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Home My WebLink AboutHPSTF 8 Presentation 2024-06-21 ( \\\ DEVELOPM COMUNITY E N T 4_, � o EGo Housing Production Strategy HPS Task Force Meeting #8 June 21, 2024, 1:00pm 1 Agenda - 1. Greetings & Announcements f i-.8 , 4--t. ' ' _ t 2. Minutes— HPS Task Force Meetings#6 (2/16/2024) `� and #7 (3/1/2024) (Kasey Adler, Vice Chair) lii 3. Public Engagement Update (Erik Olson, City of Lake 1 Oswego) 7 4. Draft HPS Review and Discussion (Kate Rogers, MIG) 5. Recap & Next Steps (Erik Olson) 1 ,—u., ei a PP 22-0005 PAGE 1 OF 12 2 Public Engagement Update Project Timeline 2022 2023 2024 TASKS Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sept Oct Project Kickoff Housing Needs Analysis Residential Buildable Lands Inventory Residential Lands Needs Analysis Final Housing Needs Analysis Report HNA Adoption Housing Strategies Alternatives HPS Alternatives Housing Strategies Recommendations Inidal Recommendations Housing Production Strategies Report Draft Report Final Rport HPS Adoption Describe RLNA and introduce strategies Community Engagement [ _I OA'1 0_1,_110 2 sW41/ • HPS Task Force and Stakeholder Meetings E.:") Public Open House/Online Event * Planning Commission/City Council Meeting PP 22-0005 PAGE 2 OF 12 4 Recent Public Engagement HPS Community Forum • March 14, 2024 • -15 attendees HPS Online Open House Survey • March 13 - March 31, 2024 • 134 complete responses Planning Commission / City Council Study Session • April 2, 2024 • Straw polling conducted Letter from Habitat for Humanity • Received May 1, 2024 5 Polling Results ( 1 of 3 ) Strate Survey+ Task City PC Notes/Follow-up gy Forum Force Council Actions Pro-Housing Policies[GENERAL] Support Support - - Recommended Strategies Code Audit and Amendments(Z01[ Support Support YES(7:0) YES(3:2( Include all strateg in Draft HPS. Property tax exemptions for housing Mild Support Two Planning affordable to low-income households Support Commissioners Public-private partnerships for Support Support expressed concerns affordable housing(F04) about the pre Fair Housing Policy and Education(B14) Support Support approved plan sets Rezone Land(Z02) Mild Support forADUs strategy Support Evaluate accessible design incentives or Strong Support mandates(A23) Support Use Tax Increment Financing(TIF)to Split Support support affordable housing development(D10) Affordable Housing Preservation Support Support Inventory(F19) Modify System Development(SDC)fee Support Support schedule(CO2( Pre-Approved Plan Sets for ADUs(A21) Support Support Remove or Reduce Minimum Parking - - PP 22-0005 Requirements(Raiff PAGE 3 OF 12 6 Polling Results ( 2 of 3 ) Survey+ Task City Notes/Follow-up Strategy PC Forum Force Council Actions Strategies Needing Further Discussion Zoning Incentives for Affordable Housing Mild Mild NO(1:6) NO(1:4) Do not include in (ADS) Oppose Support Draft HPS. There was no interest expressed by the PC or CC in combining this with the code audit strategy;only strategy opposed by public. Construction Excise Tax(CET)(D09) Mild Support NO(0:5) NO(0:7) Do not include in Support Draft HPS. Vertical Housing Development Zone Tax Mild Oppose NO(0:7) NO(1:4i Do not include in Abatement(E03) Support Draft HPS, Multiple Unit Property Tax Exemption Mild Mild NO(3:4) YES(4:1) Include in Draft HPS, (MUPTE)(E04) Support Support with criteria that would only make it available to housing with either(1) accessible design or (2)units affordable at 80-120%AM I. Pre-Approved Plan Sets for Middle Mild Mild NO(0:7) NO(0:5) Do not include in Housing Typologies(A20( Support Support Draft HPS. HPS Task Force only recommended this if paired with an affordability requirement. 7 Polling Results ( 3 of 3 ) Strata Survey+ Task City PC Notes/Follow-up gY Forum Force Council Actions Contingent Strategies Housing Trust Funds(D03) - - - - Do not include in Draft HPS. Low-Interest Loans/Revolving Loan Ft,n: PC/CC did not (D13) Community Land Trusts(F03) express interest in these strategies. Preserving Low-Cost Rental Housing to Mitigate Displacement(F05) Not Recommended Home buyer Opportunity Limited Tax - - - - Do not include in Exemption(NOLTE) Draft HPS. PC/CC were fine with excluding this from the Draft HPS. PP 22-0005 PAGE 4 OF 12 8 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 recommended for inclusion in the HPS because it was 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) 9 Draft Housing Production Strategy PP Preview : Discussion Questions • Do you agree with the specific recommendations noted under certain strategies? • Is the proposed Implementation Timeline reasonable? • Are there any needed considerations for implementation that you feel are not captured in the report? • Given the totality of the recommended strategies, and the city's identified housing needs, do you feel that anything is missing? 11 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 $$$;, • • • 2. Remove or reduce minimum parking requirements Near Term Near Term $$$$ • 3. Rezone land Medium Term Longer Term $$ • • • PP 22-0005 PAGE 6 OF 12 12 Specific Recommendations 3. Rezone Land Prioritize rezoning in areas with the greatest potential for higher density multifamily housing — including areas where nonresidential uses are underutilized. Potential zoning districts to consider for this strategy include the Mixed Commerce District (MC) and Industrial District (I). Do you agree with these recommendations? 13 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 $$ • • 5. Evaluate Multiple Unit Property Tax Exemption Medium Term Medium Term $$ • • 6. Pre-approved plan sets for ADUs Medium Term Medium Term $$$? • • • 7. Modify System Development Charge fee schedule Longer Term Longer Term $$$$ • • • PP 22-0005 PAGE 7 OF 12 14 Specific Recommendations 5. Multiple Unit Property Tax Exemption (MUPTE) Evaluate adoption of the MUPTE program with criteria that would make it available to housing with either accessible design (see Strategy 4) or moderate-income units affordable at 80-120% AMI. Do you agree with this recommendation? 15 Recommended Strategies CATEGORY OF NEED: Affordable Housing for Lower- Income Households Facilitate development of government-subsidized housing that meets the needs of low- and moderate-income households. Implementation Time Frame Strategy Begin Complete Cost Effort Affordable Housing for Lower-Income Households 8. Nonprofit Low-Income Housing Exemption Already Complete $.'" • 9. Low-Income Rental Housing Tax Exemption Near Term Near Term $$ • • 4 10. Public-private partnerships for affordable housing Near Term Ongoing $$ • • • 11. Use Tax Increment Financing to support Near Term Longer Term $$$$ • • • affordable housing development 12. Affordable housing preservation inventory Medium Term Medium Term $ ; • • 0 PP 22-0005 PAGE 8 OF 12 16 Specific Recommendations 9. Low-Income Rental Housing Tax Exemption Consider supplementing the adopted Nonprofit Low- Income Housing Tax Exemption with this additional exemption program to offer more options and flexibility. Do you agree with this recommendation? 17 Specific Recommendations 10. Public-private partnerships for affordable housing • Consider donating surplus city-owned land for affordable housing as it becomes available. • Work with faith organizations to utilize excess or underutilized land for affordable housing. Assist with favorable zoning, permitting, and financial incentives. • Continue to leverage federal, state, and regional resources — such as the Metro Affordable Housing Bond —to fund affordable housing in Lake Oswego. • If a new TIF district is established (Strategy 11), use TIF funds to support affordable housing partnerships. This could include addressing infrastructure deficiencies or contributing funding to affordable housing more directly. Do you agree with these recommendations? PP 22-0005 PAGE 9 OF 12 18 Specific Recommendations 11. Use tax increment financing (TIF) to support affordable housing Incorporate affordable housing into the Urban Renewal Plan for the Foothills Neighborhood. LORA currently planning to update the Foothills Refinement Plan, after which a new urban renewal district will be established. The City must include affordable housing as an approved "project" in the Urban Renewal Plan in order for it to be eligible for TIF funding. Do you agree with these recommendations? 19 Recommended Strategies CATEGORY OF NEED: Other The strategy in this category does not easily fit under the other headings, but supports equitable implementation of all recommended housing strategies. Implementation Time Frame Strategy Begin Complete Cost Effort Other 13. Fair Housing policy and education Near Term Medium Term $ • • PP 22-0005 PAGE 10 OF 12 20 Implementation Timeline Is this reasonable, given the relative priority of each action and the Cost and Level of Effort assessments? 2024 2025 2026 2027 2028 2029 2030 1. Code audit and amendments 2. Remove or reduce min. Parking requirements 3. Rezone land 4. Evaluate accessible design incentives or mandates 5. Evaluate Multiple Unit Property Tax Exemption 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 *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. 21 Remaining Discussion Questions • Are there any needed considerations for implementation that you feel are not captured in the report? • Given the totality of the recommended strategies, and the city's identified housing needs, do you feel that anything is missing? PP 22-0005 PAGE 11 OF 12 22 N ext Steps • Planning Commission work session (June 24) • City Council study session (July 16, tentative) • Planning Commission public hearing (Sept 9, tentative) • City Council public hearings (Oct 15 & Nov 5, tentative) 23 PP 22-0005 PAGE 12 OF 12