Newton Housing Initiative

1. Newton Housing Initiative “ ” If we always do what we’ve always done, we’ll always get what we’ve always got.

2. Demographic Facts and Predications • 60% of the people working in Newton, DO NOT live in Newton • 30% of all owner-occupied houses are headed by a person 65 and older • Because of the City’s older population, deaths will exceed births over the next 10 years • Without a 4% in-migration, Newton’s population will decline moderately over the next 10 years • Newton has both an aging population and stagnant population growth Sources: CHAT Report, Comprehensive Plan, Financial Trends Demographics

3. Housing Inventory Facts • The City averaged the construction of 5single-family units per year during the last 5 years • In the past 10 years, the number of vacant units increased by about 50% and the vacancy rate increased from a little over 6% to about 9%. • Population, decline in housing quality, and foreclosures may account for a significant rise in vacancy during the last 10 years. Source: CHAT Report

4. The CHAT Report Identified our Community Strengths: • Existing housing stock • Excellent “Quality of Life” features • Location along I-80 and in proximity to Des Moines Identified our Community Challenges: • Maytag closing had the greatest impact on people in their late 20’s and 30’s • The City lacks a reasonable supply of housing that they can afford • Attracting jobs and people is meaningless without a housing supply

5. The Comprehensive Plan Identified our Community’s View: • Housing is an economic driver and employer • Housing is the life-blood of a strong, lively, and enduring community Identified our Community Wants: • To Grow Newton’s population, specifically targeting young families (Strategic Objective #1) • A concerted effort to address housing issues

6. How do you make a “concerted effort”? • Invest in neighborhoods • Upgrading the community’s housing stock • Improve the City’s curb appeal • Kick-start housing development of all sorts and levels in order to promote and support community and economic development • Young Professional • Executive • Starter • Condos • Single Family • Upscale Apartments • Highlight the community’s strengths and resources • Develop goals and pursue strategic objectives “ If you plan cities for cars and traffic, you get cars and traffic. If you plan for people and places, you get people and places. -Fred Kent, Project for Public Spaces ”

7. Community Strengths • Location • Population stability • Solid housing inventory (but declining in quality) • Quality of life features • Skiff Medical Center • Senior Housing • Land resources • DMACC • Organizational infrastructure This is not a lost cause and is possible IF the City is willing to make an investment.

8. Strategic Objectives Organizational Framework • Objective • Develop an organization focused solely on developing and restoring housing in Newton • What’s been done? • NHDC has been reconstituted and is an active partner in addressing housing issues • Moving Forward • Capitalization and financing remain a challenge, but progress has been made • TIF financing is being considered • Organizational Framework • Housing Preservation • Land Development Strategies • Property Maintenance • Marketing • Downtown

9. Housing Preservation Strategic Objectives • Objective • Rehabilitate low-priced homes and foreclosures • Moving forward: • D & D was an effective program that is worthy of reinstituting. • Should this include the purchase of low-priced homes in foreclosures to be rehabilitated and sold? • Should the homes be retained as rentals or rent-to-own program established? • Should the focus be on demolitions only? • Organizational Framework • Housing Preservation • Land Development Strategies • Property Maintenance • Marketing • Downtown

10. Land Development Strategies Strategic Objectives • Objective • Prepare, enhance, and market development sites to developers and builders • What’s been done? • Fountain Hills subdivision properties are assembled and the City has begun developing the RFP for builders • Moving forward: • Small Redevelopment Sites • Can we work with Habitat for Humanity? • Infill development • Large Redevelopment Sites • Available sites for large development surround the City on all sides • Infrastructure financing partnership must be set up through public/private financing. This may include: • Revenue Bonds • Public infrastructure bank • TIF • Infrastructure bonds • Organizational Framework • Housing Preservation • Land Development Strategies • Property Maintenance • Marketing • Downtown

11. Property Maintenance Strategic Objectives • Objective • Invigorate “Newton Quality” and “Red Pride” in the community, encouraging well-kept homes and neighborhoods. • Moving Forward • City has begun an aggressive property maintenance effort • Organizational Framework • Housing Preservation • Land Development Strategies • Property Maintenance • Marketing • Downtown

12. Marketing Strategic Objectives • Objective • Develop and implement a marketing strategy targeting potential new residents • What’s been done? • City, in partnership with the CVB, NDC, and Chamber of Commerce have begun a Community Branding Plan • Moving Forward • The Comprehensive Plan proposes as a high priority a community marketing initiative • Organizational Framework • Housing Preservation • Land Development Strategies • Property Maintenance • Marketing • Downtown

13. Downtown Strategic Objectives • Objective • Create a development plan for downtown with housing as an integral focus • What’s been done? • Newton is in the process of applying for the downtown to become a Main Street District • Moving forward • The revitalization of downtown will help lead to the establishment of a Strategic Development Plan with housing as an integral focus. • Organizational Framework • Housing Preservation • Land Development Strategies • Property Maintenance • Marketing • Downtown

14. Incentives & Investment • Housing is one of our highest priorities. • Development will not happen without a concerted effort and investment on the part of the City, our partners, and the community as a whole. • Options for investment as identified in the CHAT Report for Large Development Sites include: • Revenue Bonds • Public Infrastructure Bank • TIF • Infrastructure Bonds • Incentives need to be considered in order to help jump-start the housing market

15. Summary Review • The existing housing stock is…in general, a major capital and physical asset for the City and it needs to protected and maintained as any other physical asset. • Housing development = Economic development. The CHAT Report suggests that we treat residential infrastructure as analogous to industrial park infrastructure. • A goal of attracting more jobs and people is meaningless without a reasonable supply of housing that they can afford.

16. What role should the City play? • Do we allow the market to drive the housing agenda? • Should we just react to the market? Or do we try to control our future? I recommend that… we identify the future, develop a plan, and make the investment. “ Nothing ventured, nothing gained. ”