HomeMy WebLinkAboutInclusionary Zoning Presentation 4-17-19Local Options for Inclusionary Zoning
created through SB 1533
April 17, 2019
Stephanie Jennings, Grants Manager
Planning & Development Department
1
•What is inclusionary zoning?
•Use of IZ across the country
•Use of IZ within Oregon
•Local market conditions
•Community perspectives
•Questions and discussion
2
Presentation Summary
•IZ typically refers to local programs to build affordable homes as part
of a market rate development
•Goal is to increase the number of affordable housing units and
integrate units within market rate developments
•IZ programs have been adopted by jurisdictions across the county
IZ in Oregon
•Oregon adopted SB 1533 in 2016
•Permits limited form of IZ and repealed prohibition in place since
1999
•Portland is only jurisdiction in Oregon with a mandatory IZ program
3
What is Inclusionary Zoning?
•Programs exist in over 400 jurisdictions in 27 states
•Most impactful programs located in California and the
DC metropolitan area
•Vary dramatically in focus and structure
•Many programs have large homeownership components
•Many offer incentives as well as options for developing
on-site, off-site, or payment of fee-in-lieu
4
Use of IZ outside of Oregon
5
Inclusionary Zoning in Oregon
Program Element Requirements for Mandatory IZ in Oregon
Development Type Applies to multifamily buildings with 20 or more
units
Percentage of Units
Dedicated
Up to 20%of units in eligible structures may be
required to be “affordable”
Affordability for
Dedicated Units
Rents for dedicated units will be affordable to
households earning 80%AMI or above
Tenure (rental and/or
homeownership)
Dedicated units may be sold or rented
Development
Incentives
Must provide one or more development incentives
as specified in legislation and set aside portion of
CET revenue for developer incentives
Fee -in-lieu Option Must provide option to developer to include units
on site or pay a fee to the jurisdiction
•Adopted in 2017 following year long process including
economic analysis and expert panel
•Applies only to buildings with 20 or more units
•Requirements vary by neighborhood market conditions
•Developers offered multiple choices to meet requirements
through on-site development, off-site, or payment of fee-in-
lieu
•Developer Incentives include 10 year property tax
exemption, CET exemption, and waiver of parking
requirements
•422 inclusionary housing units have been produced in 65
housing developments
6
Portland Inclusionary Housing Program
•Market conditions for multifamily development
•Volume of multifamily development in buildings with 20
or more units
•Would require City to reserve portion of CET
resources for developer incentives
•Complex program to develop and implement
7
Considerations for Eugene