to preserving the stock as affordable housing. Congress should also establish federal funding for low-income housing preservation as proposed in S. 1365, co-sponsored by Senator Jeffords. Preservation should be included as an eligible activity under any National Housing Trust Fund proposal passed by Congress. (Unanimous)

Discussion: Included as one of the recommendations or the Millennial Housing Commission in May 2002, this proposal is necessary to preserving privately owned, federally assisted units. Most of the owners of these properties face such considerable capital tax liabilities that they will likely sell to the highest bidder and displace the tenants. Capital gains tax changes will encourage the sale of Section 8 New Construction/Substantial Rehabilitation projects and Low Income Housing Tax Credit projects to nonprofits in order to ensure long-term affordability.

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2.  PRODUCTION OF NEW HOUSING

LOCAL

2.1. Remove barriers to housing production
The City should address the following housing production barriers that were identified by the Task Force (Unanimous):
a. Allowable density does not reflect actual capacity to build;
b. Lack of resources for updating zoning code;
c. Zoning and subdivision ordinances are outdated;
d. Lack of predictable permit process;
e. De novo permit hearings.

Discussion: During both the task force meetings and the public hearings, considerable time was spent discussing the barriers to new development that are under the City's control. The above list represents the consensus of the Task Force about the top five barriers to new housing development over which the City has the greatest degree of control.

2.2. Gather housing development barriers from home builders/developers
The City should convene annually a focus group of homebuilders, rental property owners and developers to gather feedback on local barriers to housing development. (Unanimous)

Discussion: It has been many years since these stakeholders were invited by the City to provide their feedback on local barriers to development. The leadership of the various trade groups that represent these constituencies has already agreed to assist with organizing such discussions.

2.3. Implement the outstanding recommendations of the 1990 task force
The City should implement the following recommendations of the Regulatory Review Task Force report of 1990 (Unanimous):
a. Zoning code should be re-written to make it consistent with current planning objectives;
b. Zero lot line zoning, performance-based zoning and Floor Area Ratio zoning should be evaluated for feasibility in Burlington;
c. The State should allow Burlington to use "Mini-Act 250" in lieu of another review by the District #4 Environmental Commission;
d. Design Advisory Board should be trained not to attempt re-designing projects;
e. Development Review Board should adopt more clear and narrow guidelines for when members must recuse themselves for conflicts of interest;
f. DRB should support alternatives to the Fire Marshal's requirements for extra turn-around space or paved lanes around buildings;
g. DPW and the Fire Marshal's Office (FMO) sign-off on initial plans should indicate that substantive issues have been resolved. Final say over differing interpretations should reside with the City Engineer or DPW Director.
h. If a developer installs sprinklers when not required by code to do so, then the Fire impact fee should be reduced.

Discussion: In 1990, the City Council created a Regulatory Review Task Force, which was co-chaired by City Councilors Allen Gear and Erhard Mahnke, to recommend ways to remove barriers to housing development and rehabilitation. Out of the 61 recommendations of that group, only 8 remain unrealized. After considering the research on which recommendations have been implemented, the Affordable Housing Task Force voted to recommend that the above recommendations still had merit and deserve to be implemented.

2.4. Examine the impact of City fees on affordability of new housing
The City should examine City-imposed fees for such purposes as excavation and sewer connection to determine whether waivers for affordable housing will help encourage more new development of affordable owner-occupied units. (Unanimous)

Discussion: During both public hearings, we heard from Green Mountain Habitat for Humanity that certain City fees added considerable costs to their very low-income homebuyers. Currently the only City fees that can be waived are impact fees.

2.5. Provide training for members of the regulatory review boards
The City should provide annual training to the Development Review, Design Advisory and Conservation Boards to ensure that members fully understand their roles, proper meeting protocols, the rights of all parties and to ensure impartial project review on the part of board members. (Unanimous)

Discussion: The Task Force heard testimony that the citizen volunteers that serve on the City's various regulatory review boards are insufficiently trained in their statutory roles. The special committee set up by the legislature to improve the local permitting process also recommended this need.

2.6. Conduct "on-the-record" review
The City should conduct on the record development review hearings for projects that meet the requirements for Major Impact Review. (Unanimous)

Discussion: To date, very few Vermont communities have adopted on the record development review hearings. When a permit is appealed, the case goes to Environmental Court as a de novo hearing - a new hearing in which the judgment of the first hearing (DRB) is suspended and the case proceeds as if it had originated in Environmental Court. This means that when a party appeals a local permit (or an Act 250 permit), the permit application starts over. The information that was filed, the expert testimony offered, the public comments made, and the written record - all of this is ignored and the process begins anew. The additional time, costs and formalities associated with the use of the Municipal Administrative Procedures Act (MAPA) are the main concerns about adopting on the record review, but the Task Force believed that the benefits of on the record review outweigh these concerns. In order to address this problem at the local level, the City should allocate sufficient resources necessary to conduct zoning permit hearings on the record.

2.7. Explore local "anti-snob" zoning ordinance
The City should explore establishing a local anti-snob zoning ordinance similar to the Massachusetts law (Chapter 774). In 1969, the Legislature adopted "anti-snob zoning" legislation to make it easier to develop affordable housing throughout the state, especially in communities with little low- and moderate-income housing. This law allows the State to override local zoning restrictions in such communities if needed to allow for the development of low- and moderate-income housing. (Unanimous)

Discussion: The Task Force was intrigued by this concept and was not willing to reject it simply because the Massachusetts law covers the entire state. It is not clear how one community could adopt and enforce a similar law for the local permitting process - additional research is needed to determine if this policy is applicable in Burlington.

2.8. Insist that UVM create 400 beds by Fall 2003
UVM's housing plan (as amended in February 2002) does not meet the spirit of the 2000 Agreement for under-graduate housing. The City should insist that UVM fulfill its obligation by creating new, on-campus housing that will appeal to third and fourth year students ready for occupancy by the fall of 2003. (Unanimous)

Discussion: Many members of the Task Force believe that UVM's revised housing plans are not in compliance with the 2000 agreement between UVM and the City. At issue is UVM's change of plans to construct 400 beds on Redstone Campus - the revised plan involves building 214 new beds on Redstone Campus, create 100 new beds at the Living and Learning complex through renovation, and lease another 120 beds on Trinity Campus. Although the total number of new beds under the revised plan is greater than 400, many Task Force members believe that UVM should have to meet their obligation through new construction on campus - the 2000 agreement is silent on the question of location for the 400 new beds.

2.9. Create and maintain a database of sites for housing development
CEDO should identify properties for development and redevelopment opportunities and regularly maintain such a list for public use. In addition, the City should engage the owners of these properties in an effort to bring about mutually beneficial housing development. (Unanimous)

Discussion: Parties seeking to develop housing in Burlington often contact CEDO asking for a list or map of potential development sites. Rather than endorse the notion of the City creating such a list and passively waiting around for developers to ask for it, the notion here is for the City to identify the properties where housing development makes sense and to proactively engage the owners is a dialogue about the market for housing and the features of their property that make residential development a favorable option.

2.10. City-owned land should be identified for affordable housing
The City should identify property owned by the City where housing would make sense and promote such development with nonprofit and for-profit housing developers. For example, the City-owned parking lots located on Elmwood Avenue and Browns Court should be redeveloped for housing affordable to a range of incomes. (Unanimous)

Discussion: The Task Force recommends that the City inventory its land and assess the suitability of such land for housing development. If any such sites are identified, the City should make them available for affordable housing development through an open competition. CEDO and Planning should coordinate this inventory of lands, and all departments should cooperate in this process. Through long-term leases, resale restrictions, and limited equity provisions, the City should use this land subsidy to create perpetually affordable housing.

2.11. Evaluate the impact of the Inclusionary Zoning ordinance
The City should evaluate the impact of the Inclusionary Zoning ordinance on housing production and report to the Council. As required by Article 14 (Inclusionary Zoning), the Housing Trust should perform this function every two years. (Unanimous)

Discussion: While the Task Force unanimously approved this recommendation, there was not unanimity about whether Inclusionary Zoning discourages new private sector housing development. The question demands further research to determine what impact, if any, this ordinance has on the rate of housing production.

2.12. Develop method for payments in lieu of creating Inclusionary units
The Inclusionary Zoning ordinance should have a clear formula for determining the payment in lieu of building affordable units. (Unanimous)

Discussion: Under the Inclusionary Zoning ordinance, "the development review board at its sole discretion may allow any developer of a covered project that is not located within a waterfront zoning district to comply with the requirements of Sec. 14.1.8 and 14.1.9 (affordability requirements) by constructing inclusionary units on a site other than that on which the covered project is located, subject to the following conditions:

The number of inclusionary units to be provided by the developer or by the developer's designee through off-site development shall be no fewer than 1.25 times the number otherwise required by this article…" In the case of only one previous housing development project, the DRB (formerly the Planning Commission) allowed the developer to meet their Inclusionary Zoning requirements by providing a payment in lieu to the City's Housing Trust Fund. The ordinance as currently drafted does not provide a methodology to be used for calculating such payments. The Task Force did not debate the merits of allowing for the "off-site option", but rather recommended that if the City allows for this option, the methodology for calculating payments be clear and transparent.

REGIONAL

2.13. CCRPC should deny municipal development plans weak on housing
CCRPC should be urged to deny any municipal development plan that fails to include an affordable housing provision with specific production goals and every municipality should be urged to conduct a build-out analysis for future housing development. (Unanimous)

Discussion: Current State planning law allows regional planning commissions, or the Commissioner of DHCA, to deny any municipal development plan that fails to include an affordable housing component. However, neither the CCRPC nor the DHCA Commissioner has ever rejected a municipal development plan because of a weak housing element.

2.14. CCRPC should facilitate a voluntary "core compact" of communities
Each member community would agree to take certain threshold measures, e.g.. create a housing trust fund, increase zoning density, waive impact fees, or reserve infrastructure capacity to encourage affordable housing development. Communities that enact residential phasing would not be eligible for membership in such a core compact. (Unanimous)

Discussion: Among the key research findings of the University of Vermont's Community Outreach Partnership Center is "that in other states, regional housing coordination has been mandated by both state officials and supreme courts, in some cases over the strenuous objection of impacted municipalities… However, a voluntary fair share compact between the region's municipalities offers some distinct advantages over the more rigid top-down approaches attempted in other states. Most importantly, it allows towns to design an equitable long-term policy solution that achieves incremental progress without causing unnecessary divisiveness and political backlash."

2.15. Municipalities should cooperate on issues of infrastructure capacity
CCRPC should facilitate regional cooperation on issues of water and sewer as a means of developing more affordable housing in communities without adequate infrastructure capacity. (Unanimous)

Discussion: When municipal officials discuss regional distribution of affordable housing, the conversation inevitably leads to the issue of infrastructure - primarily water and sewer capacity. Given that infrastructure capacity is uneven among municipalities, and there is a purported desire and willingness to achieve a more balanced regional distribution of affordable housing, the conditions are ideal for CCRPC to broker inter-municipal agreements to "share" water and sewer capacity.

2.16. CCRPC should provide technical assistance with zoning updates
CCRPC should assist all 18-member communities with identifying land appropriate for new housing development and suggesting zoning changes that encourage the development of more affordable housing. (Unanimous)

Discussion: Many towns in Chittenden County lack adequate staff to develop zoning changes to encourage more affordable housing. CCRPC has professional planners that should develop a set of model zoning bylaws to provide towns with the tools to revise their own zoning to encourage affordable housing.

STATE

2.17. Continue and expand State funding for housing production
The State should at a minimum maintain current funding levels for the Vermont Housing and Conservation Board and the State Low Income Housing Tax Credit. Increased funding should be sought wherever possible. (Unanimous)

    Discussion: Since 1987, the Vermont Housing and Conservation Board has invested $92 million of state funds in affordable housing. This has helped to generate over $320 million in construction activity, created approximately 10,000 jobs in Vermont, and created or preserved over 6,000 units of housing - these benefits reach deep into our community. But the need for affordable housing far exceeds what the resources can deliver. To exacerbate an already bad situation, federal support for housing has plummeted since the mid-1980s. According to the recent report, Between a Rock and a Hard Place: Housing and Wages in Vermont, the Section 8 new construction/substantial rehabilitation program alone funded the construction/rehabilitation of 4,100 affordable apartments in Vermont between 1976 and 1985 (when the program was abolished). Over the next twelve years, only 2,384 units were built in Vermont with every remaining form of federal assistance combined."

2.18. Prioritize infrastructure funding for mixed-income housing
The State should give priority for all capital funding to municipalities that are taking steps to create housing in their communities that meets the needs of households with a range of incomes, including units that are permanently affordable. (Unanimous)

Discussion: Certain states have offered preferential treatment to encourage municipalities to adopt policies that promote affordable housing. In its 1999 report, the Joint Housing Committee of the Vermont Legislature recommended that the State "provide incentives, such as the authority to levy local option taxes, prioritizing towns for discretionary funds such as CDBG grants, pollution control, water supply, municipal planning funds, loans from the State infrastructure bank and transportation money for public transportation expansion and development, to municipalities to motivate them to adopt local policies such as cluster housing, denser development, inclusionary zoning, and sewer and water capacity set-asides for affordable housing projects that promote affordable housing development." Implementing this recommendation would stimulate substantive changes in municipal planning and development policies throughout our region.

2.19. State-owned land should be made available for affordable housing
The State of Vermont owns land in Burlington that is appropriate for housing development. An inventory of State-owned land should be created and requests for proposals should be solicited from affordable housing developers for appropriate sites. (Unanimous)

Discussion: During the 2001 Legislative session, the Vermont General Assembly passed H.483, "AN ACT TO STIMULATE THE DEVELOPMENT OF AFFORDABLE HOUSING." Among several other provisions, the Act directed the Secretary of the Agency of Commerce and Community Development (ACCD) to address the link between jobs and housing. One of the recommendations of the ACCD Secretary was to "direct the Vermont Housing Council and the ACCD Secretary to explore possible non-student uses of institutional lands owned by the University of Vermont and … explore the possible use of other state lands for housing development." The Task Force strongly urges that this analysis be completed and that the results be disseminated to the public.

2.20. Remove State barriers to housing production
The State should address the following housing production barriers that were identified by the Task Force (Unanimous):
a. Cost and time of appeal;
b. Lack of predictable permit process;
c. Permit appeal criteria overly broad and inclusive;
d. Redundancy in the local permit process and Act 250

Discussion: There are numerous relevant recommendations included in the Report of the Municipal Planning Review Commission to the Vermont General Assembly (January 2002). Although the Task Force decided not to endorse every one of these recommendations, they did recommend a comprehensive revision to the section of the Vermont Statutes governing the local permit process and how it interacts with Act 250.

2.21. State should discourage construction phasing
Communities that enact construction phasing should not be allowed to levy impact fees nor should they be eligible for discretionary state funding programs. (Unanimous)

Discussion: At least one Chittenden County municipality has enacted "phasing" of residential construction - a planning tool that limits the number of permits issued to construct new units. Williston's phasing policy limits the number of new units to 80 per year, but allows this limit to be increased for affordable units. If however, Williston issues permits for more than 80 units in any given year, the maximum number of units that can be permitted the following year is reduced by the corresponding amount. This practice has the effect of forcing other communities in the same housing market to absorb an increased share of new residential growth, and limits the ability of the housing development community to respond to changing housing needs.

2.22. State should review municipal plans and bylaws for housing element
The Commissioner of the Vermont Department of Housing and Community Affairs (DHCA) should review municipal development plans and zoning bylaws for consistency with state housing goals and reject any plans or bylaws that are found to be inconsistent with such goals. (Unanimous)

Discussion: The Commissioner of the Department of Housing and Community Affairs has the statutory responsibility to review municipal plans that have not been submitted for regional approval, specifically for compliance with state affordable housing goals. Such review should take place and, in cases where zoning bylaws are found to be in violation, the Commissioner should have the authority to suspend the municipality's ability to levy impact fees and its eligibility for discretionary state funding programs until the violation is corrected.

2.23. The State should undertake a comprehensive revision of Chapter 117
The Task Force endorses many of the recommendations of the Municipal Planning Review Commission (a.k.a. Chapter 117 Committee) and urges the State to place high priority on revising the act to make the development review process more efficient, predictable and fair to developers. (Unanimous)

Discussion: In 2001, the Vermont General Assembly passed Act 62, which created the Municipal Planning Review Commission (MPRC). Commonly referred to as the "Chapter 117 Committee", the MPRC was created to review 24 VSA Chapter 117, the regulatory component of the Planning and Development Act, and to recommend changes designed to encourage and promote responsible development of affordable housing throughout Vermont. While the Task Force was not prepared to debate all 38 recommendation of the MPRC, they did agree that most of the recommended changes to Chapter 117 will promote more affordable housing by reducing the amount of time and the potential costs of the local permitting process.

2.24. Change State law to raise the standard required to appeal a permit
The City should advocate for legislative changes governing the rules for appealing zoning and Act 250 permits that: 1) revise the definition of "interested person" as recommended by the Chapter 117 Committee; 2) codify the steps that must be taken prior to filing an appeal; 3) require appellants to participate materially in the development review process, as recommended by the Chapter 117 Committee. (Unanimous)

Discussion: The process required of adopting zoning bylaws and municipal development plans is an open and democratic process. Citizens have influence over the adoption of zoning bylaws and municipal development plans through their local elected and appointed officials. For the development review process, public funds are spent identifying interested parties and providing adequate notice for hearings. Filing an appeal of a permit serves an injunction to prevent the developer from continuing their project. As such, the State must raise the burden for appeals. There should be a higher burden of proof that there was a failure of due process and that the appellant was denied their rights under law. These measures would help discourage frivolous permit appeals that are intended to stop development or to compel the developer to modify their project outside of the development review process.

FEDERAL

2.25. Congress should continue and expand funding for existing programs
Congress should, at a minimum, maintain current funding levels for CDBG and HOME and should seek to increase funding levels wherever possible. In particular, the Vermont Congressional Delegation is urged to keep pushing for an increase in the small state minimum under the HOME program, as well as the amount allocated to states without Participating Jurisdictions. (Unanimous)

Discussion: Burlington currently receives slightly over $1 million of Community Development Block Grant (CDBG) funds and $500,000 of HOME Investment Partnership funds. The City uses roughly one-third of the CDBG funds and all of the HOME funds in support of affordable housing. The amount of funding that the City receives under both programs has remained relatively unchanged over the past decade. Any increase to either program will allow the City to assist more low and moderate-income households with their housing needs.

2.26. Congress should establish a new rental housing production program
Congress should establish a new rental housing production program that provides capital grants, such as the proposed National Housing Trust Fund that would build and preserve 1.5 million units of rental housing for the lowest income families over the next 10 years. (Unanimous)

Discussion: As noted under item 2.17, federal support for housing has plummeted since the mid-1980s. Other then the HOME program, which was created by Congress in 1992, there have been no new federal programs designed to stimulate new rental housing production for the past 15 years. The federal Low Income Housing Tax Credit is the only program specifically for new production, and applications for tax credits far exceed the amount available. For example in the semi-annual application round of August 2002, the total credits requested are approximately $2.7 million and the credit available is approximately $650,000.

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3.  PROTECTION OF VULNERABLE RESIDENTS

LOCAL

3.1. Enact a No Cause Eviction Control measure
Current State law provides inadequate eviction protection for tenants that are abiding by their leases. A No Cause Eviction Control Measure would lengthen the notice period required for no-cause evictions for tenants in good standing, with graduated notice periods based on length of tenure. (Majority; 10-2)

Discussion: Under Vermont law, a landlord may terminate a tenancy for no cause. The majority of Task Force members felt that lease-abiding tenants should be afforded some additional security of tenure by extending the notice period for no cause evictions. Currently, tenants without written rental agreements (leases) may be evicted provided that the landlord gives them 60-day written notice if renting monthly, 21 days if renting weekly, and 90-day written notice if the tenant has resided in the premises continuously for over two years and rents monthly. Under a written rental agreement, a tenant can be evicted under whatever time period the parties agree on, but no less than 30 days if renting monthly, and no less than 7 days if renting weekly. A tenant with a written lease who has resided in the premises continuously for over two years is entitled to no less than 60 days notice for a no cause eviction. The concept of a graduated notice period is that the longer that a tenant has resided continuously in an apartment, the longer notice period to which they are entitled.

3.2. Landlords should be allowed to charge a pet deposit
Burlington's Security deposit ordinance should be changed to allow the charging of a pet deposit - this would open up more apartments to pet owners while giving landlords greater protection against pet damages. Pet deposits should be set at an amount to be determined by the landlord, but shall not exceed one month's rent. (Unanimous)

Discussion: The City of Burlington has a separate ordinance regulating security deposits. This law limits the total amount of deposit a landlord can charge to no more than one month's rent, regardless of whether it is called a security deposit, a damage deposit or pet deposit. Advocates for both landlords and tenants spoke in favor of amending the ordinance to allow for landlords to charge an additional amount for tenants who wish to have a pet living in their apartment - this measure has the potential of freeing up more apartments for pet-owners by providing landlords with added protection against incurring the cost of repairs that may result from damage caused by pets.

3.3. Require that landlords give tenants a disclosure form
All landlords should be required to distribute a "housing disclosure form" that outlines the rights and responsibilities of both landlords and tenants. Consideration should be given to requiring certain lease provisions in all leases. (Unanimous)

Discussion: Both landlords and tenants often turn to Renting in Vermont, a booklet produced by Vermont Tenants, Inc. to answer basic questions about their rights and responsibilities. It summarizes Vermont's landlord/tenant law as well as some municipal laws, state regulations and Vermont Supreme Court decisions that also govern the landlord/tenant relationship. However, the Task Force found that in Burlington, both parties would benefit by distributing a Burlington-specific handout that includes the basics of local laws and norms of behavior that are expected of tenants, i.e. noise, trash, recycling, and housing codes. Landlords should be required to distribute such a document to all tenants.

3.4. Target Code Enforcement Resources for Rental Housing
The City Code Enforcement Office should utilize rental registration fees solely for the purposes stated in the Minimum Housing Ordinance, target its inspection program to units not inspected by housing authorities and other public third parties, and issue Interim Certificates/Certificates of Compliance for posting in apartment buildings. Posting a replacement Certificate shall cure unauthorized removal of the Certificate, and the Landlord should not be cited with a violation if the cure is made. (Unanimer third party.

The Task Force expressed support for broader Code Enforcement efforts on "quality of life" issues such as parking, trash, zoning enforcement and nuisance abatement on owner-occupied, vacant buildings and commercial properties. However, the Task Force was concerned that tenants may be paying the $50 annual fee to fund code enforcement that extends beyond the scope of the Minimum Housing Code. Section 18-30 of the Code of Ordinances states that "this fee shall be in an amount determined by and dedicated solely to the cost of providing rental housing inspection services, clerical, administrative and mediation support services for the housing board of review and landlord/tenant resource services." There was also concern that landlords are not posting Certificates of Compliance in their units (as required in the code) and that CE is not enforcing this requirement. This makes it harder for a tenant to know how their apartment stands in terms of code compliance.

3.5. Increase number of periodic inspections
Code Enforcement should conduct periodic inspections at the frequency required in the minimum housing ordinance. (Unanimous)

Discussion: Current ordinance requires that every rental unit in Burlington receive a Minimum Housing Inspection every three years. Routine inspections are considered to be a better way to ensure safe and decent housing than relying primarily on tenant complaints. According to some tenant advocates, an inspection upon-complaint system results in a low level of compliance, discourages tenants from making formal complaints and increases tenants' fear or landlord retaliation. According to the Code Enforcement Office, current staffing levels and workloads put inspections on a six-year cycle. With over 9,000 rental units in Burlington, the City should inspect 3,000 units per year.

3.6. Assess the impact of enforcing the Life Safety Code on existing units
Code Enforcement should not enforce the Life Safety Code as part of minimum housing inspections on existing apartments unless and until the City Council conducts an analysis on the impact of such enforcement on housing affordability and approves such a policy change. (Unanimous)

Discussion: The Life Safety code was created to improve the safety of all buildings, with many exceptions and equivalencies allowed for existing buildings. Fire safety officials often argue that most existing buildings can be modified to comply with the Life Safety code without undue financial burden, while owners of rental property and some tenant advocates caution that applying the Life Safety code to existing rental buildings will further increase rents and displace low-income tenants.

3.7. Notify tenants of Minimum Housing code violations
Code Enforcement should routinely send tenants notices of violations found during either periodic or complaint-based inspections. This practice would inform tenants of the violations and the order to correct, so that they are able to assist the inspectors in following up with enforcing compliance. (Unanimous)

Discussion: Under current practice, tenants are not routinely informed when Code Enforcement has issued a notice of code violation. Most tenants lack the expertise to understand what conditions are legal and what are not, or what the proper remedies may be under local and state law. Unless they know that a landlord has been ordered to make a repair, they cannot assist the inspectors with enforcing compliance. Tenant advocates argued further that tenants need a permanent written record of code violations to support a defense of rent withholding under state law, because without it they are vulnerable to eviction when they exercise their right to withhold rent for habitability violations.

3.8. Improve public access to inspection records
The City should provide certification of such records to citizens to facilitate the use of the records as evidence in court. All minimum housing inspection compliance orders and Interim Certificates/Certificates of Compliance should be available online. (Unanimous)

Discussion: Minimum housing inspection records are subject to the Public Records Act and must be made available for inspection and copying by any citizen who asks for them. There was praise for recent developments in the record keeping practices of the Code Enforcement Office, but those who rely on the records for legal purposes suggested that there is still room for improvement.

3.9. Explore exempting all federally-assisted housing from registration fees
The City should explore amending Chapter 18 to make all federally assisted rental housing units (including Section 8 and Low Income Housing Tax Credit units) eligible for exemption from registration fees, if a rational basis exists for this exemption. (Majority; 11-1)

Discussion: Ordinance should be amended to recognize that the ownership structure required under federal affordable housing programs makes many affordable housing units ineligible for the exemption of registration fees. To address this, the ordinance could be changed by changing the wording of Section 18-30, (a)(2) to read, "That unit meets both of the following two tests:" and removing subsection (a)(2)(c).

REGIONAL

3.10. A fair housing analysis is needed for Chittenden County
CCRPC should conduct an analysis of the potential legal implications of zoning and permitting laws and procedures in Chittenden County, especially with regard to possible disparate impacts on protected classes under state and federal fair housing law. In addition a Chittenden County focused fair housing audit of business practices should be conducted to determine the degree and extent of fair housing law violations perpetrated against individuals in several key protected classes. (Majority;11-1)

Discussion: There are landmark Supreme Court decisions in other states that found the exclusive zoning and permitting laws and procedures of certain municipalities served to perpetuate discrimination against and segregation of people of color and people with low incomes. Because low-income people are found in greater proportions among people with disabilities and people of color, land use policies that prevent the construction of affordable housing have been deemed to have a disparate impact on protected classes under federal and state fair housing law and have been overturned or corrected through court-mandated measures. In addition to a disparate impact analysis, CCRPC should conduct fair housing audits to quantify the degree of housing discrimination in the County.

STATE

3.11. Expand funding for the homeless and other vulnerable populations
The State should at a minimum maintain current funding levels for Homeless Shelters and Services funded through the State Office of Economic Opportunity, as well as the "Back Rent" Program, Temporary Housing Assistance and Assistive Community Care Services funded through PATH. It should increase funding levels wherever possible. (Unanimous)

Discussion: These programs provide a critical safety net that prevents many Vermonters from becoming homeless. Investment in such programs prevents the high personal and social costs of homelessness.

3.12. Landlords should be limited to reasonable third party charges
The legislature should clarify landlords can only recoup third party charges commensurate with the cost of obtaining credit reports, and other charges incurred with third parties that are reasonably related to qualifying the applicant for the rental of a unit. (Unanimous)

Discussion: With legislative leadership from the City of Burlington, the 2000 Vermont General Assembly passed a law prohibiting landlords from charging prospective tenants a fee to apply for renting an apartment. Such fees created an added financial obstacle to working people searching for an apartment. Under current practice, it is reported that landlords are charging fees for credit reports that exceed the cost of obtaining such reports.

3.13. Use welfare funds to provide housing assistance
Vermont should explore using untapped TANF reserve funds, without reducing benefit levels, to provide housing subsidies to families that are (or recently were) on welfare. (Unanimous)

Discussion: The 1996 welfare reform law gave states substantial flexibility to use federal and state funds to design programs that help families move from welfare to self-sufficiency. An increasing number of states and county governments are recognizing that housing assistance is critical to the success of welfare reform. Using federal welfare funds and state matching funds, these states are providing housing subsidies to families that are (or recently were) on welfare. Assistance ranges from tenant-based and project-based rental assistance to homeownership assistance for families that are making the transition from welfare to work. In Vermont, the main concern about this approach among low-income advocates is that current welfare benefit levels not be reduced in order to provide funds for housing subsidies.

3.14. Increase transitional housing and affordable assisted living
The State should create a demonstration project to encourage the development of more transitional housing for formerly homeless families and affordable assisted living for low-income seniors. (Unanimous)

Discussion: The largest increase in the homeless population throughout Vermont over the past three years has been among families - many of whom have at least one full-time wage earner. As long as a livable wage job remains out of reach for some Vermonters, public subsidies will always be needed to help families obtain and retain their housing. For low-income seniors, there is only one assisted living facility - currently under construction, with City financial support, at 3 Cathedral Square in Burlington. Until similar facilities are developed in every region of Vermont, low-income seniors will be faced with few options other than entering a nursing home - again, at considerable personal and social cost.

3.15. State should provide funding to help tenants retain their housing
The Vermont Agency of Human Services should be encouraged to redirect resources to support housing retention/eviction prevention programs that are more cost-effective than emergency housing. (Unanimous)

Discussion: In Burlington, an innovative partnership between the Burlington Housing Authority and the Committee on Temporary Shelter has been developed under the name of the Rental Opportunity Center (ROC). The ROC provides a range of services to tenants and landlords designed to help tenants find apartments using the Section 8 program and to enable tenants to successfully maintain their housing.

FEDERAL

3.16. Enhance the utilization of Section 8 vouchers
Urge the Vermont Congressional Delegation to seek reforms to the Section 8 Program, including creation of a "Voucher Success Program," designed to enhance the usefulness of vouchers in tight rental markets like Burlington's. (Unanimous)

Discussion: Only about a third of voucher recipients in Burlington are successful in finding an apartment because of our low vacancy rate and escalating rents. Housing Authorities need more flexibility in program operation in order to tailor the voucher program to local market conditions and to be able to provide more support in the housing search

3.17. Increase funding for the homeless and other vulnerable populations
The federal government should dramatically increase funding levels for the McKinney Homeless Assistance Program and Section 8 Vouchers. (Unanimous)

Discussion: Nationally, the Section 8 voucher program (rental assistance) serves only about a quarter of the families eligible for assistance. The Burlington Housing Authority, which serves all of Burlington and any dwelling unit located within a six-mile radius of Burlington, has increased the number of Section 8 vouchers from about 500 in 1995 to over 1,500 in 2002. Even with this significant increase in available subsidies, there is still a considerable waiting period for eligible applicants.

Discussion: The shortage of affordable housing in Vermont and nationally has led to a dramatic increase in the number of homeless families and disabled individuals. Emergency shelters are strained beyond capacity to meet this escalating need. Federal resources to fund homeless services are meager at best. Given the imminent convergence of welfare time limits with a downturn in the economy, it is highly likely that even greater pressure will be placed on local shelters. McKinney funding must be increased to accommodate the growing number of families and individuals who are simply unable to pay the high cost of housing in their communities.

3.18. Provide federal funding to support tenant retention
Federal funds should be available to assist public and nonprofit organizations and private sector housing providers to provide supportive services that help tenants retain their housing. (Unanimous)

Discussion: Too many assisted households fail to successfully maintain their housing. Providing supportive services to families to help them address issues that jeopardize their housing is far more cost-effective and humane than emergency shelters. Unfortunately, there are currently no federal programs that address this aspect of housing.

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4.  PROMOTION OF AFFORDABLE HOMEOWNERSHIP

LOCAL

4.1 Increase Housing Trust Fund revenue to support homeownership
The City Council should seek voter approval for increasing the Housing Trust Fund tax rate by one cent or by developing a new, alternate funding source for the purpose of supporting homeownership in areas of the city with low rates of homeownership. (Unanimous)

Discussion: The greatest challenge facing Burlington in our efforts to increase the rate of homeownership is a lack of grant funds available for rehabilitation to make older homes in central city neighborhoods competitive with surrounding newer homes. Most of the older homes do not appraise at a level high enough to finance the rehabilitation needed to bring the properties up to modern codes and livability standards. Capital grants for rehabilitation along with financial assistance for down-payments and closing costs and homeownership training, are among the most significant ways that the City can support increased homeownership in Burlington.

4.2 Encourage owner-occupancy of small apartment buildings
The City's Condominium Conversion ordinance should be amended to exempt the conversion of all rental buildings containing six or fewer apartments. The City should explore increasing the exemption further. (Unanimous)

Discussion: The City ordinance covers any rental property of more than 2 units. There are many properties that have been converted into multiple rental units that would be appropriate for conversion to owner-occupied condominiums. It may encourage homeownership in areas with low homeownership rates if the ordinance is amended to encourage the conversion to condominiums of 3-6 unit rental buildings. State law that governs condo conversion would still apply.

4.3 Encourage accessory apartments in single-family homes and barns/garages
Allow accessory apartments (not exceeding 25% of total square feet of a building) under the condition that the owner (person whose name is on the deed) lives in the home. An approved accessory apartment would be disallowed if and when the property ceases to be owner-occupied. This use would be subject to all applicable regulations. (Unanimous)

Discussion: A similar recommendation was included in the Affordable Housing Task Force report of 1986. This concept was suggested to the Task Force by a neighborhood activist in hopes that such a change would encourage the sale of larger single-family homes in the center city that are currently being rented as group quarters and conversion to owner-occupied homes. Very often, the fair market value of these properties operating as rentals is inflated beyond the price that is attractive for owner-occupants. By allowing the creation of an accessory apartment, the economics of the real estate transaction are more favorable for conversion to owner-occupancy.

4.4 Continue operating support for BCLT's HomeOwnership Center
The City should continue providing grants to the Burlington Community Land Trust to support the operations of the HomeOwnership Center. (Unanimous)

Discussion: With financial support from the City, the Burlington Community Land Trust operates the NeighborWorks HomeOwnership Center (HOC) of Vermont. The HOC provides training and counseling for homebuyers of all incomes and financial assistance to low and moderate income homebuyers.

4.5 Support for Section 8 homeownership
The City should explore ways in which it can directly support the growth of the Burlington Housing Authority's homeownership option program. (Unanimous)

Discussion: Burlington Housing Authority (BHA) operates one of the nation's most successful Section 8 homeownership demonstration projects. This program is a very effective way to extend the benefits of homeownership to very low-income families. The Task Force concluded that the City ought to find ways to provide direct financial support for the growth of BHA's Section 8 homeownership program.

4.6 City employees should be encouraged to buy homes in Burlington
The City should create an Employer Assisted Housing benefit to encourage City employees to buy homes in neighborhoods with low rates of homeownership. (Unanimous)

Discussion: FannieMae has developed an Employer-Assisted Housing initiative to help police, firefighters, and teachers purchase homes in the communities they serve. Such programs not only improve municipalities' ability to recruit and retain valuable employees, but they contribute enormously to the stability and security of neighborhoods. In Burlington, we will be working with FannieMae, the HomeOwnership Center of Chittenden County, and the Vermont Development Credit Union to design such a program. We will also urge our two largest employers, the University of Vermont and Fletcher Allen Health Care, to join us in this effort and create companion programs for their employees.

REGIONAL

4.7 Promote housing trust funds to other municipalities
CCRPC and the University of Vermont's Community Outreach Partnership Center (COPC) should promote the concept of municipal housing trust funds as a way to raise funds for low and moderate-income homeownership. (Unanimous)

Discussion: There are currently 275 housing trust funds in cities, counties and states throughout the United States. They are providing at least $750 million each and every year to support critical housing needs. In Burlington, the only municipality in Vermont with its own housing trust fund, the voter-approved tax (one cent on every $100 of property value) will generate $185,000 for fiscal year 2003. If the six largest municipalities in Chittenden County created housing trust funds, it would generate more than $1 million for affordable housing. In the fall of 2002, the COPC will hold a regional housing conference and actively promote the concept of municipalities creating their own local housing trust funds.

STATE

4.8 State funding for homeownership should be maintained
Vermont Housing and Conservation Board (VHCB) funding for the HomeOwnership Centers and the Homeland Program should be maintained. (Unanimous)

Discussion: Under the VHCB HOMELAND Program, lower-income households can receive financial assistance to purchase their own home from offerings on the private market. Depending on income level, need and other factors, grants of up to $20,000 are available through the Burlington Community Land Trust to reduce the purchase price. Homebuyer education and preparedness is provided through BCLT's HomeOwnership Center. State funding for both of these programs is often the key to unlocking the door to homeownership for low-income families.

4.9 Raise VHFA program limits to encourage homeownership in Burlington
Vermont Housing Finance Agency income limits and purchase price limits should be increased in every Census tract in Burlington as a way to make urban home buying more attractive. (Unanimous)

Discussion: At the City's request, the Board of Commissioners of the Vermont Housing Finance Agency recently increased VHFA's income and purchase price limits for two of Burlington's census tracts (4 and 10). Federal rules prohibit VHFA from making this change for census tracts with poverty rates below a set level. This change will expand purchase options to first-time homebuyers, but the limits need to be increased for other neighborhoods in order to extend this incentive to more buyers.

4.10 Reduce the reliance on property taxes to fund education
The State must reduce its reliance on the property tax as the primary means of funding education (Unanimous)

Discussion: Low-income households continue to experience significant property tax burdens even with Act 60. After monthly mortgage payments, property taxes are the single largest housing expense for homeowners - a cost that prevents many households from making the move from renting to owning.

FEDERAL

4.11 Federal incentives to encourage affordable homeownership production
Congress should establish tax credits and other incentives to encourage the production of owner-occupied housing affordable to low and moderate-income households and increase funding for homeownership counseling. (Unanimous)

Discussion: Administered through state housing finance agencies, the tax credit could be used to offset the developer's total development cost (in areas where the cost to build or rehabilitate a home is greater than the appraised value) or as a credit to lenders who provide lower-cost mortgages to qualified buyers. This concept is included in the Millennial Housing Commission Report, which was presented to Congress in May 2002.

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