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HomeMy WebLinkAbout2009 10 20 RS Residential Land StudyMEMORANDUM CITY OF SPRINGFIELD DATE OF HEARING: October 20, 2009 TO: Springfield Planning Commission PLANNING COMMISSION TRANSMITTAL FROM: Greg Mott MEMORANDUM Linda Pauly SUBJECT: Springfield Residential Land and Housing Needs Analysis LRP2007-00030 ACTION REQUESTED: The Planning Commission shall conduct a public hearing to accept testimony on the Residential Land and Housing Needs Analysis. The Planning Commission is asked to forward a recommendation to the City Council to adopt the analysis to provide Springfield with a baseline inventory, analysis and housing needs determination for the plan period 2010-2030 as an incremental step towards the City’s compliance with its statutory obligations under ORS 197.304(1)(a)&(b),(2) and (3). ISSUE: The City has completed a Residential Lands Study to determine the sufficiency of land available for residential uses. The draft Springfield Residential Land and Housing Needs Analysis presents 1) a forecast of Springfield’s residential growth based on the adopted Lane County coordinated population projection; 2) an inventory of buildable residential land; and 3) a determination of the number and type (e.g. single family and multi-family) of housing units that will need to be constructed to house the projected population residing within Springfield's jurisdictional share of the area subject to the Eugene-Springfield Metropolitan Area, (e.g. the area east of Interstate 5) for the plan period 2010-2030. The findings and conclusions of the study indicate that 5,980 additional units will be needed to provide a 20-year supply of housing to meet Springfield’s needs and that the housing mix (single family vs. multi-family dwellings) will need to change to meet shifting population demographics. The study also provides technical analysis to determine the amount of land that would be required to provide for the needed dwelling units, based on the inventory of land available under existing Metro Plan residential designations and Plan policies. The conclusions of the study indicate that the available capacity in the residential buildable lands inventory will not provide a 20-year supply of land to meet Springfield’s housing needs, density and mix under current plan designations and policies. Springfield will have a deficit of 344 acres of land in the plan period. ATTACHMENTS Attachment 1: Draft Springfield Residential Land and Housing Needs Analysis Attachment 2: Staff Report and Findings Attachment 3: Residential Lands Study Process Summary 2006-2009 and next steps Attachment 4: Proposed Land Use Efficiency Measures implementation to provide for needed housing density and mix Attachment 5: 10-12-09 Staff Addendum to Draft Springfield Residential Land and Housing Needs Analysis Attachment 6: Planning Commission Recommendation Attachment 7: Comments received Springfield Residential Land and Housing Needs Analysis Prepared for City of Springfield by ECONorthwest 99 W. Tenth, Suite 400 Eugene, OR 97401 (541) 687-0051 Draft Report August 2009 Written by: Robert Parker, Project Director Beth Goodman, Project Manager Whit Perkins, Research Assistant Date submitted: August 2009 ECO Project Number 7139 ECONorthwest 99 W. Tenth, Suite 400 Eugene, OR 97401 (541) 687-0051 Table of Contents Page EXECUTIVE SUMMARY .......................................................................................................................... I  CHAPTER 1: INTRODUCTION ................................................................................................................ 1  BACKGROUND ................................................................................................................................... 1  PURPOSE ........................................................................................................................................... 2  ORGANIZATION ................................................................................................................................. 3  CHAPTER 2: FRAMEWORK FOR A  HOUSING NEEDS ANALYSIS .............................................................. 4  OREGON HOUSING POLICY ................................................................................................................ 4  CHAPTER 3: RESIDENTIAL LAND INVENTORY 9  METHODS, DEFINITIONS, AND ASSUMPTIONS ................................................................................... 9  RESULTS ........................................................................................................................................... 12  Land base ............................................................................................................................ 12 Vacant buildable land .......................................................................................................... 15 Redevelopment potential..................................................................................................... 18 Residential capacity ............................................................................................................. 18 CHAPTER 4: HISTORICAL DEVELOPMENT TRENDS ............................................................................... 20  RESIDENTIAL DEVELOPMENT TRENDS .............................................................................................. 20  TRENDS IN HOUSING MIX AND TENURE ........................................................................................... 23  DENSITY ........................................................................................................................................... 25  CHAPTER 5: HOUSING DEMAND AND NEED ....................................................................................... 27  STEP 1: PROJECT NUMBER OF NEW HOUSING UNITS NEEDED IN THE NEXT 20 YEARS .................. 27  Population .......................................................................................................................... 27 Persons in group quarters .................................................................................................... 28 Household size and composition .......................................................................................... 29 Vacancy rate ....................................................................................................................... 29 STEP 2: IDENTIFY RELEVANT NATIONAL, STATE, AND LOCAL DEMOGRAPHIC AND ECONOMIC  TRENDS AND FACTORS THAT MAY AFFECT THE 20‐YEAR PROJECTION OF STRUCTURE TYPE MIX .. 31  National Housing Trends ...................................................................................................... 31 STEP 3: DESCRIBE THE DEMOGRAPHIC CHARACTERISTICS OF THE POPULATION AND, IF POSSIBLE,  HOUSING TRENDS THAT RELATE TO DEMAND FOR DIFFERENT TYPES OF HOUSING ..................... 34  Summary of key demographic and housing trends ................................................................. 45 Implications of demographic and housing trends for housing need ......................................... 47 Step 4: Determine the types of housing that are likely to be affordable to the projected  population based on household income ................................................................................ 49 Step 5: Estimate the number of additional needed units by structure type and tenure ............ 58 Step 6: Determine the needed density range for each plan designation and the average needed  net density for all designations ............................................................................................. 59 CHAPTER 6: COMPARISON OF SUPPLY AND DEMAND ........................................................................ 63  TOTAL RESIDENTIAL LAND NEED, 2010‐2030 .................................................................................... 63  Land needed for new residential dwelling units ..................................................................... 63 Land needed for other uses .................................................................................................. 63 BUILDABLE LAND INVENTORY AND CAPACITY .................................................................................. 65  COMPARISON AND CONCLUSIONS ................................................................................................... 66  APPENDIX A: CONTEXT FOR ASSESSING  HOUSING NEEDS .................................................................. 68  WHAT IS AFFORDABLE HOUSING? .................................................................................................... 68  WHAT OBJECTIVES DO HOUSING POLICIES TYPICALLY TRY TO ACHIEVE? .......................................... 69  DEMAND VERSUS NEED ................................................................................................................... 70  APPENDIX B: NATIONAL HOUSING TRENDS ........................................................................................ 74  DRAFT: Springfield Housing Needs Analysis ECONorthwest August 2009 Page i Executive Summary The 2007 Oregon Legislature passed HB 3337 which requires Springfield to establish a separate urban growth boundary (UGB). In response to HB 3337, the City is conducting this study to evaluate the sufficiency of land available for residential uses in its UGB. To make this determination, the draft Residential Lands Study (RLS) presents a housing needs analysis consistent with requirements of HB 3337, Goal 14, ORS 197.296, and OAR 660-008. The Springfield Residential Lands Study is intended to provide technical analysis required to determine the 20-year need for residential land for Springfield's jurisdictional share of the area subject to the Eugene-Springfield Metropolitan Area, i.e., the area east of Interstate 5, and whether the city has enough capacity within the area east of I-5 inside the current regional UGB to meet that need. The Executive Summary provides key findings from the Springfield Residential Lands Study. The purpose of the Residential Study is to (1) present growth forecasts, (2) inventory how much buildable residential land the City has, (3) identify housing needs, (4) identify land needed for housing and other uses, and (5) determine how much land the City will need to accommodate growth between 2010 to 2030. HOW MUCH GROWTH IS SPRINGFIELD PLANNING FOR? Population forecasts provide the foundation for assessing land needs. Springfield must have a population forecast to project expected population change over the 20-year planning period (in this instance, 2010-2030). Lane County adopted coordinated population forecasts for the County and its incorporated cities in June 2009. The forecasts include figures for Springfield for 2030 and 2035. Table S-1 shows the coordinated population forecast for the area within the current Springfield city limits, the current unincorporated urban area (the area between the city limit and UGB), and within Springfield's jurisdictional share f the current Metro Plan UGB for 2010 to 2030. The Springfield UGB forecast for 2030 is 81,608 persons—an increase of 14,577 persons during the 20-year planning period. Page ii ECONorthwest August 2009 DRAFT: Springfield Housing Needs Analysis Table S-1. Springfield coordinated population forecast, Springfield UGB, 2010 to 2030 Source: Lane County Rural Comprehensive Plan, 1984 (Amended in 2009), Table 1-1, pg 5 HOW MUCH BUILDABLE RESIDENTIAL LAND DOES SPRINGFIELD CURRENTLY HAVE? Springfield has 2,485 acres in tax lots that are designated for residential uses. Of these, about 935 acres within the Urban Growth Boundary (UGB) are considered vacant and buildable. Table S-2 shows vacant land by plan designation. Table S-2. Vacant residential land by plan designation, Springfield UGB, 2008 Source: City of Springfield GIS data; analysis by ECONorthwest The purpose of the residential buildable lands inventory is to estimate the capacity of buildable land in dwelling units. The capacity of residential land is measured in dwelling units and is dependent on densities allowed in specific zones as well as redevelopment potential. In short, land capacity is a function of buildable land and density. The buildable lands inventory indicates that Springfield has about 935 acres of vacant and partially-vacant residential land and an additional 21 acres in the Glenwood mixed-use refinement plan area (these acres were included in the commercial and industrial lands inventory and are included here only for the purpose of estimating residential capacity).1 This yields a total of 956 buildable acres. 1 Capacity in the Glenwood mixed-use area was calculated as follows: 21 buildable acres (45% of the 47-acre site; the policy requires 30% to 60% of the site be used for housing) multiplied by 15 dwelling units per gross acre equals 317 dwelling units, minus 47 dwelling units that would be displaced from the River Bank Mobile Home Park equals 270 dwelling units. Year City Limit Urban Area UGB 2010 58,891 8,140 67,031 2030 74,814 6,794 81,608 Change 2010-2030 Number 15,923 (1,346) 14,577 Percent 27% -17% 22% AAGR 1.2% -0.9% 1.0% Plan Designation Tax Lots Total Acres in Tax Lots Developed Acres Constrained Acres Buildable Acres Low Density Residential 981 2,137 72 1,241 824 Medium Density Residential 126 329 132 102 95 High Density Residential 8 19 1 2 16 Total 1,115 2,485 205 1,345 935 DRAFT: Springfield Housing Needs Analysis ECONorthwest August 2009 Page iii Table S-3 provides an estimate of how much housing could be accommodated by those lands based on needed densities after making deductions for development constraints. It includes capacity for areas with approved master plans that were not included in the acreage estimates. This includes Marcola Meadows (518 dwellings in the MDR designation) and RiverBend (730 dwellings in the MDR designation). Additionally, the housing needs analysis assumes that 5% of new housing (299 dwelling units) will be a result of redevelopment. Table S-3 shows that Springfield has capacity for 6,920 dwelling units within the existing UGB. Table S-3. Estimated residential development capacity, Springfield UGB, 2009 Source: City of Springfield residential BLI; analysis by ECONorthwest Note: Estimated residential development capacity includes sites with approved master plans (RiverBend – 730 DU and Marcola Meadows – 518 DU. All of this capacity is in the Medium Density Residential plan designation). HOW MUCH HOUSING WILL THE CITY NEED? Springfield will need to provide about 5,980 new dwelling units to accommodate growth between 2010 and 2030. About 3,588 dwelling units (60%) will be single-family types, which includes single-family detached, manufactured dwellings, and single-family attached housing. About 2,392 units (40%) will be multi-family housing. HOW MUCH LAND WILL BE REQUIRED FOR HOUSING? Table S-4 shows the capacity for residential development by plan designation both before and after subtracting acreage needed for other uses, such as parks, schools, churches, etc.). ECO estimates Springfield will need 463 acres for other uses during the 2010-2030 period. The results lead to the following findings: • Springfield has a need for additional residential land. The Springfield UGB has enough land for 6,920 new dwelling units including redevelopment capacity without taking into account the need for 493 acres of this land for other uses. The housing needs forecast projects a need for 5,980 dwelling units and 145 group quarter dwellings. Plan Designation Buildable Acres Residential Capacity (DU) Percent of Capacity Low Density Residential 824 3,714 54% Medium Density Residential 95 2,312 33% High Density Residential 16 325 5% Mixed-Use (Glenwood) 21 270 4% Redevelopment na 299 4% Total 956 6,920 100% Page iv ECONorthwest August 2009 DRAFT: Springfield Housing Needs Analysis • The Low Density Residential designation has a deficit of approximately 293 gross acres when the need for 347 acres of such lands for other uses is taken into account. • The Medium Density Residential designation has a deficit of approximately 15 gross acres when the need for 93 acres of such lands for other uses is taken into account. • The High Density Residential designation has a deficit of approximately 35 gross acres when the need for 23 acres of such lands for other uses is taken into account. • The total residential land deficit is 344 gross acres including residentially- designated lands needed for other uses. Table S-4. Residential capacity for needed dwelling units by plan designation, Springfield UGB, 2010-2030 Source: ECONorthwest Column Notes: 1. Plan designations 2. Needed dwellings by plan designation (table 5-30) 3. Capacity by plan designation (table 6-2); Note: MDR capacity includes capacity in master planned areas (Glenwood, Marcola Meadows, Riverbend); redevelopment capacity is included in MDR (150 DU) and HDR (150 DU) 4. Capacity (column 3) minus Need (column 2); Note: a positive number denotes enough capacity within the existing UGB 5. Needed Gross Density (from bottom of page 5) 6. Total additional land needed (if a deficit exists). Equals -column 4 divided by column 5 7, Surplus/deficit gross acres. Equals Column 4 divided by Column 5 8. Other residential land need (land needed for parks, etc) 9. Total surplus/deficit. Equals column 7 minus column 8, Note: Total Surplus/Deficit (column 9) adds to 344 acres due to rounding errors. 123456789 Plan Designation Need (DU) Capacity (DU) Surplus/ Deficit (DU) Needed Density (DU/GRA) Housing Land Need (Gross Acres) Housing Surplus/ Deficit (Gross Ac) Other Residential Land Need Total Surplus/ Deficit (Gross Ac) Low Density Residential 3,468 3,714 246 5 -54 54 347 -293 Medium Density Residential 1,794 2,731 937 12 0 77 93 -15 High Density Residential 718 475 -243 20 12 -12 23 -35 Total 5,980 6,920 939 0 -42 119 463 -344 DRAFT: Springfield Housing Needs Analysis ECONorthwest August 2009 Page 1 Chapter 1 Introduction This report presents a housing needs analysis for the City of Springfield. The primary purpose of this report is to address the requirement of H.B. 3337 that Springfield “demonstrate, as required by ORS 197.296, that its comprehensive plan provides sufficient buildable lands within an urban growth boundary established pursuant to statewide planning goals to accommodate estimated housing needs for 20 years.” The study is intended to comply with statewide planning policies that govern housing, including Goal 10 (Housing), ORS 197.296, and OAR 660 Division 8. The primary goals of this study are to (1) project the amount of land needed to accommodate the city’s future housing needs of all types, and (2) evaluate the existing residential land supply within the Springfield Urban Growth Boundary to determine if it is adequate to meet that need. The methods used for this study generally follow the Planning for Residential Growth guidebook, published by the Oregon Transportation and Growth Management Program (1996). BACKGROUND The City of Springfield has not conducted a housing needs analysis since the Eugene-Springfield Residential Lands and Housing Study was completed in 1999. In the six years since the study was completed, Springfield’s population has increased by nearly 3,000 residents, an increase of more than 5% over the six-year period. In 2007, the Oregon State Legislature passed House Bill 3337 which requires Springfield to: (a) Establish an urban growth boundary, consistent with the jurisdictional area of responsibility specified in the acknowledged comprehensive plan; and (b) Demonstrate, as required by ORS 197.296, that its comprehensive plan provides sufficient buildable lands within an urban growth boundary established pursuant to statewide planning goals to accommodate estimated housing needs for 20 years. The analysis and determination of land sufficiency required under section (b) must be completed by December 31, 2009. This study is intended to meet the requirements of section (b) by determining whether the City has sufficient land within the Springfield Urban Growth Boundary (UGB) to accommodate expected future housing needs. To make this determination, this report presents a housing needs analysis consistent with requirements of Goal 14, ORS 197.296, and OAR 660-008. As required by HB 3337, the City intends to "complete the inventory, analysis and determination required under ORS 197.296(3)" before the end of 2009, and to complete the remainder of its obligations under HB 3337 and ORS Page 2 ECONorthwest August 2009 DRAFT: Springfield Housing Needs Analysis 197.296 early in 2010. Consistent with the requirements of ORS 197.296(2) the planning period for this study is 2010-2030. PURPOSE The purpose of this study is to provide an assessment of residential development capacity and demand for residential land. The study will serve two purposes: (1) to inform policy makers about planning options and (2) to fulfill state planning requirements for a twenty-year supply of residential land. Consistent with the requirements of ORS 197.296, communities engaged in a buildable lands analysis and housing need assessment must complete, in part, the following: • Inventory the supply of buildable lands within the current urban growth boundary; • Determine the actual density and the actual mix of housing types of residential development that have occurred within the urban growth boundary since the last periodic review or five years, whichever is greater. Development activity used for this review was between 1999 and June 2008.2 • Conduct an analysis of housing need by type and density range, in accordance with ORS 197.303 and statewide planning goals and rules related to housing, to determine the amount of land needed for each needed housing type for the next 20 years (2010-2030). This report presents an analysis consistent with the above outlined requirements, and draws upon previous work that ECONorthwest for a number of Oregon cities and regions. The report is intended to serve as the basis for subsequent discussions and policy choices regarding the management of growth in Springfield and to enable the city to complete the residential lands inventory, analysis and determination required by ORS 197.296(3) and Section 3 of 2007 Or Laws Chapter 650 (HB 3337). It does not address land use efficiency measures as required by ORS 197.296 and OAR 660-024. Land use efficiency measures will be addressed through a separate process. In general, a housing needs analysis contains a supply analysis (existing housing, planned housing, and buildable land) and a demand analysis (population and employment growth leading to demand for more built space: housing by type and density). The geographic scope of the housing needs analysis is all land inside the current acknowledged Eugene-Springfield Metropolitan Urban Growth Boundary east of Interstate 5. 2 The City uses the 1999-2006 period for analysis due to limited availability of permit data that can be cross-referenced to tax lot data to develop density estimates. Moreover, the 1990 and 2000 Census provides an accurate source for analysis of housing mix trends during the 1990s. DRAFT: Springfield Housing Needs Analysis ECONorthwest August 2009 Page 3 ORGANIZATION The rest of this report is organized as follows: • Chapter 2, Framework For A Housing Needs Analysis, describes the theoretical and policy underpinnings of conducting a Goal 10 housing needs analysis for Oregon cities. • Chapter 3, Residential Land Inventory, describes the supply of residential land available to meet the 20-year need for housing. • Chapter 4, Historical Development Trends, summarizes building permit and subdivision data to evaluate residential development by density and mix for the period beginning September 1, 1988, through June 30, 2000. • Chapter 5, Housing Needs Analysis, presents a housing needs analysis consistent with HB 2709 requirements and the HB 2709 Workbook. • Chapter 6, Comparison of Supply and Need, compares buildable land supply with estimated housing need. The report also includes two appendices: • Appendix A, Context for Assessing Housing Needs provides an overview of planning for housing and typical local policy objectives related to affordable housing. • Appendix B, National and Regional Housing Trends presents research ECO has performed over the course of several years describing key factors affecting housing at the national and regional level. Page 4 ECONorthwest August 2009 DRAFT: Springfield Housing Needs Analysis Framework for a Chapter 2 Housing Needs Analysis3 Economists view housing as a bundle of services for which people are willing to pay: shelter certainly, but also proximity to other attractions (job, shopping, recreation), amenity (type and quality of fixtures and appliances, landscaping, views), prestige, and access to public services (quality of schools). Because it is impossible to maximize all these services and simultaneously minimize costs, households must, and do, make tradeoffs. What they can get for their money is influenced by both economic forces and government policy. Moreover, different households will value what they can get differently. They will have different preferences, which in turn are a function of many factors like income, age of household head, number of people and children in the household, number of workers and job locations, number of automobiles, and so on. Thus, housing choices of individual households are influenced in complex ways by dozens of factors; and the housing market in Lane County and Springfield are the result of the individual decisions of thousands of households. These points help to underscore the complexity of projecting what types of housing will be built between 2010 and 2030. The complexity of a housing market is a reality, but it does not obviate the need for some type of forecast of future housing demand and need, and its implications for land demand and consumption. Such forecasts are inherently uncertain. Their usefulness for public policy often derives more from the explanation of their underlying assumptions about the dynamics of markets and policies than from the specific estimates of future demand and need. Thus, we start our housing analysis with a framework for thinking about housing and residential markets, and how public policy affects those markets. OREGON HOUSING POLICY The passage of the Oregon Land Use Planning Act of 1974 (ORS Chapter 197), established the Land Conservation and Development Commission (LCDC), and the Department of Land Conservation and Development (DLCD). The Act required the Commission to develop and adopt a set of statewide planning goals. Goal 10 addresses housing in Oregon and provides guidelines for local governments to follow in developing their local comprehensive land use plans and implementing policies. At a minimum, local housing policies must meet the requirements of Goal 10 (ORS 197.295 to 197.314, ORS 197.475 to 197.490, and OAR 600-008). Goal 10 requires incorporated cities to complete an inventory of buildable residential lands 3 This chapter is based on studies ECONorthwest has completed for other Oregon cities and regions. DRAFT: Springfield Housing Needs Analysis ECONorthwest August 2009 Page 5 and to encourage the availability of adequate numbers of housing units in price and rent ranges commensurate with the financial capabilities of its households. Goal 10 defines needed housing types as “housing types determined to meet the need shown for housing within an urban growth boundary at particular price ranges and rent levels.” ORS 197.303 defines needed housing types: (a) Housing that includes, but is not limited to, attached and detached single- family housing and multiple family housing for both owner and renter occupancy; (b) Government assisted housing;4 (c) Mobile home or manufactured dwelling parks as provided in ORS 197.475 to 197.490; and (d) Manufactured homes on individual lots planned and zoned for single- family residential use that are in addition to lots within designated manufactured dwelling subdivisions. ORS 197.296 defines factors to establish sufficiency of buildable lands within urban growth boundary and requires analysis and determination of residential housing patterns. It applies to cities with populations of 25,000 or more and requires cities to: • Demonstrate that its comprehensive plan or regional plan provides sufficient buildable lands within the urban growth boundary established pursuant to statewide planning goals to accommodate estimated housing needs for 20 years (ORS 197.296(2)); • Inventory the supply of buildable lands within the urban growth boundary and determine the housing capacity of the buildable lands (ORS 197.296(3)(a)); and • Conduct an analysis of housing need by type and density range to determine the number of units and amount of land needed for each needed housing type for the next 20 years (197.296(3)(b)). ORS 197.296 also defines a process for cities to following when considering UGB expansions to meet identified residential needs. ORS 197.296(6) requires cities to take one or more of the following actions if the housing need is greater than the housing capacity to accommodate the additional housing need: a. Amend its urban growth boundary to include sufficient buildable lands to accommodate housing needs for the next 20 years. As part of this process, 4 Government assisted housing can be any housing type listed in ORS 197.303 (a), (c), or (d). Page 6 ECONorthwest August 2009 DRAFT: Springfield Housing Needs Analysis the local government must consider the effects of “land use efficiency measures.” The amendment must include sufficient land reasonably necessary to accommodate the siting of new public school facilities; b. Amend its comprehensive plan, regional plan, functional plan or land use regulations to include new measures that demonstrably increase the likelihood that residential development will occur at densities sufficient to accommodate housing needs for the next 20 years without expansion of the urban growth boundary; or c. Adopt a combination of the actions described in paragraphs (a) and (b) of this subsection. ORS 197.296 is also explicit about what must be considered in a housing needs analysis and the buildable lands inventory. For the purpose of the inventory, “buildable lands” includes: (A) Vacant lands planned or zoned for residential use; (B) Partially vacant lands planned or zoned for residential use; (C) Lands that may be used for a mix of residential and employment uses under the existing planning or zoning; and (D) Lands that may be used for residential infill or redevelopment. To visually display the buildable lands inventory, the inventory includes a map that identifies lands that are vacant, partially vacant, or designated for mixed- use development. The needs analysis includes an analysis of historical housing density and mix. This analysis, which must include data in the last periodic review or five years, whichever is greater.5 (A) The number, density and average mix of housing types of urban residential development that have actually occurred; (B) Trends in density and average mix of housing types of urban residential development; (C) Demographic and population trends; (D) Economic trends and cycles; and 5 A local government can make a determination to use a shorter time period than the time period described if the local government finds that the shorter time period will provide more accurate and reliable data related to housing capacity and need. The shorter time period may not be less than three years. DRAFT: Springfield Housing Needs Analysis ECONorthwest August 2009 Page 7 (E) The number, density and average mix of housing types that have occurred on the buildable lands. Figure 2-1 provides a graphic representation of the housing needs analysis process as defined in ORS 197.296. Page 8 ECONorthwest August 2009 DRAFT: Springfield Housing Needs Analysis Figure 2-1. Process for determining the sufficiency of residential lands Is needed density the same as or less than actual density? Is needed mix the same as actual mix? ORS 197.296(5)Determine actual density/mix of housing ORS 197.296(3)(b)Actions Related to UGBLand Supply/Demand AnalysisLand SupplyLand DemandDoes UGB contain enough buildable land needed at actual residential densities?ORS 197.296(4)No UGB expansion required.Priority 1Amend plan/regulations to include new measures that increase likelihood that residential densities will occur at densities sufficient to accommodate housing needs for the next 20 years without expansion of the UGB.Priority 2Adopt a combination of Priorities 1 and 3.Inventory supply of buildable1residentiallands within the UGB:2•Determine 20-year supply of buildable lands for housing.ORS 197.296(2) and 197.296(3)(a)Conduct housing needs analysis. ORS 197.296(3)(c) and ORS 197.296(7)Use population forecast from coordinating body. ORS 195.036YesIdentify and evaluate measures to increase likelihood that needed residential development will occur. ORS 197.296(6) and (7)No measures for housing needed.Do the measures for needed housing forego the need to expand the UGB?Yes to bothNoNoYesPriority 3Amend the UGB to include sufficient buildable lands to accommodate housing needs.61 Buildable lands means vacant and redevelop-able lands in urban and urbanizable areas that are suitable, available and necessary for residential uses. ORS 197.295(2)2 Goal 14 requires UGB amendments to be adopted by City and County County. OAR 660-015-0000(14)Footnotes:Take one of several actions:No DRAFT: Springfield Housing Needs Analysis ECONorthwest August 2009 Page 9 Residential Chapter 3 Land Inventory The residential lands inventory is intended to identify lands that are available for development within the UGB. The inventory is sometimes characterized as supply of land to accommodate growth. Population and employment growth drive demand for land. The amount of land needed depends on the density of development. This chapter presents the residential buildable lands inventory for the City of Springfield. 6 The results are based on analysis of Geographic Information System data provided by City of Springfield GIS and Lane County Assessment data. The analysis also used aerial orthophotographs for verification. METHODS, DEFINITIONS, AND ASSUMPTIONS The first step of the residential buildable lands inventory was to identify the “land base.” The land base includes all lands in the Springfield portion of the Metro UGB that are either fully or partially within a residential plan designation. The following plan designations were included in the residential land base: • High Density Residential • Medium Density Residential • Low Density Residential The foundational assumptions for the residential lands inventory were reviewed and discussed by the Residential Lands Stakeholder Committee. The committee recommended a package of definitions and assumptions for use in the residential land inventory. These were reviewed with the Planning Commission and Council and approved for use in the study. The draft acreages presented in this chapter utilize the definitions and assumptions and also incorporate more detailed information from the Lane County Assessor’s Office to determine the character of the parcels. Property Class and Stat Class codes from the Lane County Assessor’s Office were used to help determine if a property is vacant and what type of structure (if any) is present on the land. Property Class is a three digit code to define the current use of the land (residential, commercial, industrial, multi-family, etc) and whether is vacant or developed. Stat Class is also a three digit code used by the Assessor’s Office to describe the type of structure on a parcel (single-family home, multi-family structure, agricultural outbuilding, etc.). Aerial Photos were 6 The residential buildable lands inventory was a collaborative effort between City of Springfield staff and ECONorthwest. Page 10 ECONorthwest August 2009 DRAFT: Springfield Housing Needs Analysis also used in some cases to help determine presence and extent of development on a site if other information was not clear. A key step in the buildable lands analysis was to classify each tax lot into a set of mutually exclusive categories. All tax lots in the UGB are classified into one of the following categories: • Vacant and Partially Vacant Land. This category includes parcels with no structures or with structures with a value of less than $10,000; parcels have not been precluded from development by a CUP or other commitment. • Unbuildable, Not Serviceable Land. This category includes land that is undevelopable. It includes tax lots or areas within tax lots with one or more of the following attributes: (1) slopes greater than 25%; (2) within the floodway; (3) in areas with severe landslide potential (DOGAMI map); (4) within wetlands and riparian corridors and setbacks; (5) with an easement a 230KV transmission line; (6) small irregularly shaped lots; and (7) publicly owned land. • Developed land. Land that is developed at densities consistent with zoning and improvements that make it unlikely to redevelop during the analysis period. Lands not classified as vacant, partially-vacant, or undevelopable are considered developed. • Potentially redevelopable land. Land on which development has already occurred but on which, due to present or expected market forces, there exists the potential that existing development will be converted to more intensive uses during the planning period. Redevelopable land is a subset of developed land and includes lands in MDR and HDR plan designations that have single-family dwellings. The initial classifications, while not perfect, provided a starting point. The initial classification was used to help City staff to define a list of parcels that meet the assumptions and criteria in the definitions listed below. The next step in the process was verification. City staff and ECONorthwest spent considerable effort to review and verify land classifications. Verification steps included review of classifications on top of 2008 aerial photographs, cross referencing data with LCOG land use data, and in selected instances, field verification. The land classifications result in identification of lands that are vacant or partially vacant. The inventory includes all lands within the Springfield UGB. Public and semi-public lands are generally considered unavailable for development. Map 3-1 shows residential lands by plan designation within the Springfield UGB. A MAIN Q BI-5D I-105 JASPER5TH28TH42ND MARCOLACAMP CREEK E THURSTON G CENTENNIAL MI LL7TH2ND58TH21STOLYMPIC 10TH69THMCKE NZIEGATEWAY 32NDMCVAY31ST70THHARLOW 67THDAISY14TH19TH 66TH30THASPENBELTLINE FRANKLIN36TH48TH35THHWY 58 FAIRVIEW HAYDEN BRIDGE YOLANDA 57THLAURAPI ONEER PARKWAY EAST52ND18THHIGH BANKS COMMERCIAL INTERNATIONAL HWY 9 9 SGONYEARAINBOWP ARKW AYI- 5 ONRAMPPRIVATE BOB STRAUBM E N L O GAME FARM I-5 OFFRAMPOLD COBURGBRACKENFERNGAME FARMDAISY 30TH A FR A N K LIN JASPERPRIVATEG I-5 OFFRAMPI-5HWY 58 M AIN E City of SpringfieldO r e g o n Map 3-1.Residential Land byPlan Designation ECONorthwest, April 2009 0 1,900 3,800950 Feet¯ Legend PUBLICPUBLIC City Limits Urban Growth Boundary Plan Designation High Density Residential Low Density Residential Medium Density Res Mixed Medium Density Residential Page 12 ECONorthwest August 2009 DRAFT: Springfield Housing Needs Analysis RESULTS LAND BASE The first step in the residential land inventory was to determine the land base. This step was necessary because the inventory only covers a subset of land in the Springfield UGB. The land base is the subset of tax lots that fall within the plan designations included in the residential portion of the inventory. Table 3-1 shows acres within the Springfield UGB and city limits in 2008. According to the City GIS data, Springfield has about 14,603 acres within its UGB. Of the 14,603 acres, 12,139 acres (about 83%) are in tax lots. Land not in tax lots is primarily in streets and waterways. Springfield has about 9,958 acres within its City Limits; of these 8,060 acres (about 81% of total acres in the City Limit) are in tax lots. Additionally, the City has about 4,645 acres between the City Limits and Urban Growth Boundary (the UGA); of this about 4,079 acres are in tax lots. Table 3-1. Acres in Springfield UGB and City Limit, 2008 Source: City of Springfield GIS data; analysis by ECONorthwest Note: Urban Growth Area is the unincorporated area between the City Limits and Urban Growth Boundary Table 3-1 summarizes all land in the Springfield UGB. The next step is to identify residential land base (e.g., lands with plan designations that allow housing or “residential lands”). The land base includes traditional residential designations, as well as mixed-use designations Note that not all of the land in mixed-use designations will be used for employment. Table 3-2 shows that about 7,483 acres within the Springfield UGB is included in the residential land base. Thus, about 62% of land within the Springfield UGB is included in the residential land base. The database includes all land in tax lots that have any portion that is in a residential plan designation. Area Tax Lots Total Acres Acres in Tax Lots Percent in Tax Lots City Limits 19,477 9,958 8,060 81% Urban Growth Area 3,150 4,645 4,079 88% Total 22,627 14,603 12,139 83% DRAFT: Springfield Housing Needs Analysis ECONorthwest August 2009 Page 13 Table 3-2. Lands designated for residential uses, Springfield UGB, 2008 Source: analysis by ECONorthwest Table 3-3 shows residential acres by classification and constraint status for the Springfield UGB in 2009. Analysis by constraint status (the table columns) shows that about 4,585 acres are classified as built or committed (e.g., unavailable for development), 1,962 acres were classified as constrained, and 935 were classified as vacant buildable. Table 3-3. Residential acres by classification, Springfield UGB, 2009 Source: City of Springfield data; analysis by ECONorthwest Note: No buildable acres are shown for master planned areas because the master plan identifies the number of dwelling units. This capacity is reflected in Table 3-7. Area Value Springfield UGB Number of Tax Lots 22,627 Acres in Tax Lots 12,139 Springfield CIBL Tax Lots in Residential Designations 20,159 Acres in Land Base in Residential Designations 7,483 Land available for housing Classification Tax Lots Total Ac Developed Ac Constrained Ac Buildable Ac Land with no development capacity Developed 18,745 4,408 3,944 464 0 Park/School 96 335 292 43 0 Public 58 79 17 62 0 Right of Way 145 175 127 48 0 Subtotal 19,044 4,997 4,380 617 0 Land with development capacity Master Planned 18 151 128 23 See notes Partially Vacant 234 841 77 308 456 Vacant 863 1,493 0 1,014 479 Subtotal 1,115 2,485 205 1,345 935 Total 20,159 7,482 4,585 1,962 935 Land not avialable for housing I-5A MAIN Q I-105 B D JASPER5TH28TH MARCOLA42NDCAMP CREEK THURSTON E G CENTENNIAL MILL7TH2ND58TH21STOLYMPIC 10THMC KENZ I E69THHARLOWGATEWAY 32NDMCVAY31ST70THBELTLINE 67THDAISY14TH19TH 66TH30THASPENFRANKLIN36TH48TH35THHWY 58 FAIRVIEW HAYDEN BRIDGE YOLANDA 57THLAURAPI ONEER PARKWAY EAST52ND18THHIGH BANKS HWY 9 9 SCOMMERCIAL INTERNATIONAL GONYEARAINBOWI -5 ONRAMPGARDENPAR KW A YPRIVATE BOB STRAUBM E N L O GAME FARMOLD COBURGBRACKENFERNMA I NGAME FARMI-530THGAME FARMDAISY GPRIVATE E HWY 58 A JASPER I- 5 ONRAMPCity of SpringfieldO r e g o n Map 3-2Residential Landby Classification ECONorthwest, July 2009 0 1,900 3,800950 Feet¯ Legend PUBLICPUBLIC Classifications MASTER PLAN PARTIALLY VACANT VACANT City Limit Urban Growth Boundary DRAFT: Springfield Housing Needs Analysis ECONorthwest August 2009 Page 15 VACANT BUILDABLE LAND The next step in the buildable land inventory is to net out portions of vacant tax lots that are unavailable for development. Areas unavailable for development fall into two categories: (1) developed areas of partially vacant tax lots, and (2) areas with physical constraints (in this instance areas with steep slopes, waterway buffers, or wetlands). Table 3-4 shows vacant land by development and constraint status. The data show that about 1,710 acres within tax lots with development capacity are developed. An additional 1,345 acres have development constraints that are unbuildable, leaving about 935 vacant buildable residential acres within the UGB. Table 3-4. Vacant residential land by constraint status, Springfield UGB, 2009 Source: City of Springfield GIS data; analysis by ECONorthwest Note: No buildable acres are shown for master planned areas because the master plan identifies the number of dwelling units. This capacity is reflected in Table 3-7. Table 3-5 shows vacant land by plan designation. Map 3-3 shows the location of vacant land by plan designation. Map 3-4 shows vacant land with constraints that are unbuildable. Table 3-5. Vacant residential land by plan designation, Springfield UGB, 2008 Source: City of Springfield GIS data; analysis by ECONorthwest Acres unavailable for housing Classification Tax Lots Acres in Tax Lots Developed Acres Unbuildable Acres Buildable Acres Master Planned 18 151 128 23 See notes Partially Vacant 234 841 77 308 456 Vacant 863 1,493 0 1,014 479 Total 1,115 2,485 1,710 1,345 935 Plan Designation Tax Lots Total Acres in Tax Lots Developed Acres Constrained Acres Buildable Acres Low Density Residential 981 2,137 72 1,241 824 Medium Density Residential 126 329 132 102 95 High Density Residential 8 19 1 2 16 Total 1,115 2,485 205 1,345 935 I-5A MAIN Q I-105 B D JASPER5TH28TH MARCOLA42NDCAMP CREEK THURSTON E G CENTENNIAL MILL7TH2ND58TH21STOLYMPIC 10THM CK E N ZIE69THHARLOWGATEWAY 32NDMCVAY31ST70THBELTLINE 67THDAISY14TH19TH 66TH30THASPENFRANKLIN36TH48TH35THHWY 58 FAIRVIEW HAYDEN BRIDGE YOLANDA 57THLAURAPIONEER PARKWAY EAST52ND18THHIGH BANKS HWY 99 SCOMMERCIAL INTERNATIONAL GONYEARAINBOWI-5 ONRAMPGARDENPARKW AYPRIVATE BOB STRAUBM E N L O GAME FARM I-5 OFFRAMPOLD COBURGBRACKENFERNA 30TH DAISYI-5GAME F ARMMA I N GGAME FARME I- 5 ONRAMPHWY 58PRIVATE JASPER City of SpringfieldO r e g o n Map 3-3Residential Landby Classification ECONorthwest, July 2009 0 1,900 3,800950 Feet¯ Legend Spr_CL sprugb_20070716 PUBLICPUBLIC Classifications MASTER PLAN PARTIALLY VACANT VACANT I-5A MAIN Q I-105 B D JASPER5TH28TH MARCOLA42NDCAMP CREEK THURSTON E G CENTENNIAL MILL7TH2ND58TH21STOLYMPIC 10THM CKE NZIE69THHARLOWGATEWAY 32NDMCVAY31ST70THBELTLINE 67THDAISY14TH19TH 66TH30THASPENFRANKLIN36TH48TH35THHWY 58 FAIRVIEW HAYDEN BRIDGE YOLANDA 57THLAURAPI ONEER PARKWAY EAST52ND18THHIGH BANKS HWY 9 9 SCOMMERCIAL INTERNATIONAL GONYEARAINBOWI-5 ONRAMPGARDENPAR KW AYPRIVATE BOB STRAUBM E N L O GAME FARM I-5 OFFRAMPOLD COBURGBRACKENFERNA 30TH DAISYI-5GAME F ARMMAI N GGAME FARME I- 5 ONRAMPHWY 58PRIVATE JASPER City of SpringfieldO r e g o n Map 3-4Residential Land by Classificationand Constraint Status ECONorthwest, July 2009 0 1,900 3,800950 Feet¯ Legend PUBLICPUBLIC Classifications MASTER PLAN PARTIALLY VACANT VACANT Constraints Slope >25% Riparian Resource Areas Floodway 100-yr Floodplain Wetlands BPA Easement City Limit Urban Growth Boundary Page 18 ECONorthwest August 2009 DRAFT: Springfield Housing Needs Analysis REDEVELOPMENT POTENTIAL Redevelopment potential addresses land that is classified as developed that may redevelop during the planning period. While many methods exist to identify redevelopment potential, a common indicator is improvement to land value ratio. Different studies use different improvement to land value ratio thresholds. This study does not use improvement-to-land value ratios as a redevelopment threshold. The City of Springfield understands that low-value housing is an integral part of the City’s affordable housing stock and that encouraging redevelopment of such housing will likely result in an overall loss of affordable housing in Springfield. Springfield uses a capacity-based method to identify redevelopment potential. Redevelopment capacity is estimated based on historical redevelopment rates. Historical rates of redevelopment are analyzed in Chapter 4. RESIDENTIAL CAPACITY The final step in a residential buildable lands inventory is to estimate the capacity of buildable land in dwelling units. The capacity of residential land is measured in dwelling units and is dependent on densities allowed in specific zones as well as redevelopment potential. In short, land capacity is a function of buildable land and density. The buildable lands inventory indicates that Springfield has about 935 acres of vacant and partially-vacant residential land and an additional 21 acres in the Glenwood mixed-use refinement plan area (these acres were included in the commercial and industrial lands inventory and are included here only for the purpose of estimating residential capacity).7 This yields a total of 956 buildable acres. Table 3-7 provides an estimate of how much housing could be accommodated by those lands based on the needed densities identified in Table 5-25 after making deductions for development constraints. It includes capacity for areas with approved master plans that were not included in the acreage estimates. This includes Marcola Meadows (518 dwellings in the MDR designation) and RiverBend (730 dwellings in the MDR designation). Table 3-7 shows that Springfield has capacity for 6,621 dwelling units within the existing UGB. Note that this figure does not include capacity for redevelopment. 7 Capacity in the Glenwood mixed-use area was calculated as follows: 21 buildable acres (45% of the 47-acre site; the policy requires 30% to 60% of the site be used for housing) multiplied by 15 dwelling units per gross acre equals 317 dwelling units, minus 47 dwelling units that would be displaced from the River Bank Mobile Home Park equals 270 dwelling units. DRAFT: Springfield Housing Needs Analysis ECONorthwest August 2009 Page 19 Table 3-7. Estimated residential development capacity, Springfield UGB, 2009 Source: City of Springfield residential BLI; analysis by ECONorthwest Note: Estimated residential development capacity includes sites with approved master plans (RiverBend – 730 DU and Marcola Meadows – 518 DU. All of this capacity is in the Medium Density Residential plan designation). Plan Designation Buildable Acres Residential Capacity (DU) Percent of Capacity Low Density Residential 824 3,714 54% Medium Density Residential 95 2,312 33% High Density Residential 16 325 5% Mixed-Use (Glenwood) 21 270 4% Total 956 6,621 96% Page 20 ECONorthwest August 2009 DRAFT: Springfield Housing Needs Analysis Chapter 4 Historical Development Trends Analysis of historical development trends in Springfield provides insights into how the local housing market functions. The housing type mix and density are also key variables in forecasting future land need. Moreover, such an analysis is required by ORS 197.296. The specific steps are described in Task 2 of the DLCD HB 2709 Workbook: 1. Determine the time period for which the data must be gathered 2. Identify types of housing to address (all needed housing types) 3. Evaluate permit/subdivision data to calculate the actual mix, average actual gross density, and average actual net density of all housing types ORS 197.296 requires the analysis of housing mix and density to include the past five years or since the most recent periodic review, whichever time period is greater.8 The City of Springfield used the 1999- July 2008 period for this analysis. The rationale for using this period is that permit data prior to 1999 could not be associated with tax lots to develop density estimates. Moreover, the most recent housing needs analysis and inventory for the Eugene-Springfield Metropolitan Area was conducted in 1999. With respect to housing mix, the 1990 and 2000 Census provide more accurate counts. RESIDENTIAL DEVELOPMENT TRENDS Figure 4-1 shows dwelling units approved in the Springfield city limits between 1980 and July 2008. Springfield approved 5,836 dwellings during this 26-year period. The number of dwellings approved annually ranges from a low of 14 in 1985 to a high of 616 in 1994. Springfield averaged about 217 dwelling unit approvals per year during this period. The rate of development, however, shows considerable variation from year to year. That variation can be largely tied to economic conditions in the region. 8 Specifically, ORS 197.296(5) (b) states: “A local government shall make the determination described in paragraph (a) of this subsection using a shorter time period than the time period described in paragraph (a) of this subsection if the local government finds that the shorter time period will provide more accurate and reliable data related to housing capacity and need. The shorter time period may not be less than three years.” DRAFT: Springfield Housing Needs Analysis ECONorthwest August 2009 Page 21 Figure 4-1. Dwelling units approved through building permits issued for new residential construction, Springfield, 1980 – July 2008 Source: City of Springfield Planning Department, 2008 Note: 2008 includes January through July. Between July 1999 and July 2008, Springfield issued a total of 1,971 building permits for new residential construction that allowed 2,860 dwelling units. Figure 4-1 shows that the number of dwelling units approved varies from year to year and peaked at 515 in 2002. The number of dwellings approved was slower in 1999 and 2001. Between 2003 and 2005, the number of dwellings approved remained relatively steady at around 360 annually. By 2006, residential permits reflected the downturn in the national housing market, but still remained relatively strong averaging around 200 permits per year. 0 100 200 300 400 500 600 700 19801981198219831984198519861987198819891990199119921993199419951996199719981999200020012002200320042005200620072008DU Approved Year Page 22 ECONorthwest August 2009 DRAFT: Springfield Housing Needs Analysis Figure 4-1. Dwelling units approved through building permits issued for new residential construction, Springfield, July 1999 – July 2008 Source: City of Springfield Planning Department, 2006 Table 4-1 shows dwelling units approved through building permits issued for new residential construction by type within Springfield. The data indicate that about 54% of residential dwellings approved were for single-family detached dwellings, manufactured homes accounted for about 10% of all permits issued, and multifamily housing of all types accounted for 36% of permits issued. 0 100 200 300 400 500 600 1999 2000 2001 2002 2003 2004 2005 2006 2007 thru  July  2008Number of DwellingsYear DRAFT: Springfield Housing Needs Analysis ECONorthwest August 2009 Page 23 Table 4-1. Dwelling units approved through building permits issued for new residential construction by type, Springfield, July 1999 – July 2008 Source: City of Springfield Planning Department, 2006 TRENDS IN HOUSING MIX AND TENURE The housing mix by type (i.e., percentage of single family, multi-family, and mobile/manufactured home units) is an important variable in any housing needs assessment. Distribution of housing types is influenced by a variety of factors, including the cost of new home construction, area economic and employment trends, demographic characteristics, and amount of land zoned to allow different housing types and densities. Table 4-2 shows changes in Springfield’s housing mix from 1990-2000. Between 1990 and 2000, Springfield increased its housing stock by 19%, adding 3,451 dwelling units. The mix of housing did not change substantially. In 1990 and 2000, 54% of dwelling units were single-family detached units. Over the ten- year period, Springfield added more than 2,000 single- family detached dwellings. Thirty-one percent of the new dwellings added between 1990 to 2000 were multifamily or manufactured. However, the share of these more affordable housing types did not increase in Springfield over the ten-year period. In 1990, these housing types accounted for 37% of the housing stock and in 2000 they accounted for 37% of the housing stock. With respect to tenure, Springfield experienced a 4% increase in the ownership rate between 1990 and 2000. About 49% of housing in the Springfield city limits was owner-occupied in 1990 and 54% was owner-occupied in 2000. Homeownership rates in Springfield are lower than County and State averages. In 1990, about 61% of homes were owner-occupied in Lane County, a figure that increased to 63% by 2000. State homeownership rates were 63% in 1990 and 64% in 2000. Year Single  Family Manufact‐ ured  Home Duplex Tri‐Plex Four‐ Plex Apart‐ ment Total  Units 1999 30 9 22 0 0 0 61 2000 209 38 30 3 4 40 324 2001 121 46 16 6 0 6 195 2002 252 45 14 0 4 200 515 2003 230 31 18 6 84 0 369 2004 155 26 38 6 12 122 359 2005 144 31 38 6 140 0 359 2006 116 27 17 3 56 0 219 2007 180 30 0 4 61 275 thru July 2008 92 27 10 0 0 55 184 Total Units 1529 280 233 30 304 484 2860 % of Units 53.5% 9.8% 8.1% 1.0% 10.6% 16.9% 100.0% Page 24 ECONorthwest August 2009 DRAFT: Springfield Housing Needs Analysis Table 4-2. Dwelling units by type and tenure, Springfield city limits, 1990 and 2000 Source: U.S. Census of Population and Housing; SF-3 1990 and 2000. Table 4-3 shows type of dwelling by tenure (owner/renter-occupied) in 2000. The results show that single-family and manufactured housing types have a much higher ownership rate than other housing types—about 95% of owner-occupied units were in these housing types. Multifamily housing types, including duplexes were predominately renter occupied. It is also notable that 88% of the single- family attached dwellings were renter occupied. By contrast, 20% of single- family detached and 13% of mobile homes were renter occupied in 2000. Table 4-3. Housing units by type and tenure, Springfield city limits, 2000 Source: US Census 2000, Summary File 3; Percentages calculated by ECONorthwest. Note: Total number of units is slightly different than reported in Table 4-2 due to different data sources (this table uses Summary File 3 sample data; Table 9.30.2 uses Summary File 1, 100% count data. Table 4-4 shows changes in Springfield’s housing mix from 2000-July 2008 based on 2000 Census and residential building permit data provided by the City of Springfield. Between 2000 and July 2008, Springfield increased its housing stock about 13%, adding 2,799 dwelling units. The mix of housing changed slightly, with multifamily dwellings accounting for about 0.9% greater share in July 2008 than 2000. Housing Units Number Percent Number Percent Number Percent % Increase Single-family detached 9,687 53.5% 11,721 54.3% 2,034 58.9% 21% Single-family attached 1,755 9.7% 1,794 8.3% 39 1.1% 2% Multifamily 4,777 26.3% 6,118 28.4% 1,341 38.9% 28% Mobile/Manufactured 1,902 10.5% 1,939 9.0% 37 1.1% 2% Total housing units 18,121 100.0% 21,572 100.0% 3,451 100.0% 19% Occupied Housing Units 17,447 100.0% 20,514 100.0% 3,067 100.0% 18% Owner-occupied 8,599 49.3% 10,987 53.6% 2,388 77.9% 28% Renter-occupied 8,848 50.7% 9,527 46.4% 679 22.1% 8% 1990 Census 2000 Census New DU 90-00 Housing Type Number % by Tenure % by Type Number % by Tenure % by Type Number % by Type Single-family detached 8,989 80% 82% 2,219 20% 23% 11,208 55% Single-family attached 204 12% 2% 1,494 88% 16% 1,698 8% Multifamily-duplex 118 10% 1% 1,113 90% 12% 1,231 6% Multifamily-3+ units 89 2% 1% 4,447 98% 47% 4,536 22% Mobile home 1,581 87% 14% 244 13% 2% 1,825 9% Total 10,981 54% 100% 9,517 46% 100% 20,498 100% Owner-Occupied Renter-Occupied Total DRAFT: Springfield Housing Needs Analysis ECONorthwest August 2009 Page 25 Table 4-4. Estimated dwelling units by type, Springfield city limits, 2000 and July 2008 Source: U.S. Census of Population and Housing; SF-3 1990 and 2000; City of Springfield Building Permit Data, 2006. Note: the City building permit data does not distinguish between single-family attached and detached dwellings. Thus, the 2008 estimate probably overestimates single-family detached dwellings and underestimates single-family attached dwellings. DENSITY Table 4-5 summarizes approved net residential densities by housing type from July 1999 through July 2008. During this period, 2,860 dwelling units were approved by residential building permits. The dwellings are associated with individual tax lots to calculate the net residential density (expressed in dwelling units per acre).9 This development consumed 436.3 net vacant acres. New housing in Springfield developed at an average net density of 6.6 dwelling units per net buildable acre between 1999 and July 2008. The data indicate that single-family detached housing types averaged a density of 5.4 dwelling units per net acre, while manufactured homes achieved a lower density of 4.6 dwelling units per net acre. Multifamily housing types show more variation—from 25 units per net acre for triplexes, to 8.5 dwelling units per net acre for fourplexes, and 24.4 dwellings per net acre for apartment buildings with five or more units. 9 OAR 660-024-0040(9) defines a net buildable acre as follows: For purposes of this rule, a "Net Buildable Acre" consists of 43,560 square feet of residentially designated buildable land, after excluding present and future rights-of-way, restricted hazard areas, public open spaces and restricted resource protection areas. Housing Units Number Percent Number Percent Number Percent % Increase Single-family detached 11,721 54.3% 13,220 54.2% 1,499 53.6% 13% Single-family attached 1,794 8.3% 1,794 7.4% na na 0% Multifamily 6,118 28.4% 7,147 29.3% 1,029 36.8% 17% Mobile/Manufactured 1,939 9.0% 2,210 9.1% 271 9.7% 14% Total housing units 21,572 100.0% 24,371 100.0% 2,799 100.0% 13% 2000 Census 2006 Est. New DU 00-06 Page 26 ECONorthwest August 2009 DRAFT: Springfield Housing Needs Analysis Table 4-5. Actual residential density by housing type, in net acres, Springfield, July 1999 – July 2008 Source: City of Springfield building permit data REDEVELOPMENT TRENDS Analysis of historical redevelopment of residential lands provides context for determining how much redevelopment will occur over the 20-year planning period. Specifically, the analysis addressed redevelopment by analyzing new dwellings on developed lots. This includes lots that had addresses coded before 1999 and received additional addresses after 1999. In other words, it focuses on lands that were identified as “developed” in the buildable lands inventory, but had additional residential development in the 1999-2008 period. The analysis found 102 new dwellings were added on developed lots between 1999 and 2008. This is about 4% of 2,860 dwellings added in Springfield during this period. Housing Type Dwelling  Units Percent  of DU Net  Acres DU/Net  Acre Single‐Family Detached 1,529 53% 280.7 5.4 Manufactured Home 280 10% 61.2 4.6 Duplex 233 8% 37.5 6.2 Triplex 30 1% 1.2 25.0 Fourplex 304 11% 35.9 8.5 Apartments 5+ Units 484 17% 19.8 24.4 Total 2,860 100% 436.3 6.6 DRAFT: Springfield Housing Needs Analysis ECONorthwest August 2009 Page 27 Chapter 5 Housing Demand and Need Chapter 2 described the framework for conducting a housing "needs" analysis. ORS 197.296 (HB 2709) requires cities over 25,000 or fast growing cities to conduct a housing needs analysis. A recommended approach is described in Task 3 of the HB 2709 Workbook. The specific steps in the housing needs analysis are: 1. Project number of new housing units needed in the next 20 years. 2. Identify relevant national, state, and local demographic and economic trends and factors that may affect the 20-year projection of structure type mix. 3. Describe the demographic characteristics of the population and, if possible, housing trends that relate to demand for different types of housing. 4. Determine the types of housing that are likely to be affordable to the projected households based on household income. 5. Estimate the number of additional needed units by structure type. 6. Determine the needed density ranges for each plan designation and the average needed net density for all structure types. STEP 1: PROJECT NUMBER OF NEW HOUSING UNITS NEEDED IN THE NEXT 20 YEARS Step 1 in the housing needs analysis is to project the number of new housing units needed during the planning period. This section describes the key assumptions and estimates of new housing units needed in Springfield between 2000 and 2020. POPULATION Springfield must have a population forecast to project expected population change over the 20-year planning period (in this instance, 2010-2030). Lane County adopted coordinated population forecasts for the County and its incorporated cities in June 2009. The forecasts include figures for Springfield for 2010 and 2030. Table 5-1 shows the coordinated population forecast for the Springfield city limit, urban area (the area between the city limit and UGB), and the UGB for 2010 to 2030. The UGB forecast for 2030 is 81,608 persons—an increase of 14,577 persons during the 20-year planning period. Page 28 ECONorthwest August 2009 DRAFT: Springfield Housing Needs Analysis Table 5-1. Springfield coordinated population forecast, Springfield UGB, 2010 to 2030 Source: Lane County Rural Comprehensive Plan, 1984 (Amended in 2009), Table 1-1, pg 5 PERSONS IN GROUP QUARTERS Persons in group quarters do not consume standard housing units: thus, any forecast of new people in group quarters is typically backed out of the population forecast for the purpose of estimating housing need. Group quarters can have a big influence on housing in cities with colleges (dorms), prisons, or a large elderly population (nursing homes). In general, one assumes that any new requirements for these lodging types will be met by institutions (colleges, state agencies, health- care corporations) operating outside what is typically defined as the housing market. Group quarters, however, require land and are typically built at densities that are comparable to multiple-family dwellings. Table 5-2 shows persons in group quarters in the City of Springfield as reported by the 1980, 1990, and 2000 Census. Table 5-2. Persons in group quarters, City of Springfield, 1980, 1990, and 2000 Source: U.S. Census of Population and Housing, Summary File 1 For the purpose of estimating housing needs for Springfield, ECO assumed that 1% of new persons (148 persons) will reside in group quarters. The majority of these new persons will live in assisted living quarters. A final note on persons in group quarters: persons in group quarters require land. While the HB 2709 workbook backs this component of the population out of total population that needs housing, it does not otherwise make accommodations for land demand for new group quarters. For the purpose of this analysis, we assume that persons in group quarters require land at approximately the same density as multiple family housing. Land needed for group quarters is estimated at the end of this chapter. Year City Limit Urban Area UGB 2010 58,891 8,140 67,031 2030 74,814 6,794 81,608 Change 2010-2030 Number 15,923 (1,346) 14,577 Percent 27% -17% 22% AAGR 1.2% -0.9% 1.0% VARIABLE 1980 1990 2000 Total Population 41,621 44,683 52,864 Persons in Group Quarters 184 298 635 Percent in Group Quarters 0.44% 0.67% 1.20% DRAFT: Springfield Housing Needs Analysis ECONorthwest August 2009 Page 29 HOUSEHOLD SIZE AND COMPOSITION Twenty years ago, traditional families (married couple, with one or more children at home) accounted for 29% of all households in Oregon. In 1990 that percentage had dropped to 25%. It will likely continue to fall, but probably not as dramatically. The average household size in Oregon was 2.60 in 1980 and 2.52 in 1990. One and two person households made up the majority of Oregon households in 1990. The direct impact of decreasing household size on housing demand is that smaller households means more households, which means a need for more housing units even if population were not growing. Table 5-3 shows average household size for Springfield as reported by the 1980, 1990, and 2000 Census. OAR 660-024-0040(7)(a) established a “safe harbor” assumption for average household size—which is the figure from the most recent Census (2.54 persons). The estimate of future housing needs uses an average household size of 2.54 persons, as allowed by the safe harbor. Table 5-3. Average household size, Springfield, 1980, 1990 and 2000 Source: U.S. Census of Population and Housing, Summary File 1 VACANCY RATE Vacant units are the final variable in the basic housing need model. Vacancy rates are cyclical and represent the lag between demand and the market’s response to demand in additional dwelling units. Vacancy rates for rental and multiple family units are typically higher than those for owner-occupied and single-family dwelling units. Table 5-4 shows that the average vacancy rate for Springfield varies by time period. The most recent Census showed an overall vacancy rate of 5%. The HCS housing needs model, however, requires separate vacancy rate figures for single- family and multifamily units. The vacancy rate in 2000 was 4.7% for single- family units and 5.7% for multifamily units. Table 5-4. Average vacancy rate, Springfield, 1980, 1990 and 2000 Source: U.S. Census of Population and Housing, Summary File 1 Year Average household size 1980 2.57 1990 2.54 2000 2.54 Variable 1980 1990 2000 Housing Units 17,469 18,121 21,500 Occupied Housing Units 16,173 17,447 20,426 Vacant Housing Units 1,296 674 1,074 Vacancy Rate 7.42% 3.72% 5.00% Page 30 ECONorthwest August 2009 DRAFT: Springfield Housing Needs Analysis Thus study assumes an average vacancy rate of 5%--the same figure as reported in the 2000 Census. The countywide vacancy rate was 6.1% in 2000. FORECAST OF NEW HOUSING UNITS, 2010-2030 The preceding analysis leads to a forecast of new housing units likely to be built in Springfield during the 2010 to 2030 period. Based on the assumptions shown in Table 5-5, Springfield will need 5,980 new dwelling units to accommodate forecast population growth between 2010 and 2030. These figures do not include new group quarters. The forecast assumes 60% will be single- family housing types (single-family detached and manufactured) and 40% will be multifamily. The rationale for the household mix is described in the housing needs analysis section of this chapter. The results indicate that Springfield will need to issue permits for about 299 new dwelling units annually during the planning period. This figure is consistent with the 300 dwelling units approved annually during the 1999 to July 2008 period, but is still significantly below the 515 dwellings approved in 2002. The forecast of new units does not include dwellings that will be demolished and replaced. This analysis does not factor those units in; it assumes they will be replaced at the same site and will not create additional demand for residential land. Table 5-5. Demand for new housing units, Springfield UGB, 2010-2030 Source: Calculations by ECONorthwest based on safe harbor population forecast and assumptions described above. Variable Assumptions / Results Change in persons 14,577 minus Change in persons in group quarters 145 equals Persons in households 14,432 Average household size 2.54 New occupied DU 5,682 Average vacancy rate 5% Total new DU 5,980 Single-family dwelling units Percent single-family DU 60% New occupied single-family DU 3,588 Multiple family dwelling units Percent multiple family DU 40% New occupied multiple-family DU 2,392 Totals equals Total new occupied dwelling units 5,980 Dwelling units needed annually 299 DRAFT: Springfield Housing Needs Analysis ECONorthwest August 2009 Page 31 STEP 2: IDENTIFY RELEVANT NATIONAL, STATE, AND LOCAL DEMOGRAPHIC AND ECONOMIC TRENDS AND FACTORS THAT MAY AFFECT THE 20-YEAR PROJECTION OF STRUCTURE TYPE MIX NATIONAL HOUSING TRENDS The overview of national, state, and local housing trends builds from previous work by ECO and conclusions from The State of the Nation’s Housing, 2008 report from the Joint Center for Housing Studies of Harvard University. The Harvard report summarizes the national housing outlook for the next decade as follows: “Housing markets contracted for a second straight year in 2007. The national median single-family home price fell in nominal terms for the first time in 40 years of recordkeeping, leaving several million homeowners with properties worth less than their mortgages. With the economy softening and many home loans resetting to higher rates, an increasing number of owners had difficulty keeping current on their payments. Mortgage performance—especially on subprime loans with adjustable rates—eroded badly. Lenders responded by tightening underwriting standards and demanding a higher risk premium, accelerating the ongoing slide in sales and starts. “It is still uncertain how far, and for how long, the housing crisis will drive down household growth. Regardless, given the solid underpinnings of long-term demand—including the recent strength of immigration and the aging of the echo-boom generation into young adulthood—household growth will pick up again once the economy recovers. But if the nation suffers a prolonged economic downturn that results in lower immigration and more doubling up, household growth in 2010-2020 may fall short of the 14.4 million level currently projected. This evaluation presents a bleak outlook for housing markets and for homeownership in the short-term brought on by the subprime mortgage crisis. However, the image painted of the future looks brighter, as the increase in housing demand is naturally induced by the growth of the population in the necessary age groups. Following is a summary of key national housing trends: • By 2006, higher prices and rising interest rates had a negative impact on market demand. Investor demand, home sales and single-family starts dropped sharply. Growth in national sales prices also slowed. By 2007 and early 2008, housing market problems had reached the rest of the economy, resulting in a nationwide economic slowdown and fear of recession. • Homeownership rates are decreasing. After 12 successive years of increases, the national homeownership rate slipped in 2005, again in 2006 to 68.8%, and again in 2007 to 68.1%. The Joint Center for Housing Studies predicts that once the corrections made to work off the housing oversupply and prices start to recover, a return to traditional mortgage Page 32 ECONorthwest August 2009 DRAFT: Springfield Housing Needs Analysis products and the strength of natural demand will invigorate the homeownership rate. • The long-term market outlook shows that homeownership is still the preferred tenure. Over the next decade, 88% of net household growth is expected to come from gains in the number of homeowners. While further homeownership gains are likely during this decade, they are not assured. • Population increases will drive future demand. The Joint Center for Housing Studies indicates that demand for new homes could total as many as 14.4 million units nationally between 2010 and 2020. Nationally, the vast majority of these homes will be built in lower-density areas where cheaper land is in greater supply. • People and jobs have been moving away from central business districts (CBDs) for more than a century: the number of the country’s largest metropolitan areas with more than half of their households living at least 10 miles from the CBD has more than tripled from 13 in 1970 to 46 in 2000; in six metropolitan areas more than a fifth of households live at least 30 miles out. While people older than 45 years are generally continuing to move away from CBDs, younger people have begun to move nearer to CBDs. • Demand for higher density housing types exists among certain demographics. They conclude that because of persistent income disparities, as well as the movement of the echo boomers into young adulthood, housing demand may shift away from single-family detached homes toward more affordable multifamily apartments, town homes, and manufactured homes. Supply-side considerations, however, outweigh these demographic forces. • Immigration will play a key role in accelerating household growth over the next 10 years. Between 2000 and 2006, immigrants contributed to over 60% of household growth. Minorities will account for 68% of the 14.6 million projected growth in households for the 2005 to 2015 period. Immigrants now comprise a growing share of young adults and children in the United States. Twenty percent of Americans ages 25-34 are foreign born, and an additional 9% are second generation Americans. • An aging population, and of baby boomers in particular, will drive changes in the age distribution of households in all age groups over 55 years. A recent survey of baby boomers showed that more than a quarter plan to relocate into larger homes and 5% plan to move to smaller homes. Second home demand among upper-income homebuyers of all ages also continues to grow. Households aged 50 to 69 are expected to account for the purchase of nearly half a million second homes between 2005 and 2015. DRAFT: Springfield Housing Needs Analysis ECONorthwest August 2009 Page 33 • The Joint Center for Housing studies expects rental housing demand to grow by 1.8 million households over the next decade. Minorities will be responsible for nearly all of this increased demand. The minority share of renter households grew from 37% in 1995 to 43% in 2005. The minority share is forecast to exceed 50% of renter households in 2015. Demographics will also play a role. • Ratios of rent to income are forecast to continue to increase. In 2006, one in three American households spent more than 30% of income on housing, and more than one in seven spent upwards of 50%. The national trend towards increased rent to income ratios is mirrored regionally in that a salary of two to three times the 2007 Federal minimum wage of $5.85 is needed to afford rents in Lane County. The U.S Bureau of Census Characteristics of New Housing Report presents data that show trends in the characteristics of new housing for the nation, state, and local areas. Several trends in the characteristics of housing are evident from the New Housing Report: • Larger single-family units on smaller lots. Between 1997 and 2007 the median size of new single-family dwellings increased 15%, from 1,975 sq. ft. to 2,277 sq. ft. nationally and 18% in the western region from 1,930 sq. ft. to 2,286 sq. ft. Moreover, the percentage of units under 1,200 sq. ft. nationally decreased from 8% in 1997 to 4% in 2007. The percentage of units greater than 3,000 sq. ft. increased from 15% in 1997 to 26% of new one-family homes completed in 2007. In addition to larger homes, a move towards smaller lot sizes is seen nationally. Between 1994 and 2007 the percentage of lots under 7,000 sq. ft. increased by 13% from 29% of lots to 33% of lots. A corresponding 4% decrease in lots over 11,000 sq. ft. is seen. • Larger multifamily units. Between 1999 and 2007, the median size of new multiple family dwelling units increased by 15%. The percentage of multifamily units with more than 1,200 sq. ft. increased from 26% to 47% in the western region and from 28% to 50% nationally. The percentage of units with less than 600 sq. ft. stayed at 1% both regionally and nationally. • More household amenities. Between 1994 and 2007 the percentage of single-family units built with amenities such as central air conditioning, fireplaces, 2 or more car garages, or 2 or more baths all increased. The same trend in increased amenities is seen in multiple family units. A clear linkage exists between demographic characteristics and housing choice. This is more typically referred to as the linkage between life-cycle and housing choice and is documented in detail in several publications. Analysis of data from the Public Use Microsample (PUMS) in the 2000 Census to describe Page 34 ECONorthwest August 2009 DRAFT: Springfield Housing Needs Analysis the relationship between selected demographic characteristics and housing choice. Key relationships identified through this data include: • Homeownership rates increase as income increases; • Homeownership rates increase as age increases; • Choice of single-family detached housing types increases as income increases; • Renters are much more likely to choose multiple family housing types than single-family; and • Income is a stronger determinate of tenure and housing type choice for all age categories. STEP 3: DESCRIBE THE DEMOGRAPHIC CHARACTERISTICS OF THE POPULATION AND, IF POSSIBLE, HOUSING TRENDS THAT RELATE TO DEMAND FOR DIFFERENT TYPES OF HOUSING State and regional demographic and housing trends are important to a thorough understanding of the dynamics of the Springfield housing market. Springfield exists in a regional economy; trends in the region impact the local housing market. This section documents state and regional demographic and housing trends relevant to Springfield. DEMOGRAPHIC TRENDS This section reviews historical demographic trends in the Lane County and Springfield. Demographic trends provide a broader context for growth in a region; factors such as age, income, migration and other trends show how communities have grown and shape future growth. To provide context, we compare the Springfield with Lane County and Oregon where appropriate. Characteristics such as age and ethnicity are indicators of how population has grown in the past and provide insight into factors that may affect future growth. State Demographic Trends Oregon’s 2006-2010 Consolidated Plan includes a detailed housing needs analysis as well as strategies for addressing housing needs statewide.10 The plan concludes that “Oregon’s changing population demographics are having a significant impact on its housing market.” It identified the following population and demographic trends that influence housing need statewide: • 11th fastest growing in the United States • Facing dramatic housing cost increases 10 http://www.ohcs.oregon.gov/OHCS/HRS_Consolidated_Plan_5yearplan.shtml DRAFT: Springfield Housing Needs Analysis ECONorthwest August 2009 Page 35 • Facing median and adjusted incomes less than those of 1999 • Growing faster than national rates: 4.0% v. 3.3% and expecting a non- entitlement growth during this consolidated plan of about 6%, 82% of which will come from in-migration. • Increasingly older • Increasingly diverse • Increasingly less affluent11 Richard Bjelland, State Housing Analyst at the Housing and Community Services Department of the State of Oregon, analyzed recent demographic changes taking place in Oregon and discussed their implications in a 2006 presentation “Changing Demographics: Impacts to Oregon and the US.” Some of Bjelland’s most significant findings are summarized below: • Oregon’s minority population is growing quickly. Minorities made up 9.2% of the population in 1990 and 16.5% of the population in 2000, a 52% increase. • Hispanics and Latinos make up a large share of that population and their growth rate is higher than non-Hispanics/ Latinos. The growth rate of Oregon’s non-Hispanic/ Latino population between 1990 and 2000 was 15.3% compared to 144.3% for Hispanics and Latinos. • The birth rates of Hispanic/ Latino residents are higher than non- Hispanic/ Latino residents. In 1998, for the US, white non-Hispanic/ Latino residents had a birth rate of 12.3 per 1,000, lower than Asians and Pacific Islanders (16.4 per 1,000), black non-Hispanics (18.2 per 1,000) and Hispanic/ Latino (24.3 per 1,000). • The share of resident births and deaths in Oregon shows the implications of that birthrate: Hispanic/ Latino residents accounted for 17.4% of births but only 1.4% of deaths in Oregon for 2001. In addition, Hispanic/ Latino Oregonians are younger than non-Hispanic/ Latino residents: in 2000, 75.9% of Hispanic/ Latino residents of Oregon are under age 35, compared to 45.7% of non-Hispanic/ Latino residents. • In Oregon, Hispanic/ Latino per capita income in 2005 was only 44% of white per capita income. • Hispanic/ Latino residents of Oregon become homeowners at younger ages than non-Hispanic/ Latino residents. Table 5-6 shows that Hispanic/ Latino Oregonians under 45 have higher homeownership rates than non- Hispanic/ Latino residents. 11 State of Oregon Consolidated Plan, 2006-2010, pg. 23. Page 36 ECONorthwest August 2009 DRAFT: Springfield Housing Needs Analysis Table 5-6. Oregon homeownership rates by age of householder, 2000 Source: Richard Bjelland, State Housing Analyst at the Housing and Community Services Department of the State of Oregon, “Changing Demographics: Impacts to Oregon and the US” 2006. He obtained his data from US Census 2000. Note: Percentages represent percent of households in each age group that own homes; columns do not sum to 100%. Regional Demographic Trends Regional demographic trends largely follow the statewide trends discussed above, but provide additional insight into how demographic trends might affect housing in Springfield. Figure 5-1 shows the populations of Oregon, Lane County, and Springfield by age for 2000. Springfield has a greater proportion of its population less than 40 years old than Oregon and Lane County, especially residents aged 20-29 and under 9 years. Springfield has comparatively fewer residents over 40 than the state. Figure 5-1. Population distribution by age, Oregon, Lane County, and Springfield, 2000 Source: U.S. Census, 2000 Some outlying communities in the region have populations similar in age distribution to Springfield. Outlying communities with the largest percent of Age of householder Non-Hispanic/ Latino Hispanic/ Latino 25-34 10.2% 25.7% 35-44 20.6% 31.0% 45 and older 68.1% 39.4% 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% Under 9 10-19 20-29 30-39 40-49 50-59 60-69 70 and older AgePercent of populatio OR Lane County Springfield DRAFT: Springfield Housing Needs Analysis ECONorthwest August 2009 Page 37 households with children from the 2000 census were: Creswell (41%), Veneta (40%), Junction City (40%), and Coburg (38%). The communities with the smallest percent of households with children were Eugene (27%), Oakridge (28%), and Cottage Grove (35%). In the communities with larger shares of children, attendance rates of children in elementary school are not declining, unlike districts such as Oakridge, McKenzie, and Pleasant Hill. School districts that have experienced increases in the Kindergarten-2nd grade populations are Fern Ridge District 28J (increased since 2003), Lowell 71 (since 2004), Creswell 40 (since 1999 with a dip in 2004), and Junction City 69 (from 2002 to 2005). However, this data is based on small districts with small class sizes, so it is not entirely conclusive. Outlying communities with the largest percent of persons 65 and over from the 2000 Census were: Oakridge (21%) and Cottage Grove (15%). The community with the smallest percent of persons 65 and older was Veneta (9%). These data indicate that some outlying communities’ trend toward older populations, others trend towards younger populations with families with younger children. Table 5-7 shows population by age for Lane County for 2000 and 2006. The data show that Lane County grew by 13,479 people between 2000 and 2006, which is a 4% increase. The age breakdown shows that the County experienced an increase in population for every age group over age 25. The fastest growing age groups were aged 45 to 64 years and 65 and over. The group that experienced the fastest negative growth was ages 18-24. Table 5-7. Population by age, Lane County, 2000 and 2006 Source: U.S. Census, 2000 and Claritas, 2006 Table 5-8 shows Claritas Inc. population forecast by age for Lane County from 2006 to 2011. The data show that, with the exception of the 5-17 and 18-24 year old groups, each age group will experience growth and that groups aged 65 years and older and 45 to 64 years will grow at the fastest rates. The forecast shows that the 5 to 17 and 18 to 24 year age groups will decline. Age Group Number Percent Number Percent Number Percent Share Under 5 18,584 6% 18,056 5% -528 -3% 0% 5-17 55,230 17% 52,730 16% -2,500 -5% -1% 18-24 38,662 12% 34,666 10% -3,996 -10% -2% 25-44 88,849 28% 95,171 28% 6,322 7% 1% 45-64 78,680 24% 88,926 26% 10,246 13% 2% 65 and over 42,954 13% 46,889 14% 3,935 9% 1% Total 322,959 100% 336,438 100% 13,479 4% 0% 2000 2006 Change Page 38 ECONorthwest August 2009 DRAFT: Springfield Housing Needs Analysis Table 5-8. Claritas Inc. population projection by age, Lane County, 2006 and 2011 Source: Claritas, 2006 The data in Tables 5-7 and 5-8 suggest that Lane County is attracting older people and experiencing comparatively slow growth (or negative growth) in people under 44 years old. The age distribution in Figure 3 suggests a higher percentage of young adults (20-29) and children live in Springfield, indicating that Springfield’s population and age trends are somewhat different from the projections for the county as a whole. Between 1990 and 1999, almost 70% of Oregon’s total population growth was from net migration (in-migration minus out-migration), with the remaining 30% from natural increase (births minus deaths).12 Migrants to Oregon tend to have many characteristics in common with existing residents, with some differences— recent in-migrants to Oregon are, on average, younger and more educated, and are more likely to hold professional or managerial jobs, compared to Oregon’s existing population. The race and ethnicity of in-migrants generally mirrors Oregon’s established pattern, with one exception: Hispanics make up more than 7% of in-migrants but only 3% of the state’s population. The number-one reason cited by in-migrants for coming to Oregon was family or friends, followed by quality of life and employment.13 Migration is a significant component of population growth in Lane County. Seventy-three percent of population growth in Lane County between 1990 and 2000 was from in-migration. This figure remained at 73% for the 2000-2005 period.14 The U.S. Census collects information about migration patterns. Specifically, it asks households where their residence was in 1995 (5 years prior to the Census count). Table 5-9 shows place of residence in 1995 for Oregon, Lane County, and Springfield. The data show that Springfield residents are more mobile than Lane County and Oregon residents. Less than half of residents in Oregon, Lane County or Springfield lived in the same residence in 1995 as in 2000. Twenty-four 12 Portland State University, Population Research Center, 2000. 1990-2000 Components of Population Change 13 State of Oregon, Employment Department. 1999. 1999 Oregon In-migration Study. 14 Portland State University, Population Research Center, 2005. 2005 Oregon Population Report and contents Age Group Number Percent Number Percent Number Percent Share Under 5 18,056 5% 18,615 5% 559 3% 0% 5-17 52,730 16% 51,098 15% -1,632 -3% -1% 18-24 34,666 10% 31,827 9% -2,839 -8% -1% 25-44 95,171 28% 99,401 29% 4,230 4% 0% 45-64 88,926 26% 94,999 27% 6,073 7% 1% 65 and over 46,889 14% 52,765 15% 5,876 13% 1% Total 336,438 100% 348,705 100% 12,267 4% 0% 2006 Change2011 DRAFT: Springfield Housing Needs Analysis ECONorthwest August 2009 Page 39 percent of Oregonians, 20% of residents of Lane County and 19% of residents of Springfield lived in a different county in 1995. Eleven percent of residents of Springfield and 13% of residents of Lane County lived in a different state in 1995, compared with 12% of Oregonians. Table 5-9. Place of residence in 1995, Oregon, Lane County, and Springfield, persons 5 years and over Source: U.S. Census, 2000 Table 5-10 shows the number of persons of Hispanic or Latino origin for Oregon, Lane County, and Springfield for 1990 and 2000. Springfield has a lower proportion of Hispanic/Latino residents as Oregon and a higher proportion than Lane County. In 2000, Springfield’s population was 6.6 % Hispanic/Latino, compared with 4.5% of residents in Lane County. The Hispanic/Latino population grew faster in Springfield than in Lane County from 1990 to 2000. Springfield’s Hispanic/Latino population grew by 168% between 1990 and 2000. During the same period, Lane County’s Hispanic/Latino population grew by 111% and Oregon’ Hispanic/Latino population grew by 143%. Table 5-10. Persons of Hispanic or Latino origin, Oregon, Lane County, and Springfield, 1990 and 2000 Source: U.S. Census, 2000 Table 5-11 shows the number of Hispanic and Latino residents and the percent of Hispanic/ Latino residents as a percent of the total population between 1990 and 2000. The number of Hispanic and Latino residents is growing in all outlying Persons Percent Persons Percent Persons Percent Population 5 years and older 3,199,323 100% 304,463 100% 48,403 100% Same house in 1995 1,496,938 47% 142,447 47% 20,023 41% Different house in 1995 1,702,385 53% 162,016 53% 28,380 59% Same county 863,070 27% 94,788 31% 18,610 38% Different county 755,954 24% 61,639 20% 9,085 19% Same state 356,626 11% 23,526 8% 3,599 7% Different state 399,328 12% 38,113 13% 5,486 11% Oregon Lane County Springfield Oregon Lane County Springfield 1990 Total population 2,842,321 282,912 44,683 Hispanic or Latino 112,707 6,852 1,299 Percent Hispanic or Latino 4.0% 2.4% 2.9% 2000 Total population 3,421,399 322,959 52,729 Hispanic or Latino 273,938 14,488 3,475 Percent Hispanic or Latino 8.0% 4.5% 6.6% Change 1990-2000 Hispanic or Latino 161,231 7,636 2,176 Percent Hispanic or Latino 143% 111% 168% Page 40 ECONorthwest August 2009 DRAFT: Springfield Housing Needs Analysis areas, especially in Cottage Grove and Junction City, according to the US Census 1990 and 2000. Table 5-11. Persons of Hispanic or Latino origin, outlying communities, 1990 and 2000 Source: US Census 1990 and 2000 Table 5-12 shows household size by ethnicity for Oregon, Lane County, and Springfield. The number of people per household is similar for Oregon, Lane County, and Springfield for non-Hispanic households and Hispanic households. In each area, non-Hispanic households have a little less than 2.5 people per household. Households for Hispanic residents are larger, with between 3.2 and 3.9 people per household. The data show that Hispanic residents have between 0.7 and 1.4 additional people per household than non-Hispanic residents. Table 5-12. Household size by ethnicity for Oregon, Lane County, and Springfield, 2000 Source: U.S. Census, 2000 In conclusion: (1) Springfield residents are younger than residents of Lane County, even as county-wide age levels are trending older; (2) Springfield has a growing population of Hispanic/ Latino residents, whose higher average household size is larger than non-Hispanic/ Latino residents. Household type and relationship also has implications for housing needs. For example, one-person households need smaller dwellings than family households with children. Table 5-13 shows household type and relationship in Springfield for 1990, 2000, and the 2005-07 period. The data show an increase in all household types during this period. With respect to share of household types, one- person households increased from 25% to 30% of Springfield households. A corresponding decrease in share occurred in two or more person households, with most of the decrease in share coming from married couple family households. Number Percent of total Number Percent of total Number Percent Coburg 18 2% 29 3% 11 61% Cottage Grove 162 2% 417 5% 255 157% Creswell 109 4% 251 7% 142 130% Eugene 3,051 3% 6,843 5% 3,792 124% Junction City 73 2% 391 8% 318 436% Oakridge 141 5% 158 5% 17 12% Springfield 1,299 3% 3,651 7% 2,352 181% Veneta 50 2% 115 4% 65 130% 1990 2000 Change Oregon Lane County Springfield Non-Hispanic/ Latino 2.42 2.39 2.49 Hispanic/ Latino 3.87 3.19 3.50 DRAFT: Springfield Housing Needs Analysis ECONorthwest August 2009 Page 41 Table 5-13. Household type and relationship, Springfield, 1990, 2000 and 2005-07 Source: U.S. Census, 1990, 2000. American Community Survey (2005-07) Note: 2005-07 American Community Survey is based on pooled data from household surveys conducted in 2005, 2006 and 2007. HOUSING TRENDS Table 5-14 shows the total number of permitted dwellings (single-family and multi-family) by year for selected Lane County cities between 2000 and 2007. Table 5-14 shows that Eugene had the highest number of permitted units during the period, with Springfield and Creswell having the second- and third-highest. Junction City and Oakridge had the lowest number of permitted units. Most cities showed the highest numbers of permitted units over the time period either in 2004 or in 2005, although Springfield’s highest total was in 2003. Table 5-14. Total permitted dwellings (all types) by year, selected Lane County cities, 2000-2007 Source: U.S. Census, Building permits data site, http://censtats.census.gov/bldg/bldgprmt.shtml Note: These numbers a different than those provided by the City of Springfield that were used for the historical density analysis. We believe the data provided by the City are more accurate. Table 5-15 shows the permits issued for new single-family dwellings in selected Lane County cities between 1996 and 2007. Table 5-15 shows that Springfield’s number of permits issued for single-family dwellings remained consistently between 220 and 245 between 1998 and 2003, and has recently fluctuated at lower levels. Household Type Number Percent Number Percent Number Percent Number Percent Share 1-person household 4,346 25% 5,206 25% 6,646 30% 2,300 53% 5% 2 or more person household 13,101 75% 15,308 75% 15,707 70% 2,606 20% -5% Family households: 11,593 66% 13,479 66% 13,915 62% 2,322 20% -4% Married-couple family 8,572 49% 9,373 46% 9,832 44% 1,260 15% -5% Other family: 3,021 17% 4,106 20% 4,083 18% 1,062 35% 1% Male householder, no wife present 658 4% 1,164 6% 1,017 5% 359 55% 1% Female householder, no husband present 2,363 14% 2,942 14% 3,066 14% 703 30% 0% Nonfamily households: 1,508 9% 1,829 9% 1,792 8% 284 19% -1% Total 17,447 100% 20,514 100% 22,353 100% 4,906 28% 1990 2000 2005-07 ACS Change 1990-2005/07 City 2000 2001 2002 2003 2004 2005 2006 2007 Total Eugene 744 760 828 611 876 1,327 731 555 6432 Springfield 274 272 290 324 164 231 211 265 2031 Creswell 26 67 82 93 153 62 56 84 623 Cottage Grove 2917286844865332 357 Junction City 15 12 12 13 10 13 8 78 161 Veneta 11 24 43 96 112 117 128 62 593 Oakridge 141084913 40 Total 1,100 1,156 1,284 1,205 1,367 1,840 1,196 1,089 10,237 Page 42 ECONorthwest August 2009 DRAFT: Springfield Housing Needs Analysis Table 5-15. Permits issued for new single-family dwellings, selected Lane County cities, 1996-2007 Source: www.city-data.com. Table 5-16 shows the total permitted single-family and multifamily dwellings (aggregated) by year between 2000 and 2007 for selected Lane County cities. Table 5-16 shows that Eugene consistently issues permits for the most multi- family units among the cities shown, whereas Oakridge, Veneta, Junction City and Creswell only issue permits for the occasional multifamily unit. Springfield typically issues permits for around 50 multifamily units each year, although it issued permits for 133 units in 2005. City 19961997199819992000200120022003200420052006 2007 Eugene 845 721 665 656 619 633 673 559 583 756 528 297 Springfield N/A 192 221 239 222 225 243 232 128 98 134 170 Coburg 12911103176264 1 Creswell 30 43 45 32 26 67 80 91 133 60 56 84 Cottage Grove3719544529171519347039 22 Junction City 53 19 13 28 15 12 34 13 10 13 8 78 Veneta 13 10 11 19 11 24 43 96 112 117 128 62 Oakridge 52112121084911 TOTAL 995 1,015 1,021 1,041 926 981 1,096 1,016 1,010 1,124 906 725 DRAFT: Springfield Housing Needs Analysis ECONorthwest August 2009 Page 43 Table 5-16. Total permitted single-family and multifamily dwellings (aggregated) by year, selected Lane County cities, 2000-2007 Source: U.S. Census, Building permits data site, http://censtats.census.gov/bldg/bldgprmt.shtml Figure 5-2 and Table 5-17 show where residents of Springfield worked in 2006. Figure 5-2 and Table 5-17 show that more than 80% of residents of Springfield worked in Lane County, with 26% of Springfield residents working in Eugene and 28% working in Springfield. About 27% of Springfield residents worked in unincorporated Lane County. City 2000 2001 2002 2003 2004 2005 2006 2007 Eugene Single family 619 633 673 559 583 756 528 297 Multifamily 125 127 155 52 293 571 203 258 Springfield Single family 222 225 243 232 128 98 134 170 Multifamily 52 47 47 92 36 133 77 95 Coburg Single family N/A N/A N/A N/A N/A N/A N/A N/A Multifamily N/A N/A N/A N/A N/A N/A N/A N/A Creswell Single family 26 67 80 91 133 60 56 84 Multifamily 0 0 2 2 20 2 0 0 Cottage Grove Single family 29 17 15 19 34 70 39 22 Multifamily 0 0 13 49 10 16 14 10 Junction City Single family 15 12 12 13 10 13 8 78 Multifamily 0 0 0 0 0 0 0 0 Veneta Single family 11 24 43 96 112 117 128 62 Multifamily 0 0 0 0 0 0 0 0 Oakridge Single family 121084911 Multifamily 0 2 0 0 0 0 0 2 PPage 44 Figure 5 Source: US ECONorth 5-2. Places S Census Bure Ta Sp So Ba No Sp of L L L W M M D A T hwest s where res eau, LED Origin able 5-17. P pringfield w ource: US Cens ase (2nd Quarte ote: Percent co The implic pringfield’s w f Springfield Location ane County Springfield Eugene Other Lane C inn County Washington C Multnomah Co Marion County Douglas Coun All Other Loca Total August sidents in n-Destination D Places whe were empl sus Bureau, LE er 2003) lumn adds to 1 cation of the workforce li d. Residents o Nu 1 County ounty ounty y ty tions 2 2009 Springfield Data Base (2nd ere residen oyed, 2003 ED Origin-Dest 101% due to ro e data presen ives in Lane of Springfiel umber Perce 18,706 8 6,512 2 6,034 2 6,160 2 641 619 488 468 463 1,837 23,222 10 DRAFT: S d were em d Quarter 2003 nts of 3 ination Data ounding errors nted in this se County, but ld are more ent 1% 8% 6% 7% 3% 3% 2% 2% 2% 8% 0% Springfield Ho ployed, 20 ) ection is that t many do no likely to wor ousing Needs 006 t majority of ot reside in t rk in Eugene s Analysis f the City e than in DRAFT: Springfield Housing Needs Analysis ECONorthwest August 2009 Page 45 Springfield. This analysis shows that businesses in Springfield have access to the labor force in parts of Lane County. SUMMARY OF KEY DEMOGRAPHIC AND HOUSING TRENDS Springfield has a larger share of young people than Lane County as a whole • Springfield has a higher percentage of people under age 30 than Lane County. • Between 2000 and 2006, Lane County experienced changes in the age structure of its residents. Age groups under age 25 experienced negative growth; the fastest growing age groups were people aged 45 to 64 and 65 and over. This indicates that retirees or people nearing retirement are moving to Lane County; Springfield’s share of young people shows that its age structure is experiencing different age trends. Migration is an important component of recent growth in Lane County and will continue to be a key factor in future population growth. • In-migration accounted for 73% of population growth in Lane County between 1990 and 2000 and between 2000 and 2005. • Springfield’s population was more mobile than the County’s as a whole. Only 41% of the residents of Springfield lived in the same house in 2000 as they did in 1995 compared to 47% for all of Lane County. A greater share of the population in Springfield moved within Lane County during that time period (38%) than for Lane County as a whole (31%). Single-person households are increasing faster than other household types. • Between 1990 and 2005/07 one-person households increased from 25% to 30% of Springfield households. A corresponding decrease in share occurred in two or more person households, with most of the decrease in share coming from married couple family households Springfield is becoming more ethnically diverse. • Springfield’s Hispanic/Latino population grew by 168% (2,352 persons) between 1990 and 2000, compared with 111% growth in Lane County’s Hispanic/Latino population during the same period. • Other smaller communities near Springfield experienced significant growth in Hispanic/ Latino populations. The communities experiencing the largest increase in the Hispanic/ Latino populations were Eugene (3,792), Junction City (318), Cottage Grove (255), and Creswell (142). Page 46 ECONorthwest August 2009 DRAFT: Springfield Housing Needs Analysis Hispanic/Latino residents have larger, younger households. • The birth rates for Hispanic/ Latino residents (1998 data) are 24.3 per 1,000 compared to 12.3 per 1,000 for non-Hispanic/ Latino residents. • Hispanic/ Latino residents accounted for 17.4% of births and only 1.4% of deaths in Oregon in 2001. • In 2000, 75.9% of Hispanic/ Latino Oregonians are under 35 compared to 45.7% of non-Hispanic/ Latino residents. • The average size of a Hispanic/Latino household in 2000 in Lane County was 3.2 people, compared with 2.4 people in non-Hispanic households. Household sizes in Springfield were larger: 2.5 for non-Hispanic households and 3.5 for Hispanic/ Latino households. Hispanic/Latino residents typically have lower incomes but become homeowners at younger ages than non-Hispanic/ Latino residents. • Per capita income in Oregon in 2005 for Hispanic and Latino residents was only 44% of white per capita income/ • 56.7% of Hispanic/ Latino residents of Oregon under age 45 are homeowners, compared to 30.8% of non-Hispanic/ Latino residents Springfield is part of a complex, interconnected regional housing market. • Among selected Lane County cities, Springfield has the third-highest permit average permit valuation for 2005 (behind Coburg and Eugene) and average construction costs for 2005 were highest in Springfield. • However, median sales prices for Springfield were lower between 1999 and 2007 than median prices in Lane County, and Springfield had the lowest median sales prices in 2007 among all of the selected cities. • Commuting is typical throughout the region: Springfield’s workforce lives in Lane County, but many do not reside in the City of Springfield. Since 2000, housing starts in the selected cities within Lane County have been dominated by single-family types. • The data show that new housing development in the 2000-2007 period was predominately single-family housing types. In fact, only 32% of all units for which building permits were issued in the 2000-2007 were for multifamily housing types. • Springfield’s number of permits issued for single-family dwellings remained consistently above 220 between 1998 and 2003, and dropped to below 135 per year between 2004 and 2007. DRAFT: Springfield Housing Needs Analysis ECONorthwest August 2009 Page 47 Housing types are trending towards larger units on smaller lots. • Between 1997 and 2007 the median size of new single-family dwellings increased 15%, from 1,975 sq. ft. to 2,277 sq. ft. nationally and 18% in the western region from 1,930 sq. ft. to 2,286 sq. ft. Moreover, the percentage of units under 1,200 sq. ft. nationally decreased from 8% in 1997 to 4% in 2007. The percentage of units greater than 3,000 sq. ft. increased from 15% in 1997 to 26% of new one-family homes completed in 2007. • In addition to larger homes, a move towards smaller lot sizes is seen nationally. Between 1994 and 2007 the percentage of lots under 7,000 sq. ft. increased by 13% from 29% of lots to 33% of lots. A corresponding 4% decrease in lots over 11,000 sq. ft. is seen. • Even when controlling for income and savings, level of education, age, marital status, family size, the housing market in which the unit was located [and other factors], compared to whites both black families and Hispanic families had significantly lower likelihood of homeownership, lower house values (for owners) and lower rents (for renters).15 • Minority households have substantially lower rents than white households.16 • Hispanic households, particularly low-income families, have higher levels of mortgage debt than do white households, although their house values are lower than whites. This suggests a substantial difference in borrowing or loan terms for Hispanics. 17 IMPLICATIONS OF DEMOGRAPHIC AND HOUSING TRENDS FOR HOUSING NEED The purpose of the analysis thus far has been to give some background on the kinds of factors that influence housing choice, and in doing, to convey why the number and interrelationships among those factors ensure that generalizations about housing choice are difficult and prone to inaccuracies. There is no question that age affects housing type and tenure. Mobility is substantially higher for people aged 20 to 34. People in that age group will also have, on average, less income than people who are older. They are less likely to have children. All of these factors mean that younger households are much more likely to be renters; renters are more likely to be in multi-family housing. 15 Boehm, Thomas P. and Alan M. Schlottmann, “Housing Tenure, Expenditure, and Satisfaction Across Hispanic, African American, and White Households: Evidence from the American Housing Survey.” US Department of Housing and Urban Development, February 2006. 16 Boehm, Thomas P. and Alan M. Schlottmann, “Housing Tenure, Expenditure, and Satisfaction Across Hispanic, African American, and White Households: Evidence from the American Housing Survey.” US Department of Housing and Urban Development, February 2006. 17 Boehm, Thomas P. and Alan M. Schlottmann, “Housing Tenure, Expenditure, and Satisfaction Across Hispanic, African American, and White Households: Evidence from the American Housing Survey.” US Department of Housing and Urban Development, February 2006. Page 48 ECONorthwest August 2009 DRAFT: Springfield Housing Needs Analysis The data illustrate what more detailed research has shown and what most people understand intuitively: life cycle and housing choice interact in ways that are predictable in the aggregate; age of the household head is correlated with household size and income; household size and age of household head affect housing preferences; income affects the ability of a household to afford a preferred housing type. The connection between socioeconomic and demographic factors, on the one hand, and housing choice, on the other, is often described informally by giving names to households with certain combinations of characteristics: the "traditional family," the "never marrieds," the "dinks" (dual- income, no kids), the "empty nesters."18 Thus, simply looking at the long wave of demographic trends can provide good information for estimating future housing demand. Thus, one is ultimately left with the need to make a qualitative assessment of the future housing market. Following is a discussion of how demographic and housing trends are likely to affect housing in Springfield for the next 20-years: • On average, future housing will look a lot like past housing. That is the assumption that underlies any trend forecast, and one that allows some quantification of the composition of demand for new housing. As a first approximation, the next five years, and maybe the first 10 years, of residential growth will look a lot like the last five years. • If the future differs from the past, it is likely to move in the direction (on average) of smaller units and more diverse housing types. Most of the evidence suggests that the bulk of the change will be in the direction of smaller average house and lot sizes for single-family housing. In summary, smaller households, an aging population, increasing housing costs, and other variables are factors that support the conclusion of smaller and less expensive units and a broader array of housing choices. • No amount of analysis is likely to make the long-run future any more certain: the purpose of the housing forecasting in this study is to get an approximate idea about the long run so policy choices can be made today. It is axiomatic among economic forecasters that any economic forecast more than three (or at most five) years out is highly speculative. At one year one is protected from being disastrously wrong by the shear inertia of the economic machine. But a variety of factors or events could cause growth forecasts to be substantially different. 18 See Planning for Residential Growth: A Workbook for Oregon's Urban Areas (June 1997). DRAFT: Springfield Housing Needs Analysis ECONorthwest August 2009 Page 49 STEP 4: DETERMINE THE TYPES OF HOUSING THAT ARE LIKELY TO BE AFFORDABLE TO THE PROJECTED POPULATION BASED ON HOUSEHOLD INCOME Step four of the housing needs assessment results in an estimate of need for housing by income and housing type. This requires some estimate of the income distribution of future households in the community. ECO developed these estimates based on estimated incomes of households that live in Springfield. INCOME AND AFFORDABILITY OF HOUSING This section summarizes regional and local income trends and housing cost trends. Income is one of the key determinants in housing choice and households’ ability to afford housing. A review of historical income and housing price trends provides insights into the local and regional housing markets. Table 5-18 shows a set of inflation adjusted income indicators for Eugene, Springfield and Lane County. The results paint a mixed picture, but generally suggest that income (by most measures) decreased during the 1980s, and increased during the 1990s. Overall, median household and median family incomes remained relatively flat during the 20-year period between 1979 and 1999. The data show that the percentage of persons below the poverty level increased in Springfield and Lane County, and decreased slightly in Eugene between 1979 and 1999. Table 5-18. Inflation adjusted income indicators (in 1999 dollars), Eugene, Springfield and Lane County, 1979, 1989, and 1999 Source: U.S. Census. Notes: All dollar amounts in 1999 dollars. 1979 income converted to 1999 dollars using 3.06 inflation factor. 1989 income converted to 1999 dollars using 1.35 inflation factor. City 1979 1989 1999 Eugene Median HH income $34,493 $34,248 $35,850 Median Family income $46,960 $46,107 $48,527 Per Capita Income $18,029 $18,746 $21,315 % Persons Below Poverty Level 14.7% 17.0% 14.4% Springfield Median HH income $34,248 $29,608 $33,031 Median Family income $38,981 $34,332 $38,399 Per Capita Income $14,676 $13,800 $15,616 % Persons Below Poverty Level 15.2% 16.5% 17.1% Lane County Median HH income $37,521 $34,112 $36,942 Median Family income $44,920 $41,530 $45,111 Per Capita Income $16,837 $16,970 $19,681 % Persons Below Poverty Level 12.8% 14.5% 17.9% Year Page 50 ECONorthwest August 2009 DRAFT: Springfield Housing Needs Analysis A typical standard used to determine housing affordability is that a household should pay no more than 30% of its total monthly household income for housing, including utilities. According to the U.S. Census, nearly 19,000 households in the region—about one-third—paid more than 30% of their income for housing in 2000. One way of exploring the issue of financial need is to review wage rates and housing affordability. Table 5-19 shows an analysis of affordable housing wage and rent gap for households in Springfield at different percentages of median family income (MFI). The data are for a typical family of four. The results indicate that a household must earn about $14.00 an hour to afford a two-bedroom unit according to HUD's market rate rent estimate. Table 5-19. Analysis of affordable housing wage and rent gap by HUD income categories, Eugene-Springfield, 2007 Source: HUD, Oregon office; analysis by ECONorthwest MFI: Median family income The total amount a household spends on housing is referred to as cost burden. Total housing expenses are generally defined to include payments and interest or rent, utilities, and insurance. HUD guidelines indicate that households paying more than 30% of their income on housing experience “cost burden” and households paying more than 50% of their income on housing experience “severe cost burden.” Using cost burden as an indicator is consistent with the Goal 10 requirement of providing housing that is affordable to all households in a community. Table 5-20 shows housing costs as a percent of income by tenure for Springfield households in 2000. The data show that about 26% of Springfield households experienced cost burden in 2000. The rate was much higher for homeowners (31%) than for renters (18%). This finding is unusual for Oregon cities—it is much more common for renters to experience higher rates of cost burden. Income Level Number of HH Percent Affordable Monthly Housing Cost Crude Estimate of Affordable Purchase Owner-Occupied Unit Est. Number of Owner Units Est. Number of Renter Units Surplus (Deficit) Notes Less than $10,000 2,240 12% $0 to $250 $0 to $25,000 33 706 (1,501) $10,000 to $14,999 1,574 8% $250 to $375 $25,000 to $37,000 14 825 (735) $15,000 to $24,999 3,254 17% $375 to $625 $37,500 to $62,500 172 6,523 3,441 2007 HUD FMR studio: $478; 1 bdrm: $581; 2 bdrm: $654 $25,000 to $34,999 2,870 15% $625 to $875 $62,500 to $87,500 1,019 959 (892) HUD FMR 2 bdrm: $735 $35,000 to $49,999 3,625 19% $875 to $1,250 $87,500 to $125,000 4,791 152 1,318 HUD FMR 3 bdrm: $1028 $50,000 to $74,999 3,476 18% $1,250 to $1,875 $125,000 to $187,500 2,938 42 (496) Lane County MFI: $52,200 $1,305 $130,500 $75,000 to $99,999 1,066 6% $1,875 to $2,450 $187,500 to $245,000 495 9 (563) $100,000 to $149,999 573 3% $2,450 to $3,750 $245,000 to $375,000 133 0 (440) $150,000 or more 188 1% More than $3,750 More than $375,000 56 0 (132) Total 18,865 100% 9,650 9,215 0 DRAFT: Springfield Housing Needs Analysis ECONorthwest August 2009 Page 51 Table 5-20. Housing cost as a percentage of household income, Springfield, 2000 Source: 2000 Census Table 5-21 shows a rough estimate of affordable housing cost and units by income levels for Springfield in 2000. Several points should be kept in mind when interpreting this data: • Because all of the affordability guidelines are based on median family income, they provide a rough estimate of financial need and may mask other barriers to affordable housing such as move-in costs, competition for housing from higher income households, and availability of suitable units. They also ignore other important factors such as accumulated assets, purchasing housing as an investment, and the effect of down payments and interest rates on housing affordability. • Households compete for housing in the marketplace. In other words, affordable housing units are not necessarily available to low income households. For example, if an area has a total of 50 dwelling units that are affordable to households earning 30% of median family income, 50% of those units may already be occupied by households that earn more than 30% of median family income. The data in Table 5-21 indicate that in 2000: • About 20% of Springfield households could not afford a studio apartment according to HUD's estimate of $478 as fair market rent; • Approximately 45% of Springfield households could not afford a two- bedroom apartment at HUD's fair market rent level of $735; • A household earning median family income ($52,200) could afford a home valued up to about $130,500. Percent of Income Number Percent Number Percent Number Percent Lest than 20% 4,125 12% 11,965 64% 16,090 30% 20% - 24% 8,852 26% 1,238 7% 10,090 19% 25% - 29% 6,376 19% 1,018 5% 7,394 14% 30% - 34% 4,437 13% 989 5% 5,426 10% 35% - 49% 5,551 16% 1,338 7% 6,889 13% 50% or more 4,988 15% 2,036 11% 7,024 13% Total 34,329 100% 18,584 100% 52,913 100% Cost Burden 10,539 31% 3,374 18% 13,913 26% Severe Cost Burden 4,988 15% 2,036 11% 7,024 13% Owners Renters Total Page 52 ECONorthwest August 2009 DRAFT: Springfield Housing Needs Analysis Table 5-21. Rough estimate of housing affordability, Springfield, 2000 Sources: 2000 Census, HUD Section 8 Income Limits, HUD Fair Market Rent. Based on Oregon Housing & Community Services. Housing Strategies Workbook: Your Guide to Local Affordable Housing Initiatives, 1993. Notes: FMR-Fair market rent The conclusion based on the data presented in Table 5-21 is that in 2000 Springfield had a significant deficit of more than 2,200 affordable housing units for households that earn less than $15,000 annually. Housing prices have increased significantly in the past five years; the affordability gap for lower income households has probably increased considerably. The next section examines changes in housing cost since 2000. Changes in housing cost According to the Office of Federal Housing Enterprise Oversight, the average sales price of a single-family home in the Eugene-Springfield MSA increased 229% between 2000 and 2006. A key concern expressed by the City was that the housing needs analysis and runs of the HCS housing needs model reflect recent trends in the regional housing market. To quantify these trends, ECO analyzed data from two sources: (1) sales data from the Lane County Assessor; and (2) rental data from Duncan & Brown, an Eugene-based real estate analysis firm that conducts rent surveys for the Metropolitan Region. The sales database provided to ECO by the City of Springfield included 34,680 property sales.19 For purposes of comparison, the database included Creswell, Cottage Grove, Eugene, Junction City, Springfield, and Veneta. Table 5-22 shows sales prices for single-family dwellings for Lane County and Springfield between 1999 and 2006. Table 5-22 shows that Springfield median sales prices have been lower than median sales prices in Lane County over the entire time period. Median sales prices also increased at a slower rate in Springfield; percent change in median sales prices between 1999 and 2006 for Lane County was 73%; in Springfield it was 64%. Sales prices for single-family dwellings peaked in 2007 and had declined to about $175,000 by the first quarter of 2009. 19 The sales data was obtained through queries of the Regional Land Information Database (www.rlid.org). Income Level Number of HH Percent Affordable Monthly Housing Cost Crude Estimate of Affordable Purchase Owner-Occupied Unit Est. Number of Owner Units Est. Number of Renter Units Surplus (Deficit) Notes Less than $10,000 2,240 11.9% $0 to $250 $0 to $25,000 33 706 -1,501 $10,000 to $14,999 1,574 8.3% $250 to $375 $25,000 to $37,000 14 825 -735 $15,000 to $24,999 3,254 17.3% $375 to $625 $37,500 to $62,500 172 6,523 3,441 2007 HUD FMR studio: $478; 1 bdrm: $581; 2 bdrm: $654 $25,000 to $34,999 2,870 15.2% $625 to $875 $62,500 to $87,500 1,019 959 -893 HUD FMR 2 bdrm: $735 $35,000 to $49,999 3,625 19.2% $875 to $1,250 $87,500 to $125,000 4,791 152 1,318 HUD FMR 3 bdrm: $1028 $50,000 to $74,999 3,476 18.4% $1,250 to $1,875 $125,000 to $187,500 2,939 42 -495 Lane County MFI: $52,200 $1,305 $130,500 $75,000 to $99,999 1,066 5.7% $1,875 to $2,450 $187,500 to $245,000 495 9 -563 $100,000 to $149,999 573 3.0% $2,450 to $3,750 $245,000 to $375,000 133 0 -440 $150,000 or more 188 1.0% More than $3,750 More than $375,000 56 0 -132 Total 18,866 100.0% 9,651 9,215 0 DRAFT: Springfield Housing Needs Analysis ECONorthwest August 2009 Page 53 Table 5-22. Sales price for single-family dwellings, Lane County and Springfield, 1999-2006 Source: RLID, Analysis by ECONorthwest Table 5-23 shows the average and median sales prices for single-family dwellings in selected Lane County cities between 1999 and 2006. Table 5-23 shows that median sales prices increased throughout the county during this period. In 2006, the highest median sales prices were in Eugene, the rest of the county, and Creswell. Lowest median sales prices in 2006 were in Springfield and Junction City. Prices increased the most in Creswell (87%) and Eugene (80%). Prices increased the least in Springfield (64%) and Junction City (67%). Table 5-23. Average and median sales price, single-family dwellings, Lane County cities, 1999-2006 Source: RLID, Analysis by ECONorthwest Year # of Sales Average Sales Price Median Sales Price # of Sales Average Sales Price Median Sales Price 1999 3,940 140,564 127,900 843 118,520 112,745 2000 3,171 144,142 129,900 687 119,152 112,750 2001 3,808 149,252 133,000 881 122,700 118,450 2002 4,291 156,603 138,165 886 129,432 121,900 2003 4,761 168,780 149,000 1,042 135,719 128,000 2004 5,092 183,497 162,500 1,112 149,082 137,900 2005 5,326 222,835 194,000 1,157 177,260 165,000 2006 4,291 249,438 221,000 973 201,000 185,000 Change 1999-2006 Number 351 108,874 93,100 130 82,480 72,255 Percent 9% 77% 73% 15% 70% 64% Lane County Springfield City 1999 2000 2001 2002 2003 2004 2005 2006 Dollars Percent Median Sales Price Cottage Grove 112,000 103,500 109,750 110,000 120,000 128,000 157,000 195,000 83,000 74% Creswell 112,500 118,000 109,000 121,750 125,000 142,500 180,750 210,500 98,000 87% Eugene 136,900 140,000 143,500 149,900 163,000 179,900 215,000 247,000 110,100 80% Junction City 113,250 112,500 115,150 119,638 120,750 138,000 162,000 189,000 75,750 67% Springfield 112,745 112,750 118,450 121,900 128,000 137,900 165,000 185,000 72,255 64% Veneta 115,250 110,000 112,000 119,950 126,500 139,500 173,635 200,000 84,750 74% Rest of County 111,000 108,750 110,000 121,250 127,750 160,000 212,500 216,000 105,000 95% Average Sales Price Cottage Grove 118,112 106,767 113,150 116,152 122,298 134,854 168,828 193,157 75,045 64% Creswell 115,662 121,697 114,497 130,475 129,891 162,095 200,008 223,307 107,645 93% Eugene 152,872 159,920 165,366 173,351 188,484 202,750 246,272 275,674 122,802 80% Junction City 120,218 116,282 120,164 131,761 130,170 149,294 169,287 191,574 71,356 59% Springfield 118,520 119,152 122,700 129,432 135,719 149,082 177,260 201,000 82,480 70% Veneta 121,039 111,754 111,961 118,976 134,297 148,313 178,916 213,220 92,181 76% Rest of County 124,741 120,724 136,013 134,572 152,744 181,894 234,178 246,311 121,570 97% Year Increase (1999-2006) Page 54 ECONorthwest August 2009 DRAFT: Springfield Housing Needs Analysis Table 5-24 shows the median contract rent for Lane County cities. The highest median contract rents from the 2000 Census were in Eugene and Springfield. The lowest median contract rents were in Oakridge and Creswell. Table 5-24. Median contract rent, Lane County cities, 1999 Source: US Census 2000 Vacancy rates have generally decreased in Eugene-Springfield rental market since 2000. Vacancy rates for studio, 1- and 2-bedroom apartments all decreased from between 4.1-4.7% to between 1.1-2.1% between fall 2000 and 2006. Apartment rents have remained relatively stable, increasing between 4% and 10% between 2000 and 2005.20 Table 5-25 shows average monthly cost of rental units in Springfield for the 2000 to 2005 period. Rental units were separated into two categories: (1) units built prior to 1988 and (2) units built since 1988. The majority of Springfield's units were built prior to 1988. Rents increased based on the number of bedrooms. Rents ranged from $392 for a studio unit in 2000 to $646 for a three-bedroom unit in 2004. Rents for units with a similar number of bedrooms were higher for newer units. For instance, the average rental cost of a two-bedroom unit built prior to 1988 was $529 compared to $620 for a two-bedroom unit built since 1988, a difference of $91 per month. Over the six-year period, rents increased by between $19 and $56 per month. Monthly rental costs of two-bedroom units had the largest increases, $34 per month for older units and $56 per month for newer units. Rent for studio, one- bedroom, and three-bedroom units increased all increased by about $20 per month. 20 Duncan & Brown Apartment Report. Fall 2000-Fall 2006. Daniel J. Puffinburger, Corey S. Dingman, Duncan & Brown Real Estate Analysts Location Rent Eugene 566$ Springfield 518$ Veneta 502$ Coburg 498$ Junction City 491$ Cottage Grove 456$ Creswell 417$ Oakridge 384$ DRAFT: Springfield Housing Needs Analysis ECONorthwest August 2009 Page 55 Table 5-25. Average rental monthly costs by unit type, Springfield, 2000 to 2005 Source: Duncan & Brown Apartment Rent Report, 2000 to 2005; Calculations by ECONorthwest Note: Blank values indicate that there were too few units in the survey to include in the summary. Table 5-26 shows a comparison of change in rental costs during the 2000 to 2005 period for Springfield and Eugene. Rental costs were higher in Eugene than in Springfield. The difference in rental costs for all units, regardless when they were built, ranged from $39 per month for a studio unit to $211 per month for a three-bedroom unit, increasing with the number of bedrooms. The difference in average rental costs was greater for newer and larger units. Newer one-bedroom units cost an average of $74 per month more to rent in Eugene than Springfield. Newer two-bedroom units cost an average of $166 more to rent in Eugene than Springfield. Table 5-26. Comparison of average rental monthly costs by unit type, Springfield and Eugene, 2000 to 2005 Source: Duncan & Brown Apartment Rent Report, 2000 to 2005; Calculations by ECONorthwest Note: Blank values indicate that there were too few units in the survey to include in the summary. Figure 5-4 shows a comparison of change in average rental costs and average sales price in Springfield between 2000 and 2005. Over the five-year period average sales price increased by 46%, compared to a 7% change in average rental Year Studio One Bedroom Two Bedrooms Three Bedrooms Studio One Bedroom Two Bedrooms Three Bedrooms 2000 $392 $428 $514 $594 -- -- $588 -- 2001 $394 $423 $523 $601 -- -- $583 -- 2002 $389 $431 $526 $619 -- $575 $615 -- 2003 $386 $438 $531 $600 $550 $550 $642 -- 2004 $388 $437 $533 $633 -- $575 $646 -- 2005 $414 $447 $548 $615 -- $575 $644 -- Amount $22 $19 $34 $21 -- -- $56 -- Percent 5.6% 4.4% 6.6% 3.5% -- -- 9.5% -- AAGR 1.10% 0.87% 1.29% 0.70% -- -- 1.84% -- Units Built Prior to 1988 Units Built Since 1988 Change 2000 to 2005 Studio One Bedroom Two Bedrooms Three Bedrooms Springfield Built prior to 1988 $394 $434 $529 $610 Built since 1988 -- $569 $620 -- All rentals $416 $488 $574 $610 Eugene Built prior to 1988 $400 $483 $611 $719 Built since 1988 $623 $645 $786 $924 All rentals $456 $564 $699 $822 Difference (Eugene minus Springfield) Built prior to 1988 $6 $49 $82 $109 Built since 1988 -- $76 $166 -- All rentals $40 $74 $124 $211 Page 56 ECONorthwest August 2009 DRAFT: Springfield Housing Needs Analysis costs. The greatest increases in average sales price occurred since 2003, while average rental costs remained relatively flat since 2003. Since 2005, average sales prices have continued increasing at a faster rate than average rental costs. The increase in average sales price in Springfield between 2005 and 2006 was about 13%. According to the Fall 2006 Duncan & Brown Apartment Report, changes in average rental costs in Springfield were comparable to increases in recent years.21 Figure 5-4. Comparison of annual change in average rental costs and average sales price, Springfield, 2000 to 2005 Source: Duncan & Brown Apartment Rent Report, 2000 to 2005; RLID; Calculations by ECONorthwest The analysis of housing starts, sales prices, and rents presented in this section leads us to several conclusions: • The housing market peaked in 2007 and sales prices declined in 2008 and the first quarter of 2009. Springfield single-family housing starts have declined since 2003. The overall number of permits for new single-family residences issued regionwide has remained remarkably stable; 21 The Fall 2006 Duncan & Brown Apartment Report did not present average rent by unit type like they did in previous reports. As a result, we were not able to include 2006 average rents in this analysis. 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% 18.0% 20.0% 2001 2002 2003 2004 2005Annual Percent ChangeYear Average Rental Costs Average Sales Price DRAFT: Springfield Housing Needs Analysis ECONorthwest August 2009 Page 57 • New construction costs are higher than regional averages. Springfield’s permit valuations and construction costs have generally been on or near the middle or towards the high end compared with selected Lane County cities; • Price increases are lower than in other cities. Springfield’s median sales prices for single-family dwellings have increased the smallest amount compared with selected Lane County cities; • Single-family development has dominated new construction. Multi-family dwelling units do not make up a high percentage of units constructed in Springfield and other selected Lane County cities; • Sales prices increased much faster than rental rates. Over the five-year period between 2000 and 2005 average sales price increased by 46%, compared to a 7% change in average rental costs. The implications of the data shown above are that ownership costs increased much faster than rents and incomes, but declined as the housing bubble burst in 2008. Table 5-27 underscores this trend for the Eugene-Springfield MSA.22 Between 1990 and 2000, incomes increased about 46% while median owner value increased 115%. Rents increased 44%--about the same as incomes. Since 2000, the data show housing costs have increased faster than incomes. The owner values include all units in the MSA; the sales data presented earlier in this section suggest that owner costs have increased much faster than the Census data suggest. Finally, the results show that the median owner value was 2.6 times median household income—a figure that increased to 4.7 by 2005. Table 5-27. Comparison of income, housing value, and gross rent, Eugene-Springfield MSA, 1990, 2000, and 2005 Source: U.S. Census of Population and Housing, 1990 and 2000; American Community Survey, 2005 In summary, the data indicate that homeownership is increasingly expensive in Springfield and that the cost of homeownership is prohibitive for low- and 22 2005 data from the American Community Survey is not available for Springfield. Indicator 1990 2000 2005 1990-2000 2000-2005 Median HH Income $25,268 $36,942 $37,290 46% 1% Median Family Income $30,763 $45,111 $49,555 47% 10% Median Owner Value $65,600 $141,000 $173,600 115% 23% Median Gross Rent $418 $604 $683 44% 13% Percent of Units Owned 61% 62% 63% Housing Value/Income Median HH Income 2.6 3.8 4.7 Median Family Income 2.1 3.1 3.5 Change Page 58 ECONorthwest August 2009 DRAFT: Springfield Housing Needs Analysis moderate-income households. The data indicate that homeownership rates in the Metropolitan area and Springfield have increased, despite the rapid increase in sales prices. This is probably due in large part to a much broader array of financing options available to households than existed previously. STEP 5: ESTIMATE THE NUMBER OF ADDITIONAL NEEDED UNITS BY STRUCTURE TYPE AND TENURE23 Step five of the housing needs assessment results in an estimate of need for housing by income and housing type. This requires some estimate of the income distribution of future households in the community. ECO developed these estimates based on (1) secondary data from the Census, and (2) analysis by ECONorthwest. The next step in the analysis is to relate income levels to tenure and structure type. Table 4-3 showed tenure by structure type from the 2000 Census. Table 5- 28 shows an estimate of needed housing by structure type and tenure for the 2010- 2030 planning period. The housing needs analysis suggests that a higher percentage of multifamily units will be needed, thus, the housing mix changes from approximately 63% single-family/37% multifamily during the 1999-July 2008 period to 60% single-family/40% multifamily.24 The housing needs analysis also suggests the City will see a higher rate of homeownership in the future. Thus, the tenure split is increased from 54% owner-occupied/46% renter occupied to 57% owner-occupied/43% renter occupied. Table 5-28. Estimate of needed dwelling units by type and tenure, Springfield, 2010-2030 23 Note: Manufactured dwellings are a permitted use in all residential zones that allow 10 or fewer dwellings per net buildable acre. As a result, Springfield is not required to estimate the need for manufactured dwellings on individual lots per OAR 660-024-0040 (7) (c). 24 Single-family attached dwellings typically achieve densities closer to multifamily housing types. If these higher density housing types are included with multifamily, the housing mix is 53% lower density, and 47% higher density types. Housing Type New DU Percent New DU Percent New DU Percent Needed Units, 2010-2030 Single-family types Single-family detached 2,756 81% 353 14% 3,109 52% Manufactured in Parks 54 2% 6 0% 60 1% Single-family attached 343 10% 75 3% 419 7% Subtotal 3,153 92% 435 17% 3,587 60% Multi-family Multifamily 256 8% 2,136 83% 2,392 40% Subtotal 256 8% 2,136 83% 2,392 40% Total 3,409 100% 2,571 100% 5,980 100% TotalRenter-OccupiedOwner-Occupied DRAFT: Springfield Housing Needs Analysis ECONorthwest August 2009 Page 59 The analysis (Table 5-28) indicated that Springfield needs 5,980 new dwelling units for the 2010-2030 period. The next step in estimating units by structure type is to evaluate income as it relates to housing affordability. Table 5-29 shows an estimate of needed dwelling units by income level for the 2010-2030 period. The analysis uses market segments consistent with HUD income level categories. The analysis shows that about 49% of households in Springfield could be considered high or upper-middle income in 2007 and that about 49% of the housing need in the 2010-2030 period will derive from households in these categories. Table 5-29. Estimate of needed dwelling units by income level, Springfield, 2010-2030 Source: ECONorthwest STEP 6: DETERMINE THE NEEDED DENSITY RANGE FOR EACH PLAN DESIGNATION AND THE AVERAGE NEEDED NET DENSITY FOR ALL DESIGNATIONS This section summarizes the forecast of needed housing units in Springfield for the period 2010-2030. Table 5-30 shows the forecast of needed housing units in Springfield for the period 2010-2030. Springfield makes the following findings in support of the density assumptions used in Table 5-30: • Springfield had an average residential density of 6.6 dwelling units per net acre or about 6,600 square feet of land per dwelling unit between 1999 and 2008 (Table 4-5). Average single-family detached density was 5.4 units per net acre. Manufactured homes averaged 4.6 dwelling units per net Market Segment by Income Income range Number of Households Percent of Households Owner- occupied Renter- occupied High (120% or more of MFI) $68,640 or more 1,822 30% All housing types; higher prices All housing types; higher prices Upper Middle (80%- 120% of MFI) $45,760 to $68,640 1,141 19% All housing types; lower values All housing types; lower values Primarily New Housing Lower Middle (50%- 80% of MFI $28,600 to $45,760 1,296 22% Manufactured on lots; single- family attached; duplexes Single-family attached; detached; manufactured on lots; apartments Primarily Used Housing Low (30%-50% or less of MFI) $17,160 to $28,600 756 13% Manufactured in parks Apartments; manufactured in parks; duplexes Very Low (Less than 30% of MFI) Less than $17,160 965 16% None Apartments; new and used government assisted housing Financially Attainable Products Page 60 ECONorthwest August 2009 DRAFT: Springfield Housing Needs Analysis acre, while all multifamily housing types averaged 11.1 dwelling units per net acre. • National homeownership rates increased to nearly 70% in 2006 before declining as the housing bubble burst. The homeownership rate in Springfield in 2000 was considerably lower at 54%. It is the policy of the City to provide homeownership opportunities to Springfield residents. • National trends are towards larger units (both single-family and multifamily) on smaller lots. • More than 28% of dwelling units in Springfield in 2000 were multifamily types. • The “needed” density for single-family dwellings in the housing needs analysis is 5.5 dwelling units per net acre. This assumption is a slight increase over the historical density of 5.4 dwellings per net acre for single- family detached units. Increasing the average density of single-family detached dwellings should result in the provision of more affordable single-family detached units as a result of decreased lot sizes. • Topography, lot configurations, and other factors typically reduce land use efficiency. The achieved density may be lower for single-family detached dwellings in areas with slopes. • The City assumes an average multifamily density of 18.0 dwellings per net acre or a land area of about 2,420 square feet per dwelling unit. This assumption is an increase of about 62% over historical density of 11.1 dwellings per net acre for all multifamily types. • The City assumes an average density for all housing types of 7.9 dwelling units per net acre. This is an increase of about 20% over the historical density of 6.6 dwelling units per net acre. In summary, the City assumes that average densities will increase significantly (by about 20% over average historical densities) during the planning period, that ownership rates will increase, and that an increasing percentage of households will choose single-family attached housing types. These assumptions are consistent with the housing needs analysis presented in this chapter. These findings support the City’s overall density assumption of 7.9 dwelling unit per net acre. The forecast indicates that Springfield will need about 752 net residential acres, or about 927 gross residential acres to accommodate new housing between 2010 and 2030. The forecast results in an average residential density of 7.9 dwelling units per net residential acre and of 6.3 dwelling units per gross residential acre. This represents a 20% increase in density over the historical average of 6.6 dwelling units per net acre. DRAFT: Springfield Housing Needs Analysis ECONorthwest August 2009 Page 61 Table 5-30. Forecast of new dwelling units and land needed by type, Springfield 2010-2030 Source: ECONorthwest Table 5-31 provides an allocation of housing units by Springfield’s three residential plan designations. Dwelling units were allocated to plan designations based, in part, on historic development trends within each plan designation and on the type of development allowed in each plan destination. Table 5-31 also provides an estimate of the gross acres required in each designation to accommodate needed housing units for the 2010-2030 period. The acreages are based on the gross density assumptions shown in Table 5-30. The residential land needs presented in Table 5-31 may change based on policy decisions related to land use efficiency measures, which may result in increased or decreased land need. Based on the housing needs analysis, dwellings have been allocated by plan designation and type: • The overall needed housing mix is 60% single-family (including manufactured and single-family attached units) and 40% multifamily. • The density assumptions increase by plan designations as shown in Table 5-30. • Fifty-eight percent of needed dwelling units will locate in the Low Density residential designation, which allows single-family detached and manufactured homes. This designation also allows duplex, single-family attached, and some multifamily dwellings in conjunction with discretionary review. • Thirty percent of needed dwellings will locate in the Medium Density residential designation, which allows single-family detached, single- family attached, manufactured home parks, townhomes, duplexes, and multifamily dwellings. • Twelve percent of needed dwelling units will locate in High Density or Mixed-Use residential designations, which allow single-family detached, Housing Type New DU Percent Density (DU/net res ac) Net Res. Acres Net to Gross Factor Gross Res. Acres Density (DU/gross res ac) Needed Units, 2010-2030 Single-family types Single-family detached 3,109 52% 5.5 565 20% 707 4.4 Manufactured in parks 60 1% 8.0 7 18% 9 6.6 Single-family attached 419 7% 9.0 47 15% 55 7.7 Subtotal 3,588 60% 5.8 619 770 4.7 Multi-family Multifamily 2,392 40% 18.0 133 15% 156 15.3 Subtotal 2,392 40% 18.0 133 156 15.3 Total 5,980 100% 7.9 752 927 6.5 Page 62 ECONorthwest August 2009 DRAFT: Springfield Housing Needs Analysis townhomes, manufactured (single detached and manufactured home parks), duplexes, and multifamily. • Manufactured units in parks will locate in the Low-Density plan designation. Table 5-31. Allocation of needed housing units by plan designation, Springfield 2010-2030 Source: ECONorthwest In addition to the housing types shown in Table 5-31, Springfield needs to plan for additional group quarters. The analysis assumes the City will add 145 persons in group quarters between 2010 and 2012.The City will need to add a similar number of group quarter units during this period. Assuming that group quarters achieve densities comparable to multifamily units, the City will need approximately nine gross residential acres for these units (145 divided by 15.3 units per gross acre). The majority of these units will probably be residential care facilities which are permitted as a discretionary use in the Low Density residential designation and a special use in the Medium- and High-Density designations. Housing Type DU Gross Ac DU Gross Ac DU Gross Ac DU Gross Ac Single-family Single-family detached 3,229 734 0 - 0 - 3,229 734 Manufactured in parks 60 9 0 - 0 - 60 9 Single-family attached 179 23 299 39 0 - 478 63 Subtotal 3,468 766 299 39 0 - 3,767 806 Multi-family Multi-family 0 - 1,495 109 718 36 2,213 145 Subtotal 0- 1,495 109 718 36 2,213 145 Total 3,468 766 1,794 148 718 36 5,980 950 Percent of Acres and Units Single-family Single-family detached 54% 77% 0% 0% 0% 0% 54% 77% Manufactured in parks 1% 1% 0% 0% 0% 0% 1% 1% Single-family attached 3% 2% 5% 4% 0% 0% 8% 7% Subtotal 58% 81% 5% 4% 0% 0% 63% 85% Multi-family Multi-family 0% 0% 25% 11% 12% 4% 37% 15% Subtotal 0% 0% 25% 11% 12% 4% 37% 15% Total 58% 81% 30% 16% 12% 4% 100% 100% Plan Designation TotalLow Density Medium Density High Density/ Mixed-Use DRAFT: Springfield Housing Needs Analysis ECONorthwest August 2009 Page 63 Comparison of Chapter 6 Supply and Demand This chapter summarizes from data and analysis presented in Chapters 2 through 5 to compare “demonstrated need” for vacant buildable land with the supply of such land currently within the Springfield UGB and city limits. Chapter 2 described the policy framework, Chapter 3 described land supply, Chapter 4 described historical development patterns, and Chapter 5 described residential land needs. The following section estimates land needed for other uses; the chapter concludes with a comparison of land supply and land demand for the 2010-2030 time period. TOTAL RESIDENTIAL LAND NEED, 2010-2030 This section estimates total residential land need for the period between 2010 and 2030. In additional to land needed for new residential units, it estimates land needed for parks, public facilities, and other semi-public uses to arrive at an estimate of total need for land designated for residential purposes. LAND NEEDED FOR NEW RESIDENTIAL DWELLING UNITS Chapter 5 presented estimates of land needed for new residential dwellings (see Tables 5-30 and 5-31). Table 6-1 summarizes land needed for new housing by plan designation for the 2010-2030 period. Note that group quarters is a separate category that can locate in any plan designation. Table 6-1. Land needed for new housing by plan designation, Springfield UGB, 2010-2030 Source: Table 5-31 LAND NEEDED FOR OTHER USES Cities need to provide land for uses other than housing and employment. Public and semi-public facilities such as schools, hospitals, governments, utilities, churches, parks, and other non-profit organizations will expand as population increases. Many communities have specific standards for parks. School districts typically develop population projections to forecast attendance and need for Plan Designation DU Gross Ac Low-Density Residential 3,468 766 Medium-Density Residential 1,794 148 High-Density Residential/Mixed-Use 718 36 Group Quarters 145 9 Total 6,125 959 Page 64 ECONorthwest August 2009 DRAFT: Springfield Housing Needs Analysis additional facilities. All of these uses will potentially require additional land as a city grows. This section considers other uses that consume land and must be included in land demand estimates. Demand for these lands largely occurs independent of market forces. Many can be directly correlated to population growth. For the purpose of estimating land needed for other uses, these lands are classified into three categories: • Lands needed for public operations and facilities. This includes lands for city offices and maintenance facilities, schools, state facilities, substations, and other related public facilities. Land needs are estimated using acres per 1,000 persons for all lands of these types. • Lands needed for parks and open space. The estimates use a parkland standard of 14 acres per 1,000 persons based on the level of service standard established in the Willamalane Park and Recreation Comprehensive Plan, which projected need for parkland in Springfield between 2002 and 2022. • Lands needed for semi-public uses. This includes hospitals, churches, non- profit organizations, and related semi-public uses. The analysis includes land need assumptions using acres per 1,000 persons for all lands of these types. Table 6-2 shows land in public and semi-public uses by type. The data show a total of 1,636 acres in public and semi public uses in the Springfield UGB in 2009. This equates to 24.8 acres per 1,000 persons. Table 6-2. Summary of public and semi-public land need by type, Springfield UGB, 2010-2030 Source: City of Springfield GIS data; analysis by ECONorthwest Table 6-2 shows that there will be an additional need of about 463 acres of land for all new public and semi-public uses or 21.1 acres per 1,000 people between 2010 and 2030. The information in Table 6-1 is based on the following assumptions: Type of Use Acres Acres / 1000 Persons Assumed Need (Ac/1000 Persons) Estimated Acres 2010- 2030 Government 581 8.8 3.0 44 Utilities 134 2.0 2.0 30 Parks 563 8.5 14.0 357 Schools 277 4.2 0.9 14 Church/Charities/Other 81 1.2 1.2 18 Total 1,636 24.7 21.1 463 DRAFT: Springfield Housing Needs Analysis ECONorthwest August 2009 Page 65 • Government land in 2007 includes a 271-acre site that is owned by the Bureau of Land Management (BLM) and the 115-acre Booth-Kelly mixed-use site. Not including these sites, Springfield has 195 acres of government land or 3.0 acres per 1,000 people. The assumed land need for 2010 to 2030 is 3.0 acres per 1,000 people, assuming that the City’s land need will not include more sites like the BLM or Booth- Kelly site. • Park land needs are based on the level-of-service established in Willamalane’s parks plan of 14 acres per 1,000 persons, which will require 207 new acres of parkland. In addition, park land includes need for 150 acres of parkland for need identified in the Park and Recreation Comprehensive Plan and to serve residents that moved to Springfield between 2002 and 2008.25 • School land needs are based on the fact that the Springfield School District will need to add one 14 acre site in the Jasper-Natron area over the planning period. 26 The land need of 0.9 acres per 1,000 persons was based on population growth and the District’s need for one 14 acre site. • Land needs for utilities, recreation, and churches/charities/other are based on maintaining the same ratio of acre to population as currently exists for these land uses. BUILDABLE LAND INVENTORY AND CAPACITY The capacity of residential land is measured in dwelling units and is dependent on densities allowed in specific zones as well as redevelopment potential. In short, land capacity is a function of buildable land and density. The buildable lands inventory indicates that Springfield has about 935 acres of vacant and partially-vacant residential land and an additional 21 acres in the Glenwood mixed-use refinement plan area (these acres were included in the commercial and industrial lands inventory and are included here only for the purpose of estimating residential capacity).27 This yields a total of 956 buildable acres. 25 According to Greg Hyde, the Planning and Development Manager with the Willamalane Park & Recreation District, Springfield has acquired 37 acres of park land between 2002 and 2008. The Park and Recreation Comprehensive Plan identified a deficit of 130 acres to serve population in 2002 (at the 14 acres per 1,000 person level of service). That deficit was reduced to 93 acres with the addition of the 37 acres of parkland. In addition, Springfield’s population grew by 4,095 people between 2002 and 2008, resulting in an additional need for 57 acres of parkland. Together, Springfield has a need for 150 acres of parkland to serve the City’s population in 2008 at the 14 acres per 1,000 person level of service. 26 According to Jeff DeFranco, the Springfield Public Schools Director of Communications and Facilities, the school district has one 14- acre site that will be sold (the Rainbow (Chase) Property). The City owns a 65-acre site in East Springfield has no services. The District owns a 15-acre site in the Clear Water area that is outside of the UGB, which will be developed when there is more residential development in the area. 27 Capacity in the Glenwood mixed-use area was calculated as follows: 21 buildable acres (45% of the 47-acre site; the policy requires 30% to 60% of the site be used for housing) multiplied by 15 dwelling units per gross acre equals 317 dwelling units, minus 47 dwelling units that would be displaced from the River Bank Mobile Home Park equals 270 dwelling units. Page 66 ECONorthwest August 2009 DRAFT: Springfield Housing Needs Analysis Table 6-3 provides an estimate of how much housing could be accommodated by those lands based on the needed densities identified in Table 5-30 after making deductions for development constraints. It includes capacity for areas with approved master plans that were not included in the acreage estimates. This includes Marcola Meadows (518 dwellings in the MDR designation) and RiverBend (730 dwellings in the MDR designation). Total residential capacity includes capacity for redevelopment, which is assumed as 5% of needed new dwellings, or 299 dwellings. The basis for this assumption is presented in Chapter 4. Table 6-3 shows that Springfield has capacity for 6,920 dwelling units within the existing UGB. Table 6-3. Estimated residential development capacity, Springfield UGB, 2009 Source: City of Springfield residential BLI; analysis by ECONorthwest Note: Estimated residential development capacity includes sites with approved master plans (RiverBend – 730 DU and Marcola Meadows – 518 DU. All of this capacity is in the Medium Density Residential plan designation). COMPARISON AND CONCLUSIONS Table 6-4 shows the capacity for residential development by plan designation. It also shows an estimate of lands needed for other uses (e.g., parks, schools, churches, etc.). ECO estimates Springfield will need 463 acres for other uses during the 2010-2030 period. The results lead to the following findings: • Springfield has a need for additional residential land. The Springfield UGB has enough land for 6,920 new dwelling units. The housing needs forecast projects a need for 5,980 dwelling units and 145 group quarter dwellings. • The Low Density Residential designation has a deficit of approximately 293 gross acres. • The Medium Density Residential designation has a deficit of approximately 15 gross acres. • The High Density Residential designation has a deficit of approximately 35 gross acres. Plan Designation Buildable Acres Residential Capacity (DU) Percent of Capacity Low Density Residential 824 3,714 54% Medium Density Residential 95 2,312 33% High Density Residential 16 325 5% Mixed-Use (Glenwood) 21 270 4% Redevelopment na 299 4% Total 956 6,920 100% DRAFT: Springfield Housing Needs Analysis ECONorthwest August 2009 Page 67 • The total residential land deficit is 344 gross acres. Table 6-4. Residential capacity for needed dwelling units by plan designation, Springfield UGB, 2010-2030 Source: ECONorthwest Column Notes: 1. Plan designations 2. Needed dwellings by plan designation (table 5-30) 3. Capacity by plan designation (table 6-2); Note: MDR capacity includes capacity in master planned areas (Glenwood, Marcola Meadows, Riverbend); MDR and HDR includes capacity for redevelopment. 4. Capacity (column 3) minus Need (column 2); Note: a positive number denotes enough capacity within the existing UGB 5. Needed Gross Density (from bottom of page 5) 6. Total additional land needed (if a deficit exists). Equals -column 4 divided by column 5 7, Surplus/deficit gross acres (negatives mean a UGB expansion). Equals Column 4 divided by Column 5 8. Other residential land need (land needed for parks, etc) 9. Total surplus/deficit. Equals column 7 minus column 8. Note: Total Surplus/Deficit (column 9) adds to 344 acres due to rounding errors. 123456789 Plan Designation Need (DU) Capacity (DU) Surplus/ Deficit (DU) Needed Density (DU/GRA) Housing Land Need (Gross Acres) Housing Surplus/ Deficit (Gross Ac) Other Residential Land Need Total Surplus/ Deficit (Gross Ac) Low Density Residential 3,468 3,714 246 5 -54 54 347 -293 Medium Density Residential 1,794 2,731 937 12 0 77 93 -15 High Density Residential 718 475 -243 20 12 -12 23 -35 Total 5,980 6,920 939 0 -42 119 463 -344 Page 68 ECONorthwest August 2009 DRAFT: Springfield Housing Needs Analysis Context for Assessing Appendix A Housing Needs WHAT IS AFFORDABLE HOUSING? The terms “affordable” and “low-income” housing are often used interchangeably. These terms, however, have different meanings: • Affordable housing refers to households’ ability to find housing within their financial means. Households that spend more than 30% of their income on housing and certain utilities are considered to experience cost burden.28 As such, any household that pays more than 30% experiences cost burden and does not have affordable housing. Thus, affordable housing applies to all households in the community. • Low-income housing refers to housing for “low-income” households. HUD considers a household low-income if it earns 80% or less of median family income. In short, low-income housing is targeted at households that earn 80% or less of median family income. These definitions mean that any household can experience cost burden and that affordable housing applies to all households in an area. Low-income housing targets low-income households. In other words, a community can have a housing affordability problem that does not include only low-income households. It is important to underscore the point that many households that experience cost burden have jobs and are otherwise productive members of society. A household earning 80% of median family income in Springfield earns about $39,000 annually—or about $18.50 per hour for a full-time employee. The maximum affordable purchase price for a household earning $39,000 annually is about $120,000. Depending on household size, many of these households are eligible for government housing assistance programs. In summary, any household can face housing affordability problems. Because they have more limited financial means, the incidence of cost burden is higher among low-income households. Statewide planning Goal 10 requires cities to adopt policies that encourage housing at price ranges commensurate with incomes. In short, state land use policy does not distinguish between households of different income levels and requires cities to adopt policies that encourage housing for all households. 28 Cost burden is a concept used by HUD. Utilities included with housing cost include electricity, gas, and water, but do not include telephone expenses. DRAFT: Springfield Housing Needs Analysis ECONorthwest August 2009 Page 69 WHAT OBJECTIVES DO HOUSING POLICIES TYPICALLY TRY TO ACHIEVE? The Practice of State and Local Planning29 classifies goals that most government housing programs address into four categories: • Community life. From a community perspective, housing policy is intended to provide and maintain safe, sanitary, and satisfactory housing with efficiently and economically organized community facilities to service it. In other words, housing should be coordinated with other community and public services. Although local policies do not always articulate this, they are implicit in most local government operations. Comprehensive plans, zoning, subdivision ordinances, building codes, and capital improvement programs are techniques most cities use to manage housing and its development. Local public facilities such as schools, fire and police stations, parks, and roads are usually designed and coordinated to meet demands created by housing development. • Social and equity concerns. The key objective of social goals is to reduce or eliminate housing inadequacies affecting the poor, those unable to find suitable housing, and those discriminated against. In other words, communities have an obligation to provide safe, satisfactory housing opportunities to all households, at costs they can afford, without regard to income, race, religion, national origin, family structure, or disability. • Design and environmental quality. The location and design of housing affect the natural environment, residents’ quality of life, and the nature of community life. The objectives of policies that address design and environmental quality include neighborhood and housing designs that meet: household needs, maintain quality of life, provide efficient use of land and resources, reduce environmental impacts, and allow for the establishment of social and civic life and institutions. Most communities address these issues through local building codes, comprehensive land use plans, and development codes. • Stability of production. Housing is a factor in every community’s economy. The cyclical nature of housing markets, however, creates uncertainties for investment, labor, and builders. The International City Manager’s Association suggests that local government policies should address this issue—most do not. Moreover, external factors (e.g. interest rates, cost of building materials, etc.) that bear upon local housing markets tend to undermine the effectiveness of such policies. Despite the various federal and state policies regulating housing, most housing in the U.S. is produced by private industry and is privately owned. While the land 29 The Practice of Local Government Planning, 2nd Edition, International City Managers Association, 1988. Page 70 ECONorthwest August 2009 DRAFT: Springfield Housing Needs Analysis use powers of local government have been an important factor in the production of housing, the role of local government has largely focused on regulation for public health and safety and provision of infrastructure. More recently, awareness has grown regarding the impact policies and regulations have had on the other aspects of community life such as costs of transportation and other infrastructure, access of residents to services and employment, and social interactions. DEMAND VERSUS NEED The language of Goal 10 and ORS 197.296 refers to housing need: it requires communities to provide needed housing types for households at all income levels. Goal 10's broad definition of need covers all households—from those with no home to those with second homes. State policy, however, does not make a clear distinction between need and demand. Following is our definition, which we believe to be consistent with definitions in state policy: • Housing need can be defined broadly or narrowly. The broad definition is based on the mandate of Goal 10 that requires communities’ plan for housing that meets the needs of households at all income levels. Thus, Goal 10 implies that everyone has a housing need because everyone needs housing. However, definition used by public agencies that provide housing assistance (primarily the Department of Housing and Urban Development – HUD, and the Oregon Housing and Community Services Department - HCS) is more narrow. It does not include most of the households that can purchase or rent housing consistent with the requirements of their household size for a price that is affordable. Households that cannot find and afford such housing have need: they are either unhoused, in housing of substandard condition, overcrowded, or paying more than their income and federal standards say they can afford. • Housing market demand is what households demonstrate they are willing to purchase in the market place. Growth in population leads to a growth in households and implies an increase in demand for housing units that is usually met primarily by the construction of new housing units by the private sector based on developers' best judgments about the types of housing that will be absorbed by the market. ORS 197.296 includes a market demand component: buildable land needs analyses must consider the density and mix of housing developed over the previous five years or since their most recent periodic review, whichever is greater. In short, a housing needs analysis should make a distinction between housing that people might need (housing needs) and what the market will produce (housing market demand). Figure A-1 shows a schematic that distinguishes between housing needs that are unmet and those that are met via market transactions. All housing need is the total number of housing units required to shelter the population. In that sense, it is approximately the number of households: every household needs a dwelling place. But some of that need is met through market transactions without much DRAFT: Springfield Housing Needs Analysis ECONorthwest August 2009 Page 71 government intervention because households have the income to demand (purchase) housing services (as owners or renters). That demand is shown in the box on the right. Other households, however, have needs unmet, usually because they lack the resources to purchase housing services (financial need), but because of special needs as well (though, even here, the issue is still one of financial resources). Figure A-1. Relationship between housing need and housing demand Most housing market analyses and housing elements of comprehensive plans in Oregon make forecasts of new demand (what housing units will get built in response to market forces). Work by housing authorities is more likely address housing need for special classes, especially low-income. It is the role of cities under Goal 10 to adopt and implement land use policies that will encourage provision of housing units that meet the needs of all residents. It is unlikely that housing markets in any metropolitan area in the US provide housing to meet the needs of every household. Even many upper-income households probably believe they "need" (want) more housing than their wealth and income allows them to afford. Goal 10 does not require communities address the housing “want” of residents. More important, however, are more basic housing needs. At the extreme there is homelessness: some people do not have any shelter at all. Close behind follows substandard housing (with health and safety problems), space problems (the structure is adequate but overcrowded), and economic and social problems (the structure is adequate in quality and size, but a household has to devote so much of its income to housing payments that other aspects of its quality of life suffer). Location can also be a burden—households that live further from work and shopping opportunities will have to spend more money on transportation. Moreover, while some new housing is government-assisted housing, public agencies do not have the financial resources to meet but a small fraction of that need. New housing does not, and is not likely to, fully address all these needs because housing developers, like any other business, typically try to maximize their profits. All HousingAll Housing Demand for New Housing (housing market) Demand for New Housing (housing market)Housing NeedHousing Need Financial NeedFinancial Need Special NeedSpecial Need Page 72 ECONorthwest August 2009 DRAFT: Springfield Housing Needs Analysis In fact, many of those needs are much more likely to be satisfied by existing housing: the older, used stock of structures that is usually less expensive per square foot than new housing. Thus, forecasting the type of new units that might be built in a region (by type, size, and price) is unlikely to bear any relationship to the type of housing to which most people with acute housing needs will turn to solve their housing problems. One key reason for this is the dynamics associated with housing construction. The cost of building new housing is largely prohibitive for building dwelling units affordable to low-income households. This “trickle- down” effect is well known among housing specialists. In most communities a quick comparison of new home prices with income distributions will underscore the fact that developers tend to focus on the move-up market and not on entry- level housing. Viewed in the light of those definitions (e.g., housing demand and housing need), the requirements of Goal 10 need clarification. Goal 10 mandates that communities plan for housing that meets the needs of households at all income levels. Thus, Goal 10 implies that everyone has a housing need. As we have noted, however, it is hard to justify spending public resources on the needs of high-income households: they have the income to purchase (demand) adequate housing services in the housing market. The housing they can afford may not be everything they want, but most policymakers would agree that the difference does not classify as the same kind of need that burdens very-low-income households. This study is not the place to resolve debates about definitions of housing need and the purposes of Goal 10. Here are our assumptions about the distinction between demand and need in the rest of this study: • Our analysis of need addresses the Goal 10 requirements regarding financial need (ability to obtain housing) as they relate to future households and to those households whose circumstances suggest that they will have special problems in finding adequate and affordable housing services. That analysis occurs after, and largely independent of, the forecast of new housing that is likely to be built to supply effective demand. • Our forecast includes a comparison of demand for new housing: what kind of housing of what type is likely to get built in the region over the next 20 years. The baseline forecast is the housing “demand” forecast, the alternative forecast is the housing “need” forecast. In summary, Goal 10 intends that cities identify housing need and develop a land use policy framework that meets identified needs. One of the key issues that gets addressed in a housing needs analysis is to determine how much land is needed for different housing types, and therefore must be designated for different housing types. Providing sufficient land in the proper designations is one of the most fundamental land use tools local governments have to meet housing need. DRAFT: Springfield Housing Needs Analysis ECONorthwest August 2009 Page 73 Page 74 ECONorthwest August 2009 DRAFT: Springfield Housing Needs Analysis Appendix B National Housing Trends The overview of national, state, and local housing trends builds from previous work by ECO and conclusions from The State of the Nation’s Housing, 2008 report from the Joint Center for Housing Studies of Harvard University. The Harvard report summarizes the national housing outlook for the next decade as follows: “Housing markets contracted for a second straight year in 2007. The national median single-family home price fell in nominal terms for the first time in 40 years of recordkeeping, leaving several million homeowners with properties worth less than their mortgages. With the economy softening and many home loans resetting to higher rates, an increasing number of owners had difficulty keeping current on their payments. Mortgage performance—especially on subprime loans with adjustable rates—eroded badly. Lenders responded by tightening underwriting standards and demanding a higher risk premium, accelerating the ongoing slide in sales and starts. “It is still uncertain how far, and for how long, the housing crisis will drive down household growth. Regardless, given the solid underpinnings of long-term demand—including the recent strength of immigration and the aging of the echo-boom generation into young adulthood—household growth will pick up again once the economy recovers. But if the nation suffers a prolonged economic downturn that results in lower immigration and more doubling up, household growth in 2010-2020 may fall short of the 14.4 million level currently projected. This evaluation presents a bleak outlook for housing markets and for homeownership in the short-term brought on by the subprime mortgage crisis. However, the image painted of the future looks brighter, as the increase in housing demand is naturally induced by the growth of the population in the necessary age groups. Long run trends in home ownership and demand Last year (2007) was a continuation of the significant departure from the recent housing boom that had lasted for 13 consecutive years (1992-2005). While strength in early 2005 pushed most national housing indicators into record territory, the market began to soften and sales slowed in many areas in the latter half of 2005. By 2006, higher prices and rising interest rates had a negative impact on market demand. Investor demand, home sales and single-family starts dropped sharply. Growth in national sales prices also slowed. By 2007 and early 2008, housing market problems had reached the rest of the economy, resulting in a nationwide economic slowdown and fear of recession. After 12 successive years of increases, the national homeownership rate slipped in 2005, again in 2006 to 68.8%, and again in 2007 to 68.1%. DRAFT: Springfield Housing Needs Analysis ECONorthwest August 2009 Page 75 The Joint Center for Housing Studies concludes that the cooling housing market in 2006 had an immediate impact on homeownership. Increasing interest rates and decreasing housing affordability contributed to the recent market correction. Homebuilders could not react quickly enough to changing market conditions, resulting in an oversupply of housing and a rising inventory of unsold homes. The Joint Center for Housing Studies predicts that once the corrections made to work off the housing oversupply and prices start to recover, a return to traditional mortgage products and the strength of natural demand will invigorate the homeownership rate. The long-term market outlook shows that homeownership is still the preferred tenure. Over the next decade, 88% of net household growth is expected to come from gains in the number of homeowners. While further homeownership gains are likely during this decade, they are not assured. Additional increases depend, in part, on finding ways to ease the difficulties faced by low and moderate income households in purchasing a home. It also rests on whether the conditions that have led to homeownership growth can be sustained. From 2000 to 2005 housing starts and manufactured home placements appeared to have been roughly in line with household demand. In 2005, with demand for homes falling but construction coming off record levels, the surplus of both new and existing homes was much higher than in recent years. In late 2007 and early 2008, the excess supply of new single-family homes retreated by about 12%, though the simultaneous drop in sales left the supply at 11 months, a figure not seen since the 1970s. This resulted in a strong buyer’s market, leaving many homes lingering on the market and forcing many sellers to accept prices lower than what they were expecting. The Joint Center for Housing Studies predicts the oversupply will eventually balance as housing starts continue to fall, lower prices motivate unforeseen buyers, and the rest of the economy begins to recover. The Joint Center for Housing Studies indicates that demand for new homes could total as many as 14.4 million units nationally between 2010 and 2020. Nationally, the vast majority of these homes will be built in lower-density areas where cheaper land is in greater supply. People and jobs have been moving away from central business districts (CBDs) for more than a century: the number of the country’s largest metropolitan areas with more than half of their households living at least 10 miles from the CBD has more than tripled from 13 in 1970 to 46 in 2000; in six metropolitan areas more than a fifth of households live at least 30 miles out. While people older than 45 years are generally continuing to move away from CBDs, younger people have begun to move nearer to CBDs. The Joint Center for Housing Studies also indicates that demand for higher density housing types exists among certain demographics. They conclude that because of persistent income disparities, as well as the movement of the echo boomers into young adulthood, housing demand may shift away from single- family detached homes toward more affordable multifamily apartments, town homes, and manufactured homes. Supply-side considerations, however, outweigh these demographic forces. Page 76 ECONorthwest August 2009 DRAFT: Springfield Housing Needs Analysis Recent trends in home ownership and demand Conditions that had previously bolstered the housing market and promoted homeownership weakened in 2005 and eroded further in 2006 and 2007. Increasing interest rates and weakening housing prices combined to slow the housing market. In 2007, new home sales were down 40% from the record 2005 level, and existing home sales were down 20%. Regionally, using housing permits issued as a proxy for new home ownership, Lane County’s issued housing permits fell between 25% and 50% between 2005 and 2007. Figure B-1. Change in housing permits issued by county, U.S., 2005-2007 Source: Census Bureau, Construction Statistics, Building Permits by County. As cited in The State of The Nation’s Housing, 2008, The Joint Center for Housing Studies of Harvard University, p. 8 DRAFT: Springfield Housing Needs Analysis ECONorthwest August 2009 Page 77 Figure B-2. Change in housing permits issued by county, Oregon, 2005-2007 Source: Census Bureau, Construction Statistics, Building Permits by County. As cited in The State of The Nation’s Housing, 2008, The Joint Center for Housing Studies of Harvard University, p. 8 Demographic trends in home ownership According to the Joint Center for Housing Studies, immigration will play a key role in accelerating household growth over the next 10 years. Between 2000 and 2006, immigrants contributed to over 60% of household growth. Minorities will account for 68% of the 14.6 million projected growth in households for the 2005 to 2015 period. Immigrants now comprise a growing share of young adults and children in the United States. Twenty percent of Americans ages 25-34 are foreign born, and an additional 9% are second generation Americans. Members of this generation will probably earn more than their parents becoming an even greater source of housing demand in the coming decades. The Joint Center for Housing Studies suggests that an aging population, and of baby boomers in particular, will drive changes in the age distribution of households in all age groups over 55 years. A recent survey of baby boomers showed that more than a quarter plan to relocate into larger homes and 5% plan to move to smaller homes. Second home demand among upper-income homebuyers of all ages also continues to grow. Households aged 50 to 69 are expected to account for the purchase of nearly half a million second homes between 2005 and 2015. Page 78 ECONorthwest August 2009 DRAFT: Springfield Housing Needs Analysis People prefer to remain in their community as they age.30 The challenges that seniors face as they age in continuing to live in their community include: changes in healthcare needs, loss of mobility, the difficulty of home maintenance, financial concerns, and increases in property taxes.31 Not all of these issues can be addressed through housing or land-use policies. Communities can address some of these issues through adopting policies that: • Diversify housing stock to allow development of smaller, comparatively easily maintained houses in single-family zones, such as single story townhouses, condominiums, and apartments. • Allow commercial uses in residential zones, such as neighborhood markets. • Allow a mixture of housing densities and structure types in single- family zones, such as single-family detached, single-family attached, condominiums, and apartments. • Promote the development of group housing for seniors that are unable or choose not to continue living in a private house. These facilities could include retirement communities for active seniors, assisted living facilities, or nursing homes. • Design public facilities so that they can be used by seniors with limited mobility. For example, design and maintain sidewalks so that they can be used by people in wheel chairs or using walkers. Home rental trends Nationally, the rental market continues to experience growth, adding 2 million rental households from 2004 to 2007. Demand strengthened in every region except the Northeast. Vacancy rates in the West continue to decline, leading to strong increases in rental rates. Over the longer term, the Joint Center for Housing studies expects rental housing demand to grow by 1.8 million households over the next decade. Minorities will be responsible for nearly all of this increased demand. The minority share of renter households grew from 37% in 1995 to 43% in 2005. The minority share is forecast to exceed 50% of renter households in 2015. Demographics will also play a role. Growth in young adult households will increase demand for moderately priced rentals, in part because echo boomers will reach their mid-20s after 2010. Meanwhile growth among those between the ages of 45 and 64 will lift demand for higher-end rentals. Given current trends in home prices and interest rates, conditions will become increasingly favorable for rental markets in the coming years. 30 A survey conducted by the AARP indicates that 90% of people 50 years and older want to stay in their current home and community as they age. See http://www.aarp.org/research. 31 “Aging in Place: A toolkit for Local Governments” by M. Scott Ball. DRAFT: Springfield Housing Needs Analysis ECONorthwest August 2009 Page 79 Despite only modest increases in rents in recent years, growing shares of low- and moderate-wage workers, as well as seniors with fixed incomes, can no longer afford to rent even a modest two-bedroom apartment anywhere in the country. In 2006, one in three American households spent more than 30% of income on housing, and more than one in seven spent upwards of 50%. The national trend towards increased rent to income ratios is mirrored regionally in that a salary of two to three times the 2007 Federal minimum wage of $5.85 is needed to afford rents in Lane County (see Figure B-3). According to the Joint Center for Housing Studies, these statistics understate the true magnitude of the affordability problem because they do not capture the tradeoffs people make to hold down their housing costs. For example, these figures exclude the 2.5 million households that live in crowded or structurally inadequate housing units. They also exclude the growing number of households that move to locations distant from work where they can afford to pay for housing, but must spend more for transportation to work. Among households in the lowest expenditure quartile, those living in affordable housing spend an average of $100 more on transportation per month than those who are severely housing cost-burdened. With total average monthly outlays of only $1,000, these extra travel costs amount to 10 percent of the entire household budget. Figure B-3. Hourly wages needed to afford rent by county, U.S., 2008 Source: HUD's Fair Market Rents for 2008, based on methodology developed by the National Low Income Housing Coalition. As cited in The State of The Nation’s Housing, 2008, The Joint Center for Housing Studies of Harvard University, p. 30 Note: Every county in Oregon had a housing wage between $11.70 and $17.54 in 2008. Page 80 ECONorthwest August 2009 DRAFT: Springfield Housing Needs Analysis Trends in housing affordability Despite widespread falling house prices, affordability problems have not improved significantly. A median-priced single-family home under conventional terms in 2007 (10% downpayment and 30-year fixed rate loan) only costs $76 per month and $1,000 downpayment less than a house bought in 2006, the year in which the sales prices of single-family homes were at their highest real price in history. Only 17 of the 138 National Association of Realtors-covered metropolitan areas have lower costs in 2007 than they did in 2003 when interest rates were bottomed out. With low-wage jobs increasing and wages for those jobs stagnating, affordability problems will persist even as strong fundamentals lift the trajectory of residential investment. The number of severely cost-burdened households (spending more than 50% of income on housing) increased by almost 4 million households from 2001 to 2006, to a total of nearly 18 million households in 2005. Nearly 40% of low-income households with one or more full-time workers are severely cost burdened, and nearly 60% of low-income households with one part- time worker are severely cost burdened. The Joint Center for Housing Studies points to widening income disparities and decreasing federal assistance as two factors exacerbating the lack of affordable housing. While the Harvard report presents a relatively optimistic long-run outlook for housing markets and for homeownership, it points to the significant difficulties low- and moderate-income households face in finding affordable housing, and preserving the affordable units that do exist. Trends in Housing Characteristics The U.S Bureau of Census Characteristics of New Housing Report presents data that show trends in the characteristics of new housing for the nation, state, and local areas. Several trends in the characteristics of housing are evident from the New Housing Report: • Larger single-family units on smaller lots. Between 1997 and 2007 the median size of new single-family dwellings increased 15%, from 1,975 sq. ft. to 2,277 sq. ft. nationally and 18% in the western region from 1,930 sq. ft. to 2,286 sq. ft. Moreover, the percentage of units under 1,200 sq. ft. nationally decreased from 8% in 1997 to 4% in 2007. The percentage of units greater than 3,000 sq. ft. increased from 15% in 1997 to 26% of new one-family homes completed in 2007. In addition to larger homes, a move towards smaller lot sizes is seen nationally. Between 1994 and 2007 the percentage of lots under 7,000 sq. ft. increased by 13% from 29% of lots to 33% of lots. A corresponding 4% decrease in lots over 11,000 sq. ft. is seen. • Larger multifamily units. Between 1999 and 2007, the median size of new multiple family dwelling units increased by 15%. The percentage of multifamily units with more than 1,200 sq. ft. increased from 26% to 47% in the western region and from 28% to 50% nationally. The DRAFT: Springfield Housing Needs Analysis ECONorthwest August 2009 Page 81 percentage of units with less than 600 sq. ft. stayed at 1% both regionally and nationally. • More household amenities. Between 1994 and 2007 the percentage of single-family units built with amenities such as central air conditioning, fireplaces, 2 or more car garages, or 2 or more baths all increased. The same trend in increased amenities is seen in multiple family units. A clear linkage exists between demographic characteristics and housing choice. This is more typically referred to as the linkage between life-cycle and housing choice and is documented in detail in several publications. Analysis of data from the Public Use Microsample (PUMS) in the 2000 Census to describe the relationship between selected demographic characteristics and housing choice. Key relationships identified through this data include: • Homeownership rates increase as income increases; • Homeownership rates increase as age increases; • Choice of single-family detached housing types increases as income increases; • Renters are much more likely to choose multiple family housing types than single-family; and • Income is a stronger determinate of tenure and housing type choice for all age categories. Attachment 2-1 ISSUE: STATE MANDATE TO DETERMINE HOUSING NEEDS In response to House Bill 3337— an action of the 2007 Oregon Legislature1—the City has completed a Residential Lands Study (RLS) to evaluate the sufficiency of buildable land available for residential uses. To make this determination, the draft Springfield Residential Land and Housing Needs Analysis presents a housing needs analysis consistent with requirements of HB 3337, Goal 14, ORS 197.296, and OAR 660-008. The study presents 1) a forecast of Springfield’s residential growth based on the adopted Lane County coordinated population projection; 2) an inventory of buildable residential land; and 3) a determination of the number and type (e.g. single family and multi-family) of housing units that will need to be constructed to house the projected population residing within Springfield's jurisdictional share of the area subject to the Eugene-Springfield Metropolitan Area, (e.g. the area east of Interstate 5) for the plan period 2010-2030. The findings and conclusions of the study indicate that 5,980 housing units and 145 group quarter dwellings will be needed to provide a 20-year supply of housing to meet Springfield’s needs and that the housing mix (single family vs. multi-family dwellings) will need to change to meet shifting population demographics. DISCUSSION: RESIDENTIAL LAND CAPACITY AVAILABLE FOR GROWTH The study also provides technical analysis to determine the amount of land that would be required to provide for the needed dwelling units, based on the inventory of land available under existing Metro Plan residential and mixed-use designations and Plan policies (e.g. densities), adopted mixed-use nodal development master plans and specific plans (RiverBend, Glenwood Riverfront Plan and Marcola Meadows), and utilizing existing Land Use Efficiency Measures already embedded in Springfield Development Code Residential Zoning District ordinances. The conclusions of the study indicate that the available capacity in the residential buildable lands inventory will not provide a 20-year supply of land to meet Springfield’s housing needs, density and mix under current plan designations and policies. Springfield will have a total deficit of 344 acres of land in the plan period. The Springfield UGB has enough land for 6,920 new dwelling units including redevelopment capacity without taking into account the need for 463 acres of this land for other uses. Table S-4 shows the capacity for residential development by plan designation both before and after subtracting acreage needed for other uses, such as parks, schools, churches, etc.). ECO estimates Springfield will need 463 acres for other uses during the 2010-2030 period. 1 The 2007 Oregon legislature amended ORS 197 Comprehensive Land Use Planning Coordination by adding ORS 197.304(1) (a&b), (2) and (3) which state in part: “a city within Lane County that has a population of 50,000 or more shall meet its obligation under ORS 197.295 to 197.314 separately from any other city within Lane County. The city shall...establish an urban growth boundary, consistent with the jurisdictional area of responsibility specified in the acknowledged comprehensive plan; and demonstrate... that its comprehensive plan provides sufficient buildable lands within an urban growth boundary...to accommodate estimated housing needs for 20 years.” M E M O R A N D U M City of Springfield To: Springfield Planning Commission From: Linda Pauly, Community Planning Supervisor Date: October 20, 2009 Subject: Springfield Residential Land and Housing Needs Analysis Attachment 2-2 Table S-4. Residential capacity for needed dwelling units by plan designation, Springfield UGB, 2010-2030 123456789 Plan Designation Need (DU) Capacity (DU) Surplus/ Deficit (DU) Needed Density (DU/GRA) Housing Land Need (Gross Acres) Housing Surplus/ Deficit (Gross Ac) Other Residential Land Need Total Surplus/ Deficit (Gross Ac) Low Density Residential 3,468 3,714 246 5 -54 54 347 -293 Medium Density Residential 1,794 2,731 937 12 0 77 93 -15 High Density Residential 718 475 -243 20 12 -12 23 -35 Total 5,980 6,920 939 0 -42 119 463 -344 Source: ECONorthwest Adoption of the findings and conclusions of the Springfield Residential Land and Housing Needs Analysis by the City Council will fulfill the City’s obligation under HB3337’s mandate to make a determination of housing need by December 31, 2009. The City is adopting the Springfield Residential Land and Housing Needs Analysis to achieve compliance with the statutory obligations of the law. Adoption of the findings of the baseline RLS study is the City’s first step towards planning for residential growth and needed housing for the plan period 2010-2030. Adoption of the Springfield Residential Land and Housing Needs Analysis establishes the factual basis for subsequent amendments to the Metro Plan involving the creation of separate UGBs and separate land inventories for Springfield and Eugene. NEXT STEPS: SPRINGFIELD 2030 REFINEMENT PLAN AND LAND USE EFFICIENCY MEASURES The findings of the Springfield Residential Land and Housing Needs Analysis combined with the findings and policy recommendations of the Springfield Commercial and Industrial Buildable Lands Study (CIBL) will provide the basis for significant updates to Springfield’s land use plans in 2010. The next steps are to develop and adopt plan policies and designations for Springfield that will guide changes in land use over the plan period 2010-2030. Staff are currently preparing a draft policy document– the Springfield 2030 Refinement Plan. This plan is a refinement plan of the Metro Plan for the metro urban area east of I-5 that will establish a separate Urban Growth Boundary (UGB) for Springfield as required by ORS 197.304. The Springfield UGB is required to provide a 20-year supply of land to meet the City’s projected needs, consistent with all applicable planning goals, statutes and administrative rules. The Springfield and Lane County Planning Commissions will conduct public hearings on the Springfield 2030 Refinement Plan beginning in early 2010, to be followed by hearings before the Springfield City Council and Lane County Board of Commissioners. The final decision to adopt the Springfield 2030 Refinement Plan Metro Plan amendment will incorporate for adoption the Springfield Residential Lands and Housing Needs Analysis, and will be an action that requires co-adoption by both the City Council and Lane County Board of Commissioners, Deficiencies identified in the Springfield Residential Land and Housing Needs Analysis will be addressed through subsequent adoption the Springfield 2030 Refinement Plan. This city-wide comprehensive planning document will include 1) a Springfield Residential Land and Housing Element consisting of goals, policies, and implementation actions consistent with state needed housing statutes and Statewide Planning Goals 10 Housing and Goal 14 Urbanization; and 2) a Springfield 2030 Refinement Plan diagram that will designate sufficient Attachment 2-3 residential land to provide Springfield’s needed housing density and mix. The Springfield Residential Land and Housing Needs Analysis will eventually be incorporated into the Springfield 2030 Refinement Plan as an appendix to the plan’s Housing Element. The Springfield 2030 Refinement Plan will also include Urban Design, Economic, Urbanization, and Environmental Elements. A key land use challenge for the City of Springfield is how it will accommodate its projected share of regional economic and population growth while also preserving and enhancing the city’s quality of life and uniqueness. The City Council directed staff to work with the Planning Commission to develop new plan policies and zoning ordinances to implement additional Land Use Efficiency Measures in Springfield. Adoption of these measures — such as increasing density along transit corridors and allowing small lot development — will provide a planning framework to facilitate compact urban development consistent with state mandates while supporting multiple community planning objectives and City Council Goals. Planning staff and the City’s consultant ECONorthwest have gathered input across a broad spectrum to identify and evaluate potential efficiency measures (Attachment 4). Options have been presented to the community via online surveys, planning workshops and open houses; and work sessions with stakeholder and focus groups, the Planning Commission and the City Council. Staff will continue to seek public input on the proposed measures as we move forward with public hearings to adopt the Springfield Residential Land and Housing Needs Analysis. Some measures will result in new plan designations and/or density ranges adopted into the Springfield 2030 Refinement Plan. Others will be implemented through amendments to the Springfield Development Code. It is the City’s intent to have the Springfield 2030 Refinement Plan’s goals, objectives, policies and recommendations outline a growth strategy with five broad components: • Promote compact, orderly and efficient urban development by guiding future growth to planned redevelopment areas within the established portions of the city, and to planned new neighborhoods where future expansion may occur. • Encourage a pattern of mixed land uses and development densities that will locate a variety of different life activities, such as employment, housing, shopping and recreation, in convenient proximity, to encourage and support multiple modes of transportation, including walking, bicycling, and transit, in addition to motor vehicles both within and between neighborhoods and districts. • Balance the goals of accommodating growth and increasing average density within the city with the goals to stabilize and preserve the established character of sound older neighborhoods by clearly defining locations where redevelopment is encouraged, and by requiring that redevelopment be guided by a detailed neighborhood refinement or special district plan. • Use selective, planned redevelopment at appropriate locations as one method of providing additional land use diversity and choices within districts and neighborhoods currently characterized by a limited range of land uses and activities. Attachment 2-4 • In both redevelopment areas and new growth areas on the periphery, establish planning and design standards that will promote economically viable development of attractive, affordable and engaging districts and neighborhoods. The Housing Element of the plan will include Springfield-specific policies to guide future residential and residential mixed-use development and redevelopment in a manner that will provide for the projected housing needs of our community. In some cases, the plan diagram will propose redesignations and/or new designations for specific parcels in response to deficiencies identified in the findings and conclusions of the Residential and Commercial and Industrial Buildable Lands studies and to resolve existing plan-zone conflicts and/or inconsistencies. Staff will be bringing draft Springfield 2030 Refinement Plan work products to the Planning Commission in a series of work sessions beginning in December 2009. As directed by the City Council, Springfield intends to implement additional Land Use Efficiency Measures identified through the RLS planning process which may further reduce the projected residential acreage deficit while addressing housing affordability and choice. If sufficient land cannot be provided to meet demand after additional efficiency measures are applied, the City will need to expand its Urban Growth Boundary to increase the inventory of buildable residential land, consistent with Statewide Planning Goal 14 and Goal 10. The housing capacity analysis and Goal 14 UGB Alternatives Analysis are iterative processes, so the exact amount of land needed for projected residential growth is subject to adjustment throughout the public policy review process. The Springfield Residential Land and Housing Needs Analysis was prepared by the City’s consultant ECONorthwest. Assumptions utilized in the inventory and analysis were prepared in collaboration with the Residential Lands Stakeholder Committee, Planning Commission and City Council. Earlier drafts and updates of the study were presented to the Planning Commission on November 16th, 2007, March 18th, 2008, April 16, 2009 & June 2, 2009. Earlier drafts and updates of the study were presented to the City Council on October 22, 2007 While the City cannot force the market to build housing units, the City is mandated by the state to designate land for the needed housing types in its comprehensive plan. The City can also provide development incentives – regulatory and monetary – to encourage the market to build needed housing types. CONCLUSION: Adoption of the Springfield Residential Land and Housing Needs Analysis is necessary to allow Springfield to comply with part of its obligations under ORS 197.304 by the statutory deadline of January 1, 2010. The Staff Report accompanying this memorandum includes findings demonstrating conformance with ORS 197.296. ALTERNATIVES/OPTIONS There are several options available to the planning commission: 1. Close the record and deliberate. 2. Leave the record open for a specific period of time to allow additional testimony and rebuttal and reconvene; 3. Continue the hearing to a date certain to allow additional testimony and/or respond to questions from the commission(s) or public. Attachment 2-5 Upon conclusion of deliberations, the planning commissions may choose to: 1. Forward a recommendation to adopt the Springfield Residential Land and Housing Needs Analysis to the City Council; 2. Forward a recommendation to adopt a modified proposal to the City Council. 3. Forward a recommendation to not adopt the Springfield Residential Land and Housing Needs Analysis to the City Council. ATTACHMENTS: Analysis and Findings of compliance with ORS 197.296, Statewide Planning Goals, Oregon Revised Statutes and Oregon Administrative Rules. Summary of the record of the process to date Findings in Support of Resolution No. ______ Attachment 2-6 Staff report and findings of compliance with ORS 197.296, Statewide Goals, Oregon Revised Statutes and Oregon Administrative Rules for proposed adoption of Springfield Residential Land and Housing Needs Analysis Applicant: The City of Springfield File Number: LRP 2007-00030 Nature of the Application: Adopt the Springfield Residential Land and Housing Needs Analysis to provide Springfield with a baseline inventory, analysis and housing needs determination for the plan period 2010-2030. Springfield is adopting the Springfield Residential Land and Housing Needs Analysis as an incremental step towards the City’s compliance with its statutory obligations under ORS 197.304(1)(a)&(b),(2) and (3). Background and Context of the Proposed Action The 2007 Oregon legislature adopted HB3337 by amending ORS 197 to add ORS 197.304(1)(a)&(b),(2) and (3). The provisions of this law require Eugene and Springfield, separately from any other city in Lane County, to perform the following: (a)Establish an urban growth boundary, consistent with the jurisdictional area of responsibility specified in the acknowledged comprehensive plan; and (b) Demonstrate, as required by ORS 197.296 that its comprehensive plan provides sufficient buildable lands within an urban growth boundary established pursuant to statewide planning goals to accommodate estimated housing needs for 20 years. In addition to the two actions described above, the statute also requires the demonstration in (b) to be completed by December 31, 2009.2 To complete our first step towards meeting the requirements of ORS 197.304(1)(a)&(b),(2) and (3) Springfield has conducted a Residential Lands Study (RLS). The Springfield Residential Land and Housing Needs Analysis is the primary work product of the RLS. The City proposes to adopt the Springfield Residential Land and Housing Needs Analysis in response to the requirement of 197.304(b) to complete a housing needs inventory, analysis and determination by December 31, 2009. We are undertaking this action to achieve timely compliance with the statutory obligations of the law. Timely compliance is a reference to the deadline imposed by our statutory obligations but also is meant to convey that we recognize the extent of this obligation and are taking the required steps. The Springfield Residential Land and Housing Needs Analysis is consistent with the relevant statewide planning goals, Oregon Revised Statutes and Administrative Rules that govern the 2 “Sec.3 A local government that is subject to section 2 of this 2007 Act [197.304] shall complete the inventory, analysis and determination required under ORS 197.296(3) to begin compliance with section 2 of this 2007 Act within two years after the effective date of this 2007 Act [January 1, 2008]” Attachment 2-7 requirements for the inventory and analysis necessary to make the needs determination. No amendment to the Metro Plan is proposed in this action. Adoption of the Springfield Residential Land and Housing Needs Analysis establishes the factual basis for subsequent amendments to the Metro Plan involving the creation of separate UGBs and separate land inventories for Springfield and Eugene. All of those changes cannot be predicted; they must be based on compliance with the goals. That cannot occur in the absence of the facts necessary to support the changes. A housing needs analysis is governed by Statewide Planning Goal 10 (Housing), ORS 197.295– 197.314 (Needed Housing in Urban Growth Areas), and OAR 660, Division 8 (Interpretation of Goal 10 Housing). ORS 197.296 (Factors to Establish Sufficiency of Buildable Lands within Urban Growth Boundary) includes requirements for addressing residential land need. Statewide Planning Goal 10, applicable statutes, and OAR 660, Division 8, require an analysis of needed housing in the community over the planning period. Goal 10 and ORS 197.303 define “needed housing.”3 The housing needs analysis includes examination of the appropriate housing mix and the number of units of each type of housing needed to accommodate future demand, based on the population forecast, household size, and other demographics. This analysis is translated into the number of acres of land required to accommodate future residential growth. Anticipated future demographic characteristics that are part of the analysis should be based on reliable data and explained. Projected housing density must be based on the housing needs analysis, because lot size and housing type are such important factors in housing affordability. Adoption of the findings and conclusions contained in the Springfield Residential Land and Housing Needs Analysis shall provide Springfield with the baseline technical analysis necessary to develop the plan policies, plan designations, and zoning map ordinances necessary to support the designation and zoning of sufficient residential land in the comprehensive plan to meet Springfield’s projected housing needs for the plan period 2010-2030. Sequencing of the Proposed Action and Next Steps The conclusions of the Springfield Residential Land and Housing Needs Analysis indicate that the urban growth boundary under Springfield’s jurisdictional responsibility – given current Metro Plan designations and Springfield Development Code zoning ordinances - does not contain sufficient buildable land to meet the demand for needed residential development over the 20- year plan period. Springfield will face deficiencies in all residential plan designation categories (low, medium and high density residential). The Low Density Residential designation has a deficit of 293 gross acres. The Medium Density Residential designation has a deficit of approximately 15 gross acres. The High Density Residential designation has a deficit of approximately 35 gross acres. ORS 197.296(6) requires cities to take one or more of the following actions if the housing need is greater than the housing capacity to accommodate the additional housing need: (6) If the housing need determined pursuant to subsection (3)(b) of this section is greater than the housing capacity determined pursuant to subsection (3)(a) of this section, the 3 “* * * ‘needed housing’ means housing types determined to meet the need shown for housing within an urban growth boundary at particular price ranges and rent levels. * * *” Additional requirements apply to cities larger than 2,500 population. Attachment 2-8 local government shall take one or more of the following actions to accommodate the additional housing need: (a) Amend its urban growth boundary to include sufficient buildable lands to accommodate housing needs for the next 20 years. As part of this process, the local government shall consider the effects of measures taken pursuant to paragraph (b) of this subsection. The amendment shall include sufficient land reasonably necessary to accommodate the siting of new public school facilities. The need and inclusion of lands for new public school facilities shall be a coordinated process between the affected public school districts and the local government that has the authority to approve the urban growth boundary; (b) Amend its comprehensive plan, regional plan, functional plan or land use regulations to include new measures that demonstrably increase the likelihood that residential development will occur at densities sufficient to accommodate housing needs for the next 20 years without expansion of the urban growth boundary. A local government or metropolitan service district that takes this action shall monitor and record the level of development activity and development density by housing type following the date of the adoption of the new measures; or (c) Adopt a combination of the actions described in paragraphs (a) and (b) of this subsection. Springfield’s projected housing need is greater than the available housing capacity, thus the City will be required to initiate subsequent amendments to the Metro Plan to take additional actions to accommodate the housing need. Land Use Efficiency Measures Implementation Actions The next step in the process will be to consider and determine the effects of implementing new Land Use Efficiency Measures that can “demonstrably increase the likelihood that residential development will occur at densities sufficient to accommodate housing needs for the next 20 years without expansion of the urban growth boundary”. Springfield has taken several significant steps to 1) document, consider and evaluate land use efficiency measures already being implemented through existing land use regulations; 2) identify additional measures that could be implemented; and 3) seek community involvement through a citizen involvement process consisting of web-based community development surveys, public open houses, citizen advisory committee meetings, and outreach to organizations and focus groups. Results and recommendations from the citizen involvement activities were forwarded to the Planning Commission and City Council for consideration and have been incorporated into the public record of these proceedings. The City Council directed staff to work with the Planning Commission to develop plan policies and/or zoning ordinances to implement new Land Use Efficiency Measures. It is expected that some of these measures have potential to “demonstrably increase the likelihood that residential development will occur at densities sufficient to accommodate housing needs for the next 20 years.” For example, the City has two significant specific area refinement planning efforts underway – the Downtown District Plan and the Glenwood Refinement Plan Update. It is expected that these two urban renewal districts will experience significant mixed-use redevelopment over the plan period. Based on preliminary concept plans currently being developed in concert with the Downtown and Glenwood Citizen Advisory Committees, both district plans are likely to be updated to designate land to accommodate significant levels of new high density housing and that such housing may develop at higher minimums than currently prescribed in the Metro Plan. Attachment 2-9 It is also expected that redesignation of land to accommodate needed housing may also have the effect of displacing other existing or planned uses from some areas over the plan period, which could require adjustments to the inventory of commercial and industrial buildable land. The City Council’s decision to initiate a Commercial and Industrial Buildable Lands Study (CIBL) and to conduct both land studies simultaneously supports the coordination necessary to evaluate and propose adjustments to land use designations and inventories. This process will also allow for further consideration and implementation of optimal integration of land uses to expand community livability, opportunity and choice. The end product of this comprehensive planning effort will be an updated Springfield land inventory and an updated plan that designates sufficient land to enable efficient development/redevelopment for the next 20 years. A key land use challenge for the City of Springfield is how it will accommodate its projected share of regional economic and population growth while also preserving and enhancing the city’s quality of life and uniqueness. Urban Growth Boundary Alternatives Analysis No Urban Growth Boundary (UGB) expansion is proposed in this action. Goal 14 states that only after demonstrating that part or all of the housing, economic development, or other land need cannot reasonably be met within the existing UGB can Springfield look at lands outside the UGB to meet its need. Generally, the city needs to inventory vacant, underdeveloped, and redevelopable land to determine the number of housing units and jobs the existing UGB can “reasonably accommodate.” This inquiry should also address whether other changes to the plan, such as increasing allowed density or other efficiency measures, can reduce the number of acres required in a boundary expansion, or eliminate the need for expansion entirely. Springfield has conducted an Urban Growth Boundary (UGB) Alternatives Analysis process to consider the deficiencies identified in the Springfield Residential Land and Housing Needs Analysis alongside the deficiencies identified in the parallel Commercial and Industrial Buildable Lands Study (CIBL). The City’s consultant ECONorthwest prepared three concepts for a Springfield UGB. The concepts were prepared through the CIBL planning process with the CIBL Stakeholders Citizen Advisory Committee and a Technical Advisory Committee (File # LRP2007-00031). The concepts and supporting maps and documentation have been presented to the public at a series of open meetings, open houses and presentations to business and civic organizations. These concepts provide citizens, decision makers, public agency partners (Willamalane, School District 19, Lane Transit District, Springfield Utility Board, ODOT) and city staff with graphic depictions of: 1) the physical constraints of the land surrounding the UGB; 2) geographic areas where UGB expansion is directed under Goal 14 rule priorities; 3) geographic areas where UGB expansion is most desirable to provide for economic opportunities under Goal 9; and 4) approximate acreage of expansion areas that would be required to meet the identified needs given the land constraints. This important process has informed and will continue to inform the community’s discussion and choices about growth, as population and employment projections are translated into mapped acres and locations that can be visualized, discussed and debated as the public review process unfolds. These future scenarios, along with the baseline analyses included in the Springfield Residential Land and Housing Needs Analysis and the Springfield Economic Opportunities Analysis provide the foundation for the policy discussions that will follow as we develop a 20- year comprehensive plan for Springfield. The current UGB was adopted by both the city and the county, and amending it requires adoption by both as well. The process for review and appeal after the city and county have adopted a UGB amendment depends on the population inside the UGB and the size of the expansion. Attachment 2-10 ORS 197.626 provides: “…a city with a population of 2,500 or more within its urban growth boundary that amends the urban growth boundary to include more than 50 acres…shall submit the amendment or designation to the Land Conservation and Development Commission in the manner provided for periodic review…” Since Springfield’s population is greater than 2,500, this statute applies. Upon adoption by the city and county, if the expansion adds more than 50 acres to the current UGB on Springfield’s side of I-5, the City will submit amendments to DLCD (Department of Land Conservation and Development) in accordance with ORS 197.626 and OAR 660-025-0130 and 0140. Springfield 2030 Refinement Plan The city will be required to initiate amendments to the Metro Plan to incorporate and respond to the land studies. This usually involves amendments to the population, housing and land use elements of the plan, and possibly to the economic development chapter, public facilities chapter, or both. Statewide Planning Goal 2 requires that all comprehensive plans include “ultimate policy choices” and “implementing measures consistent with and adequate to carry out the plans.” It is not sufficient to simply adopt a new UGB line on the map. During the needs analysis process, the City has identified opportunities to implement new policies and/or land designations to utilize land within the existing UGB more efficiently than the existing plan permits. The City has discovered that it needs to adjust its housing mix or densities during the planning period in order to accommodate the changing housing needs of the community. For example, the Springfield Residential Land and Housing Needs Analysis Springfield indicates that of the 5,980 new dwelling units needed to accommodate growth between 2010 and 2030 about 3,767 dwelling units (63%) will be single-family types, which includes single-family detached, manufactured dwellings, townhomes, and condos. About 2,213 units (37%) will be multi-family housing. The comprehensive plan will need to reflect the policy choices responsive to these needs, and the implementing land use regulations will need to be updated to ensure these policies can be utilized. Deficiencies identified in the Springfield Residential Land and Housing Needs Analysis will be addressed through subsequent adoption of a new planning document – the Springfield 2030 Refinement Plan. The Springfield 2030 Refinement Plan will be a city-wide comprehensive policy document that will include a Springfield Residential Land and Housing Element consisting of goals, policies, and implementation actions and a Springfield 2030 Refinement Plan diagram that depicts refined and updated land use designations. The Springfield Residential Land and Housing Needs Analysis will eventually be incorporated into the Springfield 2030 Refinement Plan as an appendix to the plan’s Housing Element. The City and Lane County will be conduct public hearings on the Springfield 2030 Refinement Plan beginning in early 2010. The final decision to adopt the Springfield 2030 Refinement Plan Metro plan amendment will also be the final decision on adoption of the Springfield Residential Land and Housing Needs Analysis. The Springfield 2030 Refinement Plan shall establish an urban growth boundary, consistent with Springfield’s jurisdictional area of responsibility specified in the acknowledged comprehensive plan; and shall demonstrate, as required by ORS 197.296, that its comprehensive plan provides sufficient buildable land within an urban growth Attachment 2-11 boundary established pursuant to statewide planning goals to accommodate estimated housing needs for 20 years. Summary: The City is adopting the Springfield Residential Land and Housing Needs Analysis to achieve compliance with the statutory obligations of the law. The final decision to adopt the Springfield 2030 Refinement Plan Metro plan amendment will also be the final decision on adoption of the Springfield Residential Land and Housing Needs Analysis. Residential Land Study Planning Process The RLS was initiated in 2005. After HB3337 was adopted, the City Council directed staff to conduct a Commercial and Industrial Buildable Lands Study concurrently. A full summary of the Springfield Residential Land Study planning process is included as Attachment 4. The summary and the public record for file # LRP2007-00030 demonstrate that Springfield has conducted the Residential Land Study planning process in a manner consistent with Statewide Planning Goal 1. In order for Springfield to comply with the statutory provision, a new population forecast for the city for the next 20 years has been adopted into the comprehensive plan (Metro Plan). On October 19, 2009 the Joint Elected Officials of Lane County, City of Springfield and City of Eugene adopted ordinances amending the Metro Plan to add text to the third paragraph of Chapter I, Introduction Purpose Section on Page I-1 that established a separate, new 20-year population forecasts for Springfield. 2030 2035 Springfield – City Only 74,814 78,413 Urban Transition Area East of I-5 6,794 6,415 Total 81,608 84,828 LCDC’s Urbanization Goal, also known as Goal 14, was amended in 2006 to require that Urban Growth Boundaries be consistent with a “20-year forecast.” LCDC’s interpretive rules flesh this requirement out. OAR 660-024-0040 states: (1) The UGB must be based on the adopted 20-year population forecast for the urban area described in OAR 660-024-0030, [or in ORS 197.036] and must provide for needed housing, employment and other urban uses such as public facilities, streets and roads, schools parks and open space over the 20-year planning period consistent with the land need requirements of Goal 14 and this rule. The 20-year need determinations are estimates which, although based on the best available information and methodologies, should not be held to an unreasonably high level of precision. (4) The determination of 20-year residential land needs for an urban area must be consistent with the adopted 20-year coordinated population forecast for the urban area, and with the requirements for determining housing needs in Goal 10, OAR 660, division 7 or 8, and applicable provisions of ORS 197.295 to 197.314 and 197.475 to 197.490. The Springfield Residential Land and Housing Needs Analysis has been revised several times throughout the course of the RLS process to reflect adjustments to the population data. The Attachment 2-12 final draft was completed in August 2009 and has been revised to be consistent with the adopted 20-year (2030) coordinated Springfield population forecast of 81,608. Pages 27-28 of the Springfield Residential Land and Housing Needs Analysis provides a discussion of the population projection used for the analysis. Applicable Criteria Oregon Housing Policy: Needed Housing in Urban Growth Areas Chapter 2, pages 4-8 of the Springfield Residential Land and Housing Needs Analysis provides a discussion of the legal framework for the analysis. The passage of the Oregon Land Use Planning Act of 1974 (ORS Chapter 197) established the Land Conservation and Development Commission (LCDC), and the Department of Land Conservation and Development (DLCD). The Act required the Commission to develop and adopt a set of statewide planning goals. Goal 10 addresses housing in Oregon and provides guidelines for local governments to follow in developing their local comprehensive land use plans and implementing policies. At a minimum, local housing policies must meet the requirements of Goal 10 (ORS 197.295 to 197.314, ORS 197.475 to 197.490, and OAR 600-008). Goal 10 requires incorporated cities to complete an inventory of buildable residential lands and to encourage the availability of adequate numbers of housing units in price and rent ranges commensurate with the financial capabilities of its households. The Springfield Residential Land and Housing Needs Analysis provides the required inventory and a determination of the number and type of housing units and the amount of land that will be necessary to accommodate needed housing over the 20 year plan period. Goal 10 defines needed housing types as “housing types determined to meet the need shown for housing within an urban growth boundary at particular price ranges and rent levels.” ORS 197.303 defines needed housing types: (a) Housing that includes, but is not limited to, attached and detached single-family housing and multiple family housing for both owner and renter occupancy; (b) Government assisted housing;4 (c) Mobile home or manufactured dwelling parks as provided in ORS 197.475 to 197.490; and (d) Manufactured homes on individual lots planned and zoned for single-family residential use that are in addition to lots within designated manufactured dwelling subdivisions. ORS 197.296 defines factors to establish sufficiency of buildable lands within an urban growth boundary and requires analysis and determination of residential housing patterns. It applies to cities with populations of 25,000 or more and requires cities to: ƒ Demonstrate that its comprehensive plan or regional plan provides sufficient buildable lands within the urban growth boundary established pursuant to statewide planning goals to accommodate estimated housing needs for 20 years (ORS 197.296(2)); ƒ Inventory the supply of buildable lands within the urban growth boundary and determine the housing capacity of the buildable lands (ORS 197.296(3)(a)); and ƒ Conduct an analysis of housing need by type and density range to determine the number of units and amount of land needed for each needed housing type for the next 20 years (197.296(3)(b)). 4 Government assisted housing can be any housing type listed in ORS 197.303 (a), (c), or (d). Attachment 2-13 ORS 197.296 is explicit about what must be considered in a housing needs analysis and the buildable lands inventory. For the purpose of the inventory, “buildable lands” includes: (A) Vacant lands planned or zoned for residential use; (B) Partially vacant lands planned or zoned for residential use; (C) Lands that may be used for a mix of residential and employment uses under the existing planning or zoning; and (D) Lands that may be used for residential infill or redevelopment. Definitions, methods and assumptions are discussed and described in the Springfield Residential Land and Housing Needs Analysis, chapter 3, pages 9-12. To visually display the buildable lands inventory, the inventory includes a map (Map 3-2 on page 14) that identifies lands that are vacant, partially vacant, or designated for mixed-use development. The needs analysis includes an analysis of historical housing density and mix. This analysis must include data from the last periodic review or five years, whichever is greater5 and must address: (A) The number, density and average mix of housing types of urban residential development that have actually occurred; (B) Trends in density and average mix of housing types of urban residential development; (C) Demographic and population trends; (D) Economic trends and cycles; and (E) The number, density and average mix of housing types that have occurred on the buildable lands. Conclusion: The Springfield Residential Land and Housing Needs Analysis constitutes a housing needs analysis as governed by Statewide Planning Goal 10 (Housing), ORS 197.295–197.314 (Needed Housing in Urban Growth Areas), and OAR 660, Division 8 (Interpretation of Goal 10 Housing) and ORS 197.296 (Factors to Establish Sufficiency of Buildable Lands within Urban Growth Boundary). The City’s adoption of the Springfield Residential Land and Housing Needs Analysis will satisfy the requirement of ORS 197.304(b) to complete a housing needs inventory, analysis and determination by December 31, 2009. Figure 2-1 on the following page provides a graphic representation of the housing needs analysis process as defined in ORS 197.296. 5 A local government can make a determination to use a shorter time period than the time period described if the local government finds that the shorter time period will provide more accurate and reliable data related to housing capacity and need. The shorter time period may not be less than three years. Attachment 2-14 Figure 2-1. Process for determining the sufficiency of residential lands Is needed density the same as or less than actual density? Is needed mix the same as actual mix? ORS 197.296(5) Determine actual density/mix of housing ORS 197.296(3)(b) Actions Related to UGBLand Supply/Demand AnalysisLand Supply Land Demand Does UGB contain enough buildable land needed at actual residential densities? ORS 197.296(4) No UGB expansion required. Priority 1 Amend plan/regulations to include new measures that increase likelihood that residential densities will occur at densities sufficient to accommodate housing needs for the next 20 years without expansion of the UGB. Priority 2Adopt a combination of Priorities 1 and 3. Inventory supply of buildable1 residential lands within the UGB:2 •Determine 20-year supply of buildable lands for housing.ORS 197.296(2) and 197.296(3)(a) Conduct housing needs analysis. ORS 197.296(3)(c) and ORS 197.296(7) Use population forecast from coordinating body. ORS 195.036 Yes Identify and evaluate measures to increase likelihood that needed residential development will occur. ORS 197.296(6) and (7) No measures for housing needed. Do the measures for needed housing forego the need to expand the UGB? Yes to both No No Yes Priority 3 Amend the UGB to include sufficient buildable lands to accommodate housing needs.6 1 Buildable lands means vacant and redevelop-able lands in urban and urbanizable areas that are suitable, available and necessary for residential uses. ORS 197.295(2) 2 Goal 14 requires UGB amendments to be adopted by City and County County. OAR 660-015-0000(14) Footnotes: Take one of several actions:No Source: ECONorthwest Attachment 2-15 FINDINGS: The staff report that follows provides references to the Springfield Residential Land and Housing Needs Analysis necessary to demonstrate consistency with the requirements of ORS 197.296. ORS 197.295 (1) establishes the definition of “Buildable lands” and other terms used in ORS 197.295 to 197.314 and 197.475 to 197.490: (1) “Buildable lands” means lands in urban and urbanizable areas that are suitable, available and necessary for residential uses. “Buildable lands” includes both vacant land and developed land likely to be redeveloped. (2) “Manufactured dwelling park” has the meaning given that term in ORS 446.003. (3) “Government assisted housing” means housing that is financed in whole or part by either a federal or state housing agency or a housing authority as defined in ORS 456.005, or housing that is occupied by a tenant or tenants who benefit from rent supplements or housing vouchers provided by either a federal or state housing agency or a local housing authority. (4) “Manufactured homes” has the meaning given that term in ORS 446.003. (5) “Mobile home park” has the meaning given that term in ORS 446.003. (6) “Periodic review” means the process and procedures as set forth in ORS 197.628 to 197.650. (7) “Urban growth boundary” means an urban growth boundary included or referenced in a comprehensive plan. [1981 c.884 §4; 1983 c.795 §1; 1987 c.785 §1; 1989 c.648 §51; 1991 c.226 §16; 1991 c.612 §12; 1995 c.79 §73; 1995 c.547 §2] Definitions, methods and assumptions are discussed and described in the Springfield Residential Land and Housing Needs Analysis, chapter 3, pages 9-12. ORS 197.296 establishes the “factors to establish sufficiency of buildable lands within urban growth boundary; analysis and determination of residential housing patterns”. (2) At periodic review pursuant to ORS 197.628 to 197.650 or at any other legislative review of the comprehensive plan or regional plan that concerns the urban growth boundary and requires the application of a statewide planning goal relating to buildable lands for residential use, a local government shall demonstrate that its comprehensive plan or regional plan provides sufficient buildable lands within the urban growth boundary established pursuant to statewide planning goals to accommodate estimated housing needs for 20 years. The 20-year period shall commence on the date initially scheduled for completion of the periodic or legislative review. The City is adopting the Springfield Residential Land and Housing Needs Analysis at this time to achieve compliance with the statutory obligations of the law. The Springfield Residential Land and Housing Needs Analysis will be incorporated into the Springfield 2030 Refinement Plan Metro plan amendment. The final decision to adopt the Springfield 2030 Refinement Plan will also be the final decision on adoption of the Springfield Residential Land and Housing Needs Analysis. Attachment 2-16 A map of the existing residential land base (Springfield’s jurisdictional portion of the Eugene-Springfield Metropolitan Plan east of Interstate Highway 5) is provided as Map 3- 1, page 11 in the Springfield Residential Land and Housing Needs Analysis. (3) In performing the duties under subsection (2) of this section, a local government shall: (a) Inventory the supply of buildable lands within the urban growth boundary and determine the housing capacity of the buildable lands; and The inventory is discussed and described in the Springfield Residential Land and Housing Needs Analysis, chapter 3, pages 9-20. The housing capacity of buildable lands is described in the Springfield Residential Land and Housing Needs Analysis, chapter 3, pages 18-20. (b) Conduct an analysis of housing need by type and density range, in accordance with ORS 197.303 and statewide planning goals and rules relating to housing, to determine the number of units and amount of land needed for each needed housing type for the next 20 years. Housing need by type and density range is described in the Springfield Residential Land and Housing Needs Analysis, chapter 4, pages 20-63. The step by step process used to determine the number of needed units, the needed density range for each plan designation and the average needed net density for all designations is described in pages 27-63. (4)(a) For the purpose of the inventory described in subsection (3)(a) of this section, “buildable lands” includes: (A) Vacant lands planned or zoned for residential use; (B) Partially vacant lands planned or zoned for residential use; Vacant buildable land is discussed and described in the Springfield Residential Land and Housing Needs Analysis, chapter 3, pages 15-18, Tables 3-4 and 3-5., Map 3-2 . Constraints are mapped (Map 3-4) are listed and accounted for. See pages 12-15. (C) Lands that may be used for a mix of residential and employment uses under the existing planning or zoning; and Residential capacity of land designated for mixed use has been included in the assumptions (pages 9-12). Land needed for housing is described in pages 63-73. (D) Lands that may be used for residential infill or redevelopment. Redevelopment and infill potential is described and accounted for in the inventory. See page 18 and chapter 4. Springfield uses a capacity-based method to identify redevelopment potential. The Springfield Development Code zones land and provides development standards that allow residential infill: SDC 3.2-200 (Residential Districts) permits attached single family, cluster subdivision, detached single family, duplexes, multiple family dwellings, prefabricated dwellings, group care facilities, residential care facilities, manufactured homes, panhandle lots as residential infill uses; SDC 3.2-600 (Mixed-use Districts) encourages infill development and redevelopment; SDC5.5-100 Attachment 2-17 permits Accessory Dwelling Units; SDC5.12-100 (Land Divisions and Partitions) allows creation of 4,500 sq. ft. infill lots. Cluster subdivision standards permit small lot infill development. Residential redevelopment capacity has been supported by approval and redesignation of Master Planned areas (RiverBend Node and Marcola Meadows Node), and mixed-use district plans (Downtown Node and Mohawk Node). (b) For the purpose of the inventory and determination of housing capacity described in subsection (3)(a) of this section, the local government must demonstrate consideration of: (A) The extent that residential development is prohibited or restricted by local regulation and ordinance, state law and rule or federal statute and regulation; (B) A written long term contract or easement for radio, telecommunications or electrical facilities, if the written contract or easement is provided to the local government; and (C) The presence of a single family dwelling or other structure on a lot or parcel. Assumptions, methodology and land constraints are discussed and described in the Springfield Residential Land and Housing Needs Analysis, chapter 3, pages 9-12. Redevelopment assumptions are discussed on page 18 and in chapter 4. (c) Except for land that may be used for residential infill or redevelopment, a local government shall create a map or document that may be used to verify and identify specific lots or parcels that have been determined to be buildable lands. Map 3-2 identifies buildable lands. (5)(a) Except as provided in paragraphs (b) and (c) of this subsection, the determination of housing capacity and need pursuant to subsection (3) of this section must be based on data relating to land within the urban growth boundary that has been collected since the last periodic review or five years, whichever is greater. The determination was based on data related to land within the urban growth boundary. The time period ECONorthwest used for the analysis (1999-July 2008) is discussed on page 20. The data shall include: (A) The number, density and average mix of housing types of urban residential development that have actually occurred; The data on actual number, density and average mix are provided on pages 20-26. (B) Trends in density and average mix of housing types of urban residential development; Trends on density and mix are provided on pages 23-26 and in Appendix B. Springfield’s housing demand and need is discussed on pages pages 27-74. (C) Demographic and population trends; Attachment 2-18 Data on national, state and local demographic trends are discussed on pages 31-47. (D) Economic trends and cycles; and Data on economic trends are discussed on pages 31-57. (E) The number, density and average mix of housing types that have occurred on the buildable lands described in subsection (4)(a) of this section. Data on number, density and average mix of housing that have occurred are discussed on pages 20-26. (b) A local government shall make the determination described in paragraph (a) of this subsection using a shorter time period than the time period described in paragraph (a) of this subsection if the local government finds that the shorter time period will provide more accurate and reliable data related to housing capacity and need. The shorter time period may not be less than three years. (c) A local government shall use data from a wider geographic area or use a time period for economic cycles and trends longer than the time period described in paragraph (a) of this subsection if the analysis of a wider geographic area or the use of a longer time period will provide more accurate, complete and reliable data relating to trends affecting housing need than an analysis performed pursuant to paragraph (a) of this subsection. The local government must clearly describe the geographic area, time frame and source of data used in a determination performed under this paragraph. The determination was based on data related to land within the Eugene-Springfield metro urban area east of I-5. The time period ECONorthwest used for the analysis (1999-July 2008) and the rationale for using this period are discussed on page 20. Methods utilized are described in pages 9-12. Data sources are listed beneath each data table in the study or in footnotes at the bottom of the relevant pages. (6) If the housing need determined pursuant to subsection (3)(b) of this section is greater than the housing capacity determined pursuant to subsection (3)(a) of this section, the local government shall take one or more of the following actions to accommodate the additional housing need: (a) Amend its urban growth boundary to include sufficient buildable lands to accommodate housing needs for the next 20 years. As part of this process, the local government shall consider the effects of measures taken pursuant to paragraph (b) of this subsection. The amendment shall include sufficient land reasonably necessary to accommodate the siting of new public school facilities. The need and inclusion of lands for new public school facilities shall be a coordinated process between the affected public school districts and the local government that has the authority to approve the urban growth boundary; (b) Amend its comprehensive plan, regional plan, functional plan or land use regulations to include new measures that demonstrably increase the likelihood that residential development will occur at densities sufficient to accommodate housing needs for the next 20 years without expansion of the urban growth boundary. A local government or metropolitan service district that takes this action shall monitor and record Attachment 2-19 the level of development activity and development density by housing type following the date of the adoption of the new measures; or (c) Adopt a combination of the actions described in paragraphs (a) and (b) of this subsection. The conclusions of the Springfield Residential Land and Housing Needs Analysis indicate that the urban growth boundary under Springfield’s jurisdictional responsibility – given current Metro Plan designations and Springfield Development Code zoning ordinances - does not contain sufficient buildable land to meet the demand for needed residential development over the 20-year plan period. Springfield will face deficiencies in all residential plan designation categories (low, medium and high density residential). The Low Density Residential designation has a deficit of 293 gross acres. The Medium Density Residential designation has a deficit of approximately 15 gross acres. The High Density Residential designation has a deficit of approximately 35 gross acres. The city will be required to initiate amendments to the Metro Plan to incorporate and respond to the land studies. The findings of the Springfield Residential Land and Housing Needs Analysis combined with the findings and policy recommendations of the Springfield Commercial and Industrial Buildable Lands Study (CIBL) will provide the basis for significant updates to Springfield’s land use plans in 2010. Staff are currently preparing a draft policy document for Springfield – the Springfield 2030 Refinement Plan. This plan is a refinement plan of the Metro Plan for the metro urban area east of I-5 that will establish a separate Urban Growth Boundary (UGB) for Springfield as required by ORS 197.304. (7) Using the analysis conducted under subsection (3)(b) of this section, the local government shall determine the overall average density and overall mix of housing types at which residential development of needed housing types must occur in order to meet housing needs over the next 20 years. If that density is greater than the actual density of development determined under subsection (5)(a)(A) of this section, or if that mix is different from the actual mix of housing types determined under subsection (5)(a)(A) of this section, the local government, as part of its periodic review, shall adopt measures that demonstrably increase the likelihood that residential development will occur at the housing types and density and at the mix of housing types required to meet housing needs over the next 20 years. The conclusions of the Springfield Residential Land and Housing Needs Analysis indicate that the overall needed housing mix is 60% single family (including manufactured and single family attached units) and 40% multifamily (page 61). Springfield needs to adopt new measures that demonstrably increase the likelihood that residential development will occur at the housing types and density and at the mix of housing types required to meet housing needs over the next 20 years. Staff are currently preparing a draft policy document for Springfield – the Springfield 2030 Refinement Plan that will update policies, plan designations and densities to provide for the needed housing mix. This plan will be a refinement plan of the Metro Plan for the metro urban area east of I-5 that will establish a separate Urban Growth Boundary (UGB) for Springfield as required by ORS 197.304. (8)(a) A local government outside a metropolitan service district that takes any actions under subsection (6) or (7) of this section shall demonstrate that the Attachment 2-20 comprehensive plan and land use regulations comply with goals and rules adopted by the commission and implement ORS 197.295 to 197.314. Springfield’s next steps are to develop and adopt the refined plan designations and plan policies that will guide changes in land use over the plan period 2010-2030. These policies and designations will be included as principle elements of the Springfield 2030 Refinement Plan, a refinement plan of the Eugene-Springfield Metro Plan. The plan will include a Residential Land and Housing Element and a plan diagram that will designate sufficient residential land to provide Springfield’s needed housing density and mix, as required by Goal 10. A key land use challenge for the City of Springfield is how it will accommodate its projected share of regional economic and population growth while also preserving and enhancing the city’s quality of life and uniqueness. The City Council directed staff to work with the Planning Commission to develop new plan policies and zoning ordinances to implement additional Land Use Efficiency Measures in Springfield. Adoption of these measures — such as increasing density along transit corridors and allowing small lot development — will provide a planning framework to facilitate compact urban development consistent with state mandates while supporting multiple community planning objectives and City Council Goals. (b) The local government shall determine the density and mix of housing types anticipated as a result of actions taken under subsections (6) and (7) of this section and monitor and record the actual density and mix of housing types achieved. The local government shall compare actual and anticipated density and mix. The local government shall submit its comparison to the commission at the next periodic review or at the next legislative review of its urban growth boundary, whichever comes first. Through the public policy review process and additional analysis, the City shall evaluate potential effects resulting from adoption of new policies on the anticipated density and mix of housing types. Post plan adoption, the City Development Services Department will establish new tools to monitor and record the actual and anticipated density and mix as an integral element of the City’s new Strategic Plan metrics. (9) In establishing that actions and measures adopted under subsections (6) or (7) of this section demonstrably increase the likelihood of higher density residential development, the local government shall at a minimum ensure that land zoned for needed housing is in locations appropriate for the housing types identified under subsection (3) of this section and is zoned at density ranges that are likely to be achieved by the housing market using the analysis in subsection (3) of this section. Actions or measures, or both, may include but are not limited to: (a) Increases in the permitted density on existing residential land; Springfield is considering establishment of a density bonus program to facilitate planned residential high density development areas in Glenwood and Downtown, and along existing and proposed EmX bus rapid transit corridors (proposed TC Designation). Springfield is considering raising the outright permitted density for high density development along EmX bus rapid transit corridors. Springfield is considering establishing high density residential plan designations within existing Mixed-use districts to ensure that residential development occurs. Springfield is proposing to adopt a new intermediate density plan designation to allow smaller lot development (3,000 sq. ft.), cottages clusters and attached rowhouse development as outright Attachment 2-21 permitted uses at 8-15 du/ac. Springfield is considering additional efficiency measures (see Attachment 5). (b) Financial incentives for higher density housing; Springfield is considering establishment of a density bonus program to facilitate planned residential high density development areas in Glenwood and Downtown and establishment of a second Vertical Housing zone in Glenwood. (c) Provisions permitting additional density beyond that generally allowed in the zoning district in exchange for amenities and features provided by the developer; Springfield is considering establishment of a density bonus program to facilitate planned residential high density development areas in Glenwood and Downtown. (d) Removal or easing of approval standards or procedures; (e) Minimum density ranges; Springfield is proposing to adopt a new intermediate density plan designation to allow smaller lot development (3,000 sq. ft.), cottages clusters and attached rowhouse development as outright permitted uses at 8-15 du/ac. Springfield is considering adoption of higher minimum densities in the high density designation in Downtown and Glenwood than currently permitted in the Eugene-Springfield Metro Plan. (f) Redevelopment and infill strategies; Springfield is currently conducting focused planning studies to produce urban design plans, code amendments and redevelopment implementation strategies for its Glenwood and Downtown Urban Renewal districts. Infill development is currently permitted throughout the City. (g) Authorization of housing types not previously allowed by the plan or regulations; Springfield is proposing to adopt a new intermediate density plan designation to allow smaller lot development (3,000 sq. ft.), cottages clusters and attached rowhouse development as outright permitted uses at 8-15 du/ac. Springfield is considering adoption of higher minimum densities in the high density designation in Downtown and Glenwood than currently permitted in the Eugene-Springfield Metro Plan. (h) Adoption of an average residential density standard; and At this time the Springfield City Council has not discussed adoption of an average density standard. (i) Rezoning or redesignation of nonresidential land. [1995 c.547 §3; 2001 c.908 §1; 2003 c.177 §1] Springfield is proposing to redesignate nonresidential land in Glenwood and Downtown and possibly other areas for residential uses. DISCUSSION: Attachment 2-22 Additional potential criteria and staff responses fill the remaining pages of this report; however, all of the following findings are made subject to the reservation that they may be wholly or partially pre-empted by ORS 197.304(1) which says that “Notwithstanding an intergovernmental agreement . . . or acknowledged comprehensive plan provisions to the contrary,” the cities of Eugene and Springfield shall both: (a) establish separate 20-year urban growth boundaries, and (b) demonstrate that their separate boundaries provide sufficient buildable residential lands for the next 20 years as required by ORS 196.296. As a preface to this section of the staff report it is useful to provide some context to what is being proposed by this action and how this action will establish part of the necessary basis for future significant changes to the Metro Plan. Both cities know they have considerable work ahead of them as they undertake compliance with ORS 197.304. As the first seven pages in this report have already demonstrated, the new law that is the cause of this work is a significant departure from the laws and agreements that have bound the two cities and county together since the original acknowledgment process and two subsequent periodic reviews. There is no case law that provides guidance or defines nuance; there is no administrative rule that says how you interpret this law; and there is no precedent elsewhere to use as a model for this action. Eugene and Springfield have a single metro-wide UGB; they will soon have separate municipal UGBs. Eugene and Springfield have shared a single metro-wide buildable lands inventory because of the single UGB; they will soon have separate buildable lands inventories contained within their separate UGBs. Eugene and Springfield have shared a single metro-wide population and employment forecast because they’ve shared a single UGB and single buildable lands inventory. They have begun this compliance process by adopting separate population forecasts into a comprehensive plan that still recognizes the current single, shared UGB and a single, shared buildable lands inventory. No amendment to the Metro Plan is proposed in this action. Adoption of the Springfield Residential Land and Housing Needs Analysis establishes the factual basis for subsequent amendments to the Metro Plan involving the creation of separate UGBs and separate land inventories for Springfield. All of those changes cannot be predicted; they must be based on compliance with the goals. That cannot occur in the absence of the facts necessary to support the changes. The next step in that process (as explained previously) is adopting the residential inventory and needs determination. We are undertaking this action to achieve timely compliance with the statutory obligations of the law. Timely compliance is a reference to the deadline imposed by our statutory obligations but also is meant to convey that we recognize the extent of this obligation and are taking the required steps. What might otherwise be seen as a conflict is resolved by the explicit requirements of the 2007 statute and by the context and language of the amendment. In short: Adoption of the Springfield Residential Land and Housing Needs Analysis is a step towards implementation of that statute. The HNA addresses a new 20-year planning period. The Metro Plan will evolve from its pre-HB3337 content and structure in phases as the cities complete their remaining implementation obligations under the new law, based on the new forecasts. Attachment 2-23 A demonstration of compliance with the state-wide goals for this amendment, if required at all, is primarily related to Goals 1, 2 and 10 as the remaining goals either don’t apply within UGBs (3 & 4) or don’t apply here in the Willamette Valley (16-19); the other goals are not affected by adoption of the Springfield Residential Land and Housing Needs Analysis alone, but can have applicability when subsequent actions that rely upon the findings of the Springfield Residential Land and Housing Needs Analysis are proposed. In spite of the indirect nature of the relationship between the proposed amendment and the goals, an explanation was provided explaining why this action was not contrary to the goals. DEFINITIONS Definitions in ORS 197.015, 197.295, and 197.303 shall apply 660-008-0005 Definitions For the purpose of this rule, the definitions in ORS 197.015, 197.295, and 197.303 shall apply. In addition, the following definitions shall apply: (1) “Attached Single Family Housing” means common-wall dwellings or rowhouses where each dwelling unit occupies a separate lot. (2) “Buildable Land” means residentially designated land within the urban growth boundary, including both vacant and developed land likely to be redeveloped, that is suitable, available and necessary for residential uses. Publicly owned land is generally not considered available for residential uses. Land is generally considered “suitable and available” unless it: (a) Is severely constrained by natural hazards as determined under Statewide Planning Goal 7; (b) Is subject to natural resource protection measures determined under statewide Planning Goals 5, 15, 16, 17, or 18; (c) Has slopes of 25 percent or greater; (d) Is within the 100-year flood plain; or (e) Cannot be provided with public facilities. (3) “Detached Single Family Housing” means a housing unit that is free standing and separate from other housing units. (4) “Housing Needs Projection” refers to a local determination, justified in the plan, of the mix of housing types and densities that will be: (a) Commensurate with the financial capabilities of present and future area residents of all income levels during the planning period; (b) Consistent with any adopted regional housing standards, state statutes and Land Conservation and Development Commission administrative rules; and (c) Consistent with Goal 14 requirements. (5) “Multiple Family Housing” means attached housing where each dwelling unit is not located on a separate lot. (6) “Redevelopable Land” means land zoned for residential use on which development has already occurred but on which, due to present or expected market forces, there exists the strong likelihood that existing development will be converted to more intensive residential uses during the planning period. CONSISTENCY WITH THE RELEVANT STATEWIDE PLANNING GOALS adopted by the Land Conservation and Development Commission; Goal 1 – Citizen Involvement Attachment 2-24 To develop a citizen involvement program that insures the opportunity for citizens to be involved in all phases of the planning process. Requirements under Goal 1 are met by adherence to the citizen involvement processes required by the Metro Plan and implemented by the Springfield Development Code, Chapter 5, Section 5.14-135, Eugene Code Section 9.7735, and Lane Code Sections 12.025 and 12.240. A full summary of the Springfield Residential Land Study planning process is included as Attachment 4. The summary and record demonstrate that Springfield has conducted the Residential Lands Study planning process to date in a manner consistent with Statewide Planning Goal 1. Evidence of the public involvement process thus far is fully documented in the public record: application file number LRP2007-00030. A plan for citizen involvement was presented to the Committee for Citizen Involvement (a function of the Planning Commission) on March 7, 2006. A Residential Lands Study Stakeholder Committee composed of citizens, housing advocates, business professionals, realtors, agencies and staff met five times from May 2006 to April 2007. Committee members were also invited to participate in a Planning Commission work session on July 21, 2009. Public open houses to present the revised findings of the RLS and preliminary determination of need and to get input on proposed Land Use Efficiency Measures were held on April 2, May 14 & 20, 2009. Notice to the Department of Land Conservation and Development (DLCD) was provide at least 45 days before the initial evidentiary hearing (planning commission), on September 4, 2009. Notice of the Planning Commission hearing was sent by email to interested parties on October 1, 2009. Notice of the proposed action was published in the Register-Guard - a newspaper of general circulation - on October 8, 2009. The Springfield Residential Land and Housing Needs Analysis and hearing dates were posted on the Springfield Planning Division web page: http://www.ci.springfield.or.us/dsd/Planning/index.htm. A public hearing will be held before the Planning Commission on October 20, 2009. All written comments received were incorporated into the record. Goal 2 – Land Use Planning To establish a land use planning process and policy framework as a basis for all decisions and actions related to use of land and to assure an adequate factual base for such decisions and actions. All land-use plans and implementation ordinances shall be adopted by the governing body after public hearing and shall be reviewed and, as needed, revised on a periodic cycle to take into account changing public policies and circumstances, in accord with a schedule set forth in the plan. Opportunities shall be provided for review and comment by citizens and affected governmental units during preparation, review and revision of plans and implementation ordinances. Implementation Measures – are the means used to carry out the plan. These are of two general types: (1) management implementation measures such as ordinances, regulations or project plans, and (2) site or area specific implementation measures such as permits and grants for construction, construction of public facilities or provision of services. Attachment 2-25 The current version of the Metro Plan was last adopted in 2004 (Springfield (Ordinance No. 6087; Eugene Ordinance No. 20319; and Lane County Ordinance No. 1197) after numerous public meetings, public workshops and joint hearings of the Springfield, Eugene and Lane County Planning Commissions and Elected Officials. Subsequent to these Metro Plan adoption proceedings, the 2007 Oregon Legislature adopted new laws that applied specifically to Eugene, Springfield and Lane County. ORS 197.304 requires Eugene and Springfield to adopt separate urban growth boundaries based on the jurisdictional responsibilities contained in the Metro Plan, make a determination based on the provisions of ORS 197.296 that there is sufficient buildable lands within these UGBs to accommodate projected growth for the next 20 years, and to make this determination by December 31, 2009. In response to this mandate, Springfield is undertaking two necessary interim steps in compliance: 1) Initiation of a post-acknowledgement plan amendment of the Metro Plan to establish a residential land and housing needs determination that will comply with the required planning period of 20 years beginning at the date scheduled for completion of this action (2010); and 2) City adoption of the findings and conclusions of the Springfield Residential Land and Housing Needs Analysis as one of the baseline studies required for subsequent policy and plan development. The sequencing of these steps is articulated more fully in Attachment 1 and pages 1-7 of this report. The Metro Plan is the land use or comprehensive plan required by this goal; the Springfield Development Code, the Eugene Code and the Lane Code are the implementation measures required by this goal. Comprehensive plans, as defined by ORS 197.015(5), must be coordinated with affected governmental units. Coordination means that comments from affected governmental units are solicited and considered. As previously explained, the Springfield Residential Land and Housing Needs Analysis will eventually be scheduled for joint adoption hearings before the Springfield and Lane County elected officials under post-acknowledgement plan amendment procedures. The baseline land studies analyses -- along with Springfield’s proposed policies and plan designations to demonstrably increase the likelihood that needed housing will be developed at density ranges that are likely to be achieved by the housing market – will be incorporated into the Springfield 2030 Refinement Plan policy package. Goal 3 – Agricultural Lands To preserve and maintain agricultural lands. No Metro Plan Amendment is proposed. No other changes to the Metro Plan are included in this proposal. The proposed action does not affect Metro Plan consistency with this goal and in any case, this goal does not apply within adopted, acknowledged urban growth boundaries. (See also OAR 660-024-0020) Goal 4 – Forest Lands To conserve forest lands by maintaining the forest land base and to protect the state’s forest economy by making possible economically efficient forest practices that assure the continuous growing and harvesting of forest tree species as the leading use on forest land consistent with sound management of soil, air, water, and fish and wildlife resources and to provide for recreational opportunities and agriculture. Attachment 2-26 No Metro Plan Amendment is proposed. No other changes to the Metro Plan are included in this proposal. The proposed action does not affect Metro Plan consistency with this goal and in any case, this goal does not apply within adopted, acknowledged urban growth boundaries. (See also OAR 660-024-0020) Goal 5 – Open Spaces, Scenic and Historic Areas, and Natural Resources To protect natural resources and conserve scenic and historic areas and open spaces. No Metro Plan Amendment is proposed. No other changes to the Metro Plan are included in this proposal. The proposed action does not affect acknowledged Goal 5 inventories so this proposal does not create an inconsistency with the goal. Adoption of a residential land and housing needs baseline analysis alone does not impact Goal 5 resources; subsequent analysis of the findings and conclusions of the baseline analysis and subsequent actions must observe applicable goals, statutes and rules. The Cities have finished all work required under Goal 5 during the most recent Periodic Review (completed in 2007). Future plan amendments to designate a 20-year supply of land for needed housing will need to demonstrate consistency with Goal 5 and OAR 660-023-0070: (1) If measures to protect significant resource sites inside urban growth boundaries affect the inventory of buildable lands in acknowledged plans required by Goals 9, 10 and 14, a local government outside of the Metro UGB, and Metro inside the Metro UGB, prior to or at the next periodic review, shall: (a) Amend its urban growth boundary to provide additional buildable lands sufficient to compensate for the loss of buildable lands caused by the application of Goal 5; (b) Redesignate other land to replace identified land needs under Goals 9, 10, and 14 provided such action does not take the plan out of compliance with other statewide goals; or (c) Adopt a combination of the actions described in subsections (a) and (b) of this section. (2) If a local government redesignates land for higher density under subsections (1)(b) or (c) of this rule in order to meet identified housing needs, the local government shall ensure that the redesignated land is in locations appropriate for the housing types, and is zoned at density ranges that are likely to be achieved by the housing market. (3) Where applicable, the requirements of ORS 197.296 shall supersede the requirements of sections (1) and (2) of this rule. Springfield Residential Land and Housing Needs Analysis assigns classifications to all tax lots in Springfield’s residential lands inventory (page 10-17). Goal 5 resources have been accounted for in the analysis. The “Unbuildable” category includes tax lots or areas within tax lots with Goal 5 wetlands and riparian corridors and setbacks. Goal 6 – Air, Water and Land Resources Quality To maintain and improve the quality of the air, water and land resources of the state. Attachment 2-27 This goal is primarily concerned with compliance with federal and state environmental quality statutes, and how this compliance is achieved as development proceeds in relationship to air sheds, river basins and land resources. No Metro Plan Amendment is proposed. No other changes to the Metro Plan are included in this proposal. Adoption of a residential land and housing needs baseline analysis alone has no direct affect on or applicability to this goal. Any actions affecting inventories or land use or development that occur as a result of the housing needs determination will be subject to the applicable goals, statutes and rules at the time those actions are undertaken. Goal 7 – Areas Subject to Natural Disasters and Hazards To protect people and property from natural hazards. The Metro Plan and the City’s development code are acknowledged to be in compliance with all applicable statewide land use goals, including Goal 7. No Metro Plan Amendment is proposed. No other changes to the Metro Plan are included in this proposal. Adoption of new policies and/or plan designations in response to a residential land and housing needs analysis affecting inventories or land use or development that occur as a result of the housing needs determination will be subject to the applicable goals, statutes and rules at the time those actions are undertaken. Subsequent actions based upon the housing needs determination and that may impact this goal are required to address this applicability during the public review and hearings process. Goal 8 – Recreational Needs To satisfy the recreational needs of the citizens of the state and visitors and, where appropriate, to provide for the siting of necessary recreational facilities including destination resorts. Willamalane and the City co-adopted the Park and Recreation Comprehensive Plan in 2004. Park land needs are based on the level of service established in Willamalane’s plan. This plan has a recommended standard of 14 acres of park land for each 1,000 persons. The 2004 plan projects an increase of 25,000 citizens by the end of the adopted 20-year planning horizon (2022).6 Willamalane is a special service taxing district with the authorization to purchase, develop and maintain park facilities, but it has no authority or obligation for Goal 8 compliance; that responsibility lies with the City of Springfield after coordinating with the Park District. The Metro Plan has a horizon of 2015 therefore Willamalane’s standard of 14 acres per 1,000 residents is a valid standard to the year 2015; anything beyond 2015 is not applicable to the Metro Plan even though Willamalane’s plan extends to 2022. Springfield will continue to coordinate with Willamalane throughout these actions to ensure that land for parks and recreation facilities is accounted and planned for in the updated land inventories to maintain Goal 8 compliance through the new planning period of 2030. Land need for parks and recreation facilities is addressed in the Springfield Residential Land and Housing Needs Analysis on pages 63-67. Springfield has a need for 150 acres of park land to serve the City’s population in 2008. This accounts for a population increase of 4,095 people between 2002 and 2008, which generated an additional need for 57 acres of park land. Goal 9 – Economic Development 6 Page A-4, Willamalane Park and Recreation Comprehensive Plan Attachment 2-28 To provide adequate opportunities throughout the state for a variety of economic activities vital to the health, welfare, and prosperity of Oregon’s citizens. The ORS 197.296 determination applies only to residential inventories and not require an analysis of commercial and industrial lands inventories; and OAR 660-024-0040 allows a local government to review and amend the UGB “in consideration of one category of land need (for example, housing need) without a simultaneous review and amendment in consideration of other categories of land need (for example, employment need).” (OAR 660-024-0040(3)). The cities have chosen to expand the inventory analysis to include commercial and industrial land, both of which rely upon the same population forecast required by OAR 660-024-0040(1). The adoption of the housing needs determination does not directly affect this goal; however, the activities subsequent to the adoption of the determination will rely on this determination as a basis for actions pursuant to the applicable goals. Goal 10 – Housing To provide for the housing needs of citizens of the state. The cities are required by ORS 197.304 to undertake an ORS 197.296 determination within two years of the effective date of the Act. The ORS 197.296 determination involves the inventory, supply and demand analysis of residential land use needs for the forecast population of the 20- year planning period. As previously discussed in this report, the proposed action will adopt the required determination. Adoption of the findings and conclusions contained in the Springfield Residential Land and Housing Needs Analysis shall provide Springfield with the baseline technical analysis necessary to develop the plan policies, plan designations, and zoning map ordinances necessary to support the designation and zoning of sufficient residential land in the comprehensive plan to meet Springfield’s projected housing needs for the plan period 2010-2030, consistent with all other aspects of Goal 10. Future plan amendments to designate a 20-year supply of land for needed housing and to adopt the Springfield Residential Land and Housing Needs Analysis as a supporting element of the comprehensive plan will need to demonstrate consistency with Goal 10. Goal 11 – Public Facilities and Services To plan and develop a timely, orderly and efficient arrangement of public facilities and services to serve as a framework for urban and rural development. Adoption of a residential land and housing needs baseline analysis alone does not directly affect the public facilities plan until the buildable lands inventories necessary to support that forecast are adjusted through subsequent amendments to the comprehensive plan. The location and/or density increases that will need to occur to provide for housing needs must be provided with adequate levels of urban services. In the event Springfield makes adjustments to permitted densities causing greater demand for public infrastructure, the City will evaluate these services and where necessary, propose additional Metro Plan amendments in compliance with this goal. Goal 12 - Transportation To provide and encourage a safe, convenient and economic transportation system. Attachment 2-29 The transportation system plan is similar to the public facilities and services plan in that the transportation system is designed to accommodate future growth at densities prescribed in the plan’s policies. Land development cannot occur in the absence of transportation infrastructure capacity. The obligation in 197.296 to complete a needs determination is consistent with the purpose and timing of transportation analysis required by Goal 12; OAR 660-12 Transportation and OAR 660-024 Urban Growth Boundaries. Goal 13 – Energy Conservation To conserve energy. 3. Land use planning should, to the maximum extent possible, seek to recycle and re- use vacant land and those uses which are not energy efficient. There are no requirements in the rule or statute that require the energy element of the plan to be amended to correspond with the housing needs analysis. Any subsequent changes to land use designations, including adjustments to the UGB must comply with the applicable provisions of this goal and interpretive rules. Goal 14 – Urbanization To provide for an orderly and efficient transition from rural to urban land use, to accommodate urban population and urban employment inside urban growth boundaries, to ensure efficient use of land, and to provide for livable communities. A housing needs analysis does not affect the existing UGB but the establishment of, or change to a UGB cannot be undertaken unless there are adopted analyses for the 20-year period upon which the buildable lands inventories are based. Since this determination, and hence the application of Goal 14, cannot occur without the housing needs determination, the city must adopt a needs determination to comply with the provisions of ORS 197.296. Adoption of the Springfield Residential Land and Housing Needs Analysis is an interim step towards compliance with Goal 14. Goal 15 – Willamette River Greenway To protect, conserve, enhance and maintain the natural, scenic, historical, agricultural, economic and recreational qualities of lands along the Willamette River as the Willamette River Greenway. A housing needs determination has no direct affect on the implementation or continued compliance with Goal 15. When the governing bodies take subsequent actions to amend the Eugene-Springfield comprehensive plan in response to the needs identified in the Springfield Residential Land and Housing Needs Analysis ( e.g. changes to policies, designations, development standards or densities) those changes must be evaluated against all applicable goals, statutes and rules. Such evaluations will include Goal 15. Goal 16 Estuarine Resources, Goal 17 Coastal Shorelands, Goal 18 Beaches and Dunes, and Goal 19 Ocean Resources These goals do not apply to the Eugene-Springfield Metropolitan Area. Attachment 2-30 Conclusion: The Springfield Residential Land and Housing Needs Analysis is consistent with the relevant statewide planning goals, Oregon Revised Statutes and Administrative Rules that govern the requirements for the inventory and analysis necessary to make the needs determination. Adoption of the Springfield Residential Land and Housing Needs Analysis allows Springfield to comply with part of its obligations under ORS 197.304 by the statutory deadline of January 1, 2010. Tasks Target Dates Task Completed Task 1: Residential Buildable Lands Inventory (Work conducted internally by City Staff) City Council directed DSD staff to begin an inventory and analysis of Springfield’s residential land. (Goal Setting Session) December 5, 2005 PROJECT INITIATION Citizen Involvement Plan presented to CCI March 2, 2006 YES Review work program with Planning Commission and City Council March 6, 2006 YES RLS Stakeholder Committee recruitment March 30, 2006 YES Stakeholder Committee meetings #1-2 to review the definitions/assumptions for “vacant, underutilized, and redevelopable,” and to define constraints that would make land “unbuildable.” May 11th, 2006 YES Review definitions and assumptions with Planning Commission June , 2006 YES Review definitions and assumptions with City Council June 12, 2006 YES Conduct initial inventory work: ƒ Identify vacant, underutilized, and redevelopable land ƒ Identify environmentally constrained lands ƒ Identify land with public facility constraints May 2006 – December 2006 YES ECONorthwest hired in October 2006 to begin Phase 2 (see below) Housing Needs Analysis Task 2: Residential Land & Housing Needs Analysis (Work conducted by City’s consultant ECONorthwest and City staff) Coordinate with City Staff to determine the actual density/mix of housing October 2006 – December 2006 YES Stakeholder Committee meeting #3 to review the population definitions/assumptions for population projections and anticipated housing trends January 18th, 2007 YES Conduct a Housing Needs Analysis January 2007 – August 2009 YES Stakeholder Committee meeting #4 to review the initial housing inventory & needs findings. March 8, 2007 YES Compare the needed housing density and mix with the actual density and mix. January 2007 – March 2007 YES Stakeholders Committee Meeting #5 to review the Draft Report. April 16, 2007 YES Present RLS Draft Technical Memorandum to City Council for review. Includes modifications made in the draft report between April 07 and October 07 due to project delay from HB 3337; and new spatially adjusted GIS data which impacted the inventory numbers.) October 22, 2007 YES Present RLS Draft Technical Memorandum to Planning Commission for review November 6, 2007 YES Present Land Use Efficiency Measures work December 11, YES Springfield Residential Lands Study Summary of Process to Date Attachment 3-1 program 2007 Send Land Use Efficiency Measures info packet to Stakeholder Committee, conduct on-line survey and post potential measures on planning website January 7-21, 2008 YES Stakeholder Committee meeting #6 to review survey results January 31, 2008 YES Review Land Use Efficiency Measures survey results with Planning Commission February 20, 2008 YES Stakeholder Committee meeting #7 to review survey results and finalize committee recommendations February 28, 2008 YES Identify and evaluate potential measures to increase the likelihood that needed residential development will occur (Land Use Efficiency Measures). Present Stakeholder recommendation to Planning Commission and City Council March 18, 2008 (PC) April 13, 2008 (CC) YES Task 3: Verification and Updating of Inventory (staff & ECO Northwest) Inventory recalculation due to project hold ƒ Two new inventory recalculations were completed during this time as new inventory maps were produced to verify accuracy of spreadsheet information. ƒ One additional inventory recalculation has been completed to include steep slopes & floodplain (per direction from DLCD) ƒ Inventory was updated to July 2008 August 2007 August 2008 YES Coordinate adoption of Springfield population projection with Lane County 2007- October 2009 YES Task 4: Revised Residential Land & Housing Needs Analysis, Integration of RLS with CIBL / Goal 14 Analysis & Preliminary Policy Development Public open houses to present the revised findings of the RLS and preliminary determination of need and to get input on proposed Land Use Efficiency Measures April 2, 2009 May 14 & 20, 2009 YES Produce revised inventory map April 2009 YES Recalculate Needs Analysis in response to updated inventory & population projection. May-June 2009 YES Present RLS findings to Planning Commission for review and get input on proposed Land Use Efficiency Measures April 16 & June 2, 2009 YES Present RLS findings to City Council for review and get input on proposed Land Use Efficiency Measures April 13, 2009 YES Incorporate RLS findings into Goal 14 Alternatives Analysis April – June 2009 YES Present revised RLS findings and preliminary UGB concepts at CIBL Stakeholder Meeting June 11, 2009 YES Attachment 3-2 Planning Commission Work Session – Present revised RLS findings and get input on Land Use Efficiency Measures to provide needed housing density & mix June 2, 2009 YES Present draft RLS findings, proposed Land Use Efficiency Measures and preliminary UGB concepts at public open houses July 16, 2009 August 12, 2009 YES Reconvene Stakeholder Committee and multifamily housing developers at Planning Commission work session to review the housing inventory & needs findings and gather input on proposed Land Use Efficiency Measures implementation actions July 21, 2009 YES Staff verified inventory to account for PAPAs not documented in LCOG data August - October YES Send RLS Report to DLCD for review (45-Day Notice of Proposed Adoption) September 3, 2009 YES Prepare addendum to RLS report if necessary to correct the inventory October 12, 2009 YES Planning Commission Public Hearing for review/adoption of Residential Land & Housing Needs Analysis – first reading October 20, 2009 NO City Council Public Hearing for review/adoption – second reading November 16, 2009 NO Complete Step One. Determine the number and type (e.g. single family and multi- family) of housing units needed to house the projected population residing within Springfield's jurisdictional share of the area subject to the Eugene-Springfield Metropolitan Area, consistent with requirements of HB 3337, Goal 14, ORS 197.296, and OAR 660-008. Make the determination of buildable land sufficiency by December 31, 2009. Task 5: Prepare Metro Plan Amendment - Springfield 2030 Refinement Plan Residential Land & Housing Element Policy Development IN PROGRESS Prepare Draft Springfield 2030 Refinement Plan Residential Element (plan policies) October 30, 2009 IN PROGRESS Prepare Draft Springfield 2030 Refinement Plan Diagram (plan designations and overlays) October 30, 2009 IN PROGRESS Submit Draft Springfield 2030 Refinement Plan Metro Plan amendment to DLCD December 2009 NO Public open house and hearing(s) - Comment period on Draft Springfield 2030 Refinement Plan December - February 2010 and ongoing through public review process NO Task 6: Refine Springfield 2030 Plan policies and determine the effect of implementation of new policies and designations on the land supply and UGB Alternatives Analysis December 2009 – ongoing through public review process NO Attachment 3-3 Conduct public hearings (Springfield and Lane County Planning Commissions, City Council and Board of Commissioners) on adoption of Springfield 2030 Refinement Plan including Residential Land & Housing Needs Analysis, CIBL & Springfield Urban Growth Boundary February – April 2010 NO Complete Step Two. Prepare Goal 14 report. Make final determination of whether a UGB expansion is required to provide sufficient land to accommodate 20-year inventory of buildable land to provide for housing needs. Complete Step Three. Acknowledgement of the Springfield 2030 Refinement Plan Attachment 3-4 PROPOSED LAND USE EFFICIENCY MEASURES The Residential Lands Study Stakeholder Committee and the Planning Commission reviewed and prioritized potential Land Use Efficiency measures and recommended that the City Council consider implementing these measures or consider changing existing policies to increase the land‐use efficiency derived from these measures.  Two public open houses were conducted in April‐May 2009 to gather input on the proposed measures.  At the 4‐13‐ 09 work session, the City Council directed staff to work with the Planning Commission to develop the planning tools necessary to implement new measures.  Some implementation will be deferred due to the complexity of issues and limited staff resources.  This chart provides a summary of proposed policies and implementing ordinances.  The Springfield 2030 Refinement Plan   Attachment 4-1 HIGH PRIORITY MEASURES  PROPOSED IMPLEMENTATION ACTIONS Land Use Efficiency Measure RLS Stakeholder Committee Recommendation  2‐28‐08 Planning Commission Recommendation 3‐18‐08 City Council Recommendation 4‐13‐09 Input from Public Open House Survey (11 respondents) 4‐2‐09 Draft Springfield 2030 Refinement Plan Input from Springfield 2030 Refinement Plan public review process  February‐March 2010  1. Maximum lot size Supports measure No consensus. PC directed staff to monitor lot sizes to inform future discussion.  Some are concerned that continuing to allow partitions that create lots larger than 1/2 acre in the unincorporated areas is not efficient use of remaining land in the UGB. CC is reluctant to impose maximums  but is interested in policies that provide variety and choice of lot sizes High priority Combine with #2:  Minimum density in LDR District.      2. Minimum density in the Low Density Residential district Supports measure No recommendation.  Acknowledged the relationship between small lots and affordable housing. Counci l is interested in providing options for higher density neighborhoods, lot sizes and housing types to further the goal of affordable home ownership. Medium priority Staff recommends: ƒ Consider adopting a minimum density of 6 dwelling units/acre net for new land divisions in the LDR to reflect the existing minimum lot sizes (4,500 and 5,000 sq. ft. and 6,000 sq. ft. for corner lots with duplexes), with exemption for non‐cluster subdivisions in Hillside Development Overlay District.   ƒ Adopt code amendment to clarify the existing UF‐10 land division development standards that require future development plans (shadow plat requirements ). ƒ Adopt new low‐moderate density single family zoning district standards to encourage affordable small lot development (see #4).  3. Reduce street Supports measure Supports measure CC recognizes the complexity of this issue.  Lower priority A future interdepartmental work program item will address land efficiency, potential cost savings,  new ways to manage   Attachment 4-2 width standards Directed PW and DSD staff to put this on a future work program.   PW to take the lead. stormwater , climate issues, emergency access and traffic concerns.   PW staff will bring examples from communities where alternative street standards had been proven effective 4. Allow small lots Supports measure Supports measure Counci l is interested in providing options for higher density neighborhoods, lot sizes and housing types to further the goal of affordable home ownership. Supports measure ƒ Staff was directed to prepare code amendments to implement  a  new low‐moderate density single family zoning district plan designation and zoning that would allow 3,000 sq. ft. foot lots and require a density of 8‐15 du/ac and to identify additional opportunities where such a district could be applied.   ƒ Staff believes the new district may be applicable to Low Density Residential neighborhoods in Glenwood and Jasper‐Natron area.  Opportunities will be reviewed during  the Glenwood Refinement Plan Update project and Jasper – Natron planning.  ƒ Staff has identified additional opportunities where the new low‐moderate density single family zoning district may be useful in resolving existing plan zone conflicts.  Staff will provide information to the Planning Commission at a future work session.    5. Cluster development:  examine barriers that discourage the use of cluster development Supports measure Supports measure and asked staff for additional information to identify impediments. Supports measure.   Supports measure ƒ Staff will prepare draft code amendments to remove/reduce  regulatory  impediments and identify incentives to encourage and reward cluster development. ƒ Staff will prepare draft code amendments to clarify how cluster development and density transfers standards may be applied in the Hillside Overlay District. ƒ Street design standards are currently an impediment.  See # 3.     6. Increase allowed densities.  Consider increasing (or eliminating) density maximums in high density zones The Planning Commission prioritized higher density development in the Glenwood and Downtown Urban Renewal Districts and in Gateway. Supports measure.   Supports measure ƒ Staff proposes to increase density maximums in existing high density districts within ¼ mile of EmX transit stations (Transit Corridor Overlay District). ƒ Consider increasing density minimums in Glenwood Riverfront District and Downtown District, as guided by current planning efforts. ƒ Consider instituting a density bonus program to allow and encourage additional density/ building height increases in “receiving” areas identified in the Glenwood and Downtown District plans.   Attachment 4-3  7. Increase opportunities for development of duplexes, etc.  Consider expanding where duplexes, tri‐plexes, or quad‐plexes are allowed, including allowing more of these housing types in LDR if appropriate.  This includes considering elimination of the restriction that allows duplexes on corner lots only in LDR to allow more duplexes in subdivisions. Supports measure with added language: “Consider design standards in developing such housing” to the measure.  Supports measure Supports measure ƒ Adopt new low‐moderate density single family zoning district standards to encourage affordable small lot development  ƒ Staff proposes to work with the Planning Commission to develop “Universal Design Standards” for residential development that are equitable, clear and objective to replace current standards which require a more complex and less certain land use review process for attached housing, cluster development and multifamily housing.   ƒ Staff proposes consideration of  a simplified and expedient Type I design/development review process (Ministerial decision) for review of residential permit applications for uses permitted outright in the zone.   MEDIUM PRIORITY MEASURES PROPOSED IMPLEMENTATION ACTIONS 8. Nodal development Consider additional areas for nodal development Supports measure Supports measure Supports measure ƒ Consider expansion of the Glenwood node through the Glenwood Refinement Plan process  ƒ Consider expansion of the Downtown node through the Downtown District  Plan process  ƒ Consider future work program project:  Downtown to Gateway EmX Corridor Plan to identify and evaluate nodal development opportunities along the new transit corridor ƒ Consider future work program project:  Main Street Corridor plan ƒ Apply TC Overlay District to existing high density housing areas within ¼ mile of transit stations. ƒ Implement Jasper‐Natron Specific Plan ND   9. Allow mixed‐use development Consider additional areas to allow mixed‐use in conjunction with the CIBL study.   Supports measure Supports measure Supports measure ƒ UGB Alternatives Analysis to consider locations for mixed use areas ƒ Consider future work program project:  Main Street Corridor plan ƒ Update Glenwood Refinement Plan to expand mixed use concept beyond the Glenwood Riverfront Plan site. ƒ Consider future work program project:  Downtown to Gateway EmX Corridor Plan to identify and   Attachment 4-4 evaluate mixed use development concepts along the new transit corridor. ƒ Consider creation of an “ Employment Campus/Employment Center” mixed use employment plan designation and consider applying the designation to existing and new Campus Industrial areas located along transit corridors  10. Transit Oriented Development Consider increasing densities allowed along transit corridors. Supports measure Supports measure Supports measure ƒ Downtown District Plan ƒ Glenwood Refinement Plan Update ƒ Consider Transit Corridor Overlay Plan Designation (see #6)  11. Allow Co‐Housing Explore barriers to allowing co‐housing development in LDR. Supports measure and added “Consider co‐housing with design standards in high‐density zones” Supports measure Supports measure No proposal has been developed at this time   LOW PRIORITY MEASURES PROPOSED IMPLEMENTATION ACTIONS 12. Density bonus  Supports measure Supports measure Supports measure Lower priority  Staff proposes consideration of exception to building height limit and/or additional density in designated density receiving areas (Glenwood Riverfront District and Downtown District) when developer provides specified community benefits such as construction of affordable housing units or dedication of public open space ‐ to encourage high density development and to achieve community development objectives.  Such a program would require add’l staff time to develop,  implement and administer.  13. Transfer of Development Rights  Supports measure Supports measure Supports measure Lower priority  No proposal has been developed at this time   14. Expedited Project Review  Supports measure Supports measure Supports measure 50/50 Supports measure/ Lower priority Staff proposes consideration of a simplified and expedient Type I design/development review process (Ministerial decision) for review of residential permit applications for residential uses permitted outright in the zone.   15. Accessory Dwelling Units Supports measure Supports measure Supports measure Med‐low priority Staff consideration of  a simplified and expedient Type I design/development review process (Ministerial decision) for review of residential permit applications for residential uses permitted outright in the zone.  Staff proposes to work with the Planning Commission to develop “Universal Design Standards” for residential   Attachment 4-5 development that are equitable, clear and objective to replace current standards which single out attached housing, cluster development and multifamily housing.     16. Multifamily Tax Credit  Consider modifying the code to give more flexibility for accessory dwelling units Supports measure Supports measure Low priority Staff proposes consideration of  a simplified and expedient Type I design/development review process (Ministerial decision) for review of residential permit applications for residential uses permitted outright in the zone, including Accessory Dwelling Units. Staff proposes consideration of  establishing  another Vertical Housing Tax Credit District in the Glenwood Riverfront District (we currently have this tool in Downtown only).         ADDENDUM TO THE SPRINGFIELD RESIDENTIAL LAND AND NEEDS ANALYSIS  In its report to the city, ECONorthwest stated that Springfield has 2,485 acres in tax lots that are designated for  residential uses. Of these, about 935 acres within the Urban Growth Boundary (UGB) are considered vacant and  buildable. Table S‐2 is an excerpt from pg. ii of the ECONorthwest report that shows vacant land by plan designation.    Table S‐2. Vacant residential land by plan designation, Springfield UGB, 2008  Plan Designation Tax Lots Total Acres in Tax Lots Developed Acres Constrained Acres Buildable Acres Low Density Residential 981 2,137 72 1,241 824 Medium Density Residential 126 329 132 102 95 High Density Residential 8 19 1 2 16 Total 1,115 2,485 205 1,345 935   Source: City of Springfield GIS data; analysis by ECONorthwest Subsequent to the release of the ECO Northwest report, staff found instances where adopted Metro Plan and  Refinement Plan amendments did not find their way into the regional database which ECONorthwest used for its  analysis.  Between August and October, staff reviewed each of the adopted plan amendments passed since 1982 to  identify amendments that were not entered into the regional database.  Staff then totaled the impact of the uncounted  amendments on the residential inventory.    The uncounted amendments, when figured into the inventory, resulted in a net loss of .27 acres of residential land.  This  includes an increase of 2.66 acres of Low Density Residential and a loss of 2.93 acres of Medium Density Residential  land.    The table below list those Metro Plan and Refinement Plan Amendments which were not counted.  Uncounted Metro Plan and Refinement Plan Amendments Impacting the   Residential Land Study    Old  Designation  New  Designation Ordinance # Map/Tax Lot Acreage  LDR CC  6058 1702333107400 0.55  LMI LDR 6135 1702312103800 1.55  LMI LDR 6135 1702312103900 0.40  LMI LDR 6135 1702312104000 0.37  LMI LDR 6135 1702312104100 0.38  MDR C  5516 1702314106600 0.11  MDR C  5516 1702314106700 0.13  MDR C  5784 1702313106702 0.46  MDR C  6024 1702324202100 0.36  MDR GO 6193 1703252403600* 0.19  MDR GO 6193 1703252404700 0.33  MDR GO 6193 1703252404800 0.33  MDR GO 6193 1703252404900* 0.32  MDR GO 6193 1703252405000 0.19  MDR LDR 5653 1702323304300 0.17  MDR LDR 5653 1702323304400 0.17  MDR LDR 5653 1702323304700 0.17  *buildable    Attachment 5-1 RECOMMENDATION TO THE CITY COUNCIL BEFORE THE PLANNING COMMISSION OF THE CITY OF SPRINGFIELD REQUEST TO ADOPT THE SPRINGFIELD ] RECOMMENDATION TO RESIDENTIAL LAND AND HOUSING ] THE CITY COUNCIL NEEDS ANALYSIS ] Case Number LRP 2007-00030 NATURE OF THE APPLICATION 1. House Bill 3337 requires that Springfield demonstrate as required by ORS 197.296 that its Comprehensive Plan provide sufficient buildable lands within an urban growth boundary to accommodate estimated housing needs for 20 years on or before January 1, 2010. To accomplish this requirement, the City of Springfield has commissioned a Residential Land and Housing Needs Analysis outlining Springfield’s housing needs for the next 20 years. 2. In 2007 the Oregon Legislature passed House Bill 3337 which mandates the City of Springfield to complete the 20 year buildable residential land inventory analysis and determination on or before January 1, 2010. The city reads HB 3337 to require the city to complete the initial stage of the ORS 197.296 process by the end of the year. That initial stage does not include adoption or amendment of an urban growth boundary or amendment to any comprehensive plan policies or designations. 3. Local adoption of the Springfield Residential Land and Housing Needs Analysis is an interim step necessary to comply with the law. The final decision on adoption of the Springfield Residential Land and Housing Needs Analysis shall be made by the Springfield City Council and the Lane County Board of Commissioners as the Springfield Residential Land and Housing Needs Analysis is incorporated into the Springfield 2030 Refinement Plan, a refinement plan of the Eugene-Springfield Metro Plan. Subsequent action in compliance with HB3337 to establish a separate urban growth boundary for Springfield may rely in part on this document, a variation of this document, or entirely new documentation. The adoption of a UGB is an iterative process, and depending on how the record develops, the background assumptions, analysis and determinations in the attached Springfield Residential Land and Housing Needs Analysis may change. 4. The Springfield City Council directed staff to begin the above referenced study on December 5, 2005. 5. Timely and sufficient notice of the public hearing, pursuant to Springfield Development Code Section 5.2-115, has been provided. 6. The Springfield Residential Land and Housing Needs Analysis is consistent with ORS 197.296 as described in the attached staff report. 7. On October 20, 2009, a public hearing on the Springfield Residential Land and Housing Needs Analysis was held before the City of Springfield Planning Commission. The Development Services Department staff report, the oral testimony, letters received, written submittals of the persons testifying at the hearing, and the public record for file # LRP2007-00030 have been considered and hereby are incorporated into the record for this proceeding. Attachment 6-1 Attachment 6-2 CONCLUSION On the basis of this record, the proposed Springfield Residential Land and Housing Needs Analysis as submitted is consistent with the criteria of House Bill 3337, ORS 197.296, ORS 197.303, ORS 197.304, the Statewide Planning Goals and Administrative Rules pertaining to housing – OAR 660- 008-0000 - 0040. This general finding is supported by the specific findings of fact and conclusions in the attached Staff Report and Findings. RECOMMENDATION The Planning Commission, at its October 20, 2009 meeting, hereby recommends that the City Council approve the determination set forth in the Springfield Residential Land and Housing Needs Analysis, as presented herein at Case No. LRP2007-00030. ______________________________ Planning Commission Chairperson ATTEST: AYES: _____ NOES: _____ ABSENT: _____ ABSTAIN: _____ Mia Nelson 975 West 5th Avenue #5 Eugene, OR 97402 (541) 520-3763 October 9, 2009 Springfield Planning Commission City of Springfield 225 Fifth Street Springfield, OR 97477 Re: Draft Springfield Housing Needs Analysis Dear Planning Commissioners: Please place these comments in the record of Springfield’s Housing Needs Analysis adoption process. These comments are made on behalf of both LandWatch Lane County and myself as an individual. I have reviewed the draft Analysis dated August 2009, and have four main areas of concern: 1) The assumption that large amounts of already developed and developable land provide no capacity for additional housing due to the presence of slopes over 25 percent grade. 2) The assumption that constraints such as slope, wetlands, floodplains, riparian areas and easements preclude use of land for non-residential needs such as parks. 3) The assumption that non-residential uses such as parks and schools will be provided for using residentially designated lands, instead of land designated specifically for those uses. 4) The planned unilateral adoption of the Analysis by Springfield without a guarantee of a later opportunity for the Lane County Board of Commissioners to question the validity of the Analysis when the corresponding UGB expansion is initiated in 2010. According to Table 6-4 of the Analysis, the situation with Springfield’s 20-year land supply is as follows: Housing: 119 acre surplus within UGB Parks, Government, Schools, Churches, etc: 463 acre deficit NET EFFECT: 344 acres of new land needed Table 6-3 says that Springfield’s vacant land supply is only 956 acres. However, Table 3-3 (attached) shows that there is another 1,345 acres of land with development capacity that is nevertheless deemed “not available for housing” because it is “constrained”. Map 3-4 (attached) shows vast areas of Springfield’s vacant lands as “constrained” due to slope and deemed unavailable Springfield Planning Commission October 9, 2009 Page 2 of 3 to meet any part of Springfield’s land need. A cursory look at what has actually happened in the Thurston Hills shows that just because land has constraints, this does not mean that it cannot or will not be developed. Much of this vacant land is either already developed (such as MountainGate) or likely will be developed in the future. While your staff may argue that OAR 660-008-0005(2)(c) permits exclusion of land over 25% from residential inventories, this OAR does not require you to do that. It is not realistic to exclude building lots in developed subdivisions, claiming that they are unbuildable simply due to slope, while continuing to issue building permits for those lots. It is not realistic to pretend that absolutely no development will occur on these hillside sites, while Springfield’s code allows such development. Neither the Springfield Planning Commission nor the Lane County Board of Commissioners is under any obligation to go along with this approach. If your staff truly believes that all this land is completely undevelopable, then why haven’t they proposed banning all development on slopes over 25%? Even if constraints such as steep slopes, riparian areas, wetlands, utility easements and floodplains can properly be considered a barrier to residential development, that does not mean these constraints are a barrier for use as parklands. In fact, many of these features are desirable qualities for parklands, and OAR 660-008-0005(2) does not permit the exclusion of these lands for non- residential uses. Again, there are real life examples demonstrating Springfield’s willingness to use steep lands for parks. Yet the three parks planned for MountainGate, which together comprise almost 100 acres, are not recognized as such since this land was zeroed out of the calculations due to being considered “constrained” because of slope. This can easily be seen in the attached annotated portion of Map 3-4 alongside a sales brochure from MountainGate. The upper portion of Table 3-3 also shows an additional 43 acres of “constrained” park/school land and 62 acres of “constrained” public land. Whether or not the constraints present on this land (which are not specified in the table) really do render the land unusable for parks, schools or other public needs is not a foregone conclusion. Therefore the true amount of “constrained” land available for parks, schools or other public uses may be even higher than the 1,345 acres listed in the lower section of Table 3-3. Another problem is that while land needs other than residential are being provided for in this Analysis (government, schools, utilities, parks, churches, charities, etc.), the only land considered available for these non-residential needs is residentially designated land. Per page 9: “The land base includes all lands in the Springfield portion of the Metro UGB that are either fully or partially within a residential plan designation.” This approach is confirmed in Tables 3-2 and 3-3, and on Map 3-1 (attached); only residentially designated lands are tallied. A review of Springfield’s Metro Plan diagram (attached) reveals large areas designated “Government and Education” and “Public Land & Open Space”; if they Springfield Planning Commission October 9, 2009 Page 3 of 3 have any additional capacity, these lands should be considered fully available to meet Springfield’s future park, school and government land needs. Yet there is no analysis of these lands. These three assumptions are not trivial; indeed they appear to form the entire basis for the proposed 344-acre residential UGB expansion. Table 6-2 states that 357 acres of land are needed to meet park needs; this is a bit more than the 344 total acres the Analysis recommends adding to the UGB. That means that if 344 acres of new parks can be sited on constrained lands and/or on existing park-designated lands, Springfield’s existing vacant residential lands would be enough to fully meet the 20-year demand. Finally, I am concerned by your staff’s intention to unilaterally adopt this Analysis without obtaining co-adoption from the Lane County Board of Commissioners. My understanding is that Springfield staff are not sure whether the Board will have the ability, legally, to question this Analysis when Springfield initiates the corresponding UGB expansion proposal sometime next year. I am also unsure about this, and my understanding is that at least some at DLCD are unsure as well. The effects of HB3337 are a bit murky, and it appears that it may well be impossible for any of us to determine what the Board’s legal rights are in this situation. In the absence of certain assurance that the Board of Commissioners will retain full review authority, it appears the Board’s only option is to jump into this process as a regular participant, and then appeal Springfield’s decision if its concerns are not addressed. If the proposed draft is adopted unchanged by Springfield, then without the ability to question this Analysis down the road, the Board would have little choice but to approve the proposed 344-acre UGB expansion. This segmented adoption process therefore could function as an end run around the Board’s authority to regulate UGB expansions. A better plan would be to submit this Analysis for Board co-adoption as part of the ongoing process. Thank you for the opportunity to comment. Sincerely, Mia Nelson Attachments: Table 3-3 from the Analysis Map 3-4 from the Analysis Annotated Map 3-4 with MountainGate sales brochure Map of Springfield’s Metro Plan designations Map 3-1 from the Analysis Table 6-2 from the Analysis Cc: Lane County Board of Commissioners DRAFT: Springfield Housing Needs Analysis ECONorthwest August 2009 Page 13 Table 3-2. Lands designated for residential uses, Springfield UGB, 2008 Source: analysis by ECONorthwest Table 3-3 shows residential acres by classification and constraint status for the Springfield UGB in 2009. Analysis by constraint status (the table columns) shows that about 4,585 acres are classified as built or committed (e.g., unavailable for development), 1,962 acres were classified as constrained, and 935 were classified as vacant buildable. Table 3-3. Residential acres by classification, Springfield UGB, 2009 Source: City of Springfield data; analysis by ECONorthwest Note: No buildable acres are shown for master planned areas because the master plan identifies the number of dwelling units. This capacity is reflected in Table 3-7. Area ValueSpringfield UGB Number of Tax Lots 22,627 Acres in Tax Lots 12,139Springfield CIBL Tax Lots in Residential Designations 20,159 Acres in Land Base in Residential Designations 7,483 Land available for housing Classification Tax Lots Total Ac Developed Ac Constrained Ac Buildable Ac Land with no development capacity Developed 18,745 4,408 3,944 464 0 Park/School 96 335 292 43 0 Public 58 79 17 62 0 Right of Way 145 175 127 48 0 Subtotal 19,044 4,997 4,380 617 0 Land with development capacity Master Planned 18 151 128 23 See notes Partially Vacant 234 841 77 308 456 Vacant 863 1,493 0 1,014 479 Subtotal 1,115 2,485 205 1,345 935 Total 20,159 7,482 4,585 1,962 935 Land not avialable for housing (The interpretation and purpose of the Plan Diagram, and descriptions of the land uses and symbols shown, are contained in Chapter II-G.) 4/08/04 The information on this map was derived from digital databases on Lane Council of Governments’ regional geographic information system. Care was taken in the creation of this map, but it is provided "as is". LCOG cannot accept any responsibility for errors, omissions, or positional accuracy in the digital data or the underlying records. Current plan designation, zoning, etc., for specific parcels should be confirmed with the appropriate governmental entity - Eugene, Springfield, or Lane County - with responsibility for planning and development of the parcel. There are no warranties, express or implied, accompanying this product. However, notification of any errors will be appreciated. VALID AT 11X17 SCALE ONLY A MAIN Q BI-5D I-105 JASPER5TH28TH42ND MARCOLACAMP CREEK E THURSTON G CENTENNIAL MI LL7TH2ND58TH21STOLYMPIC 10TH69THMCKENZIEGATEWAY 32NDMCVAY31ST70THHARLOW 67THDAISY14TH19TH 66TH30THASPENBELTLINE FRANKLIN36TH48TH35THHWY 58 FAIRVIEW HAYDEN BRIDGE YOLANDA 57THLAURAPI ONEER PARKWAY EAST52ND18THHIGH BANKS COMMERCIAL INTERNATIONAL HWY 9 9 SGONYEARAINBOWPA R K W A Y I-5 ONRAMP PRIVATE BOB STRAUBME NL O GAME FARM I -5 OFFRAMPOLD COBURGBRACKENFERNGAME FARMDAISY 30TH A FRANKLIN JASPERPRIVATEG I-5 OFFRAMPI-5HWY 58 MAIN E City of Springfield O r e g o n Map 3-1. Residential Land by Plan Designation ECONorthwest, April 2009 0 1,900 3,800950 Feet¯ Legend PUBLICPUBLIC City Limits Urban Growth Boundary Plan Designation High Density Residential Low Density Residential Medium Density Res Mixed Medium Density Residential Page 64 ECONorthwest August 2009 DRAFT: Springfield Housing Needs Analysis additional facilities. All of these uses will potentially require additional land as a city grows. This section considers other uses that consume land and must be included in land demand estimates. Demand for these lands largely occurs independent of market forces. Many can be directly correlated to population growth. For the purpose of estimating land needed for other uses, these lands are classified into three categories: ! Lands needed for public operations and facilities. This includes lands for city offices and maintenance facilities, schools, state facilities, substations, and other related public facilities. Land needs are estimated using acres per 1,000 persons for all lands of these types. ! Lands needed for parks and open space. The estimates use a parkland standard of 14 acres per 1,000 persons based on the level of service standard established in the Willamalane Park and Recreation Comprehensive Plan, which projected need for parkland in Springfield between 2002 and 2022. ! Lands needed for semi-public uses. This includes hospitals, churches, non-profit organizations, and related semi-public uses. The analysis includes land need assumptions using acres per 1,000 persons for all lands of these types. Table 6-2 shows land in public and semi-public uses by type. The data show a total of 1,636 acres in public and semi public uses in the Springfield UGB in 2009. This equates to 24.8 acres per 1,000 persons. Table 6-2. Summary of public and semi-public land need by type, Springfield UGB, 2010-2030 Source: City of Springfield GIS data; analysis by ECONorthwest Table 6-2 shows that there will be an additional need of about 463 acres of land for all new public and semi-public uses or 21.1 acres per 1,000 people between 2010 and 2030. The information in Table 6-1 is based on the following assumptions: Type of Use Acres Acres / 1000 Persons Assumed Need (Ac/1000 Persons) Estimated Acres 2010- 2030 Government 581 8.8 3.0 44 Utilities 134 2.0 2.0 30 Parks 563 8.5 14.0 357 Schools 277 4.2 0.9 14 Church/Charities/Other 81 1.2 1.2 18 Total 1,636 24.7 21.1 463 From:                              Moore, Ed W [ed.w.moore@state.or.us] Sent:                               Monday, October 12, 2009 10:12 AM To:                                   PAULY Linda Cc:                                   MOTT Gregory Subject:                          RE LRP2009‐00011 (DLCD File Code Springfield PAPA 0007‐09) Linda, Thank you for giving us an opportunity to review the proposed plan amendment to adopt a baseline determination of 20-year residential land capacity for Springfield as part of your on-going HB 3337 work. We are working on concluding our review of the attached document entitled "Springfield Residential Land and Housing Needs Analysis," dated August 2009, and may make some specific comments on elements of your analysis shortly for the record; if so you will have those comments by the end of this week. But before we submit any other comments, we have a general questions and possibly a concern regarding your 'adoption' of this report. On your PAPA Form 1, you checked "Other" for the type of amendment and state "Springfield's ORS 197.296(3) residential lands inventory, analysis, and determination required 2007 Or Laws Chapter 650 (HB 3337)." Here I am assuming you are referencing ORS 197.304. Our question and possible concern come down to this: How is Springfield intending to adopt the "Springfield Residential Land and Housing Needs Analysis"? We note that on Form 1 you gave a local file number (LRP2009-00011) which we infer to represent an amendment to a long range plan; yet the comprehensive plan text amendment box was not checked. Are you adopting this as an amendment to an acknowledged long range (comprehensive) plan? The Metro Plan is the acknowledged comprehensive plan for Springfield, and Eugene. Since you did not identify this PAPA as a Metro Plan Amendment when you submit it (as you have before), Are we to assume you are not since it was not filed as such? How are you adopting the study? Will Lane County be co-adopting your analysis? Depending on how you are adopting the study, we may have a concern. As I am sure you are aware, a number of LUBA and Court of Appeals decisions have determined that local jurisdiction cannot adopt an analysis required under ORS 197.296 which show an unmet residential land need without concurrently either amending its UGB to accommodate that need, or adopting amendments to its land use regulation that will address that unmet residential land need, or both. The “Madras” court of appeals case was clear that a city subject to ORS 197.296 cannot adopt a housing need analysis separately from amending the plan (i.e., moving the UGB or doing other up zoning) as necessary to actually provide sufficient land zoned (under clear and objective standards) to meet the Attachment 7-10 Attachment 7-11 newly identified housing needs. Consequently, we believe no “segmented housing need analysis” adoption is allowed for Springfield, and the Court of Appeals backed that up solidly with the Madras case. Depending on the nature of the "adoption" you propose, you may be at significant risk of appeal and remand by LUBA and/or the Court of Appeals. Please place this e-mail comment into the public record of this proceeding. Should we have additional comments on LRP2009-00011, I will transmit them in time for consideration by the Springfield Planning Commission and City Council. Regards, Ed Ed Moore, AICP | SWV Regional Representative Community Services Division Dept. Land Conservation and Development 644 A Street | Springfield, OR 97478 Cell: 971.239.9453 | Fax: 541.744.8088 ed.w.moore@state.or.us | www.oregon.gov/LCD/