Item C: Ordinance on MUPTE - Laserfiche WebLink

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Issues raised by City Councilors in October and November 2007 Because new multi-family housing is not occurring in west Eugene and low-income housing is limited by the Housing Dispersal Policy, could the boundary extend to the Four Corners and Trainsong area? Response: The MUPTE boundary can be extended and a map showing this option is included as Attachment C-3. The Housing Dispersal Policy discourages City subsidy assistance for family housing thth in low-income neighborhoods. The 6, 7, and Trainsong areas are specifically impacted by the policy. Is the MUPTE tool needed in West University area and how much of a role should the City take on to encourage quality development? Are there quality standards that could be changed or added to the list? Response: West University is coming out of a long period with little rehabilitation or new construction activity. How long the period lasts depends entirely on economic factors. Appraisers acknowledge that some multi-family construction is currently economically possible without MUPTE, depending on the price paid for the land and the quality of the construction. This is evidenced by two recent developments that did not request MUPTE. In each case the land was acquired at a price well below the current market value. Appraisers also note that the overall quality of the West University neighborhood has suffered from the previous uses of inexpensive construction and the same experience may be repeated if left only to market forces. Attachment D is a proposal for new selection criteria with objective standards that include incentives for higher quality. Was the original intent of the program to promote compact urban growth and infill? Response: The state created the program through statutes and Eugene adopted the provisions as an incentive to promote higher density in the core area. The state legislation was broadened later to include areas along mass transit lines. It was created as a tool to encourage compact urban growth and growth in mass-transit corridors, in recognition that in-fill is typically more costly than “green field” development. What is the definition of “low-income housing?” Response: “Low-income” is a term that is often informally used with different meanings. HUD publishes income information for the area annually. The HUD definitions are used in a variety of adopted City documents: Extremely low-income: households with income at or below 30% of median income pay no more than 30% of their income for rent/mortgage and utilities. Very low-income: households with income at or below 50% or 60% of median income pay no more than 30% of their income for rent/mortgage and utilities. (For some subsidy programs, including the City’s federal HOME grant 60% is used. For instance, 90% of the HOME assisted units must be at 60% of median income.) Low-income/moderate-income: households with income at or below 80% of median income pay no more than 30% of their income for rent/mortgage and utilities. Z:\CMO\2008 Council Agendas\M080813\S080813C.doc