Item B: Ordinance on MUPTE - Laserfiche WebLink

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house) that is likely going to be removed. In WUN rents are particularly high for this community and new units are charging $525 per bedroom per month. The result is a project that can be financially viable. The same appraiser believes that two of the most recent MUPTEs were of significantly higher than typical quality and that MUPTE probably resulted in the difference. The third project that we discussed was described as high but not exceptional quality. The MUPTE enabled the project to pencil out economically. Can the evaluation of MUPTE applications be less subjective and more objective? How do staff analyze the applications to determine compliance with the “but for” requirement? Response: A proposal for objective criteria is provided as Attachment E. This criterion offers specific circumstances where the approval criteria are clear and others where points are awarded for increasing degrees of compliance. Because of market differences from one neighborhood to the next, raising the bar through objective criteria may result in limiting the effectiveness of MUPTE as a tool. In neighborhoods with little history of redevelopment and average or depressed rental rates, the MUPTE, even if public benefit criteria are reduced, is not enough of an incentive to encourage new housing. Therefore, if conditions are added, the value of the MUPTE incentive is diminished. The Vertical Housing Zone program is administered by the state and has clear objective criteria which make it easier for applicants to plan their projects. The pro-forma for each MUPTE application is reviewed by City staff. The applicant must demonstrate in their financial presentation why the project could not be built “but for” the exemption. Staff is familiar with the construction costs of new multi-family housing because the City closely monitors the financial details of low-income housing developments. In a similar role, private lenders closely look at a project pro-forma, carefully examine the cash-flow, and determine cost reasonableness and feasibility before approving the project financing. In virtually every approved MUPTE project, the private lender requires documentation of the MUPTE approval as a condition of their approval of project financing. As part of the proposed standards recommended by staff for consideration, another step is suggested – a review by the City’s loan advisory committee. This committee is comprised of lenders who are experienced at analyzing financial statements for business development loans and can apply their expertise to multi-family housing projects. What are the criteria for determining compliance with historic resources ? Response: The criteria used for historic designations are codified in the Eugene Land Use Code, Section 9.8165 (2). Designation is based on a determination of historic significance according to one or more of the following: (a) is associated with events that have made a significant contribution to the broad patterns of history; (b) is associated with the lives of persons significant to our past; ( c) embodies the distinctive characteristics of a type, period, or method of construction, or represents the work of a