Agenda Packet 10-17-18 Work Session

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Attachment A Summary of 2015 MUPTE Program Changes & Process Diagram MUPTE Program MUPTE is an incentive program to encourage high quality, multi-unit downtown housing especially in areas well served by public transit. Both rental housing and multi-unit housing for home ownership are eligible; student housing is ineligible. Enabled by state law, the program provides a 10-year property tax exemption on qualified new multi-unit housing investments that occur within a specific, targeted area, that meet program requirements, and that are reviewed and approved by council. The objective strongly aligns with several of the pillars of Envision Eugene. Increasing the amount of multi-family housing in the downtown helps reduce pressure on urban growth boundary (UGB) expansion and protects existing neighborhoods, and takes advantage of existing infrastructure. During the exemption period, property owners still pay taxes on the assessed value of the land and any existing improvements on the property. Council can deem commercial portions of a project to be a public benefit and include them as part of the exemption along with the residential portion. In 2015, after a two-and-a-half year review, council revised the program criteria, process, and boundary. The program changes: • Removed student housing as an eligible project type • Increased the required energy efficiency • Required higher quality design, with design at approval attached to the resolution • Expanded neighborhood involvement • Added a moderate-income housing contribution • Added local economic impact plan • Added demonstrated project need reviewed by an independent financial consultant • Added a community member third-party review (MUPTE Review Panel described below) See below for the process diagram and boundary map. The Required Public Benefit criteria are: • Compact Urban Development • Green Building Features (ensuring building energy performance is 10% above code) • Local Economic Impact Plan (including support for local businesses, minority and women business enterprises, and ensuring compliance with laws) • Moderate-Income Housing Contribution • Project Design and Compatibility (including scale, form, and quality of the building; mixture of project elements; relationship to the street and surrounding uses; and parking and circulation) • Historic and Existing Housing Sensitivity • Project Need MUPTE Review Panel The 2015 MUPTE update established a Review Panel, tasked with providing a third-party review of individual applications for the City Manager. The Review Panel: • Reviews the project applications, including the consultant’s review of the project’s financial projections. October 17, 2018, Work Session – Item 2