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63 <br /> <br />Strategy 3: Increase inventory of and access to Affordable Housing units <br />Option Explanation <br />20. Identify new Revenue sources <br />for Affordable housing units. <br />Working group support the idea of Option 20 but did not have <br />definitive support for any of the listed ways to actually do this. <br />For ALL sub-options- Consider: <br />• Variations in flexibility (what $ could be used for) <br />• Volume/scale of impact (revenue generated) <br />• Impact on development feasibility <br />• Trade-offs ($$ from the general fund) <br />20* Implement top idea first then, <br />depending on outcome, <br />implement next most supported <br />item. <br />NEW: Council will ultimately have to decide where to begin with these <br />options. Phasing favorable options in over time is already a likely <br />outcome <br />20-A. Shift money from the <br />City’s General Fund, which <br />would shift funding from <br />other City services, to <br />support Affordable <br />Housing. <br />Straw polling suggest this is unpopular given trade-offs to cuts in other <br />services. <br />20-B. Charge a construction <br />excise tax (CET) to raise <br />resources for Affordable <br />housing developments. <br />See additional document/presentation regarding CETs. <br />CET revenue may be used for a wide range of capital costs as well as <br />housing programs including down-payment assistance, and other <br />housing support. Staff analysis estimated that a 1% Residential CET <br />would generate about $1 million per year and a 1% Commercial CET <br />would generate about $2 million per year. The CET is applied to the <br />value of the improvement only and not to the land value. <br />20-C. Use local government <br />bonds to fund the <br />construction of Affordable <br />housing developments. <br />Local government bonds may now be used to fund the construction <br />and/or preservation costs of Affordable housing development. <br /> <br />To use a bond, a City’s voters must approve a bond (for some dollar <br />amount and specific purpose) and the City borrows that dollar <br />amount. The City’s taxpayers pay off the bond through property taxes. <br /> <br />The impact a bond could have on Affordable housing depends on the <br />size of the bond, which can vary widely. For example, in 2018, School <br />District 4J voters approved a $319 million bond; in 2012 Willamalane <br />Parks District voters approved a $20 million bond. The cost to <br />individual property owners will vary based on their property’s taxable <br />value and the size of the bond. <br />20-D. Charge an Affordable <br />housing impact fee. <br />There is not a clearly legal mechanism to do this with Oregon’s current <br />state law. <br />20-E: Charge a CET on a sliding <br />scale by the size of the <br />development (especially <br />NEW- See Option 20-B. Establish a CET structure that charged a <br />higher percentage of larger homes and a smaller percentage of <br />smaller homes. <br />December 10, 2018, Work Session - Item 2