HomeMy WebLinkAboutItem 03 SDC Waiver for HomeownershipAGENDA ITEM SUMMARY
SPRINGFIELD
CITY COUNCIL
Meeting Date:
Meeting Type:
Staff Contact/Dept.:
Staff Phone No:
Estimated Time:
Council Goals:
10/10/2022
Work Session
Katie Carroll/DPW
541-726-3660
20 Minutes
Promote and Enhance
our Hometown Feel
while Focusing on
Livability and
Environmental Quality
ITEM TITLE: SDC WAIVER TO ENCOURAGE AFFORDABLE HOMEOWNERSHIP
ACTION
Provide feedback on the design of a program to waive system development charges
REQUESTED:
(SDCs) for housing units sold affordably to income -qualified households. Direct
staff to return with a draft resolution and guidelines for consideration and adoption.
ISSUE
Although the City has experienced significant residential construction in the last
STATEMENT:
few years, there remains a shortage of housing available that is accessible to low-
income households seeking affordable homeownership opportunities.
ATTACHMENTS:
Attachment 1: Council Briefing Memo — SDC Waiver for Homeownership
Attachment 2: Draft Program Guidelines — SDC Waiver for Homeownership
Attachment 3: Compliance Pathways Explanation — SDC Waiver for
Homeownership
Attachment 4: Presentation slides — SDC Waiver for Homeownership
DISCUSSION/
System Development Charges (SDCs) are charges imposed on development to
FINANCIAL
accumulate capital needed to provide sufficient capacity in infrastructure systems to
IMPACT:
accommodate that development. A waiver of City of Springfield SDCs reduces the
funds available for capital projects for transportation, stormwater, and wastewater
systems. The result is that the City will not be able to build as many infrastructure
projects, or for wastewater and stormwater, ratepayers bear more of the
construction costs for future projects.
Offering a waiver for SDCs reduces the upfront cost of development and may
incentivize types of development that would not otherwise happen. Waiving SDCs
for affordable homeownership housing units can assist a developer to offer units at
a price that is affordable to income -qualified households. A program to waive City
SDCs for affordable homeownership units could increase the number of housing
units available to income -qualified buyers in Springfield.
To address the potential fiscal impact of a program to waive SDCs for affordable
home ownership housing, Council will consider how to monetarily cap the
program. The City's annual SDC revenue has averaged $4,732,788 over the past six
years. Staff recommends capping the waiver program at $300,000 or three years,
whichever comes first. Waiving approximately $100,000 in SDCs per year would
equate to 2% of the average yearly total SDC revenue based on the last six years.
MEMORANDUM City of Springfield
Date: 10/10/2022
To: Nancy Newton COUNCIL
From: Katie Carroll, Housing Analyst BRIEFING
Jeff Paschall, Community Development Director
Subject: SDC Waiver for Affordable Homeownership MEMORANDUM
ISSUE:
Although the City has experienced significant residential construction in the last few years, there
remains a shortage of housing available that is accessible to households seeking affordable
homeownership opportunities.
COUNCIL GOALS/
MANDATE:
Promote and Enhance our Hometown Feel While Focusing on Livability and Environmental
Quality
BACKGROUND:
In its May 9, 2022 work session, Council directed staff to design a program to waive System
Development Charges (SDCs) for income -qualified housing units that are sold affordably to
low-income households. Council reviewed draft guidelines for the program and provided further
direction to staff in its September 12, 2022 work session.
Council directed staff to return with additional information on the City's SDC funds so Council
could consider a monetary cap for the program. This memo provides an overview of the City's
SDC revenues and staff's recommendation for capping the waiver program. It then summarizes
the proposed program guidelines based on Council's feedback thus far. Staff requests Council's
direction on two questions.
System Development Charges (SDCs)
SDCs are charges imposed on development to accumulate capital needed to provide sufficient
capacity in infrastructure systems to accommodate the development. The City collects SDCs for
transportation, stormwater, and local wastewater. Waiving these fees reduces the funds available
to the City for capital projects in these areas, or for wastewater and stormwater, ratepayers bear
more of the construction costs for future projects. This waiver would not apply to those fees
collected by or on behalf of the Willamalane Park and Recreation District, the Springfield Utility
Board, and the Metropolitan Wastewater Management Commission.
Waiving SDCs can incentivize types of development that might not otherwise happen by
reducing the upfront costs for that development. Waiving SDCs for affordable homeownership
housing in Springfield can assist developers to make projects pencil at affordable levels for low -
Attachment 1, Page 1 of 5
income households, help projects develop more quickly, and incentivize the development of
more affordable homeownership housing.
PROGRAM CAP:
At its September 12, 2022 meeting Council decided the waiver program should have a
monetarily -based cap. This cap would end the program and trigger a check-in with Council to
determine if the program should continue, and if so, whether any adjustments are needed to
program guidelines.
The City collects SDCs for transportation, stormwater, and local wastewater. Below are the
City's revenues for SDCs over the last six fiscal years, broken out by each capital area. The
largest share of revenue for the last six years has been for local wastewater at between 71% to
79% of total annual revenue, and the smallest for stormwater (5% to 9%). The average yearly
total revenue between these funds over the last six years was $4,732,788. Revenues have been
notably higher during the last two years, and staff expects this trend to continue for at least the
next few years given residential projects such as Marcola Meadows.
System Development Charge Revenues
City of Springfield
$7,000,000
$6,000,000
$5,000,000 $4,442,703 $4,402,268
$4,000,000
$3,000,000
$2,000,000
$1,000,000
FY 2017 FY 2018
■ Local Wastewater
Potential Waiver -Eligible Project
$3,854,189
$3,570,358
FY 2019 FY 2020
❑ Transportation
$6,442,106
$5,685,101
FY 2021 FY 2022
■ Stormwater
Habitat for Humanity could potentially apply and be found eligible for SDC waivers for up to
ten additional units in its Fischer Village project within the next year. Based on SDCs Habitat
has paid for already permitted units in the project, staff has calculated an estimated breakdown
for how the project could impact SDC revenue in each of the City's three capital funds.
The estimate assumes a maximum of $100,000 would be waived for the ten remaining units in
the project. The graph below shows the estimated impact on each fund based on the percentage
breakdown of SDCs paid to each capital fund by Habitat. Approximately 5% of the total SDCs
Attachment 1, Page 2 of 5
collected for Habitat's already permitted units went to administration for the three capital funds.
The City does not collect a technology fee for SDCs.
Fischer Village
Estimated Impact of Waiver on SDC Funds
$42,120
42%
$4,762 $7,385
5% 7%
$45,733
46%
■ Stormwater ■ Local Wastewater ❑ Transportation ❑ Administration
Staff is aware of one other affordable home ownership project from developer Cultivate Inc.
which may be eligible to apply for an SDC waiver within the next year. That project is still in
early development stages, so a dollar estimate of SDCs for that project is unavailable.
Staff Recommendation
Staff recommends capping the waiver at $300,000 or three -years, whichever comes first.
Staff does not recommend that Council specify a waivable amount for each year within that
period (for example, limiting waivers to $100,000 per year). Staff would end the program and
check in with Council on how to move forward after reaching $300,000 in waived SDCs or
the end of three years, whichever is sooner. Waiving an average of $100,000 per year would
equate to 2% of the average yearly total SDC revenue based on the last six years.
Not specifying a total waivable amount per year would give developers flexibility on application
submission timing within the three years and would not significantly change the impact to the
City's SDC funds in the short run. Staff does not anticipate that the total waiver amount would
be utilized within a one-year period. However, if the City did approve $300,000 in SDC waivers
in one year, this would represent 8.4% of total SDCs collected during the lowest grossing
revenue year within the past six years (FY 2020). Additionally, the City has SDC reserves which
may be accessed for projects.
Attachment 1, Page 3 of 5
Question for Council: Should the City cap the waiver at $300,000 or three years,
whichever comes first?
WAIVER PROGRAM OVERVIEW:
Below is a summary of the current draft program guidelines (attached) which have been updated
to reflect direction from Council in its September 12, 2022 work session.
Applicant eligibility: Based on Council direction, the guidelines do not limit what entities are
eligible to apply for the waiver. Public agencies, non -profits, and other private developers
interested in building affordable homeownership housing would be eligible to apply.
Affordabilily period: The guidelines require housing units awarded a waiver to remain
affordable for low-income homebuyers for a period of rive years.
Household Income Level: Based on Council direction, waivers could be awarded to housing
units that would be sold to households earning no more than 80% of the area median income
(AMI).
2022 Income Limits
Household Size
80% AMI Income Limits
1
$44,600
2
$51,000
3
$57,350
4
$63,700
_5
$68,800
6
$73,900
7
$79,000
8
$84,100
Source: HUD CDBG Income Limits for Eugene -Springfield, OR MSA FY2022
Compliance Pathways: Based on Council direction, the draft program guidelines are structured
to allow applicants to qualify for the waiver under two compliance pathways (Option A —
Ongoing Affordability Requirement or Option B — Verified Affordable Price) to minimize
program administration. The requirements for these pathways are further detailed in the draft
program guidelines (Attachment 2), and examples of how an applicant might qualify for a
waiver under each pathway are detailed in the attached compliance pathways explanation
document (Attachment 3). Whether an application is approved under pathway Option A —
Ongoing Affordability Requirement or Option B — Verified Affordable Price would determine
the documentation and program requirements an applicant must meet, and whether the waiver
awarded would be a grant or forgivable loan.
Question for Council: Does Council have any further feedback on the draft program
guidelines as written?
NEXT STEPS:
Staff will return to Council with a draft resolution and updated draft guidelines based on Council
direction for consideration and adoption.
Attachment 1, Page 4 of 5
RECOMMENDED ACTION: Provide feedback on the following questions and direct staff to
return to Council with a draft resolution and guidelines for consideration and adoption.
- Should the City cap the waiver at $300,000 or three years, whichever comes first?
- Does Council have any further feedback on the draft program guidelines as written?
Attachment 1, Page 5 of 5
SDC Waiver for Affordable Homeownership Units
Program Guidelines
September 29, 2022 Draft
Purpose of SDC Waiver
To address the need for more affordable homeownership opportunities in Springfield, the City is
waiving System Development Charges (SDCs) to encourage the development and sale of
housing units affordable to low-income homebuyers with household incomes of no more than
80% of the area median income (AMI). The City will waive transportation, stormwater, and local
wastewater SDCs assessed during the permitting process. Metropolitan Wastewater Management
Commission and Willamalane Park and Recreation District SDCs are still in effect.
Public agencies, non-profit developers, and other, private developers may apply for the waiver.
The waiver is available under two compliance pathways. For applicants with sufficient legal
documentation in place to secure the housing unit's affordability for at least five years per
program guidelines, the SDC waiver will be provided through an agreement with the developer.
For applicants who do not secure the housing unit's affordability over time, the waiver is
structured as a forgivable loan with 20% forgiven after each year of the five (5) year affordability
period.
ProgramObjectives
• Reduce up -front construction costs for developers who will sell homes at an affordable
price to households with incomes of no more than 80% of the AMI.
• Encourage the creation of homes that will provide for affordable homeownership for at
least five years for income -qualified households (earning no more than 80% of AMI) by
providing the waiver as a grant.
• Facilitate housing stabilization and home equity for more income -qualified households by
offering the waiver as a 5 -year forgivable loan for housing units that are initially sold
affordably to a qualifying buyer, subject to owners' ongoing occupancy of home.
Definitions
For the purposes of this program, the following terms mean:
Affordable Price: An affordable price is a sales price that results in a monthly payment such
that at the time of sale, the qualified homebuyer will spend no more than 35% of their gross
household monthly income on housing costs. Housing costs include all payments made toward
the principal and interest of any mortgages on the unit, real property taxes, insurance, and any
condominium association, homeowners' association, or housing cooperative payments (utilities
are excluded).
Attachment 2, Page 1 of 4
Approved Affordability Requirement: An approved affordability requirement is a
nonpossessory real property interest (such as an affordable housing covenant or similar deed
restriction) that requires the housing unit be sold exclusively to qualified buyers for the
compliance period. The affordability requirement must be enforceable by the City of Springfield.
The City Attorney's Office will review documentation submitted by the applicant to determine if
it meets program requirements and qualifies as an approved affordability requirement.
Compliance Period: The compliance period is five (5) years. The period begins when the
certificate of occupancy is issued or when a qualified homebuyer closes on the property,
whichever is later; it ends five years from the date it began.
Income -Qualified Household: Those households whose income does not exceed 80% of the
area median income (AMI) for the Eugene -Springfield Metropolitan Statistical Area, based on
the Federal Department of Housing and Urban Development annual Community Development
Block Grant Income Limits, adjusted for household size. Income eligibility is determined by
household adjusted gross income from the prior year, as well as income anticipated to be
received during the coming twelve (12) month period. The gross income of all adults eighteen
(18) and over who will be living in the housing unit is used to determine household income. The
household's income may rise while they live in the property so long as the household was
income -eligible when they first occupied the unit.
Housing Unit: A housing unit is permanent housing that is available for sale to income -qualified
households. The unit can be any of the following uses as defined in the Springfield Development
Code: detached or attached single -unit dwelling; duplex; triplex or fourplex; townhouse; cottage
cluster housing; courtyard housing; single room occupancy; accessory dwelling unit; a
manufactured dwelling in a park; and multiple -unit housing. A housing unit also includes
residential housing provided by means of membership in a consumer housing cooperative as
defined in ORS 456.548.
Qualified Homebuyer: A qualified homebuyer is an individual belonging to an income -
qualified household, who will be on the title or own a membership in the housing cooperative
and occupy the housing unit as their primary residence.
Eli ibili
A housing unit receiving an SDC waiver under this program must meet the following eligibility
requirements:
• The housing unit must be located within the City of Springfield city limits.
• The housing unit must meet all applicable requirements of the Springfield Development
Code and Springfield Municipal Code.
• If the housing unit is part of a mixed -income development, only SDCs for units that meet
program guidelines may be waived.
• During the compliance period, the housing unit must remain occupied by a qualified
homebuyer. The qualified homebuyer may rent out space in the housing unit, so long as
they continue to occupy it as their primary residence.
2
Attachment 2, Page 2 of 4
• This waiver program expires on [Date], or when the City has waived $[Dollars] in SDCs
for this program, whichever is sooner. All building permit applications related to an
application for a SDC waiver under this program must be submitted on or before [Date]
for the waiver to be granted. The City may close the program at any time before that date
if the $[Dollars] waiver limit has been reached. Any applications that have not been
received approval before the program closes are ineligible for a waiver.
Compliance
The SDC waiver may be granted under two pathways. For housing units with an approved
affordability agreement, the SDC waiver will be a grant (Option A). For housing units without an
approved affordability agreement, the waiver is structured as a forgivable loan with 20%
forgiven after each year of the five (5) year compliance period (Option B).
The applicant must provide documentation to the City verifying that the housing unit was sold to
a qualified buyer at an affordable price. A housing unit for which the waiver is granted must be
sold in accordance with the program guidelines within one (1) year of the issuance of the
certificate of occupancy or it will be considered out of compliance and the full amount of waived
SDCs must be paid.
To remain compliant, the housing unit must continue to be occupied by a qualified buyer for the
entire compliance period.
Compliance Pathways
Option A — Ongoing Affordability Requirement
Applicants may submit documentation to the City to determine if the housing unit has in place an
approved affordability requirement. The City reserves the right to approve or deny an SDC
waiver under this pathway if it determines that the documentation provided is insufficient to
guarantee affordability per program guidelines.
The City may conduct regular monitoring for compliance and reserves the right to request
documentation to verify compliance with the approved affordability requirement and these
program guidelines.
Option B — Verified Affordable Price
For housing units that do not have an approved affordability requirement in place, the applicant
will be required to submit documentation required by the City to secure the unit's affordability
per program guidelines. The applicant will also be required to submit income and housing unit
sales price information to the City to verify program compliance before closing on the property
with a buyer. The City will verify that the housing unit is being sold at an affordable price to a
qualified homebuyer. During the compliance period, the qualified homebuyer must occupy the
housing unit as their primary residence.
The City will monitor that the qualified homebuyer continues to reside in the housing unit as
their primary residence. If a homeowner sells the property within the five (5) year compliance
Attachment 2, Page 3 of 4
period or no longer occupies it as their primary residence, a portion of the waived SDCs must be
paid by the owner. The amount due will be determined based on the time remaining in the
compliance period.
The City will conduct regular monitoring during the compliance period and reserves the right to
request documentation to verify the housing unit is occupied by a qualified homebuyer and all
other requirements of this program are met.
Other Terms
Approval: By accepting an application, the City is in no way committing to waiving any SDCs.
The City may deny a waiver or revoke waiver approval if program requirements or deadlines
outlined in these guidelines or other related program documentation are not met.
Additional Information: As an application is reviewed, it may become apparent that additional
information is needed from the applicant. The City may follow up with the applicant to clarify
information contained in their application, or to gather additional information before making a
decision. Applications deemed incomplete will not be reviewed.
Reconsideration: If an application has been denied and the applicant has new or additional
information they would like the City to consider, this may be submitted to the City for
reconsideration of a denial.
Program Changes: At any time, the City may propose such revisions, deletions, or amendments
to these guidelines as deemed necessary or desirable for the efficient implementation of the
waiver program, but no such revision, deletion, or amendment shall be effective until approved
by Council Resolution.
Application Confidentiality: Information considered confidential under Oregon law may be
separated for confidential handling, if specified "confidential" and delivered at the same time as
the rest of the submittal.
Arm's Length Transaction: The sale of any housing unit that has received a SDC waiver under
this program must be an arm's length transaction, which is one in which the buyer and seller act
independently and have no relationship to each other by blood, marriage, or unrelated business
dealings.
0
Attachment 2, Page 4 of 4
SDC Waiver for Affordable Homeownership Units
Explanation of Program Guideline Compliance Pathways
September 29, 2022
The System Development Charges (SDC) waiver is available under two compliance pathways
(see Program Guidelines for details). The compliance pathways are two different ways in which
an application could be approved for a waiver of City SDCs for a housing unit that will be sold
to a low-income homebuyer.
Option A — Ongoing Affordability Requirement
To be found eligible under the Option A pathway, the applicant must have an approved
affordability requirement in place. To be considered an approved affordability requirement, the
documentation must be reviewed by the City Attorney's Office and found to comply with
program guidelines.
Below are two examples of documentation an applicant might use to secure the affordability of a
housing unit in an on-going basis (for at least five years) and be approved for a SDC waiver
under Option A. Other forms of documentation that secure affordability over time may be
accepted by the City as an approved affordability requirement. Applications that are found
eligible under Option A will be awarded the SDC waiver as a grant.
Example 1: Conventional Home Ownership on a Land Trust
This example is based on the home ownership model used by DevNW.
The housing available for purchase uses a conventional home ownership model where the
homebuyer purchases the housing unit, generally with a typical mortgage. In order to make that
housing unit affordable to low-income homebuyers, it is located on land in a land trust, which is
owned by a non-profit.
In a land trust, the leasing entity retains ownership of the land, while the homeowner owns the
housing on the land. This separation of ownership allows for homes to be sold at lower prices
because the sale price for the home does not include the value of the land. Also, by owning the
land, the non-profit can make sure the housing unit is resold to low-income households.
Under this example, affordability of the housing unit is enforced with a recorded ground lease.
Homebuyers own their home and lease the underlying land from the non-profit. The ground lease
includes requirements affecting the transfer of the lease/sale of the home to ensure that a new
homeowner meets the required household income limits.
Document
Description
Ground Lease
The lease defines an income qualified person or household as one
whose income does not exceed 80% AMI, and includes a goal
that the lessee is a low-income buyer who would not be able to
purchase the home without the non -profit's assistance.
Attachment 3, Page 1 of 4
Example 2: Co -Operative Housing on a Land Trust
This example is based on Square One Village's C -Street Co -Op.
Homebuyers purchase a "share" in a housing co-operative (co-op). A co-op is a shared
homeownership structure where homebuyers collectively own and control the housing they live
in by purchasing a membership share in the co-op. The co-op housing is located on land in a land
trust like Example 1, allowing the homes to be sold at lower prices because the sale price for the
home does not include the value of the land.
Under this example, the affordability of the co-op is enforced through several recorded
documents. Collectively, these documents would be reviewed by the City Attorney as the
approved affordability agreement. Together, these documents create and reinforce a requirement
that the co-op housing be sold exclusively to households earning no more than 80% of the AMI
for a period of 99 years.
Document
The lease term is 99 years, creating long-term affordability. If
Articles of Incorporation
the non-profit sells the land, the terms state the lease would
remain binding and the land would be transferred to an entity
with similar affordable housing goals.
The lease requires the homeowner and/or approved household
co-op from being transferred except as provided in the co-
members to occupy the unit full-time (at least 8 months per
year).
It restricts transfer or sale of the home only to the non-profit or
of the area median income (AMI).
Ground Lease
an income -qualified household (80% AMI limit) with the non-
rofit's permission.
It requires the homeowner to agree to restrict the sale price of the
of the housing. The ground lease further enforces the income
house so it will be affordable to other low-income households in
the future.
Example 2: Co -Operative Housing on a Land Trust
This example is based on Square One Village's C -Street Co -Op.
Homebuyers purchase a "share" in a housing co-operative (co-op). A co-op is a shared
homeownership structure where homebuyers collectively own and control the housing they live
in by purchasing a membership share in the co-op. The co-op housing is located on land in a land
trust like Example 1, allowing the homes to be sold at lower prices because the sale price for the
home does not include the value of the land.
Under this example, the affordability of the co-op is enforced through several recorded
documents. Collectively, these documents would be reviewed by the City Attorney as the
approved affordability agreement. Together, these documents create and reinforce a requirement
that the co-op housing be sold exclusively to households earning no more than 80% of the AMI
for a period of 99 years.
Document
Description
Articles of Incorporation
This document incorporates the co-op with the State of Oregon
and includes a stated purpose of ownership and management of
permanently affordable housing. It prevents a membership in the
co-op from being transferred except as provided in the co-
operative bylaws and ground lease. The articles limit membership
in the co-op to households whose income does not exceed 80%
of the area median income (AMI).
Ground Lease
The housing co-op leases the land owned by the non-profit. The
ground lease includes terms that help to enforce the affordability
of the housing. The ground lease further enforces the income
level households must meet to live in the co-op and creates
permanent affordability through a 99 -year lease period.
Co-operative Bylaws
The bylaws govern how the co-op and its memberships are run.
To qualify for membership, a household income must not exceed
80% of the AMI and the household must occupy the house as
their full-time, permanent residence. To resell a membership,
2
Attachment 3, Page 2 of 4
the co-op Board must approve the sale, which must be to a
qualified household who meets the co-operative's income
restrictions.
Option B — Verified Affordable Price
To be found eligible under the Option B pathway, the applicant must submit documentation to
the City for verification that the unit is being sold to an income -qualified household at an
affordable price, as defined in the program guidelines.
The applicant must report the income of all household members ages 18 and over to the City and
provide documentation to verify that income (such as tax returns, benefit award letters, or
paycheck stubs). The City will determine if the buyer's household income is at or below 80%
AMI (income -qualified household), similar to the income verification process used for the
Springfield Home Ownership Program (SHOP) and the Springfield Home Repair Program.
The City will also require the applicant to submit the buyer's monthly housing costs (e.g.
payments for mortgage, taxes, insurance) for verification that these expenses do not exceed 35%
of the buyer's gross household monthly income. The City verifies that the sales price does not
result in a monthly payment for housing that is unaffordable for the buyer.
Below is an example of how a developer could meet the program requirements for approval of a
SDC waiver under Option B. Applications that are found eligible under Option B will be
awarded the SDC waiver as a loan forgivable over five years.
Example 3: Conventional Sale to Income -Qualified Buyer at Affordable Price
This example is based on figures from a Springfield Home Ownership Program (SHOP) loan
application.
Housing
Sale and Loan Terms
Sales Price
$220,000
Buyer's Down Payment
$13,800 around 6%)
Loan Amount
$206,200
Interest Rate
3.75%
Loan period
30 years
Housing Expense
Dollar Amount
Mortgage principal and interest
$955/month
Hazard Insurance
$38/month
Property Taxes
$192/month
Mortgage insurance
$144/month
Total monthly cost for housing
$1,329/month
For this house to meet the program's definition of affordable price, the buyer's monthly housing
costs of $1,329 could not exceed 35% of their gross household monthly income. This would
Attachment 3, Page 3 of 4
require the buyer to have a monthly household income of at least $3,797, which is an annual
household income of at least $45,564 ($3,797 x 12 months).
For the buyer to meet the program's definition of an income -qualified household, their annual
income could not exceed the program's income limit of 80% AMI based on household size. The
2022 80% AMI income limit for a household of one is $44,600, so the buyer would need to have
a household size of at least two to meet both the affordable price and income -qualified
household program requirements.
0
Attachment 3, Page 4 of 4
SDC Waiver for
Affordable Home Ownership
WAIVER
City SDCs: stormwater, local wastewater, transportation
Incentivize development
BACKGROUND
May- Direction to design program
September- Review of draft guidelines
Direction- Return with SDC information for cap
Attachment 4, Page 1 of 6
SPRINGFIELD
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Program Guidelines Overview
• Home ownership only
• Any developer can apply
•Affordable for 5 years
• Households at or below 80% AMI
*Two compliance pathways
Attachment 4, Page 2 of 6
SPRINGFIELD
,A �«
Household Size
80% AMI Income
Limits (2022)
$7,000,000
$6,000,000
$5,000,000
$4,000,000
$3,000,000
$2,000,000
$1,000,000
System Development Charge Revenues
City of Springfield
$49442,703 $414029268
$3,854,189
FY 2017 FY 2018
■ Local Wastewater
FY 2019
$3,570,358
FY 2020
$5,685,101
FY 2021
❑ Transportation ❑ Storrawater
Attachment 4, Page 3 of 6
11,11,11W I
SPRINGF
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$6,442,106
FY 2022
Fischer Village Example
Assumes up to $100,000
in SDCs could be waived
10 additional units
Based on percentage
breakdown by fund for
already permitted units
Fischer Village
Estimated Impact of Waiver on SDC Funds
$4,762 $7,385
5% 7%
$42,120
42%
❑ Stormwater
Attachment 4, Page 4 of 6 El Transportation
SPRINGFI LA
k EGON
$45,733
46%
■ Local Wastewater
❑ Administration
Cap- Staff Recommendation
$300,,000 or three years, whichever is sooner
Do not specify aper-year maximum within 3 years
Stop program when $300,000 or 3 years reached
Council Check -In: Continue program? Adjustments needed?
Attachment 4, Page 5 of 6
SPRINGFIELD,..
Questions for Council
Should the City cap the waiver at $300,000
or three -years, whichever comes first?
Does Council have any further feedback on
the draft program guidelines as written?
Attachment 4, Page 6 of 6
SPRINGFIELD
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