Item 1: Ordinance on MUPTE Boundary

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Issues raised by City Councilors on May 27, 2008 How many developments were constructed after being denied MUPTE approval? For those constructed after being turned down, was there a significant design change? Answer: No proposed developments have been constructed after being denied a MUPTE. Two applicants that were turned down have reapplied. Both applications include design changes. How many housing units were constructed in the West University Neighborhood with and without MUPTE, since 1995? Answer: There were 299 housing units constructed in the West University Neighborhood since 1995. They are summarized below. Eight developments received MUPTE approval 177 units (59%) Six developments were too small to qualify for MUPTE (fewer than 5 units) 20 units (7%) Six developments were outside the MUPTE boundary 55 units (18%) Three developments were inside the boundary and were built without MUPTE 47 units (16%) Is the requirement to construct five units or more to qualify for MUPTE above and beyond existing units that might be removed in the process, and does a rehabilitation count as adding a unit? Answer: The MUPTE requirement for construction of five or more units is based on state statute. It does not require a net gain of five units. Therefore, it is possible, for example, to qualify by removing one unit of housing and then replacing it with five. Staff is not able to identify an instance where this has actually occurred in Eugene. A MUPTE is also possible if an existing structure that is not in housing use (such as an office building or warehouse) was rehabilitated to create five or more housing units. Eugene has not th received any applications for this type of activity. Nozama Apartments on 19 Avenue received a MUPTE for a substantial rehabilitation when buildings that were a part of the former Amazon Student Housing were relocated to the site. How does staff monitor, after the fact, the need for each project’s “but for” requirement? Once a project is approved, staff only monitors if the project is built and if it is substantially the same as what was approved. At the time a MUPTE application is submitted to the City the proposal is typically in an advanced conceptual state. The developer presents a concept, basic drawings, and a financial pro- forma, but has not submitted plans for building permits. The financial projections that are presented are reviewed by staff knowledgeable about housing finance. Under the newproposed standards, additional review would come from Eugene’s Loan Advisory Committee. Once approved by the council, the developer proceeds with investing in the more detailed design and permitting process with the knowledge that the tax exemption has made the project feasible. If the development has a substantial change in plans it would be a violation of the MUPTE approval and would need to come back to the City Council for re- approval. Examples of a substantial change would be a deviation in the number of units by more or less than 10%, or adding additional floors. Less significant changes are often inevitable during the design, building permit and inspection process. Z:\CMO\2008 Council Agendas\M080721\S0807211.doc