Agenda Packet 3-13-19 Work Session

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Housing Tools and Strategies Action Inventory 18 Recommended Actions B. Reduce Cost and Time Burden Action Explanation Level of Support Impact Does this action increase housing affordability, availability, and/or diversity last 3 decades. The program sunsets on January 1, 2022. Cost- 15 Simplify the criteria that must be met to receive a MUPTE exemption. The current MUPTE program, established in 2015, requires the applicant show the development has green building features, makes a ‘moderate income housing’ contribution, shows that local subcontractors are being considered for use, and that the project would not be financially feasible without the property tax exemption. A recent assessment of the program found that local builders find the program’s administrative requirements add cost and uncertainty. Current rules make it possible that an applicant pays the fees, conducts required analysis, and meets the criteria, yet can have the application rejected by City Council. Since the 2015 overhaul, two development projects have applied for a MUPTE. One applicant decided to back out of the project, after determining that the project was not financially feasible. The second project is under construction now. HTS working group supported this option (58%) in the preliminary vote. The working group also voted on a less descriptive option to revise the MUPTE program, which received 48% support in the preliminary vote. Yes - The program’s administrative costs and uncertainty have been a hindrance for builders. By simplifying the criteria, the program could see a higher use and could lead to housing constructed in the downtown. The primary identified drawback of the exemption is that the City and other taxing districts don’t collect taxes on the new development during the exemption period. However, if new housing doesn’t get built, the City never collects taxes on new development. Cost- 16 Activate “Opportunity Siting” Program. The City’s Opportunity Siting Program was envisioned to proactively identify sites for multi- family development. It could increase successful multi-family housing in certain areas through collaborative design review (directly involving Neighborhood Associations in the approval process) and apply incentives such as SDC reductions or a density bonus to those sites. In 2009, the Opportunity Siting task team made recommendations for this program. Agreement HTS working group somewhat supported this option (50%) in the preliminary vote. Unknown – It is unclear if such a program would have an impact. It is possible that property owners of ‘Opportunity Sites’ have no interest in developing their property as recommended by the Neighborhood Association. March 13, 2019, Work Session - Item 2