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Capacity Method 3: Smaller LDR Parcels <br />Capacity Method 3 requires the number of vacant residential lots that fall <br />within this category of land, within the current UGB. The City's BLI <br />provides this information.58 In recognition of the fact that there are some <br />very small parcels that would need to be combined with another lot to be <br />developed with a new residential unit, the City applied a minimum lot <br />size threshold of 4,500 square feet. No capacity was attributed to lots <br />smaller than 4,500 square feet or that are fully protected or fully 30% or <br />more in slope. <br />Table 45 shows the number of vacant residential lots inside the City's <br />current UGB for land subject to Capacity Method 3. <br />Table 45. Vacant residential lots within Eugene's UGB that are subject to <br />Capacity Method 3, Eugene BLI, 2012 <br />Low Density Residential <br />< 900, > 900, <br />Slope <5% >_5 % <5% >_5% <br />Medium Density Residential High Density Residential <br />All Elevations <br />All Elevations <br /><5% >_5% <br /><5% >_5% <br />< 1 acre* 768 <br />1-5 acre <br />5+ acre <br />5 115 <br />Source: 2012 Residential Land Supply, City of Eugene, 2012 BLI Table 3 <br />Application of Capacity Method 3 also requires the City to make an <br />assumption about how densely the subject land will develop under the <br />City's current regulations, considering trends, in terms of the average <br />number of dwelling units per lot. <br />Policy language in the South Hills Study limits development on vacant <br />land 901 feet in elevation or greater to one dwelling per existing lot, but <br />allows an owner to increase densities through an approved land division <br />through the planned unit development (PUD) process. Analysis shows <br />that very few PUDs have been approved on south hills lots of less than 5 <br />acres in size. This is likely due in part to the relatively high cost of a PUD <br />and limited profit potential for the division of a lot of less than one acre. It <br />is reasonable to assume that sites less than one acre are unlikely to go <br />through a PUD land division.59 Therefore a "one house per lot" density <br />assumption is most accurate. <br />58 The number of residential parcels subject to Capacity Method 3 is documented in Part 12012 <br />Residential Land Supply. <br />59 Analysis found that in a recent development, specifically a larger development site, more than <br />one dwelling per vacant lot occurred above 900 feet. However, since 1990 only three planned unit <br />developments (PUD) have been approved less than 5 acres in size, likely due in part to the <br />relatively high cost of a PUD. <br />Page 132 ECONorthwest Part 11 — Eugene Housing Needs Analysis <br />