Item B: Ordinance on MUPTE - Laserfiche WebLink

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MUPTE Guidelines The current MUPTE application packet is provided as Attachment A. This includes the adopted local standards. Public benefits are at the core of the program. Applicants must currently respond to a list of public benefits including sustainability features, responsiveness to adjacent historic resources, building material quality, design elements, Americans with Disabilities Act (ADA) accessible units, home ownership and solicitation of neighborhood association comments. The guidelines include specific rules for protection of historic or potentially historic buildings. Local Market Conditions and Activity The local rental housing market is complex. Eugene has very low rental vacancy rates (estimated at less than 2% in Eugene and near 0% in the core area) resulting in rent increases at rates in excess of wage growth. In some areas, such as West University, the tenants are willing to pay a premium for the convenience of location. However, in other neighborhoods rental rates still appear to be insufficient to support new construction of quality infill rental housing because of the increasing cost of construction and land. Very little in-fill multi-unit housing is being constructed without the MUPTE or some other incentive (e.g. low-income housing). Timing The program is operating under existing guidelines that remain in place until changed by ordinance. RELATED CITY POLICIES Policy Issues and Council Goals The key policy issues are whether the City wishes to provide a tax exemption as a tool that encourages construction of housing in the core area and if so, whether the rules or guidelines should be revised. Encouraging housing, and higher densities in the core area and in surrounding neighborhoods is consistent with numerous adopted planning and policy documents. Examples include: Growth Management Policies Policy 1: Support the existing Eugene Urban Growth Boundary by taking actions to increase density and use on existing vacant land and under-used land within the boundary more efficiently. Policy 2: Encourage in-fill, mixed-use, redevelopment, and higher density development. Policy 3: Encourage a mix of businesses and residential uses downtown using incentives and zoning. Downtown Plan: Living Downtown Policy 1: Stimulate multi-unit housing in the downtown core and on the edges of downtown for a variety of income levels and ownership opportunities. Policy 2: Reinforce residential use in neighborhoods abutting the downtown commercial core to help contain commercial activity in downtown and maintain the historic character and livability of adjacent neighborhoods. Downtown Plan Implementation Strategies A. Expand the MUPTE program boundary to encourage housing on the edges of downtown. Periodically review boundaries and expand to include areas where additional housing is appropriate. F. Seek opportunities to equalize the costs of building housing in and near downtown compared with locations elsewhere in the city. Z:\CMO\2008 Council Agendas\M081022\S081022B.docm