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resources for the continued development of quality affordable housing in Eugene. There is significant <br />competition for funding at both the state and federal level. Commitment of local resources gives Eugene <br />projects an advantage in such competitions. The developments also help support the local economy <br />through the creation of construction jobs. The proposed ordinance would allow Eugene projects to <br />continue to access such resources. <br /> <br />There are currently four developments whose property tax exemption will expire in the next five years. <br />This equates to 115 units of affordable housing that potentially could be lost should the property owner be <br />unable to locate alternative subsidies to maintain affordability. If alternative means to subsidize the units <br />cannot be found, impacts could range from increased rents to reductions in resident programming. Many <br />tenants are unable to support an increase in rent due to fixed incomes and may be forced to vacate. <br /> <br /> <br />RELATED CITY POLICIES <br />The City of Eugene established current goals and programs for the development of housing affordable to <br />low-income people through the adopted 2010 HUD Consolidated Plan. The Consolidated Plan guides the <br />use of Home Investment Partnerships Program (HOME) funds and Community Development Block Grant <br />(CDBG) funds over a five-year period. Each year, the City Council approves the allocation of federal <br />funds through a One-Year Action Plan. Affordable housing development programs support of the City <br />Council Adopted Growth Management Policies, as well. The recommendation to amend Eugene Code <br />directly supports the following Growth Management Policies: <br /> <br /> <br /> <br />Promote construction of affordable housing. <br /> <br /> <br />Encourage in-fill, mixed-use, redevelopment, and higher density development. <br /> <br /> <br />Improve the appearance of buildings and landscapes. <br /> <br /> <br />Provide for a greater variety of housing types. <br /> <br />Extending the City’s tax exemption programs parallels the Envision Eugene pillar of providing affordable <br />housing for all income levels. The draft Envision Eugene proposal presents strategy number 4 to meet the <br />growing and changing housing needs of Eugene residents by supporting subsidized affordable housing <br />projects. Continuing the existing property tax exemption programs has been identified as a way in which <br />this goal can be achieved. <br /> <br /> <br />COUNCIL OPTIONS <br /> <br />A. The City Council may consider the following options: <br />1. Adopt the ordinance as presented; <br />2. Adopt the ordinance with specific modifications as determined by the City Council; <br />3. Take no action. <br /> <br />B. If the City Council adopts the ordinance as presented, it may then consider the following options: <br />1. Adopt the resolution as presented; <br />2. Adopt the resolution with specific modifications as determined by the City Council; <br />3. Take no action. <br /> <br /> <br /> <br />\\Cesrv500\cc support\CMO\2011 Council Agendas\M110413\S110413A.doc <br /> <br />