06/09/1980 Meeting - Laserfiche WebLink

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Speaking against the ordinance: John Bennett, Director of Planning and Governmental Affairs, Home Builders Association of Lane County, stated the purpose of his testi- ~ mony is to ask for a two-week delay to allow for adequate review by the housing industry of an ordinance that will have a long-term effect on the variety of housing types in the city of Eugene. He feels less than one week is not enough time for a responsible public review of what has developed into a very complex ordinance with legal, social, and planning implications. The additional time would allow the industry to determine if and how the proposal can be modified to better serve the full spectrum of existing and future renters and purchasers of converted units since they are the ones that must meet the requirements of the ordinance. They also do not feel that the ordinance will, in the long run, help maintain an adequate supply of rental units due to the low return on investment and other difficulties encountered in the market for providing rentals. The only practical means now through the 1980's for building units for rent may be leaving open the option for future conversion to units for sale. Conversion of existing rental units is providing the means so that first-time home buyers can enter the owner-occupied housing market. Conversion of existing units, partic- ularly at the low rate at which it is taking place in Eugene, helped satisfy many of the stated goals of the City of Eugene and the State's LCDC Goal 10 (Housing), which strive to provide a variety of housing opportunities and, as now written, the ordinance would appear to have a negative impact on the ability to meet these stated goals. They also feel that the tax would place a burden on future purchasers of the units that. is not required of any other segment of the popula- tion seeking housing. The purchasers of converted rental units will, in effect, be subsidizing public housing programs in the city of Eugene in a way not imposed on other owner-occupied units, with their mobile home, single-family, or the recent allowed duplex ownerships. Costs incurred in complying with this ordinance will be passed onto the future purchasers who are unfortunately not identifiable as a group now and are, therefore, unaware of what this proposal will cost them at a future date. They feel the existing proposal far exceeds the needs of the city of Eugene and request more time to mold this proposal into a workable document. He added that the Delay proposal suggested this evening sounds good. - Richard Oehler, 520 Kingswood, stated he is an apartment complex owner and believes this law is completely unnecessary and counterproductive to developing more housing in Eugene. He is an investor and his living is not made from the housing industry but, rather, these funds go toward his retirement planning and estate building. The natural process of rental property is to be built, depreciated, then sold or e 6/9/80--12