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January 14, 2019, Work Session – Item 2 <br />Triple Bottom Line Framework The project addressed the Triple Bottom Line framework primarily from the standpoint of considering social equity, through the deliberate involvement of traditionally under-represented populations on the Working Group. Values related to economic prosperity and environmental sustainability were surfaced by the group members as part of defining housing affordability as a ‘wicked problem’ that requires trade-offs between these values. Economic prosperity was also considered in the work done by Strategic Economics on the project. Participants were, in essence, considering the TBL as they deliberated with each on the various options to address barriers to housing affordability. At the December 12, 2018, work session, council directed staff to implement 12 items that are administrative in nature that can reduce the cost of constructing housing in Eugene. Staff are focused on moving these items forward as quickly as possible in 2019 and will keep council updated on progress being made. At that time, council deferred consideration of a CET until January 2019. Staff will also be bringing back for council consideration the remaining recommendations identified through the Housing Tools and Strategies process that require council action to implement. <br />Construction Excise Tax In 2016, the State of Oregon passed SB 1533, which enabled local jurisdictions to adopt a CET to support the development of affordable housing. A CET is a one-time tax imposed on new construction, where an established tax rate (percentage) is multiplied by the permit valuation of the construction permit. The CET is assessed at the time building permits are issued. SB 1533 allows up to a 1 percent tax for residential construction but sets no limit on a tax rate for commercial construction. A CET would apply to the costs of improvements to residential property that result in a new residential structure or a remodel that adds living space and on improvements to commercial and industrial real property that results in a new structure or additional square footage. Based on Eugene residential and commercial construction activity over the two year period from April 2016-2018, it was estimated that a 0.33 percent CET would generate almost $1.0 million, a 0.5 percent CET would generate roughly $1.5 million, and a 1 percent CET nearly $3 million. To date, at least nine jurisdictions in Oregon have adopted a CET. <br />RELATED CITY POLICIES There are multiple City plans and policies related to housing. The primary policy documents are briefly summarized below. <br />Eugene-Springfield 2015 Consolidated Plan The Consolidated Plan provides an assessment of local housing, homelessness and community development needs, identifies priority needs for use of funds received from HUD, and presents strategies to address the priority needs. The Consolidated Plan adopted by Eugene City Council in 2015 identifies low-income renters as a priority population and includes five specific strategies