Item 7: Resolution Approving a Low-Income Rental Housing Tax Exemption - River Road

Home Browse Search

ECC UGENE ITY OUNCIL AIS GENDA TEM UMMARY Action: A Resolution Approving a Low-Income Rental Housing Property Tax Exemption for the Property Located Adjacent to 1410 River Road, Eugene, Oregon (Evergreen Housing Development Group, LLC/ Applicant) Meeting Date: November 26, 2012 Agenda Item Number: 7 Department: Planning and Development Staff Contact: Becky L. Wheeler www.eugene-or.gov Contact Telephone Number: 541-682-5532 ISSUE STATEMENT The City Council is asked to approve a resolution for a 20-year low-income rental housing property tax exemption for River Road Apartments, located near 1410 River Road, map/lot number 17-04-13- 33/04601. The developer of the project is Evergreen Housing Development Group, LLC (Evergreen). Evergreen entered into a purchase and sale agreement for acquisition of the property with Schmitz Homeplace, LLC in June 2012. BACKGROUND The City of Eugene uses federal and local subsidies to promote public-private partnerships that create housing affordable to low-income persons. Affordable housing developers often utilize the 20-year low- income rental housing property tax exemption and the City’s systems development charge waivers to create housing affordable to low-income residents. In October of 2012, Evergreen Housing Development Group, LLC applied for this tax exemption for a project located south of Beltline on River Road. The Eugene-Springfield 2010 Consolidated Plan presents a strategic vision for housing and community development from July 2010 to June 2015. The goals, strategies, and activities outlined in the Consolidated Plan are based on priorities identified through an analysis of community needs and an extensive community outreach process. The 2010 Consolidated Plan identified a need for affordable housing for low-income persons (those at or below 80 percent area median income [AMI]) in Eugene. In turn, the City set a goal of developing 500 new units of affordable housing by June 2015. To date, 136 units have been completed in three developments. An additional 107 units are anticipated to be complete prior to 2015 as part of Bascom Village and Stellar Apartments. The addition of the proposed 216 affordable units would move the City closer to the Consolidated Plan goal. Eugene’s Housing Needs Eugene’s poverty rate is more than 19 percent, and housing costs in the Eugene-Springfield area have risen sharply over the past 20 years. In addition, there are a growing number of seniors, persons with disabilities, and others who are unable to work given the highly competitive job market. These factors, combined with a relatively tight housing market, have resulted in a large number of households with moderate or severe housing cost burdens. The cost of housing, including utility costs is generally considered to be affordable when it equals no more than 30 percent of household income. More than 44 percent of Eugene households have a housing cost burden. S:\CMO\2012 Council Agendas\M121126\S1211267.doc