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HomeMy WebLinkAboutItem 02 Housing Strategy Update AGENDA ITEM SUMMARY Meeting Date: 6/11/2018 Meeting Type: Work Session Staff Contact/Dept.: Sandy Belson Staff Phone No: 541-736-7135 Estimated Time: 50 min. S P R I N G F I E L D C I T Y C O U N C I L Council Goals: Promote and Enhance our Hometown Feel while Focusing on Livability and Environmental Quality ITEM TITLE: Housing Strategy Update ACTION REQUESTED: Review the progress made on addressing housing needs through implementation of the Council’s Housing Strategy. Provide further direction on two aspects of that Strategy: 1) encouraging construction of accessory dwelling units (ADUs) by waiving system development charges for dwellings constructed between the city limits and UGB and 2) expanding options for temporary shelter. ISSUE STATEMENT: In October 2016, the City Council started working with staff to articulate the city’s housing values, review city’s housing policies, and to research current needs. The City identified key findings based on the data analysis and interviews with people involved in the provision of housing. Based on this understanding of the current housing situation, over the course of several work sessions in the Spring of 2017, the Council developed an affordable housing strategy to address the low supply of housing and to foster housing choice and affordability in the short and long term. Over the past year, the City has made progress on implementation of the Council’s Housing Strategy but there is more to be done. ATTACHMENTS: Attachment 1 – Council Briefing Memo Attachment 2 – Housing Strategy Update – June 2018 Attachment 3 – Portland Resolution No. 37353 Attachment 4 – Letter from the Springfield Shelter Rights Alliance DISCUSSION/ FINANCIAL IMPACT: Council has already provided a system development charge (SDC) waiver for ADUs within the city limits. Recently the state legislature clarified that ADUs are allowed on residential property in UGBs outside of city limits. As further described in ATT 1, the request before Council is to confirm if the City’s SDC waiver should apply to the urban unincorporated area. Additionally, staff seeks guidance on approaching the Springfield Utility Board and Rainbow Water District to request consideration of SDC waivers for ADUs; guidance with respect to short term rentals research in Springfield; and guidance on waiving SDCs when an ADUis used as short term rental. Staff also seeks Council direction on expanding temporary shelter options in the City. The financial impact of expanding options for temporary shelter depends on the approach taken, as noted in ATT 1. Based on Council’s direction, staff will further develop ideas and bring them back to Council for further discussion and analysis. M E M O R A N D U M City of Springfield Date: 6/4/2018 To: Gino Grimaldi COUNCIL From: Tom Boyatt Sandy Belson and Erin Fifield BRIEFING Subject: Housing Strategy Update MEMORANDUM ISSUE In October 2016, the City Council started working with staff to articulate the city’s housing values, review city’s housing policies, and to research current needs. The City identified key findings based on the data analysis and interviews with people involved in the provision of housing. Based on this understanding of the current housing situation, over the course of several work sessions in the Spring of 2017, the Council developed an affordable housing strategy to address the low supply of housing and to foster housing choice and affordability in the short and long term. Over the past year, the City has made progress on implementation of the Council’s Housing Strategy but there is more to be done. COUNCIL GOALS/ MANDATE Promote and Enhance our Hometown Feel While Focusing on Livability and Environmental Quality HOUSING STRATEGY UPDATE In Spring of 2017, the Council identified six strategies to both increase the supply and accessibility of housing throughout the housing continuum. Attachment 2, Housing Strategy Update – June 2018, reports on the progress made on implementation of the Council’s Housing Strategy. There are two aspects of the Housing Strategy for which staff seek Council direction, presented below. ENCOURAGE ACCESSORY DWELLING UNITS The City recognizes that there is a lack of affordable housing within the community. One aspect of the Council’s affordable housing strategy is to encourage construction of ADUs, thereby adding market-rate small-scale rental dwellings to the tight housing supply. One way to promote this type of infill development is by waiving system development charges (SDCs), making construction more affordable. As the City continues this program, a few questions have come up for which staff seek Council direction. Offer SDC waivers outside city limits? In compliance with state legislation passed in 2017 (Senate Bill 1051) and 2018 (House Bill 4031), the City is again amending the development code to allow ADUs within the urbanizable area of Springfield’s urban growth boundary. The Planning Commission held a public hearing and has recommended code amendments which were presented to Council at a public hearing on June 4. A second reading of the ordinance is scheduled for June 18. Attachment 1, Page 1 of 5 MEMORANDUM 6/7/2018 Page 2 In response to public testimony, the Planning Commission passed a motion requesting that the City Council consider waiving the SDCs for ADUs being developed in the urbanizable fringe based on the reasoning behind ADUs and the need for low income housing. Section 3.406 (1) of the Springfield Municipal Code states that the City will impose SDCs on all new development in the urbanizable area with the exception that the sanitary sewer SDC shall not be imposed outside the city limits until such time as the property is to be connected to the sanitary sewer system. The language waiving the city’s SDCs in Resolution No. 2017-15 does not limit the waiver to ADUs permitted within the city, so ADUs permitted within the urbanizable area would also qualify for the exemption unless Council directs staff to prepare a resolution stating otherwise. Question 1: Does Council want to waive the SDCs for ADUs in the urbanizable area? Partner agency SDCs Last June, Council directed staff to request our partner agencies, Willamalane Parks and Recreation District and the Metropolitan Wastewater Management Commission (MWMC) to also consider waiving SDCs for ADUs to maximize the incentive for property owners to construct an ADU. As reported in the July 20, 2017 Communication Packet Memo to Council, Willamalane’s legal counsel determined that state law does not permit Willamalane as a special district to waive/discount the SDCs for certain purposes (including affordable housing or accessory dwelling units). On May 11, 2018, the MWMC passed Resolution 18-09 that allocates resources in the Regional Wastewater Program Budget to pay the SDCs for ADUs in Springfield that are newly constructed small homes. The program (which services small homes in Springfield and Eugene) will start on July 1, 2018 and sunset on June 30, 2019 or upon the expenditure of $100,000, whichever comes first. Since the discussion of SDCs with Council last year, staff learned that the Springfield Utility Board (SUB) also collects SDCs for water system improvements. Staff was unaware of SUB’s SDCs because SUB collects the SDCs directly (the City collects the SDCs on behalf of Willamalane and MWMC) and uses different terminology. SUB’s water SDC for an ADU ranges from $3404 to $4776, depending on the elevation of the dwelling. (Homes in upper elevation levels cost more to service due to additional pumping costs.) SUB has hired a consultant and is undertaking a review of its SDC methodology. Rainbow Water District anticipates updating its SDCs as well, likely in 2019. Rainbow Water District would charge $2541 in SDCs for an ADU in the urbanizable area. Question 2: Does Council want to direct staff submit a request to SUB and Rainbow similar to those we made to Willamalane and MWMC? Short term rentals During discussion of the code amendments for ADUs, Council asked staff to consider the impact of short –term rentals on the city’s housing supply. Based on interviews with City of Eugene staff, research of hospitality websites, and citizen comments, it is clear that short-term rentals do exist in Springfield and are being advertised in online web portals. There may be some effect on the housing supply, but based on this limited research, staff have concluded that there is not likely a significant effect city-wide. Attachment 1, Page 2 of 5 MEMORANDUM 6/7/2018 Page 3 To monitor short-term rental activity, the City of Eugene contracts with Host Compliance (https://hostcompliance.com) at a cost of $5000 per year. Host Compliance provides Eugene with a listing of short-term rental listings. If Springfield is interested in a more complete analysis of short-term rentals in Springfield, Council could direct staff to contract with a company to provide this type of report. Question 3: Does Council want staff to contract for a report of the prevalence of short-term rentals in Springfield? The City of Portland has been “waiving” SDCs for ADUs for six years. This program has been very successful, such that almost a quarter of all new single-dwelling residential permit applications are ADUs1. Until this year, the focus of Portland’s waiver has been on increasing the housing stock and providing flexibility in how the ADUs may be used. In some cases, the income from a short-term rental may allow a homeowner to stay in the home or pay back construction costs. After a few years, short-term rentals may become long-term rentals. This year however, the Portland City Council determined that although ADUs are allowed to be used as short-term rentals, such rentals do not advance the City’s affordable housing goals. As shown in Attachment 3, Resolution No. 37353, adopted on May 2, 2018, Portland requires that property owners receiving an SDC waiver must sign a restrictive covenant that provides that the ADU shall not be used as a short-term rental for ten years unless the SDCs are repaid at 150% of the current SDC rate. The City is currently in negotiations with Airbnb to facilitate the enforcement of this requirement as well as collection of transient room tax. Short of contracting with a firm to monitor short-term rentals in Springfield, or in having conversations with Airbnb (and perhaps other on-line hospitality services), enforcement of a recorded covenant in Springfield would be on a complaint basis. Question 4: Does Council want to exclude property owners using ADUs as short-term rentals from benefiting from the SDC waiver? EXPAND OPTIONS FOR TEMPORARY SHELTER The need remains great In 2017, over 2,100 people who identify Springfield as their home were homeless at least one time during the year. In Lane County, over 15,000 people were homeless in 20172. During the 2016-17 school year, Springfield School District worked with 528 students (pre-K through 12th grade) who did not have permanent housing (i.e. they were doubled up with another household, living in a shelter, living in a motel, or living on the street). At any given point, G Street OASIS works with over 20 families in Springfield who are homeless and in search of services and resources. Other than a church opening an emergency shelter indoors, the Overnight Parking Program is the only year-round shelter program available to the homeless in the City of Springfield. To participate, an individual must own or have access to a vehicle, camper or trailer unless the host provides an option for shelter. With only 12 active spaces for individuals to park, the City’s Overnight Parking Program is not meeting the need of those who are homeless and despite efforts of the Springfield Shelter Rights Alliance, has not been able to expand to accommodate additional people. 1 Small homes go big: Accessory Dwelling Unit (ADU) development soars in Portland https://www.portlandoregon.gov/bps/article/484726 2 According to Lane County’s Homeless Management Information System (HMIS) Attachment 1, Page 3 of 5 MEMORANDUM 6/7/2018 Page 4 Left without other options, people live in the streets, under bridges, along the railroad tracks, in parks – places that were not designed to house people. These homeless camps may cause harm to the environment and require public funds dedicated to clean-up. They also may alter the intended use of these areas (such as public parks) as other people may be reluctant to go to those areas. In some cases, the homeless end up breaking the law by trespassing just to find a place to sleep or rest. City staff in the Operations and the Environmental Services Divisions routinely clear illegal homeless camps on public property and along the riverbanks in Springfield. Folks sleeping in their vehicles on the side of the road do so illegally, and must continually move their vehicles in order to avoid scrutiny. The City’s code enforcement officers routinely receive complaints of illegal camping and sleeping in RVs. When City staff tells people who are unhoused they can’t sleep on public property, they can’t sleep along the riverbank, they can’t sleep in their vehicle on the street or parked in someone’s driveway, where can staff tell these individuals they’re allowed to sleep? Springfield’s Overnight Parking Program Springfield’s Overnight Parking Program started in 2014 as a pilot project to address what was seen as the temporary need of certain individuals and families to have a safe space to park their car for a number of months. Such a program gives certainty to individuals and families, knowing where they’re sleeping that night, that they won’t be harassed to move, that they can leave their possessions in a safe spot and not need to carry them around, and that their kids can continue to attend the same school. The program connects folks who are unhoused to a site host (e.g. a church community), as well as a social service organization with other services to offer. The municipal code allows churches and light-medium industrial zoned sites to host up to three vehicles/campers/trailers as part of this program. Sites in Springfield are managed by St. Vincent de Paul (for singles/couples), and Catholic Community Services (for families with children who participate in the G Street OASIS program). These agencies ensure that participants have access to a bathroom and trash service; some site hosts also provide electricity, and thus heat and light in the winter. The City has allocated $10,000 toward to the program to reimburse agencies to cover the cost for port-a-potties and staff time. Sanipac is currently donating trash collection services. In Springfield, there are currently seven (7) sites – all churches – that participate as site hosts under this program, for a total of twelve (12) spaces. According to St. Vincent de Paul, there are currently 151 people on the waitlist for the parking program in the Eugene/Springfield area. In 2017, Council looked to the Springfield Shelter Rights Alliance (SSRA) to help with the expansion of the program. SSRA wrote letters, contacted churches, visited and reached out to Industrial Sites they felt could serve as a good site for the program. But the program has not seen a net increase in host sites. Ideas for expanding the Overnight Parking Program in Springfield The SSRA is committed to continuing to help expand this program. Included as Attachment 4 is a letter from the SSRA, offering input on the program, identifying barriers, and proposing options. Staff are also aware of similar programs in other jurisdictions that may offer solutions on how to expand the program here in Springfield. Such options include: a) Continue with efforts to expand church host sites Attachment 1, Page 4 of 5 MEMORANDUM 6/7/2018 Page 5 b) Continue with efforts to partner with eligible industrially zoned property owners to host a site c) Allow other service organizations to also administer the overnight parking program, possibly easing the burden on current partners to find and manage sites d) Provide financial incentives to host sites or service organizations participating in the program e) Expand the locations eligible where folks can sleep in their car for an extended period of time (i.e. beyond churches and industrial properties). This expansion could consist of allowing the overnight parking: a. At the sites of community or service organizations, b. On property within other zoning districts. Ideas to expand the City’s response to the homeless Expanding the Overnight Parking Program is the only effort articulated in the Council’s Housing Strategies to provide a safe space for homeless individuals and families to sleep. Whether the options listed above will result in additional parking spaces remains to be seen. Arguably there will still be individuals and families with a need to have a safe space to sleep for a number of months. Over the past year, staff have heard innovative ideas from the Mayor, City Councilors and local service providers and residents on ways to address the need for more temporary safe spaces to sleep, beyond the Overnight Parking Program. Such ideas include: a) Develop new ADUs specifically for G Street OASIS families b) Develop a new RV park c) Create a cluster of tiny houses d) Support pilot projects and/or concept papers from the community to test new ideas e) Support community efforts for additional funding to help prevent homelessness f) Allow folks to sleep in a recreational vehicle next to a house on private party with the owner’s permission (an expansion of the City’s emergency medical hardship program) g) Develop permanent housing units specifically for homeless families Question 5: Is Council supportive of expanding options for temporary shelter in Springfield? If so, are there ideas Council supports or would like staff to prioritize? Next steps If Council is supportive, staff could work with the Springfield Shelter Rights Alliance (SSRA) and/or the Community Development Advisory Committee and other community partners on ideas to expand the number of safe spaces for people to sleep. Staff will bring project or program ideas to Council this fall for further discussion. RECOMMENDED ACTION: Review the progress made on addressing housing needs through implementation of the Council’s Housing Strategy. Provide further direction on two aspects of that Strategy: 1) under which situations the City would encourage construction of accessory dwelling units by waiving system development charges and 2) expanding options for temporary shelter. Attachment 1, Page 5 of 5 ATT2 - Strategy Update page 1 Attachment 2 HOUSING STRATEGY UPDATE – JUNE 2018 In 2016, the Springfield City Council directed staff to evaluate housing needs in the community. The analysis identified key findings and contributing factors affecting the housing supply and affordability. Recognizing that existing partnerships with local and regional groups were already helping to create more affordable housing options, the Council wanted to identify what the City could uniquely do to improve housing options. These efforts would be in addition to work to stimulate economic development and funding for human services and which also factor in to housing affordability equation. In Spring of 2017, the Council identified six strategies to both increase the supply and accessibility of housing throughout the housing continuum. This memorandum is a progress report on implementation of the Council’s Housing Strategy. Strategy 1. Expand Overnight Parking Program Springfield’s Overnight Parking Program started in 2014 as a pilot project to address what was seen as the temporary need of certain individuals and families to have a safe space to park their car for a number of months. The municipal code allows churches and light-medium industrial zoned sites to host up to three vehicles/campers/trailers as part of this program. Sites in Springfield are managed by St. Vincent de Paul (for singles/couples). Last year, the City began working with Catholic Community Services to manage sites for families with children who participate in the G Street OASIS program. The City also doubled its allocation (now $10,000) to reimburse agencies to cover the cost for port-a-potties and staff time and Sanipac agreed to donate trash collection services. The Council looked to the Springfield Shelter Rights Alliance (SSRA) to help with the expansion of the program. SSRA wrote letters, contacted churches, visited and reached out to Industrial Sites they felt could serve as a good site for the program. But the program has not seen a net increase in host sites. In Springfield, there are currently seven (7) sites – all churches – that participate as site hosts under this program, for a total of twelve (12) spaces. Strategy 2. Contribute to Income-Qualified Housing Development Use HOME funds for affordable housing development Through a partnership with Eugene, Springfield is able to access funds as part of the federal HOME Investment Partnership Program (HOME). These funds are targeted for the development Attachment 2, Page 1 of 8 ATT2 - Strategy Update page 2 of rental housing that is affordable to low-income residents, particularly projects that will result in a net increase of new housing units. HOME funds are one of few resources the City receives to put toward affordable housing; however, the program comes with a number of federal requirements that require a significant amount of time on the part of the developer, and City staff, to create and monitor a successful project. Additionally, developing affordable housing is dependent on scarce resources like government subsidies and tax credits, due to high development costs and limited revenues due to lowered rent payments. Developers are now looking at alternative development models that would allow them to still provide affordable housing to low-income residents, but in a long- term sustainable way. In Fall 2016, HOME funds were allocated to St. Vincent de Paul (SVDP)’s Myrtlewood development, located at 1072 Main Street in Springfield. HOME funds awarded represent less than 10% of the total projects costs; other resources include competitive Low-Income Housing Tax Credits from the State, an Oregon Housing and Community Services grant, a donation of land from the Church of the Brethren, and a bank loan. The Myrtlewood is a new construction of a 35-unit apartment building (all 1-bedroom units) for low income households, including 8 units for persons with developmental disabilities. An older 9-unit motel-turned-apartment previously on the site was demolished in order to make room for the new apartment; Eugene staff have worked to relocate the residents. Completion is planned for Fall 2018. Staff are working with developers to identify potential future affordable housing projects in Springfield that would be a good match for HOME program funds. After years of working to address federal concerns regarding the required environmental review, and previous regulatory violations, Homes for Good (formerly HACSA) recently purchased a site in Glenwood for the future home of Glenwood Place, a multi-family affordable housing project. There are a number of outstanding issues to work through, most notably the cost of needed street infrastructure in Glenwood, as well as parking options for the project; conversations between the City and Homes for Good continue to be positive with both sides committed to working together to find solutions. The City had previously awarded HOME funds to this project before the federal concerns arose, and subsequently put those funds toward other projects that were timelier. The City anticipates Homes for Good will re-apply and request HOME funds again when the project is further along (estimated in 2020) In the meantime, the City is focused on working with developers to consider new models of providing affordable housing projects in Springfield, including mixed-income housing, Attachment 2, Page 2 of 8 ATT2 - Strategy Update page 3 converting vacant buildings into residential units, and potentially developing a new manufactured home park. The next Request for Proposals (RFP) will be in Fall 2018. Development Application Fees The City continues to waive development application fees for registered non-profits in order to encourage new construction of affordable housing. Affordable housing can be either newly constructed rental or homeownership units. Rental units must be targeted to households with incomes below 60% area median income, while homeownership units must be sold to households with incomes below 80% area median income. Property tax exemption for low-income housing Property tax exemptions are one tool available to incentivize an increase to the supply and affordability of housing. Oregon Revised Statutes (ORS) 307.515 through 307.537 allows cities to establish a program exempting low-income rental housing from ad valorem taxes for a property for twenty years. The purpose of the exemption is to enable rents to be affordable to low-income residents (income at or below 60 percent of the area median income) by requiring the savings from the property tax exemption to be reflected in lower rents. Exemptions further help to make housing development in Springfield more feasible when paired with HOME funds, and more competitive for state tax credits given the local investment. Council expressed support for reinstating the City’s Low-Income Rental Housing Property Tax Exemption program, and has held multiple work session in Spring 2018 to give direction on policies and guidelines for the program. One June 4, 2018, Council held a public hearing and a first reading of the Ordinance that would amend the Springfield Municipal Code and reinstate the program. On June 18, 2018, Council is scheduled to hold a second reading and make a final decision on the Ordinance for the amendments to the Municipal Code and the Resolution to update the Standards and Guidelines of the program. Following approval of the Ordinance and Resolution, the City will inform other taxing districts of the program and formally request their support for the exemption for their portion of the tax levy. Strategy 3. Encourage Construction of Accessory Dwelling Units (ADUs) An ADU is a secondary, self-contained dwelling that may be allowed in conjunction with a detached single-family dwelling. It has a kitchen, bathroom, living, and sleeping area that are completely independent from the primary dwelling. ADUs add accessible and affordable units to the housing stock, provide flexibility for changes in household size, allow for intergenerational living and onsite caretakers, make efficient use of land, and maintain neighborhood stability and property values. Attachment 2, Page 3 of 8 ATT2 - Strategy Update page 4 Temporarily waive System Development Charges (SDCs) On June 5, 2017, the City Council passed Resolution No. 2017-15, temporarily waiving the city’s systems development charges for newly permitted accessory dwelling units during the period from July 1, 2017 through June 30, 2019. On May 11, 2018, the Metropolitan Wastewater Management Commission passed a resolution that allocates resources to pay the SDCs for ADUs in Springfield that are newly constructed small homes until June 30, 2019. Photo: Small Home Oregon Revise development code to make it easier and potentially less expensive to add an ADU On March 5, 2018, the City Council passed Ordinance 6376 amending the development code. That ordinance went into effect on April 4, 2018. On June 4, 2018, the Council held a public hearing and first reading of an ordinance to allow ADUs on residentially-zoned property in the urbanizable fringe. A second reading and adoption is scheduled for June 18. Promote awareness & possibilities for ADUs The city has conducted various efforts through the news media and social media to encourage ADUs. Staff developed an updated brochure and a webpage on ADUs. Currently, students in Professor Fifield’s architecture class at the University of Oregon are putting together a Booklet on ADUs to help property owners with the development process in Springfield. On May 15, 2018, the city received its first application for an ADU since 2013. Strategy 4. Secure Property for Targeted Residential Development CDBG funds for acquisition Through the Community Development Block Grant (CDBG) One-Year Action Plan, Council has prioritized funds toward the strategy to increase the supply of affordable housing. CDBG funds are ineligible to be used toward the cost of new construction, CDBG funds can best be used as a tool for acquisition of land or property that can then be developed for new units. When staff spoke with developers about Attachment 2, Page 4 of 8 ATT2 - Strategy Update page 5 barriers to create affordable housing, developers noted the difficulties in buying land, given the uncertainty of the site, including unknown environmental concerns that would need to be mitigated in order to use federal funds. Developers indicated that one solution would be for the City to acquire land, and make it available to developers through an RFP, and possibly paired with additional incentives, such as HOME funds. With the City’s priority to use federal funds toward the creation of new units, staff are exploring the best means toward acquiring land or property with CDBG funds in the current real estate market. This includes assisting developers with the cost to acquire publicly owned land, as well as looking at available land for different types of development. Any process to acquire land for affordable housing would first need an environmental review conducted by staff, a project recommendation by the Community Development Advisory Committee (CDAC), and final approval by Council before funds would be committed to purchasing the property. Publicly owned property In the City’s efforts to identify land for the development of affordable housing, staff are first looking at what the City, and its public partners, currently own and may be underutilized or could be declared surplus property. In this search, staff identified a City-owned property at 727 S. 57th St that had been purchased in 2010 with the intent of building a future fire station to serve new development in the area; the Fire Department has since determined that there is no longer a need to construct a new fire station at this location. The property includes a single family home on 1.5 acres zoned low- density residential. Following Council direction, staff are moving forward to make this property available to an affordable housing developer and award CDBG funds to offset the costs of acquiring the property and improving the street frontage. Staff anticipate the project to result in at least 8 new units of affordable housing for homeownership, possibly accommodating accessibility needs and larger families. This summer, staff plan on releasing an RFP for affordable housing on the property, with the aim to bring proposals to Council by the end of the year. Staff identified a one-acre property at the northeast corner of Q Street and 16th Street that is owned by the City and Springfield Utility Board (SUB). The City and SUB each have the right of first refusal on the other’s lots. The property is zoned medium density residential. Sarah Homister, a graduate architecture student at the University of Oregon, has been designing housing for this site as part of a “missing middle” architecture studio. Over the next few months, the City will be working with SUB to determine if this property could be made available for housing and with a developer to determine if it is a feasible site for housing. Attachment 2, Page 5 of 8 ATT2 - Strategy Update page 6 Strategy 5. Assist Homeowners with CDBG Funds The City continues to support and administer the Home Repair and Downpayment Assistance programs with the use of federal Community Development Block Grant (CDBG) funds. Springfield Home Repair Program The City’s Home Repair Program provides financial assistance to low-income homeowners (earning less than 50% area median income) for eligible repairs and maintenance to correct conditions that create a threat to the health and safety of occupants. Common repairs include fixing failing electrical, plumbing, and heating systems, repairing leaking rooves, and installing accessibility improvements, such as ramps and handrails. The program is funded with federal CDBG funds, and is administered by City of Springfield staff. How it works: Up to $5,000 is available to qualified households over a five year period. After five years have passed, the property owner is again eligible for another grant. Work is performed by licensed and bonded contractors. City of Springfield administers the program For FY2016-17, this program served 60 different households. Of that total, 38 were elderly homeowners, and 34 were disabled. Half of the households served are defined as extremely low- income, earning less than 30% of area median income. It is anticipated for FY2017-18 and FY2018-19 that a similar number of households will be served. As determined by Council’s recent analysis of funds allocated to the program, and subsequent allocation through the FY2019 CDBG One Year Action Plan, there are sufficient funds to continue to administer this program through FY2019. Down Payment Assistance for Home Ownership The Springfield Home Ownership Program (SHOP) was created to encourage home ownership in Springfield by assisting low and moderate income resident (earning less than 80% area median income) with the first time purchase of a home. The City can loan up to $7,000 toward the down payment and closing costs of buying a qualified home in Springfield. The loan is interest free, and no repayment is required until the home is sold, refinanced, transferred or no longer the Attachment 2, Page 6 of 8 ATT2 - Strategy Update page 7 buyers primary residence. The buyer must contribute at least 50% of the minimum down payment required by the primary lender. It is anticipated that this program will serve an average of 10 households each year. With Council’s allocation of CDBG funds from prior years, there are sufficient funds to support this program through at least FY2019, if not beyond. With the cost of home prices outpacing incomes, staff have seen a drop in participation in the program with many interested residents unable to qualify for a loan or find a home that would qualify for the program. City staff is exploring additional ways to encourage homeownership in this current housing crisis. Strategy 6. Promote Housing of Diverse Types Consider a property tax exemption to increase housing diversity The City Council considered several property tax exemptions and determined that the multi-unit property tax exemption enabled through ORS 307.600-637 is the best tool to stimulate construction of market- rate multiple-unit housing in the core areas of Springfield. Council first identified three areas for potential exemptions: Q Street, Mohawk, and East Main Street areas. Council then asked staff to consider Downtown and consider the impact of a tax exemption program on the Downtown Urban Renewal District. Over the next few months, staff will be looking to conduct some additional financial analysis and present findings and options to Council in the fall. Explore “Missing Middle” housing types Marisol Cervantes, an intern from the University of Oregon, created a handbook showcasing examples of “Missing Middle” housing types that built in Springfield. Missing Middle housing types are low-rise residential buildings that fit between detached single-family homes and mid- rise apartments. The handbook is designed to help provide residents, planners and anyone who is involved in the conversation of missing middle housing. Update Development Code The City Council identified updating the development code as a high priority for the City. The Springfield Development Code was adopted in 1987 as the principal tool to implement the goals, objectives and policies of the Metro Plan. Other than a general “housekeeping” update, the Code has been revised only to comply with state or federal laws, or as directed by Council in response to a specific issue or objective. The Code has lost its cohesiveness and needs revision. Attachment 2, Page 7 of 8 ATT2 - Strategy Update page 8 The code update is an opportunity to ensure that housing of diverse types is clearly permitted. The city’s regulatory environment should accommodate housing throughout the continuum to meet the changing demographic and economic needs of Springfield residents. In 2017, Council authorized sufficient budget to allow for the hiring of a limited duration project manager for the code update. Advertisement for this position did not result in a hire. The City then looked internally and recently identified Mark Rust as a qualified project manager for the code update. Mark is a senior planner who joined Springfield staff last summer. The city will back-fill his position in current planning with limited duration planner. Mark will start working this summer establishing a project work plan to present to Council this fall. Create user-friendly guides to navigate development code and process Other than what is being prepared for ADUs, no additional guides have been developed. Ensure appropriate zoning for residential land Over the next year, the City will make progress on developing a Comprehensive Plan map so nobody will have to rely on the Metro Plan Diagram when trying to figure out the planned uses for a property. The Metro Plan Diagram is not current. Because it is not tax-lot specific, people cannot look up the plan designation for a property through MapSpring or the Regional Land Information Database. Phase I of this project is to convert the current Metro Plan Diagram to a geo-referenced Comprehensive Plan map that would be available to the public through MapSpring. Phase II would include potential re-evaluation of plan designations and zonings to ensure appropriate zoning for residential land. Attachment 2, Page 8 of 8 Attachment 3, Page 1 of 2 Attachment 3, Page 2 of 2 May 16, 2018 Dear Madam Mayor, and Esteemed City Councilors, The Springfield Shelter Rights Alliance, a group familiar to this body, has been working to successfully place Car Camping Program participants, within our industrial and church owned properties through our city. We were afforded the ability to help in this process, within the constructs of the city agreement, and in conjunction with St. Vincent De Paul, Catholic Community Services, and the City of Springfield’s needs and capacity. Below are some thoughts regarding emergency car camping, and its application in Springfield. We hope to provide some useful input, in the meeting of the community need, and appreciate this opportunity to share. From sourcing potential sites for placement, to trying to find organizations able to host or help those who have no other options find shelter, we believe there are several items that might help better serve the aims of the Council, in providing safe places for those without stable housing. While we appreciate the ability to site on industrial and church properties, we have found several barriers to their successful placement, in our efforts. Below are the aggregated suggestions and barriers, followed by some potential modifications to the current process. Many sites do not have suitable parking for their employees and customers, much less a possibly immovable occupant and accompanying toilet and trash. Many sites are off the central transit paths, and as such would be a hindrance to access services that could mitigate homeless issues. Several industrial zoned companies have multiple properties within our boundaries, and as such, their disinterest in participation has a greater effect. Out of state ownership, and corporate management systems make the process to gain permission to site a camp unwieldy, or consistently unreliable, for multiple sites. Areas bordering UGB or County land, yet annexed, present unique challenges, if some lots are owned within, and some, without. This is particularly relevant in expansion and revitalization areas of town. Church leadership approving sites, but being rejected by the body of the organization, coupled with nuisance complaints, regardless of occupancy, have made some churches unaccessible, or reluctant to expand beyond current charitable service, such as meals, or emergency funding. With items, such as those referenced above, in mind, we propose the city consider: Attachment 4, Page 1 of 2 Exploring additional zones that might be both better accessible, and more suited for resolving, and reintegrating individuals, from their plight. This might look like expansion to Mixed Commercial, Urban Growth Boundary, or short term construction sites. Permitting Pilot Projects or Concept Papers to attempt to short term test ways to better serve the community and individual needs, without committing to code changes with each effort. Opening up the ability to provide services to Springfield car campers, in compliance with the current program, to other organizations, with the purpose of providing more options, and easing institutional burden to those currently assigned all campers within our boundaries. Supporting efforts within the community, regarding applying for additional funding for job creation, low barrier opportunities, and underserved community integration, as a means to help prevent homelessness, and allow real opportunity to escape it. Providing incentives, such as fee or tax waivers and reductions, for organizations either supplying services, hosting sites, or donating to those providing a pathway off the parkway. While this may hinder some revenues, it can be shown that our jails and officers are being tied up in resources with persons whose primary cause of engagement, is due to their housing situation. Each of the above suggestions can be stand alone; or better yet, brought together in a comprehensive and collaborative manner that reflects both our Council goals and the human needs of our shared community. We, of the Springfield Shelter Rights Alliance, recognize the steps taken by our city in addressing both the effects of poverty, and the futures of our unhoused. We strongly urge you to continue to legislate with compassion, and push forward in reducing the numbers of those on our streets, with meaningful and inclusive efforts. Thank your time and consideration. Springfield Shelter Rights Alliance Attachment 4, Page 2 of 2