Agenda Packet 4-17-19 Work Session

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April 17, 2019, Work Session – Item 2 SB 1533 enabled Oregon jurisdictions to implement a limited form of inclusionary zoning in their communities through adoption of a local ordinance. There are multiple limitations build into the enabling legislation and the most significant restrictions are as follows: • Building Type – Applies only to multifamily structures that contain 20 or more units. • Affordability - Local jurisdictions may require up to 20 percent of units in structures be affordable to households earning 80 percent of Area Median Income and above. • Incentives – The local jurisdiction must offer incentives to partially offset the cost of including affordable units. If a local jurisdiction adopts inclusionary zoning and a CET, a portion of the CET revenue must be reserved for inclusionary zoning incentives. • Fee in Lieu – Developers must be offered the option to pay a fee in lieu of including units in their development. These fees may be used to subsidize affordable housing development. The City of Portland is the sole jurisdiction in Oregon that has adopted an inclusionary zoning program. Portland’s inclusionary zoning program commenced in February 2017 following an extensive analysis of market conditions and a lengthy community process. Over the past two years, Portland has permitted 422 inclusionary housing units spread across 65 housing developments. PREVIOUS COUNCIL DIRECTION April 12, 2017, Work Session City Council received an introductory presentation on SB 1533 and directed staff to gather information on policy options for Inclusionary Zoning. COUNCIL OPTIONS Council options are as follows: 1. Provide direction to staff for next steps for exploration of an inclusionary zoning program. 2. Take no further action. CITY MANAGER’S RECOMMENDATION City Manager has no recommendation at this time. SUGGESTED MOTION No motion applicable. ATTACHMENTS A. SB 1533 B. Letter from the Intergovernmental Housing Policy Board