Item 3C - Housing Dispersal - Laserfiche WebLink

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Mr. Weinman stated that staff was proposing that the concept of housing dispersal had merit and it should be incorporated into the City Council adopted Consolidated Plan that was submitted to the United States Department of Housing and Urban Development (HUD). Referring to the October 4, 2004 HPB minutes, Ms. Levis observed that Ms. Cuellar and Mr. Van Landingham questioned whether the HDP was a tool to stop projects or enable projects to move forward. She added that the policy had become outdated and had been replaced with more effective tools including the HPB. She supported the elimination of the HDP as proposed by the HBP. Mr. Lawless opined that he liked the idea of keeping the spirit of the policy, and supported folding it into another policy, noting that the results of the HDP over more than 20 years had been very successful. He felt confident this was the right action. Mr. Belcher asked what was the percentage of the substantial tax credit bonus in eligible areas. Mr. Weinman said it was one third more money. In response to a question from Mr. Belcher, Mr. Weinman stated that this IRS program provided a significant tax shelter for investors involved with low-income housing. Mr. Weinman added that the State of Oregon allocated tax credits through a competitive process for projects. This creates an infusion of capital into low-income housing projects that allow for lower rent payments by tenants. In response to a question from Mr. Belcher regarding concentration of low-income housing, Mr. Weinman replied that repeal of the policy would potentially allow some housing to be built in neighborhoods such as Whiteaker and Trainsong, although there were landbanked sites all over Eugene. Mr. Weinman added that some neighborhoods would be enhanced by new investment in rental housing. Mr. Belcher said he agreed with Mr. Dopplet, a member of the HPB, that the HDP was a good policy that had served the city well, and should be retained. Anecdotally, he added that as a member of the City Club racism sub-committee, he had participated in discussions about the unfortunate leafleting that recently occurred in the Churchill neighborhood. He said some members of the sub-committee felt that the high densities of R-3/R-4 housing in the neighborhood contributed to development of those types of attitudes. He added that George Russell, Superintendent of the Eugene School District 4-J, recently spoke to the City Club regarding issues of economic segregation in the school district. Mr. Russell said it was beginning to look like unintentional segregation by race was occurring in the community. Mr. Belcher emphasized the need for the Planning Commission to seek ways to help the community remain heterogeneous. L:\CMO\2005 Council Agendas\M050110\S0501103C.doc