Item 5: Low-Income Rental Housing Property Tax Exemption - River Road

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percent of household income. More than 44 percent of Eugene households have a housing cost burden. Eugene currently experiences a lack of housing that is affordable for people with low incomes. The March 2012 Envision Eugene recommendation includes expanding the variety of housing types and prices available by moving toward a housing mix of 55 percent single-family/45 percent multi-family in order to support the vision set out in the Envision Eugene pillars of providing housing that is affordable for all income levels. More than 6,300 new units of multi-family housing will be needed to accommodate the next 20 years of growth in Eugene. Summary of requested tax exemption for River Road Apartments Evergreen Housing Development Group, LLC has requested the low-income rental housing property tax exemption to build River Road Apartments. The project includes 216 apartments affordable to households earning 60 percent AMI or less, and will be located on a vacant 7.7 acre site south of Beltline on River Road (Attachment B). Lower income households can include full- time workers in jobs making minimum wage or slightly higher, new college graduates, young professionals, families with children, seniors on limited or fixed incomes, or people with disabilities, among others. The project concept includes 13 three-story buildings consisting of 82 one-bedroom, 74 two- bedroom, and 60 three-bedroom units. The developer aims to use energy efficient appliances and water-saving features on site. The preliminary site plan (Attachment C) includes common and play areas, covered bike parking, a leasing office building that includes community and fitness rooms, and community garden areas. Rents are anticipated to range between $606 and $832 and will meet requirements of the Low-Income Housing Tax Credit (LIHTC) program. Current fair market rents for Eugene-Springfield are between $637 and $1,128. (See Attachment D for LIHTC rent data) The vacant property Evergreen Housing proposes to build on was annexed into the city in 2006. In 2007, a land use decision was issued approving a zone change from R-1, low-density residential to R-2, medium-density residential, consistent with the Metro Plan. Medium-density residential lands have a density range of 10 to 28 units per acre. River Road apartments maximizes the allowable R-2 base density onsite by providing 216 units. Evergreen Housing has chosen not to take advantage of the Controlled Income and Rent Housing 150 percent density increase allowed in Eugene Code 9.2740 that would increase the total potential unit count by more than 100 units. Based on the current proposal, no land use applications will be required to move forward with development. Final site and development plans will be reviewed at the time of building permit for compliance with the multi-family development standards and other applicable development standards, such as bicycle parking and landscaping. While the project will primarily be funded with construction and permanent loans, the applicant has submitted an application to Oregon Housing and Community Services (OHCS) and anticipates funding the $26 million development, in part, with four percent LIHTCs and proceeds from tax exempt bonds that will be issued by the State. S:\CMO\2012 Council Agendas\M121119\S1211195.doc