Agenda Packet 12-12-18 Work Session

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Draft Summary Report: Eugene Housing Tools & Strategies 4 Affordable Housing and Housing Affordability in Eugene Issues This section provides on overview of affordable housing availability and issues related to income and housing affordability in Eugene.  Household income needed to afford a house that costs $315,000 (the median price of all homes that sold in the last year) is $62,000 per year to be considered affordable. As described in the previous section Eugene’s median household income is $45,000.  The median monthly rental rate for market-rate multifamily units is not affordable for nearly half of Eugene’s households. The median rent in multifamily rental buildings is $1,058, which would require a minimum income of $42,300 to be considered affordable. This rental rate is unaffordable for approximately 47 percent of Eugene’s households.  A majority of renter households in Eugene are rent-burdened, and Eugene’s share of rent- burdened households is substantially larger than Oregon overall. Fifty-eight percent of renter households pay more than 30 percent of their income on rent, and of the total, 36 percent are considered severely rent-burdened and pay more than 50 percent of their income on rent.  Designated, affordable units in Eugene, alone, are not enough to meet the housing needs of Eugene’s lowest-income households. Deed-restricted, affordable units make up five percent of Eugene’s housing stock, while 31 percent of Eugene households have incomes less than $25,000, which is approximately 40 percent area median income for a four-person household, and 50 percent area median income for a two-person household in Lane County. 8 ACCESSORY DWELLING UNIT EVALUATION The City of Eugene asked Strategic Economics to evaluate the effectiveness of accessory dwelling units (ADUs) to help Eugene achieve its goal to enable quality housing at a range of price points. This section of the summary report provides an overview of ADUs and makes recommendations on how Eugene could reduce barriers to their production. ADUs, also sometimes referred to as “granny flats,” “in-law units,” or “backyard cottages,” are relatively small housing units, typically ranging from studios to two bedrooms, added to the lots of single-family homes. ADUs come in many forms and can be detached from or incorporated into the primary dwelling. They can be newly constructed or converted from existing structures, such as garages. ADUs are considered a type of “gentle density” in which building them increases the housing supply while minimally impacting their neighborhoods. ADUs do not typically require the demolition of existing buildings, and therefore have a significantly smaller displacement impact, compared to larger-scale development. Key Findings and Recommendations on ADUs  While Eugene allows accessory dwelling units in all residential zones (R-1, R-2, R-3, and R-4), and the majority of Special Zones by right, very few ADUs have been permitted and built, 8 “Lane County 2018 Rent Income Limits,” Oregon Housing and Community Services, 2018. December 12, 2018, Work Session - Item 2