Item 5: Low-Income Rental Housing Property Tax Exemption - River Road

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ECC UGENE ITY OUNCIL AIS GENDA TEM UMMARY Public Forum: Low-Income Rental Housing Property Tax Exemption – River Road Hearing Date: November 19, 2012 Agenda Item Number: 5 Department: Planning and Development Staff Contact: Becky L. Wheeler www.eugene-or.gov Contact Telephone Number: 541-682-5532 ISSUE STATEMENT This public forum is an opportunity for the public to provide comments to the City Council on a 20- year low-income rental housing property tax exemption for River Road Apartments, a $26 million development with 216 units affordable to those at or below 60 percent Area Median Income (AMI). BACKGROUND The City of Eugene uses federal and local subsidies to promote public-private partnerships that create housing affordable to low-income persons. Affordable housing developers often utilize the 20-year low-income rental housing property tax exemption and the City’s systems development charge waivers to create housing affordable to low-income residents. In October of 2012, Evergreen Housing Development Group, LLC applied for this tax exemption for a project located south of Beltline on River Road. No HOME or CDBG funds are anticipated to be used to assist in development of this project. The Eugene-Springfield 2010 Consolidated Plan presents a strategic vision for housing and community development from July 2010 to June 2015. The goals, strategies, and activities outlined in the Consolidated Plan are based on priorities identified through an analysis of community needs and an extensive community outreach process. The 2010 Consolidated Plan identified a need for affordable housing for low-income persons (those at or below 80 percent AMI) in Eugene. In turn, the City set a goal of developing 500 new units of affordable housing by June 2015. To date, 136 units have been completed in three developments. An additional 107 units are anticipated to be complete prior to 2015 as part of Bascom Village and Stellar Apartments. The addition of the proposed 216 affordable units would move the City closer to the Consolidated Plan goal. Eugene’s Housing Needs Eugene’s poverty rate is more than 19 percent, and housing costs in the Eugene-Springfield area have risen sharply over the past 20 years. In addition, there are a growing number of seniors, persons with disabilities, and others who are unable to work given the highly competitive job market. These factors, combined with a relatively tight housing market, have resulted in a large number of households with moderate or severe housing cost burdens. The cost of housing, including utility costs is generally considered to be affordable when it equals no more than 30 S:\CMO\2012 Council Agendas\M121119\S1211195.doc