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44 <br /> <br />Strategy 2: Reduce cost and time burden for development of housing <br />Option Key Explanation <br />12. Adjust System Development Charges <br />(SDCs) program to reduce <br />development costs for market-rate <br />housing that are smaller and lower <br />cost. <br /> SDCs are fees imposed on new development. In Eugene, <br />new development pays SDCs for transportation, parks, <br />wastewater, stormwater, and water (water SDCs are <br />collected by EWEB). A new development imposes new <br />costs on these infrastructure systems. For example, a <br />new 50-unit residential building will use capacity at the <br />wastewater treatment facility. The treatment facility will <br />not expand to accommodate that individual <br />development, but it will add capacity in the future when <br />enough new development has used up all existing spare <br />capacity. The SDC is designed to cover the proportional <br />cost of new construction. <br /> <br />The City is in the process of updating the Transportation <br />SDC, and staff have recommended that it have a lower <br />fee for multi-family housing in the downtown and along <br />key corridors. <br />12-A: Delay the collection of SDCs <br />until a property is ready to <br />receive its certificate of <br />occupancy. <br /> <br />12-B: Reduce SDCs for multi-family <br />developments in the downtown <br />and along key corridors. <br /> <br />12-C: Reduce SDCs for ADUs. <br />12-D. Reduce SDCs for all “missing <br />middle” housing types. <br />12-E*: Place a cap on the SDC waiver. <br />12-F*: Scale SDCs to the size and <br />impact of what’s built. <br />13. Revise the land use appeal process, <br />with shared costs for recovery of legal <br />fees by the prevailing party. <br /> Eugene’s land use code allows any party to appeal a land <br />use decision. If a housing project requires a land use <br />application, there is an opportunity to appeal that <br />decision. The appeal process adds time, legal fees, and <br />uncertainty for the developer. <br /> <br />The City’s local laws allow for reduced appeal fees from <br />the appealing party if it is a City-recognized <br />Neighborhood association but only for decisions made at <br />the local level (at the Hearings Official and Planning <br />Commissions levels). The appealing party covers their <br />own legal fees. The developer must cover legal fees, <br />without any cost reduction, to defend the appeal. There <br />are no negative financial consequences for the appealing <br />party if the appeal has no legal merit. <br />14. Revise the Multi-Unit Property Tax <br />Exemption (MUPTE) program for <br />market-rate housing. <br />Eugene has a property tax exemption program that <br />allows new multi-family units (5 or more units) to be <br />exempt from property taxes on the value of new <br />residential construction for up to 10 years. The MUPTE <br />lowers the new development’s operating costs, which <br />could impact the financial feasibility. The property <br />14-A. Extend the MUPTE boundary to <br />include key corridors (see <br />glossary). <br /> <br />December 12, 2018, Work Session - Item 2