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Agenda Item - 2021-12-21 - Number 5.2 - Presentation - System Develoment Charge Exemptions Community , 8,,A to Development O J� ° Pro01/ C' REGO� 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 V � o °REG 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 '. m .mn $ 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 Cli ii V V voillly Housing Affordability, City of Bend �eEca ' 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. o tom V wow °RE G 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 0.4W, V wow °REG 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 o tom V01, o °RLGON 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 o to U o 0 G�