Agenda Item - 2024-07-16 - Number 09.1 - Presentation - Housing Production Strategy Report (PP 22-0005) 9.1
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Draft Housing Production Strategy
City Council Study Session
July 16, 2024
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Agenda :R :� f
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1. Public Engagement Update yA:
(Erik Olson, City of LO)
2. Draft HPS Review and Discussion
(Kate Rogers, MIG)
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3 e t Steps Olson, City of LO) . k _�
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Public Engagement Update
Recent Public Engagement
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ilii .el) Kate Rogers I MIG Kelly Reid Diana Howell
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Jessica Numanoglu Kyrsten Baumgart Joseph Buck
HPS Task Force Meeting #8
• June 21, 2024
Planning Commission Meeting
• June 24, 2024
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Letter from Habitat for Humanity
Homebuyer Opportunity Limited Tax Exemption (HOLTE)
• 10-year property tax exemption for lower-income homebuyers for
units valued at no more than 120% of city median sales price
• In Lake Oswego, HOLTE could in theory apply to home values of
$940k (120% of median); affordable for households w/ "$200K
income
• Could help to address the need for homeownership options for
moderate-income households
• Not included in the Draft HPS because it was initially not expected to
have a meaningful impact on housing production in Lake Oswego
• Habitat requested to include this additional strategy in HPS
• Argument that this will catalyze affordable homeownership by
reducing property taxes
• Property taxes from new West Lake Grove Townhomes estimated
to be $333/month (3 bedroom) to $375/month (4 bedroom)
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Reconsider Strategy
Homebuyer Opportunity Limited 1 ...,.
Exemption ( HOLTE1
Evaluate adoption of the HOLTE program with criteria
that would make it available to lower-income units
affordable at 80% AMI or less.
Should HOLTE be a recommended strategy in the HPS?
If so, any thoughts on income eligibility?
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Draft Housing Production
Strategy
Recommended Strategies
CATEGORY OF NEED: Overall Housing Production &
Supply
Increase housing production to meet the City's overall long-term
housing need .
Implementation Time Frame
Strategy Begin Complete Cost Effort
Overall Housing Production and Supply
1. Code audit and amendments Near Term Medium Term $$. • • •
2. Remove or reduce minimum parking requirements Near Term Near Term $1 ■
3. Rezone land Medium Term Longer Term $$` • • •
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Recommended Strategies
CATEGORY OF NEED: Increased Housing Choices
Enable and encourage production of housing that can meet a full
range of household needs and preferences. This includes a wider
variety of housing types and sizes, and housing to meet
particular needs such as aging in place and accessibility.
Implementation Time Frame
Strategy Begin Complete Cost Effort
Increased Housing Choices
4. Evaluate accessible design incentives or mandates Medium Term Medium Term $$$$ ■ •
5. Evaluate Multiple Unit Property Tax Exemption Medium Term Medium Term $$-i$ • •
6. Pre-approved plan sets for ADUs Medium Term Medium Term $$$ • • •
7. Modify System Development Charge fee schedule Longer Term Longer Term $$$ • • •
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Recommended Strategies
CATEGORY OF NEED: Affordable Housing for Lower-
Income Households
Facilitate development of government-subsidized housing that meets the
needs of low- and moderate-income households.
Implementation Time Frame
Strategy Begin Complete Cost Effort
Affordable Housing for Lower-Income Households
S. Nonprofit Low-Income Housing Exemption Already Complete $ •
9. Low-Income Rental Housing Tax Exemption Near Term Near Term $$ • •
10. Public-private partnerships for affordable housing Near Term Ongoing $$ • • •
11. Use Tax Increment Financing to support Near Term Langer Term $$$$
• • •
affordable housing development
12. Affordable housing preservation inventory Medium Term Medium Term $ • •
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Recommended Strategies
CATEGORY OF NEED: Other
The strategy in this category ( Fair Housing policy and education)
does not easily fit under the other headings, but supports
equitable implementation of all recommended housing
strategies.
Implementation Time Frame
Begin Complete Cost Effort
Other
13. Fair Housing policy and education Near Term Medium Term $ ■ •
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Specific Recommendations
5. Multiple Unit Property Tax Exemption
( MUPTE)
Evaluate adoption of the MUPTE program with criteria
that would make it available to housing with either
accessible design (see Strategy 4) or moderate-income
units affordable at 80-120% AMI .
Do you agree with this recommendation ?
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Implementation Timeline
2024 2025 2026 2027 2028 2029 2030
1. Code audit and amendments
2. Remove or reduce min. Parking requirements
3. Rezone land W
4. Evaluate accessible design incentives or mandates
5. Evaluate Multiple Unit Property Tax Exemption i
6. Pre-approved plan sets for ADUs
7. Modify SDC fee schedule*
8. Nonprofit Low-Income Housing Exemption
9. Low-Income Rental Housing Tax Exemption
10. Public-private partnerships for affordable housing
11. Use TIF to support affordable housing
12. Affordable housing preservation inventory
13. Fair Housing policy and education T
* Note: The SDC strategy is split into two time frames (2025 and 2029-2030) to reflect the near-term action of
updating SDC rates for cottage clusters and the longer-term action of updating the City's SDC methodology
more broadly. See the discussion on page 23 for details.
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N ext Steps
• Revise HPS Report, as needed
• Planning Commission public hearing (Sept 9)
• City Council public hearing (Oct 15)
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