Agenda Packet 1-14-19 Work Session

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January 14, 2019, Work Session – Item 2 for expanding affordable housing options and access for people with limited incomes. Staff will begin updating the Consolidated Plan in 2019. Envision Eugene Community Vision The seven pillars, or community values, include Provide housing affordable to all income levels. Housing strategies in the 2012 recommendation include planning for a higher proportion of multi-family housing in the future, expanding housing variety and choice, assessing the applicability of a housing and transportation affordability index, supporting subsidized affordable housing projects, and continuing existing programs that support preservation and rehabilitation of existing housing stock. Urban Growth Boundary Adoption Package Eugene’s Housing Needs Analysis identifies a need for all housing types and price levels to meet the community’s 20-year needs. In order to fit all of the community’s needed housing inside the existing UGB, council directed staff to continue existing incentive programs for higher-density housing downtown and to increase the minimum density requirement in the R-2 medium-density residential zone. Council direction also launched the Clear and Objective standards update, Urban Reserves planning, and a Growth Monitoring program. COUNCIL OPTIONS Council options are: Option 1. Direct the City Manager to prepare a draft ordinance for council consideration and schedule a Public Hearing to create a Construction Excise Tax to support an Affordable Housing Fund. The CET would include the following provisions: i.0.33% tax rate effective July 1, 2019ii.0.50% tax rate effective July 1, 2020iii.CET rate would apply to residential and commercial types of construction, consistent withstate statute.iv.In addition to state-mandated exemptions, the following would be exempted from the CET:Affordable housing projects, projects receiving a Multi-Unit Property Tax Exemption, andhouses priced at less than $250,000.v.Establish an advisory committee to recommend CET allocations.vi.The total CET imposed on any single or multi-phase project would be capped at $1,000,000.vii.During the first two years (July 2019 – June 30, 2021), the City will offset the cost of the CETpaid by an applicant by an equivalent reduction in Systems Development Charges.viii.During the first two years (July 2019 – June 30, 2021), designate City funds, equivalent to thereduction in SDCs, to the appropriate SDC fund.ix.Designate $500,000 per year of City funds to the Affordable Housing Fund.x.Council review of program every two years beginning in 2021