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HomeMy WebLinkAbout02/25/1991 Meeting - e e M I NUT E S Eugene City Council McNutt Room--City Hall February 25, 1991 5:30 p.m. COUNCILORS PRESENT: Ruth Bascom, Kaye Robinette, Shawn Boles, Paul Nicholson, Randy MacDonald, Debra Ehrman (arrived at 5:15 p.m.). COUNCILORS ABSENT: Bobby Green, Roger Rutan. The regular meeting of the Eugene City Council was called to order by His Honor Mayor Jeff Miller. I. REVIEW OF HOUSING PROGRAMS Ms. Bascom explained that this night's meeting would include a work session on the council's goal of building permanent affordable housing, emphasizing intergovernmental cooperation. She introduced Richie Weinman of the Planning and Development Department (POD). Mr. Weinman reminded the council that it had adopted its housing goal in 1989 and that it entailed creating 100 new units of affordable housing and reha- bilitating the Family Shelter House. He said the City of Eugene had joined with the City of Springfield and the Housing Authority and Community Services Agency of Lane County (HACSA) in 1990 to establish the intergovernmental Housing Policy Board. Mr. Weinman explained that the goals of the Housing Policy Board include: 1) creating leadership in the community; 2) helping provide coordination of effort between the different jurisdictions; 3) identifying viable funding sources; 4) providing community education on housing needs; 5) encouraging innovative approaches to housing; and 6) encouraging nonprofit groups to become involved in housing needs. Ms. Bascom said the housing goal is specifically aimed at those citizens who work full-time and still cannot afford housing. Mr. Weinman added that a great deal of research exists to show that more affordable housing is needed in the community. In response to a question from Mr. Boles, County Commissioner Jack Roberts said Lane County initially allocated $750,000 in funds for both permanent and emergency housing solutions as a result of the Lane County Housing Task Force Report. However, the County Health and Human Services Department requested MINUTES--Eugene City Council February 25, 1991 Page 1 e e e $150,000 for its winter program and this amount was deducted from the fund of $750,000. He said he had raised the issue of replacing the $150,000 to the fund at almost every meeting of the Housing Policy Board since that time, as well as at Board of County Commissioner meetings. Mr. Roberts said that due to budgetary limitations, it seemed doubtful that the County would be able to replenish its share of housing development moneys back up to the original sum of $750,000. He said this commitment might be renewed in the coming year through the Intergovernmental Human Services Com- mittee. Ms. Bascom said the County had allocated $522,000 for homeless shelters. She said there were so many programs dealing with housing that it was difficult to compare funding among the various jurisdictions. She pointed out that HAC SA spent about $10 million on Section 8 and low-rent public housing. Mr. Weinman explained that Section 8 certificates and vouchers are issued to qualified low-income tenants. This guarantees that no more than 30 percent of their income will be spent on rent and utilities each month. He said that if the Housing Authority finds that a person is living in a unit which is "rent-reasonable" the authority pays the difference between what the tenant can afford and the total cost of rent. In response to a question from Mr. MacDonald, John Van Landingham, a member of the Housing Policy Board, Social Goals Committee, Eugene Planning Commis- sion, and the former Lane County Housing Task Force, said the waiting list for the Section 8 program is usually about two years. He said the list is only opened to new applicants about twice each year. Ms. Bascom added that there are about 2,500 people in the Section 8 program. Mr. Roberts pointed out that many people without permanent housing are not living in a shelter but are living with someone else or are paying from half to 75 percent of their income on rent. He said 2,000 people called last summer during the first week of the biannual opening of the waiting list for Section 8 moneys. He said this meant that providing homes for those people living in emergency shelters would not begin to cover the whole problem of affordable housing. Mr. Roberts said national policy has moved away from supporting new construc- tion to supporting voucher programs. He said this has some merit in those parts of the country which experienced a real estate boom in the early 1980s, but that the Northwest had instead experienced a recession. He said there was not always a way to match vouchers to housing in this area. Mr. Roberts pointed out that landlords may be prejudiced against persons with vouchers and, in addition, HUD rules are often extremely stringent and there- fore disliked by landlords, especially in tight market conditions. Mr. Weinman described completed housing projects, including the Uhlhorn Apartments, Laurel Grove, and six new units at the Family Shelter House, and showed their locations on a city map. He listed several proposed projects MINUTES--Eugene City Council February 25, 1991 Page 2 e e e including Walnut Grove, Family Shelter House rehabilitation, the Sponsors project, and Richardson Bridge. In response to a question, Mr. Weinman said the City formerly owned a landbank site at 38th Avenue and Hilyard Street but this location was traded for the Richardson Bridge site and another lot at 19th Avenue and High Street. He said the Parks, Recreation and Cultural Services (PARCS) Depart- ment plans to build a parking lot for Tugman Park on a portion of the 38th Avenue and Hilyard Street location, and a private developer plans to build a project for the elderly there. Mr. Weinman said the City would like to acquire more landbank sites, but this is becoming difficult, especially in South Eugene because of the slope of many lots in this area. In response to a question from Mr. Boles, Mr. Weinman said single room occu- pancies (SROs) are lacking in Eugene. Mr. Gleason said some housing exists which is related to treatment programs such as Buckley House, the Chicano Affairs Center, and other service centers, but inexpensive, non-service-based housing is also needed. Jim McCoy of HACSA said the County had hoped to begin construction on the Richardson Bridge project last year but had financing problems. He said the State tax credit program last year was not set up to provide a "deep" subsidy for very-low-income families. Mr. McCoy said HACSA had received direction on the Richardson Bridge project from the council's Social Goals Committee. He said the committee had hoped this project would provide two-bedroom apartments for $250, and three-bedroom apartments for $350. He said most of the families in the HACSA Section 8 program can only afford $135-$145 for rent. Mr. McCoy said the Richardson Bridge project is intended to serve very-low- income families. He said the total cost of the project would be about $1,697,313. He listed funding sources. In response to a question from Mr. MacDonald, Mr. McCoy said HACSA would apply for State tax credits by the March 29 deadline and should know within 30 days if the credits would be granted. Mr. Farkas pointed out that this is a competitive process. He said the staff and policy makers have been working very hard with the State to see that these kinds of projects receive funds. Lew Bowers of POD said tax credits for the Richardson Bridge project had been applied for last year but were not received because State rules required that the first mortgage commitment had to be in place first and such a commitment had not yet been secured. He said now the first mortgage commitment has been made and the project is ready to reapply for tax credits. Ms. Bascom suggested that there must be a less complicated way to fund projects such as Richardson Bridge. MINUTES--Eugene City Council February 25, 1991 Page 3 Mr. McCoy explained that HUD 202 programs are almost 100 percent Federally financed, but apply only to seniors and the disabled. He said laurel Grove and the Uhlhorn Apartments were financed by this program. He explained the Laurel Grove financing process. Mr. Van Landingham pointed out that having control over a site was important in the HUD 202 process. Mr. Bowers said the City would probably work with nonprofit developers in the future. He said the Cranston-Gonzalez Act, possibly effective in October, has changed the way the Federal government will finance housing. He said the act is an entitlement program, which means there is a block of money which would be eligible for new construction in Eugene, but in order to get this money the City must have secured non-Federal matching funds. Mr. Bowers said future housing projects will require subsidized financing. He said staff has created a concept for an affordable housing fund which would be a replicable financing program with local control. He said the program could be financed through a General Obligation (GO) Bond which would be partially revenue-backed. He said the revenue would come from rent col- lected from projects the program had financed. Mr. Bowers said the GO Bond would require a public vote and its size could be from $2-$10 million. He said the bond would be tax- exempt and could be sold for 6-7 percent. He said the money would be used to provide mortgage financ- ing for projects which met criteria such as a commitment to servicing those ~ with very low incomes. Mr. Bowers said the rents collected from the project would cover a minimum of 40 percent of the total debt service on the bond. He said taxpayers would pay up to 60 percent of the remainder of the cost. He said this program could be combined with other subsidies, such as tax credits and private mort- gages. However, the affordable housing fund would have the ability to fi- nance 100 percent of any given project. e e Mr. Bowers said the advantages of the fund were that it would result in new housing units, is replicable, would be under local control, and the public's share in its financing would serve as match money and qualify the program for Cranston-Gonzalez Act moneys. Mr. Gleason said the tax from a $2 million GO bond could be $.15 per $1,000, and for a $10 million bond $.40 per $1,000. He said the public would pay a relatively low amount on the debt service. Mr. Boles asked if it would make sense to pursue the new housing policy county-wide since it was being undertaken interjurisdictionally. Second, he asked if there was any way that reemployment of the structurally unemployed could be linked to the construction of new housing units. Mr. Van Landingham said it would probably be easier to convince voters in the City to fund a program such as this than to convince voters county-wide. Mr. Boles said he MINUTES--Eugene City Council February 25, 1991 Page 4 . e e would like to see the housing fund provide seed money to form the basis for a market so people could then get into industrialized housing construction. Mr. Roberts said that ideally it would be good to have a county-wide housing program. However, he said most county revenue measures fail. He said he agreed with the concept of industrialized housing. However, he said some people feel the need to create more good paying jobs and others feel that they are being unfairly taxed to subsidize someone else's business opportuni- ty. He suggested that the political climate should be tested. Ms. Ehrman asked how much of the region's housing shortage would be eliminat- ed if the City participated in an affordable housing fund. Mr. Roberts said there did not seem to be many sources of revenue for housing projects at the County level. He said he hoped the Board of County Commissioners would fol- low through on an initiative to give the City of Eugene and the City of Springfield road funds in exchange for a commitment of Community Development Block Grant (CDBG) moneys for housing. He said the County could be involved in exchanges such as this, but might not be able to contribute much more in General Funds to new housing programs. Mr. Van Landingham reviewed a letter he had written dated February 25, 1991, entitled "Reasons for Emphasizing New Permanent Low-Income Housing over New Emergency Shelter Space." He explained that the Lane County Housing Task Force put high priority on new permanent housing rather than emergency or transitional housing. Mr. Van Landingham said that about one month ago Springfield Mayor Bill Morrisette proposed at a meeting of the Housing Policy Board the creation of a new emergency shelter and transitional housing project. He explained why he continues to believe that permanent affordable housing should be the focus of community efforts. Mr. Van Landingham said the State House of Representatives seems very sup- portive of a trust fund allocation of approximately $35 million from the Homeowner and Renter Refund Program (HARP). He said this fund would probably give priority to local match moneys. Mr. Nicholson asked if the State Constitution makes any significant distinc- tion between counties and municipalities as far as this kind of funding goes. Mr. Van Landingham said the State authorizes cities to have housing authori- ties. He said the City of Eugene contracts with HACSA. Mr. Gleason said that when the council made housing one of its goals it asked City staff to assist County staff in this effort. Mr. MacDonald pointed out that the cost of City staff time spent on the hous- ing issue probably exceeded $100,000. He added that countless volunteer hours have also been spent on the City's housing program. Mr. Boles said he was concerned about the County's ability to contribute to an affordable housing fund. Mr. Van Landingham said it appeared that $35 million would be taken from the HARP, with half going to prevention programs MINUTES--Eugene City Council February 25, 1991 Page 5 . and the other half to housing construction. He said very little of this money would go to a housing trust fund. He said $14 million would be spent over the biennium. e Mr. Gleason said a countywide election on the affordable housing fund would involve all the jurisdictions in the county, most of which do not have Eu- gene's commitment to housing. In addition, he said he was concerned that coordination of all the municipalities would be required for a countywide vote and the City staffs of Eugene and Springfield would bear the burden of staffing this effort. Mr. Gleason said Eugene is the fifth-largest metropolitan area in the North- west, but is located in a very rural county. He said this creates an unfor- tunate contrast. Finally, he said bond rating is very important and would be adversely affected by being part of a package which included municipalities with lower ratings. Mayor Miller said the affordable housing fund concept should be part of the Strategic Financial Plan process. Mr. Gleason said the working relationship between the policy makers and staff of the cities of Eugene and Springfield, and Lane County, on the Housing Policy Board, was invaluable to the success of intergovernmental programs such as affordable housing. Mr. Gleason said the unity of the affected jurisdictions would help convince the Federal government to fund intergovernmental programs. He suggested the groups stay focused on their goals. He suggested that a mechanism was needed to deal with the problems which arise in this kind of relationship. II. FIRE CODE Dick Christensen, Deputy Chief of the Department of Public Safety, reviewed changes and amendments to the Fire Prevention Code. He said the Building Construction Advisory Committee (BCAC) had reviewed the changes and amend- ments at its last meeting. He said the group expressed concerns about regu- lations governing the storage of aboveground fuel tanks and asked that Fire Services regularly apprise them of proposed changes to the code. Mr. MacDonald referred to page 25 of the Fire Code ordinance pertaining to the storage of tires. He said Fire Services should be commended for its inclusion of this regulation. He also referred to page 10 of the ordinance and items 1-5 which are excluded from the definition of fireworks. He said page 28 of the ordinance, as well as following pages, refer to "allowed fire- works." He asked if allowed fireworks were those excluded from the ordinance definition of fireworks. City Attorney Charles Zennache said this was the intent of the ordinance. Mr. MacDonald suggested this point could be made clearer. e MINUTES--Eugene City Council February 25, 1991 Page 6 e e - Mr. MacDonald said the staff briefing on the changes regarding combustible liquids in aboveground storage tanks refers to areas subject to flooding. He said there are other reasons for this regulation. In response to a question from Ms. Ehrman, Mr. Christensen said annual test- ing of fire prevention systems is the responsibility of property owners. Mr. Christensen said Appendices I-A and I-B were adopted in 1987 but their implementation is not complete. He said these items need further discussion. He said regulations pertaining to fireworks were potentially controversial due to proposed fees. III. COUNCIL WORK PLAN Ms. Ehrman asked if the council planned to reassess the situation at 11th Avenue and Willamette Street after a decision had been made about the site at 8th Avenue and Willamette Street. Mr. Farkas said this was the case and that in the spring staff would propose another Request For Proposal (RFP) for the 11th site. Mr. Boles noted an error in the naming of the Eugene Transit Station Site Selection Committee under the LTD Station Siting goal. He additionally noted that Policy 4 in the Retail Task Force Report could be more specifically described. In response to a question from Mr. Nicholson, Mr. Farkas said the study of land use/transportation interaction involved the integration of land use and transportation issues. Mr. Boles said the two issues could not be separated. Mr. Boles said that on March 26, the LTD and the League of Oregon Cities are sponsoring a session in Salem on growth management. He said he planned to attend and suggested that another councilor might also want to participate. Mr. MacDonald referred to Goal V of the Eugene City Council Work Plan. Ms. Bascom said the Marketing and Incentive Program should be specific. Mr. MacDonald suggested that the Goodpasture Island Study be listed as a Public Works Project. Mr. Gleason asked if the work planning process was satisfactory and the coun- cil agreed that it was. MINUTES--Eugene City Council February 25, 1991 Page 7 4It The meeting adjourned at 7:15 p.m. Respectfully Submitted, /~~~-I--:" Micheal Gleason (Recorded by Kris Bloch) mncc 022591 e e MINUTES--Eugene City Council February 25, 1991 Page 8