Iowa City council faces tough decisions on 'zombie' housing laws preempted by Legislature

The Iowa City Council is debating evicting some zombies from housing ordinances in the city code.

It voted unanimously on Tuesday to repeal a years-old ordinance capping the number of rental permits for single-family and duplex homes in the city. It deferred action on a second ordinance that aimed to prevent discrimination against tenants with rent subsidies.

With laws approved by the Iowa Legislature in effect, the city no longer is able to enforce those ordinances, which City Attorney Eric Goers referred to as "zombie laws." The city staff advised council members in a December meeting that they must clean up the code so it reflects what is legal and doesn't confuse residents.

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Speaking in that meeting, City Manager Geoff Fruin said he could understand the political desire to leave them on the books, but that doing so presents "practical challenges" to the city staff and residents.

"The city code is a body of work compiled over decades and decades and decades. When (city staff) research items, we have to go back and try to understand what led to the creation of code items 50, 60, 70 years ago and that's hard enough as it is," Fruin said.

"I would urge council not to make political statements in the code" by leaving state-nullified ordinances on the books, he said, warning that even if the current staff knows they can't be enforced, they could create problems for future staffers.

Despite Fruin's plea, the council, at least for now, is keeping the ordinance barring discrimination against tenants using federal Section 8 rent vouchers on the books after Council members Shawn Harmsen and Andrew Dunn said Tuesday they were uncomfortable repealing it. The two gained enough support among the other members to defer action until September.

"I don't feel comfortable (removing the law) at this time, although I realize it's just a symbolic act I wish it was more than that. But I think maybe that symbolism has some value," Harmsen said.

The Legislature's passage of laws overriding the ordinances and others like them in Iowa is a reminder that the Republican-controlled Legislature can usurp the authority of progressive-minded local governments like Iowa City's and likely will continue to do so. And elected officials throughout Johnson County are wary of potential 2023 legislation on property taxes that could limit a key revenue source for school districts, cities and counties.

But Tuesday's meeting wasn't all bad news for the City Council's goals to address Iowa City housing issues. It also unanimously supported investing $1.37 million from its American Rescue Plan Act funds and $90,000 over the next three years from its affordable housing fund in the nonprofit Shelter House. The funds would help it administer an eviction prevention and diversion program and improve housing retention through increased partnerships and support.

What did both laws do?

The ordinance the council left on the books Tuesday prohibited landlords from turning away tenants who have Section 8 vouchers. The vouchers are a federal program that gives rental housing assistance to private landlords on behalf of low-income households.

Iowa Gov. Kim Reynolds in 2021 signed a law, which took effect this Jan.1, prohibiting Iowa cities and counties from adopting and enforcing such regulations.

The ordinance the council repealed, approved in 2017, established a limit on the percentage of rental permits for single-family and duplex homes in the central area of the city in an effort to help stabilize those neighborhoods. The Legislature negated such regulations in 2019.

Goers, the city attorney, in December said the city should repeal the ordinances "so as not to leave language that is void and unenforceable in the city code which might be a trap for the unwary."

Goers referred to them as "zombie laws" since they are effectively dead but could be revived one day if the Legislature again changes state law.

Why did the state strip Iowa City's power?

The Republican lawmakers who supported preempting the anti-discriminatory Section 8 ordinances in Des Moines, Marion and Iowa City said it was a "property rights issue."

The legislation had the backing of landlord groups, who contended the federal program is meant to be optional and that it comes with too many hurdles, such as an additional inspection and more difficulties recouping the cost of damage to rental property.

It wasn't the first time the Legislature had targeted Iowa City-area local governments. An especially prominent example was its 2017 legislation to preempt Johnson County's 2015 move to boost the minimum wage within its boundaries.

The county still has the law on its books even though it is unenforceable, treating the $11.56-per-hour minimum it sought to establish as a suggestion to local businesses.

Harmsen acknowledged the logic of repealing the unenforceable ordinances, but said it "just feels wrong" to remove the Section 8 discrimination ban without having yet seen the actual impact of the state's law. He also expressed concern that the council repealing it might create the impression it is the government body allowing landlords to kick poor people out on the street.

"I do not expect (those landlords) to be the kind of people to in good faith explain who allowed this to happen, and they'd be more than happy to throw us to the wolves," he said.

Harmsen said he would feel more comfortable repealing the ordinance assuming the city doesn't have a lot of people losing their homes simply because they use Section 8, a situation he feels should be clearer by September after current leases expire.

Mayor Bruce Teague agreed he was not happy the repeal was before council but recognized the state had changed the law. Teague, who is a landlord himself, said he would vote in favor of repeal but later voted to defer the motion.

"While none of this council supports this action, I also believe that we have to uphold the law. On some levels I think there is other ways to try to help individuals in our community, but it becomes a challenge when you're talking about landlords, their desires and what the heart of this community needs, which is more affordable housing," Teague said.

George Shillcock is the Press-Citizen's local government and development reporter covering Iowa City and Johnson County. He can be reached at (319) 214-5039, GShillcock@press-citizen.com and on Twitter @ShillcockGeorge

This article originally appeared on Iowa City Press-Citizen: Council members reluctant to spike 'zombie' Iowa City housing laws