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Basis of Recommendation Eugene is the only city in Oregon that has a dispersal policy. Additionally, staff has been unable to locate a similar policy in any United States city. Nevertheless, the concept of housing dispersal has merit and it can and should be retained by placing it in the adopted Consolidated Plan. The Consolidated Plan is approved by City Council and submitted to HUD. With language in the plan, its impact will be subject to review every five years. Repeal of the current free-standing policy is recommended for the following reasons: Reasons to Repeal Poficy 1 (Locational Limitation) · When the Dispersal Policy was created there were very few assisted housing units and there was not any significant dispersal throughout Eugene. Now, subsidized housing is located throughout the community. Furthermore, partially due to recent acquisitions from the school district, the City has a significant supply of landbanked sites for future housing, spread out in a variety of neighborhoods. · The need for low-income housing is acute and the land supply is limited. All opportunities to create new low-income housing should be on the table for examination. Dispersal Policy 1 limits site choice, and prevents the use of some of the most affordable sites. · Federal Low-Income Housing Tax Credits are a critical funding source for many subsidized housing projects. Due to changes in the 2000 census, most of Eugene is not eligible for increased funding. Ironically, the very areas that could get the substantial (33%) funding bonus are the areas excluded by the Housing Dispersal Policy. · The Housing Policy Board (HPB) includes three elected officials and provides an adequate filter to examine developments and their locations, and make recommendations prior to the allocation of subsidies. Most subsidies are offered after a Request for Proposal (RFP) process, which offers ample opportunities for evaluation. The Housing Dispersal Policy was adopted before either the HPB or the RFP process was created. In fact, the policy was adopted at a time when most affordable housing development was done by the federal government, with little City support. Now, little or no affordable housing for very low-income families is built without City assistance and HPB support. · The 1968 Community Goals Plan, adopted by the City Council, first proposed a dispersal policy - as an aspirational goal, not a prohibition. The plan stated: "Dispersal will, inevitably, be limited by certain considerations and must be tempered by common sense." The Housing Policy Board now provides that "common sense" filter when it makes a recommendation to the City Council for final action. · New low-income housing has proven to be an asset to its neighborhood when properly constructed and well maintained. HPB-supported projects historically are well-designed, constructed, maintained, and managed. Based on experience, new affordable housing developments enhance their neighborhoods. · The policy conflicts with other City goals that encourage greater density, especially in city-center neighborhoods. L:\CMO\2005 Council Agendas\M050110\S0501103C.doc