Loading...
HomeMy WebLinkAboutItem 02 Housing Programs UpdateAGENDA ITEM SUMMARY Meeting Date: 10/9/2023 Meeting Type: Work Session Staff Contact/Dept.: Katie Carroll/DPW Erin Fifield/DPW Staff Phone No: 541-726-3660 Estimated Time: 20 Minutes S P R I N G F I E L D C I T Y C O U N C I L Council Goals: Promote and Enhance our Hometown Feel while Focusing on Livability and Environmental Quality ITEM TITLE: HOUSING PROGRAMS UPDATE ACTION REQUESTED: For information and discussion. Give staff direction on questions related to the Overnight Parking Program. ISSUE STATEMENT: The City has undertaken numerous new and ongoing actions in recent years to address the supply and affordability of housing in Springfield across the housing continuum. These efforts are documented in the Springfield Housing Strategy handout. This item is an update to Council on the City’s housing-related efforts. ATTACHMENTS: 1: Council Briefing Memo – Housing Programs Update 2: Housing Strategy Handout (updated September 2023) 3: Slides – Housing Programs Update DISCUSSION/ FINANCIAL IMPACT: Following extensive analysis, Council developed the City’s Housing Strategy in 2017. Since then, the City has made progress on action items, identified additional efforts, and received one-time funds to address housing need in Springfield. Staff provided a comprehensive update to Council in October 2022 on the City’s Housing work and is returning with updates on the City’s housing actions and programs. The City’s housing work has been focused in the following areas: • Sheltering • Affordable Housing Development • Renter Assistance • Home Ownership Assistance • Housing Diversity and Production Over the next several years, the City will undertake more extensive housing planning through the Eugene-Springfield Consolidated Plan, Housing Capacity Analysis, and Housing Production Strategy. M E M O R A N D U M City of Springfield Date: 10/9/2023 To: Nancy Newton COUNCIL From: Katie Carroll, Housing Analyst Erin Fifield, Community Development Analyst Jeff Paschall, Community Development Director BRIEFING Subject: Housing Programs Update MEMORANDUM ISSUE: The City has undertaken numerous new and ongoing actions in recent years to address the supply and affordability of housing in Springfield across the housing continuum. These efforts are documented in the Springfield Housing Strategy handout. This item is an update to Council on the City’s housing-related efforts. COUNCIL GOALS/ MANDATE: Promote and Enhance our Hometown Feel While Focusing on Livability and Environmental Quality BACKGROUND: Through multiple work sessions held between 2016 and 2017, Council identified actions it was interested in pursuing to help address the supply and affordability of housing across the housing continuum in Springfield. Since creating the strategy, the City has made progress on action items, identified additional efforts to pursue, and received one-time funds, including an influx of State and federal dollars related to the COVID pandemic, which have prompted additional housing-related work. Staff provided an update to Council on the Housing Strategy at its October 24, 2022 work session, including sharing an updated Housing Strategy Handout. The purpose of this work session is to provide a brief update on the City’s existing housing-related work and to share a copy of the Housing Strategy Handout for 2023 which reflects more recent data and the City’s current efforts (Attachment 2). Staff is seeking direction on one question related to the City’s Overnight Parking Program. Upcoming Housing Planning To comply with State and federal requirements, the City will be undertaking more extensive housing planning work in the upcoming years. Staff will return to Council for additional direction during those planning processes. • Eugene-Springfield Consolidated Plan: Springfield is required to complete a new Consolidated Plan every five years to receive its allocation of federal Housing and Urban Development (HUD) funds, including Community Development Block Grant (CDBG). Springfield also participates in the Eugene-Springfield HOME consortium to receive HOME Investment Partnership Program funds. The Consolidated Plan presents a strategic vision for housing and community development activities that are identified through an analysis of community needs as well as a community outreach process. The Plan identifies housing, homeless, and community development needs and trends, focusing on the priority needs for low- and moderate-income households in the community for the next five years. Springfield will undertake this process in partnership with Eugene as a HUD consortium. Staff anticipates beginning work on the Plan in Attachment 1 Page 1 of 9 MEMORANDUM Page 2 2024, with adoption of the Plan to occur Spring 2025. • Housing Capacity Analysis (HCA): This process, formerly known as the Housing Needs Analysis (HNA) will require the City to assess current and future (for a 20-year period) housing demand in Springfield. The analysis looks at anticipated demand for housing by type and density range and compares that to the city’s supply of buildable residential land. The City will need to adopt policies to address any disparities between housing demand and land supply to ensure an adequate supply of land. Under the State-adopted timeline, Springfield is scheduled to complete the HCA by December 2025. However, based on changes in State law adopted during the 2023 session, Department of Land Conservation and Development (DLCD) staff have shared that this completion deadline will likely be pushed back to ensure compliance with new rules. Springfield staff are seeking clarity on the revised timeline for completion. • Housing Production Strategy (HPS): The HPS will require the City to look further at housing needs in Springfield identified through the HCA and adopt measures and policies to promote the development of housing to address that need. This may include actions such as code changes, financial incentives, or tax exemptions. The HPS must be adopted within one year of completing the HCA. HOUSING ACTIONS AND PROGRAMS UPDATE: In this memo and the attached handout, the City’s housing-related efforts and programs are organized into categories by the type of assistance (Sheltering, Affordable Housing Development, Renter Assistance, Homeownership Assistance, and Housing Diversity and Production). The focus on the handout is to highlight the City’s efforts and programs, recognizing that this is just one piece and that many other agencies, developers, private organizations and individuals also play a significant role in addressing the housing needs in our community. In this memo, recent updates to the City’s efforts are listed under a description of each effort or program. Sheltering The City recognizes there is a need for assistance all along the housing continuum, including services and sheltering for people who are unhoused. Although these efforts do not directly address housing needs, shelter provides interim accommodation which may increase stability and contribute towards helping individuals becoming housed. The City has multiple legal pathways to permit sheltering in Springfield in sanctioned locations. House Bill 2006 Sites In 2021, the Oregon legislature adopted HB 2006, which requires cities to approve applications for siting of emergency shelter outside of land use code so long as certain requirements are met. The City reviews and approves these emergency shelter applications as needed at the Community Development Director level. • An emergency shelter site run by Mainstream Housing Inc. was approved in October 2022. The site can include up to 15 pallet shelter sleeping units and two restrooms. Mainstream uses the site to provide shelter and case management for unhoused families or individuals with intellectual or developmental disabilities. • An emergency shelter site run by Catholic Community Services (CCS) was approved in July 2023. The site can include up to four pallet shelter sleeping units, one tiny house, one pallet bathroom, and four porta potties. CCS provides shelter and case management for unhoused families. This shelter replaces the previous configuration of Conestoga huts and tiny houses at the G-Street Oasis site that were part of the Overnight Parking Program . Attachment 1 Page 2 of 9 MEMORANDUM Page 3 Overnight Parking Program The Overnight Parking Program serves the community’s unhoused residents by allowing religious or social institutions and industrial sites to host individuals and families in their parking lots as a means of temporary emergency shelter under Springfield Municipal Code Section 8.012. Sites may host up to three vehicles, campers, or trailers. The City provides $37,000 in general fund support annually to local non-profits to pay for port-a-potties and program administration costs. Sanipac donates trash collection services. Currently, Carry It Forward oversees sites serving adults, and Catholic Community Services oversees sites serving families with children. Challenges to the program The Overnight Parking Program is facing challenges which have reduced its effectiveness, including few host sites, municipal code requirements, and limited case management for adult only sites. As of the end of August 2023, the parking program has four sites which were serving 11 adults individually, and 1 family (1 adult, 1 child). Currently one church is participating CCS’ program (not part of the G-Street Oasis site) and CIF manages three sites. The City’s program agent for adult-only sites, Carry It Forward (CIF), has identified challenges which have impacted its ability to continue operating the Overnight Parking Program effectively. In 2023, two of the five sites serving adults ended their participation in the program. CIF has signed a contract to continue operating the program for a limited duration through December 2023; however, without changes to the program, CIF has indicated they made need to stop serving as the City’s program agent for adult-only sites. • Need for regulatory changes o Allow shelters in addition to vehicles: The Municipal Code prevented Catholic Community Services (CCS) from being able to use County ALL IN funding to upgrade existing Conestoga hut shelters to pallet shelters to better meet families’ needs. The City has interpreted the definition of “vehicle” in the code to allow Conestoga huts under the Parking Program but did not extend the interpretation to include pallet shelters. In order to move forward with implementing its upgraded shelters, CCS applied to the City to have its 1025/1175 G Street Parking Program site approved as an emergency shelter site as allowed under House Bill 2006 in June 2023. This site is planned to serve four families with children, with one host on site. o Allow additional host sites: CIF shared that it does not believe the program will be able add new sites under current code allowances, and that the current number of sites does not meet Springfield’s needs. CIF has not been successful in enlisting additional church participation and said a barrier to social service organizations participating is that many do not own their own buildings. Over the years, staff have received inquiries from property owners interested in hosting a site through the Overnight Parking Program who were ineligible to participate because their property was zoned community commercial, for example, which is not allowed for the Overnight Parking Program under the municipal code. CIF has requested that the City consider expanding the properties that are eligible for participation in the program to include commercial and other sites. • Need for case management: Churches hosting adult-only program sites have shared they want case management services for program participants. Churches have also requested that CIF run background checks and respond to neighbor complaints. CIF is interested in providing these services to assist participants in addressing their needs, finding housing, and moving on from the program. CIF has shared that the current City contract of $22,000 annually is insufficient to cover their costs for providing these Attachment 1 Page 3 of 9 MEMORANDUM Page 4 services, and that they would need an estimated $32,000 to $36,000 additional funding for case management, making their total need a minimum of $54,000 per year. CCS already receives funding from various sources, including the City and Lane County, to support case management for the OASIS program, including Overnight Parking Program participants. As mentioned above, the agent serving the Overnight Parking Program’s adults-only sites has indicated they may need to stop running the program without changes. Question: Does Council want the Overnight Parking Program to continue for adults-only sites? If so: • Does Council want case management to be included for adult-only sites (similar to OASIS family sites)? o Does Council want to increase the budget for the program to fund case management for adults-only sites? o Should Springfield advocate for Lane County funding to serve as case management for parking program participants? • Does Council want to consider changing the municipal code to address types of shelters allowed and sites permitted to host? Recreational Vehicle (RV) Occupancy on Private Property Beginning in October 2020, the City has temporarily allowed the occupancy of RVs on private property (outside of manufactured dwelling parks, campgrounds, and the Overnight Parking Program) as a temporary housing measure in response to the Holiday Farm fire, COVID, and the need for additional affordable temporary housing options in the community. RV occupants and property owners are required to follow a set of occupancy guidelines. This measure increases the temporary housing options available in the community. • At its December 5, 2022 meeting, Council adopted updated RV guidelines requiring property owners to register with the City to host an RV. As part of the registration process, property owners are asked for contact information for the RV occupant so City staff can follow up with a survey on the occupant’s experience. • Council was provided with an update on the temporary RV allowance in a Communication Packet Memo dated October 2, 2023. Staff will return to Council when data on RV violations is available. Ann’s Heart The City received $620,000 in one-time funding through the state legislature’s American Rescue Plan Act (ARPA) allocations to support Ann’s Heart, a local non-profit that aims to provide shelter for up to 6 unhoused women in Springfield, to buy a house. Council recently had a work session on September 18, 2023 to discuss the City Manager’s determination that the operations plan submitted by Ann’s Heart is insufficient, and inconsistent with Council direction. No formal action has taken place yet on next steps. Affordable Housing Development There is significant need for more housing that is affordable to low-income households in Springfield. Several of the City’s housing efforts focus on incentivizing and funding the development of income-qualified housing to serve these households. Income-Qualified Affordable Housing Development As part of the Eugene-Springfield HOME Consortium, Springfield has federal HOME funds Attachment 1 Page 4 of 9 MEMORANDUM Page 5 available to increase the availability of decent, affordable rental housing for low and very low- income households. The City also received one-time funds from the State during the COVID pandemic to address the need for income-qualified housing development. • Cornerstone Community Housing: Cornerstone has proposed building 39 new units of affordable housing at 1875 16th Street. The development includes a mix of unit sizes and would serve households earning no more than 60% of area median income, including seniors and people with disabilities. In 2023, Cornerstone received a tentative HOME funding award of $2,054,013 for development costs from the Eugene-Springfield HOME Consortium Governing Board, as well as $578,000 in state general funds for gap funding from the City Council. • St. Vincent de Paul (SVDP): In 2021, pursuant to HB 5006, OHCS was appropriated $3 million from the general fund for the purposes of developing a manufactured dwelling park in Springfield. The City of Springfield, Representative Lively and SVDP advocated for these funds, acknowledging the need for housing for low-income residents and the risk of displacement facing some residents of Springfield’s manufactured dwelling parks. The City received the funds in Fall 2022 and awarded them to SVDP in June 2023. Per the award, SVDP will be required to create a manufactured dwelling park in Springfield with between 40 and 100 homes, at least 51% of which must be made available to low to moderate income households. • Habitat for Humanity: The City was awarded $1 million in State general funds during the 2021 legislative session. Council directed staff to allocate $300,000 of that funding to Habitat’s affordable home ownership project in Springfield, Fischer Village. The funding was awarded to Habitat in May 2023 as a forgivable loan to fund construction of two homes at Fischer Village. Land Acquisition for Affordable Housing Finding and acquiring land appropriate for multi-unit housing development in Springfield presents a significant barrier for affordable housing developers. In response, the City has undertaken efforts to identify and acquire land for affordable housing developments using its Community Development Block Grant (CDBG) funds and one-time state funding made available through Lane County. The City can use these funds to buy land directly and/or assist developers in purchasing land for affordable housing. • Lane County Tax-Foreclosed Lots: In 2023 the City became aware of and conducted due diligence on two small residential County-owned tax foreclosed properties which the City could obtain for a nominal fee for purposes of developing affordable housing. Council directed staff to request transfer of the properties from the County in June, and the City’s proposal was approved by the Board of County Commissioners August 29, 2023. Once the deeds are signed and recorded and the City pays the transfer fees, staff can begin working on details for the competitive processes to award the properties to developers. • Funding for Land Acquisition: In June 2023, Council directed the City Manager to negotiate and execute an Intergovernmental Agreement with Lane County to receive $1.5 million dollars in ARPA funds, originally awarded to the County, for land acquisition for affordable housing. The City has received the funds and staff is working with the City Manager’s Office on making the funds available to purchase land and/or award to developers as forgivable loans. • Staff continues looking for land to purchase that is suitable for development as affordable housing. Development Fee Waiver for Non-profit Affordable Housing Providers The City continues to waive land use application fees for affordable housing units developed by Attachment 1 Page 5 of 9 MEMORANDUM Page 6 non-profits to help reduce costs for adding new affordable housing (Springfield Development Code 2.1.135). Rental housing for households with incomes below 60% of the area median income (AMI), and homeownership housing for households with incomes below 80% of the area median income are eligible for the waiver. • Recently, the City waived over $6,500 in fees for the platting of Habitat for Humanity’s Fischer Village. Low-Income Rental Housing Property Tax Exemption (LIRHPTE) The LIRHPTE program is a tool developers can access to help make a project pencil when rents are restricted to low-income households. The program allows property taxes to be exempted for twenty years for low-income rental housing units that serve households with incomes at or below 60% of the area median income. The City reinstated the property tax exemption in 2018 as part of its efforts to contribute to income-qualified housing development. • Myrtlewood Apartments: In 2019, Council approved an exemption for the Myrtlewood Apartments, a 35-unit low-income housing development operated by St. Vincent de Paul. System Development Charges (SDC) Waiver for Affordable Homeownership In Spring 2022, Council directed staff to design a program to waive SDCs for developers creating housing units that are sold affordably to low-income buyers. The waiver reduces the cost of development, allowing the developer to pass those savings along to a homebuyer. This waiver can incentivize development of affordable housing for homeownership that might not otherwise be built in Springfield. Council adopted the program as a pilot in December 2022; the program will end after 3 years or $300,000 has been waived, whichever comes first. The City began accepting applications in January 2023 and has approved two applications so far. • Habitat for Humanity: The City approved SDC waivers totaling $21,621 for two homes at Habitat’s Fischer Village development. • Archer Development LLC: The City approved SDC waivers for three homes at a four- home cottage cluster development. The development is going through review, so the total waiver amount has not yet been calculated. Renter Assistance Impacts from the coronavirus pandemic contributed to an increase in housing instability and created a need for additional rent assistance in the community. The City allocated one-time CDBG coronavirus relief (CDBG-CV) funds that were available to meet a variety of needs in the community, most notably emergency household assistance which were expended in FY2021 and FY2023. Springfield Eugene Tenants Association (SETA) Council awarded one-time funds to SETA to help fund staff positions in support of the non- profit’s tenant hotline that assists, educates, and empowers renters on housing rights issues. SETA has continued to support residents of Springfield since its inception; these funds are anticipated to be used in FY24. Homeownership Assistance Home ownership provides housing security and an opportunity for households to build equity. The City’s home ownership strategies provide assistance to both prospective and current low- income homeowners. Springfield Home Repair Program Attachment 1 Page 6 of 9 MEMORANDUM Page 7 The Home Repair program assists Springfield’s very low-income homeowners (under 50% AMI) with home repairs that create a safety hazard or a threat to the health of the occupants. Qualifying households can receive assistance to help with qualifying repairs. In FY 2020, the City raised the assistance limit per household from $5,000 to $10,000 over a five-year period. This CDBG-funded program preserves existing housing in Springfield while enhancing health, safety, and accessibility for homeowners. • The City is conducting outreach by mailing program information to potentially eligible addresses in areas of Springfield with a high share of low-income households. So far, the City has mailed information to over 400 potentially eligible homeowners and accepted several applications from homeowners who received the mailer. • In FY23, the Home Repair Program assisted 71 very low-income households with a home repair ranging from the replacement of a roof to installing grab bars in a bathroom or an accessibility ramp off the front steps. Over 80% (58) of these homeowners are elderly. Springfield Homeownership Assistance Program (SHOP) SHOP provides financial assistance to first-time low-income homebuyers (under 80% AMI) in the form of an interest-free loan from the City’s CDBG funds. In Fall 2022, the City made changes to the program to make it more flexible for low-income buyers after several years during which a SHOP loan was not issued. The City expanded the types of home purchase expenses for which program funds can be used and increased funds available per household from $7,000 to $25,000. The City is partnering with DevNW, a local non-profit experienced in assisting first-time homebuyers, to help administer the program. • Three (3) loans have been granted over the past year o Success Story “Working with DevNW was an amazing experience and a valuable partnership in helping to secure affordable housing for a family in need. The down payment assistance made it possible for my borrower to qualify for a mortgage loan which was instrumental in taking a family from homelessness to homeownership. The difference homeownership has made for this family will have a lasting impact, hopefully for generations to come.” – Amy Bradley at CMG Homes Loans. • City staff recently connected a local developer interested in building affordable homeownership housing with DevNW and its network of potential buyers. Staff is exploring how to make more connections between developers and DevNW, including the potential for pairing the City’s SDC Waiver for Affordable Homeownership with SHOP awards. Housing Diversity and Production Springfield has a need for more housing at all levels. Several of the City’s housing strategies are focused on increasing the diversity and overall supply of housing in the community to serve households at a variety of income levels and phases of life. Springfield Development Code Update Project In June 2022, Council adopted the updated Springfield Development Code in order to support efficient, timely, and clear development review. The updated code also implements State requirements to allow middle housing in land use districts that allow single-unit detached houses. The new development code aims to support housing affordability in Springfield by making the development process more predictable, lowering development costs through more streamlined application processes for housing applications, and allowing for a more diverse housing stock. The development code changes allow most residential housing types (duplexes, triplexes, Attachment 1 Page 7 of 9 MEMORANDUM Page 8 fourplexes, cottage clusters, and townhouses) in all of Springfield’s residential zones. However, development of new single-unit dwellings is no longer allowed in the higher density residential zones (R2 and R3) in order to protect the limited supply of higher density land for multiple unit housing. These changes facilitate the development of greater density and variety in housing types. Accessory Dwelling Units (ADUs) ADUs provide an opportunity to add accessible and affordable housing to new and existing neighborhoods, and to accommodate changes in household composition over time. To encourage their development, the City has waived system development charges for ADUs since July 2017. Most recently, in June 2022, Council extended the SDC waiver for ADUs for an additional five years through June 2027. The City also revised the development code, allowing ADUs to be built with townhouses and cottage clusters in addition to detached single-unit dwellings. • Since 2018 when it began tracking ADUs as a dwelling type, the City has issued building permits for 54 ADUs (through July 2023). The City issued building permits for fewer ADUs in 2022 (10 permits) than 2021 (18 permits). • During FY23, the City waived approximately $64,500 in City SDCs for ADUs. This was up from FY22, when the City waived approximately $54,600 in City SDCs for ADUs. Housing Diversity Tax Exemption The City is working to design a program to promote the development of more diverse housing in Springfield by helping to make multi-unit housing development financially feasible through a tax exemption. If implemented, the program would allow property taxes to be exempted for a number of years for new multi-unit housing developments in designated areas of Springfield along transit corridors. If implemented, the exemption would replace the Vertical Housing Tax Exemption (VHTE) in the Downtown area. • Council will provide additional direction to staff on the tax exemption in its October 23, 2023 work session. Filbert Grove The City was directed $445,000 in legislative funding by Representative Lively (through state ARPA funds) for Manufactured Home Park preservation. The 2022 Oregon Legislature allocated $445,000 in American Rescue Plan Act (ARPA) funding to the City of Springfield, in consultation with Representative John Lively, for purpose of preserving a manufactured dwelling park. These funds were allocated in order to assist the Filbert Grove Cooperative Manufactured Dwelling Park, née Patrician Mobile Home Park, in the permanent financing of becoming a resident-owned manufactured dwelling park. The City used the funds to provide a forgivable no-interest ten-year loan to Filbert Grove Cooperative to assist in the Cooperative’s permanent financing of the Filbert Grove real property to ensure its preservation as a manufactured dwelling park. In May 2023, Filbert Grove officially closed on its permanent financing. Filbert Grove is a 55 and older park and includes 82 manufactured dwellings. OTHER HOUSING HIGHLIGHTS Springfield has continued to see a record number of housing development applications. • When completed, Marcola Meadows will add approximately 446 single-unit homes and 312 apartment unit homes to Springfield’s housing inventory. • As of August 2023, the City had or was about to issue building permits for 495 apartment units this year, with at least another 39 proposed that are likely to be issued before year-end. This is a notably high figure for a one-year period. Attachment 1 Page 8 of 9 MEMORANDUM Page 9 • The Building Safety Section has recently pre-approved two house plans which can be downloaded for free. One is small enough to qualify as an accessory dwelling unit. RECOMMENDED ACTION: Give staff direction on the following questions- Does Council want the Overnight Parking Program to continue for adults-only sites? If so: • Does Council want case management to be included for adult-only sites (similar to OASIS family sites)? o Does Council want to increase the budget for the program to fund case management for adults-only sites? o Should Springfield advocate for Lane County funding to serve as case management for parking program participants? • Does Council want to consider changing the municipal code to address types of shelters allowed and sites permitted to host? Attachment 1 Page 9 of 9 Sheltering Allow for temporary sheltering options. Overnight Parking Program Allow religious and social institutions and industrial sites to host up to 3 vehicles, campers, or trailers. Provide City general funds to support non-profits running the parking program. STATUS: ONGOING RVs as Temporary Housing Temporarily allow RVs to be occupied on private property to address regional shortage of affordable temporary housing options. STATUS: ONGOING Shelter Sites Process emergency shelter site requests from local agencies. STATUS: ONGOING Renter Assistance Provide assistance to support low-income renters in Springfield. Springfield Eugene Tenants Association (SETA) Award one-time CDBG coronavirus relief funds to SETA to support their tenant hotline to assist, educate, and empower renters on housing rights issues. STATUS: FUNDED FOR 2024 Housing Diversity & Production Increase the supply and diversity of housing at all levels. Springfield Development Code Update Updated Development Code to support efficient, timely, clear development review. Implement State middle housing laws to allow more diverse housing types in residential zones. STATUS: COMPLETED SDC Waiver for ADUs Waive system development charges (SDCs) for Accessory Dwelling Units (ADUs). STATUS: WAIVED THROUGH JUNE 2027 Housing Diversity Tax Exemption Consider multi-year waiver of property taxes for multiple unit housing to incentivize development in some areas of Springfield. STATUS: IN PROGRESS Affordable Housing Development Incentivize and fund development of income-qualified housing. Income-Qualified Affordable Housing Development Award federal HOME funds and other one-time funds toward new Affordable Housing projects. STATUS: ONGOING Springfield Land Acquisition Program Identify land suitable for Affordable Housing development and use federal funds to acquire or help developers acquire land. STATUS: ONGOING Development Fee Waiver for Non-profit Affordable Housing Providers Waive development fees for homeownership and rental Affordable Housing developed by non-profits. STATUS: ONGOING Low-Income Rental Housing Property Tax Exemption Allow property taxes to be exempted for 20 years for income-qualified rental housing. STATUS: ONGOING SDC Waiver for Homeownership Waive system development charges (SDCs) for housing that is sold affordably to low-income homebuyers. STATUS: WAIVED THROUGH 2025 Home Ownership Assistance Provide assistance to prospective and current low-income homeowners. Home Repair Program Provide up to $10,000 over 5 years in financial assistance with CDBG funds (as a grant) to help very low-income homeowners with home repairs that address health, safety, or accessibility needs. STATUS: ONGOING Springfield Home Ownership Program Partner with DevNW to provide up to $25,000 in financial assistance with CDBG funds (as an interest-free loan) to help first-time low-income homebuyers purchase a home. STATUS: ONGOING In 2016, the Springfield City Council directed staff to evaluate housing needs and to build on strategies to both increase the supply of housing and the accessibility of housing across the housing continuum. The result is the Springfield Housing Strategy, which includes the actions the City is taking to address the community’s housing needs. We want Springfield to be a welcoming community for all people in every phase of life, whether it’s just starting out with a new family or downsizing to a smaller home. Springfield Housing Strategy UPDATE FALL 2023 Attachment 2 Page 1 of 2 COMMUNITY DEVELOPMENT DIVISION | Development & Public Works Dept. City of Springfield, Oregon | bit.ly/spfldhousing SPRINGFIELDOR CITYOFSPRINGFIELDOREGON SPFLDOREGON CITY-OF-SPRINGFIELD Springfield Housing Snapshot UPDATE FALL 2023 Affordable Housing is housing priced so that a household at or below the median income pays no more than 30% of its total gross income on housing and utilities.9 What is housing affordability? How is that different from Affordable Housing? Housing is considered affordable if a household spends less than 30% of its gross income on housing-related costs, including utilities.4 Housing affordability is a term applicable to households at a range of incomes. Springfield’s housing market Housing mix & development 1.8%SPRINGFIELD Vacancy Rate 4.1%EUGENE Vacancy Rate 7.8 %OREGON Vacancy Rate Housing is hard to find in Springfield, due to a very low vacancy rate.1 Springfield’s housing inventory is aging. of housing in Springfield is more than 20 yrs. old.1 86% 57% Detached single-unit 15.7% Multi-unit (5+ units) 13.5% Attached single-unit or duplex 6.9% Mobile home 6.3% 3-4 units 0.6% Boat, RV, van, etc. 57% Detached single-unit 15.7% Multi-unit (5+ units) 13.5% Attached single-unit or duplex 6.9% Mobile home 6.3% 3-4 units 0.6% Boat, RV, van, etc. Springfield’s housing mix1 Income & affordability Springfield households Households are cost burdened if they pay 30% or more of income on housing. $0 $10000 $20000 $30000 $40000 $50000 $60000 $70000 $54,503 Spd. median $70,084 Oregon median $40,664 Spd. renters $72,782 Spd. homeowners $0 $10000 $20000 $30000 $40000 $50000 $60000 $70000 $54,503 Spd. median $70,084 Oregon median $40,664 Spd. renters $72,782 Spd. homeowners 53.5% are Homeowners 25% of Homeowners are Cost Burdened 46% of Renters are Cost Burdened 46.5% are Renters 53.5%53.5% are homeownersare homeowners11 25%25% of homeowners of homeowners are cost burdenedare cost burdened88 46.5%46.5% are rentersare renters11 46%46% of renters are cost burdened88 Springfield overall POVERTY Rate 16% 1 Poverty among Springfield’s RENTERS 19.9% 1 Poverty among Springfield’s HOMEOWNERS 5.3% 1 Springfield UNHOUSED residents 1,014 people6 TENANT-BASED VOUCHERS in Springfield 994 households 7 WAIT LIST for HOUSING CHOICE VOUCHERS 3,094 households 7 in Lane County SOURCES: 1 US Census ACS 5-year (2021), 2 EcoNW for OHCS (2021), 3 RMLS, 4 HUD, 5 City of Springfield (2023), 6 Lane County (2022), 7 Homes for Good (Aug. 2023), 8 CHAS (2015-2019), 9 Eugene-Springfield Metro Plan. Fair Market Rent in Springfield: 4 Year 1-Bedroom 2-Bedroom 2023 $1,025 $1,349 2022 $958 $1,254 2021 $917 $1,201 Gross monthly rent paid in Springfield in 2021.1 Springfield needs an estimated 8,258 new housing units over the next 2 decades to address existing underproduction and projected future need.2 The average home sale price in Springfield has increased.3 Year Average home sale price 2022 $434,900 2021 $382,400 2020 $334,800 2019 $287,300 2018 $268,300 Inventory for home sales is low in Lane County.3 Inventory is based on how long it would take to sell the entire stock of homes at the current sales pace. MONTHS to sell housing stock0 1 2 3 4 5 6 7 8 20222021202020192018201720162015201420132012Less than 6 months is a sellers market. The City issued building permits for 1,127 new dwellings over the last 5 years.5 050100150200250300350400 616 Single-unit 315 Multi-unit 102 Manufactured 45 Duplex 49 ADU 20222021202020192018NUMBER of building permitsGRAND TOTAL from 2018-2022: At some point in 2022. 0 10 20 30 40 50 1.9 % pay $2,000-$2,499 10.6 % pay $1,500-$1,999 41.5% pay $1,000-$1,499 41.3% pay $500-$999 4.7% pay under $500 0 10 20 30 40 50 1.9 % pay $2,000-$2,499 10.6 % pay $1,500-$1,999 41.5% pay $1,000-$1,499 41.3% pay $500-$999 4.7% pay under $500 Median monthly rent is $1,036.PERCENTAGE paying various rent amountsMedian household income1 050100150200250300350400 616 Single-unit 315 Multi-unit 102 Manufactured 45 Duplex 49 ADU 20222021202020192018 Attachment 2 Page 2 of 2 Housing Programs Update October 2023 Attachment 3 Page 1 of 9 Housing Data Springfield Average Home Sale Price Springfield Issued Building Permits Springfield Household Cost Burdening Attachment 3 Page 2 of 9 Sheltering Seventh-Day Adventist Overnight Parking Program Site Mainstream Housing Emergency Shelter Site (approved under House Bill 2006) Attachment 3 Page 3 of 9 Affordable Housing Development St. Vincent de Paul's Society of Lane County, Inc's "The Myrtlewood" – Received LIRHPTE Homes for Good's "Hayden Bridge Landing"– Received HOME and CDBG funds Attachment 3 Page 4 of 9 Affordable Housing Development Cornerstone's "Springfield Apartments" – Received HOME funds and gap financing Attachment 3 Page 5 of 9 Affordable Housing Development S. 52nd County tax-foreclosed site –City to take ownership for affordable housing Habitat for Humanity of Central Lane's "Fischer Village"–Received construction funding, SDC waiver, development fee waiver Attachment 3 Page 6 of 9 Renter and Homeownership Assistance SETA –Provide funding for the tenant hotline to assist, educate, and empower renters on housing rights issues DevNW –Partner with DevNW to provide financial assistance to help first-time low-income homebuyers purchase a home Attachment 3 Page 7 of 9 Housing Diversity & Production Cottage Cluster –First cottage cluster in Springfield (developed by Tim Olguin) Attachment 3 Page 8 of 9 Questions for Council Does Council want the Overnight Parking Program to continue for adults-only sites? If so: Does Council want case management to be included for adult-only sites (similar to OASIS family sites)? o Does Council want to increase the budget for the program to fund case management for adults-only sites? o Should Springfield advocate for Lane County funding to serve as case management for parking program participants? Does Council want to consider changing the municipal code to address types of shelters allowed and sites permitted to host? Attachment 3 Page 9 of 9