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ATTACHMENT B MEMO To: Eugene City Council From: John VanLandingham, chair, Housing Policy Board Date: October 27, 2004 Subject: Housing Policy Board Position Regarding Exemptions from the Proposed Eugene Rental Housing Code 1. HPB Recommendation: At its September 13, 2004, meeting, after a thorough discussion among the HPB members and our affordable housing providers, the Housing Policy Board voted to recommend to the Eugene City Council, with regard to the proposed Eugene Rental Housing Code, the following: a. That affordable housing units not be exempt from coverage of the proposed code. b. That affordable housing units be exempt from the annual fee. c. That the fee exemption language in the draft proposed ordinance be amended. 2. Fee Exemption Language: The draft proposed ordinance already includes language exempting some housing from the annual fee to be charged. The HPB recommends that the Council amend that language, as follows: "Section 8.440 (2) The following unit types, while subject to the standards, enforcement procedures, and other requirements established in sections 8.400 through 8.440 of this code, shall be exempt from the fee payment requirements: (a) Rentals with a recorded deed restriction requiring the units to be rented affordably to households at or below [50-%] 60 percent of the Area Median Income; ~,v ..................... 6 ........... a ......................... ,] an [/~l D..~I~ ~.~; .... ~.~ ...... ; .... ~;~AI.~ ~ .... ;.~ A ...... All ......... ] (b) Rentals that have been approved by the city for an exemption from property taxes pursuant to sections 2.910 to 2.922 of this code or that are recognized by the city as exempt from property taxes pursuant to ORS 307.092. 3. Why Affordable Housing Should Be Exempt from the Fee: The Corvallis model, which the draft proposed ordinance follows, makes affordable housing rental units covered by the complaint and inspection program, but exempt from the annual fee which pays for the program. The HPB, by a 4 (Cabell, Cuellar, Ralston, VanLandingham) to 2 (Hadley, Allen) vote, recommends that the Council follow Corvallis' lead on these two issues, although with revised fee exemptions. The argument for exempting affordable