AMENDED Agenda Packet 4-17-19 Work Session

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April 17, 2019, Work Session – Item 2 EUGENE CITY COUNCIL AGENDA ITEM SUMMARY Work Session: Local Options for Inclusionary Zoning Meeting Date: April 17, 2019 Agenda Item Number: 2 Department: Planning and Development Staff Contact: Stephanie Jennings www.eugene‐or.gov Contact Telephone Number: 541‐682‐5529 ISSUE STATEMENT City Council requested a work session to discuss the local opportunities to support affordable housing enacted through SB 1533 by the State of Oregon. In this session, staff will review the state’s enabling legislation for inclusionary zoning, use of this tool in Oregon, and considerations for use of this tool in Eugene. BACKGROUND Residents of communities throughout Oregon are experiencing housing challenges related to affordability, quality and stability. In response to these challenges, the State of Oregon passed a suite of legislative measures in 2016 including SB 1533. Through SB 1533, the State of Oregon enabled two new tools for local jurisdictions to increase the availability of affordable housing. The first tool is a limited form of inclusionary zoning, which allows jurisdictions to require inclusion of affordable units in multifamily structures with 20 or more units. The second tool is the ability to create local affordable housing trust funds through a construction excise tax. Council previously discussed inclusionary zoning on April 12, 2017. At that time, council directed staff to gather community perspectives, analyze housing market conditions and come back for discussion at a future date. This AIS describes the parameters of inclusionary zoning as permitted by the State as well as related City policies and plans. A copy of the enabling legislation is provided as Attachment A and a letter from the Intergovernmental Housing Policy Board is provided as Attachment B. The City Council presentation will include the additional information requested by council. Inclusionary zoning is a policy typically implemented at the local level to incorporate units affordable to low or moderate‐income households as a part of a market rate development. While hundreds of inclusionary zoning policies have been adopted by local jurisdictions across the country, they vary significantly in their scope, focus and impact. Given that the success of inclusionary zoning programs is dependent on the actions of private developers, programs are typically calibrated to local conditions for market rate development.