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HomeMy WebLinkAboutPresentation - Housing Tools and StrategiesHousing Tools & Strategies City of Eugene January 14, 2019 Housing Tools & Strategies Identify barriers to housing affordability, availability, and diversity of type, with 4 elements •Identify housing issues through stakeholder engagement; •Identify potential tools, strategies, and actions; and •Evaluate potential tools, strategies, and actions; •Direction from council. Create a Construction Excise Tax (CET) •0.33 % starting July 1, 2019 •0.50 % starting July 1, 2020 •Rate applies to all construction types •Total tax on any single project capped at $1 million •In first 2 years, City will offset cost of CET paid by applicant with an equivalent decrease in SDCs •City will designate funds to make SDC funds whole •Establish advisory committee to recommend allocation of funds •Designate $500,000 per year of City funds to the Affordable Housing Fund •Council Review program every 2 years Increase local funds for Affordable housing Affordable Housing Funding 2002-2017 $800,000 $900,000 $1,000,000 $1,100,000 $1,200,000 $1,300,000 $1,400,000 $1,500,000 $1,600,000 $1,700,000 $1,800,000 FY02/03 FY03/04 FY04/05 FY05/06 FY06/07 FY07/08 FY08/09 FY09/10 FY10/11 FY11/12 FY12/13 FY13/14 FY14/15 FY15/16 FY16/17 FY17/18 Federal Funds for Local Affordable Housing Programs CDBG Funds HOME Funds How Residential CET Revenue Must be Spent 15% Downpayment Assistance 50% Local Affordable Housing Incentives 35% Affordable Housing Programs & Incentives How Commercial CET Revenue Must be Spent 50% Programs Related to Housing 50% Flexible Dollars Exemptions Affordable Housing Developments eligible for System Development Charge Waivers under Eugene Code 7.725. Developments exempted from property taxes through the Multi-Unit Property Tax Exemption Program under Eugene Code 2.945. Newly constructed single family homes or condominiums sold to homebuyers for $250,000 or less. Target Price to be indexed and adjusted annually. Potential Types of Housing Programs Fund range of projects including: Permanent Affordable Rental Housing Affordable Homeownership Housing Transitional Housing Mobile Home Parks Tiny Homes Examples of uses Construction costs Land purchase Acquisition costs Rehabilitation and repair assistance Questions & Discussion