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Several other City affordable housing tools and incentives that could potentially benefit a downtown development would include Systems Development Charge (SDC) Waivers, the Low-Income Rental Housing Property Tax Exemption Program, and the Homeownership Assistance Program. Example: WestTown on 8th WestTown on 8th, owned and operated by Metropolitan Affordable Housing Corporation, has 102 housing units affordable to persons at 60% of AMI or below and nine market-rate live-work units. Tools used for the $22 million project include: Low-Income Housing Tax Credits,CDBG funds through City’s Landbanking program for the site (valued at $570,000 in 2004), $1,025,000 federal HOME Housing Development grant, $222,000 Eugene System Development Charge Waivers, 20-year Low-Income Rental Housing Property Tax Exemption, $300,000 short-term low interest loan from the City – Housing Capital Project Fund and the Low-Income Housing Fund (generated through MUTPE fee payments), and other project subsidies for WestTown were provided by the Eugene Water and Electric Board and Lane County. F. City’s General Fund / Full Faith & Credit Pledge General Fund / Full Faith & Credit Pledge Summary ? Contribution to project from City’s general resources ? Provide security to bondholders for borrowings, with debt payments made from a different revenue source, and ultimate back-stop by the City’s general resources ? Guarantee urban renewal financing on an interim period prior to receipt of incremental revenues The City’s General Fund resources and its full faith & credit pledge may also be used to assist with downtown development projects. General Fund resources are unrestricted and may be used for any public purpose. General Fund resources, however, are subject to significant competition from the City’s other services and programs. The City’s full faith and credit pledge may be used to provide security for borrowings that are repaid from other sources, such as building rental revenues, parking revenues or urban renewal tax increment revenues. The City’s pledge for such borrowings results in access to the public capital markets and a lower interest rate for those borrowings that might not otherwise be available. Examples: Broadway Place Garages, Atrium Building, Eugene Public Library The City has used its full faith & credit pledge to secure downtown development project financing in the past. The Broadway Place Garages were financed with the City’s full faith and credit obligations that are repaid from parking system revenues. The Atrium building was purchased with City full faith and credit obligations that are paid from Atrium building rentals. The Eugene Public Library was partially financed with City full faith and credit obligations that are paid from urban renewal revenues. G. Assessments / Local Improvement Districts / Business Improvement Districts Assessments / Improvement / Business Districts Summary ? For transportation / utility projects ? Property owners may elect to finance through City Assessments and improvement districts can be used for infrastructure improvements, such as transportation or utility projects. Assessments and improvement districts spread the cost of the project among those that benefit. Property owners contribute to the cost of the project through assessments. For local improvement districts, property owners may finance their obligations through the City. Example: Downtown Service District Property owners pay a fee per square foot. Funds are used to provide services within the Downtown Service District. Downtown guides are the primary use of funds.