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Neighborhood Livability Working Group <br />Establish a Home Ownership and Investment Program <br /> <br /> <br />Problem Description <br />In campus area neighborhoods there is a strong incentive to convert single-family, owner-occupied homes to rental <br />properties. While a mix of single and multi-family homes and long-term and transient residents can add vitality to <br />an area, the livability and stability of a neighborhood can deteriorate as the proportion of rental property grows <br />and is followed by disinvestment or disinterest by committed property owners. Once the cycle starts, it can gain <br />momentum and be difficult to arrest as long-term residents grow tired of the worsening conditions and put their <br />homes up for sale. <br /> <br />Strategy Description <br />To combat this problem, a number of communities around the country have initiated programs to promote home <br />ownership and investment in the neighborhoods adjacent to their campuses. A common goal is elevating the <br />appeal of the university to recruit talented faculty, staff and students by offering them affordable, stable, safe <br />and convenient neighborhoods in which to live. The following provides a summary of common elements of home <br />ownership programs: <br />Resources for purchasing assistance (forgivable or low-to-no interest loans for down payment assistance or <br /> <br />closing costs, preferred lenders with discounted fees and mortgage rates, home ownership counseling, etc.), <br />maintenance (low interest loans for interior and exterior improvements) and for maintaining owner <br />occupancy (financial incentives to provide first right of refusal option to the program partnership to <br />purchase a home for resale to another owner occupant). <br />Collaborations between universities and community partners to create development corporations that <br /> <br />actively acquire, rehabilitate, and sell exclusively to first-time homebuyers within the targeted areas. <br />Program eligibility extended to all university employees after a probationary period. Some programs <br /> <br />have income eligibility requirements. Loans are often forgiven if the recipient resides in the home for a <br />designated period of time. <br />Strong university leadership and key partnerships with municipalities, financial institutions and non-profit <br /> <br />organizations (community development corporations). <br /> <br />Related Goals/Policies <br />Growth Management Policy 4: Improve the appearance of buildings and landscapes. <br /> <br />Metro Plan Policy A.25: <br /> <br />able housing and increase the stability and <br />quality of older residential neighborhoods through measures such as revitalization; code enforcement; <br />appropriate zoning; rehabilitation programs; relocation of existing structures; traffic calming; parking <br />requirements; or public safety considerations. <br />West University Refinement Plan Land Use, Housing and Commerce <br /> <br />Policy #10: The City and the neighborhood groups will encourage and promote owner occupancy in the <br />plan area. <br />Proposal #16: Ownership should be promoted through creative ownership mechanisms such as <br />cooperatives, a home purchase program for renters, and condominiums. <br />West University Task Force recommendations (June 2003): <br /> <br />Promote Longer-Term Residency provide economic incentives for improving the quality of housing stock to <br />attract long-term residents, create a different mixture of neighbors and a greater sense of stability and <br />investment in the neighborhood. <br /> <br />Costs and Potential Resources <br />A home ownership program requires a significant sustained resource investment. For example, the <br /> <br />UniverCity Neighborhood Partnership, involving Iowa City and the University of Iowa, began in 2009 with <br />a $1 million state grant and a $200,000 investment from the university. <br /> <br />34 <br />Page <br /> <br />