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48 <br /> <br />Strategy 3: Increase inventory of and access to Affordable Housing units <br />Option Key Explanation <br />20. Identify new Revenue sources for <br />Affordable housing units. <br /> <br />20-A. Shift money from the City’s <br />General Fund, which would shift <br />funding from other City services, to <br />support Affordable Housing. <br /> No local funds directly support the development of <br />Affordable housing. The City offers exemptions to <br />Affordable housing developments, for SDCs and a 20- <br />year property tax exemption. Money could be shifted <br />from other parts of the City budget and applied directly <br />for the development of Affordable housing efforts. <br />20-B. Charge a construction excise tax <br />(CET) to raise resources for <br />Affordable housing developments. <br /> A CET is a tax on new development. Oregon law allows <br />local governments to impose a CET on new <br />development projects to generate funding to support <br />Affordable housing projects. The CET can be up to 1% <br />of the construction value for residential projects and <br />there is no limit for commercial and industrial projects. <br />Funds can be used to pay for incentives for developers <br />to create and preserve Affordable housing, rental <br />assistance, and home-ownership assistance programs. <br /> <br />Eugene’s Housing Policy Board recommended that the <br />City Council authorize a CET, and Council has delayed a <br />decision until it hears recommendations from the <br />Housing Tools and Strategies Working Group. <br />20-C. Use local government bonds to <br />fund the construction of Affordable <br />housing developments. <br /> Local government bonds are a way that local <br />governments can raise money to pay for special <br />projects. A bond is essentially a loan taken out by a <br />government agency. To use a bond, a City’s voters must <br />approve a bond (for some dollar amount) and the City <br />borrows that dollar amount. The City’s taxpayers pay <br />off the bond through property taxes. <br /> <br />Oregon voters passed Measure 102 on November 6, <br />which enables local governments to issue bonds for <br />Affordable housing developments that may be owned <br />by non-governmental entities. <br />20-D. Charge an Affordable housing <br />impact fee. <br /> <br /> <br /> <br /> <br /> <br /> Charge a fee (similar to SDCs) when builders create <br />market-rate housing. The amount of the fee is <br />calculated based on the increased demand for <br />affordable housing generated by the development of <br />market-rate housing. Fees are typically charged on a <br />per unit or per square foot basis and revenue may be <br />December 10, 2018, Work Session - Item 2