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HomeMy WebLinkAboutItem 01 Housing Diversity Tax ExemptionAGENDA ITEM SUMMARY Meeting Date: 5/1/2023 Meeting Type: Work Session Staff Contact/Dept.: Katie Carroll/DPW Staff Phone No: 541.726.3660 Estimated Time: 50 Minutes SPRINGFIELD Council Goals: Promote and Enhance CITY COUNCIL our Hometown Feel while Focusing on Livability and Environmental Quality ITEM TITLE: HOUSING DIVERSITY TAX EXEMPTION ACTION Provide direction on the design of a property tax exemption program to incentivize REQUESTED: development of multiple -unit housing in transit -oriented areas of Springfield. ISSUE The City recognizes there is a need for more housing choice in the community and STATEMENT: is working to address this problem through measures in Springfield's Housing Strategy. Springfield has a very low vacancy rate and a third of households are cost - burdened (paying more than 30% of their income on housing expenses). A challenge Springfield faces is a lack of diversity in housing types available in the market. Several multiple -unit housing projects have been built in the last five years, but Springfield still does not have enough housing to meet demand. The Council's Housing Strategy identified property tax exemptions as one tool to explore to help spur housing development. A property tax exemption for multiple -unit housing could incentivize development of more diverse housing types. ATTACHMENTS: 1: Council Briefing Memo 2: Table of Public Benefit Options 3: Draft Program Guidelines 4: Program Review: Insights from Other Cities 5: Presentation slides DISCUSSION/ Council directed staff to explore a property tax exemption for multiple -unit housing FINANCIAL (ORS 307.600-637) as part of the City's Housing Strategy. Council has discussed IMPACT: this exemption and provided direction to staff during several work sessions between 2017 and 2023. In its most recent work session on March 13, 2023, Council confirmed its prior direction to staff on the geographic areas of Springfield that would be eligible for the exemption. Council directed staff to not limit the total tax that could be exempted through the program, and instead to provide the option for Council to cap the program at any time. In this work session, staff seeks direction on the program's eligibility requirements, including the public benefit requirement. A property tax exemption could impact the City's property tax revenues by exempting qualifying residential multiple -unit projects from paying some property taxes for several years. The purpose of the tax exemption is to incentivize construction of housing that would likely not otherwise be built, resulting in a long- term revenue gain by adding improvement value to the City's property tax rolls. MEMORANDUM City of Springfield Date: May 1, 2023 To: Nancy Newton COUNCIL From: Katie Carroll, Housing Analyst BRIEFING Jeff Paschall, Community Development Director Subject: Housing Diversity Tax Exemption MEMORANDUM ISSUE: The City recognizes there is a need for more housing choice in the community and is working to address this problem through measures in Springfield's Housing Strategy. Springfield has a very low vacancy rate and a third of households are cost -burdened (paying more than 30% of their income on housing expenses). A challenge Springfield faces is a lack of diversity in housing types available in the market. Several multiple -unit housing projects have been built in the last five years, but Springfield still does not have enough housing to meet demand. The Council's Housing Strategy identified property tax exemptions as one tool to explore to help spur housing development. A property tax exemption for multiple -unit housing could incentivize development of more diverse housing types. COUNCIL GOALS/MANDATE: Promote and Enhance our Hometown Feel While Focusing on Livability and Environmental Quality BACKGROUND: The Council is working to address Springfield's housing needs through the City's Housing Strategy. One tool Council has directed staff to explore is the use of property tax exemptions to incentivize the development of certain types of housing. The Housing Diversity Tax Exemption (HDTE) is a State -enabled property tax exemption codified at ORS 307.600-637 that is intended to spur the development of multiple -unit housing in transit -served and core areas. The Council has been exploring implementation of the HDTE since 2017 as a tool to increase housing diversity by encouraging construction of market -rate multiple -unit housing. The HDTE would allow qualifying applicants building new multiple -unit housing to have their property taxes for the residential portion of the improvements exempt for the first several years of operation. Taxes would not be exempt for land, pre-existing improvements, or most other new non- residential improvements. The exemption would only apply to the City's portion of tax revenue unless other taxing districts equaling at least 51 % of the total combined tax levy support the program. Most recently, at its March 13, 2023 work session Council reviewed and confirmed its direction to staff on the geographic areas of Springfield that would be eligible for the HDTE. Council also discussed whether to cap the program to limit the total tax that could be exempted through this program and determined it did not want to institute a program cap at this time. Council directed staff to include language in the program guidelines allowing the Council to institute a cap at any time by Attachment 1 Page 1 of 5 motion. At this work session, staff is seeking direction on program eligibility requirements for the HDTE, including direction on the program's public benefit requirement. PUBLIC BENEFIT REQUIREMENT: State statute requires applicants for the exemption to provide one or more public benefits as part of their project. The City has significant flexibility to tailor this requirement to fit Springfield's needs, and it is an opportunity to incentivize public benefits that the housing market may not provide on its own. The public benefit requirement can be viewed as an exchange — in return for not paying property taxes on new multiple -unit housing improvements for the first several years of operation, the applicant must provide a benefit to the community. In creating program guidelines and reviewing individual applications, Council may weigh whether the additional housing and public benefits proposed are a sufficient exchange for the benefit the developer receives. To determine the public benefit requirement of the HDTE program, the Council must decide: • If the City will specify the benefits applicants must provide or will allow applicants to pick benefits from a list of options • How many public benefits applicants must provide • What public benefits are eligible to meet the requirement If Council moves forward with adopting the HDTE, the City will need to seek formal support from other taxing districts to make the tax exemption a viable incentive. Staff anticipates other taxing districts will have feedback on the public benefit requirement and will return to Council for further direction on this aspect of the program as staff refines the program requirements. To prepare initial recommendations for Council, staff solicited input on potential public benefits from Development and Public Works (DPW) supervisors and the Economic Development team via a survey and meetings. Staff also reviewed the public benefit requirements of eight other Oregon cities' tax exemption programs (summarized on pages 2-3 and 5 of Attachment 4). Benefit Structure and Number Springfield can structure the public benefit requirement of the HDTE program to be more rigid by specifying the public benefits an applicant must provide to be eligible, or more flexible by allowing applicants to choose benefits from a list of options. In previous discussions on the HDTE in November 2017 and May 2022, Council indicated support for keeping the program flexible and giving developers choices. Staff recommend structuring the public benefit requirement as a tiered list, with priority benefits as options under "List A" and other benefits as options under "List B." Staff recommends requiring that applicants provide two (2) public benefits, at least one of which is a List A item. This approach is similar to the City of Bend's public benefit structure and would allow the City to prioritize certain public benefits based on community need, cost, and longevity, while still allowing applicants flexibility to make choices fitting their site and development plans. Other cities reviewed require applicants to provide between one and six public benefits. Some cities allow applicants to choose all their public benefits while others have a mix of required and applicant -choice benefits or have only required benefits. Allowing applicants to pick two benefits from a tiered list would put Springfield's public benefit requirement on the more flexible end of Attachment 1 Page 2 of 5 programs reviewed, while balancing the need add to value to the community in exchange for granting the exemption. Eligible Benefits The City must also determine what qualifies as a public benefit for this program. State statute lists open spaces, parks and recreational facilities, common meeting rooms, childcare facilities, transit amenities, transit or pedestrian design elements, and commercial use of a portion of the structure as examples of benefits a city may choose. Other cities have offered or required a variety of benefits, which are summarized in Attachment 4, pages 7-8. Staff have proposed thirteen (13) categories of public benefits to include as eligible benefits for the HDTE (see Attachment 2). These benefits have been proposed based on their ranking of priority in the staff survey, adopted policy support, and feasibility of evaluation and monitoring. In weighing whether each item should be a List A or a List B item, staff also considered whether the benefit would or could be publicly accessible, whether it would be likely to extend past the exemption period, and the cost to the developer to provide. For each public benefit, the developer would be required to go beyond what would already be required by Springfield codes. Staff has listed additional public benefits the Council may want to explore at the bottom of Attachment 2. In addition to the twelve listed public benefit categories, staff has included an option in the draft program guidelines (see Attachment 3) allowing applicants to propose a different public benefit. This would allow the City to focus applicants on the public benefits most important to Springfield while creating flexibility to consider other benefits that may be valuable on a site -by -site basis. Question: Should staff move forward with the proposed public benefit structure (pick two from a tiered list)? Question: What public benefits should be eligible for this program? OTHER PROGRAM REQUIREMENTS The City must adopt program guidelines outlining the eligibility requirements that would be used to grant exemptions. The City should also outline its process for reviewing applications. Although there are some statutorily required considerations, the City has flexibility to set its own program requirements. Draft HDTE program guidelines are included as Attachment 3 and have been color coded to highlight areas where the Council has flexibility to make a policy decision on the program requirements (M), and to show where program guidelines are reflective of statutory requirements (grey). Minimum Unit Number: The City must define the minimum number of units an applicant must add to be eligible for the HDTE. The Springfield Development Code defines multiple -unit housing as "Five or more dwelling units on an individual lot or parcel, except for Cottage Cluster housing, and not counting Accessory Dwelling Units (AD Us). " Based on this definition, staff recommends requiring a minimum of five units, although Council could increase the minimum required. No other city in Oregon has required more than five units. Exemption Length: The City can exempt property taxes for qualifying projects for no more than ten successive years (unless granting the exemption for affordable housing). In a February 2018 work session several councilors shared a preference for limiting exemptions to five years due to budgetary Attachment 1 Page 3 of 5 concerns. Staff recommends that Council offer exemptions for the full ten (10) years for qualifying projects. Of the eight other exemption programs reviewed, only the City of Salem had granted an exemption for fewer than ten years (for a duplex). Given the challenges developers face with high interest rates, increasingly strict lending requirements, and construction costs, shorter -term exemptions may not be enough to make some projects pencil. Additionally, the administrative burden of applying for the HDTE may not be worth it to some developers for a shorter exemption. Council has the option to set a uniform exemption length that is less than ten years or may adopt standards and guidelines to use to determine the exemption period for each application individually. Staff did not find any examples of this approach, but one option could be to determine exemption length based on the number or type of public benefits the project provides. If Council wishes to pursue exemptions of fewer than ten years, staff recommends further work on the public benefit requirement to right size the requirement with the benefit developers would receive. An alternative option to shorter exemption periods would be adding a requirement that applicants show their project would not pencil "but for" the tax exemption. Cities with this provision usually require applicants to submit proformas with and without the exemption applied, and have the information reviewed by an independent consultant. This provision would put stricter parameters around what projects would be eligible for the HDTE and could be a way to limit the fiscal impact of the program while maximizing the benefit for qualifying projects. Project Type: Staff recommends allowing projects adding units through new construction, addition, or conversion from non-residential uses to qualify for the HDTE. Springfield has a limited supply of vacant land suitable for multiple -unit housing, especially within the identified exemption areas. Allowing a wide variety of projects to qualify for the HDTE could encourage more infill and redevelopment. Although redevelopment projects may result in a decrease in tax revenue in the short -run where projects raze existing taxed improvements, the value of new, higher intensity improvements would generate more tax revenue over the long -run. Code Compliance: Recent and potentially upcoming State mandates from the legislature could impact the City's ability to enforce its adopted code requirements, especially for housing development. Staff recommends requiring applicants to comply with the Springfield Development Code as adopted. The HDTE is a discretionary program, so the City can choose to enforce its code where State mandates might otherwise permit statutory exemptions to code requirements. Applications: Staff recommends requiring that applicants attend a Development Initiation Meeting (DIM) before submitting an application for the HDTE. This would allow staff to have a discussion with prospective applicants about the public benefit requirement of the program, and to make site- specific recommendations about which public benefits may be most appropriate and valuable to the community at that location. Applications must be reviewed and decided upon by Council within 180 days of submission; requiring a DIM gives the City additional time to work with an applicant before the review clock starts. Question: Does Council have feedback on the draft program guidelines as written? Attachment 1 Page 4 of 5 NEXT STEPS: If Council moves forward with the HDTE, staff will begin to reach out to other taxing districts to notify them of the City's intent to implement the HDTE program and to seek their input and support. Staff will also solicit input from local developers on the draft program requirements. Staff will return to Council with updated draft program guidelines and draft code language. RECOMMENDED ACTION: Give staff direction on the following questions: 1. Should staff move forward with the proposed public benefit structure (pick two from a tiered list)? 2. What public benefits should be eligible for this program? 3. Does Council have feedback on the draft program guidelines as written? Attachment 1 Page 5 of 5 Benefit List A List B Policy Publicly Likely to Support Accessible? Extend Past (source)?' Exemption Affordable At least 20% of units (only available for At least 10% of units are reserved for Y N N Housing 6+ unit projects) are reserved for households with low incomes (at or below (SCP, MP) households with low incomes (at or below 80% AMI) through a: 80% AMI) through a: • Master lease with non-profit; OR • Master lease with non-profit; OR • Housing Choice Voucher; OR • Housing Choice Voucher; OR • Similar housing subsidy program • Similar housing subsidy program This requirement can also be met by This requirement can also be met by reserving units at prices affordable to a reserving units at prices affordable to a household earning no more than 80% AMI. household earning no more than 80% AMI. (Round up decimals to the nearest whole (Round up decimals to the nearest whole unit number) unit number Moderate At least 30% of units are reserved at prices At least 15% of units are reserved at prices Y N N Income affordable to households with moderate affordable to households with moderate (SCP, MP) Housing incomes (at or below 100% AMI). incomes (at or below 100% AMI). (Round up decimals to the nearest whole (Round up decimals to the nearest whole unit number) unit number Units Project provides a mix of unit sizes. To Y N Y Accessible to qualify, must provide at least three different (SCP, MP) Range of unit sizes. At least 10% of the total number Household of units must be allocated to each of the Sizes three unit sizes. Unit sizes include: live/work2, studio, 1 bed, 2 bed, 3 bed, etc. (Round up decimals to the nearest whole unit number) ' The following abbreviations have been used to indicate where policy support can be found for the public benefit: SCP= Springfield Comprehensive Plan, MP= Eugene -Springfield Metropolitan Area General Plan (Metro Plan), TSP= Springfield Transportation System Plan, WCP= Willamalane Comprehensive Plan. 2 Term is defined in the building code. Attachment 2 Page 1 of 4 Amenities Provide at least one element from the Provide at least one element from the Y Y Y Supporting following list: following list: (SCP, MP, Pedestrians • Raised or signalized crossing • Striping and signage for pedestrian TSP) and Bicyclists . Street lighting crossing • Additional sidewalk beyond • Additional sidewalk beyond required (substantial) required (minimal) Amenities Provide at least one element from the Provide at least one element from the Y Y Y Supporting following list: following list: (SCP, MP, Mass Transit • Additional sidewalk beyond • Additional sidewalk beyond TSP) Use required to provide connection to a required to provide connection to a bus stop location (substantial) bus stop location (minimal) • Installation of bus shelter or 0 Installation and maintenance of enhancement of existing bus trash receptacle at bus stop for shelter period of exemption • Other identified site-specific • Other identified site-specific transit transit amenities amenities EV and Provide EV charging stations (# of stations Provide micro -mobility charging stations (# Y Depends Y Micro- required based on number of units). of stations required based on number of (TSP) mobility units). Charging Parking in Provide fully structured parking to allow Provide full or partial structured parking N Depends Y Structure for higher density of residential (lower minimum # of spaces required to development (high minimum # of spaces qualify), OR provide garage parking for all required to uali units with no surface parking. Offsite ADA Improve nearby corners to ADA Contribute to the City's ADA fund to Y Y Y Accessibility compliance. increase compliance (minimum dollar (TSP) amount toqualify). Accessible Where Type A units' are required, increase N N Y Units accessibility to fully accessible ADA units; AND where Type B units are required, increase accessibility of at least 60% of Type B units to Type A units. A maximum 3 The terms Type A and Type B are defined in the building code. Attachment 2 Page 2 of 4 Attachment 2 Page 3 of 4 of 20 Type B units must upgraded to Type A units to meet this requirement. For projects with different unit sizes (1 -bed, 2 - bed etc.), at least one unit of each unit size must be upgraded from Type B to Type A (where applicable). Childcare Provide childcare facilities onsite for full Y Depends N Facilities exem tion period. SCP Community Project includes at least one of the Y Depends Depends Spaces following features: (SCP, • Shared community space WCP) • Community garden • Public plaza • Common meeting rooms • Rooftop gardens • Athletic facilities • Playground • Swimming pool, spa, sauna • Gallery or performance venue • Facilities for cultural groups, youths, seniors Facilities may be limited to members or paying customers if the Council finds proposal provides a sufficient public benefit. Development Project site is vacant or underutilized. If Project site is vacant or underutilized. If Y N/A Y or there are existing improvements onsite, there are existing improvements onsite, (SCP, MP) redevelopment those improvements must have been vacant those improvements must have been vacant of vacant or for at least one (1) year prior to for at least one (1) year prior to application. underutilized application. Sites with occupied Sites with occupied improvements may property improvements may qualify if the project qualify if the project will not displace any will not displace any existing residents or existing residents or businesses. The businesses. The aggregate development aggregate development site is less than 1 site must be at least 1 acre. acre. Attachment 2 Page 3 of 4 Extra costs Project site has additional development Y N/A Y associated costs due to infill or redevelopment such as: (SCP, MP) with infill or land assembly, demolition, infrastructure redevelopment replacement or upgrades, seismic upgrades, brownfield redevelopment. Some Other Public Benefits Council Could Choose to Explore Further: • Disaster Resiliency Features (common space designed as emergency shelter, onsite emergency power/water/food, etc.) • Energy Efficiency Certification (LEED, Energy Trust, Earth Advantage, etc.) • Tenant Amenities (Broadband internet, BBQs, air conditioning, onsite laundry or storage, covered parking, etc.) • Innovative material use/re-use (Mass timber, preserving existing building shell, etc.) • Advancing public infrastructure projects (Pay into or complete priority public infrastructure projects identified in adopted Plans) • Local economic impact (Pay prevailing wave for workers, source a percentage of contracts/services/materials locally) • Include special architectural features or public art Attachment 2 Page 4 of 4 Key: Policy Decision Statute Requires Housing Diversity Tax Exemption - City of Springfield Program Standards and Guidelines The following standards and guidelines expand on but do not supersede program requirements articulated in the Springfield Municipal Code (SMC), Section [ ], and in ORS 307.600-637. Prospective applicants should review both the code requirements and these guidelines before applying. Pur ose go Property tax exemptions are one tool available to incentivize an increase to the supply and diversity of housing. The Housing Diversity Tax Exemption (HDTE) program exempts some property taxes for approved housing projects in designated areas of Springfield. The program, enabled by state law, encourages development of new multiple -unit housing in transit -supported and core areas of Springfield by reducing the operating costs for qualified projects during their first several years of operation. Multiple -unit residential developments meeting the Springfield Development Code's (SDC) rnr ion of "Multipe nit Housing by adding dwelling units through new construction, [ddition, or conversion from a non-residential use can apply to receive an exemption of property taxes for a period of up to ten (10) years on residential improvements if program requirements are met. Housing made available for rental or sale of individual units is eligible for the exemption. Each project must be approved by Council. Eli ibili To be eligible for the exemption, applicants must meet the following minimum standards: • Applicant controls (owns or has proof of future ownership) of project site at time of application • Project will meet the definition of "Multinle Unit Housing" irLSpC 6.1.100, • Project site is located within an HDTE program area (see pages 8-12 for area maps) • Project will provide at least _ public benefits as outlined in these program guidelines • The construction of the project for which the exemption is sought must be completed on or before January 1, 2032, except where the City has granted an extension under ORS 307.634 • At completion, the project must be in conformance with all local plans and planning regulations applicable at the time of approval • Project must comply with the Springfield Development Code and not rely on any type of statutory exemption or exception SPRINGFIELD HDTE Program Guidelines 1 Attachment 3 Page 1 of 12 • Applicants receiving system development charge (SDC) payment assistance from the Springfield Economic Development Agency (SEDA) are not eligible for the tax exemption • Projects granted the exemption may not be used as transient accommodations, including but not limited to hotels, motels, and Short Term Rentals, Type 1 and 2 (as defined in the Springfield Development Code Section 6.1.110) • No part of the multiple -unit housing granted an exemption may be changed to a non- residential use during the exemption period •T Projects that have already applied for a building permit are not eligible for the exemption Application A complete application must be filed on or before December 1 of the preceding calendar year for consideration of an exemption beginning July 1 of the assessment year. Any application which does not contain all required information and/or the required fee shall be returned and considered not filed. The City reserves the right to request additional materials from the applicant during its review. At a minimum, the application must contain: • Site plans • Legal description of the property • Proof of ownership/site control • Project design elements and planned fagade materials • Description of existing use of the property • Justification of the elimination of any existing sound or rehabilitable housing or businesses on the project site and planned steps to miTigaTwpacts of displacement (such as advanced notice, relocation assistance, right to return, etc.), • Proposed number of housing units, and proposed rental rates or sales prices • Description of the public benefits to be provided An application fee will be charged at the time of application and should be made payable to the City of Springfield. The application fee is set by resolution of the Council, after consultation with the Lane County Assessor. Application fees cover the City's costs for processing the application and the Lane County Assessor's costs for administering the exemption. If an application is denied, the City will retain the portion of the fee attributable to its expenses for processing the application and will refund the balance to the applicant. Review Process Before submitting an application, the applicant must attend a Development Initiaticd Meeting (DIM) with the City. The applicant must request the DIM at least 60 days in advance of when the applicant plans to submit the application for exemption. The purpose of the DIM is to discuss the development proposal, application timing, and program requirements. Staff will provide preliminary feedback to assist the applicant in SPRINGFIELD HDTE Program Guidelines 2 Attachment 3 Page 2 of 12 preparing the exemption application. Applicants should be prepared to discuss their plans for meeting the program's public benefit requirement at the DIM. 2. A complete application must be submitted no later than December 1 of the calendar year preceding the assessment year in which the applicant wishes the tax exemption to begin (i.e. an application received December 1, 2023 could begin an exemption no earlier than July 1, 2024). Applications are accepted on a rolling basis but applicants are encouraged to coordinate timing with other development applications. Applicants should bear in mind the Lane County Assessor's assessment date when determining application timing. Tax exemptions will not begin until a project is complete and assessed at its completed value. Applicants may wish to consult with the Lane County Assessor for additional information. 3. The City Manager or designee will review application materials and forward a recommendation to the Council recommending approval, approval with conditions, or denial of the application. Review may require a follow-up meeting with the applicant to clarify or request additional application materials. 4. The Council will rule on the application within one hundred and eighty days (180) of the City's receipt of a complete application. The Council may approve, approve with conditions, or deny the application. The Council may hold a public hearing on the application at its discretion. Final action by the Council shall be by resolution. Applications not acted upon within 180 days of receipt of complete application are deemed approved. 5. The applicant will be notified of the decision in writing. If approved, the City will notify the applicant on or before April 1 following the approval. If denied, the applicant will be mailed notice within ten (10) days. The decision shall be accompanied by a written explanation stating the reasons for the denial. For guidance on review of a denied exemption, refer to ORS 307.631. 6. Prior to issuance of the Certificate of Occupancy, the applicant will be required record a deed restriction on the property that reflects any eligibility requirements upon which approval of the application was conditioned. This may include restrictions such as disallowing the use of the property for transient accommodations and maintaining approved public benefits for the duration of the exemption period. 7. The City may require the applicant to provide verification of the project's public benefits before applying the exemption. Following issuance of the Certificate of Occupancy and receipt of outstanding documentation needed for verification, the City will inform the Lane County Assessor's Office to apply the exemption on or before April 1 following the approval. SPRINGFIELD HDTE Program Guidelines 3 Attachment 3 Page 3 of 12 8. The City may require submission of an annual report and allow on-site inspections verifying that the project remains in compliance with its eligibility requirements. Exemption An exemption of property taxes may be granted for no more than FW A successive years. The first year of the exemption will be the assessment year beginning January 1 immediately following the calendar year in which the project construction is completed, determined by that stage in the construction process when, pursuant to ORS 307.330, the improvement would have gone on the tax rolls in the absence of the HDTE. The exempted amount will include only the improvements that are part of the project. Land and existing improvements will continue to be taxed during the exemption period. Exempt improvements include the newly created multiple -unit housing and may also include on-site parking constructed for the multiple -unit housing. Where stories or other improvements are added, or a structure is converted in whole or in part from another use to dwelling units, only the increase in value attributable to the addition or conversion may be exempt. Exemptions run with the property and will continue if the property is sold during its exemption period. Program Cap At any time, the Council may, by motion set a limit on the maximum amount of exempted tax revenue provided as a benefit of the exemption under this chapter. Program Areas Only projects located within the mapped program &yeas (see pages 8-12 for maps) are eligible to apply for the exemption. Within exemption areas, ITojects mus ith the followir area-speciriTcrequirem'TURT, as well as all other development requirements as set forth in the Springfield Development Code and Springfield Municipal code. Projects on properties abutting Main Street from 38th Street to Bob Straub Parkway may not propose any ground floor residential which faces Main Street. The City may add or withdraw territory from the program areas as provided for in ORS 307.606(2). Public Benefits In exchange for granting the property tax exemption, the City requires applicants provide at least two (2) public benefits as part of the project. The applicant must choose at least one (1) benefit to prnifrom List A and may prole the second benefit from List A or List B, Benefits must go above and beyond normal development requirements for the site (as applicable). The burden is on the applicants to explain how the benefits they have chosen to provide meet the program's requirements and serve the public, and to demonstrate the values of those benefits relative to the exemption applicant seeks. The City reserves the right to exercise discretion in determining SPRINGFIELD HDTE Program Guidelines 4 Attachment 3 Page 4 of 12 whether the proposed public benefits are appropriate for the site and if the requirements have been sufficiently met. Additional details on meeting the requirements of each public benefit are available on page 7. List A List B [To be filled in] [To be filled in] If the applicant wishes to provide a public benefit that is not outlined in List A or List B, they must make a detailed proposal to the City. The proposal must outline the benefit proposed to be provided and explain how it supports a community need. The proposal should identify adopted policy support for that benefit (if any). Where appropriate, the City may consider funding of equivalent improvements at an alternative location as an eligible public benefit (such as paying for a crosswalk at another location). Monitoriniz After a project is approved for the exemption, the project owner must continue to comply with program requirements for the duration of the exemption. On or before February 1 of each year, the owner of a property receiving the HDTE may be required to submit a report to the City and allow on-site inspections verifying the continuation of all approved public benefits. The City or Lane County Assessor may conduct additional monitoring of projects granted the exemption as needed, including following the sale of a project participating in the program which is still within its exemption period. The City Manager or designee shall submit an annual report to Council summarizing the status and fiscal impact of all approved projects within an exemption period. Termination If the City finds that construction of multiple -unit housing was not completed on or before the date specified in these guidelines, or that any provision of ORS 307.600-637, Springfield Municipal Code Section [ ], or the program guidelines are not being met, the City shall give notice to the property owner in writing of the proposed termination of the exemption. The notice shall list the reasons for termination and require the project owner to appear at a time specified by the City (not less than 20 days after mailing the notice) to show cause, if any, why the exemption should not be terminated. For additional guidance on termination of an exemption, refer to ORS 307.624 and 307.627. For guidance on review of a terminated exemption, refer to ORS 307.631. Extension If the City finds that, due to circumstances beyond the control of an owner who is acting in good faith, the multiple -unit housing cannot be completed by the date specified in these guidelines, it may grant an extension of up to one year for completion of construction as provided for in ORS 307.634. SPRINGFIELD HDTE Program Guidelines 5 Attachment 3 Page 5 of 12 Changes to a Project Following a project's approval for exemption, the applicant may need to make changes to the project from what was approved due to materials availability, land use requirements, or other unforeseen circumstances. Before making changes, the applicant must contact the City to determine if the changes can be approved. Changes to a project that relate to specific conditions upon which the approval of the application is based will require a new application and approval but may not require a new DIM. Additional Requirements The City may choose to apply additional regulations or requirements on applications at any time. The City may choose to alter or eliminate the tax exemption program at any time. Applications that have been approved before program changes are made will continue under the program guidelines in effect at their time of acceptance. SPRINGFIELD HDTE Program Guidelines 6 Attachment 3 Page 6 of 12 Public Benefit Requirements Benefit Evaluation Criteria Reporting Requirements [To be filled in [To be filled in [To be filled in SPRINGFIELD OREGON Attachment 3 Page 7 of 12 HDTE Program Guidelines 7 Exemption Area Maps DrTax Exempticn Draft Tax Exemption Boundaries Bouaftrdarles 17 Springfield, OR City Limits Urban Growth Boundary "o -- Hoyden �Uridge Rd :2i �5 "Q" STREET *V Me rcolc Rd % IN Q St 2z -07y---Plc St A Centennial RIA AveMO AWK Thurston G St Sommer uD FMOHA V Gco qP MAIN STREET t DOWNTOWN Main St Main St si 71 ----- - ------ - Virginia AveLaj Daisy St A gasper :,��,r P Ne" Rd N T boundaries are in draft form and subject to change. 0 0.5 ax exemption ALL Mf There art, no warranties that accompany this product Users assume all respoA4#ity for PuhRshed: 31312023 any loss or damage arising from any error, omission, or positional inaccuracy of this product BOUNDARIES RINGFIELD SPRINGFIELD SPRINGFI ELD OREGON Attachment 3 Page 8 of 12 HDTE Program Guidelines 8 W wIST ST W I ST N 3 WHST HST � P.v W G ST G ST W F ST e'� 4 m WEST iB3 a � Gift Y ¢ - w Y V/f \ S ��y1P�N�4 .� �5 Is9'rLL r _ 4F r i� SPNING� aox Published: 2/23/2023 SPRINGFIELD OREGON Draft Tax Exemption Boundaries ®&ou�da ieSExempt'on Springfield, OR = City urn is Urban Growth Bourdary x G ST F F ST r.I cl D ST ❑ ST °_� DOWNTOWN °5T zz BST rn BST N x r A STr I 11.1,11111711111 � � N sasr � w 4 N SAST y 585Y SR v yy SCST 9 SBST w i v � S 0 ST QUgRRVgO PARK ST cs ST 0_2 N * iax exemption boundaries are in draft form and subject to change. Mi There are no warranties that accompany this product Users assume all responsibility for DOWNTOWN any loss or damage arising from any error. emission or positional inaccuracy of this product. t . ---1 . Attachment 3 Page 9 of 12 HDTE Program Guidelines 9 �~-Draft Tax b_#_ Draft Tax Exemption Boundaries eaund_e | | | Sp /n OR £#t. E.SUrban Growth Bou kary \ � I. . Attachment S Page 10 of 12 HDTEProgram Guidelines 10 | | . r z L • _ � Lr _ Ln| _� = .- | _Ng � . f Ln m■&,m AVE IDAI# S. mbp� E ._. ■ , .�%� 2 _ OFaD £� i 14 '.moi _4atfkMWdMd#ddFOad%t. F_ _nD mP«Ud _ MOM 40.Vffl9W1« MAIN STREET _ med: m, any hts VKHAiSge a" mm q._ _. _ WMi , IL _ Attachment S Page 10 of 12 HDTEProgram Guidelines 10 CUINALTST JJ X � i PF FASANT ST ST OLYMPIC ST NST � s LST x oy CENTENNUy BLVD J ST J ST hEU WRY s F ST ara 4 0.7 RUN. Published�ZIW2023 SPRINGFIELD OREGON Draft Tax Exemption Boundaries Springfield, OR S' A PIEDMONT 57 �+ T�T N F a M ST M PARKER ST hX)000 ST GST F ST M *Draft Tax Exemption ® Boundarles City Limits _ Urban Growth Boundary LST CENTENWAL BLVD J ST IST L isT x �VOHAWK 1 NST H S7 6UBEN5 LN o � w caRsoN w N r 5r NAITMRTH Lr,_ N ' Tax exemption boundaries are in draft form and subjecr to change. o.z There are no warranties thaf MOHAWK ■ Mi anaompanylhisprodurt users assume ad resporrsibiiity for any loss or damage arising fmm any error, omission, or positional inaccuracy cf fhis product. v] nstT btiI Attachment 3 Page 11 of 12 HDTE Program Guidelines 11 � 6T HSS hAC4YT St vIL � � i�nTr 4x5an< y +y sT "n FB y WIMLT ST N � x� `� � MEQ4tlH15T 6 q PLEA46M sF �� 3T P_—C ST .S' :o R SI .26 w� OLY SMrMMIRLD ' Tax exemption boundaries are in draft form and suNeatto change. �ek Mi There are no warranlre.s that azompany fhis praiurt. Users avwne aN responsibility for lYl. STREET � w.onr Published:Z/23/2023 any lossordarnageaosinghornany wor,,omission,orposilionalinacuwacyofthis prxim:! SPRINGFIELD �e OREGON Attachment 3 Page 12 of 12 HDTE Program Guidelines 12 Draft Tax Exemption Boundaries Tax ® BoundariesExemption SE'HFfq M'E Springfield, OR city omits Urban Growth Boundary s A S- All C j RFI/FR kRkl,%F ; - ••._- ____ u iAYDEN BRIDGE WAY ff �H EbpT 7RNTHAVS �' Q EWAL s ---------- BRIDGE RDI r ; _...HAYDEN L4'4,aCx+,E OR� i I vsT VST I,TH 1 � I is OT[OST }— LOCH [!a 43r a p -H 57 QST p1w 9T 17FI �__�_I--"-• ___________-_- _-_- ____ i y�Ii -- msT i li F,$ �5T iµ„# - VyyHA.i NfE IX S 4 N,y6Ltlt3o ria- _ _ i m Q ACE ,IQ" STREET __jT d r5r ST " rerl I 1 TST � 6T HSS hAC4YT St vIL � � i�nTr 4x5an< y +y sT "n FB y WIMLT ST N � x� `� � MEQ4tlH15T 6 q PLEA46M sF �� 3T P_—C ST .S' :o R SI .26 w� OLY SMrMMIRLD ' Tax exemption boundaries are in draft form and suNeatto change. �ek Mi There are no warranlre.s that azompany fhis praiurt. Users avwne aN responsibility for lYl. STREET � w.onr Published:Z/23/2023 any lossordarnageaosinghornany wor,,omission,orposilionalinacuwacyofthis prxim:! SPRINGFIELD �e OREGON Attachment 3 Page 12 of 12 HDTE Program Guidelines 12 ATT4: Tax Exemption Program Review: Insights from Other Cities For the Housing Diversity Tax Exemption, ORS 307.600-637 Note: This attachment previously appeared in the Council's March 13, 2023 packet on this topic. Overview To inform recommendations for the design of the Housing Diversity Tax Exemption program (HDTE), staff reviewed the programs of eight cities with this State -enabled tax exemption, including conducting seven informational interviews with current and former staff. State statute includes several requirements for the exemption, however, there is significant flexibility for cities to adapt the program to meet local needs. This memo provides a brief overview of lessons learned from program review and interviews. A summary table comparing major aspects of each program is available on pages 5-6 as Appendix 1.' Exemption programs reviewed (adoption date): • Bend (2022) • Cottage Grove • Florence (2021) • Corvallis (2019) • Newport (2017) (Developing) • Eugene (1978, • Portland (2012) amended 2015) • Salem (1976) Key Takeaways • Setting a low minimum -unit number threshold has not resulted in small projects. Many projects approved have been of a larger scale. • Cities have significant latitude to shape the exemption's public benefit requirement to make the program more or less rigorous. This is also an opportunity to further other city goals and priorities. • Granting exemptions for fewer than ten years is rare, as are program caps. Requiring applicants to demonstrate financial need is more common and recommended by multiple interviewees. • Interviewees recommended seeking feedback from other taxing districts on public benefits, and from the development community to ensure program requirements are aligned with development realities. Eligible Areas Cities must designate areas within which the tax exemption is available. Those areas must be near transit or in core areas. Cottage Grove and Florence both offer the exemption generally anywhere within a quarter mile of transit and leave it up to land use approval and Council discretion to further restrict where the exemption is available. Eugene, Bend, and Corvallis have more targeted programs focused on certain areas or zoning types. No interviewees reported doing property -level analysis to remove individual properties from exemption areas. Program Caps and Applicant Need Only one program has a cap in place. Eugene is capped at 1,500 units which is tied to the Envision Eugene Plan. The program's advisory committee has already recommended increasing the cap. Bend has considered implementing a cap based on input from other taxing districts, but for now is requiring applicants to individually seek approval from other taxing districts. Cottage Grove and Newport both 1 This memo excludes Portland's exemption program which is closely tied to its Inclusionary Housing requirements. Attachment 4 Page 1 of 8 have code provisions allowing the City Council or County Board of Commissioner's to set a limit on forgone revenue by motion at any time. Four cities require applicants to demonstrate that they could not make the project pencil "but for" the tax exemption.' Three of those cities require review of the project's finances by an independent consultant, the cost of which can be included in the program application fee. Interviewees explained that this requirement can be a valuable tool for weighing the value of the public benefits proposed on a case-by- case basis and for building the support of other taxing districts for the program. Applicability to Other Taxing Districts The tax exemption only applies to the tax levy of the adopting city unless other taxing districts equaling at least 51% or more of the total combined tax rate approve the exemption. Four cities with adopted program received sufficient support from other districts to meet this threshold. Applicants in Bend and Salem must seek this approval on an application -by -application basis. Some cities approached all their local taxing districts for support, while others only sought it from districts needed to reach the 51% threshold (generally a school district or county). The public benefit requirement of multiple cities was shaped by feedback from other taxing districts. Exemption Length Statute limits the length of the exemption to no more than ten successive years, except that a city may choose to grant a longer exemption for affordable housing. All cities reviewed have codes allowing for the exemption to be granted for up to ten years (two allow extensions for low-income housing). Salem staff was aware of one applicant granted an exemption for fewer than ten years for a duplex; that decision was made at the Council level. No other interviewees were aware of exemptions being granted for fewer than ten years. Public Benefits One significant area of control cities have is the public benefit requirement of the exemption. In exchange for the tax exemption, approved projects must include one or more design or public benefits specified by the city. State statute lists open spaces, parks and recreational facilities, common meeting rooms, childcare facilities, transit amenities, transit or pedestrian design elements, and commercial use of a portion of the structure as benefits. Cities have flexibility in determining: • What public benefits are eligible to meet the requirement • If the city will specify benefits applicants must provide or allow applicants to pick the benefits from a list of options • How many public benefits applicants must provide Several cities' programs include locally important benefits in addition to or instead of the statutorily named benefits. Public benefits offered generally fall into the categories of housing, environment/transportation, urban design, employment/workforce, and other community needs (see Appendix 2 on pages 7-8 for a summarized list of public benefits). While some benefits would be incorporated into the development itself, such as energy efficiency standards or redevelopment of blighted property, others may require ongoing monitoring to ensure that they continue for at least the duration of 2 Corvallis, which is currently developing its program, is also looking at requiring applicants to demonstrate need. 2 Attachment 4 Page 2 of 8 the exemption period. Several cities' programs include provisions for annual monitoring of approved public benefits such as affordable units or childcare facilities. Salem's program offers the most public benefits (19), while Newport's program is very focused and includes only two. Bend and Newport, have an "other" category that applicants can use to meet their public benefit requirement. Interviewees shared that this option provides increased flexibility for applicants to meet program requirements while still requiring Council approval. Some cities have created more specific criteria for each public benefit; others have left benefits broader, sharing that this gives developers flexibility and puts the onus on them to explain how program requirements are met. Interviewees recommended ensuring that any public benefit offered goes above and beyond what is required by code or would likely be provided by the market. Another recommendation was to offer benefits that align with and enhance other city programs, plans, and goals. Cities can structure this aspect of the exemption program to be more rigid by specifying exact public benefits an applicant must provide, or more flexible by providing a list of benefits applicants can choose from. Of cities reviewed, Eugene's program is the most rigid, requiring all applicants to meet the same six public benefit requirements. Cottage Grove and Salem's are the most flexible, allowing applicants to pick one benefit from a list. Corvallis is considering a mix of required and applicant's -choice benefits. Salem has an affordability requirement triggered only for projects of 50+ units. Bend uses a tiered list where applicants must provide at least one benefit from a priority list, and two from a second list. Interviewees shared than an overly prescriptive public benefit requirement can be cumbersome for applicants and create an administrative burden. Cities with flexible programs have found that project applications usually propose including more benefits than required. One interviewee recommended offering fewer public benefit choices to focus developers on including those that are the city's highest priorities, and to reduce the staff effort required to create application criteria for each benefit. The programs reviewed require applicants to provide between one and six benefits. Florence allows affordable housing to count as two of its three required benefits, while Bend uses a tiered list to differentially weight benefits. Multiple interviewees recommended carefully considering how many benefits to require to balance the value of the tax exemption requested with program requirements. Minimum Number of Units Statute requires cities to specify the minimum number of dwelling units a project must add to be eligible for the exemption. Half of cities reviewed require a minimum of three units. The fewest units required is two (Newport for remodels and Salem), and the highest is five (Eugene). Although cities have set low thresholds for the program, exemptions granted have been for large developments. Cottage Grove granted exemptions for 40- and 80 -unit projects in 2021. Florence granted exemptions for 24- and 67 -unit projects in 2022. Eugene granted exemptions in 2022 for projects of 95, 130, and 156 units. One interviewee said they have had conversations with smaller developers about using the program, but that requirements were too complicated to meet for small-scale development. However, a second interviewee said the program had piqued local developer interest in building triplexes and quadplexes rather than the single -unit homes they usually build in order to access the incentive. Review Process By statute all exemption applications must be approved or denied by Council ordinance or resolution within 180 days of application. Beyond this, cities have flexibility to set review processes. A required pre - Attachment 4 Page 3 of 8 application conference is a common feature of cities' programs. Interviewees shared that this step is helpful for reviewing timelines and requirements with applicants, including a preliminary review of proposed public goods before the application review timeframe starts. Eugene has the most involved application process, which includes several public engagement components and an application review panel. Corvallis is considering requiring application review and recommendation by its existing housing committee, and Newport has its Planning Commission review applications. Cities have provisions for monitoring approved projects during and after construction. Eugene's program committee meets both mid -way through project construction and post -construction to verify the required public benefits were included in the project. Bend requires applicants to submit proof of public benefits after the project is completed before it certifies the exemption to the assessor's office. Several cities require an annual report from developers, generally to certify the ongoing inclusion of public benefits. Other Program Requirements Some cities have set additional program requirements that applicants must meet to ensure they are incentivizing the types of multiple -unit housing that are most desirable or needed. Eugene does not allow the exemption to be used for student housing. Florence has limited the exemption to be available only to new construction (excluding additions and conversions) to focus the program on vacant land. Bend requires applicants' projects to be a minimum of two stories, or three stories on larger lots. Corvallis is also considering a minimum height requirement. Other than minimum heights, Eugene is the only city to have program -specific design requirements in place. 4 Attachment 4 Page 4 of 8 Appendix 1 - Tax Exemption Program Comparison Table City Bend Corvallis Cottage Eugene Florence Newport Salem Grove Program Name Multiple Unit MUPTE MUPTE MUPTE MUPTE MUPTE Multi -Unit Property Tax Housing Tax Exemption Incentive (MUPTE) Program MUHTIP Adoption Year 2022 Developing 2019 1978, revised 2021 2017 1976 2015 Approved - - 6 projects, 144 (Since 2015) 6 2 projects, 91 1 project, 110 9 projects, 588 Projects units projects units units units created approved (2 (706 approved - built), 177 units 1 project built, 381 units canceled) upcoming Years Exempt Up to 10 10 Up to 10 No more than 10, Up to 10 10, may be Up to 10 may be extended extended for low for low income income rental rental subject to subject to contract contract Applies to All No - Yes Yes Yes Yes No Taxing Districts Minimum Units 3 4 3 5 3 3 (new 2 construction), 2 remodel Required to Yes, third party Yes, third party No Yes, third party Yes, staff Yes, third party No Demonstrate review review review review review Financial Need Cap No No No, code Yes, 1,500 units No No, code allows No allows Public Benefits 3, pick from tiered 5, 2 required & 1, pick from 6, must meet all 3, pick from list 2, must meet 1, pick from list list of 16- must pick pick 3 from list list of 16 of 16 both, has 'other" of 19 at least 1 from of 11 (affordable option as priority list (5 housing counts alternative choices), has 'other" as 2) option Other 2 story minimum (3 minimum height - cannot use for only new - 50+ unit Requirements story for lots of (potentially) student housing construction projects must 10,000+ sq ft) Attachment 4 Page 5 of 8 Appendix 1 - Tax Exemption Program Comparison Table Attachment 4 Page 6 of 8 provide 15% affordable units Application pre -app, post -app (if housing pre -app, pre -app and pre -app, council planning pre -app, Review necessary), staff advisory council review design review, review & public commission council review review, taxing committee pre -app hearing review & district review and review, council neighborhood hearing, council comment, council review contact, review review comment period, post -app design review, project review panel, council review, neighborhood contact, design review, project review panel x2 Monitoring annual report - no annual report, no annual report annual report review panel Other Details allowed in urban - change of use may also receive change of use to must be outside change of use renewal area, must to non- SDC credit of up non-residential known hazard to non - justify elimination & residential to 50% if certain must be areas residential must mitigate impact of must be conditions met approved by be approved by displacing existing approved by council & won't council & housing/businesses, council & be considered won't be must deed restrict won't be during considered transient use during considered exemption during exemption during exemption exemption Application Fee $5,200 (includes - $1,504 $3,720 (includes $970 $4,500 (includes $1,200 financial review) financial review) financial review) Attachment 4 Page 6 of 8 Appendix 2 - Tax Exemption Program Public Benefits List This list of public benefits was compiled and summarized from the programs of seven other Oregon cities with this property tax exemption. Bold letters at the end of each bullet point indicate which cities offer that benefit. Not all benefits listed are required by the city to be publicly accessible. Some benefits serve goals in multiple areas, but have only been listed once. Goal: Housing • Affordable Housing (60-80% of area median income, units subject to low-income housing assistance contract) B C F N • Middle -Income Housing (100-120% of area median income) BE • Payment into Affordable Housing Fund (in lieu of providing affordable units) C E • Units accessible to a broad income range (different values or a range not well represented in market) F S Goal: Environment/Transportation • Energy Efficiency and Sustainability (LEED, Earth Advantage, Energy Trust, etc. certifications) B G C E F N S • Electric Vehicle Charging B • Open Space B G F S • Development on existing surface parking lots G S • Onsite stormwater treatment B G • Amenities or programs to support use of mass transit B G S • Bicycle and pedestrian amenities B • Environmental remediation of site B • Enhanced landscaping (native, pollinator, water -wise) B Goal: Urban Design • Pedestrian -oriented design features G F S • Special architectural features G C F S • Compact urban development (minimum densities, development on sites with existing single -story commercial) E F S • Wrapped parking or parking within the structure B S • Placemaking or Active Public Spaces C • Connectivity Improvements C Goal: Employment/Workforce • Commercial ground floor B G C F S • Meeting Rooms — G F S • Use of local, minority, women -owned businesses, or local ownership C E Attachment 4 Page 7 of 8 Appendix 2 - Tax Exemption Program Public Benefits List • Economic Catalytic Effect C Goal: Other Community Needs • Parks and recreation facilities G F S • Childcare facilities B G F S • Advances priority public infrastructure projects C • Facilities for people with disabilities G C F S • Dedication of land or facilities for public use G F S • Development on underutilized property (blighted, abandoned, vacant, etc.) G C F S • Extra costs associated with infill and redevelopment (land assembly, demolition, infrastructure replacement or expansion) G S • Retrofitting (seismic, historic) G C • Facilities supportive of the arts or public art F S • Tenant amenities (laundry, storage, covered parking on-site) F Key Bend Cottage Corvallis Grove Eugene Florence Newport Salem B G C E F N S Attachment 4 Page 8 of 8 Housing Diversity Tax ORS 307.600-637 xemption Background Incentivize new multiple -unit housing near transit ■Exempts property taxes during first years of operation Application based, must meet eligibility requirements Council considering as part of Housing Strategy since 2017 March 13t" work session: program areas, cap discussion Attachme "' ` g 2 of 11 -x Draft Tax Exemption Boundaries KaardDraft aTaoesExemption Springfield, OR City Limits Urban Growth Boundary Pc A- H6yder EK19e Rd "Q'P STREET, 'Ar 4 -4. V3 :7 MOHAVVK P�V C.j J- Thur4FA-n L Grp., MAIN STREET DOWNTOWN 0 0. esaw P;! ah, I}cd: 3.,3M2 3 f LE. Main S-. Nein Virginia AV. V1 N 'Tu 0xvFFrp6orp bouwk6m are in draft fwm and -subjwf to changa. ALL 1, 1iTheie are f?u warraOUiLW act-taipany diesprWwf Ums assume A ie.,Pm4k kv T any k)�,q fy d trn Arpv errar (ffff pnc..q riRpa., m rra-y PfDdwq BOUNDARIES i 5,P;�qe 3 Qf. 11 Attachment Public Benefit Overview Applicant must provide 1+ public benefits as determined by City Need to decide: Whether to specify the benefits or allow applicants to pick from list of options How many public benefits are required What public benefits are eligible Attachme "' ` g 4 of 11 Public Benefit- Structure/Number Requirement can be rigid (must do items) or flexible (pick choices) Council wanted flexible Staff recommends tiered list (List A & List B) 2 benefits- At least 1 from List A 5of11 OREGON Public Benefit- Categories Affordable housing Moderate income housing ■Units of variety of sizes Bike/ped amenities Mass transit amenities EV & micro -mobility charging Parking in structure ■Offsite ADA accessibility Accessible units Childcare facilities Community spaces Development/redevelopment of vacant/underutilized property Costs associated with infill/redevelopment AND "other" option for flexibility 6 of 11 �E� QUESTIONS Should staff move forward with the proposed public benefit structure (pick 2 from tiered list)? What public benefits should be eligible for this program.? 7 of 11 ��EGON Other Eligibility Requirements Meet SDC "Multiple Unit Housing" definition Five or more dwelling units on an individual lot or parcel, except for Cottage Cluster housing, and not counting ADUs. Exemption length — 10 years Other options: <10 years Variable length (need criteria) Require "but for" showing ac OR i8of11 OREGON Other Eligibility Requirements Project type — New construction, addition, conversion Comply with adopted code requirements Attend Development Initiation Meeting (DIM) 9of11 �EGON QU ESTI ON Does Council have feedback on the draft program guidelines.? Attac �� 10 of 11 r a 0, ,.