Agenda Item - 2021-12-21 - Number 5.2 - Presentation - System Develoment Charge Exemptions Community
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Affordable Housing Fee Exemptions
December 21 , 2 0 2 1
ExistingPolicy
The City currently exempts from payment of System Development Charges
and Development Review Fees:
1. Multifamily rental housing
— Developments of 20 or more units only
— At least 10% of the units are meet affordable housing criteria
— Fee exemption is for 100% of the units in the development
— Units must meet affordability requirement for at least 10 years
"continuously rented, leased or made available for an amount of rent
plus expenses associated with occupancy, such as utilities and fees,
totaling not more than 30% of the income level that is 80% of area
median income according to the Clackamas County Housing Authority's
income limits for affordable housing, adjusted for household size." (LOC
39.06.105.5.a.ii)
2. Any Accessory Dwelling Unit, except that short-term rental use not
o allowed
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Comparison to other cities
• Ashland • Portland
• Bend • Salem
t. : , 114,. - -. 4
• Forest Grove • Tigard '..k , I Li] 4
—. • 8
•
• McMinnville _ _ _
Snowberry Brook, Ashland
MEDIAN
HOME PRICE
k YOUR HOUSEHOLD `6.5.C.`'`7.'
EARNS THIS: ...YOU CAN AFFORD THIS:
150%AMI RENT HOME PRICE
5120.600 $566.950
120%AMI .Man+I' r RENT HOME PRICE
Sg6,480 2412 5452.000
5�CMI,575 Engineer
6
100%AMI RENT HOME PRICE
580,400 * 0 8376.000
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$ 8,562 gystern Operator g Tea�har �Sales7224
80%AMI 57U=8= S7Q,5PB RENT HOME PRICE
$64.300 51608 $299,000
q Social Worker C)Web Deveioper
60%AMI S52,602 559.898 RENT HOME PRICE
' (] S4524p 1.206 $222.25}
`' Photographer
N.
��'�/ 534.263 Salesperson
f Y'rI { Nursing Assistant ram, l.1mhR.wor.o „ nw11.. a.wa.,
S �J 533.506 Rec ti4�W4rkeC t31 534.727 ww.....r...
.47?20.5 rn e3o-0eouee1-Stale raraaeet
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Housing Affordability, City of Bend
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Rental versus For-Sale Affordable Housing
111 SDC Exemption SDC Deferral
Ashland Both Types Both Types
Bend Both -
Forest Grove - Both
Lake Oswego Rental Only -
McMinnville Both -
Portland Both -
Salem Both -
Tiga rd Both -
*Forest Grove offers no exemption but defers payment of SDCs until issuance of
Certificate of Occupancy.
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Income Targets
City At or Below % AMI* At or Below % AMI
- . al Housing • r-Sale Housing
Ashland 60% 80%
Bend 60% 80%
Forest Grove 60% 80%
Lake Oswego 80% -
McMinnville 80% 80%
Portland 60% 60%
Salem 80% 80%
Tigard 80% 80%
*Area Median Income (AMI) based on HUD, county, or State Housing and Community Services
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Number of Housing Units and Years
4Number of Units that years units must remain
must be affordable affordable
Ashland Same as 30 (For-Sale); or
exempted/deferred 60 (Rental)
Bend Same as number exempted 30
Forest Grove Same as deferred Deferred until Certificate
of Occupancy only
Lake Oswego 10% 10
McMinnville Same as number exempted 10
Portland Same as number exempted 60
Salem Same as number exempted 30
Tigard Same as number exempted 20
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Conclusion and Recommendation
Staff requests Council direction for amending the SDC exemption (LOC
39.06. 105.5) and Master Fees to:
• Allow fee exemption for For-Sale units that are affordable for families
earning 80% AMI or less
• Require that fee-exempt Rental units be affordable for families earning
60% AMI or less (revise from 80%)
• Apply SDC exemption only to units meeting the criteria; or consider
allowing blended rate to encourage "mixed-income" communities
• Require that fee-exempt units be affordable for at least 50 years (same as
North Anchor DA); or fees are due (pro rated fees with interest)
• City Attorney to develop standard covenant language for Rental and For-
Sale projects
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