Analysis of Impediments to Fair Housing Choice

Transcription

1 Final Report Analysis of Impediments to Fair Housing Choice City of Boise, Idaho This document can be translated into any language upon request

2 Final Report May 15, 2012 Analysis of Impediments to Fair Housing Choice Prepared for City of Boise Housing and Community Development Division 1025 S. Capitol Blvd. Boise Idaho Prepared by BBC Research & Consulting 1999 Broadway, Suite 2200 Denver, Colorado fax

3 Table of Contents EXECUTIVE SUMMARY Analysis of Impediments Background... ES 1 Fair Housing Acts and Ordinance... ES 2 Methodology... ES 2 Fair Housing in Boise... ES 4 Fair Housing Impediments... ES 4 Fair Housing Action Plan... ES 9 I. Community and Housing Profile Demographic Profile... I 1 Employment... I 13 Housing Market Analysis... I 16 II. Public Policies and Practices Public Housing Authority... II 1 Assisted Housing Units... II 5 Land Use Policy Review... II 7 Other Public Sector Programs and Services... II 13 III. Fair Lending and Complaints Fair Housing Complaints... III 1 Legal Cases... III 7 Fair Lending Analysis... III 11 IV. Public Outreach Resident Survey... IV 2 Stakeholder Focus Groups and Interviews... IV 8 Summary of Fair Housing Barriers from Public Input... IV 9 V. Fair Housing Impediments and Action Plan Fair Housing in Boise... V 1 Fair Housing Impediments... V 1 Fair Housing Action Plan... V 5 Appendices A. Clarion Associates Boise Land Use Regulations As Barriers To Affordable Housing... A 1 B. Fair Housing Planning Guide Crosswalk... B 1 BBC RESEARCH & CONSULTING i

4 EXECUTIVE SUMMARY

5 EXECUTIVE SUMMARY: City of Boise Fair Housing Study This document is the 2012 Analysis of Impediments to Fair Housing Choice (AI) for the City of Boise (city). Analysis of Impediments Background An Analysis of Impediments to Fair Housing Choice, or AI, is a U.S. Department of Housing and Urban Development (HUD) mandated review of impediments to fair housing choice in the public and private sector. The AI is required for the City of Boise to receive federal housing and community development block grant funding 1. The AI involves: A review of a city s laws, regulations, and administrative policies, procedures and practices; An assessment of how those laws, policies and practices affect the location, availability and accessibility of housing; and An assessment of public and private sector conditions affecting fair housing choice. According to HUD, impediments to fair housing choice are: Any actions, omissions, or decisions taken because of race, color, religion, sex, disability, familial status or national origin that restrict housing choices or the availability of housing choices. Any actions, omissions or decisions that have the effect of restricting housing choices or the availability of housing choices on the basis of race, color, religion, sex, disability, familial status or national origin. This update was prepared by BBC Research & Consulting (BBC) of Denver. BBC is an economic research and consulting firm with a specialty in housing studies, including fair housing. In addition to this AI, BBC recently completed a Housing Market Analysis for the city and the city s Five-year Consolidated Plan. HUD has recently released brief guidance to communities about the department s expectations of AIs. In this guidance, HUD clarifies that affordable housing, in and of itself, is not an impediment to fair housing unless it creates an impediment to housing choice because of membership in a protected class. 1 The city is also required to submit a Consolidated Plan for Housing and Community Development and an annual performance report. These reports were prepared separately from the AI and are available from the city. BBC RESEARCH & CONSULTING EXECUTIVE SUMMARY, PAGE 1

6 Fair Housing Acts and Ordinance Federal Fair Housing Act. The Federal Fair Housing Act, passed in 1968 and amended in 1988, prohibits discrimination in housing on the basis of race, color, national origin, religion, gender, familial status and disability. The Fair Housing Act covers most types of housing including rental housing, home sales, mortgage and home improvement lending, and land use and zoning. Excluded from the Act are owner-occupied buildings with no more than four units, single family housing sold or rented without the use of a real estate agent or broker, housing operated by organizations and private clubs that limit occupancy to members, and housing for older persons. 2 HUD has the primary authority for enforcing the Fair Housing Act. HUD investigates the complaints it receives and determines if there is a reasonable cause to believe that discrimination occurred. If reasonable cause is established, HUD brings the complaint before an Administrative Law Judge. Parties to the action can also elect to have the trial held in a federal court (in which case the Department of Justice brings the claim on behalf of the plaintiff). 3 State of Idaho fair housing law. The State of Idaho s fair housing act prohibits discrimination on the basis of race, color, sex, religion, national origin and disability. It does not recognize familial status as a protected class. The law is also different from the Federal Fair Housing Act in that it covers providers with two or more units or properties. The state s fair housing law is enforced through the Idaho Human Rights Commission. City ordinance. The City of Boise does not have a local fair housing ordinance. Methodology In the fall of 2010, BBC completed a Housing Needs Assessment (HNA) for the City of Boise with the primary purpose of helping the city better understand the characteristics of the residential housing market. BBC also recently helped the city complete its Five-year Consolidated Plan. Where possible, data from these two studies are used in the AI. The AI contains new data from the 2010 Census that were unavailable when the HNA and Consolidated Plan were prepared. This report made every attempt to incorporate the most current data from 2010 Census and American Community Survey (ACS) when it was prepared; however, because such data are released frequently, new variables may be available since the time of the AI preparation. BBC s approach to the City of Boise AI was based on the methodologies recommended in HUD s Fair Housing Planning Guide, Vol. I. 2 This is a very general description of the Fair Housing Act and the actions and properties covered by the Act. For more detailed information on the Fair Housing Act, please see the full text, which can be found on the U.S. Department of Justice s website, 3 How Much Do We Know? Public Awareness of the Nation s Fair Housing Laws, The U.S. Department of Housing and Urban Development, Office of Policy and Research, April PAGE 2, EXECUTIVE SUMMARY BBC RESEARCH & CONSULTING

7 The AI workscope consisted of the following: Public participation. HUD requires that cities solicit participation from members of protected classes, including racial and ethnic minorities and persons with disabilities, during the preparation of the AI. To this end, the public input portion of Boise s AI was targeted to Boise residents who have disabilities and racial and ethnic minorities, particularly non-english speakers and refugees. 4 The resident survey was distributed and promoted through the city s social service stakeholder network. BBC conducted additional outreach through the following means: English and Spanish flyers with a link to the online resident survey were displayed in Valley Regional Transit s 52 buses and 15 ACCESS paratransit vehicles between October 31 and November 11, An event was held at the Boise English Language Center on October 28, 2011 following a new refugee orientation to solicit refugee participation in the resident survey. Interpreters were present and provided translation for residents in 11 languages: Karen, Burmese, Arabic, Swahili, Farsi, Somali, Nepali, Russian, Kirundi, Tigrinya and French. The event was promoted through the stakeholder network. Refugees not participating in classes at the English Language Center were also invited to intend. Surveys were sent home with students in two elementary schools (Horizon and Morley Nelson) identified as having concentrations of non-english speaking students in a 2008 Intermountain Fair Housing Council (IFHC) report. A total of 174 completed surveys were received. In addition, Galena Consulting, a BBC subcontractor for the study and Boise-based women-owned business, and BBC conducted interviews with stakeholders who work with low income populations, refugees and residents with special needs to discuss their clients experience with housing discrimination and fair housing barriers. Zoning, land use and housing policy review. Clarion Associates, a planning and land use firm, reviewed city zoning and land use regulations for barriers to fair housing choice. A sample of Homeowner Association (HOA) covenants were also examined for compliance with the Federal Fair Housing Act. In addition, BBC reviewed the policies of the local housing authority for any potential barriers to fair housing and fair housing concerns. Analysis of demographic, housing and lending data. In this task, data on mortgage lending approvals, subprime mortgages (from Home Mortgage Disclosure Act or HMDA data), income distribution, race and ethnicity, disability and affordable housing opportunities, recent legal cases and fair housing complaints were analyzed to detect potential discriminatory patterns. 4 The federal Equal Employment Opportunity Commission (EEOC) defines national origin discrimination as treating people unfavorably because they are from a particular country or part of the world, because of ethnicity or accent, or because they appear to be of a certain ethnic background (even if they are not). See Refugees are a protected class because the Federal Fair Housing Act protects against discrimination based on national origin. BBC RESEARCH & CONSULTING EXECUTIVE SUMMARY, PAGE 3

8 Identification of impediments. In this task, BBC compiled the fair housing concerns identified through public participation, data analysis and review of land use policies into impediments to fair housing choice. Actions to address past and current impediments. In this final task, BBC developed a recommended Fair Housing Action Plan (FHAP) for the city to use to the fair housing impediments identified in the AI research. Fair Housing in Boise The City of Boise has put much effort into reducing fair housing barriers in the past few years. Most notably, the city developed a fair housing campaign, designated a fair housing contact within the city, established a Mayor-appointed Fair Housing Task Force, partnered with statewide organizations to support fair housing training and events and has posted fair housing information on the city s website. The city has also historically dedicated a portion of general fund revenues to rental assistance for low income households. Specifically, Boise recently developed a Fair Housing Campaign Good Neighbors + Fair Housing = Strong Communities which includes a toll free, statewide fair housing hotline through the service. Boise has also (with co-sponsorship from IHFA) created an online resource dedicated to providing practical informational resources and promoting awareness through respectful collaboration and cooperation among all stakeholders. The city also has two fair housing organizations Idaho Legal Aid and the Intermountain Fair Housing Council (IFHC) that maintain websites with fair housing information and complaint filing procedures. In sum, compared to similar cities, residents in Boise have many ways to get information about their fair housing rights and file housing discrimination complaints. Boise has also historically supported affordable rental housing both through general funds, federal entitlements and income generated from the entitlements. This is done primarily in four ways: 1) The city provides rent concessions in its city-owned rental housing units; 2) the city subsidizes its rental housing portfolio; 3) provides rental assistance through its Charitable Assistance To Community s Homeless Program and lastly 4) the city funds a tenant based rental assistance (TBRA) program. The city has historically provided an average annual allocation of $450,000 to these programs and intends to boost the TBRA amount by $150,000 in the next program year. These efforts are commendable and should be continued. In addition, this AI indentified several other ways the city can work to mitigate barriers to housing choice. Fair Housing Impediments HUD has recently begun clarifying the difference between fair housing impediments and observations through reviews of jurisdictions Consolidated Annual Performance and Evaluation Reports (CAPERs), Annual Action Plans and AIs. According to HUD, impediments directly impact a protected class, whereas an observation may lead to an impediment or may be of concern, but cannot be directly linked to a protected class. An example is lack of affordable housing which is PAGE 4, EXECUTIVE SUMMARY BBC RESEARCH & CONSULTING

9 generally a barrier for all low income people, regardless of protected class (an equal opportunity barrier). In this report, impediments that cannot be directly linked to a protected class are called observations. Impediments that can be directly linked to a protected class remain as impediments. The fair housing impediments found in the 2012 AI research include the following: IMPEDIMENT NO. 1. Some HOA covenants may violate fair housing laws. In its review of HOA covenants, conditions and restrictions (CCRs), Clarion Associates found that three of the six CCRs reviewed prohibit shelter homes in their subdivisions. If a shelter home is interpreted to be the same as a group home, this is a fair housing violation and it is not consistent with Idaho Code, which highlights an intent to not comply with a clear state statute. However, since neither the Fair Housing Act nor the Idaho Code include a definition of shelter home, it is possible that a court might find that term to be either broader or narrower than the protections in the Fair Housing Act and Idaho Code. In addition, IFHC, based on its experience with complaints associated with HOAs, believes that as many as 80 percent of CCRs restrict group homes outright and are in violation of fair housing laws. Why is this an impediment? Language that has the intent or effect of restricting group homes for persons with disabilities is illegal under the Fair Housing Act. IMPEDIMENT NO. 2. People with disabilities report higher levels of discrimination and lower levels of housing accommodation than other residents. Between 2005 and 2010, 108 fair housing complaints were filed with HUD for violations that occurred in Boise. Forty-three percent were found by HUD to have no cause; 57 percent were pursued. The majority 68 percent of the complaints cited discrimination based on disability status. Many of these complaints cited discrimination based on failure to make reasonable accommodations and discriminatory terms, conditions and privileges of services and facilities. Additionally, during the past decade, there have been a number of lawsuits in Boise which have found that developers failed to meet building accessibility requirements of the ADA and Fair Housing Act. A resident survey conducted for this AI found that people with disabilities are much more likely to report levels of housing discrimination (30% compared to 20% for low to moderate income residents overall, based on the survey). The survey also found lack of accessible housing as a potential fair housing barrier specific to people with disabilities: Thirty percent of disabled survey respondents reported that their current homes do not meet their accessibility needs. Finally, persons with disabilities were much more likely than other survey respondents to report places in Boise where they would not feel comfortable. Overall, however, disabled residents report equal treatment of residents in their individual apartment complexes/neighborhoods. BBC RESEARCH & CONSULTING EXECUTIVE SUMMARY, PAGE 5

10 Why is this an impediment? People with disabilities are a protected class under fair housing law. To the extent that they cannot access housing opportunities equal to those of other residents of similar income levels, a fair housing barrier is created. IMPEDIMENT NO. 3. Resources for limited English proficiency residents could be improved. The stakeholder groups participating in the public input process mentioned limited resources for limited English proficiency (LEP) individual as a potential fair housing barrier. Stakeholders believe that LEP persons, which include persons with disabilities (e.g., those who are deaf and hard of hearing), face obstacles when working with local housing providers if oral and/or written translation is not provided during the lease signing process. Stakeholders believe refugees accessing affordable housing opportunities offered through the housing authority may not be receiving necessary translation of important documents. It should be noted that 72 percent of refugees who took the AI resident survey said they received an in-person, verbal interpretation of their apartment lease; 14 percent reported no form of translation or needing to obtain translation services themselves. These answers did not pertain specifically to housing provided by the housing authority or the city, but all types of housing (public and private). To ensure compliance with Title VI of the Civil Rights Act, federal assistance recipients are required to provide language assistance to LEP individuals to ensure equal access to federally funded programs and housing. HUD recommends federal assistance recipients understand the size and the needs of their local LEP population. Once the local LEP population has been characterized, HUD recommends recipients create and implement a Language Assistance Plan (LAP), which identifies recipients plan for serving LEP populations. HUD suggests that recipients provide written translation of vital documents and oral translation of non-vital documents if an LEP group represents five percent of the total population or 1,000 persons. The BCACHA LAP was last updated in 2004, prior to HUD s guidance issued in The BCACHA only provides its online rental assistance application in English. The BCACHA s implementation plan does not specify when written interpretation of vital documents will be provided for residents, which is an important part of the HUD guidance. However, BCACHA s rental assistance applications for the Section 8 and public housing programs do ask residents whether they need assistance with language interpretation. Note that the City of Boise has a more comprehensive LAP that discusses language assistance measures required by HCD and property management staff. Why is this an impediment? Title VI of the Civil Rights Act of 1964 is the federal law that protects individuals from discrimination on the basis of their race, color, or national origin in programs that receive federal financial assistance. 5 Compliance with Title VI requires that federal assistance recipients provide language assistance to individuals with limited English proficiency. Failure to 5 Information on Title VI and HUD programs can be found here: PAGE 6, EXECUTIVE SUMMARY BBC RESEARCH & CONSULTING

11 ensure that persons who are LEP can effectively participate in or benefit from federally assisted programs may violate Title VI's prohibition against national origin discrimination. 6 OBSERVATION NO. 1. City land use and zoning regulations could be revised to encourage affordable housing development. Clarion Associates, a planning and land use firm, completed an in-depth analysis of Boise s land use regulations to determine whether the city s codes create barriers to fair housing and affordable housing development. Clarion Associates identified a number of strengths in the city s code, as well as a number of suggestions for modifications or additions to the code. Figure ES-1 summarizes the strengths and weaknesses of the city s land use code as identified by Clarion Associates. A copy of Clarion s complete report is in Appendix A. Figure ES-1. Strengths and Weaknesses of Land Use Code, City of Boise, 2011 Strengths Definitions of both dwelling unit and family to include some of the groups protected by federal law Waivers of impact fees for affordable housing One zone district with a 2,500 sq. ft. minimum lot area for single-family detached development, and another with a 2,160 sq. ft. minimum lot area for attached units One zone district with an 18 ft. minimum width for attached units and 36 ft. minimum width for detached units Unlimited height for multi-family development in the C-5 district Only one district has a minimum unit size requirement, and it is reasonable Treatment of manufactured housing as a type of single-family dwelling unit Availability of manufactured housing and manufactured housing communities in many zone districts Lack of separation requirements for group living facilities and homes ADUs technically permitted in many zone districts Three zone districts permit multi-family residential uses SROs permitted in all commercial zones Availability of tandem parking, parking districts and parking reductions by Planning Director Two spaces per facility parking standard for group homes and relatively low levels of parking for other types of facilities Use of platted 25 foot wide "Original Substandard Lots of Record" Areas for Improvement Definition of dwelling unit that does not explicitly exclude FHAA protected individuals from the 5 person occupancy limit Lack of by-right density, height, or parking incentives for affordable housing Lack of by-right provisions allowing reconstruction of affordable or group home facilities with an equal number of units following significant damage or destruction R-3 45 ft. height limit reduces number of units buildable within low-rise construction techniques and fire code No by-right reduction in minimum lot size requirements for manufactured home communities compared with surrounding district Administrative review standards for ADUs that are not clarified in the code itself General residential parking standards could probably be lowered for smaller multi-family units Source: Clarion Associates. Why is this an observation? Land use and zoning regulations may have the effect of reducing development of a wide range of housing types and levels of affordability, which may disparately impact protected classes, most likely persons with disabilities who require group home settings. 6 IBID. BBC RESEARCH & CONSULTING EXECUTIVE SUMMARY, PAGE 7

12 OBSERVATION NO. 2. Mortgage loan approval rates were lower for African American, American Indian/Alaskan Native and Hispanic borrowers than for Whites. An analysis of 2009 mortgage lending data found that African American applicants had denial rates that were seven percentage points higher than White applicants. White applicants had loan origination rates that were 16 percentage points higher than African American applicants. 7 The differences between American Indian/Alaskan Native borrowers and White borrowers was 12 percentage points for loan approvals and 12 percentage points for denials. 8 Hispanic applicants loan approval rates were eight percentage points lower than Whites and denial rates were six percentage points higher. Why is this an observation? Because the mortgage lending data do not contain information about potential borrowers credit scores, it is unclear if the disparities in loan approvals between minorities and Whites are due to credit issues or lending discrimination. Still, difficulty accessing credit (despite the reason) may restrict minorities housing choices and can lead to disinvestment in minority neighborhoods. OBSERVATION NO. 3. Differential treatment of refugees may occur. As discussed in Section IV. Public Outreach, the public process for the AI made a concerted effort to involve refugees who had been relocated to Boise. This effort was driven, in part, by concern by IFHC and Legal Aid about treatment of refugees. Specifically, Legal Aid recently filed a complaint against the three refugee agencies and their parent organizations alleging numerous violations, including failure to make reasonable accommodations, housing segregation, predatory lease arrangements and imposing differential treatment and housing conditions. The survey results found some housing concerns e.g., not all refugees report that their lease agreements were translated and some said they did not have security deposits returned however, the survey results do not suggest that refugees face housing barriers that are unique to the protected class of national origin. This AI acknowledges that several organizations have significant concerns about the housing process of refugees who are settled in Boise. However, specific violations of the Fair Housing Act unique to the housing situations of refugees in Boise will be determined by the resolution of the complaints discussed above. 7 It should be noted that loan applications submitted by African Americans represented just 1 percent of all loan applications submitted in Boise, or 66 loans. 8 Similar to African American borrowers, the number of loans for American Indian/Alaskan Native borrowers was small at 64 loans. PAGE 8, EXECUTIVE SUMMARY BBC RESEARCH & CONSULTING

13 Fair Housing Action Plan Based on our research for this AI, BBC recommends the City of Boise implement the following Fair Housing Action Plan and activities for reducing fair housing impediments: ACTION ITEM 1. Implement a review process of HOA covenants. City planning and legal staff will develop a process consistent with new housing development applicants for planning and zoning approval that will review HOA CC&rs for inconsistencies with Fair Housing law. Developers and HOAs will be informed of potential remedies to achieve fair housing compliance and will will be encouraged to amend language in the CC&Rs. In addition education and outreach regarding Fair Housing compliance will be provided to all registered Neighborhood Associations with a specific focus upon inconsistencies or barrier created through CC&Rs. This will include recommending the removal of the restrictions on shelter homes to avoid a potential fair housing violation. Impediment Addressed: 1 ACTION ITEM 2. Actions to resolve Impediment 2 and Observation 3 will include: Significant portions of the City s affordable home rehabilitation loan program will be modified to serve low and moderate income households with physical disabilities. Loans will be provided under a forgivable structure to owner occupants and will not require any form of repayment unless the home is sold prior to the specified loan term. In most cases, this is estimated to be a five-year maturity. The purpose of this assistance will be to remove physical barriers to affordable housing. A similar effort will be directed toward multi-family owners and managers. In this instance, attractive loan terms and rates will be provided as incentives. Net loan proceeds over time will contribute to the continuation of this initiative. ACTION ITEM 3. Implement regional coordination of LEP implementation plans. As a resettlement community, Boise houses an LEP population that represents a wide variety of languages and dialects. Translation services can be costly to provide, and it can be difficult to secure quality translators. Given the cost and time associated with securing translation services, the city and the BCACHA as well as other partners will share and coordinate their LEP services. This will include the following: Types of documents that should be interpreted into additional languages; Languages with enough representation for written interpretation of vital documents; Types of meetings and events in which translation services will be provided; and Timeline and process for updating the regional LAP. The city and the BCACHA will continue to maintain an updated list of translators. Since translators are often students at Boise State University, and may only reside in Boise for a short period of time, the list of translators will be updated annually. The city and the BCACHA will continue to work with the English Language Center and Boise State University to identify a list of translators. BBC RESEARCH & CONSULTING EXECUTIVE SUMMARY, PAGE 9

14 The City will assess a pilot program to provide financial resources to affordable rental housing providers for the purpose of translating vital documents. Providers will be expected to match the assistance in serving local LEP populations. Impediment Addressed: 3 ACTION ITEM 4. Continue actions to increase affordable housing stock. It is a difficult time for many cities to aggressively address affordable housing shortages. As the economy improves and the city s funds become less constrained, Boise will enhance its efforts to deeply subsidized rental units to its housing stock. Boise has also historically supported affordable rental housing both through general funds, federal entitlements and income generated from the entitlements. This is done primarily in four ways: 1) The city provides rent concessions in its city-owned rental housing units; 2) the city subsidizes its rental housing portfolio; 3) provides rental assistance through its Charitable Assistance To Community s Homeless Program and lastly 4) the city funds a tenant based rental assistance (TBRA) program. The city has historically provided an average annual allocation of $450,000 to these programs and intends to boost the TBRA amount by $150,000 in the next program year. The city will establish a pilot fund during the fiscal year beginning October 1, 2012 with the intended use of providing one time incentives that can remove barriers to affordable housing for high need households. Such activities may include deposit assistance for rent or utilities, move in assistance or other landlord incentives. This pilot effort will be capitalized from the net proceeds realized from the re-sale of HUD homes purchased and renovated by the City through the HUD Dollar Home Program. Once initial results of the pilot effort are analyzed for effectiveness, any continuation of the program will receive on-going financial support through this same or similar funding vehicle. The city will also modify its zoning and land use regulations with the following: Add a purpose statement to its code that more specifically addresses the city s purpose to provide housing choices for residents and to comply with applicable federal and state law. The city will add a purpose statement to its code that more specifically addresses the city s purpose to provide housing choices for residents and to comply with applicable federal and state law. The purpose statement will reflect the city s intent to coordinate housing and transportation to allow affordable housing and multifamily housing near transit. Add definition of affordable housing to land use code. The city will add a definition of affordable housing to its land use code, in addition to the definition provided in the city s Impact Fee Ordinance. This addition will help allow for affordable housing in the city. Modify definition of dwelling unit.. To further clarify that all of the protected classes covered by the FHAA are excluded from the five unrelated persons per dwelling unit regulation, the city will revise is definition to read: The physically and/or mentally handicapped included all those groups of individuals protected by the provisions of the federal Fair Housing Act Amendments, as amended, including but not limited to those currently undergoing rehabilitation for drug and/or alcohol addiction. PAGE 10, EXECUTIVE SUMMARY BBC RESEARCH & CONSULTING

15 Consider reducing lot size and parking requirements on mobile and manufactured homes. Boise has separate standards for mobile home parks and manufactured home communities, but those standards still require compliance with all subdivision platting standards applicable to the zone district where the property is located. It appears, for example, that both types of communities must meet the minimum lot size applicable to stick-built single-family housing in the same zone district. While it is good to have specialized standards for these types of development, the city will consider decreasing the required lot size below that of the base zoning district and reduce parking requirements below two per dwelling unit in at least one residential zone district. It is understood that the City is in the process of reinstating the density bonus provisions in conjunction with affordable housing criteria. We encourage this to result in formal adoption of by-right incentives. Complete an inventory of multifamily parcels in zoning districts that allow multifamily development. In Boise, multifamily is permitted by right in three downtown districts: R-3, R-O, and C-5. This should be an adequate number of zone districts to respond to different types of multifamily demand, provided that the city has zoned an adequate amount of land into these three categories. In addition, multifamily is permitted two districts outside of downtown, R-3 and R-O. The zoning map only shows one R-O parcel outside of downtown, indicating that the city is mostly reliant on the R-3 district for multifamily uses. While it may be sufficient to permit multifamily in one district, it is also important that there is sufficient land zoned for that district to create a reasonable chance that multifamily will be developed. As such, the city will evaluate the supply of land available in these zoning districts to ensure that an adequate supply of land is available to support multifamily development. If an insufficient supply of land is available in these zoning districts, the city will rezone additional land to allow for more high density multifamily development. Increase affordable housing incentives. Affordable and low income housing projects are exempt from impact fee requirements of the Impact Fee Ordinance. This is a good incentive to promote affordable housing. The city will consider adding additional incentives such as density bonuses or parking reductions for affordable and low-income housing projects. Allow a variety of housing types that promote affordability. The city will consider allowing additional housing options like cohousing or zero lot line houses. Zero Lot Line Development is defined in the code yet it is not permitted by right in any district. The city will consider permitting these in the R-1M district where duplexes and row houses are allowed. This would allow for a different configuration of homes without significantly altering the character of the district. Evaluate lot size and width requirements. The city will evaluate the lot size and width requirements outlined in the city s zoning code to ensure they promote affordable housing development. Minimum lot sizes in all residential zones can be reduced through a PUD process. However, the need to complete a discretionary decision process with a public hearing is a barrier that could be reduced or removed through attaching objective standards that permit reduced lot sizes by right. The amount of land zoned R-1M and R-0 will be reviewed to see if it is adequate to help meet affordable housing demands. Add a provision to zoning code to allow nonconforming structures be replaced with the same number of units if they are damaged or destroyed through fire or natural causes. It is BBC RESEARCH & CONSULTING EXECUTIVE SUMMARY, PAGE 11

16 understood that Conditional Use Permits are available to rebuild non-conforming structures, including replacement of units in excess of the number that would be permitted under the current zoning. However, this type of relief be made available without the need for a hearing or discretionary decision process Observation Addressed: 1 ACTION ITEM 5. Monitor lending disparities. Boise will monitor lending disparities between White and American Indian/Alaskan Native, African American and Hispanic borrowers over time and, if disparities widen or persist, initiate discussions with financial institutions about the reasons for the disparities and solutions to reduce the gap (e.g., improving the creditworthiness of African American borrowers). Expanded programs to strengthen the credit of minorities will be considered if the lending gaps persist. Observation Addressed: 2 PAGE 12, EXECUTIVE SUMMARY BBC RESEARCH & CONSULTING

17 SECTION I. Community and Housing Profile

18 SECTION I. Community and Housing Profile This section provides a community and housing profile for the City of Boise. It includes the race/ ethnicity and income concentration maps required by HUD for AIs. The U.S. Census began a limited release of information collected as part of the 2010 Census in the spring of Census data are referenced when possible in this report. Additional data sources include the following: Census American Community Survey (ACS) data; 2000 Census for data trends; Claritas, a commercial data estimates provider; Idaho Office of Refugees; COMPASS; The City of Boise Housing Needs Assessment; and Unemployment rates and Quarterly Census of Employment and Wage (QCEW) data from the Bureau of Labor Statistics (BLS). Demographic Profile Population. The City of Boise s current population is 205,671. The city experienced modest growth in the previous decade, adding approximately 20,000 new residents to its 2000 population of 185,787. Since 2000, Ada County and the communities of Meridian, Kuna and Star grew more quickly than the City of Boise. The neighboring community of Meridian more than doubled its population in the last 10 years, and populations tripled in the smaller communities of Kuna and Star. Figure I-1 displays the population of all cities within Ada County and their growth rate since Figure I-1. Population of Cities within Ada County, 2000 and 2010 Source: 2000 and 2010 Census. Population Overall Average Growth Annual Growth Percent Percent Boise* 185, ,671 11% 1% Eagle 11,085 19,908 80% 8% Garden City 10,624 10,972 3% 0% Kuna 5,382 15, % 18% Meridian 34,919 75, % 12% Star 1,795 5, % 22% Ada County Total 300, ,365 30% 3% BBC RESEARCH & CONSULTING SECTION I, PAGE 1

19 Race and ethnicity. Figure I-2 compares the city s population distribution by race and ethnicity in 2000 and In the last 10 years, strong growth occurred in nearly every non-white racial and ethnic group in the city. The city s African American population increased the most in terms of percent growth, nearly doubling. The city s Asian population, which is the largest racial minority group in the city, grew by 68 percent. Persons of Hispanic descent grew by 74 percent. It is important to note, however, that these populations all still represent small minorities in Boise: despite this growth, 89 percent of residents are White and 74 percent are non-hispanic. Figure I-2. Population by Race and Ethnicity, City of Boise 2000 and Count Percent 2010 Count Percent Percent Growth Race American Indian and Alaska Native alone 1, % 1, % 8% Asian alone 3, % 6, % 68% Black or African American alone 1, % 3, % 112% Native Hawaiian and % % 51% Other Pacific Islander alone White alone 171, % 182, % 7% Some other race alone 3, % 5, % 59% Two or more races 4, % 6, % 38% Ethnicity Hispanic/Latino 8, % 14, % 74% Non-Hispanic/Latino 177, % 191, % 8% Source: 2000 and 2010 Census. Racial and ethnic concentration. One of the key components of a fair housing analysis is an examination of the concentration of different races and ethnicities within a jurisdiction to detect evidence of segregation. In some cases, racial and ethnic concentrations are a reflection of preferences e.g., people of different races and ethnicities may choose to live where they have access to grocery stores or restaurants that cater to them. In other cases, different race/ethnic populations are intentionally steered away or discouraged from living in certain areas. Housing prices can also heavily influence where minorities live. The following maps display the geographic distribution of Boise s largest minority groups, highlighting areas of racial and ethnic concentrations. PAGE 2, SECTION I BBC RESEARCH & CONSULTING

20 There are two definitions of racial and ethnic concentration used by HUD in fair housing analyses: First concentration definition. Areas of concentration occur when the percentage of residents of a particular racial or ethnic group is 10 percentage points or more than the community-wide average. This is consistent with HUD s definition of disproportionate need. For example, if 20 percent of residents in a particular Census block group are African American and African Americans comprise 10 percent of a community s population overall, that Census block group contains a concentration of African American residents. For the purposes of this report, areas that align with this definition will be referred to as areas of low concentration. Second concentration definition. Areas of concentration occur when the percentage of residents of a particular racial or ethnic group is 20 percentage points or more than the community-wide average. This definition for concentration aligns with HUD Fair Housing Equal Opportunity (FHEO) guidance issued in For the purposes of this report, areas that align with this definition will be referred to as areas of high concentration. Figures I-3 through I-5 map areas of concentration for the city s largest racial and ethnic groups: Asian, non-white and Hispanic. Areas of low concentration are presented on the map in dark blue and areas of high concentration are cross-hatched. As the following figures demonstrate, there are low concentrations of Asian, non-white and Hispanics in the central portion of Boise along Highway 184. There is an additional area of low Hispanic concentration along Highway 20. There are no areas of high racial or ethnic concentration in Boise. Figure I-3. Percent of Block Group Population that is Asian, City of Boise, 2010 Source: 2010 Census. 1 HUD s definitions of concentration were presented to the City of Boise in correspondence with HUD s FHEO dated December of BBC RESEARCH & CONSULTING SECTION I, PAGE 3

21 Figure I-4. Percent of Block Group Population that is Non-White, City of Boise, 2010 Source: 2010 Census. Figure I-5. Percent of Block Group Population that is Hispanic, City of Boise, 2010 Source: 2010 Census. PAGE 4, SECTION I BBC RESEARCH & CONSULTING

22 In April 2010, the Intermountain Fair Housing Council (IFHC) produced a report which analyzed the distribution of dialect in the Boise Independent School District. 2 This study uses the standard deviation from the mean to analyze the distribution of dialects by school in the Boise School District. If the same metric was applied to the concentration maps in Figures I-3 through I-5, a concentrated Census block group would occur when the percentage of Asian, non-white or Hispanics is 4, 11 and 10 points higher than the mean, respectively. The methodologies employed by the IFHC and this study identify virtually the same number of block group concentrations for the non-white and Hispanic populations. However, IFHC s methodology identifies six block groups with Asian concentrations compared to one block group in this study. Figure I-6. Linguistically Isolated Households, City of Boise, 2000 Linguistically Isolated 1, % Spanish % Indo-European % Asian/Pacific Island % Other % Source: 2000 Census. Number Percent of Total Households Linguistic isolation. A linguistically isolated household is one in which all members of the household 14 years old and over have at least some difficulty speaking English. 3 The 2000 Census reported that less than two percent of all Boise households are linguistically isolated. 4 In 2000, the largest proportion of linguistically isolated households in Boise spoke an Indo-European language. Figures I-7 and I-8 show the location of the city s non-english speaking residents. The largest proportions of non-english speakers in Boise reside in the central portion of the city. 2 Dialect Distribution in the Boise Independent School District Narrative Report, April 15,2010, Intermountain Fair Housing Council. 3 Definition taken from the U.S. Census. 4 Linguistic isolation data has not been updated by the Census since BBC RESEARCH & CONSULTING SECTION I, PAGE 5

23 Figure I-7. Percent of Block Group Population that Speaks Spanish at Home, City of Boise, 2010 Figure I-8. Percent of Block Group Population that Speak Asian, Indo- European or Other Language at Home, City of Boise, 2010 Source: 2010 Claritas. Source: 2010 Claritas. PAGE 6, SECTION I BBC RESEARCH & CONSULTING

24 Refugee population. The City of Boise is one of 200 communities nationwide that provides resettlement services for refugees. Between 2006 and August 2011, 2,520 refugees or approximately 500 refugees per year resettled in Boise. According to the Idaho Office of Refugees (IOR), approximately 20 percent of resettled refugees leave Boise to return to their home country or move to another city in the U.S., indicating that as many as 2,000 refugees that have arrived in Boise in the last five years may stay in the city permanently. 5 As demonstrated in Figure I-9, Boise refugees represent a variety of countries, cultures and languages. In the last five years, the largest proportion of refugees (42%) came from the Middle East/South Asian, which includes Iraq (572 refugees) and Bhutan (462 refugees). Figure I-9. Refugee Population, City of Boise, 2006 to 2011 Source: Idaho Office for Refugees. Number cont'd Number Africa 773 Latin America/Caribbean 19 Burundi 184 Congo 287 Near East/South Asia 1,055 Somalia 167 Bhutan 462 Other 135 Iraq 572 Other 21 East Asia 370 Burma 368 Unknown 3 Vietnam 2 Total 2,520 Europe and Central Asia 300 Afghanistan 154 Uzbekistan 109 Other 37 The city s three resettlement organizations the Agency for New Americans, the Treasure Valley World Relief and the International Rescue Committee are responsible for finding refugees their first home in Boise. Resettlement organizations are required to follow U.S. State Department guidelines for locating refugee housing, which stipulates that housing meet locally accepted standards for safety and livability, and they also must consider proximity to public transit, important amenities (e.g., language classes), family and other community ties, cost and rental availability when locating housing for new refugees. Refugees receive very limited federal assistance upon their arrival in the U.S. A single person household will receive approximately $4,000 in total federal refugee assistance through the first eight months of their resettlement; this provides refugees with $100 per month for housing costs. 6 5 Out-migration estimate provided by the Idaho Office of Refugees. Refugees are removed from the IOR database once they stop receiving financial assistance; as such, 20 percent is an estimate. 6 Each refugee receives a one-time $900 stipend from the U.S. State Department upon their arrival in the U.S. The U.S. Department of Heath and Human Services provides refugees with an eight month household stipend that varies by household size. BBC RESEARCH & CONSULTING SECTION I, PAGE 7

25 In some instances, the IOR directs refugees federal assistance payments to rental payments. Figure I-10 presents the location of these direct rental payments. Assuming the location of direct rental payment assistance resembles the overall geographic distribution of refugees in Boise, refugees are most likely to live in the Central Bench neighborhood of Boise. Figure I-10. Location of IOR Direct Rental Payments, City of Boise, 2010 to 2011 Note: This map is not intended to represent all housing locations of refugees Source: Idaho Office for Refugees. Income and poverty. The 2009 median household income in the City of Boise was $44,926. This is lower than the State of Idaho s median household income of $47,898 and the U.S. median household income of $50, Figure I-11 displays the household income distribution for the city. More than half of Boise s households earn less than $50,000 per year, and nearly one-fourth of all households earn less than $25,000 per year. 7 Income data is not yet available in the 2010 Census. PAGE 8, SECTION I BBC RESEARCH & CONSULTING

26 Figure I-11. Household Income Distribution, City of Boise, 2009 Note: Income data not yet available in the 2010 Census. Source: 2009 American Community Survey 1-year estimate. Less than $25,000 $25,000 to $49,999 $50,000 to $74,999 $75,000 to $99,999 $100,000 to $199, % 14.0% 18.0% 24.0% 28.0% $200,000 or more 2.0% 0% 8% 16% 24% 32% 100% 40% Figure I-12 displays the geographic distribution of the city s low income households. The Central Bench area contains most of the city s concentrated block groups. Boise State University s student population likely accounts for the low income concentrations near the campus. F igure I-12. Percent of Block Group Households that Earn Less than $25,000 Annually, City of Boise, 2010 Note: Income data not yet available in the 2010 Census. Source: 2010 Claritas. The city s current poverty rate of 15 percent is nearly double the city s eight percent poverty rate reported in The city s poverty rate is highest among its college aged residents (32%); this is largely due to Boise s student population. Twenty-five percent of Boise s school aged population (aged 5 to 17) live in poverty, as do 21 percent of Boise s children under the age of five. BBC RESEARCH & CONSULTING SECTION I, PAGE 9

27 Figure I-13. Poverty by Age, City of Boise, 2010 Total in Poverty Percent of Age Group Source: 2009 American Community Survey. Less than 5 years old 2,962 21% 5 to 17 years old 3,717 25% 18 to 24 years old 6,477 32% 25 to 44 years old 8,144 13% 45 to 64 years old 5,989 11% 65 years or older 2,019 9% Total 29,308 15% Familial status. There are 85,704 households in Boise. Figure I-14 displays Boise s household composition by household type. Fifty-nine percent of households are family households, and 41 percent are non-family households. Figure I-14. Household Composition, City of Boise, 2010 Total Households Percent of Total Households Source: 2010 Census. Family Households 50,647 59% Husband-wife family 37,941 44% with children 15,968 19% without children 21,973 26% Male Householder - no wife 3,845 4% with children 2,211 3% without children 1,634 2% Female Householder - no husband 8,861 10% with children 5,361 6% without children 3,500 4% Nonfamily Households 35,057 41% Total Households 85, % Figure I-15 maps Boise s single parent households by block group. Nine percent of Boise s households are single parent households, indicating that a concentration of single parent households has 19 percent or more single parent households. The Central Bench neighborhood contains two of the three Census block groups with a concentration of single parent households. PAGE 10, SECTION I BBC RESEARCH & CONSULTING

28 Figure I-15. Percent of Block Group Households that are Single Parent Households, City of Boise, 2010 Source: 2010 Census. Disability. Disability status is an important component of fair housing analysis, particularly in Boise. According to HUD, 68 percent of the 108 fair housing complaints filed in Boise between 2006 and 2010 were on the basis of disability. In 2000, 16 percent of Boise s residents reported having a disability. 8 As seen in Figure I-16, disability rates are highest among the city s seniors. Figure I-16. Persons with Disabilities, City of Boise, 2000 Number Total in Age Group Percent of Age Group Source: 2000 Census. 5 to 15 1,837 28,663 6% 16 to 64 17, ,396 14% 65 and older 7,224 18,612 39% 8 Data for the number of persons with disabilities is not available in the American Community Survey, and has not been released in the 2010 Census. BBC RESEARCH & CONSULTING SECTION I, PAGE 11

29 Figure I-17 presents the types of disabilities reported by Boise residents. A physical disability, which include a condition that substantially limits one or more basic physical activities such as walking, climbing stairs, reaching, lifting or carrying, was the most common type of disability reported by Boise s residents in 2000 (24%). 9 Twenty-two percent of Boise s residents reported an employment disability, which is defined as a physical, mental or emotional condition lasting six months or more that made it difficult to perform certain activities, such as working at a job or business. 10 Figure I-17. Types of Disabilities, City of Boise, 2000 Number Percent of All Reported Disabilities Note: Respondents may have more than one disability. Source: 2000 Census. Sensory 6,339 14% Physical 10,918 24% Mental 7,934 17% Self-Care 2,984 6% Going outside the home 7,619 17% Employment Disability 10,123 22% Figure I-18 geographically displays where the city s residents with disabilities reside. In 2000, there was one Census tract in the Central Bench that contained a low concentration of persons with disabilities. Figure I-18. Percent of Census Tract Population with Disability, City of Boise, 2000 Source: 2000 Census. 9 The Census definition of physical disability can be found here: 10 The Census definition of employment disability can be found here: PAGE 12, SECTION I BBC RESEARCH & CONSULTING

30 Employment In the midst of the recent economic recession, Boise has not been immune to increases in unemployment. The Boise-Nampa Metropolitan Statistical Area (MSA) shed more than 8,000 jobs between June of 2008 and June of During the same period, the Boise unemployment rate nearly doubled from 4.7 percent to 8.1 percent. Historically, Boise and Idaho s economy has performed stronger than the U.S. as a whole, but the recent recession has impacted Meridian and the surrounding area. Unemployment. Figure I-19 displays unemployment rates for the city, state and the U.S. since As of June 2011, Boise s unemployment rate was 8.6 percent, which is slightly lower than the overall unemployment rates in Idaho (9.4%) and the U.S. (9.2%). Figure I-19. Unemployment Rate, Boise, Idaho, U.S, 2000 to Unemployment Rate Boise Idaho U.S (June) Note: Source: Unemployment rates for 2005 to 2010 represent not seasonally adjusted annual averages. HUD SOCDS, Idaho Department of Labor and Bureau of Labor Statistics. BBC RESEARCH & CONSULTING SECTION I, PAGE 13

31 Jobs and wages. Ada County s employment base largely consists of moderately paying jobs in service producing industries. The county s two highest paying industries account for less than three percent of the county s total jobs. The county s largest industry public administration and education pays an average annual wage of $42,000, which is slightly higher than the average wage of $40,300 for the county overall. Figure I-20. Employment and Wages, Ada County, 3Q2010 Employment Number Percent Average Annual Wages Goods Producing 25,456 13% $60,065 Agriculture, Forestry, Fishing and Hunting 889 0% $28,242 Mining, Quarrying, and Oil and Gas Extraction NA NA NA Construction 10,064 5% $45,708 Manufacturing 14,408 7% $71,987 Service Producing 168,149 87% $37,331 Wholesale Trade 8,659 4% $57,187 Retail Trade 22,703 12% $26,583 Transportation and Warehousing 4,614 2% $37,736 Utilities 901 0% $76,572 Information 3,654 2% $48,135 Finance and Insurance 8,061 4% $48,904 Real Estate and Rental and Leasing 2,591 1% $31,472 Professional, Scientific and Technical Services 10,166 5% $51,466 Management of Companies and Enterprises 4,040 2% $83,419 Administrative and Waste Management 19,391 10% $26,349 Educational Services (private ownership) 1,850 1% $34,886 Health Care and Social Assistance 27,417 14% $42,600 Arts, Entertainment and Recreation 3,034 2% $16,566 Accommodation and Food Services 15,742 8% $14,471 Other Services (except Public Administration) 5,349 3% $25,070 Public Administration and Education 29,977 15% $42,298 Source: Idaho Department of Labor. PAGE 14, SECTION I BBC RESEARCH & CONSULTING

32 Top employers. Nine of the 25 largest employers in the region are public entities, including local, state and federal government and public education. The single largest employer in the region is the State of Idaho. Healthcare firms are also some of the largest employers in the region, including St. Luke s Regional Medical System, St. Adphonsus Regional Medical System and the VA hospital. Figure I-21. Major Employers, Boise City-Nampa MSA, 2011 Employer Number of Employees Industry State of Idaho 8,489 Government St. Luke's Regional Medical System 7,677 Healthcare Services Micron Technology, Inc. 5,000 Semi Conductor Mfg. WalMart 4,235 Retail/Grocery Meridian Joint School District #2 4,000 Education Boise State University 3,952 Education St. Alphonsus Regional Medical System 3,407 Healthcare Services Hewlett-Packard Company 4,000 Laser Printing Div Albertson's/A Supervalu Company 2,500 Grocery/Retail Ada and Canyon County 2,308 Government Boise School District 2,200 Education IDACorp. (Idaho Power) 1,961 Utility J. R. Simplot 1,800 HQ/Food Production Nampa School District 1,700 Education City of Boise 1,600 Government DirecTV 1,400 Customer Service Citi 1,250 Inbound - Credit Card Sales/Service Darmody Enterprises (McDonald's) 1,250 Retail Food Veteran's Affairs/Medical Center 1,250 Healthcare Services Fred Meyer 1,200 Retail/Grocery WDS Global Services 1,100 Customer Service Call Center EDS 1,000 Inbound - 3rd Party (military) Teleperformance USA 950 Inbound Customer Service Vallivue School District # Education URS 900 Construction/Engineering Services (Gov't, Mining & Power Industries) Source: Boise Valley Economic Partnership. Educational attainment. Thirty-five percent of Boise s adults aged 25 and older have a college degree or higher. This is higher than state (24%) and national (28%) averages. While the city contains a relatively large proportion of educated adults, an almost equally large proportion of adults have a high school degree or less (29%). BBC RESEARCH & CONSULTING SECTION I, PAGE 15

33 Housing Market Analysis According to the 2010 Census, there are 92,700 housing units in the City of Boise. Currently, 61 percent of the city s households own the home in which they live, while 39 percent rent their current home. In 2000, 64 percent of the city s households were homeowners and 36 percent were renters, indicating a slight shift towards renting. The city added 14,750 new units to its housing inventory since 2000, for an 18 percent increase in the size of the city s housing stock. New residential building permits issued between 2000 and 2010 were almost equally split between single family permits (55%) and multifamily permits (45%). Figure I-22 shows the number and type of permit issued in Boise in the last 10 years. Figure I-22. Building Permits Issued by Type, City of Boise, 2000 to ,200 Number of Units 1, ,036 Single Family Multifamily Note: Source: Mobile home units are not included. Between 2000 and 2008, 79 mobile homes were permitted for construction. COMPASS. Despite growth in the city s multifamily housing stock in the last 10 years, single family units still account for 72 percent of the city s housing stock. Units in structures with two to 50 units account for an additional 20 percent of the city s housing units. Figure I-23 displays the distribution of the city s housing units by type. Figure I-23. Housing Units by Type, City of Boise, 2009 Source: 2009 American Community Survey 1-year estimate. Single Family attached (6%) 2 to 5 units (9%) 50 units or more (5%) Mobile Homes (3%) 5 to 49 units (11%) Single Family detached (66%) PAGE 16, SECTION I BBC RESEARCH & CONSULTING

34 Rental housing. According to the 2009 ACS, the median contract rent in Boise was $699. This is a 26 percent increase from the contract rent of $554 in Between 2000 and 2009, the median household income of the city s renters increased by 14 percent from $27,108 to $30,793. In general, the household income of renters has increased enough to cover increases in rental rates. Figure I-24 displays the distribution of contract rents in the city. Nearly 45 percent of the city s rental units require rents between $500 and $750 per month. Rental rates within this range are considered affordable to the city s average renter household, which earns approximately $31,000 per year. Figure I-24. Contract Rent Distribution, City of Boise, % 60% 50% 45% Source: 2009 American Community Survey 1-year estimate. 40% 30% 29% 20% 16% 10% 7% 0% 2% Less than $250 $250 to $499 $500 to $749 $750 to $999 $1,000 to $1,499 2% $1,500 or more Figure I-25 displays rental rates by neighborhood. Sixty-eight percent of Downtown dwellers rent. The city s Southwest neighborhood contains only 13 percent renter households. Figure I-25. Rental Rate by Planning Area, City of Boise, 2008 Source: Blueprint Boise, Draft BBC RESEARCH & CONSULTING SECTION I, PAGE 17

35 Rental rates vary by geography in the City of Boise. Figure I-26 maps median contract rental rates by Census tract to examine the city s geographic rent distribution. The highest median rents are located in the outer edges of the city. Median rental rates consistently fall between $500 and $750 in areas with the highest renter concentrations. Figure I-26. Median Contract Rent by Census Tract, City of Boise, 2009 Source: American Community Survey 5-year estimates. Homeownership housing. According to the ACS, the median value of an owner-occupied home in the City of Boise was $193,900 in In 2000, the Census estimated the median to be at $118,100. Based on these estimates, the median has increased by $75,800 (64%), or by an average of $8,400 per year. In 2009, a household would need to earn approximately $20,000 more to be able to afford the median priced home than they would have in The median household income of Boise owners has increased since 2000 but only by $8,800. According to the city s 2010 housing needs assessment, home prices in many portions of the city peaked in 2007, and then declined. This is most notable in the city s Foothills neighborhood. However, as of 2009, the Foothills neighborhood still boasted the highest median home price in the city. The Central Bench neighborhood had the city s lowest median home price. The city s downtown neighborhood was the only neighborhood where median home prices did not decline between 2007 and Figure I-27 displays median home prices by neighborhood in 2001, 2007 and 2009 to show how the city s housing market changed during the last decade. Figure I-28 maps the city s 2009 median home prices by neighborhood. PAGE 18, SECTION I BBC RESEARCH & CONSULTING

36 Figure I-27. Median Home Values by Planning Area, City of Boise, 2001, 2007 and 2009 Source: BBC Research & Consulting from Intermountain MLS data. Central Bench Downtown East End Foothills $100,750 $189,900 $146,750 $168,900 $183,200 $235,000 $369,000 $380,950 $349,900 $339,000 $474,500 $400, North End $127,900 $274,700 $216, Northwest Southeast West Bench Southwest $129,900 $229,900 $179,900 $149,900 $260,996 $216,900 $124,900 $219,900 $162,900 $144,000 $245,391 $174,900 $0 $100,000 $200,000 $300,000 $400,000 $500,000 $600, Figure I-28. Median Home Value by Planning Area, City of Boise, 2009 Source: BBC Research & Consulting from Intermountain MLS data. BBC RESEARCH & CONSULTING SECTION I, PAGE 19

37 Housing condition. The overall condition of housing units in Boise is good. According to the ACS, less than one percent of all housing units were lacking complete plumbing 11 or kitchen facilities. 12 Stakeholders interviewed for the city s Consolidated Plan noted that overall quality is good; however, extremely low income households who need units priced less than $500 sometimes live in substandard rental units (e.g., insect infested units). Overcrowding in housing can threaten public health, strain public infrastructure and neighborhoods, and points to the need for affordable housing. The amount of living space required to meet health and safety standards is not consistently specified; measurable standards for overcrowding vary by community. According to HUD, the most widely used measure assumes that a home becomes overcrowded when there is more than one household member per room. Using HUD s definition of overcrowding, 819 units, or less than one percent of the city s occupied housing units are considered overcrowded, indicating that overcrowding is not a widespread problem in the city. Housing needs. BBC identified three areas of housing need in the City of Boise. These needs include the following: Buying has become more difficult for Boise s households in recent years. Households must earn more than $50,000 per year to buy a home in Boise. And, even at that level, households may have difficulty getting a mortgage, as lending requirements have become more stringent. Moreover, in 2000, 38 percent of the city s renters could afford to buy the median priced home of $118,100; in 2009, only 25 percent of renters could afford the median priced home of $216,500. Current, long-time homeowners may need assistance staying in their homes or making emergency repairs. Nearly one-third of the city s current homeowners are elderly, one-fourth have a disability and one-quarter of homeowners live alone. The city s rental stock is aptly priced for 72 percent of the city s renter households. While that is good news for many of the city s renter households, the city s lowest income renters are competing for a small stock of affordable rental units in the city. According to the HNA, nearly 20 percent of the city s renter households earn less than $15,000 per year and can afford to pay $375 per month in rent and utilities. Boise has approximately 1,100 units affordable to these renters, which leaves a gap of about 4,000 underserved households. Some of these low income renters include the city s elderly residents living on fixed income, persons with disabilities and refugees The data on plumbing facilities were obtained from both occupied and vacant housing units. Complete plumbing facilities include: (1) hot and cold piped water; (2) a flush toilet; and (3) a bathtub or shower. All three facilities must be located in the housing unit. A unit has complete kitchen facilities when it has all of the following: (1) a sink with piped water; (2) a range, or cook top and oven; and (3) a refrigerator. All kitchen facilities must be located in the house, apartment or mobile home, but they need not be in the same room. A housing unit, having only a microwave or portable heating equipment, such as a hot plate or camping stove, should not be considered as having complete kitchen facilities. An icebox is not considered to be a refrigerator. For information on HUD s definition of overcrowding, see: The HUD American Housing Survey defines a room as an enclosed space used for living purposes, such as a bedroom, living or dining room, kitchen, recreation room, or another finished room suitable for year-round use. Excluded are bathrooms, laundry rooms, utility rooms, pantries, and unfinished areas. PAGE 20, SECTION I BBC RESEARCH & CONSULTING

38 Transportation Like many western communities, Boise residents are primarily dependent on cars for transportation. Nearly 80 percent of Boise s residents drove alone to work each day, while only one percent relied on public transportation for their work commute. 15 Public transit provides an important cost effective transportation option for the city s low income residents. According to Boise regional public transit provider, annual bus transportation in Boise costs an adult $432, compared to $5,000 to $6,000 for car transportation. 16 Given the cost savings of public transit, it is not surprising that Boise s public transit commuters are more likely to be renters and have lower incomes than the city overall. For example, 39 percent of the city s households rent their homes, while 64 percent of the city s public transit commuters are renters. Additionally, 72 percent of the city s public transit commuters earn less than $25,000 per year, whereas only 25 percent of the city s households earn less than $25,000 per year. 17 The Boise region is served by Valley Regional Transit (VRT), which provides public transit for both Ada and Canyon counties. Figures I-29 and I-30 display the regional and downtown bus lines. Bus lines are most abundant in downtown Boise. Figure I-29. Valley Regional Transit Bus Lines, City of Boise, 2011 Source: Valley Regional Transit Means of transportation to work statistics from the 2009 American Community Survey 1-year estimate. A description of VRT s methodology for calculating transportation costs can be found here: Means of transportation to work is presented by worker, whereas income statistics are presented by household or family. BBC RESEARCH & CONSULTING SECTION I, PAGE 21

39 Figure I-30. Downtown Boise Bus Lines, City of Boise, 2011 Source: Valley Regional Transit. The Brooking s Institute s Metropolitan Transit Access project presents metropolitan and neighborhood-level information on how transit connects workers to jobs in the nation s 100 largest metropolitan areas. 18 Four metrics are used to evaluate communities overall transit accessibility: coverage, service frequency and job access. Boise ranks 52 nd out of the largest 100 metropolitan communities in overall public transit coverage and job access. More specifically: Fifty-two percent of Boise s residents live with three-fourths of a mile from a transit stop; this is lower than the average of 69 percent among the 100 largest metropolitan communities in the country; and The median wait time for a bus during rush hour traffic is 22.4 minutes, which is more than twice the wait of 10.1 minutes among all 100 metropolitan communities combined. 18 The Transit Access applications can be found here: PAGE 22, SECTION I BBC RESEARCH & CONSULTING

40 While the city trails the metropolitan average in public transit and median wait time, they do exceed the average for job coverage. Thirty-four percent of all jobs in Boise are reachable via transit in 90 minutes, compared to 30 percent among the top 100 metropolitan communities. The city s low income residents earning less than 80 percent of the Area Median Income have better public transit coverage and service frequency than the city s middle and high income residents. For example, 84 percent of the city s low income residents live within three-fourths of a mile from a transit stop, compared to 46 percent middle income residents and 36 percent high income residents. The average wait time for a bus for low income residents is 20.8 minutes, compared to 23.2 minutes for middle income residents and 23.8 minutes for high income residents. Public transportation for special needs population. The VRT s ACCESS program is a paratransit service for Boise s residents with disabilities who are unable to access ValleyRide s traditional bus services. ACCESS is an origin to destination transit service operating Monday through Saturday with the same hours as the fixed-line bus system. ACCESS will travel up to three-fourths of a mile off fixed-line routes for service pickups. If residents live further than three-fourths of a mile from a fixed-line service, they must get to a bus stop to receive ACCESS services. Sage Community Resources (SCR) serves as Boise s Area Agency on Aging (AAA). SCR connects seniors with important services, including transportation. Transportation services are designed to help seniors access social services, medical and health care services, meals programs, places of employment, senior centers, shopping, civic functions, adult day care facilities and recreational locations. 19 Preferences for services is given to older minorities and low income seniors. 19 For more information on the AAA senior transportation program: BBC RESEARCH & CONSULTING SECTION I, PAGE 23

41 SECTION II. Public Policies and Practices

42 SECTION II. Public Policies and Practices This section reviews city zoning and land use policies, as well as the policies and practices of the Boise City Ada County Housing Authority (BCACHA ), for barriers to fair housing choice and violations with the Federal Fair Housing Act. The section also contains the results of an examination of a sample of Homeowners Associations covenants. It concludes with an overview of city goals and objectives related to housing and community development. Public Housing Authority BCACHA serves as the housing authority for the City of Boise, as well as Ada County, and provides housing to the city s lowest income households primarily through the Section 8 voucher program and public housing units. Section 8 Voucher Program. The BCACHA administers 1,794 Section 8 vouchers in Ada County. Sixty-four percent of voucher recipients are Boise residents. As of May 2011, there were 5,331 households on the Section 8 waitlist, and the BCACHA estimates that households on the list will wait four to five years for a Section 8 voucher. Figure II-1 displays the demographic characteristics of Section 8 Voucher waitlisted households. Waitlisted households are largely categorized as extremely low income. African American and Hispanic residents are disproportionately represented on the Section 8 waitlist; African Americans account for less than two percent of the city s population, but seven percent of waitlisted households. Figure II-1. BCACHA Section 8 Waitlist, Household Demographics, 2011 Note: Demographic data is not provided for all applicants. Household characteristics, income and race/ethnicity categories will not sum to 100 percent. Source: BCACHA. Number Percent Applicants on Active Waitlist 5, % Household Characteristics Families with children 2,920 55% Elderly families 495 9% Families with disabilities 2,064 39% Income Extremely low income 4,449 83% Very low income % Low income 23 0% Race/Ethnicity American Indian/Alaskan Native 127 2% Asian 211 4% Black/African American 394 7% Native Hawaiian/Pacific Islander 63 1% White 4,237 79% Hispanic % Non-Hispanic 4,053 76% BBC RESEARCH & CONSULTING SECTION II, PAGE 1

43 Section 8 policies. According to BCACHA s website, households can check their status on the waitlist online or by calling or visiting the BCACHA office. Households are notified by mail when a voucher becomes available to them. To stay on the Section 8 and/or public housing waitlist, residents must report changes of address, phone, household members or local preference in writing within 10 working days of the change. Residents must also respond to requests made by the BCACHA. Failure to abide by these rules may result in the removal of residents from the waitlist. 1 This information is presented on the rental assistance application found on the BCACHA s website. The online application is only available in English. The BCACHA closed its Section 8 waitlist on April 29, 2011 citing large demand for rental assistance in the community, a limited amount of funding and federal budget cuts. 2 The BCACHA also recently suspended all Section 8 waitlist preferences, with the exception of the following categories: Applicants with a Family Unification Program referral from the Department of Health and Welfare; Applicants with a Homeless Program referral from one of the BCACHA recognized referring agencies; Applications with a CATCH program referral from the City of Boise; A household whose head or co-head (or at least one adult member) is working at least 20 hours per week, with verifiable income or whose head or co-head is participating in a BCACHA recognized job preparedness/self-sufficiency program or a household whose head or co-head is either elderly (62 or older), and/or handicapped and unable to work; and A household whose head or co-head is fleeing their home due to domestic violence. If a household does acquire a Section 8 Voucher, the BCACHA provides assistance to recipients in the following ways: The BCACHA provides recipients with information on the location of accessible units in Boise; They provide residents with an online checklist to evaluate apartments. The BCACHA encourages residents to evaluate the condition of the unit and the neighborhood; the cost of utilities; and the home s proximity to public transportation, employment, schools, medical facilities and shopping. The BCACHA encourages residents to find housing outside of Boise s high poverty areas in hopes of increasing access to good schools, job opportunities, better quality housing and responsive landlords. 1 These policies are presented on the rental assistance applications found here: 2 For more information on the Section 8 program: PAGE 2, SECTION II BBC RESEARCH & CONSULTING

44 Public housing. The BCACHA has 230 public housing units located between the Franklin Plaza and Capitol Plaza complexes. Both facilities were constructed in 1970 and are located in Boise. Both facilities serve elderly residents and persons with disabilities and contain a mix of studio, one bedroom and two bedroom apartments. The BCACHA also manages five scattered site duplexes with federal aid from HUD. Public housing applications can be obtained at the BCACHA office or online. Applications must be mailed or hand delivered to the BCACHA office in Boise. The BCACHA website can be interpreted into many languages through the Google Translate tool; however, the public housing application is only available online in English. There are currently 168 families on the waitlist for public housing units, and the average wait time for a public housing unit ranges from three months to two years depending on the unit size requested. Figure II-2 summarizes the demographic characteristics of families on the public housing waitlist. Nearly all households on the waitlist (93%) have a household member with a disability. Figure II-2. BCACHA Public Housing Unit Waitlist, 2011 Number Percent Applicants on Active Waitlist % Note: Demographic data is not provided for all applicants. As such, household characteristics, income and race/ethnicity categories will not sum to 100 percent. Source: BC/ACHA. Household Characteristics Families with children - 0% Elderly families 34 20% Families with disabilities % Income Extremely low income 7 4% Very low income 2 1% Low income 2 1% Race/Ethnicity American Indian/Alaskan Native 3 2% Asian 2 1% Black/African American 10 6% Native Hawaiian/Pacific Islander 1 1% White % Hispanic 15 9% Non-Hispanic % Limited English Proficiency policy. Title VI of the Civil Rights Act of 1964 is the federal law that protects individuals from discrimination on the basis of their race, color, or national origin in programs that receive federal financial assistance. 3 Compliance with Title VI requires that federal recipients of federal dollars provide language assistance to individuals with limited English proficiency (LEP). Otherwise, failure to ensure that persons who are limited English proficient (LEP) can effectively participate in, or benefit from, federally assisted programs may violate Title VI's prohibition against national origin discrimination Information on Title VI and HUD programs can be found here: program_offices/fair_housing_equal_opp/promotingfh/lep-faq IBID. BBC RESEARCH & CONSULTING SECTION II, PAGE 3

45 In 2007, HUD issued guidance to help federal assistance recipients understand their obligations to serving individuals with LEP. HUD suggests federal assistance recipients conduct a four-factor analysis to determine how to best service LEP individuals (explained below); develop a Language Assistance Plan (LAP); and provide appropriate language assistance to LEP individuals. HUD s four-factor analysis is a flexible and fact-dependent approach to helping federal assistance recipients determine which LEP populations to serve and how to best serve these populations. The four-factor analysis includes identifying the following: The number of proportion of LEP persons eligible to be served or likely to be encountered by the program or grantee; The frequency with which LEP persons come in contact with the program; The nature and importance of the program, activity or service provided by the program to peoples lives; and The resources available to the grantee/recipient and costs. In addition to the four-factor analysis, HUD provides more specific guidance for Title VI compliance. HUD recommends recipients provide written translation of vital documents and oral translation of non-vital documents for LEP languages if the LEP group represents five percent of the total population of the population likely to be encountered or served or 1,000 persons. HUD recommends that federal assistance recipients develop a language assistance plan (LAP) to describe how they intend to serve LEP individuals in their communities. The City of Boise approved a comprehensive LAP in April 2012 (this is discussed on page 5 below). The BCACHA s LAP was last updated in 2004, prior to HUD s 2007 guidance. According to the BCACHA s LAP, the housing authority is committed to quickly connecting LEP individuals to interpreters at no cost to the individual. BCACHA explicitly states that friends or family members of the LEP individual are not valid interpreters. Instead, the BCACHA utilizes bilingual staff members when available and a telephone interpreter service known as the Language Line Services. The BCACHA s implementation plan does not specify when written interpretation of vital documents will be provided for residents, which is an important component of HUD s 2007 Title VI guidance. However, the BCACHA s rental assistance application for its Section 8 and public housing programs does ask residents whether they need assistance with language interpretation. PAGE 4, SECTION II BBC RESEARCH & CONSULTING

46 Assisted Housing Units The following summarizes the city s inventory of affordable housing units directly owned and operated by the city which were constructed or acquired and rehabilitated with Community Development Block Grant and/or HOME Investment Partnerships Program funds made available through HUD.. City of Boise rental units. The City of Boise owns and manages 275 affordable rental units in the city. Most of these units are older units some more than 90 years old and are expensive to maintain because of the need for extensive rehabilitation and repairs. There is strong demand for these units. Applicants will likely wait a year or more for family size units and two months or more for single occupant units. Figure II-3 lists the location, number of units and year of construction for all city-owned properties. Figure II-3. City-Owned Assisted Rental Units, City of Boise, 2011 Location Number of Units Year Built Location (con'd) Number of Units Year Built 1020 S. Lusk W. Thatcher (YMCA) S. Capitol S. Lusk S. Capitol (Blvd. Hotel) W. Dundee W. Washington 4 Unkown 1329 S. Michigan W. Boise Avenue N. Liberty N. Raymond Cherry Lane Gooding Cherry Lane Gooding Cherry Lane W. Jefferson 19 Unknown 2952 Cherry Lane Camas & 918 S. Orchard /824 Wylie Lane N. Woody Drive W. Franklin S. Vista Poplar Total 275 Source: City of Boise. LEP policy. The City of Boise s LAP outlines a plan for identifying and serving LEP individuals, interpreting vital documents and monitoring and updating the city s plan. The city s Housing and Community Development (HCD) staff are to be equipped with the Department of Justice s Know Your Rights pamphlet available online in 10 languages, as well as Language Identification Flashcards available in 38 languages. After an LEP individual s primary language is identified, HCD staff are required by the LAP to make a prompt call for interpretation. The city uses Certified Languages International for its interpretation services. According to the city s interpretation service call log, HCD staff has accessed interpretation services nearly 100 times in the last five years for assistance in 10 languages. The city has also identified a list of vital documents that are to be interpreted. Priority 1 documents include lease agreements, resident handbooks, drug free addendums, lead paint disclaimers, late rent notices, marketing pamphlets, website marketing information and documents from the city s legal department. Currently, vital documents have been interpreted into Spanish. BBC RESEARCH & CONSULTING SECTION II, PAGE 5

47 The city has an aggressive plan to monitor and update its LAP, which includes an annual census of LEP individuals living in HCD housing. The city also vows to be continually vigilant regarding the needs of its LEP clients, which includes monitoring the changes in the city s LEP population and adjusting the LAP accordingly. The city suggests that LAP changes could include increasing the number of documents interpreted for residents or increasing the number of bilingual speakers on HCD property management staff. HCD plans to evaluate the LAP every three years. The Housing and Community Development Division completed a census of LEP individuals residing in its housing units at the conclusion of Program Year The city requires subrecipients of its HUD funds to comply with LEP including the development of an LAP and documentation of a four factor analysis. Subrecipients are monitored for performance pursuant to the City s monitoring policies and procedures. In addition, agencies receiving funds from the City receive technical assistance in how to comply with LEP requirements. Assisted units. There are 718 assisted units in Boise subsidized through a variety of federal programs including HUD s Section 202 and Section 8 New Construction programs. Figure II-4 lists all subsidized units in Boise. The Shoreline Plaza, operated by the BCACHA, contains the largest number of subsidized units in the city (80 units). Figure II-4. Units with Subsidized Rent, City of Boise, 2011 Property name Address Expiration Date Total Units Number of Bedrooms Efficiency One Two Three Four Shoreline Plaza 675 S 13th St Samaritan Village I 3350 Collister Dr Treehouse Apartments 240 W Boise Ave Wylie Street Station 4611 Wylie Street Ln Greenbriar Apartments 693 E. Old Saybrook Ln Apple Pointe Apartments N 34th St Bannock Arms Apartments 330 E Bannock St Owyhee Place Apartments 2500 S Owyhee St Harrison Hills 2260 Harrison Blvd Franklin Grove Apartments 4929 Franklin Rd Wildwood 2369 S Orchard St. # Riverview Homes 1070 Leadville Ave Barton Apartments 5306 W State St Dogwood Plaza 1755 N. Linda Vista Ln Arc Living Residential Home 217 Ruby St Samaritan Village II 3360 Collister Dr Cottage at Boise 3390 Collister Dr Centennial Manor 661 S Curtis Rd Total Source: U.S. Department of Housing & Urban Development. While 35 percent of the assisted rental units in Boise have contracts that expire in the next three years, many units recently renewed their contracts with HUD, securing rental affordability in Boise for the next 15 to 20 years. A majority (67%) of the subsidized rental units in Boise are one bedroom units. There are limited affordable rental opportunities for households needing two or three bedroom units. PAGE 6, SECTION II BBC RESEARCH & CONSULTING

48 Location of city-owned and assisted units. Figure II-5 maps the location of Boise s public housing and subsidized rental units by type. The city s affordable rental stock is primarily located in the Central Bench, Downtown and North End neighborhoods. Figure II-5. Location of City-Owned and Assisted Rental Units, City of Boise, 2011 Note: Source: The BCACHA did not provide BBC with current place of residence for Section 8 voucher holders. U.S. Department of Housing & Urban Development. Land Use Policy Review The following section reviews important pieces of the city s land use policy. This includes a review of how land use decisions are made and approved and the long-range growth vision for the city. Additionally, BBC used a HUD checklist to conduct a general analysis of the city s zoning code to identify potential barriers to housing choice. Clarion Associates conducted a more in-depth review of the city s land use regulations to determine their impact on the development of affordable housing. Planning and Zoning Commission. Boise s Planning and Zoning Commission is responsible for reviewing all zoning changes and conditional use applications. All nine members of the board are appointed by the Mayor and represent some facet of the development community (e.g., architecture, law, engineering, historical preservation). Currently, all members are racially White. The Planning and Zoning Commission is responsible for upholding the city s land use policies and ensuring that all planning decisions support the city s development goals. According to city staff, the commission rarely denies housing projects as long as they align with the city s adopted land use policy plan. Additionally, public opposition alone has never been a reason for the commission to deny a proposed project. BBC RESEARCH & CONSULTING SECTION II, PAGE 7

49 Comprehensive Plan. In 2007, the city began updating its 1997 Comprehensive Plan. The process, known as Blueprint Boise, commenced in May 2010 when a draft of the city s new Comprehensive Plan was presented to City Council. The draft has since undergone a series of revisions to satisfy City Council recommendations. While no public hearing date has been established for final approval of the plan, Blueprint Boise is informally considered Boise s Comprehensive Plan. The Idaho State Code requires that Idaho communities examine a number of community development categories in their Comprehensive Plans including land use; school facilities and transportation; housing; and economic development. The city s current draft of Blueprint Boise examines these elements within seven distinct vision and policy categories: Environmental stewardship; A predictable development pattern; Stable neighborhoods, and mixed-use activity centers; A connected community; A community that values its culture, education, arts and history; A strong, diverse economy; and A safe, healthy and caring community Blueprint Boise s discussion of residential development and housing focuses on providing a range of housing choices a mix of housing types and a pedestrian-oriented scale will help make Boise a community of stable neighborhoods and vibrant mixed-use activity centers. Blueprint Boise explicitly discusses the need for affordable housing and fair housing in the City of Boise. The city envisions increasing housing diversity through zoning policies that allow for a mix of housing types and densities and participation in a regional fair-share housing program. The city envisions achieving its goal of providing residents the opportunity to seek housing in a neighborhood of their choice through a public awareness campaign to inform the general public of their rights and obligations under fair housing laws and the grievance procedures available in case of violation. 5 HUD zoning code review. To evaluate potential fair housing concerns within the city s zoning code, BBC utilized a Review of Public Policies and Practices (Zoning and Planning Codes) form recently circulated by the Los Angeles fair housing office of HUD. This section poses the questions from this checklist, along with responses about the city s code. Does the code definition of family have the effect of discriminating against unrelated individuals with disabilities who reside together in a congregate or group living arrangement? The city s code does not define the term family. Dwelling unit is defined as a single-family residence that may be occupied by family (related by blood or marriage), or by up to five (5) unrelated individuals or by any number of physically or mentally handicapped or elderly persons as long as the residential character of the dwelling is preserved. Thus, group living for individuals with disabilities is allowed but is contingent on preservation of residential character. 5 Blueprint Boise: Blueprint_Chapter_2.pdf PAGE 8, SECTION II BBC RESEARCH & CONSULTING

50 The Boise Code does not reference Idaho State Code Section which defines a single family dwelling to include any group residence in which eight (8) or fewer unrelated persons with disabilities or elderly persons reside and who are supervised at the group residence in connection with their disability or age related infirmity. However, the Boise code does not restrict the number of handicapped or elderly persons living together like the State code does. Zoning Regulation Impediment: Does the Code definition of family have the effect of discriminating against unrelated individuals with disabilities who reside together in a congregate or group living arrangement? N/A, see above. Zoning Regulation Impediment: Does the Code definition of disability the same as the Fair Housing Act? The Zoning Code does not provide a definition of disability, disabled or handicap. It does state that the physically and/or mentally handicapped includes those currently undergoing rehabilitation for drug and/or alcohol addiction. Practice Impediment: Does the zoning ordinance restrict housing opportunities for individuals with disabilities and mischaracterize such housing as a boarding or rooming house or hotel? No. As discussed above, individuals with disabilities may live together in a single-family dwelling unit. Handicapped homes, which house mentally and/or physically handicapped patients and resident staff, are allowed in all R-1 zones without a special permit and are allowed in R-2, R-3 and R-O zones upon administrative review of approval criteria. The definition of boarding or rooming house in the code does not specifically exclude group living for individuals with disabilities, which may lead to confusion. Practice Impediment: Does the zoning ordinance deny housing opportunities for disability individuals with on site housing supporting services? The definition of handicapped homes recognizes the need for supervisors, which is linked to on-site support services. However, Boise s Code does not address support services for individuals with disabilities living together in a single family dwelling unit. Does the jurisdiction policy allow any number of unrelated persons to reside together, but restrict such occupancy, if the residents are disabled? No, in fact the city does just the opposite: The city limits the number of unrelated persons in one household to five, but does not limit the occupancy of disabled residents. Does the jurisdiction policy not allow disabled persons to make reasonable modifications or provide reasonable accommodation for disabled people who live in municipal-supplied or managed residential housing? No. Does the jurisdiction require a public hearing to obtain public input for specific exceptions to zoning and land-use rules for disabled applicants and is the hearing only for disabled applicants rather than for all applicants? No. Public hearings are required to obtain a conditional use permit or non-administrative variance, but the hearing is not specific to persons with disabilities. Does the zoning ordinance address mixed uses? How are the residential land uses discussed? What standards apply? Yes. The City of Boise does address mixed use zones, which include Neighborhood Office (N- O), Limited Office (L-O) and Residential-Office (R-O). The R-O district focuses on implementing mixed use development with an emphasis on high quality urban design and pedestrian-orientation in BBC RESEARCH & CONSULTING SECTION II, PAGE 9

51 those areas identified for mixed use in the Comprehensive Plan, the Downtown Boise Plan and the River Street-Myrtle Street Urban Design Plan. The N-O and L-O districts, while effectively promoting mixed use, are focused on compatibility between small-scale office space and residential areas. Residential uses allowed in N-O, L-O and R-O districts (either by right, by administrative review or by permit) include single family, duplex and multiple family dwellings; enhanced manufactured homes and manufactured home communities; boarding and rooming houses; halfway houses; homes for the physically or mentally handicapped; and residential uses for owner or caretaker. A description of general standards for the N-O, L-O and R-O zoning districts are as follows: Flexible development standards and the application of Design Review principles are intended to be used to stress residential and mixed use design principles. In general, minimum residential lot sizes, widths and setbacks are lower in mixed use districts than in other residential districts. Maximum dwelling units per acre range from 14.5 to 87.1 in these districts. In R-O districts, conditional use applications will not be accepted for stand-alone commercial uses except groceries. Heliports, medical centers, religious institutions and some utilities are conditionally permitted. In addition to these residential districts, mixed use is a component of the Pedestrian Commercial (PC) district, which is coded to provide for the pedestrian-friendly design of retail, office and mixed use developments in areas designated as Commercial or Mixed Use. Residential uses are encouraged in conjunction with commercial uses in this district. The standards for residential uses within a PC zoning districts are as follows: Residential uses are allowed as a secondary use at ground level or on upper floors above commercial or entertainment uses on the ground floor. Minimum lot area per unit is 2000 sq. ft. Minimum unit size is 500 sq. ft. Private open space (patio or balcony) per unit is 60 sq. ft. Parking Requirement is one space per unit and.5 space for each bedroom beyond 2. Parking must be accessed from the same driveway as the commercial parking area; however, residential parking spaces may be designated for the exclusive use of the residents. A third district related to mixed use development is the Specific Plan (SP) district. These districts provide a means to modify or create new zoning regulations for unique areas and developments, such as mixed use districts and planned communities or planned developments, where other conventional zoning mechanisms cannot achieve the desired results. Each SP district has its own non-transferable set of regulations. Specific Plans are adopted into the zoning code by ordinance and become either the base zone or an overlay zone for the property. Does the zoning ordinance describe any areas in this jurisdiction as exclusive? No. PAGE 10, SECTION II BBC RESEARCH & CONSULTING

52 Are there exclusions or discussions of limiting housing to any of the following groups: race, color, sex, religion, age, disability, marital status or familial status and/or creed of national origin? No. Are there any restrictions for Senior Housing in the zoning ordinance? If yes, do the restrictions comply with Federal law on housing for older persons (i.e., solely occupied by persons 62 years of age or older or at least one person 55 years of age and has significant facilities or services to meet the physical or social needs of older people)? Elderly Housing is defined in the Code as multiple family housing constructed for occupancy by elderly individuals or families (households with one or more members 65 years of age or older). Elderly Housing is allowed by right in R-1 districts and is allowed with administrative review in R-2 and R-3 districts. In addition, any number of unrelated elderly persons may occupy a singlefamily unit in any residential district as long as the residential character of the dwelling is preserved. Does the zoning ordinance contain any special provisions for making housing accessible to persons with disabilities? No. Does the zoning ordinance establish occupancy standards or maximum occupancy limits? Yes. Households and boarding or rooming houses are subject to occupancy limits. Households composed of unrelated persons are restricted to five people (excluding households of physically or mentally handicapped or elderly persons) and boarding or rooming houses are restricted to 12 persons who are not members of the householder's family. Homes for physically and/or mentally handicapped or elderly persons including rehabilitation for persons addicted to drugs and/or alcohol are not restricted by number of occupants, but are restricted to two resident staff. Does the zoning ordinance include a discussion of fair housing? No. Describe the minimum standards and amenities required by the ordinance for a multiple family project with respect to handicap parking. Boise zoning code requires compliance with ADA and IBC accessible parking standards. However, multifamily units located in parking district P-1 downtown are not required by the Code to provide any parking spaces. Does the zoning code distinguish senior citizen housing from other single family residential and multifamily residential uses by the application of a conditional use permit (cup)? No. Administrative review is required for elderly housing facilities in R-2 and R-3 districts but is permitted by right in any R-1 district. Does the zoning code distinguish handicapped housing from other single family residential and multifamily residential uses by the application of a conditional use permit (cup)? No. Administrative review is required for homes for physically and/or mentally handicapped in R-2 and R-3 districts but is permitted by right in any R-1 district. How are special group residential housing defined in the jurisdiction zoning code? Residential use types that include group housing are defined below: Households: Dwelling units for households allow for group living by up to five unrelated individuals or by any number of physically or mentally handicapped or elderly persons as long as the residential character of the dwelling is preserved. The physically and/or mentally handicapped includes those currently undergoing rehabilitation for drug and/or alcohol addiction. BBC RESEARCH & CONSULTING SECTION II, PAGE 11

53 Convalescent Home: A building housing any facility, however named, whether operated for profit or not, the purpose of which is to provide skilled nursing care and related medical services for two (2) or more individuals suffering from illness, disease, injury, deformity or requiring care because of old age. Halfway House: A type of housing for persons convicted of non-violent crimes who are in the later stages of serving a sentence and are being transitioned back into free society. Handicapped Home: Homes for mentally and/or physically handicapped resident patients and no more than two resident staff, where all State and local licensing and standards of operation requirements have been met. Homes for the mentally and/or physically handicapped shall include those currently undergoing rehabilitation for drug and/or alcohol addiction. Elderly Housing: Multiple family housing constructed for occupancy by elderly individuals or families (households with one or more members 65 years of age or older). Fraternity or Sorority House: A facility for housing a club of men (fraternity) or women (sorority) college students. Boarding or Rooming House: A building other than a hotel or restaurant where lodging or lodging and meals are provided for compensation to six (6) to twelve (12) persons who are not members of the householder's family. Shelter Homes: these are not defined in the Code, but are included under uses in Commercial zones. Does the jurisdiction s planning and building codes presently make specific reference to the accessibility requirements contained in the 1988 amendment to the Fair Housing Act? Is there any provision for monitoring compliance? No. Land use regulations as barriers to affordable housing development. Clarion Associates, a planning and land use firm from Denver, conducted an in-depth review of city zoning and land use regulations for barriers to fair housing choice, including barriers to developing affordable housing. Clarion Associates evaluated five parts of the city s land use regulations: General regulations; Lot and building dimensions; Permitted and conditional uses; Parking requirements; and Zoning map constraints; Clarion Associates also examined a sample of Covenants, Conditions and Restrictions (CCRs) that govern Homeowners Associations (HOAs) in Boise. CCRs are private agreements between housing developers and homeowners that stipulate how housing may be used or maintained. CCRs do not override city s zoning or subdivision controls, and cities are often not involved in the development of CCRs. Nonetheless, CCRs are an important land use code that can create fair housing barriers and they deserve evaluation. PAGE 12, SECTION II BBC RESEARCH & CONSULTING

54 Clarion Associates findings are summarized below. Their full analysis can be found in Appendix A. General regulations. General regulations include the purpose statement, definitions used to frame the city s zoning code, inclusionary regulations or incentives and flexibility on non-conforming structures. Clarion Associates recommends the city consider adding a purpose statement to its code that more specifically addresses the city s purpose to provide housing choices for residents and to comply with applicable federal and state law. The purpose statement should also reflect the city s intent to coordinate housing and transportation to allow affordable housing and multifamily housing near transit. Clarion Associates recommends the city add a definition of affordable housing to its land use code, in addition to the definition provided in the city s Impact Fee Ordinance, as well as a definition for family or functional family. Clarion Associates also recommends the city modify its definition of dwelling unit to increase the number of unrelated persons allowed to live in a dwelling unit from five to six or eight. These additions and modifications will help allow for or promote affordable housing in the city. Affordable and low income housing projects are exempt from impact fee requirements of the Impact Fee Ordinance. This is a good incentive to promote affordable housing. The city should consider adding additional incentives such as density bonuses or parking reductions for affordable and lowincome housing projects. Finally, Boise should consider adding a provision to its zoning code that allows nonconforming structures be replaced with the same number of units if they are damaged or destroyed through fire or natural causes. This will help preserve non-conforming affordable housing. Lot and building dimensions. Lot size, lot width, building height, density and housing size requirements in zoning codes directly impact communities ability to develop affordable housing. These are all examined below. Lot size. The most common minimum lot size permitted in Boise s residential districts is 5,000 square feet, which does not facilitate the construction of affordable housing. However, the minimum lot size in the R-1M district is 2,160 square feet for attached residential units, which does promote affordability. In addition, the R-O district, a transitional district between higher intensity residential uses and commercial uses, allows 2,500 square foot lots for residential uses. This lot size will also allow for more affordable housing options. The amount of land zoned R- 1M and R-0 should be reviewed to see if it is adequate to help meet affordable housing demands. Lot width. While some codes require minimum lot widths of 70 feet or more, small homes can be constructed on lots as narrow as 25 to 40 feet. In Boise, three residential districts require an average lot width of 50 feet. While this is not an excessive lot width, allowing some narrower lots would help promote affordable housing. The city should consider revising this standard to allow for 25 to 40 feet lot widths in one or more residential districts, even if minimum lot sizes are not being reduced in those districts. The R-1M district permits interior lots of 18 feet wide for attached units and 36 feet wide for detached units. This is a much more affordable lot width that can help promote affordable housing within the city. The amount of land zoned R-1M should be considered to ensure sufficient land is available within this district. BBC RESEARCH & CONSULTING SECTION II, PAGE 13

55 Building height. As with lot size and width, the issues of multifamily density and height are related. Multifamily building height regulations only create barriers to affordable housing if they prohibit the builder from building the largest number of units possible on that site without moving to a more complex and expensive building code. Because of the high cost of constructing underground parking, many affordable housing projects accommodate parking in surface or above-ground structures (i.e., by stacking dwelling units over a parking deck or podium). If surface parking is chosen then the builder needs to accommodate housing units on less site area (avoiding the parking lot), which tends to require taller buildings. If a structured parking podium is used, then the housing can cover more of the site but needs to be accommodated in the remaining available height above the parking structure. In general, the 45 foot height limit in the R-3 district restricts structures to about four floors, including parking. While allowing efficient construction is an important contributor to affordability, maximum heights should not exceed the height at which the local fire department or district can provide effective fire protection with available equipment and manpower. In Boise, it appears that the C-5 district allows multifamily housing and does not have a height limit, which would avoid height-related affordability barriers. Density. In Boise, the highest density in a multifamily district outside of downtown is 43.5 dwelling units per acre. In addition, the R-O district, located primarily downtown, permits up to 87.1 dwelling units per acre. These densities should be adequate to support the development of affordable housing provided that height, parking and other regulations do not prevent the achievement of those densities in practice. No maximum lot coverage requirements were found in the Boise code, which removes one of the potential barriers to achieving efficient densities in multifamily housing. Housing size requirements. Minimum house size requirements have also been identified as a significant cause of increased housing price in those communities where they are in place. The zoning and subdivision regulations should not establish minimum house or dwelling unit sizes (beyond those in the building code). Boise does not have a minimum house size requirement (except for in the P-C district of 500 square feet), which largely avoids this potential barrier. This is an acceptable minimum house size requirement if it is necessary to establish one, although cities like Denver have removed all size minimums from the zoning code, and allow the building code alone to address the health and safety issues related to unit size. Permitted and conditional uses. These section discuses a number of different types of housing that are important for affordable housing and fair housing in communities. Manufactured and mobile housing. Manufactured housing and mobile homes remain one of the more affordable forms of housing available, and cities that do not accommodate them in some way may be limiting their citizens ability to find housing they can afford. Idaho Statute Title 67, Chapter 65 requires manufactured housing to be permitted on all land zoned single-family (except historic Districts). In addition, the federal National Manufactured Housing Construction and Safety Standards Act of 1974 requires that manufactured housing meeting HUD safety standards be treated the same as stick-built housing that meets the building code. As a practical matter, that means they need to be allowed in at least one zone district. PAGE 14, SECTION II BBC RESEARCH & CONSULTING

56 Manufactured home communities (which permit both enhanced and stock manufactured homes) are allowed in all residential districts with a conditional use permit from the Planning and Zoning Commission. This practice complies with Idaho Code B, Manufactured Housing Community Equal Treatment Required. Mobile homes are only permitted within mobile home parks. It is typical to restrict these older homes to mobile home parks because they are generally considered less safe than those built to MHA standards. It is also typical to require additional approval for mobile home parks, as in Boise, where a conditional use permit from the Planning and Zoning Commission, is required for mobile home parks in the two highest density residential districts (R-2 and R-3). Mobile home parks are prohibited in all other residential districts, which is not unusual. Boise has separate standards for mobile home parks and manufactured home communities, but those standards still require compliance with all subdivision platting standards applicable to the zone district where the property is located. It appears, for example, that both types of communities must meet the minimum lot size applicable to stick-built single-family housing in the same zone district. While it is good to have specialized standards for these types of development, the city should consider decreasing the required lot size below that of the base zoning district and reduce parking requirements below two per dwelling unit in at least one residential zone district Group homes. A person with a handicap is a person with a physical or mental impairment that substantially limits one or more of his or her major life activities; or a person who has a record of such impairment, or a person who is regarded as having that type of impairment. The definition covers the frail, the elderly, persons with HIV, physically disabled, developmentally disabled, mentally ill, and recovering alcoholics and drug addicts. If a local government does not allow for residential uses for the types of individuals listed above, it may be deemed to have made those types of residences unavailable and therefore the community violates the Fair Housing Act. Municipal development codes should clarify that housing for individuals protected by the Fair Housing Act are treated as residential uses and should generally allow those group housing uses in at least one residential district. While some communities require a special permit for these uses, others allow them by right provided that they comply with standards limiting scale, character, and parking. The Boise code permits group housing for physically and/or mentally handicapped or elderly by right in most residential districts, and with administrative approval in the remainder of the residential districts and all office and commercial districts. Again, however, if the limitation of five unrelated persons as found in the definition of dwelling unit applies to these types of facilities it will significantly impact their effectiveness as a tool to provide fair and affordable housing to protected groups. As previously stated, the city may want to consider increasing this number to six or eight persons to promote affordability. In addition, boarding/rooming houses, convalescent homes, nursing homes, and halfway houses are permitted either by right, with administrative approval, or with a conditional use permit from the Planning and Zoning Commission in several residential, office, and commercial districts. These regulations help remove barriers to affordable housing and are typical of those in many other communities. BBC RESEARCH & CONSULTING SECTION II, PAGE 15

57 Our review of Boise s regulations for persons and rehab for persons addicted to drugs and/or alcohol appears to indicate that they are not permitted in any zone district. We interpret this to mean that facilities with persons meeting this description are not included within home for physically and/or mentally handicapped. Although failure to accommodate those groups is not a violation of the Fair Housing Act, it is common for cities to find at least one zone district where they are permitted following review. Some communities require that some group housing uses be separated from each other and from other listed uses (generally schools and religious institutions), which can limit the number of group housing units allowed. The absence of spacing regulations in the Boise zoning code helps promote access to fair and affordable housing. Accessory dwelling units. Accessory dwelling units (ADUs) (a second, smaller residential lot on a parcel that already contains a primary dwelling unit) have been identified as an important tool in promoting housing affordability. Their limited size helps reduce building or conversion costs, and because they are located on already existing lots there are no additional land costs. Accessory dwelling units are permitted in all of Boise s residential districts with administrative approval. However, it appears that the administrator is only permitted to approve ADU applications if they are consistent with the character of the area. If that is interpreted to mean that ADUs are only permitted in areas of the city where ADUs are already present, that would significantly limit the effectiveness of this emerging affordability tool. Multifamily. In Boise, multifamily is permitted by right in three downtown districts: R-3, R-O, and C-5. This should be an adequate number of zone districts to respond to different types of multifamily demand, provided that the city has zoned an adequate amount of land into these three categories. In addition, multifamily is permitted two districts outside of downtown, R-3 and R-O. The zoning map only shows one R-O parcel outside of downtown, indicating that the city is mostly reliant on the R-3 district for multifamily uses. While it may be sufficient to permit multifamily in one district, it is also important that there is sufficient land zoned for that district to create a reasonable chance that multifamily will be developed. Mixed-use development. In order to promote affordability, housing should be allowed near businesses that employ workers, particularly moderate and lower income employees. To do that the code should permit residential units in at least one commercial zone district or should map some lands for multifamily development in close proximity to commercial districts. Boise addresses this issue through allowing residential uses (mostly with administrative approval or a conditional use permit) in the office and commercial districts. A few of the office and commercial districts could be considered mixed use districts, which generally promote affordability. In addition, the purpose statement for the P-C district includes providing for mixed use development. Residential and commercial uses are permitted in this district but it appears that no land may have been zoned into this district to date. Another way to promote affordable housing is through allowing a variety of housing types. Boise may want to consider allowing additional housing options like cohousing or zero lot line houses. Zero Lot Line Development is defined in the code yet it is not permitted by right in any district. The city should consider permitting these in the R-1M district where duplexes and row houses are allowed. This would allow for a different configuration of homes without significantly altering the character of the district. PAGE 16, SECTION II BBC RESEARCH & CONSULTING

58 Another affordable housing option is single room occupancy hotels (SROs). SROs are permitted with a conditional use permit from the Planning and Zoning Commission in all commercial districts. Because this use is very similar to a hotel, they city should consider allowing it downtown without the need for a conditional use permit. Once again, the character would not change, but affordable housing options would be increased. Parking requirements. Boise requires two parking spaces per dwelling unit for single-family units. While this is the traditional standard, many cities are reducing their parking requirements. It is typical for local governments to have lower parking standards for multifamily developments and in Boise, one and a half parking spaces, plus one guest space per 10 dwelling units, is required. The city may also want to consider reducing this parking requirement for smaller units and those with fewer bedrooms. In Boise, the Planning Director may reduce residential parking requirements by up to 10 percent, and larger reductions are available through a conditional use permit. This type of flexibility can be a significant help to affordable housing builders. Boise also has parking districts that reduce parking requirements for downtown areas. The parking district map established three parking districts that generally expand concentrically from the downtown core. The parking table establishes lower standards for these downtown districts based on the special needs of downtown, and this, too, promotes housing affordability. Many local governments adopt lower parking standards for affordable or group housing developments because lower income households may own fewer cars, and because many special needs residents do not own cars. These standards vary greatly depending on the types of group living to which they apply. Boise has lower standards for certain uses like halfway houses, retirement centers, and nursing homes, which promotes fair access and affordable development of these types of facilities. The Boise zoning code references the FHA handicapped parking requirements but does not mention ADA handicapped parking requirements or FHA and ADA site accessibility requirements. The city should consider cross-referencing these standards within the parking requirements and within the site planning requirements, just so site developers and builders are aware of these requirements early in the site design process. Zoning map constraints. As noted above, Boise s development regulations already contain some zoning districts, specific use standards, and tools that can help promote fair access and affordable housing production and retention. However, the power of those tools is limited by how much land is included in the districts i.e. whether Boise actually makes an adequate supply of land available so that potential affordable, multifamily, and group housing providers can find opportunities to build the housing needed. Clarion Associates recommends that the city conduct an analysis of whether more land should be rezoned to allow smaller, narrower single-family lots or higher density multifamily development. Restrictive covenants. CCRs are private agreements between the housing developer and those who buy or occupy housing to use or maintain property in a certain way. CCRs do not override zoning or subdivision controls, which means that most cities grant or deny zoning and development permits without regard to whether proposed building or use is consistent with the CCRs that apply to the property. Enforcement of CCRs is generally by a developer or homeowners association (HOA) through a private action against those who violate the CCRs, and the city is seldom if ever a party to those actions. BBC RESEARCH & CONSULTING SECTION II, PAGE 17

59 CCRs can violate fair housing rights in a number of ways. The most common situation in which CCRs could violate the Fair Housing Act is a fairly standard provision that requires all properties to be used as single-family homes, which are then defined to exclude group homes. A variation on this theme is CCRs that prohibit all commercial uses in the development and then define group homes to be a commercial development. Challenges to these types of CCRs usually claim a violation as a result of incidental discrimination or failure to make a reasonable accommodation to allow group homes. In all cases of fair housing discrimination filed against HOAs for their CCRs, Clarion Associates did not find any situations where the city or county was held responsible for the violations. Instead, developers, architects, investors and others involved in the development of the HOA are often liable for discriminatory CCRs. BBC randomly selected 10 CCRs recorded with Ada County to review for compliance with the Fair Housing Act. Six of the 10 CCRs received additional review from Clarion Associates. Three of the six CCRs reviewed prohibit shelter homes in their subdivisions. If a shelter home is interpreted to be the same as a group home, this is a fair housing violation, and it is not consistent with Idaho Code, which highlights an intent to not comply with a clear state statute. However, since neither the Fair Housing Act nor the Idaho Code include a definition of shelter home, it is possible that a court might find that term to be either broader or narrower than the protections in the Fair Housing Act and Idaho Code. Other Public Sector Programs and Services Fair housing outreach and education. In 2006, two of the five fair housing impediments identified in the city s AI were directly related to residents limited access to fair housing information. In response to these impediments, the city established a five-member Fair Housing Task Force with the goal to further awareness and understanding of fair housing issues. 6 In April 2011, the task force and the city launched a fair housing public awareness campaign called Good Neighbors + Fair Housing = Strong Communities to increase community awareness and understanding of fair housing rights and responsibilities. Fair housing messages were spread to Boise residents through radio and television public service announcements, billboards, bus panels, bus benches and community presentations. The initiative was supported through the financial contributions of 15 partners, including Idaho Housing and Finance Association (IHFA), the Idaho Department of Health and Welfare, local banks, Valley Regional Transit and local broadcasting companies. The city s fair housing campaign has been adopted by HUD as a model for fair housing outreach. IHFA, with initial support from the City of Boise, created and continues to maintain the Fair Housing Forum ( which is the only Idaho-based online resource dedicated to providing practical informational resources and promoting awareness through respectful collaboration and cooperation among all stakeholders.. The City along with other key partners including the Boise City Ada County Housing Authority, Idaho Housing and Finance and Idaho Legal Aid developed extensive technical assistance for providers assisting clients with limited English 6 For more information on the City of Boise s fair housing task force: HCD/FairHousing/page11361.aspx PAGE 18, SECTION II BBC RESEARCH & CONSULTING

60 including a Checklist for Developing a Language Assistance Plan. This information is maintained at The City of Boise also maintains a fair housing website ( The website outlines protected classes and prohibited actions under the Fair Housing Act and provides information for organizations that could field fair housing complaints, including HUD and the Idaho Human Rights Commission. In 2006, the City along with other contributing partners developed Boint (BoiseInterpreters.com) as part of a larger Diversity Project. The site if the product of a community based effort to increase access to language interpreter and translator services for providers serving limited English speaking individuals within the community. City housing and community development activities. Boise administers a number of housing programs and activities to ensure that residents have adequate and affordable housing. These programs and activities include the following: Rehabilitation loans. Low to moderate income homeowners can receive low interest loans to make necessary repairs and bring homes up to code, make emergency repairs. The maximum loan amount is $60,000; the maximum loan term is 30 years. Funds are also available for renteroccupied improvements and multifamily properties. Emergency and energy efficiency and home repair. Homeowners at or below the median income can obtain a loan for the replacement of a roof, furnace, windows, insulation and other such repairs. Funds are available at a low interest for a term of 15 years; maximum loan amount is $15,000. Handicapped accessibility loans. The City makes funds available to modify a home or apartment to increase or maintain independent living for low income elderly and disabled homeowners and renters. Examples of repairs that are eligible include: bathroom grab bars, doorbell lights for hearing impaired and step railing and ramps. Homeownership. The City offers loans of up to 25 percent, of $35,000 (whichever is less), of the purchase price of a home at a low interest rate for a 30-year term to low and moderate income homebuyers. The loans are deferred up to three years. The loans have a 10 year prepayment penalty. Each year the City has a target of 25 loans; however, the annual average is 55 loans. Rental housing. As described earlier in this section, the city owns and maintains a number of affordable rental units in the city. Homeless housing. The city operates and supports many programs that address the needs of the homeless population in Boise: city-owned rental units for low to moderate income persons; long-term supportive housing for homeless families with children; short-term emergency hotel vouchers when shelters are full; a Community Detoxification and Mental Health Treatment Facility; and funding partnerships with community organizations that serve persons who are low income and/or experiencing homelessness. In 2006, the City of Boise, through the Office of BBC RESEARCH & CONSULTING SECTION II, PAGE 19

61 Mayor David Bieter, took the lead in coordinating a community-wide 10-Year Plan to Reduce and Prevent Chronic Homelessness. The goal of this plan is to provide housing first, or permanent supportive housing, to those who are experiencing chronic homelessness (111 persons in ) and then to expand services to others who are experiencing homelessness. The City provides leadership coordination, and strategic investment for the Boise City/Ada County Continuum of Care (CoC) by serving as the lead agency and applicant for an annual competitive grant through McKinney Vento Homeless Funds administered by the U.S. Department of Housing and Urban Development. The CoC is a coordinated community approach composed of representatives of relevant organizations, which generally includes nonprofit homeless providers, victim service providers, faith-based organizations, governments, businesses, advocates, public housing agencies, school districts, social service providers, labor agencies, mental health agencies, hospitals, universities, affordable housing developers, law enforcement, legal agencies, organizations that serve homeless and formerly homeless veterans, and homeless and formerly homeless persons that are organized to plan for and provide, as necessary, a system of outreach, engagement, and assessment; emergency shelter; rapid rehousing; transitional housing; permanent housing; and prevention strategies to address the various needs of homeless persons and persons at risk of homelessness for a specific geographic area. Many of the city s housing and community development activities are funded with HUD Community Development Block Grant (CDBG) and HOME Investment Partnerships Program funds (HOME). In the last four years, the city received an approximate annual allocation of $1.3 million in CDBG and $830,000 in HOME. However, allocations have recently declined and Fiscal Year 2011 funding levels for the CDBG and HOME programs have resulted in the lowest annual allocations for the City of Boise since the city became a HUD entitlement community. In 2008, the City established a $2,000,000 Neighbors in Need Trust Fund to prevent and reduce homelessness. Interest earned from the fund is granted to non-profits for various programs and is also invested to support the CoC. The city recently completed its Five-year Consolidated Plan. The city s six Consolidated Plan strategies are listed below. The city s Consolidated Plan is focused on the provision and preservation of affordable housing, as well as furthering fair housing in Boise. Strategy No. 1. Preserve and improve the quality of existing owner and renter low and moderate income occupied units. Strategy No. 2. Provide homeownership opportunities for low and moderate income Boise residents thereby increasing personal asset base and mitigating slum and blight. Strategy No. 3. Utilize limited funding to strategically create and preserve affordable rental housing units. Strategy No. 4. Support affirmatively furthering fair housing. Strategy No. 5. Support the creation and operation of a sound, effective and efficient human services delivery system for special needs and low income individuals. PAGE 20, SECTION II BBC RESEARCH & CONSULTING

62 Strategy No. 6. Address economic development and opportunity to improve the quality of life in Boise. COMPASS. The Community Planning Association of Southwest Idaho (COMPASS) serves as the metropolitan planning organization (MPO) for the Boise region. Unlike some states, regional planning organizations and jurisdictions in Idaho are not required to establish and monitor regional and local affordable housing development goals. Instead, COMPASS and other regional planning organizations in the state function as traditional MPOs, whose primary objectives include developing a regional transportation plan that adheres with federal regulations, allocating transportation improvement program funding and serving as a conduit of regional demographic, land use, transportation and GIS data and information. COMPASS is an active regional planning organization and has partnered with the City of Boise on a number of local and regional planning activities, including Blueprint Boise, the Downtown Boise Mobility Study and the 30 th Street Area Master Plan. Many of COMPASS past and current studies encourage the coordination of transportation and land use planning to promote higher density development and transportation access. Public infrastructure and parks. Inequitable delivery of public services and amenities to low income residents can be a barrier to fair housing in a community. Equitable service delivery across all neighborhoods is particularly important in communities with racial and ethnic concentrations to ensure that minority and low income households have access to the same quality of life enhancements including parks and recreation as moderate and high income households. As part of the city s recently completed Consolidated Plan, residents were asked to rank the city s greatest infrastructure needs. Residents selected a ranking of 1 to indicate the lowest level of need and a 6 for the highest level of need. Figure II-6 shows the survey results. The average rating for all infrastructure areas was below 4, or moderate. Twenty percent of survey participants consider sidewalk improvements a high need; 10 percent of participants consider ADA improvements to public areas a high need. Figure II-6. Infrastructure Need Rankings Note: Average rankings are in parenthesis. n=182. Source: Boise Housing and Community Development Survey January-March 2011 and BBC Research & Consulting. Sidewalk Improvements (3.8) Street Lighting (3.4) ADA Improvements to public areas (3.3) Street/Alley Improvement (3.1) Drainage Improvement (2.8) Water/Sewer Improvement (2.6) 6 0% 20% 40% 60% 80% 100% BBC RESEARCH & CONSULTING SECTION II, PAGE 21

63 In 2010, the city made a number of sidewalk and ADA improvements to increase accessibility to public facilities and services for city residents and employees. Improvements have primarily been made to city-owned rental units, commercial spaces owned by the city and leased to non-profit agencies and city parks. These improvements were often funded by CDBG. These improvements included: 7 An extensive Section 504 Assessment and Transition Plan of its affordable rental housing and commercial property portfolio in January This assessment resulted in the development of plans and specifications for various projects across the city. The city bid out an estimated $300,000 in ADA improvements last spring; ADA compliant automatic door openers at the Senator Apartments, which is a multifamily affordable rental housing complex owned and operated by the city; A Section 504 Handbook, which included information on how to assist staff with assisting customers with disabilities; An ADA compliant bocce ball court in Ann Morrison Park; ADA accessible restrooms at Ann Morrison Park and Helen B. Lowder Park; Accessible parking to Hillcrest Park; Accessible playgrounds to Morris Hill Park and Williams Park; The installation of an accessible ramp from the parking lot to the basketball courts at Sunset Park; and Two ramps at the playground at Willow Lane. Prior to 2010, the city dedicated funds to improve accessibility of its downtown infrastructure. Nearly $150,000 of CDBG was used to replace non-compliant ADA curb curbs in downtown Boise. The Ada County Highway District followed that project with an additional 18 curb cub replacements. An estimated 10,900 low to moderate income persons were served by these accessibility improvements. In 2008, the city and the Capital City Development Corporation partnered to remove a large inaccessible ramp, known as the Ramp to Nowhere in the city s downtown core. The project was funded with CDBG. The City of Boise is well known for its extensive parks and trails. There are 90 parks, 23 miles of greenbelt and 1,200 acres of open space in the Boise Foothills. 8 As demonstrated in Figure II-7, the city s park system is orientated around downtown Boise and the Boise River. One of the city s larger parks, the Ann Morrison Park, is accessible to residents in the Central Bench neighborhood, which has traditionally been one of the city s lowest income neighborhoods. 7 Language borrowed directly from the City of Boise ADA/Section Annual Report. 8 City of Boise 2004 Parks and Recreation Comprehensive Plan: PAGE 22, SECTION II BBC RESEARCH & CONSULTING

64 Figure II-7. Public Parks, City of Boise, 2011 Source: 2004 City of Boise Parks and Recreation Master Plan. BBC RESEARCH & CONSULTING SECTION II, PAGE 23

65 SECTION III. Fair Lending and Complaints

66 SECTION III. Fair Lending and Complaints This section of the City of Boise AI is divided into two sections. The first section reviews fair housing complaint data and legal cases related to fair housing violations to highlight the prevalence of and trends in fair housing violations. The second part of this section contains an analysis of mortgage loan and community reinvestment data to detect fair lending concerns. Fair Housing Complaints The Federal Fair Housing Act, passed in 1968 and amended in 1988, prohibits discrimination in housing on the basis of race, color, national origin, religion, gender, familial status and disability. The Fair Housing Act covers most types of housing including rental housing, home sales, mortgage and home improvement lending, and land use and zoning. Excluded from the Act are owner-occupied buildings with no more than four units, single family housing sold or rented without the use of a real estate agent or broker, housing operated by organizations and private clubs that limit occupancy to members, and housing for older persons. 1 HUD has the primary authority for enforcing the Fair Housing Act. The State of Idaho s fair housing act prohibits discrimination on the basis of race, color, sex, religion, national origin and disability. It does not recognize familial status as a protected class. The law is also different from the Federal Fair Housing Act in that it covers providers with two or more units or properties. The state s fair housing law is enforced through the Idaho Human Rights Commission. The City of Boise does not have a fair housing ordinance. Contacts for complaints. Boise residents who feel that they might have experienced a violation of the Fair Housing Act can contact one or more of the following organizations: HUD s Office of Fair Housing and Opportunity (FHEO); The Idaho Housing and Finance Association (IHFA); The Idaho Department of Finance (for mortgage lender and broker related complaints); 2 The Intermountain Fair Housing Council (IFHC); Idaho Legal Aid; and The Idaho Human Rights Commission. 1 2 This is a very general description of the Fair Housing Act and the actions and properties covered by the Act. For more detailed information on the Fair Housing Act, please see the full text, which can be found on the U.S. Department of Justice s website, The Idaho Residential Mortgage Practices Act (IRMPA) charges the Idaho Department of Finance with the responsibility for licensing and regulating the mortgage related activities of mortgage lenders and mortgage brokers, mortgage loan modification companies, independent contractor mortgage loan processors and mortgage underwriters and mortgage loan originators. See BBC RESEARCH & CONSULTING SECTION III, PAGE 1

67 Legal Aid and the Idaho Human Rights Commission refer residents who call about fair housing complaints directly to HUD. Similarly, IHFA does not enforce fair housing law and refers complaints or questions to the appropriate service provider. The City of Boise recently developed a Fair Housing Campaign Good Neighbors + Fair Housing = Strong Communities which includes a toll free, statewide fair housing hotline through the service. Boise has also (co-sponsorship from IHFA) created the only Idaho-based online resource dedicated to providing practical informational resources and promoting awareness through respectful collaboration and cooperation among all stakeholders. HUD complaint investigation process. Housing discrimination complaints filed with HUD may be done online at ( toll free at , or by contacting the Office of Fair Housing and Equal Opportunity in Washington D.C. or Idaho s Fair Housing Hub located in Seattle, Washington. When HUD receives a complaint, HUD will notify the person who filed the complaint and will normally notify the alleged violator and allow that person to submit a response. The complaint will be investigated to determine whether there has been a violation of the Fair Housing Act. A complaint may be resolved in a number of ways. First, HUD will try to reach an agreement between the two parties involved. A conciliation agreement must protect the filer of the complaint and public interest. If an agreement is signed, HUD will take no further action unless the agreement has been breached. HUD will then recommend that the Attorney General file suit. If HUD has determined that a state or local agency has the same housing powers ( substantial equivalency ) as HUD, they will refer the complaint to that agency and will notify the complainant of the referral. The agency must begin work on the complaint within 30 days or HUD may take it back. If, during the investigation, review, and legal process, HUD finds that discrimination has occurred, the case will be heard in an administrative hearing within 120 days, unless either party prefers the case to be heard in Federal district court. The State of Idaho and Boise do not currently have substantial equivalency nor are they seeking such. HUD complaint trends. BBC obtained data from HUD s Seattle Regional Office of Fair Housing and Equal Opportunity (FHEO) on the number of housing discrimination complaints filed in Boise from 2005 through Figure III-1 presents complaints by year. During the five year period, 108 complaints were filed. The largest number of annual complaints was 27 in Only three complaints were filed in PAGE 2, SECTION III BBC RESEARCH & CONSULTING

68 Figure III-1. Fair Housing Complaints Filed with HUD, City of Boise, 2005 to 2010 Source: HUD. Number of Complaints Sixty-eight percent (or 73 complaints) of the 108 complaints filed in Boise cited discrimination based on disability status. Discrimination based on national origin (15% or 16 complaints), sex (12% or 13 complaints), religion (12%, also 13 complaints) and familial status (10% or 11 complaints) were also cited in Boise fair housing complaints, but to a much lesser degree than disability status. 3 The most common violation cited in complaints was failure to make reasonable accommodations. 4 Twenty-four percent of complaints cited discriminatory terms, conditions, privileges of services and facilities, which is often related to complaints on the basis of disability. 3 4 Complainants are allowed to cite more than one basis for discrimination when filing a complaint. For example, a complainant may cite discrimination based on national origin and religion. Complainants are allowed to cite more than one reason for discrimination when filing a complaint. For example, a complainant may cite discriminatory terms, conditions, privileges of services and facilities, as well as discrimination in terms/conditions/privileges relating to rental. BBC RESEARCH & CONSULTING SECTION III, PAGE 3

69 Figure III-2. Issues Cited in Complaints, City of Boise, 2005 to 2010 Failure to make reasonable accommodation Discriminatory terms, conditions, privileges, of services and facilities Discrimination in terms/conditions/ privileges relating to rental 24.1% 24.1% 40.7% Source: Discriminatory refusal to rent 23.1% HUD. Discriminatory acts under Section 818 (coersion) 12.0% Failure to permit reasonable modification 7.4% Discrimination in terms/conditions/ privileges relating to sale Otherwise deny or make housing available Discriminatory advertising, statements and notices Non-compliance with design/ construction requirements Other discriminatory acts 3.7% 2.8% 2.8% 1.9% 1.9% Refusal to provide insurance 0.9% Steering Other-non-compliance with design and construction requirements Failure to provide accessible and usable public and common user areas Discriminatory refusal to sell Using ordinances to discriminate in zoning and land use False denial or representation of availability Discrimination in services and facilities relating to rental 0.9% 0.9% 0.9% 0.9% 0.9% 0.9% 0.9% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 100% 50% PAGE 4, SECTION III BBC RESEARCH & CONSULTING

70 Of the 108 cases filed in Boise, 96 cases were closed. The largest proportion of cases (43%) was closed after HUD found no reasonable cause to believe that housing discrimination occurred. 5 Twentyfive percent of complaints closed following a successful conciliation or settlement. Figure III-3 summarizes the closure type for Boise s recent fair housing complaints. Figure III-3. Fair Housing Complaint Closure Type, City of Boise, 2005 to 2010 Source: No cause determination Conciliation/settlement successful Complaint withdrawn by complainant without resolution 14.6% 25.0% 42.7% HUD. Compaint withdrawn after resolution 8.3% Complainant failed to cooperate 4.2% Unable to locate complainant 4.2% Dismissed for lack of jurisdiction 1.0% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% Figure III-4 compares the number of complaints filed with population by county. Complaint data are borrowed from the State of Idaho AI and include complaints filed between January 2006 and October During that time, 123 complaints were filed in Ada County many of which were filed in Boise which represents 35 percent of the all complaints filed in the state. Ada County s population represents 25 percent of the state s total population. Ada County has a higher rate of complaints per capita than the other large counties in the state, including Canyon, Kootenai and Bonneville. 5 For a definition of no cause determination, please visit: BBC RESEARCH & CONSULTING SECTION III, PAGE 5

71 Figure III-4. Fair Housing Complaints and Population by County, State of Idaho, 2006 to 2009 County Total Complaints Population Population per Complaint continued Total Complaints Population Population per Complaint Bonner 2 40,877 20,439 Adams 0 3,976 0 Canyon ,923 12,595 Bear Lake 0 5,986 0 Madison 3 37,536 12,512 Boundary 0 10,972 0 Owyhee 1 11,526 11,526 Butte 0 2,891 0 Blaine 2 21,376 10,688 Camas 0 1,117 0 Washington 1 10,198 10,198 Caribou 0 6,963 0 Minidoka 2 20,069 10,035 Cassia 0 22,952 0 Benewah 1 9,285 9,285 Custer 0 4,368 0 Clearwater 1 8,761 8,761 Franklin 0 12,786 0 Bingham 7 45,607 6,515 Fremont 0 13,242 0 Elmore 5 27,038 5,408 Gem 0 16,719 0 Bonneville ,234 4,964 Jefferson 0 26,140 0 Nez Perce 8 39,265 4,908 Jerome 0 22,374 0 Banncok 20 82,839 4,142 Lemhi 0 7,934 0 Gooding 4 15,464 3,866 Lewis 0 3,821 0 Latah 10 37,244 3,724 Lincoln 0 5,208 0 Kootenai ,494 3,645 Oneida 0 4,286 0 Twin Falls 23 77,230 3,358 Payette 0 22,623 0 Valley 3 9,862 3,287 Power 0 7,817 0 Ada ,365 3,190 Shoshone 0 12,765 0 Clark Teton 0 10,170 0 Idaho 18 16, Idaho 343 1,567,580 4,570 Boise 34 7, Source: HUD and 2010 Census. IFHC complaint process and testing. The Intermountain Fair Housing Council (IFHC) is a nonprofit organization that promotes fair housing practice for housing consumers and housing providers throughout Idaho. 6 The IFHC is involved in fair housing education, compliance monitoring, enforcement activities (e.g., complaint investigation, testing, complaint filing) and mediation. When IFHC receives a complaint, they collect all information from the complainant that supports the complaint (e.g. doctor note) and determine whether the complaint meets four important factors to determine whether a complaint is valid: The complaint occurred within the last year; The action seemed to occur because the person fell within a protected class; The individual that committed the potential violation is subject to Fair Housing Act; and The complaint appears to be a prohibitive activity. 6 For more information on the Intermountain Fair Housing Council, please visit: PAGE 6, SECTION III BBC RESEARCH & CONSULTING

72 If the complaint requires additional facts to prove its validity, IFHC will conduct extra research and investigation (e.g., testing, check property tax records with the Assessor s office, gather additional documentation). Once sufficient information has been gathered, IFHC will advise the client on next steps. Next steps could include calling HUD directly to file a complaint by phone or IFHC staff can help individuals fill out complaint forms to ensure the complaint has strong documentation. IFHC faxes the complaint directly to HUD and also sends the complaint via registered mail. If IFHC has invested sufficient administrative resources into the complaint filing, they co-file a complaint. IFHC believes co-filing demonstrates to FHEO that there is strong merit to the case. IFHC is funded under HUD s Fair Housing Initiative Program (FHIP) to complete 130 fair housing tests per year within the State of Idaho over an 18 month period. Approximately 50 of the 130 tests are administered within the City of Boise and Ada County. IFHC estimates that approximately 60 percent of fair housing testing in Boise and Ada County reveal fair housing discrimination. IFHC estimates finding discrimination in 50 percent of tests for familial status; 60 percent of tests on the basis of disability; and 50 percent of tests on the basis of national origin. Legal Cases As part of the fair housing analysis, legal cases occurring in the past ten years were reviewed to determine significant fair housing issues and trends in Boise and the surrounding area. Cases were found on websites maintained by the Department of Justice, the National Fair Housing Advocate and HUD. In many cases, text was borrowed directly from the legal briefs. An analysis of statewide complaints completed by BBC in summer 2011 found that the vast majority of fair housing legal cases in the State of Idaho occurred in Ada County and were related to developers, builders, engineers and/or architects failing to comply with the accessibility requirements of the federal Fair Housing Act and the Americans with Disabilities Act (ADA). Disability. United States v. Canal Street Apartments, et al. In 1998, the IFHC filed a complaint with HUD alleging that the Canal Street Apartments located in Boise, Idaho frustrated the IFHC s mission of eliminating discrimination by failing to construct and design the complex so that the public use and common use portions are readily accessible to and usable by individuals with disabilities and ground floor units contain features of adaptive design. 7 Upon finding reasonable cause for discrimination based on disability, HUD referred the case to the DOJ. In September 2002, the court filed a consent decree requiring the defendants to retrofit the ground floor units and public and common areas to make them accessible to persons with disabilities; submit to periodic inspections and record-keeping; and pay $3,300 in monetary damages to IFHC, $5,000 to the Accessibility Improvement Program (AIP) of the Idaho Housing and Finance Association to promote 7 In this case, adaptive design included: (i) doors sufficiently wide to allow passage into and within the unit by persons in wheelchairs; specifically including: doors to the bedrooms; doors to the bathrooms; doors to the walk-in closets; doors to the patio; (ii) threshold at the exterior primary entrance low enough to allow entry by persons in wheelchairs; (iii) bathroom floor space sufficiently clear for an individual in a wheelchair to enter and close the door; (iv) providing reinforcement in the walls at the tub and water closet to permit the later installation of grab bars. BBC RESEARCH & CONSULTING SECTION III, PAGE 7

73 handicap accessible housing construction and fair housing in the City of Boise and Ada County area, and a $6,500 civil penalty. The five-year consent order also requires the defendants notify HUD if they again design or construct multifamily dwellings and provide a written statement from any architect involved with the project that the plans include design specifications that comply with the requirements of FHA Accessibility Guidelines. United States v. Pacific Northwest Electric, Inc., et al. In January, 2001 the United States filed a complaint alleging that the defendants developers Walter T. Sigmont and Wirt Edmonds, Pacific Northwest Electric, Inc., Edmonds Construction Co., Inc., and architects Teal Whitworth Architects, P.A. and Capstone, Inc. located in Boise, Idaho discriminated on the basis of disability by failing to design and construct five Boise apartment complexes in accordance with the FHA s accessibility requirements for new multifamily housing. The five Boise complexes that were the subject of the suit are Grayling Place, Jade Village, Imperial Court, Eagleson Park and Harborview Station (formerly known as Lawton Apartments). Specifically, the defendants failed to design the apartment complexes so that the public and common areas are readily accessible to and usable by individuals with disabilities; all doors within the 72 ground floor units are sufficiently wide to allow passage by persons with disabilities who use wheelchairs; and the 72 ground floor units contain the features of adaptive design. 8 In October, 2003, the court entered a consent decree, which required the defendants to retrofit the complexes by, among other things: removing steps; reconfiguring kitchens and bathrooms to provide added maneuvering space; widening doorways; leveling sidewalks; and adding accessible parking and curb ramps at an estimated cost of approximately $300,000. In addition, the defendants were required to pay damages in the amount of $29,000 to persons harmed by the lack of accessible features at the complexes, pay $5,000 in damages to the IFHC, and ensure that any new construction complies with the FHA. The consent decree remained in effect for two years. United States v. Thomas Development Co., et al. In February, 2002 the United States filed a complaint alleging that Thompson Development Co. and affiliated companies (defendants) engaged in a pattern or practice of discrimination on the basis of disability by failing to design and construct the ground floor units and public /common use areas in compliance with the accessibility requirements of the FHA. The defendants were alleged to commit these violations at 17 apartment complexes located throughout Southern Idaho in the cities of Boise, Meridian, Nampa, Shelly, Rexburg, Caldwell, Rigby, Lewiston and Jerome. The complaint also alleged that some of the defendants retaliated against a tenant family at one of the complexes by attempting to evict the family after one of the family members requested a reasonable accommodation for their disability. In March, 2005, the court entered a consent order, which included injunctive relief and monetary payments totaling $125,000. The consent order remained in effect for three years. Garcia v. Brockway. In May 2003, Noll Garcia (plaintiff) filed a complaint against the original owner/developer and designer of his apartment building in Boise, Idaho. The complaint alleged a failure to accommodate disabilities as mandated by the FHA. Mr. Garcia is disabled and uses a wheelchair for mobility and filed a complaint because the apartment complex he was lacked curb cuts from the parking lot to the sidewalk, didn't have a ramp to the front entrance door, and the doorways 8 See footnote 2 for qualifications of adaptive design. PAGE 8, SECTION III BBC RESEARCH & CONSULTING

74 were too narrow to allow clear passage of his wheelchair. Mr. Garcia requested that management make appropriate accessibility improvements, which were ignored, as was his request that management build a ramp to his door or that he be relocated to a more accessible unit. In addition, Mr. Garcia sued the original builder and architect (Brockway and Robert Stewart, respectively), and the current owners and management (the Zavoshy defendants). The defendants (Brockway and Stewart) argued that because they no longer owned the building (which they sold in 1994), their liability was time-barred by the statute of limitations in the FHA. Thus, the plaintiff s complaint would have had to been filed within two years following construction of the apartment building in The plaintiff countered, arguing that the failure to remodel the apartments constituted a continuing violation and that the statute of limitations take effect upon discovery of the alleged violations. Mr. Garcia also claimed that failure to make modifications constituted new violations. The court ruled that the continuing accessibility issues were an effect of a prior discriminatory act but not a continuing violation. The argument that the two-year statute of limitations should begin at discovery of a violation was deemed unworkable, as a developer would be liable for these violations indefinitely in spite of his or her ownership of the complex. Finally, the original developer was not found to be liable for refusal to make modifications while current management company was at fault. The defendant still had a remedy under the FHA with building owners, but his motion against the developers was dismissed. Claims against the current owners and management were settled out of court. United States v. S-16 Limited Partnership, et al. In April, 2003, the United States filed a complaint alleging that the owners and developers of the 254-unit Village at Columbia apartment complex in Boise, Idaho and the architects and engineering firm involved in its design failed to design and construct the complex in compliance with the accessibility requirements of the FHA. Specifically, the defendants failed to design the apartment complexes so that the public and common areas are readily accessible to and usable by individuals with disabilities; all doors within the 76 ground floor units are sufficiently wide to allow passage by persons with disabilities who use wheelchairs; and the 76 ground floor units contain the features of adaptive design. 9 In March, 2005, the court entered the consent order requiring the defendants to retrofit the common use areas of the complex and 76 ground-floor apartments. The order also required defendants to pay $2,000 in damages to the IFHC, the original HUD complainant in the case, and to establish a fund of $40,000 to compensate victims of defendants discriminatory practices. In addition, the order included a general injunction against future discrimination; a requirement that defendants inform HUD of future development and design work in which they become involved and obtain statements that design plans comply with the FHA; a mandate that defendants require all supervisory employees and agents to participate in fair housing training and certify that they have read the order; post signs describing their policy of nondiscrimination in housing; and meet reporting and record-keeping obligations. The consent order remained in effect for three years. 9 See footnote 2 for qualifications of adaptive design. BBC RESEARCH & CONSULTING SECTION III, PAGE 9

75 Familial status. United States v. Blue Meadows Apartments, et al. In July, 1995 Blue Meadows Limited Partnership, the owner of Blue Meadows Apartments in Boise, Idaho (defendant) stated, adopted, and enforced a policy that imposed a limitation on the use of facilities by persons under the age of 18 years. Specifically, those rules required all occupants under the age of 18 years to be supervised whenever they were outside of their apartments; the rules also prohibited all people under the age of 18 years from using or occupying any of the common areas after 10 p.m., irrespective of adult or parental supervision. Defendants incorporated these rules into an addendum to the lease that tenants were required to sign. Several residents of Blue Meadows that had children under the age of 18 filed complaints with HUD in 1999 and Upon finding reason for discrimination based on family status HUD referred the case to the DOJ for resolution. In September, 2002, the court entered a consent decree where the defendants agreed to delete the current restriction on persons under 17 from using the pool unless accompanied by a parent; limit any future age restrictions governing unaccompanied children using the pool to those under age 13; and refrain from instituting any other rules that restrict the use of common areas at by persons under 18, except those that apply to all persons, regardless of age. Defendants were also required to pay one of the plaintiffs $1,200 in damages. Religion. Community House, Inc. v. City of Boise. This case was brought by a nonprofit corporation, Community House, Inc. and other individual plaintiffs. This case involves the lease and sale of a building owned by the City of Boise that had previously been leased and operated as a homeless shelter by Community House, Inc. In 2004, the City of Boise assumed the daily operations of the shelter until it could transfer the services that were being provided to homeless individuals to private entities. In 2005, the City of Boise negotiated a lease with an option to purchase the facility with the Boise Rescue Mission, a private religious organization. Plaintiffs contend that the lease and sale of the building by the City of Boise to the Boise Rescue Mission violated the Fair Housing Act and the Establishment Clause of the First Amendment to the United States Constitution, because Boise Rescue Mission would be operating the facility as a men-only shelter and was a religious organization. Plaintiffs contend that the lease and eventual sale of the building discriminates against them and resulted in the denial of housing on the basis of gender or familial status, in violation of the Fair Housing Act. The City denies its decision to lease and sell the building to the Boise Rescue Mission violated either the Fair Housing Act or the Establishment Clause of the First Amendment. The City further contends that the decision to lease the building was not discriminatory. Trial is set to begin in federal court in late August, Intermountain Fair Housing Council v. Boise Rescue Mission Ministries. The Rescue Mission is an Idaho nonprofit funded through charitable donations from businesses, churches and the general public. The Rescue Mission operates two facilities in Boise. There were recently two cases filed against the Rescue Mission on the basis of religion. Case #1: Plaintiff Richard Chinn was periodically homeless during the years 2005 and 2006 and a guest of the homeless shelter located at the River of Life Facility. During his stays at the shelter, he had no other place to stay and intended to remain in the shelter in excess of several months. Chinn asserts that he was told by shelter staff that he would be required to participate PAGE 10, SECTION III BBC RESEARCH & CONSULTING

76 in Christian religious activities such as chapel services in order to reside and eat meals at the shelter. He observed that guests of the shelter who did not attend chapel services were either required to wait in the dining room or were not permitted to enter the shelter until chapel services were completed. Chinn found the practices of the shelter to be coercive, unpleasant, embarrassing, and offensive to his religion. He did, however, participate in the religious services out of fear that if he did not participate, he would be denied housing and other services. Case #2: In addition to the homeless shelter, the Rescue Mission also provides a New Life Discipleship/Recovery Program, which is an intensive, one-year Christian-based residential recovery program for individuals with drug or alcohol dependency. In October 2005, Plaintiff Cowles was in jail on drug-related criminal convictions. Cowles contacted the Rescue Mission and requested that she be admitted into the Discipleship Program, stating that she was "focused on changing my life through God and spiritual growth," and that she is "desperately looking to fill this void in my life with spirituality and not drugs. Following admittance to the program, Cowles was required to participate in religious activities Cowles was upset at being forced to adopt the Christian religion. When Cowles requested that she be allowed to change to a nonreligious program, she was put on "30-day restriction" during which all her telephone calls with her attorney were monitored by Program staff and she was not allowed to participate in other limited activities that she previously had been allowed. Eventually, Discipleship Program staff wrote a letter to the judge presiding over Cowles' criminal case and informed the judge that Cowles "struggled with the Christian based program that was offered." Staff recommended to the judge that Cowles be given an opportunity to complete a non-faith-based program to allow her to "better focus on her recovery without the confliction of her beliefs." Both cases were resolved recently in appellate court. The court found that since the Boise Rescue Mission is not a dwelling, it is not subject to the requirements of the Fair Housing Act. The court also concluded that the religious practice requirements are protected by the Free Exercise Clause of the First Amendment. Fair Lending Analysis This section analyzes fair lending conditions in the City of Boise using residential mortgage lending data from 2009 (the latest data available at the time this report was prepared). Community Reinvestment Act (CRA) ratings and Home Mortgage Disclosure Act (HMDA) data are commonly used in AIs to examine fair lending practices within a jurisdiction. As of 2004, HMDA data contain interest rates of high cost loans, which allows an analysis of high cost (subprime) lending patterns. CRA review. The CRA requires that financial institutions progressively seek to enhance community development within the area they serve. On a regular basis, financial institutions submit information about mortgage loan applications as well as materials documenting their community development actively. The records are reviewed to determine if the institution satisfied CRA requirements. The assessment includes a review of records as related to the following: Commitment to evaluating and servicing community credit needs; Offering and marketing various credit programs; Record of opening and closing of offices; Discrimination and other illegal credit practices; and BBC RESEARCH & CONSULTING SECTION III, PAGE 11

77 Community development initiatives. The data are evaluated and a rating for each institution is determined. Ratings for institutions range from substantial noncompliance in meeting credit needs to an outstanding record of meeting community needs. There are four banks with headquarters in Boise: Idaho Baking Company, Idaho Trust Bank, Syringa Bank and Western Capital Bank. All four banks received a satisfactory CRA rating within the last five years. HMDA data analysis. HMDA data are widely used to detect evidence of discrimination in mortgage lending. In fact, concern about discriminatory lending practices in the 1970s led to the requirement for financial institutions to collect and report HMDA data. The variables contained in the HMDA dataset have expanded over time, allowing for more comprehensive analyses and better results. However, despite expansions in the data reported, HMDA analyses remain limited because of the information that is not reported. As such, studies of lending disparities that use HMDA data carry a similar caveat: HMDA data can be used to determine disparities in loan originations and interest rates among borrowers of different races, ethnicities, genders, and location of the property they hope to own. The data can also be used to explain many of the reasons for any lending disparities (e.g., poor credit history). Yet HMDA data do not contain all of the factors that are evaluated by lending institutions when they decide to make a loan to a borrower. Basically, the data provide a lot of information about the lending decision but not all of the information. Since 2004, HMDA data include the interest rates on higher-priced mortgage loans. This allows examinations of disparities in high-cost, including subprime, loans among different racial and ethnic groups. It is important to remember that subprime loans are not always predatory or suggest fair lending issues, and that the numerous factors that can make a loan predatory are not adequately represented in available data. Therefore, actual predatory practices cannot be identified through HMDA data analysis. However, the data analysis can be used to identify where additional scrutiny is warranted, and how public education and outreach efforts should be targeted. HMDA data report several types of loans. These include loans used to purchase homes, loans to make home improvements and refinancing of existing mortgage loans, as defined below. Home purchase loan. A home purchase loan is any loan secured by and made for the purpose of purchasing a housing unit. Home improvement loan. A home improvement loan is used, at least in part, for repairing, rehabilitating, remodeling, or improving a housing unit or the real property on which the unit is located. Refinancing. Refinancing is any dwelling-secured loan that replaces and satisfies another dwelling-secured loan to the same borrower. The purpose for which a loan is refinanced is not relevant for HMDA purposes. The HMDA data are separated into two primary loan categories: conventional loans and governmentguaranteed loans. Government-guaranteed loans are those insured by the Federal Housing Administration and the Veterans Administration. PAGE 12, SECTION III BBC RESEARCH & CONSULTING

78 This section uses the analysis of 2009 HMDA data to examine: The geographic areas in Boise where high-cost lending and loan denials are concentrated, and the correlation of these areas with concentrations of minority and low income households; and Disparities in high-cost lending and loan denials across different racial and ethnic groups. Methodology notes. There are two important methodological notes to highlight as part of this HMDA analysis: Only loan applications for owner-occupied properties are analyzed. Loan applications are analyzed at the Census tract level. Aggregating Census tract data to jurisdictional boundaries may result in loan applications outside jurisdictional boundaries being included in community-level analysis. Types of loans. In 2009, there were approximately 13,800 loan applications filed in the City of Boise. Figure III-5 presents the distribution of loan applications by the types of loans applicants applied for in Most loans in the city were for conventional loans (73% or 10,092 loans). Figure III-5. Types of Loan Applications, City of Boise, 2009 Note: Less than 1 percent of loan applications were for FSA or Rural Housing loans. These loans are not included in this Figure. The percentages in this Figure will not add to 100 percent. FHA-Insured (22%) VAguaranteed (4%) Source: Home Mortgage Disclosure Act, Conventional (73%) Purpose of loan applications. When Boise residents applied for mortgage loans in 2009, most applied for a mortgage refinance (73%). An additional 23 percent of applicants applied for a loan to purchase a home. The remaining 4 percent of applicants applied for home improvement loans. This distribution closely resembles the purpose of loan applications for the State of Idaho overall. Figure III-6. Purpose of Loan Applications, City of Boise, 2009 Source: Home Mortgage Disclosure Act, Home Purchase (23%) Home Improvement (4%) Refinancing (73%) BBC RESEARCH & CONSULTING SECTION III, PAGE 13

79 Action taken on loan applications. Sixty-one percent of loan applications submitted by Boise residents in 2009 originated, while 18 percent were denied. The State of Idaho had a slightly higher denial rate than Boise at 21 percent. Figure III-7 compares the action taken on loan applications in Boise with the state. Figure III-7. Action Taken on Loan Applications, City of Boise, 2009 Source: Home Mortgage Disclosure Act, Boise Idaho Loan Originated 61% 57% Application approved but not accepted 8% 7% Application denied by financial institution 18% 21% Application withdrawn by applicant 11% 12% File closed for incompleteness 2% 2% Figure III-8 compares loan outcome by loan purpose. Home purchase loans had the lowest denial rate (11%). Applications for mortgage refinances were denied 19 percent of the time and, home improvement loans, 28 percent of the time. Figure III-8. Action Taken on Loan Applications by Loan Purpose, City of Boise, 2009 Source: Home Mortgage Disclosure Act, % 90% 80% 70% 60% 50% 40% 30% 20% 9% 11% 4% 74% 1% 11% 28% 11% 49% 2% 11% 19% 9% 58% 2% File closed for incompleteness Application withdrawn by applicant Application denied by financial institution Application approved but not accepted 10% Loan originated 0% Home Purchase Home Improvement Refinancing Denial rates by race and ethnicity. When applicants identified their race and ethnicity as part of their mortgage application, they most often identified themselves as racially white (97%) and ethnically non-hispanic (97%). Figure III-9 presents loan outcomes by race and ethnicity. Denial rates were highest for applicants who were American Indian/Alaska Native (29%), Black/African American (24%) and Hispanic (23%). As the last part of Figure III-9 shows, the most extreme disparity in lending occurs between African Americans and Whites: White applicants had loan origination rates that were 16 percentage points higher than African American applicants. Similarly, African American applicants had denial rates that were 7 percentage points higher than White applicants. Disparities between Hispanics and Whites were not as pronounced. It is interesting to note Asian/White disparities, which are rare (Asian applicants usually have better loan origination rates than do Whites). PAGE 14, SECTION III BBC RESEARCH & CONSULTING

80 Figure III-9. Action Taken on Loan Applications by Race and Ethnicity, City of Boise, 2009 Percent of Loans Loan Originated Application Application approved denied by Application File but not financial withdrawn closed for accepted institution by applicant incompleteness Race American Indian or Alaska Native 0% 51% 5% 29% 16% 0% Asian 2% 58% 7% 19% 14% 2% Black or African American 1% 47% 9% 24% 15% 5% Native Hawaiian or Other 0% 64% 5% 17% 12% 2% White 97% 63% 8% 17% 10% 2% Ethnicity Hispanic or Latino 3% 55% 7% 23% 12% 3% Not Hispanic or Latino 97% 63% 8% 17% 10% 2% Racial and Ethnic differences between... Asian/White -5% -1% 2% 4% 0% African American/White -16% 1% 7% 5% 3% Hispanic/Non-Hispanic -7% -1% 6% 2% 1% Note: Nine percent of applicants did not identify their race and 9 percent did not identify their ethnicity in their loan application. This analysis sonly includes applicants that identified their race and ethnicity. Source: Home Mortgage Disclosure Act, Racial and ethnic denial rate disparities were higher in the state overall than in Boise. For example, loan applications submitted by Hispanics in Idaho were denied 29 percent of the time, compared with a 20 percent denial rate for non-hispanics. The difference in denial rates statewide between African Americans and Whites was 11 percent, compared to 7 percent in Boise. Denial rate by race/ethnicity by census tract. A further examination of loan approvals by race/ethnicity is provided in the maps that follow. Figures III-10 and III-11 overlay Census tracts containing loan denial rates above the city s 18 percent denial rate with the city s racial and ethnic concentrations. The maps do not suggest a correlation between high denial rates and racial and ethnic concentrations, as areas with higher than average denial rates extend throughout the city. BBC RESEARCH & CONSULTING SECTION III, PAGE 15

81 Figure III-10. Census Tracts with Higher than City-Wide Average Denials by Percent Non-White, City of Boise 2009 Note: The denial rate for all loans in the city overall was 18 percent. Source: Home Mortgage Disclosure Act (HMDA), 2009 and 2010 Census. Figure III-11. Census Tracts with Higher than City-Wide Average Denials by Percent Hispanic, City of Boise, 2009 Note: The denial rate for all loans in the city overall was 18 percent. Source: Home Mortgage Disclosure Act (HMDA), 2009 and 2010 Census. PAGE 16, SECTION III BBC RESEARCH & CONSULTING