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HomeMy WebLinkAbout11-21-24 Public Comment - R. Johnson - Community Development Plan (Affordable Housing)From:Reid Johnson To:Bozeman Public Comment Subject:[EXTERNAL]Community Development Plan Date:Tuesday, November 19, 2024 12:14:26 PM Attachments:Reid Policy Term Paper - Housing.pdf CAUTION: This email originated from outside of the organization. Do not click links or open attachments unless you recognize the sender and know the content is safe. Hello, My name is Reid Johnson. I participated in the Bozeman Wheeler Center Housing Conference with Mark Eggy and others, and he prompted me to send my Housing Policy Paper to thisemail for review. Happy to answer any questions you may have, you can reach me at this email! Thank you :)Reid:) Reid Johnson State and Local Policymaking 11/12/2024 1.ISSUE EMERGENCE Affordable housing as an issue in Bozeman has spiked in the recent decade due to the rapid population growth of the city.Just between the years 2018-2023,the median home sales price rose by 89%(Erickson,2024).There are a number of factors contributing to this change;a University of Montana study shows the TV series Yellowstone has brought $730 million of tourism spending into the state,Montana State University’s athletics and academics have led to astounding growth in school size,and ripple effects of COVID continue to mobilize people to relocate from urban to rural areas.As a result,Bozeman experienced a 40%increase in population from the year 2010 to 2020,making it the fastest growing city in the United States (Randall,2024).Population growth in a town like Bozeman has various implications on the residents.Because it lacks the infrastructure to host large numbers of people,the local government is overloaded with conflicting interest groups and there is increasing frustration among citizens who have to deal with traffic,parking,and housing issues.Rising property taxes and a booming housing market have led Bozeman to its highest ever homelessness rate,and it isn’t just a local issue.The United States as a whole faces an ever growing homelessness crisis which is bleeding into smaller communities.In the process of crafting our founding documents, James Madison warned that the government ought to protect the minority of the occulent from the majority.His idea of Tyranny of the Majority predicted that if a governing entity is overwhelmed with too many groups to represent,finding the greater good for all would become virtually impossible (Kemmis,1990).This is a key ideology to consider in understanding the future of issues such as housing affordability and population growth on a larger scale. Montanans are thwarted with out-of-state investors pushing them out through financial means.Even the town mayor’s home,which he purchased in 2008,has tripled in value.Issues like this capture the public interest,and policymakers are called upon to react.As Gallatin Association Realtors stated,“getting affordable housing on the market is paramount to the health, longevity,and sustainability of Bozeman,”(n.d.). 2.SETTING THE AGENDA In pursuing a course of action,policymakers set the agenda.By framing this as a public issue and educating voters its importance,momentum will grow in the right direction.If not solved soon,housing affordability will continue to affect a large portion of Bozeman’s population.Currently,the median single family’s home price in Bozeman is nearing $1 million. The Human Resource Development Council estimates that in order to rent comfortably in Bozeman,a family would have to make an annual salary of $100,000,a number well above the median annual income of $51,000 (Hicks,2024).Citizens are already feeling the frustrations of an overwhelmed housing market.Key populations that this policy will affect include low-income families,the middle class,and out-of-state potential investors and relocators.Low-income families are a particularly vulnerable focus group because they are at risk of eviction and being forced to relocate.The middle class also flirts with this line of affordability,and citizens in this majority group will be the primary voters on such issues.One aspect that has proved important to citizens is the effort to preserve Bozeman’s small-town feel in the wake of huge economic development.A critical part of maintaining the things citizens love about Bozeman is keeping the streets clean and the people happy,both of which an affordable housing market can produce. Changes in local government have also been implemented following the rise in population.Montana House Bill 121,passed in 2021,requires that any rule or regulation proposed by local health officials must be approved by an elected body.Bozeman City Manager Jeff Mihelich called this an “attack on local control,”and Mayor Terry Cunningham criticized state legislature stating they are “drunk on their own power,and all other institutions be damned,”(Sakariassen,2021).Montana is known for its distinguished trust and fusion of legislative,executive,and judicial power in local government officials (Weaver &Lachapelle). By passing legislation that gives the impression that local officers are incompetent,the foundation of trust is destabilized and the culture undergoes a shift in values. 3.ALTERNATIVE SELECTION In order to create effective policy,the public interest has to be addressed.In understanding what this looks like for Montanans,policymakers will have to consider various key actors and outcomes of proposed policies.Bozeman and Whitefish considered inclusionary zoning,a strategy that mandates a set amount of affordable units in new housing projects. However,the state legislature responded with House Bill 259,which effectively bans local governments from utilizing this strategy.Under HB 259,developers cannot dedicate property to any specified income levels.In 2023,Senate Bill 105 also banned rent control throughout the state.These acts,along with HB 121,have discouraged local government because it makes their jobs more difficult.City Manager Jeff Mihelich stated that HB 259 “took away the opportunity to build 70 affordable units in Bozeman”(Sakariassen,2021).In turn,Bozeman attempted to implement its own voluntary inclusionary zoning act,but only a fraction of developers adopted it.It is now ultimately up to the developer how they want to design their property and to what audience they cater.This leaves a majority of the market,such as workers and students,without affordable options and pushes lower class people to relocate. Policymakers look to previous successes and failures in the housing market crisis.One example of a successful solution to the housing crisis was shown in Minneapolis,Minnesota. Like many other parts of the country,Minneapolis experienced a growth in size and economic development which made living less affordable for the middle class and low-income families.To combat this issue,the city council established a plan called Minneapolis 2040.By eliminating exclusive single-family housing zoning,policymakers were able to impede demand and remove discriminatory practices in housing (Kalahar,2023).Minneapolis was the first city in the nation to take this radical approach,but given its success rate,it is likely that other states will follow in similar ways. A shift in the right direction for Montana started with Senate Bill 245,which revised municipal zoning laws to allow multifamily and mixed-use development (Montana State Legislature,2023).The Governor's Task Force furthered this,calling for strengthening of SB 245 by relaxing height limits in cities (Dorrington,2024).By increasing heights to six stories rather than the current limit of four,this would allow for more people to live close to where they work and take advantage of the walkability of Bozeman.The Task Force also addressed the need for housing for the ‘missing middle’,and recommended building code provisions to motivate developers to diversify their housing market.By using the International Residential Code (IRC) rather than the International Building Code (IBC),developers could potentially create more cost-efficient housing at a quicker pace while still prioritizing safety and health standards. Other alternative policy suggestions produced by the task force emphasize the need for state funding to combat the housing crisis.In discussing funding to the Housing Montana Fund, the legislature “declares that it is in the public interest to establish a continuously renewable financial resource known as an affordable housing revolving loan fund to assist low-and moderate-income citizens in meeting their basic housing needs”(Dorrington,2024).Beyond this, the task force recommends allocating state funding to incentivize cities to eliminate regulatory barriers to multifamily housing construction. A key aspect to this issue is the citizens of Montana.Montanans feel very strongly that newcomers from different states are a negative influence and will chip away at a longstanding traditional culture.Therefore,many citizens do not support the expansion of resources and housing for a growing population that,in their eyes,does not have Montana’s best interest at heart.In order to gain the support of these stakeholders,policymakers must emphasize the benefit of more affordable housing and updated regulations to all citizens and lay the groundwork for a sustainable future. 4.POLICY ENACTMENT/IMPLEMENTATION Local government in Montana is currently at a tug of war between citizens who are against most economic development and government which sees this issue as an opportunity for growth and resources for the state.In crafting policies that are sustainable,policymakers have to consider more than just meeting demand with supply.Jacobs and others discuss the interplay between housing affordability and health investment,raising concerns for safe and sturdy housing complexes that cannot be rushed in the wake of development (2007).Ultimately,the Montana House and Senate must come to a consensus on how best to move forward in a way that supports Montana families and has the resources available to work with large population growth. A multifaceted approach is needed to produce long-term solutions to this critical problem.The Governor's Task Force stated the key areas where the public interest has to be addressed,and it is now up to the state government to implement these approaches.Incentivizing updated zoning and construction regulations,updating height limits,and allocating funding to programs working to solve this issue are all ways in which policymakers can ease the burden placed on local government.The lack of rent control leaves the government with only economic motivations to try and reel in the prices of construction and rent,but this is not a realistic approach in a capitalist society.Bearing this in mind,the state government should reconsider the possibility of legislation that controls the rent prices in cities,especially Bozeman.Policies that prioritize the needs of citizens further trust in government and lead to a happier,more sustainable community. 5.EVALUATION A robust,clear statement of what the government intends to do about public problems will further trust in government,leading to more efficient policymaking in the future.Currently, Bozeman is undergoing an unprecedented amount of construction.Students at MSU can point out multiple apartment complexes around town that were open fields just four short years ago. Maintaining a transparent relationship between citizens and policymakers is essential in a state that prioritizes its citizens'needs.The state must be clear in their intentions and establish policy that lays the groundwork for a healthy,sustainable future.In evaluating the effectiveness of the policy,tools such as surveys,statistics,and word-of-mouth passed through communities must all be considered.Governor Gianforte’s task force also addressed the need for Fair Market Rent Evaluation by conducting research on the competitiveness of the market and public opinion. Evaluators can also turn to established plans of policy evaluation.One example of this is the established Center for Disease Control’s Framework for Program Evaluation in Public Health.The framework includes six core principles as follows… 1)Engage stakeholders 2)Describe the program and agree on program goals and expected effects [..] 3)Focus the evaluation,including the high-priority evaluation questions and designs that maximize confidence in those answers 4)Gather credible evidence including data needed to answer evaluation questions,the sources from which those can be obtained,and the credibility of the data and data sources to the stakeholders 5)Justify conclusions using standards,analytic procedures,interpretation,and judgment to determine the extent to which evaluation conclusions are justified 6)Ensure use and share lessons learned (Leviton,2010) There are a number of opportunities for growth in Bozeman,but growth without proper infrastructure and resources is dangerous.With the correct allocation of funds and legislation alongside citizen engagement,Montanans together can build a sustainable future for the state and its people. Sources 1)Dietrich,E.(2024,August 22).Gianforte Housing Task Force suggests limiting urban parking requirements.Montana Free Press. https://montanafreepress.org/2024/08/22/gianforte-housing-task-force-suggests-limiting- urban-parking-requirements/ 2)Dorrington,C.(2024,June 11).Recommendations and Strategies to Increase the Supply of Affordable,Attainable Workforce Housing.Montana Governor’s Housing Task Force. https://deq.mt.gov/files/About/Housing/HTF-PIII-final-report-2024.pdf.1–97 3)Erickson,D.(2023,February 13).Lawmakers battle local governments over Zoning Rules -Montana Environmental Information Center.MEIC. https://meic.org/lawmakers-battle-local-governments-over-zoning-rules/ 4)Erickson,D.(2024,September 18).“double-edged sword”:Montana’s housing market least affordable in entire U.S.Bozeman Daily Chronicle. https://www.bozemandailychronicle.com/news/state/montana-housing-crisis/article_dbd5 7449-6044-5121-9d9d-722e40ce146f.html 5)Gallatin Association of Realtors (n.d.).Unified Development Code. https://irp.cdn-website.com/fb07c2e1/files/uploaded/GAR_Stance__UDC.pdf 6)Hicks,I.(2024,September 9).Can Bozeman find relief from its burgeoning rental market?.Montana Free Press. https://montanafreepress.org/2024/09/09/can-bozeman-find-relief-from-its-burgeoning-re ntal-market/ 7)Hicks,I.(2024,September 10).Can Bozeman provide affordable housing and preserve its small-town past?.Route Fifty. https://www.route-fifty.com/infrastructure/2024/09/can-bozeman-provide-affordable-hou sing-and-preserve-its-small-town-past/399413/?oref=rf-homepage-river 8)Jacobs,D.E.,Kelly,T.,&Sobolewski,J.(2007).Linking public health,housing,and indoor environmental policy:successes and challenges at local and federal agencies in the United States.Environmental Health Perspectives,115(6),976-982. 9)Kalahar,S.(2023,December 29).Housing affordability.State of the Region. https://stateoftheregion.com/blog/2020/12/housing-affordability/#:~:text=To%20tackle% 20the%20city’s%20housing,supply%20in%20a%20hot%20housing 10)Kemmis,D.(1990).Chapter 2.In University of Oklahoma Press (pp.9–25). 11)Leviton,L.C.,Khan,L.K.,Rog,D.,Dawkins,N.,&Cotton,D.(2010).Evaluability assessment to improve public health policies,programs,and practices.Annual review of public health,31(1),213-233. 12)Montana State Legislature.(2023,May 8). https://archive.legmt.gov/bills/2023/billhtml/SB0245.htm 13)Randall,S.(2024,February 21).Your guide to homer AK &Bozeman Mt -The Arrival Co Blog.The Arrival Co. https://www.thearrivalco.com/blog/fastestgrowingcitybozemanmontana-wpw8b-78mw9- kamnc-r4lnb-gma8h-bye3g#:~:text=Bozeman%2C%20Montana%20has%20been%20na med,growing%20city%20in%20the%20country. 14)Sakariassen,A.(2021,May 26).Taking control.Montana Free Press. https://montanafreepress.org/2021/05/26/how-the-montana-legislature-is-taking-control-f rom-local-governments/ 15)Sallee,J.(2024,February 7).HRDC finds more than 300 unhoused people in Bozeman, New Shelter to open in 2025.KBZK News. https://www.kbzk.com/news/local-news/hrdc-finds-more-than-300-unhoused-people-in-b ozeman-new-shelter-to-open-in-2025#:~:text=Facebook-,HRDC%20finds%20more%20t han%20300%20unhoused%20people%20in%20Bozeman%2C%20new,recent%20count %20conducted%20by%20HRDC 16)University of Montana.(n.d.).UM study:“Yellowstone”series generates 2.1m visitors, $750m in spending for Montana.University of Montana. https://www.umt.edu/news/2023/01/011923yell.php#:~:text=MISSOULA%20%E2%80% 93%20Paramount%20Network’s%20%E2%80%9CYellowstone%2C,new%20University %20of%20Montana%20study.