Laserfiche WebLink
•other incentives determined by the City <br />The City may also offer voluntary incentives: <br />•increase the number of affordable housing units in the development <br />•decrease the sale or rental price of the affordable units <br />•make units affordable to lower income families <br />While the statute does not require a jurisdiction to adopt a CET if it adopts IZ, it is <br />impractical not to do so, since the cost of the mandatory incentives would then have to come out <br />of general funds. <br />If the City chooses not to adopt a mandatory IZ ordinance, it can still adopt a voluntary IZ <br />ordinance. That is what Corvallis has done. <br />WHAT OTHERS HAVE DONE <br />While nine jurisdictions in Oregon have already adopted a CET, only Portland has adopted <br />IZ. <br />RECOMMENDATIONS <br />The Housing Policy Board recommends that the City not adopt mandatory inclusionary <br />zoning. The reasons are as follows: <br />•It is unlikely to affect many developments, since most developments have fewer than 20 <br />units in a single structure. <br />•It directs 50% of proceeds of the residential CET to incentivizing those properties. That <br />means a lot of CET money could be directed to not very many developments. <br />•It does nothing to assist families below 80% of AMI. <br />•While requiring set-asides to families at or above 80%, it does not require those units to <br />be rented or sold to families meeting that qualification, so families earning 200% of AMI can <br />rent or buy those units. <br />On the other hand, the Housing Policy Board suggests that the City explore voluntary <br />inclusionary zoning. This would allow a developer who is willing to include affordable housing <br />units in a development to negotiate incentives with the City. No incentives would be mandatory. <br />Corvallis has adopted voluntary inclusionary zoning but we are not aware yet how that is <br />working. <br />April 17, 2019, Work Session – Item 3