Agenda Packet 2-12-20 Work Session

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Attachment A Potential Financial Incentives for ADUs February 2020 City of Eugene 4 February 12, 2020, Work Session – Item 1 Description Legal Issues Administrative Requirements Estimated Cost Reduction to Property Owner Fiscal Impact to City of Eugene E. Waive land use application fees Land use application fees are up- front costs required in some instances in order to prepare land for future development. ADU development rarely requires land use adjustment. Typically, only a building permit is needed for the construction of an ADU. However, on a rare occasion, a land use application is desired or needed. The most common, an adjustment review, is utilized when an applicant chooses to adjust certain land use standards for their project. Waiving fees can be done through an Administrative Order signed by the City Manager. Staff estimate that the administrative burden of implementing a waiver is low and could be incorporated into the permitting process. About $600, on those projects that require a land use application. The most common, an adjustment review, is utilized when an applicant chooses to adjust certain land use standards for their project. Each adjustment review application adds approximately $600 in city fees to a project. Waiving land use fees for ADUs would require a subsidy from some other source, such as increasing land use fees for other building types, or rely on reserves. Of the 12 ADUS that had the Transportation SDC waived in 2019, none had an associated land use application. F. Develop pre-approved building plans for ADUs The City could offer a library of pre-approved building plans, which lowers costs for ADU developers: They could avoid the cost of an architect; and Permit fees would decline, as the review time would be diminished. Other communities have successfully implemented pre- approved building plans for ADUs which have resulted in an increase in ADUs constructed- Seattle, Washington; San Jose and Encinitas, California; and San Diego County, California. These plans have lowered the cost and complexity barrier for adding new housing types to each community. Providing pre-approved plans that offer a range of sizes and design None. Staff would work with architects to develop a library of plans and approve them. Permit review would still occur, based on circumstances that change from site to site, such as public works pieces like utility connections and erosion control and fire/life safety measures. The process of creating the plan sets will need to be thorough to address the community’s needs. Each site has a different topography. Having plans for a variety of topographies, designs, sizes, and accessibility needs will result in a lot of upfront community engagement, design work, and plan review Roughly $6,000. Pre-approved plans would not eliminate design costs. A project will still require material selection and design specifics, as well as site-specific design issues. City staff would have to devote time to manage a contract with a consultant to create the library of plans. Staff estimate that the contract would cost roughly $50,000.