Item A: Envision Eugene - Housing Mix and Industrial Lands

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Eugene needed housing density and mix ECONorthwest Page (4) “Housing Needs Projection” refers to a local determination, justified in the plan, of the mix of housing types and densities that will be: (a) Commensurate with the financial capabilities of present and future area residents of all income levels during the planning period; (b) Consistent with any adopted regional housing standards, state statutes and LandConservation and Development Commission administrative rules; and (c) Consistent with Goal 14 requirements. Thus, the determination of housing need must be based on analysis of a range of data. We addressed this issue in some detail in Appendix C of the ECLA report. State policy does not make a clear distinction between need and demand. Following is our definition, which we believe to be consistent with definitions in state policy: can be defined broadly or narrowly. The broad definition is based Housing need on the mandate of Goal 10 that requires communities to plan for housing that meets the needs of households at all income levels. Goal 10, though it addresses housing, emphasizes the impacts on the households that need that housing. Since everyone needs shelter, Goal 10 requires that a jurisdiction address, at some level, how every household will be affected by the housing market over a 20-year period. In short, housing need is addressed through the local Housing Needs Projection. is what households demonstrate they are willing to Housing market demand purchase in the market place. Growth in population means growth in the number of households and implies an increase in demand for housing units. That demand is met, to the extent it is, primarily by the construction of new housing units by the private sector based on its judgments about the types of housing that will be absorbed by the market. ORS 197.296 includes a market demand component: buildable land needs analyses must consider the density and mix of housing developed over the previous five years or since their most recent periodic review, whichever is greater. In concept, what got built in that five-year period was the: it is the local equilibrium of effective demand for new housing demand factors, supply factors, and price. The direction provided by the Statutes and Administrative Rules imply that the Housing Needs Projection is largely a technical exercise that involves evaluating the relationship between income, demographic characteristics, housing choice, and housing cost. The state does not provide much direction on how to make the determination. The determination, in our view, is not solely a technical exercise—it also includes a policy component that considers what communities want. The difference between what communities want and what the data suggest often creates tension in making the local determination. PC AIS, p6