Zoning

Zoning Asks (in order of priority)

• Bring existing ICC properties into zoning compliance:
  • We recommend reducing or eliminating the minimums for lot size and square footage for the Student Cooperative and Group Housing uses and for the R4C zone.
• Enable ICC expansion and densification:
  • We recommend permitting student cooperative housing in residential zones by right. This would put the ICC on a level playing field with investors and absentee landlords, as the ICC currently has to endure extra costs and delays to be allowed to provide affordable units in residential zones, by requiring a Special Exception Use permit.
  • The ICC also requests to be permitted to operate group housing in R1, R2A, and R3 zones near the University and transit hubs.
  • We also strongly encourage the City to eliminate the maximum number of unrelated people allowed to share a unit/house.
• Promote the Expansion of permanently affordable housing:
  • We recommend that City Staff investigate the University Neighborhood Overlay ordinance in Austin, Texas. This program has generated more affordable housing units (for students) than all other affordable housing programs in the City of Austin combined. It has generated millions of dollars in fees in lieu that have been used for long-term, deeply-affordable units for students.
    • Here is a briefing from December 2018 for your reference: https://services.austintexas.gov/edims/document.cfm?id=311899
    • Here is the ordinance: University Neighborhood Overlay Ordinance – https:www.austintexas.gov:edims:document.cfm?id=3062.pdf
  • We recommend investigating the Tenant Opportunity to Purchase Act (TOPA) in Washington, D.C. Since 1980, this act helped enable the establishment of cooperative housing by providing tenants the first right of refusal to purchase their residence when a landlord attempts to sell the property and requires the property to maintain perpetual affordability. TOPA enabled the preservation of 1,400 housing units between 2015 and 2018.
    • Here are TOPA process charts: https://ota.dc.gov/page/tenant-opportunity-purchase-act-topa
    • Here is a briefing on TOPA and COPA (Community Opportunity to Purchase Act): https://www.policylink.org/resources-tools/tools/all-in-cities/housing-anti-displacement/topa-copa

Zoning Asks Document

The Inter-Cooperative Council (ICC) has owned and democratically operated student cooperative housing in Ann Arbor since 1944. The ICC currently serves a maximum capacity of 559 resident-members who collectively determine the organization’s expenses and charges. Members of each house pool their resources for bulk purchases of food, toiletries, and other necessities. Central ICC charges are set at $685 (though some houses have different rates for doubles and singles) and house charges vary around $140 each month, in contrast with the median Ann Arbor market rental rate of $2,181. Scholarships for rent reduction are also available based on need. The average age of ICC properties is about 120 years old. 9 of our houses are in historic districts. Vail House is one of the oldest homes in Ann Arbor, predating the Civil War. We believe the ICC’s stewardship of these properties provides a benefit to both student affordability and the wider community.

Student Cooperatives are not permitted in any residential zones, except by Special Exception Use (SEU) in either the R2B or R4 zones. An SEU hinges development on a feasibility analysis, community input, and confidence in the financial success of the project. An exception process undermines confidence and means the ICC is unable to develop an offer for properties as quickly as other potential buyers. Additionally, to get an SEU within these zones we must adhere to the following minimum standards: 8,500 square feet of lot area, 5,000 square feet of floor area, and 350 square feet of lot area per occupant. Historically, the ICC has mainly expanded by purchasing student rental houses and renovating them to increase their maximum occupancy, however, without obtaining an SEU, we are not permitted to allow more than 6 unrelated people to live together, undermining confidence in our ability to successfully expand. Additionally, Student Cooperatives are categorized identically to Greek Life, overlooking the distinct role that the ICC plays in the community to promote social equality, affordable access to education, and furtherance of the cooperative movement. These restrictions were designed to control the expansion of group-student housing and have proven detrimental to the cause of housing affordability for students.

Of the 18 residential properties owned by the ICC, 9 are grandfathered into their neighborhoods and are noncompliant with current zoning codes. This sets hurdles to structurally alter these houses, impeding potential safety and accessibility modifications. In 2004, while unoccupied, Steven’s House burned down, we were not permitted to rebuild, and the ICC had to ultimately sell the property because the co-op usage was no longer compliant with the zoning code. The ICC has lost capacity over the past decades due to discriminatory zoning laws that prevent the ICC from adapting to modern housing markets. One of the ICC’s core principles is continuous expansion, to provide more affordable housing, but we have not successfully expanded into a compliant property since 1996. The zoning code has locked the ICC into an era of stagnation.

Zoning Outreach Document