Agenda Packet 12-10-18 Meeting - REVISED

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December 10, 2018, Meeting – Item 2C The developer will apply for financing through Oregon Housing and Community Services through the Multi-family Local Innovation and Fast Track Rental Housing Program and the 4 percent Low-Income Housing Tax Credit program. LIFT is a new program created by the State of Oregon to finance affordable housing development. The developer has also requested a City of Eugene Systems Development Charge exemption to assist with construction costs. The apartments would not be able to achieve their proposed level of affordability without the City of Eugene property tax exemption. The requested exemption meets the substantive criteria (Eugene Code 9.239(3)(a)-(i)) as shown in the Report and Recommendation (Attachment A). No public comments were received during the public comment period. RELATED CITY POLICIES The proposed project advances goals established in multiple local plans and policies. The five-year Eugene-Springfield 2015 Consolidated Plan identifies many affordable housing goals including increasing the affordable housing supply by 650 units. Other plans and policies include the Residential Land Use and Housing Element of the Metropolitan Area General Plan, Eugene City Council Adopted Growth Management Policies, the Diversity and Equity Strategic Plan, the Lane County Ten Year Plan to End Chronic Homelessness, Housing Dispersal Policy, and the Lane County Continuum of Care Plan. The proposed uses of funds also specifically support affordable housing goals set forth in the Envision Eugene pillars. Approval of the property tax exemption application for 11th and Lincoln would support the Envision Eugene pillar of providing housing affordable to all income levels. The Envision Eugene Housing Affordability pillar includes strategies to meet the growing and changing housing needs of Eugene residents by supporting subsidized affordable housing projects. Continuing to provide property tax exemptions to low-income rental housing developments has been identified as an action to help successfully implement this strategy. COUNCIL OPTIONS The City Council has two options: 1. Approve the tax exemption. 2. Deny the tax exemption. CITY MANAGER’S RECOMMENDATION The City Manager recommends option 1, to approve the resolution granting a 20-year Low-Income Rental Housing Property Tax Exemption for the property located at the northwest corner of 11th Avenue and Lincoln Street. SUGGESTED MOTION Move to adopt the resolution approving a 20-year Low-Income Rental Housing Property Tax Exemption for the property located at the northwest corner of 11th Avenue and Lincoln Street.