06/11/1980 Meeting - Laserfiche WebLink

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would come back to this area, it would help. It is not only the money that is an issue. Apartment construction in Eugene lags far behind the rest of the state. She feels it is either the lack of available land or the complicated regulations that cause this lag. 4It Tim Sercombe stated that some cooperatives would not be affected by some portions of the ordinance since they are regulated by the Federal government. In reference to low-income cooperatives, it is the opinion of the staff that they could not exist without Federal sub- sidies. There are Federal requirements such as warranties, engineer certificates, etc. This ordinance generally does not apply to student cooperatives, only to those converted to ownership. The ordinance also does not affect joint ownership of property. Staff feels a blanket exemption of co-ops would not be feasible. There are two basic types of cooperatives: the first is a market-share cooperative where a person would have the right to lease a housing unit from the corporation; the second is limited-equity co-ops where a person would buy in but cannot sell that share except back to the corporation. If limited-equity cooperatives are exempted, a line must be drawn. Displacement and tenant protection will still need to be considered. Staff has two options for council: 1) leave the ordinance the same; or 2) grant a partial exemption to a limited category of co-ops. There is not much experience in knowing what the results of the limited exemption would be. If there were a low-income non-equity cooperative, the staff would want that to apply only to non-profit corporations where if the corporation were dissolved, the proceeds would go to charity. There also should be no purchaser risk in this sort of situation. Staff feels that policies relating to the safety of purchasing cooperatives is the same as purchasing condominiums. e Mr. Lieual1en asked what effect elimination of the tax per unit would have on cooperatives. Mr. Sercombe responded that the tax and the permit fees would be the major impediments. There could be a different permit process for subsidized cooperatives since they would require less City staff time. Ms. Miller noted that leaving cooperatives in the ordinance and waiting until a study is done makes sense to her. This would give them some time see what costs would be involved. If a person is displaced in a cooperative, the person is still displaced; and the same policy should apply. Mr. Obie noted agreement with Ms. Miller. Mr. Delay requested response from the staff on concerns given in previous testimonies of Ms. Seal and Mr. Strong. Mr. Obie summarized council IS decision as being: 1) to accept the staff recommendations regarding deletion of the formula and use it only in an advisory capacity; 2) to eliminate the tax; and 3) to leave cooperatives in the ordinance, and to make housing a priority for the Joint Housing Committee. - 6/11/80--8