Agenda Item - 2023-11-13 - Number 06.1.1 - Staff Presentation (PP 22-0005)PP 22-0005 1
Housing Production Strategy (PP 22-0005)
Planning Commission Study Session
November 13, 2023
COMMUNITY
DEVELOPMENT
1
Agenda
1. New Data About Contextualized Housing Needs
(Matt Hastie, MIG)
2. Summary of Current Housing Strategies
(Erik Olson, City of LO)
3. Summary of Stakeholder Interviews To-Date
(Kate Rogers, MIG)
4. Housing Strategies for Initial Discussion
(Erik Olson, City of LO and Kate Rogers, MIG)
5. Next Steps (Erik Olson, City of LO)
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New Data About Contextualized
Housing Needs
Purpose of Contextualized Housing
Needs Assessment
•Required component of a Housing Production Strategy
•Describes current and future housing needs in the context of population
and market trends
•Pulls from Housing Capacity Analysis, additional data sources, City info,
and stakeholder interviews
•Must include:
–Socio-economic and demographic trends disaggregated by race and ethnicity
–Housing measures already adopted by the City
–Market conditions affecting provision of needed housing
–Barriers to development of needed housing
–Estimate of people experiencing homelessness
–Data on rent burdened households
–Housing needs for people with disabilities
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Market Conditions
(For-Sale Housing)
5
Themediansalepricewas$860,000.
The average (mean) sale price was $1,075,000.
The median square footage was 2,300 s.f.
Attached units and condominiums make up a
significant share of home sales (28%).
[Based on RMLS home sales data from 2022]
Market Conditions
(For-Sale Housing)
6
72%0%
8%
20%
Home Sales by Unit Type
Detached Home Manuf. Home
Attached Home Condo
0
3
43
47
31
39
56
67
66
319
0 100 200 300 400
<$100,000
$100,000 - $199,000
$200,000 - $299,000
$300,000 - $399,000
$400,000 - $499,000
$500,000 - $599,000
$600,000 - $699,000
$700,000 - $799,000
$800,000 - $899,000
$900,000+
Home Sales by Price Level
[Based on RMLS home sales data from 2022]
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Change in Sale Price
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$0
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$700,000
$800,000
$900,000
Median Sale Price
Market Conditions
(Rental Housing)
8
Average effective rent:$2,038/mo.
10-year growth:52% or 4.3% per year
10-year inflation:31% or 2.7% per year
Rents peaked in 2022
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Market Conditions
(Rental Housing)
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Housing Affordability
10
•75% of recent sales in Lake Oswego were
priced at least $600,000.
•Homes in this range would be mostly
affordable to households earning at least
$175,000 per year.
•This is well above the median household
income of $123,000.
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Housing Affordability
11
•50% of renter households are rent burdened.
3%
22%
25%
14%
7%
29%
0%
5%
10%
15%
20%
25%
30%
35%
Sh
a
r
e
o
f
H
o
u
s
e
h
o
l
d
s
% of Income to Gross Rent
Publicly Assisted Housing
•State tracks three current subsidized affordable housing
properties in Lake Oswego, with a total of 76 units.
•75 of these units are offered for elderly residents.
•The Marylhurst Commons will offer 100 affordable units for
families. Upon completion in 2024, the total 176 subsidized
units in Lake Oswego will represent 1% of the local housing
stock.
•The Housing Authority of Clackamas County administers over
1,600 Section 8 housing choice. No agricultural worker housing.
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Homelessness
Point In Time Count
•January 2023 Clackamas County Point-in-Time Count: 410 unhoused
individuals (county-wide)
•This is a 31% decrease from 2022 (597 individuals)
Lake Oswego School District 2021/22 Data:
•41 enrolled students experiencing homelessness
•304 children between the ages of 5 and 17 living in poverty.
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20-Year Housing Need - Affordability
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Income Level
(Rounded)
Owner
Units
Renter
Units Total Share Common Housing Product
Extremely Low Inc. < 30% MFI < $27,500 56 149 205 10%
Government-subsidized; Voucher;
Shelter; Transitional
Very Low Income 30% - 60% MFI $27.5k - $55k 95 221 317 16%
Aging/substandard rentals;
Government-subsidized; Voucher;
Manufactured homes
Low Income 60% - 80% MFI $55k - $73k 71 120 190 10%
Aging apartments; Government-
subsidized; Plexes; Aging single-
detached; Small homes
Middle Income 80% - 120% MFI $73k - $110k 134 172 306 16%
Single-detached homes;
Townhomes; Condominiums;
Newer apartments
Upper Income > 120% MFI > $110,000 669 282 951 48%
Single-detached homes;
Townhomes; Condominiums; New
apartments
TOTAL: 1,024 944 1,968 100%
Household Income Segment
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Diversity
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•Oregon: Non-white groups have larger avg. households,
and lower home ownership rate
Population with Disabilities
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7.8%
2.4%
1.7%
2.7%
2.9%
1.1%
2.3%
0% 2% 4% 6% 8% 10%
Population with a disability
Hearing difficulty
Vision difficulty
Cognitive difficulty
Ambulatory difficulty
Self-care difficulty
Independent living difficulty
Share of Population
•Roughly 3,140 disabled individuals
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Veterans
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•6% of the adult population
•63% are 65 and older
•Lower than average poverty level
•21% have some sort of disability
Summary of Current Housing
Strategies
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Summary of Current Housing
Strategies in Lake Oswego
A. Zoning Strategies
–Height/density bonus for affordable developments in certain zones
–Increased code flexibility for ADUs
–Short-term rental regulations
–Mandatory affordable housing for portions of the Marylhurst Special District
and the West Lake Grove Design District (WLG-OC)
B. Reducing Regulatory Impediments
–Removed parking mandates within ½ mile of priority transit
C. Financial Incentives
–Expedites permitting for affordable housing
–Waives system development charges (SDCs) and development review fee for
affordable housing and ADUs
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Summary of Current Housing
Strategies in Lake Oswego
D. Financial Resources
–Used urban renewal funds to support affordable housing units as part of
North Anchor development
E. Tax Exemption and Abatement
–N/A
F. Land Acquisition, Lease, and Partnerships
–Surplus City-owned land / land banking for affordable housing
(Recent example: Construction staging property on Boones Ferry Road will
become 55 units of affordable housing)
–Public-private partnerships with Habitat for Humanity and Mercy Housing
Northwest
–Acquired North Anchor site to convert underperforming commercial asset
into affordable and market-rate housing
–Utilizing surplus land owned by faith-based organization for housing
(Recent example: Marylhurst campus development)
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Summary of Stakeholder
Interviews To-Date
Stakeholders Interviewed
•Market-rate developers and architects
–Experience with single-family, middle housing, and
multi-family
•Non-profit housing providers
–Habitat for Humanity
–Mercy Housing Northwest
•City staff
–Planning
–Redevelopment
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Key Housing Needs /
Gaps in the Market
•Affordable housing for low- and moderate-income
households
•Middle housing (e.g., townhomes, duplexes, cottage
clusters)
•Opportunities for aging in place
•Options for more attainable homeownership
(e.g., condos and middle housing)
•Apartments with family-size units (2-3 bedrooms)
•Multi-family housing outside the Town Center
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Housing Barriers Identified by
Stakeholders
•High cost of land in Lake Oswego
•Few large sites to support multi-family housing
•Neighbor opposition to affordable or higher-density housing can drag out
the process, adding to costs
•Code barriers:
–Design overlay standards are highly prescriptive – can add to cost, limit flexibility
–Tree protection / tree planting and landscaping standards
–Open space standards for multi-family housing
–Setbacks and other standards limit middle housing feasibility
•Process barriers:
–Design review process in design districts adds time and cost
–Building permit review can also be slow
–Often need multiple variances, lengthens process and adds uncertainty
•Public improvements (roads, utilities) can be very costly
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Housing Strategies for Initial
Discussion
Housing Strategy Categories
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Housing Strategies for Discussion: Approach
•Started with DLCD’s “master list” (110 total strategies)
•Filtered out strategies that were:
–Already being implemented by the City;
–Not applicable to Lake Oswego;
–Not authorized by state law or not available in Oregon; or
–Unlikely to have a meaningful impact based on the team’s initial
assessment.
•Strategies grouped together based on similar concepts or
overlapping programmatic elements
•Focus on high-impact strategies or strategies that would require
Council action (i.e. new taxes, bonds, or other revenue sources)
•Lower-barrier strategies were grouped into separate categories for
discussion at future meetings
•City will be “on the hook” to implement the final adopted strategies
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Floor Area Ratio (FAR), density, height, or other types of zoning bonuses
could be offered for affordable housing development
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11 Zoning Bonuses
for Affordable Housing1
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Code Audit and Amendments2
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Minimum Density Requirements
for To-Be-Annexed Land3
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Rezone Land4
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Infrastructure Planning
to Support Housing5
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Modify Systems Development
Charges (SDCs)6
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Construction Excise Tax (CET)7
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General Obligation (GO) Bonds8
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Tax Exemption and Abatement9
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Next Steps
•Refine Housing Strategy Alternatives
(December 2023 - January 2024)
–Provide preliminary recommendations for strategies to
pursue, building on previous tasks
–HPS Task Force #5 –Dec 8, 2023
–Next PC HPS Work Session –Jan 8, 2024
–Next Council HPS Study Session –Jan 16, 2024
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