Item 6- Equity Overlay Working Group Recommendation — original pdf

Backup

Equity-Overlay Recommendation Whereas the community has demonstrated strong support for the Equity Overlay, with 34 organizations and 12 neighborhood associations, 146 community leaders & advocates that signed on in support showing up or writing into council in favor of the initiative; Whereas on May 16, 2024, the Austin City Council passed Council Member José Velásquez’ amendment, directing the City Manager to look into the feasibility of adding an Equity Overlay to protect vulnerable neighborhoods from displacement and gentrification; Whereas at the same May 16, 2024 meeting, the Austin City Council passed Council Member Vanessa Fuentes’ amendment calling for a 6 month delay in the implementation of the HOME Initiative Phase II in areas currently experiencing or prone to displacement; Whereas the Affordability Impact Statement released by the City of Austin Housing Department Staff states that “market driven solutions could cause the same dynamics that play out today” and “parties with more resources may take advantage of the new regulatory landscape, while those with fewest resources experience an increase in precarity.” Whereas per CM Fuentes’ amendment which provides a 6 month delay for the equity overlay, the Austin City Council expects a report on their directive by November 16, 2024; Whereas on October 8th, at the Community Development Commission meeting, Interim Director of Housing, Mandy DeMayo, informed the commission, CPATX, and the audience that research has not started and staff has not yet contracted with a consultant to work on this directive; Whereas at this same October 8th CDC Meeting, Community Powered ATX has expressed concerns regarding the insufficient timeline and resources allocated for the study; the current timeline of three weeks before the council vote as inadequate for conducting a thorough and effective study; and a lack of communication and progress updates regarding the study; and Therefore, be it resolved that the Community Development Commission urges the Austin City Council to extend the feasibility research period for the Equity Overlay and delay implementation of the HOME Initiative Phase II by an additional 6 months. Be It Further Resolved, the Community Development Commission advises the Austin City Council to allocate additional resources to city staff to support the study and ensure a comprehensive and informed evaluation. This evaluation should include hosting housing forums with frontline service providers and organizations in the Eastern Crescent and other areas most at risk of displacement as identified in the Equity Overlay. Furthermore, it should provide recommendations for zoning changes, protections, tools, and targeted investments to protect and preserve existing affordable housing in these vulnerable communities.