Housing Policy Meeting September 27, 2018

Global Issue 7: Rental Housing Single Family vs. Multi-Family Mix Subsidized Housing Rental Registration/Licensing? Require Criminal/Financial Background Checks? Optimal # of Rentals for Middletown? 2015 Middletown Rentals Butler County Rentals w/o Middletown 47.3% 27.7% Housing Policy Meeting

Global Issue 7: Rental Housing 2015 Rental % by Census Tract map here

Global Issue 7: How Do We Compare? Rental Housing 2016 US Census Occupied Housing Units Units Percent Rest of Owner/Rental Analysis Middletown Butler County Ohio US Owners 10298 52.6% 71.5% 66.0% 63.6% Rentals 9286 47.4% 28.5% 34.0% 36.4% We are carrying the rental load for Butler County

Global Issue 7: Rental Housing Question # 1: What Should be Our Overall Ratio of Rentals/ Homeowners? Given our Discussion on Home Ownership, Our Beginning Overall Rental Housing Goal Should be 36.4% 2016 US Census Occupied Housing Units Units Percent Rest of Owner/Rental Analysis Middletown Butler County Ohio US Owners 10298 52.6% 71.5% 66.0% 63.6% Rentals 9286 47.4% 28.5% 34.0% 36.4%

Global Issue 7: How Do We Compare? Rental Housing 2016 US Census Percent Units Middletown Owner/Rental Analysis Ohio at US % Difference Owners 66.0% 52.6% 10298 12456 +2158 Rentals 34.0% 47.4% 9286 7128 -2158

Historic Comparison - October 2012 Global Issue 7: Rental Housing Question # 2: What is the Effect of Subsidized Housing on Middletown? Middletown PHA Income 14% = $0 Household Income 79% = < $15,000 Household Income Analysis of Every Housing Agency/Authority in Ohio Historic Comparison - October 2012 Total Total Subsidized Households PHA Units Percent State of Ohio 5,717,572 150,382 2.60% Middletown 23,296 2,255 9.70%

Global Issue 7: The Perfect Storm Rental Housing Date Number of Vouchers Added New Voucher Total 12-1-1999 75 Mainstream vouchers 849 5-1-2000 50 Family Unification vouchers 899 9-1-2000 55 Fair Share vouchers 954 11-1-2000 200 Non-Elderly Disabled vouchers 1154 10-1-2001 200 Non-Elderly Disabled vouchers 1354 1-1-2003 200 Non-Elderly Disabled vouchers 1554 10-1-2005 108 Tenant Protection vouchers 1662 Section 8 Ramp Up MPHA was formed in 1978. By 1999, the City had 774 Section 8 vouchers. From1999-2005, the city added 888 new Section 8 Vouchers This left Middletown with the highest concentration of subsidized housing in the State of Ohio

We Did This to Ourselves Global Issue 7: Rental Housing MPHA Local Preference: To get a Middletown Section 8 Voucher You Had to Live in Middletown. Poor People Moved to Middletown and Waited to be Selected To Receive one of the new 888 Vouchers…. We Did This to Ourselves Section 8 Ramp Up From1999-2005, the city added 888 new Section 8 Vouchers Poverty All Famlies, Percent Below Poverty Level Middletown Ohio United States 2000 9.20% 7.80% # Families 1,292 2015 21.00% 11.50% 11.30% 2,555 Add'l Families: 1,263 Over 15 Years, We Imported Into Middletown Over 1,000 Poverty Families Hoping to get a Section 8 Voucher

Global Issue 7: Rental Housing Low Income Housing Tax Credit Properties: Aspen Grove Apartments Canterbury Commons Apartments Vienna Forest Apartments Robin Springs Apartments Question # 2: What is the Effect of Subsidized Housing on Middletown? Historic Comparison October 2012 Total Households PHA Units LIHTC Subsidized Percent Middletown 23296 2255 719 2974 12.8%

Global Issue 7: Rental Housing Map of BMHA and LIHTC Properties here – Need Chet to create this map Question # 2: What is the Effect of Subsidized Housing on Middletown? $15,000 Household Income x 1.75% Income Tax= $263 2017 Estimates Total Households PHA Units LIHTC Subsidized Percent Middletown 23296 1,543* 719 2,262 9.7% * Estimate from BMHA/WMHA = 950 Section 8 vouchers in Middletown

Global Issue 7: Rental Housing

Global Issue 7: Rental Housing 2015 % below poverty by census tract map here Global Issue 7: Rental Housing Subsidized Housing Map here Rental Housing Map here Middletown is out of Balance with Butler County and Ohio on: Poverty levels Subsidized Housing Levels Number of Rentals Question # 3: What is the Balance Between Subsidized Housing, Affordable Housing, Poverty Levels, and Neighborhood Improvement?

Global Issue 7: Rental Housing Question # 5: How Do We Compare with Butler County and Ohio on Single Family/Multifamily Rental Ratios? US Census   (No Midd) Middletown Butler Co. Ohio Total Rentals 9,286 32,959 1,565,964 Multifamily (3+ Units) 5,117 55.10% 21,669 65.70% 960,616 61.30% Single Family (1-2 Units) 4,169 44.90% 11,290 34.30% 605,348 38.70% Total % of Single Family Used as Rental 23.80% 11.20% 15.20% We are Out of Balance with BC and Ohio on Single Family Homes Being Used as Rental Property

Global Issue 7: Rental Housing Question # 6: How Do We Balance with U.S.? Answer: Reduce Single Family Rentals By 3,086 Rental Units 2016 US Census Occupied Housing Units Units Percent Rest of Owner/Rental Analysis Middletown Butler County Ohio US Owners 10298 52.6% 71.5% 66.0% 63.6% Rentals 9286 47.4% 28.5% 34.0% 36.4% US Census   (No Midd) Middletown Butler Co. U.S. Total Rentals 9,286 32,959 1,565,964 Multifamily (3+ Units) 5,117 55.10% 21,669 65.70% 61.30% Single Family (1-2 Units) 4,169 44.90% 11,290 34.30% 38.70% Used as Rental 23.80% 11.20% 15.20% Middletown @ 36.4% (Ohio) Rentals = 7,128 Rental Units Middletown @ 15.2% (U.S.) Single Family Rentals = 1,083 Single Family Rental Units

Global Issue 7: Rental Mix Tools Rental Housing Question 5: What Tools Add New Homeowner Housing Add New Market Rate Multi-Family Units Demolish Poor Quality Rentals Remove Single Family Rentals in the Industrial Buffer Area Fill Vacant Houses with Homeowners Convert Single Family Rentals Back to Homeownership Single Family Rental Tax – Revenue to Nuisance Abatement Fund Question 5: What Tools Can Be Used to Make Changes?

Danter – Residential Demand MULTI FAMILY DEMAND EST. YEARLY DEMAND UNITS MODELS RENT RANGE Conventional Suburban Apartments 200 Studio, 1,2 and 3-Bedroom $750 - $1,500 Integrated Use 170 Studio, One-, Two - & Three Bedroom $850 - $1,850 Townhouse 120 Two- & Three-Bedroom $1,400 - $1,900 Senior 180 One-, & Two-Bedroom $850 - $1,350 Total Annual Demand 670   Housing Policy Meeting

SECTION 3 - WATER & SEWER SERVICE APPLICATIONS Global Issue 7: Rental Housing Question 6: Do We Need to Regulate our Landlords? Single Family or All Landlords? SECTION 3 - WATER & SEWER SERVICE APPLICATIONS                                                                                                                         3.1       APPLICATION FOR SERVICE                                                                                Application for water and sewer service shall be made by the owner for each property.   If the owner of any property elects to have his tenant or lessee sign for the water and sewer service, the tenant or lessee does so as the agent of the owner.  The tenant or lessee shall be held responsible for all charges accrued during time of occupancy.  However, the owner must apply for service in the case of a master meter serving more than one unit.     (c)        Each applicant shall state whether he is the owner, or if not, who is the owner and shall furnish the owner’s address and phone number.  The City has the right to request local contact information from the property owner.  Failure to provide this information after requested could result in denial or termination of water service.  All master meter applications must be in the owner’s name.

Global Issue 7: Current Standards: Rental Housing Local Nuisance Ordinances –trash and tall grass* 2 Full Time Inspectors $250,000+ Annually Mowing Grass and Removing Trash *Notice Required. Statutory Time to Correct the Violation. Cost Assessed to Property on Property Tax Bill. Housing Policy Meeting

Global Issue 7: Current Standards: Rental Housing Local Nuisance Ordinances –trash and tall grass 2017 Code Enforcement Activity Resolved Type # Inspections Voluntarily Abatement Commerical 974 371 15 Residential 1200 898 950 Nuisance 6417 1308 3026 Total Abatement Assessments to Property in 2017: $688,975.41* *2.5 X Actual Cost Housing Policy Meeting

Global Issue 7: Current Standards: Rental Housing Chronic Nuisance Ordinance- 2 drug related or 3 property nuisances* Enforcement Started January 1, 2018 Major Warrick in MPD with Clerical Support * Waiver of penalties with criminal background check and immediate action upon Notice of Violation. Housing Policy Meeting

Global Issue 7: Improving Landlord Compliance Rental Housing Rental Registration/Licensing Require Criminal/Financial Background Checks Question 6: Do We Need to Regulate our Landlords? Single Family or All Landlords?

Registration Ordinances Global Issue 7: Rental Housing Ohio Rental Registration Ordinances Partial Listing… Centerville Oxford Cleveland Barberton Solon Akron Warren Youngstown Lakewood Mentor Parma Heights Cleveland Heights South Euclid Painesville Question 6: Do We Need to Regulate our Landlords? Single Family or All Landlords?

Exterior IPMC Compliant Criminal Background Checks Global Issue 7: Rental Housing Rental– Ordinances Category Low End Moderate High End Fees $0 $160/Unit Time to Register Transfer of Title Bi-Annually Annually Inspections of Property None Exterior IPMC Compliant IPMC Compliant Lead Paint Escrow Repair Costs Fines for Non-Compliance Civil Fine Daily 4th Degree Misdemeanor Crime Prevention Criminal Background Checks Crime Free Addendum Question 6: Do We Need to Regulate our Landlords? Single Family or All Landlords? Question 7: Do Our Existing Nuisance Ordinance Protect Us From Negligent Landlords?

Global Issue 11: Unintended Consequences What are the Unintended Gentrification Designated Redevelopment Areas Property Tax Abatements Other Tools What are the Unintended Consequences of our Global Plan and What Tools Are Available To Help? Housing Policy Meeting