AMENDED Agenda Packet 4-17-19 Work Session

Home Browse Search

MEMO Date: January 11, 2019 To: Eugene City Council From: Intergovernmental Housing Policy Board Subject: Inclusionary zoning The Housing Policy Board spent some time last year studying inclusionary zoning. Here are our findings. The 2016 Oregon legislature adopted a new law allowing local governments to [1] adopt a tax on new construction (called here a “CET”) for the purpose of “housing”, and [2] implement inclusionary housing requirements (commonly called ‘inclusionary zoning’ or here “IZ”). This memorandum discusses the latter of those. The City can adopt an ordinance “that has the effect of establishing the sales or rental price for a new multifamily structure, or that requires a new multifamily structure to be designated for sale or rent as affordable housing.” The “sales or rental” phrase is intended to include not just rental apartments, but also for example, condominiums. A “multifamily structure” is a single structure containing at least twenty units. “Affordable housing” means housing that is “affordable to households with incomes equal to or higher than 80 percent of the median family income.” There are numerous requirements: 1.No more than 20% of the units can be required to be affordable. 2.It applies only to multi-family structures of at least 20 units. 3.Developers must be allowed to pay an in-lieu fee. 4.The regulations must contain and “apply only clear and objective standards, conditions and procedures regulating the development of affordable housing units” which “may not have the effect, either individually or cumulatively, of discouraging development of affordable housing units through unreasonable cost or delay.” This doesn’t not apply to “historic areas.” 5.The City must provide at least one of the following incentives: •whole or partial fee waivers or reductions •whole or partial waivers of SDCs •finance-based incentives •full or partial exemption from property taxes In addition, the City may offer any of the following incentives: •density adjustments •expedited service for the permitting process •modification of height, for area, or other sited-specific requirements Attachment B April 17, 2019, Work Session – Item 3