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City Council Packet - 07/24/2018 1114 City of Tigard Tigard Business Meeting—Agenda TIGARD TIGARD CITY COUNCIL& LOCAL CONTRACT REVIEW BOARD MEETING DATE AND TIME: July 24,2018 - 6:30 p.m. Study Session;7:30 p.m. Business Meeting MEETING LOCATION: City of Tigard-Town Hall- 13125 SW Hall Blvd.,Tigard,OR 97223 PUBLIC NOTICE: Anyone wishing to speak on an agenda item should sign on the appropriate sign-up sheet(s). If no sheet is available,ask to be recognized by the Mayor at the beginning of that agenda item. Citizen Communication items are asked to be two minutes or less. Longer matters can be set for a future Agenda by contacting either the Mayor or the City Manager. Times noted are estimated;it is recommended that persons interested in testifying be present by 7:15 p.m. to sign in on the testimony sign-in sheet. Business agenda items can be beard in any order after 7:30 p.m. Assistive Listening Devices are available for persons with impaired hearing and should be scheduled for Council meetings by noon on the Monday prior to the Council meeting. Please call 503-718-2419, (voice) or 503-684-2772 (l'UD -Telecommunications Devices for the Deaf). Upon request,the City will also endeavor to arrange for the following services: • Qualified sign language interpreters for persons with speech or hearing impairments;and • Qualified bilingual interpreters. Since these services must be scheduled with outside service providers,it is important to allow as much lead time as possible. Please notify the City of your need by 5:00 p.m. on the Thursday preceding the meeting by calling: 503-718-2410 (voice) or 503-684-2772 (TDD -Telecommunications Devices for the Deaf). SEE ATTACHED AGENDA VIEW LIVE VIDEO STREAMING ONLINE: htto://www.tieard-or.gov/city hall/council meetine.oho CABLE VIEWERS:The regular City Council meeting is shown live on Channel 28 at 7:30 p.m.The meeting will be rebroadcast at the following times on Channel 28: Thursday 6:00 p.m. Sunday 11:00 a.m. Friday 10:00 p.m. Monday 6:00 a.m. PhCity of Tigard TIGARD Tigard Business Meeting —Agenda TIGARD CITY COUNCIL& LOCAL CONTRACT REVIEW BOARD MEETING DATE AND TIME: July 24,2018 - 6:30 p.m. Study Session;7:30 p.m. Business Meeting MEETING LOCATION: City of Tigard-Town Hall- 13125 SW Hall Blvd.,Tigard,OR 97223 6:30 PM •STUDY SESSION A. RECEIVE QUARTERLY CAPITAL IMPROVEMENT PLAN UPDATE 6:30 p.m. estimated time B. COUNCIL LIAISON REPORTS 7:00 p.m. estimated time •EXECUTIVE SESSION:The Tigard City Council may go into Executive Session. If an Executive Session is called to order,the appropriate ORS citation will be announced identifying the applicable statute.All discussions are confidential and those present may disclose nothing from the Session. Representatives of the news media are allowed to attend Executive Sessions,as provided by ORS 192.660(4),but must not disclose any information discussed. No Executive Session may be held for the purpose of taking any final action or making any final decision. Executive Sessions are closed to the public. 7:30 PM 1. BUSINESS MEETING A. Call to Order B. Roll Call C. Pledge of Allegiance D. Call to Council and Staff for Non-Agenda Items 2. CITIZEN COMMUNICATION (Two Minutes or Less,Please) A. Follow-up to Previous Citizen Communication B. Citizen Communication—Sign Up Sheet 3. APPROVE RESOLUTION APPOINTING LIBRARY BOARD MEMBER AND ALTERNA 1'E 7:35 p.m. estimated time 4. LOCAL CONTRACT REVIEW BOARD: CONSIDER CONTRACT AWARD FOR TIEDEMAN ALIGNMENT OF FANNO CREEK GREENWAY TRAIL PROJECT 7:40 p.m. estimated time 5. DISCUSS THE PROPOSED STATE LEGISLATIVE PRIORITIES FROM THE I.FAGUE OF OREGON CITIES 7:45 p.m. estimated time 6. CONSIDER RESOLUTION ACKNOWLEDGING EQUITABLE HOUSING STRATEGY FOR SW CORRIDOR 7:55 p.m. estimated time 7. NON AGENDA I 1'EMS 8. EXECUTIVE SESSION: The Tigard City Council may go into Executive Session. If an Executive Session is called to order,the appropriate ORS citation will be announced identifying the applicable statute.All discussions are confidential and those present may disclose nothing from the Session. Representatives of the news media are allowed to attend Executive Sessions,as provided by ORS 192.660(4),but must not disclose any information discussed. No Executive Session may be held for the purpose of taking any final action or making any final decision. Executive Sessions are closed to the public. 9. ADJOURNMENT 8:55 p.m. estimated time ., City of Tigard Tigard City Council Meeting Agenda TIGARD July 24, 2018 CITY COUNCIL STUDY SESSION A. RECEIVE QUARTERLY CAPITAL IMPROVEMENT PLAN UPDATE 6:30 p.m. estimated time City Engineer Faha will give the update and PowerPoint presentation. B. COUNCIL LIAISON REPORTS 7:00 p.m. estimated time The Tigard City Council may go into Executive Session. If an Executive Session is called to order,the appropriate ORS citation will be announced identifying the applicable statute. All discussions are confidential and those present may disclose nothing from the Session. Representatives of the news media are allowed to attend Executive Sessions, as provided by ORS 192.660(4),but must not disclose any information discussed. No Executive Sessions may be held for the purpose of taking any final action or making any final action or making any final decision. Executive Sessions are closed to the public. Council Meeting Calendar July 3* Tucsday Council Business Meeting 6:30 p.m.,Town Hall- Cancelled 4 Wednesday Fourth of July Holiday, City Hall and Library Closed 10* Tuesday Council Business Meeting—6:30 p.m.,Town Hall 17* Tuesday Council Workshop Meeting—6:30 p.m.,Town Hall 24* Tuesday Council Business Meeting—6:30 p.m.,Town Hall August 7* Tuesday Council Bus. Meeting Cancelled,National Night Out 14* Tuesday Council Business Meeting—6:30 p.m.,Town Hall 21* Tuesday Council Workshop Meeting—6:30 p.m.,Town Hall 28* Tuesday Council Business Meeting—6:30 p.m.,Town Hall September 3 Monday Labor Day Holiday, City Hall and Library Closed 4* Tuesday Council Business Meeting—6:30 p.m.,Town Hall 11* Tuesday Council Business Meeting—6:30 p.m.,Town Hall 18* Tuesday Council Workshop Meeting—6:30 p.m.,Town Hall 25* Tuesday Council Business Meeting—6:30 p.m.,Town Hall Regularly scheduled Council meetings are marked with an asterisk (*). AIS-3529 A. Business Meeting Meeting Date: 07/24/2018 Length (in minutes):30 Minutes Agenda Title: Receive Quarterly Capital Improvement Plan Update Submitted By: Lori Faha,Public Works Item Type: Update,Discussion,Direct Staff Meeting Type: Council Business Mtg- Study Sess. Public Hearing: No Publication Date: Information ISSUE Briefing and update on the status of Capital Improvement Plan (CIP) projects underway. STAFF RECOMMENDATION / ACTION REQUEST No action is requested;the purpose of this item is to brief council. KEY FACTS AND INFORMATION SUMMARY The Capital Improvement Plan (CIP) establishes Tigard's budget and timeline for improvements to city owned and operated public infrastructure over a 6-year period. A CIP project improves or adds value to the city's infrastructure,typically costs $50,000 or more,and has a useful life or extends the useful life of infrastructure for 5 years or more. Public facility systems addressed by the CIP include streets,parks, sanitary sewers, stormwater and domestic water in addition to public buildings and facilities. In most cases,CIP projects are implemented with oversight from the city's Engineering Division. City Engineer Lori Faha will provide a summary report to council,including the status of active projects during this briefing. The attached file will be shown as a PowerPoint presentation at the meeting. Copies of individual project status reports for active CIP projects will be delivered to council in the July 19,2018 City Council Newsletter packet. OTHER ALTERNATIVES Not applicable. COUNCIL GOALS, POLICIES,APPROVED MASTER PLANS The Fiscal Year 2017-18 CIP,which is the focus of this presentation,was adopted on June 13,2017. DATES OF PREVIOUS COUNCIL CONSIDERATION The last council CIP briefing was on February 27,2018. Attachments CIP Update Presentation 07/24/2018 CITY OF TIGARD Respect and Care I Do the Right Thing I Get it Done TIGARD Capital Improvement Project Update FY 2017-18 Year End Report Tigard City Council Meeting I July 24,2018 CITY OF TIGARD CIP Cost Challenges What We Are Doing • Rapidly rising costs as hot • Bumping up total project cost construction climate continues estimates in CIP • Contractors&consultants • Putting more out to bid booked up earlier in season when • Materials and staffing shortages possible • Permitting agencies busy • Filled vacant Engineering • ODOT—revenue increase, positions to increase putting out more work bandwidth • • Anticipating tariff impacts Reviewing recently bid Unpredictability projects to learn and improve •• Many projects must be built in • Maintaining contingencies summer months • Evaluating when/if we re-bid 1 07/24/2018 C 1 1 Y OF TIGARD Project Status • On Target 0 Minor Issues •Major Issues ► Parks Streets ► Water • ► Sanitary Sewer Stormwater e / Facilities fr.. CITY OF TIGARD Status of Parks Projects PROJECT NOTES BUDDED ! SCHEDULE Panno Creek Remeander Under construction • • Dirksen Nature Park • Oak Savannah Restoration This year's planting complete. Next....Cattle! • • • Oak Savanna Overlook Complete • • • Nature Play Area Construction contract approval on July 10 • Forested Restoration and Complete • Boardwalks • Interpretive Shelter and Construction contract approval on July 10 Restroom 2 07/24/2018 C I TY OF TIG .A R D Status of Parks Projects PROJECT NOTES ®® Tigard Street Heritage Trail Final design underway,more grants for art, working on permitting with rail agencies Fanno Creek Trail—RFFA Grant Design underway Bridge fabrication underway,construction Fanno Creek Trail/Tiedeman delay due to permitting/CWS process, Construction bids high Bull Mountain Park Trail Complete Resurfacing courts,replacing park signs,Cook Parks Major Maintenance Park trail repair design,Jack Park trail evaluation,Dirksen bridge evaluation CITY O F TIGARD Status of Streets Projects PROTECT NOTES BUDGET SCHEDULE Pavement Management • 4 Program Summer paving underway Walnut Street Improvements Complete • Pedestrian and Cyclist Multiple projects—sidewalk/path gap filling, Connections Program crosswalk improvements,"Your Speed Is" • S signs,pilot safety projects Upper Boones Ferry/Durham New signal controllers&coordinated timing Adaptive Signals implemented,design re-scoping underway Commercial Street Sidewalk • • (Main to Lincoln) TriMet lead,design underway Hunziker Industrial Core/Wall St Construction underway S 3 07/24/2018 CITY () I: TIG ARD Status of Streets Projects PROJECT NOTES BUDGET SCHEDULE County lead,in final design,coordinating on Roy Rogers Road Roy Rogers,Bull Mountain Road&Beef Bend • g` Road construction schedules Commercial Street Sidewalk Complete CDBG Durham Road School 20 When Complete 0 Flashing North Dakota Street Bridge Selected for ODOT grant,starting scoping for ! Replacement !GA and design RFP,ODOT to request more funding Tigard Street Bridge Temporary Complete � • Repair Conceptual analysis completed of three Railroad Crossing Closure options to close North Dakota crossing, • . under budget Tigard Street Bridge Grant application submitted to ODOT Replacement • • CITY OF T I G A R I) Status of Water Projects PROJECT NOTES BUDGET 1 SCHEDULE Well Abandonment Tigard High School—Complete,under budget • Cach Reservoir&Pump Station Will be re-evaluating and firming up scope in • Water Master Plan Red Rock Creek Waterline Design underway,working to match • Relocation schedules with Hunziker&trail projects Canterbury Pump Station Consultant analysis underway to determine 0 best approach to upgrade needs Water Master Plan Underway,coordinating with Lake Oswego as 40 0 they complete their master plan update 4 07/24/2018 CITY OF TIGARD Status of Sanitary Sewer Projects PROJECT NOTES BUDGET SCHEDULE East Tigard Sewer Replacement Construction complete,additional costs funded mostly by Clean Water Services Pacific Highway Sanitary Sewer Construction contract signed,under budget • Line East Fork Derry Dell Creek Design underway for stream restoration • • Fanno Creek Sanitary Siphon Final design,easement acquisition underway •, Repair C ITY OF TIGARD Status of Stormwater Projects PROJECT NOTES BUDGET SCHEDULE Fanno Creek Slope Stabilization Design underway,scope increase for —Arthur Court permitting,more bank erosion to address Derry De11/118th Court Slope Stabilization Construction complete,under budget Stormwater Master Plan Council adopted February 27,2018 124"'Avenue/Ann Court Culvert Final design complete,permitting delay,will 5 Replacement wait to bid Stormwater Rate/Funding Study Not started yet—moved in budget to FY19 S 5 07/24/2018 C ITY 0 F 'I' I G _1 R D Status of Other Projects PROJECT NOTES BUDGET SCHEDULE Civic Center Plan Complete Saxony Demolition and • Remediation Complete l Americans with Disabilities Act Assessment work underway,some additiona • Transition Plan funds to cover full scope needs included in FV19 budget C I T Y O F T I 0 A R D Fanno Creek Remeander ?. -t p tacAlll• r t g--,-44;--;rIt...-%74 W .:. fir-k . P-t' -,w Wim. y � ,a, w _ '` 6 07/24/2018 C i T I' ) I; T i (' P U Wall Street Construction lit _•-f-,..!--- c 1 "1' 1' O I ^ 1' I G A R D Wall Street Construction rte-, 7 07/24/2018 CITY OF TIGARD Pavement Management Program . `-, ^,`� , 3 a t�, • '--,,,,t tri.-- 9 a C I TAY OF 'I' I G :1 R D Crit of Tigard11,444 c' L 1�I"I H j , ik* x r 1 ■ �w_ w ici -m ro `r v - i 1 , a.) OM1 ,/ J\ 1 e\ •i rit n ,„T7,„T - -- } 8 CITY OF TIGARD Respect and Care I Do the Right Thing I Get it Done 11111 TIGARD CapitalImprovement Project Update FY 2017-18 Year End Report Tigard City Council Meeting I July 24, 2018 CITY OF TIGARD CIP Cost Challenges What We Are Doing • Rapidly rising costs as hot • Bumping up total project cost construction climate continues estimates in CIP • Contractors & consultants • Putting more out to bid booked up earlier in season when • Materials and staffing shortages possible • Permitting agencies busy • Filled vacant Engineering • ODOT — revenue increase, positions to increase putting out more work bandwidth • • Reviewing recently bid Anticipating tariff impacts projects to learn and improve • Unpredictability • Maintaining contingencies • Many projects must be built in summer months • Evaluating when/if we re-bid ( : 1 I ' "i # ) i a 1 ) Project Status • On Target 0 Minor Issues 0 Major Issues Parks Streets Water 4k Sanitary Sewereolik Stormwater 1 Facilities C 1 '1' Y 0 I (3 A R D Status of Parks Projects PROJECT NOTES BUDGET SCHEDULE Fanno Creek Remeander Under construction • • Dirksen Nature Park • Oak Savannah Restoration This year's planting complete. Next.... Cattle! • • • Oak Savanna Overlook Complete • • Nature Play Area Construction contract approval on July 10 • Forested Restoration and Complete • Boardwalks • Interpretive Shelter and Construction contract approval on July 10 Restroom ( : I "I ' l O F TIGARD Status of Parks Projects PROJECT NOTES BUDGET SCHEDULE Tigard Street Heritage Trail Final design underway, more grants for art, working on permitting with rail agencies Fanno Creek Trail— RFFA Grant Design underway Bridge fabrication underway, construction Fanno Creek Trail/Tiedeman delay due to permitting/CWS process, Construction bids high Bull Mountain Park Trail Complete Resurfacing courts, replacing park signs, Cook Parks Major Maintenance Park trail repair design, Jack Park trail • • evaluation, Dirksen bridge evaluation (; 1 'l' l 0 h TIGARD Status of Streets Projects PROJECT NOTES BUDGET SCHEDULE Pavement Management Program Summer paving underway Walnut Street Improvements Complete 0 0 Pedestrian and Cyclist Multiple projects—sidewalk/path gap filling, Connections Program crosswalk improvements, "Your Speed Is" ! 0 signs, pilot safety projects Upper Boones Ferry/ Durham New signal controllers & coordinated timing Adaptive Signals implemented, design re-scoping underway Commercial Street Sidewalk TriMet lead, design underway � • (Main to Lincoln) Hunziker Industrial Core/Wall St Construction underway 0 0 CITY OF TIGARD Status of Streets Projects PROJECT NOTES BUDGET SCHEDULE County lead, in final design, coordinating on Roy Rogers Road Roy Rogers, Bull Mountain Road & Beef Bend Road construction schedules Commercial Street Sidewalk Complete CDBG Durham Road School 20 When Complete • • Flashing North Dakota Street Bridge Selected for ODOT grant, starting scoping for 40 Replacement IGA and design RFP, ODOT to request more funding Tigard Street Bridge Temporary Complete � Repair Conceptual analysis completed of three Railroad Crossing Closure options to close North Dakota crossing, . • under budget Tigard Street Bridge Grant application submitted to ODOT Replacement • • CITY OF TIGARD Status of Water Projects PROJECT NOTES BUDGET SCHEDULE Well Abandonment Tigard High School —Complete, under budget • Cach Reservoir& Pump Station Will be re-evaluating and firming up scope in • Water Master Plan Red Rock Creek Waterline Design underway, working to match 40 Relocation schedules with Hunziker&trail projects Canterbury Pump Station Consultant analysis underway to determine • best approach to upgrade needs Water Master Plan Underway, coordinating with Lake Oswego as • • they complete their master plan update CITY OF TIGARD Status of Sanitary Sewer Projects PROJECT NOTES BUDGET SCHEDULE East Tigard Sewer Replacement Construction complete, additional costs funded mostly by Clean Water Services Pacific Highway Sanitary Sewer Construction contract signed, under budget410 Line East Fork Derry Dell Creek Design underway for stream restoration • 411 Fanno Creek Sanitary Siphon Repair Final design, easement acquisition underway CITY OF TIGARD Status of Stormwater Projects PROJECT NOTES BUDGET SCHEDULE Fanno Creek Slope Stabilization Design underway, scope increase for —Arthur Court permitting, more bank erosion to address Derry Dell/118th Court Slope Stabilization Construction complete, under budget Stormwater Master Plan Council adopted February 27, 2018 124th Avenue/Ann Court Culvert Final design complete, permitting delay, will • Replacement wait to bid Stormwater Rate/Funding Study Not started yet—moved in budget to FY19 • (: I '1 Y O 1' 1 1 G 0 R D Status of Other Projects PROJECT NOTES BUDGET SCHEDULE Civic Center Plan Complete • Saxony Demolition and Complete • ! Remediation Americans with Disabilities Act Assessment work underway, some additional Transition Plan funds to cover full scope needs included in41 FY19 budget .}meq: i Ffy t ,'} Cu H 44 P ' -'-' .1 '"' ..,-:, ,,,,_ , . ,neil o 0,,,,p-, , ' ' 'i .. x— n.,47 ..._ -,4 . 3 3 . o- €� ,.r es t. �, Cu ._ . • k .firk mss• J ,,,p,..(0(.,.- ,.;:.....4.*„,,,.....-...e.,,.: ,.,- -,,,,,,,,-4,01., .... -4 4..,,,, , ,,, , X j ;�`. f 1 *,. ,,,,i12,p,4„,,,,r,;?„,, ifi i F:2 ,____, , . ' v.A.,,:i,i 11:1_,,,,,,,y. t. : ,,:. t C.) .4 H CU t -, VI) ,..^+, .,� � •✓ ..IMI. • CD _u CD f C rh C n O 4 ' .7),:,0,...: YY4 : 5 X 4 w �l"-'J r N Y't ° ,, i * ia ,¢+ I.-A.' } � • CITY OF TIGARD Pavement Management Program t otoefr' / /I / 4• ...II 7/ .4. , , , , ,k - t,. vat, , , 1 41 , i • #0 .' 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Business Meeting Meeting Date: 07/24/2018 Length (in minutes):5 Minutes Agenda Title: Approve Appointments of Tigard Library Board Member and Alternate Prepared For: Margaret Barnes,Library Submitted By: Margaret Reh,Library Item Type: Motion Requested Meeting Type: Council Business Meeting Resolution -Main Public Hearing: No Publication Date: Information ISSUE Approval of the Appointment Advisory Committee's appointment recommendations of board member and alternate to the Tigard Library Board. STAFF RECOMMENDATION / ACTION REQUEST Staff Recommends the City Council's approval of the Appointment Advisory Committee's choices for Tigard Library Board Member and Alternate. KEY FACTS AND INFORMATION SUMMARY See attached biographies. OTHER ALTERNATIVES Not Applicable COUNCIL GOALS, POLICIES,APPROVED MASTER PLANS Not Applicable DATES OF PREVIOUS COUNCIL CONSIDERATION City Council previously approved the appointment of new Board members and alternates for the Tigard Library Board on June 27,2017. Attachments Resolution Biographies CITY OF TIGARD, OREGON TIGARD CITY COUNCIL RESOLUTION NO. 18- A RESOLUTION APPOINTING KATE RISTAU TO THE TIGARD LIBRARY BOARD FOR THE COMPLETION OF A I'ERM OF ONE POSITION VACA I'ED MID-TERM, EFFECTIVE JULY 24, 2018 THROUGH JUNE 30, 2019; AND APPOINTING SHIRLEY EDWARDS AS AN ALTERNATE FOR THE COMPLETION OF A TERM, EFFECTIVE JULY 24, 2018 THROUGH JUNE 30,2019. WHEREAS,two mid-term resignations were received from Library Board Member Michelle Taylor and Alternate Member Martin Rubin;and WHEREAS,a position for one Member and one Alternate for the Tigard Library Board are open;and WHEREAS,Kate Ristau and Shirley Edwards were interviewed by the Mayor's Appointment Advisory Committee on Monday,July 9,2017. NOW,THEREFORE,BE IT RESOLVED by the Tigard City Council that: SECTION 1: Kate Ristau is hereby appointed to the Tigard Library Board as a Member to complete a vacated position,effective July 24,2018 through June 30,2019;and SECTION 2: Shirley Edwards is hereby appointed to the Tigard Library Board as an Alternate to complete a vacated position,effective July 24,2018 through June 30,2019;and SECTION 3: This resolution is effective immediately upon passage. PASSED: This 24th day of July 2018. Mayor-City of Tigard ATTEST: City Recorder- City of Tigard RESOLUTION NO. 18- Page 1 2018-19 New Library Board Members' Bios MEMBER Kate Ristau is an author and a Business Manager. She has a B.A.in English and Folklore. She has served on the Willamette Writers Board as the Chapter Chair and Director of Communications. Kate has been a resident of Tigard for ten years. ALTERNATE Shirley Edwards is a retired Travel Agent Owner and was a member of the Beaverton Chamber of Commerce from 1970-1980. She is a Royal Rosarian. Shirley has volunteered at the Pittock Mansion. Shirley has been a resident of the Summerfield community in Tigard for seven years. AGENDA ITEM NO. 2.B - CITIZEN COMMUNICATION DATE: July 24, 2018 (Limited to 2 minutes or less,please) The Council wishes to hear from you on other issues not on the agenda and items on the agenda, but asks that you first try to resolve your concerns through staff. This is a Cite of Tigard public meeting, subject to the State of Oregon's public meeting and records laws. .:ll written and oral testimony becomes part of the public record. The names and addresses of persons who attend or participate in City of Tigard public meetings will be included in the meeting minutes, which is a public record. NAME,ADDRESS & PHONE TOPIC STAFF Please Print CONTACTED Name: 3i , mG P.l ;4 +P- t., j 5 ,( Aal Ail /A Also,please spell your name as it sounds,if it will help the presiding officer pronounce: Address RPw '( (0,4 City Apd2 State Zip CI .722 Phone No. 50 -965- 3 v' Name: f?n 11- 1(411 G 61C 6 Also,please spell your name as it sounds,if it will t" 14 k M^ -`( help the presiding officer pronounce: Address ( c5 a ( v Cl City State 0 Zip Phone No. el I �; o C7 t% T- �{ C L Name: �T 1 a✓► Car e ttl Te--` f `� *vt(- 'V7 !�/�kl 614: Also,please spell your name as it sounds,if it will „ �� d4 ' j,/E' +'t help the presiding officer pronounce: R/ / a Address /? 3 ° ,S (41 /U �' l L li! 7 .r - f2a city q State a/2- Zip q ( O° Phone No. 3— — r CITIZEN COMMUNICATION I:\ADM\CITY RECORDERS\000 City Recorder-Records Resources and Policies\CCSignup\2018\citizen communication 180206.doc AGENDA ITEM NO. 2.B - CITIZEN COMMUNICATION DATE: July 24, 2018 (Limited to 2 minutes or less,please) The Council wishes to hear from you on other issues not on the agenda and items on the agenda, but asks that you first try to resolve your concerns through staff. This is a Cite of Tigard public meeting, subject to the State of Oregon's public meeting and records laws. _-111 written and oral testimony becomes part of the public record. The names and addresses of persons who attend or participate in Citi of Tigard public meetings will be included in the meeting minutes, which is a public record. NAME,ADDRESS & PHONE TOPIC STAFF Please Print CONTACTED _1AlsName: fi k c-1(- Also, o,please spell your name as it sounds,if it willf\i (f IA-La help the presiding officer pronounce: Address tLI p ) ,, \03v4 � tows City j�i��' al, tik State Zip ql/ ")"(1 Phone No. L S - 51 - i9et")---) Name: Also,please spell your name as it sounds,if it will help the presiding officer pronounce: Address City State _Zip Phone No. Name: Also,please spell your name as it sounds,if it will help the presiding officer pronounce: Address City State Zip Phone No. CITIZEN COMMUNICATION [:\ADM\CITY RECORDERS\000 City Recorder-Records Resources and Policies\CCSignup\2018\citizen communication 180206.doc SUPPLEMENTAL PACKET FOR tteY `1 0-/Z (DATE OF MEETING) C t fr uv\ Corn 1e4 s Public Comment to the City Council — July 24, 2018 I am concerned about the Southwest Corridor project and the city's input to the Draft Environmental Impact Statement. On Thursday you have the chance to provide input. I recognize that the City Council may favor having the TriMet Max line extend to Tigard. In fact, one member recently was quoted in the Tigard Life publication as interpreting the 2012 ballot measure vote to show that the community is in support of light rail. That is not exactly what the measure asked. In terms of the present, your City staff represents you in various working groups with TriMet, Metro, Portland, and others. In fact, at least two of your staff members have prior experience as they represented the City of Milwaukie's interests in the period from 2010-2013 when many max line features, issues, and plans were discussed and preliminary commitments obtained from TriMet. But, history shows that during the 2011-2015 time period some key features of the Orange Line to Milwaukie were changed due to budget cuts, or TriMet interpreted language in agreements different than staff expected, etc. I managed Milwaukie during the last years of construction and lived through some disagreements about earlier commitments made. I raise these concerns to caution council and staff to be diligent in asserting your desires and to make sure agreements are clear and in writing so that all financial commitments to the city are solid. You may accept the light rail extension, but you must protect Tigard and its long-term interests. Two weeks ago, we attended the open house where the preferred alignment was displayed. We saw councilor Woodard there, but did not notice any other council members during our stay. I encourage you to take official action to lock in a key element of the alignment- the proposed parking garage close to the downtown station As TriMet moves forward and inevitable funding issues and shortfalls arise, the garage could be eliminated unless your agreement is solid. I give you the Tacoma Station as an example from the Orange Line where a proposed parking garage was downsized to a surface lot. Historically, in Max development, this does not happen to promises made to Portland, but it does happen for the lesser suburbs. Your staff has opposed a planned Operations and Maintenance facility planned for a sizeable parcel southeast of the proposed station. I applaud their efforts, but this large facility continues to appear on plans despite their objections. This facility would take a large lot of land off of the tax rolls rather than be available for commercial or industrial use to complement the downtown urban renewal efforts. Please oppose this as Tigard should not be burdened by this facility. Typically, these large operations yards are at the end of a line or beyond. The other alternative shown on the alternatives is the "Through 72"d Facility" south of the Triangle. I suggest that you demand that TriMet place the Operations and Maintenance facility further out, beyond city limits, as Tigard should not be negatively impacted by hosting yet another large non-tax paying facility. Please remember that while Tigard and other cities have been involved in early planning and allowed to sit at the table with TriMet, Metro, and Portland, when major decisions are made to reduce scope or the overall cost of projects like this, your voice will be quite small. Today's design and promises may not be tomorrow's realities. If Tigard wants to maintain its own identity and not be absorbed into the Portland plan, please voice your input. Bill Monahan 10248 SW Kent Court Tigard )rridor Ligh x NI - Secure https://www.oregonmetro.gov/sites/default/files/2018/06/22/SWCorri dorDEIS_Exec_Summary.pdf wit Alternatives t 1 .. , rient C: Tigard and Tualatin , B maps ic t�ec Route Baylor p B t t t ti cl I LU a 4h ..+' ^ 11t kiiiii y, Tigard' d Tigard TC Udall < Beveland g Tigard 4k TC Ash Alternative CS would , use this portion as a tail track to access .,, , ,-' the Hunziker Facility „ Hunziker FacilityE/ f 4 ,. ,. i ; Av s c e here to search 4 O1 p!1 di V 1 ^ [!D (i% r4'!) C(9' AIS-3552 4. Business Meeting Meeting Date: 07/24/2018 Length (in minutes): 5 Minutes Agenda Title: Consider Contract Award for Tiedeman Realignment of Fanno Creek Greenway Trail Project Prepared For: Joseph Barrett Submitted By: Joseph Barrett,Finance and Information Services Item Type: Meeting Type: Local Contract Review Board Public Hearing Newspaper Legal Ad Required?: Public Hearing Publication Date in Newspaper: Information ISSUE Shall the Local Contract Review Board award a contract for the Tiedeman Realignment of the Fanno Creek Greenway Trail project to Legacy Contracting,Inc.? STAFF RECOMMENDATION /ACTION REQUEST Staff recommends the Local Contract Review Board award a contract for the Tiedeman Realignment of the Fanno Creek Greenway Trail project to Legacy Contracting,Inc. for an amount not to exceed$419,840 and authorize the City Manager to take the necessary steps to execute the contract. KEY FACTS AND INFORMATION SUMMARY The Fanno Creek Trail is a regional trail and the main north-south non-motorized transportation route through Tigard. However,gaps and substandard sections significantly reduce its effectiveness as a transportation facility. This project resolves the substandard trail segment at SW Tiedeman Avenue. Currently, the trail ends abruptly into the SW Tiedemann sidewalk out of Woodard Park. Trail users,who wish to continue on the regional trail,are forced to find their way to a school crosswalk 500 feet to the south. Site lines of oncoming traffic are restricted and the trail slope at this location is significantly steeper than the Americans with Disability Act (ADA) grade requirement. There have been safety and wayfinding problems with both bicyclists and pedestrian users. Bicyclists attempting to make the turn onto the sidewalk and have fallen into the street and pedestrians have found difficulty in finding the safe route to continue on the trail. This project will re-align the trail, so it crosses Tiedeman Avenue at a single location using the existing cross walk. This trail realignment will require a new pedestrian bridge over Fanno Creek,a new retaining wall to allow the trail to meet ADA grade requirements,and floodplain grading and planting. Additionally,the trail will be widened to ten feet to meet desired standards for multi-use trails in the region. The city issued an Invitation to Bid for the construction of the realignment project in mid-May 2018. Bids were due on June 6th and the city received five bids at closing: •Legacy Contracting,Inc. - $419,840 •Stellar J Corporation - $488,498 •Bent LLC - $538,271 •Elting Northwest,Inc. - $567,321 •Conway Construction Company- $588,994 Staff has reviewed the bids and determined that Legacy Contracting has submitted the lowest responsible bid. The company has no State of Oregon Contractor Construction Board violations and is not on the Bureau of Labor and Industries ineligible list. Staff recommends an award of the construction contract for the Tiedeman Realignment of the Fanno Creek Greenway Trail project to Legacy Contracting for an amount not to exceed $419,840. OTHER ALTERNATIVES The Local Contract Review Board may reject all bids and direct staff to evaluate and develop any alternative scopes to the project and resolicit the bids. This would greatly extend the projects timeframe and may have cost increases associated with such a decision. COUNCIL GOALS, POLICIES,APPROVED MASTER PLANS This project supports the Tigard Strategic Plan Goal 1 by providing increased,more accessible,and safer non-motorized travel along the regional Fanno Greenway Regional Trail. DATES OF PREVIOUS COUNCIL CONSIDERATION This is the first time the Local Contract Review Board (LCRB) has discussed this potential contract. LCRB let a contract for steel bridge fabrication separately on June 27,2017;bridge is currently being fabricated,due for delivery in September. LCRB let a contract for project design for this project on September 27,2016. Fiscal Impact Cost: $419,840 Budgeted (yes or no): Partial Where budgeted?: Parks Capital and Parks SDC Funds Additional Fiscal Notes: Funding for the Tiedeman Realignment of Fanno Creek Greenway Trail project is through a combination of Metro Greenspace dollars and the Parks SDC Fund,with Metro funding$800,000 of the total projected budget of$947,000 (the project is funded over multiple fiscal years). The FY 2019 budget has a total of$390,000 for construction of the project. The combined internal and external costs for the project in FY 2019 are estimated at$458,000. Staff will request the additional budget needed to complete the project in the first quarter supplemental budget. 4. ....,.,._ ....-......�.A Attachments No file(s)attached AIS-3547 5. Business Meeting Meeting Date: 07/24/2018 Length (in minutes): 10 Minutes Agenda Title: Discuss the Proposed State Legislative Priorities from the League of Oregon Cities Prepared For: Kent Wyatt,City Management Submitted By: Kent Wyatt,City Management Item Type: Update,Discussion,Direct Staff Meeting Type: Council Business Meeting -Main Public Hearing: No Publication Date: Information ISSUE Discuss the proposed state legislative priorities from the League of Oregon Cities. STAFF RECOMMENDATION / ACTION REQUEST Develop a consensus on the top four legislative priorities for the 2017 state legislative session. KEY FACTS AND INFORMATION SUMMARY The League of Oregon Cities (LOC) has identifed 29 potential legislative priorities for the 2019 legislative session.The session will be a'long' session which can last until June 30,2018. The LOC is requesting that the City Council review the proposals and identify the top four issues that the City of Tigard would like to see the LOC focus on during the 2019 session. PERS reform,Property tax reform,qualification based selection (QBS),and right-of-way authority are among the issues listed by the LOC which have been legislative priorities for the City in previous session.You will find the City's 2018 state legislative agenda attached.The deadline for submitting a response to the LOC is August 3,2018. OTHER ALTERNATIVES Submit input to the LOC with less than four legislative priorities. COUNCIL GOALS, POLICIES,APPROVED MASTER PLANS N/A DATES OF PREVIOUS COUNCIL CONSIDERATION N/A Attachments 2018 State Legislative Agenda 2019 LOC Legislative Proposals 0 Oregon's 2018 Legislative Session: February 5— March 9 f '., N 4 1 - , t I F, Sen.Ginny Burdick - ,-- s, SENATE DISTRICT 18 , 900 Court St.NE,S 213,Salem,OR 97301 _ sen.ginnyburdick@state.or.us �4."� i, Sen.Kim Thatcher -11,..„..-' +.+ ,. SENATE DISTRICT 13-KEIZER 900 Court St NE,5-307,Salem,OR 97301 iii "She flies with her own wings." Judge Jessie Quinn Thornton sen.kimthatcher@state.or.us Rep.Margaret Doherty 1QQ HOUSE DISTRICT 35 2010 rep Court re NE,H 282,Salem,OR 97301 Legislative Agenda rep.margaretdoherty@stateonus Rep.A.Richard Vial Tigard, Oregon HOUSE DISTRICT 26 900 Court St.NE,H-484Salem,OR 97301 rep.richvial@oregonlegislature.gov III Tigard City Council r Mayor Council President John Cook Jason Snider ow A ftc,!,.= i Councilor Councilor Councilor Tom Anderson Marc Woodard John Goodhouse councilmail@tigard-or.gov City of Tigard TIGARD 13125 SW Hall Blvd Ffigard,Oregon 97223 503.639.4171 I www.tigard-or.gov Affordable Housing Finance (continued) • Support legislation to remove barriers for prior to making a selection and committing local governments to address the housing public dollars. affordability crisis and support state • Oppose preemption of the ability of cities investments that increase access to, and to manage and receive compensation for supply of, affordable housing units. the use of public ROW. Economic Development and Land Use Transportation • Support additional tools to facilitate • Support legislative priorities that address remediation of brownfields. traffic congestion, economic development • Support preserving urban renewal as a and jobs. tool for communities. • Advocate for legislation and funding that Other Focus Areas supports the proposed Southwest Corridor Light Rail project. • Advocate for legislative changes that will clarify and enhance public safety Finance and local control related to marijuana dispensaries. • Property Tax Reform: • Support increased resources for persons ► Support referral to voters that would with mental health issues, especially in allow local control of temporary crisis situations. property tax outside of statewide caps; • Advocate for PERS Reform that create ► Support an amendment of the state savings opportunities as well as potential constitution that would reset a property's new revenue sources. assessed value to its real market value at • Ensure the implementation of legislation the time of sale or construction; specifying that an amateur athlete is not ► Support a statutory change regarding employee for the purpose of certain the way new property is added to the employment-related provisions. tax rolls to provide the option of applying a city-wide changed property Previous Legislative Support ratio to new property. • In 2015,the Legislature approved a • Provide increased transparency and measure,which included$1.5 million,to accountability, better access and support public infrastructure, development competition, and promote government and private sector investment in Tigard's efficiency in the procurement of certain Hunziker Industrial Core creating new sites professional services by allowing public for businesses and higher levels of contracting agencies to compare pricing employment. information from qualified consultants Please check or mark 4 boxes with an X that reflects the top 4 issues that your city recommends be added to the City of: priorities for the League's 2019 legislative agenda. Legislation A. 9-1-1 Tax B. Annexation Flexibility C. Auto Theft _ D. Beer and Cider Tax Increase E. Broadband Infrastructure F. Carbon Cap-and-Invest Program Adoption G. City Comparability for Compensation H. Green Energy Technology Requirement Changes I. Infrastructure Financing and Resilience J. Least Cost Public Contracting K. Local Control Over Speed Limits on City Streets L. Lodging Tax Definition Broadening M. Mental Health Investment N. Permanent Supportive Housing Investment O. PERS Reform P. PERS Unfunded Liability Revenue Stream Dedication Q. Place-Based,Water Resource Planning(Program Support) R. Property Tax Reform S. Qualification Based Selection(QBS) T. Right-of--Way and Franchise Fee Authority U. Safe Routes to School Match V. Small Area Cell Deployment W. Speed Cameras X. Speed Limit Methodology Y. Third Party Building Inspection Z. Tobacco Taxes Share Increase AA. Waste Water Technical Assistance Program BB. Wetland Development Permitting CC. Wood Smoke Reduction Program Support In addition to your ranking of the priorities shown above,please use this space to provide us with any comments(supportive or critical)you may have on these issues,or thoughts on issues or potential legislative initiatives that have been overlooked during the committee process.): A. 9-14 Tax Legislation: Support legislation enhancing the effectiveness of the state's emergency communications system by increasing the 9-1-1 tax and/or seeking other sources of revenue and prohibiting legislative"sweeps"from emergency communications accounts managed by the Oregon Office of Emergency Management. Background: The League worked with other stakeholder groups in 2013 to extend the sunset date on the statewide 9-1-1 emergency communications tax to January 1,2022(HB 3317).In 2014,the League also worked to pass legislation including prepaid cellular devices and services under the 9-1-1 tax(HB 4055).As concerns mount with regard to disaster preparedness and recovery and as upgrades to communications technology become available,it is apparent that state and local governments do not have the resources necessary to address challenges or take advantage of opportunities(see an analysis in the League's 2018 State Shared Revenue Report,here,and the Oregon Office of Emergency Management's"Emergency Communications Tax"webpage, here.Additional funding is needed and the practice of periodically sweeping funds out of the state's emergency management account for other uses must cease. It is worthy of note that the practice of"sweeps"disqualifies the state from receiving federal funds for emergency communications. It is unknown how many federal dollars have been foregone as a result of this policy. Presented by the Telecom,Broadband&Cable Committee and endorsed by the Finance&Taxation Committee B. Annexation Flexibility Legislation: The League will work to increase the flexibility for cities to annex residential areas and to encourage voluntary annexations,with a primary focus on improving the island annexation process. Background: There is a significant disconnect between the state's land use process and the process of annexation,which has created issues for a variety of cities. The annexation process requirements are particularly difficult for areas known as "islands". Even though cities can involuntarily annex islands,most cities have adopted a policy to only engage in voluntary annexation. This has left significant islands un-annexed. In addition, waiting for surrounding properties to voluntarily annex often means the process and order of annexation does not necessarily match the plans for infrastructure development. Unannexed lands remain on the buildable land supply but much of it will contain some level of development that was approved by the county,but is often underdeveloped when compared to the comprehensive plan. However,there have been bills that have been introduced over the last few sessions that aim to make non- voluntary annexation more difficult(see e.g., HB 2039 and HB 2040). As these bills have gotten hearings, the League has taken the opportunity to discuss how annexation and land use are very disconnected. This is particularly of interest as interest in housing development remains at the top of the list of legislative priorities. If local governments have greater control over the annexation process and can better incentivize voluntary annexation,they can better meet the development expectations of the land use system and their comprehensive plans. It also assists in the orderly development of infrastructure. Tools that were recommended to consider included partial island annexation in residential areas,relaxation of the limit of 10 years to bring a property fully onto the city's property tax level,changing the boundary requirements for islands,and looking at how the withdrawal of special district territory can be better regulated. Presented by the Community Development Committee C. Auto Theft Legislation: Address the deficiencies in the Unauthorized Use of a Motor Vehicle statute that were created after an adverse court ruling. Background: A 2014 Oregon Court of Appeals ruling requires that prosecutors prove beyond a reasonable doubt that a person driving a stolen car knew they were in violation of the law prohibiting the unauthorized use of a motor vehicle. Because of this ruling,unless confesses to the crime,obtaining a conviction for stealing a car is near impossible. The National Insurance Crime Bureau's 2017"Hot Spots"report stated that Oregon experienced a 19 percent increase in auto theft over 2016.News stories on this issue may be found here,here and here. Because of the ruling,auto theft has increased exponentially across rural and urban Oregon. A legislative fix was proposed in 2018 and was generally agreed to but was never voted on by either chambers due to the fiscal impact it would have on the state. A copy of the legislation can be found here.This issue was brought to the Committee by a representative of the Oregon Association of Chiefs of Police and they have requested the League's supported in seeking to fix this issue. Of particular concern to the General Government Committee was the fact that vehicles being stolen tend to be older cars and trucks that are more likely to be owned by people of more modest means who would be unable to readily replace their vehicles without considerable impact. Presented by the General Government Committee D. Beer and Cider Tax Increase Legislation: The League proposes increasing the state taxes on malt beverages and cider to assist with rising public safety costs,improve public health,reduce alcohol consumption by minors,and provide alcohol tax equity with wine and liquor. Background: Oregon's tax has not been increased since 1978 and is currently$2.60 per barrel which equates to about 8 cents on a gallon of beer. The tax is by volume and not on the sales price. (Yes,the bottle deposit is 60 cents and the tax is only about 4 cents on a six-pack!)Oregon is tied with Kentucky for the lowest beer taxes of all states(see page 98 in link).To get to the middle, Oregon would need to raise the tax to 80 cents per gallon(10-fold increase). Cities are preempted from imposing alcohol taxes. In exchange,cities receive approximately 34%of the state alcohol revenues(see page 9 in link)(beer and wine taxes,license fees,and liquor profit sharing)as state shared revenues. However,because the tax is so small on beer,the share is also small. The beer tax brings in only about$7 million per year state-wide;thus,the city share is about$2.3 million of the total shared revenues. The total share for cities for all alcohol-based state shared revenues is estimated at over$86 million. The League anticipates that excise tax increases including those on alcohol will be a part of revenue package discussions in 2019,and the League sees this concept as an important leveraging tool. Presented by the Finance and Tax Committee and endorsed by the General Government Committee E. Broadband Infrastructure Legislation: Seek additional state support and funding for increased and equitable broadband infrastructure deployment,especially in rural areas. Oppose legislative efforts to restrict existing municipal authority to provide broadband services. Background: The deployment of broadband and telecommunications networks and services(public and/or private) throughout Oregon is critical to economic development,education,health and safety and the ability of residents to be linked to their governments.Mapping research shows large areas of the state either not served or underserved by competitive broadband technology. A significant barrier to the deployment of broadband infrastructure is funding. Cities need additional funding and support from various sources, including the state and federal government, allocated for increased or new broadband infrastructure, especially for fiber connections to schools, community libraries, and public safety buildings.Also,oppose efforts by private internet service providers to restrict local efforts to make broadband technology available within their jurisdiction. Presented by the Telecom,Broadband& Cable Committee F. Carbon Cap-and-Invest Program Adoption Legislation: The League's Energy&Environment Policy Committee has recommended support,if specific principles are recognized and codified,of legislation that would implement a statewide cap on carbon emissions over time and that would generate revenues for strategic investments that further Oregon's greenhouse gas reduction goals. The cap on emissions would apply to certain"regulated entities"with carbon emissions over 25,000 metric tons annually. Regulated entities would receive allowances,or would generate offset credits,to emit carbon. The revenue from the purchase of allowances would be invested in specified programs aimed at furthering GHG reductions and mitigating program impacts. It is anticipated that funds generated from a cap on the transportation fuel industry may be subject to use per state Constitutional requirements related to the state highway fund.The statewide cap on carbon would be reduced over time to meet updated greenhouse gas reduction goals for Oregon. For the League to support a statewide cap on carbon,the following principles would need to be recognized and codified in any legislation: • The legislation and subsequent rulemaking processes would need to establish a forum to generate meaningful dialogue with rural Oregon communities and those with energy-intensive,trade- exposed industries. Equity considerations should be considered throughout this process by including cities and counties representing a variety of populations,regions of the state,and community demographics(e.g.low-income and underserved populations). Specific action should be taken to have representation from cities with populations of less than 1,500. • The cap would need to apply to all sectors including utilities,industry and the transportation fuels sector(e.g. fuel producers)if annual carbon emissions exceed 25,000 metric tons. e The program should be designed to link to the Western Climate Initiative which has a multi- jurisdictional carbon market(linking with programs in California, Ontario and Quebec) s The revenue from the purchase of allowances would be invested in evidence-based technologies to reduce emissions from regulated sectors with excess revenues being invested in statewide programs to support climate resilience and rural Oregon economies. Requiring the reinvestment of allowance revenue will help regulated sectors become more efficient over time and less carbon intensive. • In addition,LOC will advocate that additional revenues generated be dedicated to support programs including: o Technical assistance grants that local governments could access to help fund the adoption and implementation of local climate action/sustainability plans. o Funding for local woodstove smoke reduction programs to help communities in,or at risk of,non-attainment from woodstove smoke. o Funding to study and incentivize an expanded,yet sustainable,cross-laminated timber industry in Oregon with the intent of stimulating job creation in rural Oregon communities. o Funding for drought mitigation planning and resilience for Oregon water systems. Background: The League anticipates that the Legislature is very likely to pass legislation during the 2019 session that would implement a"cap-and-invest"program in Oregon, similar to the program adopted by California. Similar legislation has been considered by the Oregon Legislature during previous legislative sessions,but has failed to be brought for a vote. The political will to pass such a policy/program for Oregon appears to be incredibly strong;the Speaker of the House and President of the Senate are co-chairing the Joint Interim Committee on Carbon Reduction and the Governor's team is staffing a new Carbon Policy Office to assist in the Committee's efforts.The League's Energy&Environment Committee has spent considerable time discussing this policy,including how best to craft a policy recommendation that makes both environmental and economic sense for the state and cities. Presented by the Energy&Environment Committee G. City Comparability for Compensation Legislation: The League will seek legislation to ensure that cities are compared only with cities of a similar cost of living when negotiating with strike prohibited bargaining units. Background: Oregon labor law doesn't allow police officers,firefighters,emergency communicators and other public safety critical employees to strike. Instead when an impasse is reached when bargaining with labor unions that represent those workers,the state proscribes a set procedure involving an outside arbitrator to resolve those contract disputes. In that process the arbitrator will compare the city to other cities of similar size. As a result,the cites in rural areas are being compared with to cities in metropolitan areas that have different economic circumstances. Klamath Falls with 20,000 people in it and a median home value of $160,000 could be compared to Tualatin with a similar population and a median home value of$355,000. This is not a reasonable comparison. The Human Resources Committee notes that the Legislature created a variable minimum wage in Oregon in recognition of the different costs of living across the state. Each Oregon county is assigned to one of three wage zones with one being the Portland Metropolitan area,that second are less populous regions and the third are rural counties. The Committee recommends that cities only be compared to cities in the same wage zones. A detailed explanation and graphics of the proposal may be found here. Presented by the Human Resources Committee H. Green Energy Technology Requirement Changes Legislation: Advance legislation to statutorily modify the existing"1.5 percent green energy technology for public buildings"requirement to allow for alternative investment options such as offsite solar or energy efficiency projects. Background: Oregon statute currently requires public contracting agencies to invest 1.5%of the total contract price for new construction or major renovation of certain public buildings on solar or geothermal technology. The requirement allows for offsite technology,but only if the energy is directly transmitted back to the public building site and is more cost-effective than onsite installation. Removing the requirement that an offsite project be directly connected to the public building project could result in increased flexibility for local governments to invest in solar projects that are more cost-effective and provide for increased solar energy generation. In addition,the League will advocate to allow 1.5 percent funds to be invested in alternative projects that provide a greater economic or social return on investment including energy efficiency. Presented by the Energy&Environment Committee I. Infrastructure Financing and Resilience Legislation: The League will advocate for an increase in the state's investment in key infrastructure funding sources, including,but not limited to,the Special Public Works Fund(SPWF), Brownfield Redevelopment Fund, and Regionally Significant Industrial Site loan program. The advocacy will include seeking an investment and set aside through the SPWF for seismic resilience planning and related infrastructure improvements to make Oregon water and wastewater systems more resilient. Background: A key issue that most cities are facing is how to fund infrastructure improvements(both to maintain current and to build new). Increasing state resources in programs that provide access to lower rate loans and grants will assist cities in investing in vital infrastructure. Infrastructure development impacts economic development,housing,and livability. The level of funding for these programs has been inadequate compared to the needs over the last few biennia and the funds are depleting and unsustainable without significant program modifications and reinvestments. The funds are insufficient'to cover the long-term needs across the state. While past legislative sessions have focused on finding resources for transportation infrastructure,the needs for water,wastewater,and storm water have not been given the same attention. A LOC survey of cities in 2016 identified a need of $7.6 billion dollars over the next 20 years to cover water and wastewater infrastructure projects for the 120 cities who responded. This shows a significant reinvestment in the Special Public Works Fund(SPWF)is needed to help meet the needs of local governments. Without infrastructure financing options,cities cannot meet the needs of new housing or new business—high priorities for cities across the state. In addition,there is a critical need to improve upon the seismic resilience of public drinking water and wastewater systems. The Oregon Resilience Plan(2013)identified Oregon's water and wastewater systems as especially vulnerable to damage resulting from a Cascadia subduction zone earthquake. The plan recommended all public water and wastewater systems complete a seismic risk assessment and mitigation plan for their system. This plan would help communities identify and plan for a backbone water system that would be capable of supplying critical community water needs after a significant seismic event. However,there is currently no dedicated funding to assist communities with this planning effort and the funding needed to repair/retrofit water infrastructure is significantly inadequate. Investments have been made in Oregon to seismically retrofit public safety facilities and schools,but without planning for infrastructure resilience,communities may not have access to water for critical needs, including drinking water and water for fire suppression,in the immediate aftermath of a seismic event. This priority will focus on maximizing both the amount of funding and the flexibility of the funds to meet the needs of more cities across the state to ensure long-term infrastructure investment. Presented by the Community Development Committee and endorsed by the Finance& Taxation and Water/Wastewater committees J. Least Cost Public Contracting Legislation: Introduce and/or support legislation repealing Section 45(2)(a)(G)and Section 45(3)(a)(G)of HB 2017 (enacted in 2017)relating to compliance with least cost public contracting requirements as a condition for fuel tax increases after 2020. Background: As a matter of public policy,the League fundamentally disagrees with this linkage of transportation projects funding with public contracting standards applicable to specific local projects.Under HB 2017 (enacted in 2017)cities must comply with least cost public contracting standards set forth by ORS 279C.305 for subsequent the two-cent increases in the state gas tax to occur in 2020,2022 and 2024. Literally intezpreted,one recalcitrant city might be able to stop the next gas tax increase by its failure to comply with this statute. Presented by the Transportation Committee and endorsed by Finance and Taxation Policy Committee k. Local Control Over Speed Limits on City Streets Legislation: Introduce legislation that allows Oregon cities to opt-in(voluntarily)to adjust their speed limits on residential streets 5 mph lower than the statutory speed limit. Background: HB 2682 (enacted in 2017) allows the city of Portland to establish by ordinance a designated speed for a residential street under the jurisdiction of the city that is five miles per hour lower than the statutory speed provided the street is not an arterial highway. This authority should be extended to all cities and be considered permissive(not required). Cities should be able to determine speeds that are adequate and safe for their communities. Presented by the Transportation Committee L. Lodging'Tax Definition Broadening Legislation: The League proposes adjusting and broadening the definitions of tourist,tourism promotion,and tourism- related facility as those terms are defined in the lodging tax statutes to ensure state-wide continued tourism and related economic(see page 17 of link)and tax growth(see page 223 of link), assist with city tourist costs,and provide local choice and revenue flexibility. Background: In 2003,when the state imposed a state lodging tax,the Legislature preempted cities by imposing restrictions on the use of local lodging tax revenues.(The percentage of restricted revenues varies by city.) Restricted tax revenues must be used for tourism promotion or tourism-related facilities. While the League will support all legislation that provides more flexibility on local tax usage,the League will advocate for lodging tax legislation that broadens those terms to clearly cover city costs of tourist events,tourism- related facility maintenance,tourist amenities,tourist attraction enhancement and public safety costs for special tourist events. Language from Section 3 of the dash 1 amendment to FIB 2064(2017)and Section 1 of HB 2064(2017)will likely serve as a starting place. See also this power point presentation and this LOC testimony(supporting HB 2064)for further information. Presented by the Finance and Tax Committee M. Mental Health Investment Legislation: The League will seek to protect and enhance the investments made to Oregon's treatment of the mentally ill. Background: In 2015,the Legislature funded rental and housing assistance for persons suffering from mental illness, specialized training for police officers to assist people in mental health crisis,multi-disciplinary crisis intervention teams and expanded access to treatment. While providing direct mental health services is not a standard city service,the state of care for persons in crisis had deteriorated to the point city police officers were regularly the primary public employee to provide interventions. The December,issue of Local Focus was devoted to cities and mental health,those articles may be found here. Because of the anticipated budget shortfalls in 2019,the General Government Committee would like the League to ensure that services established in 2015 are not cut and to capitalize on any opportunities that may exist or be created to enhance those investments. Presented by the General Government Committee N. Permanent Supportive Housing Investment Legislation: The League will support increased investments in the services that are provided to people who are living in permanent supportive housing. Background: Permanent supportive housing serves specific populations that traditionally face difficultly in remaining in housing due to additional,complex needs by providing housing and other services at the same time. A variety ofpopulations, such as seniors,veterans,families, and those with mental health conditions,have different services that accompany their housing support. Permanent supportive housing models that use a Housing First approach have been proven to be highly effective for ending homelessness,particularly for people experiencing chronic homelessness who have higher service needs. Investment in the services is as important as the housing because residents that do not receive these additional supports often end up returning to homelessness based on issues related to their other issues. However,in many areas the funding for housing is not well matched with the funding for the services. The state is the primary funding source for these services. However,there is some disconnect between the housing support provided by the Oregon Housing and Community Services Department(OHCS)and the Oregon Health Authority (OHA). To help communities that are working to provide opportunities for permanent supportive housing and those seeking to find long-term solutions to local homelessness issues,better investment in the services is vital to success of these programs. By supporting appropriations to OHCS and OHA for these services, more support services can be provided to those that are in permanent supportive housing and lead to better outcomes. Presented by the Community Development Committee 0. PERS Reform Legislation: The League will seek legislation to modernize the PERS investment pool,ensure proper financial controls are adhered to,and give cities a greater voice in how their monies are invested. The League will also seek legislation that shares the risk and costs of the pension benefit with employees but does so in a manner that impacts employees based on the generosity of the benefit plan they will retire under. Background: Oregon's Public Employee Retirement System(PERS)is a three-tiered program that provides a defined benefit pension(a pension that pays a retiree and their beneficiary a set amount for the length of their retirement)and a deferred compensation program that is funded through employee contributions. Each of the three tiers pays a different benefit and an employee's placement in a given tier is based on the date they were hired. Tier I is the most generous benefit and has on option for an annuity based retirement that has been incredibly expensive to maintain. Tier I was replaced by Tier II in 1996. Tier II costs,though reduced,were also unsustainable and were replaced with a third tier,known as the Oregon Public Service Retirement Plan(OPSRP)which is designed to provide a 45 percent salary replacement after a full career. A primer on the PERS system may be found here. The cost to employers for this system has risen steadily since the market crash of 2008,and will increase again on July 1,2019 (projected individual employer rates may be found here) and then again in 2021 and possibly again in 2023. Rates are anticipated to remain at a system wide average of around 29 percent of payroll and remain at that level until 2035 without reforms. Adverse court rulings to previous attempts at reforms have limited our options to addressing benefits not yet earned. With that in mind the Human Resources Committee recommends reforms in the three following areas: • Ensure that investments into the PERS system are achieving the maximum possible return in the most efficient manner possible while safeguarding the funds with proper financial controls. • Requiring that employees absorb some of the costs for the pension system but ensure that OPSRP employees are impacted more favorably than Tier I and Tier II employees who will receive more generous retirement benefits. • Establishing a fourth tier that provides similar benefits to employees but is funded in a more sustainable manner. Providing incentives to retirees and current employees in the other tiers to switch to the fourth tiers should be explored as well. Presented by the Human Resources Committee P. PERS Unfunded Liability Revenue Stream Dedication Legislation: The League proposes that a new state revenue stream be dedicated to paying down the unfunded liability over a period of years to sustain the Public Employees Retirement System(PERS). Background: The present unfunded liability has grown extraordinarily large and is causing rate increases for most local governments and schools that are not sustainable. The League would support all reasonable revenue stream ideas. Ideas include but are not limited to a new temporary limited sales tax, a new payroll tax,and a new temporary state property tax.The League will advocate that PERS cost-containment measures be pursued along-side revenue raising efforts to pay down the liability;both seem necessary to address the state-created problem. Presented the Finance and Tax Committee and endorsed by the Human Resources Committee Q. PIace-Based,Water Resource Planning(Program Support) Legislation: The League will advocate for the funding needed to complete existing place-based planning efforts across the state. Background: Oregon's water supply management issues have become exceedingly complex. Lack of adequate water supply and storage capacity to meet existing and future needs is an ongoing concern for many cities in Oregon and is a shared concern for other types of water users including agricultural,environmental and industrial. Most of the surface water in Oregon(during peak season months)is fully allocated with no new water available. As a result,the ability to meet existing and future demand for various water uses will require collaboration,improved management and coordinated conservation among a variety of stakeholders,including municipalities. For this reason,the Legislature passed legislation to create a place- based planning pilot program in Oregon. This program,administered through the Oregon Water Resources Department,is providing a framework and funding for local stakeholders to collaborate and develop solutions to address water needs within a watershed,basin or groundwater area. Place-based planning is intended to provide an opportunity for coordinated efforts and the creation/implementation of a shared vision to address water supply challenges. Four place-based planning efforts are currently underway across the state in the Malheur Lake Basin,Lower John Day sub-basin,Upper Grande Ronde sub-basin and mid-coast region. Without continued funding,these efforts will not be able to complete their work. The LOC Water&Wastewater Policy Committee recognized that while this funding is limited to specific geographic areas, they also recognize the importance of successfully completing these pilot efforts and conducting a detailed cost/benefit analysis. It is a critical step in order to demonstrate the benefits of this type of planning. If these local planning efforts prove to be successful,there will likely be future efforts to secure additional funding for other place-based planning projects across the state. R. Property Tax Reform Legislation: The League of Oregon Cities proposes that the property tax system should be constitutionally and statutorily reformed as part of the 2019 session work on state and local tax reform and improving funding for schools(see pages 69-72 of link;property taxes make up 1/3 of school funding). Background: The property tax system is broken and in need of repair due to Measures 5 and 50,which are both now over 20 years old. All local governments and schools rely heavily on property tax revenues to pay for services and capital expenses. Therefore,the League will participate in coalitions to help draft and advocate for both comprehensive and incremental property tax reform option packages. The League will remain flexible to support all legislation that improves the system,with a focus on a property tax package with these elements: • To achieve equity, a system that transitions to a market-based property tax valuation system (RMV)rather than the present complex valuation system from Measure 50(requires constitutional referral). • To enhance fairness and adequacy,a system that makes various statutory changes, some of which would adjust the impact of a return to RMV. For example,the League supports a new reasonable homestead exemption(percentage of RMV with a cap)but also supports limiting or repealing various property tax exemptions that do not have a reasonable return on investment. • To restore choice,a system that allows voters to adopt tax levies and establish tax rates outside of current limits(requires constitutional referral). SIR 3 (see page 50 of link)(constitutional referral with return to real market value system)and se 151 (see page 48 of link)(homestead exemption bill)from the 2017 session will likely serve as starting points. City property tax data including real market values and assessed values can be accessed here. Presented by the Finance and Tax Committee S. Qualification Based Selection(QBS) Legislation: The League will seek to reform the Qualification Based Selection(QBS)requirements to allow for the consideration of price in the initial selection of architects,engineers,photogrammetrists and surveyors. Background: The state currently prohibits the consideration of price when making an initial selection when awarding contracts for certain design professionals when conducting public improvements. Instead of issuing a request for proposals as is done with most public improvement projects, contracting agencies issue "requests for qualifications"on a project. Cities may negotiate price only after the initial selection of a contractor is made.Under this system a city or other contracting agency will never know the price of other qualified and responsible bidders on a project. The League's General Government Committee concluded that this process is not in the interests of cities or tax payers as it precludes the use of competitive bids. There is no other area in which a consumer,public or private,would procure a service or product without considering the price. Presented by the General Government Committee T. Right-of-Way and Franchise Fee Authority Legislation: Oppose legislation that,in any way,preempts local authority to manage public rights-of-way and cities' ability to set the rate of compensation for the use of such rights-of-way. Background: In its commitment to the protection of Home Rule and local control,the League consistently opposes restrictions on the rights of cities to manage their own affairs.From time to time,in the context of public rights-of-way management authority discussions,proposals to restrict to this authority arise. Such was the case during the 2017 legislative session with SB 202 and SB 840. These efforts to restrict local authority often include proposals for a statewide right-of-way access policy and compensation system as well as limiting the ability of cities to charge fees of other government entities.This is contrary to local government management authority; the ability to enter into agreements with users of the right-of-way either by agreement/contract or ordinance; and to set the rate of compensation. Presented by the Telecom,Broadband&Cable Committee U. Safe Routes to School Match Legislation: Introduce legislation lowering the local Safe Routes to Schools matching grant requirement to 20 percent from 40 percent and lowering the matching grant requirement for areas qualifying for exceptions to 10 percent from 20 percent. Background: Section 123 of HB 2017(enacted in 2017)authorizes the Oregon Transportation Commission to provide matching grants for safety improvement projects near schools.To receive the grant cities must provide a 40 percent cash match unless the school is located in a city with a population of less than 5,000;is within a safety corridor; or qualifies as a Title I school in which case the cash match requirement is reduced to 20 percent.While cities support the availability of matching grant funds provided by the state,the current cash match requirements are too high for most cities to participate in the program. Presented by the Transportation Committee V. Small Area Cell Deployment(also known as"Small Cell Deployment") Legislation: Oppose legislation that preempts local authority to manage public property while supporting deployment of wireless technology,including small area cell and 5G. Background: Legislative efforts involving the deployment of small area cell facilities are increasing around the nation. Currently 20 states(Arizona, Colorado, Delaware, Florida,Hawaii, Illinois, Indiana, Iowa,Kansas, Minnesota, North Carolina, New Mexico,Ohio, Oklahoma, Rhode Island,Tennessee,Texas,Utah,Virginia.and Washington)have passed bills that limit cities ability to collect appropriate and fair rights-of-way,permitting,and lease fees on municipal property;to control their own design and aesthetics; or otherwise manage wireless technology deployment within their jurisdictions. This type of legislation is not going away. In fact,it is just beginning. During the 2017 session,the League was approached independently by representatives of two wireless companies with draft concepts that could have resulted in legislation compromising local authority to manage the deployment of small area cell and 5G technology. Issues raised included"shot clock"(time allowed for cities to rule on applications),fee structures and limits,contract terms and duration,land use issues etc. These efforts are expected to continue in 2019 and with greater urgency as the technology approaches deployment status.While cities in Oregon support the advent of new wireless technology including small cell and 5G, authority to ensure their deployment complies with local laws and policies must be maintained. Presented by the Telecom, Broadband&Cable Committee W. Speed Cameras Legislation: Introduce and/or support legislation authorizing cities to use fixed speed cameras at locations other than intersections. Background: Speeding is a public safety issue.The Oregon Transportation Safety Action Plan envisions no deaths or life-changing injuries on Oregon's transportation system by 2035. Currently, cities have the authority as a result of HB 2409(enacted in 2017)to issue a speeding citation from the same camera and sensor system used to enforce red light compliance at intersections. Further,speeding does not only occur at intersections.Additional automated enforcement,outside of intersections,would be a valuable a tool allowing cities to mitigate dangerous behaviors and speeding. In 2015,the Oregon Legislature granted the city of Portland the authority to implement a fixed speed safety camera program(HB 2621). The fixed speed camera systems have been operating on"urban high crash corridors"that are also part of the city of Portland's High Crash Network.While this program has not been in place long,the comparison of before and after speeds near the fixed photo radar system is indicating that the automated enforcement is positively influencing speed reduction(see PBOT report). This legislation would extend the authority to all Oregon cities to implement fixed speed safety camera programs to help reduce the number of deaths and serious injuries that occur as a result of speeding. Presented by the Transportation Committee X. Speed Limit Methodology Legislation: Introduce legislation that directs the Oregon Department of Transportation to develop a new speed setting methodology for cities and other urban areas that uses a safe systems approach validated by expert system tools as recommended by NTSB Safety Study SS-17/01, Background: The NTSB safety recommendations represent current data-driven best practices to determine speed limits. Currently, Oregon speed limits are set based on the guidance that speed limits in speed zones within cities should be within 10 mph of the 85th percentile speed as determined by .... The NTSB Safety Study SS- 17i01,"Reducing Speeding-Related Crashes Involving Passenger Vehicles"concludes, • "Speed increases the injury severity of a crash;" • "...that unintended consequences of the reliance on using the 85th percentile speed for changing speed limits in speed zones include higher operating speeds and new,higher 85th percentile speeds in the speed zones, and an increase in operating speeds outside the speed zones;" • "...that the safe system approach to setting speed limits in urban areas is an improvement over conventional approaches because it considers the vulnerability of all road users." Presented by the Transportation Committee Y Third Party Building Inspection Legislation: The League will clarify the ability for local government programs to have private party building officials and building inspectors provide services for local building inspection programs, including recognizing that privately employed specialized inspectors can to perform specialized inspections. Background: Beginning in 2017,the League has been working to defend local building inspection programs that contract with third-party companies to provide building official and inspectors to run the local program. However, the Oregon Building Codes Division(BCD)has stated that the Oregon Department of Justice (DOJ)has informed BCD that programs that are structured this way violate the constitutional prohibition on delegating government authority. The League has repeatedly asserted that we disagree with that legal assessment. There was a bill introduced in 2018,HB 4086,that would have adopted new requirements for local governments running programs. The League worked with other stakeholders to prevent passage of the bill,but we committed to working on a legally defensible solution that does not prevent these locally run programs from continuing. After the session,the BCD determined that it would implement new rules for locally run inspection programs to meet the asserted legal opinion on delegation. On April 23, the BCD enacted emergency, temporary rules that added significant requirements for local building inspection programs. The new rules required local programs to designate a government employee as a city's building official. The rules also required the city to have a government-employed, certified electrical inspector. Both positions could be filled by hiring the person directly or by an agreement between municipalities to share the employee(s). The rules further stated that a shared employee could only service three jurisdictions. In May,the Director of the Consumer and Business Services,who oversees the BCD,informed the League that the temporary rules were rescinded. The Department's decision to rescind the rules included a statement that they would seek a formal opinion from the DOJ to clarify the issue of delegation. However, the BCD did replace the rescinded rules with another temporary,emergency rule. This new rule was enacted on May 18 and states that a local government must appoint a government-employed building official. In addition to the concerns about using third-party building officials,there is currently statutory prohibition on specialized inspectors that are employed in the private sector to complete specialized inspections. There are a limited number of these inspectors,and,without removal of this prohibition,larger scale projects will not be able to move forward because they cannot be inspected and permitted. This issue was the catalyst for the overall discussion related to third-party building officials,but is not related to the asserted legal claims. There is a commitment to work on this issue in the 2019 session,but it remains an issue of high concern as it directly impacts the flexibility of local government choice on how to provide services at the local level. Using third-party providers allows smaller jurisdictions to have local,efficient programs that provide clarity for the local development community. It also allows a base of business for these companies,which also serve to provide over-flow capacity to programs that primarily staff these programs with government staff. Therefore,this issue is vital to the long-term success of locally run building inspection programs. Presented by the Community Development Committee Z. Tobacco Taxes Share Increase Legislation: The League proposes seeking a share of all state tobacco product tax revenues .to assist with rising public safety costs and provide state shared revenue equity. Background: Only cigarette tax revenues are included in the state-shared revenue distribution to cities and those revenues are decreasing;cities receive about 2%of the cigarette tax revenues or$3.6 million a year under the formula. Other tobacco(chew,snuff,cigars,pipe tobacco,etc.)is also taxed by the state and those revenues have been increasing(now over$60 million a year),but those revenues are distributed only to the state. Cities are preempted from taxing cigarettes and other tobacco products. However,cities are often left to enforce tobacco laws and handle sales and use complaints. The League proposes that cities should receive a fair share of all the tobacco tax revenues. The League anticipates that excise tax increases to cigarettes and other tobacco products,and a new vaping tax will be a part of revenue package discussions in 2019,and the League sees this concept as an important leveraging tool. Presented by the Finance and Tax Committee AA. Waste Water Technical Assistance Program Legislation: The League will advocate for the creation of a circuit rider program,within the Department of Environmental Quality,to provide needed technical assistance for communities on water quality issues, including wastewater treatment and permit compliance options. Staffing for the circuit rider program would be provided through a third-party contract(or contracts). The League will work to identify funding resources to support this program,including a possible set aside of Oregon's federal Clean Water State Revolving funds. Background: As Clean Water Act requirements for public wastewater systems continue to evolve,with new and more stringent requirements being placed on a number of Oregon communities;cities have expressed concern over how best to comply with those requirements, especially with the limited technical and financial resources that many face.The League's Water&Wastewater Committee discussed the need for technical assistance for communities experiencing these challenges and looked to an existing program within the Oregon Health Authority's(OHA)Drinking Water Services division as a template for addressing this need.The OHA funds a circuit rider program through a third-party contract.The program is funded through federal Drinking Water State Revolving Loan Funds. The program is intended to help more communities be successful in complying with state and federal requirements. The services provided through the program are free for communities with populations of less than 10,000. Presented by the Water/Wastewater Committee BB.Wetland Development Permitting Legislation: The League shall work to establish legislative authority for the Department of State Lands to assume the federal program from the U.S.Army Corps of Engineers under section 404 of the Clean Water Act. Background: In many communities looking to develop in the wetlands creates regulatory uncertainty,particularly where development is occurring in previously un-identified wetlands,because there are two agencies that must provide permits,the Oregon Department of State Lands(DSL)and the U.S.Army Corps of Engineers (USACE). The state's process has set deadlines which provides certainty for developers. However,the USACE process is much less consistent or timely. This uncertainty increases risk related to development that can cause projects to stop before they start. In a time where cities are trying to encourage development to meet the housing shortages and economic development goals to support citizens,any increased barriers can impact success. There is a process in place at the federal level that would allow for the state to assume the USACE permitting process increasing the efficiency and certainty in the process. The state has taken steps in the past to ensure alignment of the state program to the requirements for federal approval. However,there were concerns raised at the time that the process related to the Endangered Species Act and cultural resource protections. The DSL has continued to work on these conflicts and believes it is positioned to work with the federal government to assume the federal permitting process if so authorized by the state legislature. For further information,the DLS provided a presentation for the committee,available here. Presented by the Community Development Committee CC. Wood Smoke Reduction Program Support Legislation: Support increased funding to support local wood smoke reduction programs and efforts. The League will advocate the need for an additional $3-5 million,recognizing that any additional funding to assist communities is helpful. Background: Woodstove smoke is one of the most significant sources of fine particulate and toxic air pollution in Oregon,often jeopardizing public health and putting communities at risk of violating federal air quality standards. Woodstove smoke is a problem for many Oregon communities that struggle with both the public health impacts and economic threat of being designated as nonattainment under the federal Clean Air Act. To address this challenge,local governments need access to funding for wood smoke reduction programs. Such programs have proven effective at reducing wood smoke in communities and include public education,enforcement,incentives for woodstove change-outs(to ductless heat pumps or certified stoves,weatherization assistance for low-income households and providing residents with thy, seasoned fire wood which burns cleaner. A 2016 taskforce report that was submitted to the Legislature indicated that there are approximately 150,000 uncertified stoves in the state,and that while Oregon has a long and successful history of replacing woodstoves in certain communities,money is sporadic and limited. The report went on to suggest that"an allocation in the range of$3-5 million per biennium could target high-risk communities and would support a meaningful level of effort to replace old,dirty woodstoves." In 2017,the Legislature provided$250,000 in funding for community wood smoke reduction programs. The need for local communities,including a number of small cities,is much greater. Presented by the Energy&Environment Committee AIS-3528 6. Business Meeting Meeting Date: 07/24/2018 Length (in minutes):60 Minutes Agenda Title: Consider Resolution Acknowledging Equitable I-lousing Strategy for SW Corridor Submitted By: Sean Farrelly,Community Development Item Type: Resolution Meeting Type: Council Business Meeting Update,Discussion,Direct Staff -Main Public Hearing: No Publication Date: Information ISSUE Consider a resolution acknowledging the SW Corridor Equitable Housing Strategy report. STAFF RECOMMENDATION / ACTION REQUEST Staff recommends approval of the resolution. KEY FACTS AND INFORMATION SUMMARY Regionally and locally,it is increasingly challenging for many people to find an affordable place to live. In Tigard,22.7 percent of renter households and 9.7 percent of owner-occupied households are cost-burdened; that is,they spend more than 50 percent of their income on housing costs. Home prices and rents are both escalating. In the past 5 years, the average rent for a 2-bedroom apartment in Downtown Tigard has spiked by 90 percent. In 2017,the median listing price for a single-family house in Tigard was $430K, 14% higher than in Hillsboro and 17%higher than in Beaverton. The potential investment of light rail in the SW Corridor presents an opportunity to plan for equitable transit oriented development that will expand housing options for all residents. There are 39,665 total households in the SW Corridor (44.5%rental households and 57.5% owner occupied households) and only 775 regulated affordable rental units. Most of the low income households in the SW Corridor live in"naturally occurring affordable housing,"i.e. unregulated market-rate housing that,because of age and relative lack of amenities, rents at lower than average rates. A recent study documented that many of these rental properties are being purchased, often resulting in sharp rent increases that many tenants cannot afford. To proactively address the potential for additional displacement and housing instability,Tigard staff has been working with the City of Portland on the SW Corridor Equitable Housing Strategy (Exhibit A).The cities worked with SW Corridor stakeholders (tenant groups, developers,community-based organizations,and funders) in the SW Corridor Equity and Housing Group. The Town Center Advisory Commission was briefed on the report at their May meeting. The Strategy report contains a toolbox of potential implementation strategies. The recommended strategies in the report are organized into three goals with associated strategies: Goal 1. Commit early financial resources to address the near-term housing crisis and long-term needs. Strategy 1-1: Grow new resources for the long-term Strategy 1-2: Prioritize existing resources early on Strategy 1-3: Strengthen partners to steward and champion the strategy Goal 2. Prevent residential and cultural displacement Strategy 2-1: Preserve existing unregulated affordable rental housing Strategy 2-2: Strengthen tenant protections and provide anti-displacement services Goal 3. Increase choices for new homes for all household types and incomes Strategy 3-1: Secure and develop opportunity sites for new construction of equitable Transit Oriented Development Strategy 3-2: Regulate land use and zoning to create affordable and market rate housing Some of the recommendations under each strategy are relevant to both cities,and some only to the City of Portland.Tigard is already employing some of the strategies. For example,Tigard and Portland worked together to encourage TriMet to make at least four (and potentially more) remnant parcels from the light rail project available for new affordable housing development.This would be accomplished through a Memorandum of Understanding (MOU) between TriMet and Tigard,Washington County,City of Portland, and Metro, to clearly define housing goals and ways to take advantage of redevelopment opportunities and partnerships in connection with light rail construction.Tigard also has utilized the strategies of using urban renewal funds to support new affordable housing development and promoting existing incentives (SDC and property tax exemption). Tigard staff are also gathering input on missing middle housing tools and policies as part of its Housing Options project. The actual need for housing in Tigard over the next 10 years is estimated at 1,580 affordable homes (4,240 in the overall SW Corridor). The strategy recommends a"stretch" target for Tigard,if new financial resources are made available,of 900 homes acquired and constructed. This would meet 48%-58% of the projected need. The City could make progress toward this goal working with partners such as non-profit and for-profit developers,TriMet (for remnant parcel development) and Washington County Department of Housing Services. Potential funding resources include the Metro housing bond (if approved by voters),Tigard urban renewal funds,and grants. In the next 2-3 years Tigard will make significant progress on this target with Washington County's The Fields and CPAH's Red Rock Commons developments. The SW Corridor Equitable Housing Strategy is an important roadmap to align policies and housing investments,but it does not directly change city policies. The strategy will inform future discussions and actions to address this critical issue. OTHER ALTERNATIVES Council could decide to revise or not to adopt the proposed resolution. COUNCIL GOALS, POLICIES,APPROVED MASTER PLANS Tigard City Council Goals 2017-19 Goal 4: Pursue the Development of Light Rail Along the SW Corridor •Development of three light rail stations including one Downtown and two in the Tigard Triangle oConstruction of affordable housing in the Triangle and downtown near transit stations,including replacement housing for"at risk" units due to SWC light rail construction concurrent with,or prior to,light rail construction. Issues for Further Council Discussion and Policy Direction •Affordable Housing: Consider additional program or policy initiatives Tigard Comprehensive Plan Chapter 10: Housing Goal 10.1:Provide opportunities for a variety of housing types at a range of price levels to meet the diverse housing needs of current and future City residents. Policy 10.1.3. The City shall support housing affordability,special-needs housing,ownership opportunities,and housing rehabilitation through programs administered by the state,Washington County,nonprofit agencies, and Metro. DATES OF PREVIOUS COUNCIL CONSIDERATION March 20, 2018 SW Corridor update and discussion 4 Attachments Resolution Exhibit A • AgendaQuick©2005-2018 Destiny Software Inc.,All Rights Reserved CITY OF TIGARD,OREGON TIGARD CITY COUNCIL RESOLUTION NO. 18- A RESOLUTION ACKNOWLEDGING THE SW CORRIDOR EQUITABLE HOUSING STRATEGY REPORT. WHEREAS,Tigard City Council's Goals for 2017-19 included considering additional affordable housing program or policy initiatives as an issue for further Council discussion and policy direction;and WHEREAS,there has been a significant increase in the number of households spending more than 50 percent of their income on housing costs in Tigard,the SW Corridor, and in the larger region; and WHEREAS,the potential investment of light rail in the SW Corridor presents an occasion to plan for more housing choices and opportunity in the SW Corridor; and WHEREAS,the City of Tigard collaborated with the City of Portland on developing the SW Corridor Equitable Housing Strategy report over to pro-actively address housing issues in the SW Corridor; and WHEREAS,the SW Corridor Equity and Housing Group (a committee of corridor stakeholders) endorsed the strategy;and WHEREAS, the SW Corridor Equitable Housing Strategy report presents a toolbox of potential implementation strategies, with the goals of committing early financial resources to address near-term housing crisis and long-term needs;preventing residential and cultural displacement;and increasing choices for new homes for all households types,and incomes;and WHEREAS,approval of this resolution will not directly change any city policy, but will inform future discussions and actions. NOW, THEREFORE,BE IT RESOLVED by the Tigard City Council that: SECTION 1: The Tigard City Council hereby acknowledges the SW Corridor Equitable Housing Strategy report (Exhibit A)to inform future discussions and actions regarding housing policy in the SW Corridor. SECTION 2: This resolution is effective immediately upon passage. PASSED: This day of 2018. Mayor- City of Tigard ATTEST: City Recorder- City of Tigard RESOLUTION NO. 18- Page 1 k , rp / '''-i, ' ' * .,,r-vb,,, , v 1::::1 L--- ,, ,4 , ,. , NJ _ -,-::- , --,,,,.. :' i ‘ 1%,:, 1 _ , ,. . a Ig1. am'::-...1,‘,..;. _ + , .1'74'. - ts 4. i. a ( SW Corridor Equitable HStrategy BRINGING MORE HOUSING CHOICES AND OPPORTUNITY TO SOUTHWEST PORTLAND AND TIGARD 414,,7i, .:.:1:41.77.1,,bt,...„7. - i„6., „.. :. ._:.1,, ,,, ,,Te:.;„..:,,,,,,,,,,,,E,,,:m.: :._, 4,00w. . , „, - ., ._.. _ il : 1 Cm''. i ,:: — 'F':11-.'i, ''''''ft:-'‘,,' : l'.:--''1,,,.....',,,., L;i:,.1,11;3 m "Rents are rising in Tigard and many residents Qoa1�4tia are in danger of being priced out of their a ';� 0 neighborhoods.We need to find an equitable way ; a, 1111 ' A i to bring much-needed transit to the SW Corridor r, d/8.5.1.. am° TIGARD without increasing housing costs even more:' —Tigard Mayor John Cook JULY2018 "To ensure the SW Corridor is a place of opportunity www.portlandoregon.gov/bps/equitablehousing for all,we need to bring public and private partners together to achieve our common goals around housing affordability and choice:' —Portland Mayor Ted Wheeler Acknowledgements This report was written by the City of Portland Bureau of Planning and Sustainability with significant contributions from the Portland Housing Bureau, City of Tigard, and consultants. The project is partially funded by a Metro Community Planning and Development Grant. SW Corridor Equity and Housing Advisory Group HomeForward Momentum Alliance OPAL Environmental Justice Oregon Muslim Educational Trust Community Partners for Affordable Housing UniteOregon Community Alliance of Tenants Community Housing Fund TriMet Network for Oregon Affordable Housing Winkler Development Turtle Island Development Meyer Memorial Trust Housing Authority of Washington County Bureau of Planning and Sustainability City of Tigard Ted Wheeler, Mayor, Commissioner-in-charge Kenny Asher, Community Development Director Susan Anderson, Director Sean Farrelly, Redevelopment Project Manager Joe Zehnder, Chief Planner Eric Engstrom, Principal Planner Portland Housing Bureau Ryan Curren, Project Manager Shannon Callahan, Director Jena Hughes, Planning Assistant Matthew Tschabold,Assistant Director Nick Kobel,Associate Planner Antoinette Pietka, Data Analytics Manager Samuel Garcia, Planning Assistant Karl Dinkelspiel, Housing Investment Manager Jill Chen, Housing Investment Coordinator Project Consultants Bimal RajBhandary, Data Analytics Lisa Bates, Ph.D, Portland State University Barrett Elbright Karnes, Homeownership Specialist Emily Picha, ECONorthwest Lorelei Juntunen, ECONorthwest Portland Bureau of Transportation Susan Anderson, Enterprise Community Partners Teresa Boyle, Major Projects and Partnerships Devin Culbertson, Enterprise Community Partners Manager Anita Yap, MultiCultural Collaborative John Gillam, Major Projects and Partnerships Kirsten Greene, Enviroissues Kathryn Levine, Streetcar Division Manager Caitlin Reff, Project Manager Other Contributors Neil Loehlein, BPS GIS Mapping Prosper Portland Leslie Wilson, BPS Graphics Justin Douglas, Policy and Research Manager Eden Dabbs, BPS Communications Joan Frederikson, BPS District Planner Metro Emily Lieb, Equitable Housing Initiative Manager All supporting materials and maps developed for this project are available at: www.portlandoregon.gov/bps/equitablehousing All photographs courtesy of City of Portland, Community Partners for Affordable Housing, and HomeForward. 1 I MARCH 2018 I DISCUSSION DRAFT SW CORRIDOR EQUITABLE HOUSING STRATEGY Table of Contents 1. Preface 3 2. Section 1: Introducing A New Model of Equitable Growth 5 3. Section 2: Defining the Housing Need and Setting Targets 12 4. Section 3: Implementation Strategies and Sequencing 17 5. Section 4: Opportunity Sites 31 6. Section 5: Stewardship Structure and Accountability 32 7. Appendices 38 2 MARCH 2018 I DISCUSSION DRAFT SW CORRIDOR EQUITABLE HOUSING STRATEGY Good transit in the SW Corridor NI •• q ffordable Homes aid ••• •l• ••■ Apy ..: .. • =,`Ilia s •s; mai . •�• in min Sie p a e ae1■ ■I 1111r Aye A; �# — i; Itt Preface In 2016 the Portland City Council directed the Bureau of Planning and Sustainability (BPS) to develop a housing strategy in anticipation of potential investment in a new light rail line from Downtown Portland to Bridgeport Village. The City of Tigard joined the partnership to help secure a planning grant from Metro to partially fund this work.The Portland Housing Bureau (PHB)then joined to co-lead this work with BPS and Tigard. This housing strategy is nested within the SW Corridor Equitable Development Strategy, a broader planning effort led by Metro that addresses workforce and economic development needs in addition to housing. Tigard and Portland city councils will consider adopting the final SW Corridor Equitable Housing Strategy in the summer of 2018, prior to the adoption of the Locally Preferred Alternative for the light rail project. Project Summary The SW Corridor Equitable Housing Strategy is a unified, strategic approach to housing for the entire corridor. It sets goals and provides a roadmap to align policies and housing investments to: • Prevent displacement of vulnerable households. • Increase housing choices for all people over the next 10 years. A separate report, "SW Corridor Equity and Housing Needs Assessment," accompanies this SW Corridor Equitable Housing Strategy document. What's in this report? This report consists of six sections: Section 1 introduces the project's vision and goals, partners, and big ideas. • Section 2 describes the total affordable housing need in the corridor and proposes preservation and construction targets for both affordable and market rate rental housing. • Section 3 details the implementation strategies and recommended actions. • Section 4 describes the work to date on key opportunity sites for new affordable and mixed-income transit-oriented development. • Section 5 describes the opportunity to form an organizational structure to oversee the housing strategy. SW CORRIDOR EQUITABLE HOUSING STRATEGY DISCUSSION DRAFT I MARCH 2018 I 3 SW Corridor Light Rail and Amenities , '' 1 IV...: l STAPORTLAND y Y �,�/ t' UNIVERSITY f' - ti oita , 6 .1.0%Y' / ci -y �` rj fir, '-'7-Ti: _ ibcn 6 OVER/GIBBS j:„.4.-r /\- 'e'''''') ELI i (il OHSU -.a OHSU i j _i ._ f-- .j ' •MILTON - " ! Portland 05 ` _= IP \ 1-..i ' i _ Zupan's i Fred Meyer A ..'.~:.r" 7' H ' CUSTER i l nft y,. A7.1 TH AVE/CAPITOL HILL o „ ID AVE/SPtNG GARDEN /1 - ..F , rr' 26TH AVE a ''30TH AVE LEGEND Barbur World I ` i Walgr 1.P1�ARBUR TRANSIT -- Potential light rail alignment 7 --s CENTER sJ; j ,, -Ctr Potential light rail stations 0— a! i j Hospitals 0; +'''53RD AVE _ K-12 schools Tial'E . Fred Meyer g 1 N PORTLAND Post secondary schools COMMUNITY,—,.. businesses Cott- y- j 1"! r . Major NTAo C) N,- A , IX': ' /BAYLOR j 1 ,.•• A Large chain grocery stores Wal' 's, l ,r „1 ?>• II : A Small independent grocery 'AI ~O \ -*_17 HAVE/BEVELAND A Farmer's markets TIGARD TOWN CENTER ` H Parks and/or natural areas WALL/CLINTONN/ASH School lands -r City boundary tm. Affordable Housing Regulated Units: ,, C 0 1-21 \J BONITA 0 22-55 0 pa 0 56-122 is UPPER BOONES FERRY A i I (Miles j NORTH 0 1 City of Portland,Oregon I Bureau of Planning and Sustainability ' WalgreensGeographic Information System R(DGEPORT VILLAGE ,he mformatron on Pm map W.de ed horn tity of Portland GIS databases Care -- taken n they atonof this map but it prowled'as is:the City of Portland•5515 -- <, --- — - cannor aaeptanyrespomibidtyf r.asv enomons or postanal art wary 4 MARCH 2018 I DISCUSSION DRAFT SW CORRIDOR EQUITABLE HOUSING STRATEGY 1: Introducing a New Model of Equitable Growth Fulfilling the promise of complete communities with housing choices and opportunity The Portland Metro area's transit system is expanding to better connect the SW Corridor with the rest of the region -during a housing crisis.The current crisis and lack of transportation options in the corridor are hindering people's quality of life in the area and ability to access jobs and educational opportunities.These conditions also create obstacles to achieving the region's long-range growth plans. The investment in light rail will attract additional investments in housing, providing an opportunity to address this housing crisis and the long-standing racial disparities and underlying income inequality that exacerbate it. A vision of equitable growth must reflect the realities of the current housing crisis while also planting the seeds for a future where everyone can reach their true potential. Where people have the capacity to strengthen their communities and determine their own future and that of their neighborhoods. To achieve this vision,we must acknowledge some of the unique barriers facing low-income households and communities of color: • inadequate public and private investment to meet their needs, • involuntary economic and cultural displacement pressures and • lack of housing choices in neighborhoods with access to quality jobs, education, and other key determinants of social, physical, and economic well-being. To address these barriers, this housing strategy has three primary goals: 1. Commit early financial resources to address the near-term housing crisis and long-term needs.The region is experiencing a significant increase in population, unprecedented prosperity and a corresponding housing crisis.This is our opportunity to align existing resources and raise new revenue to invest in affordable housing infrastructure. 2. Prevent residential and cultural displacement. People and communities that are stable and resilient in the face of displacement pressures fare better and have more opportunities to strengthen and give back to their communities. Immediate action is needed to preserve existing affordable housing and stabilize current households with anti-displacement services. 3. Increase choices for new homes for all household types and incomes. Diversity benefits us all. Research has shown that diverse regions have economies that are more robust—for everyone. Culturally and economically diverse people must be drawn to the area by the quality of life and housing options. We also know where you live has a big impact on how your life unfolds, and that varies tremendously by neighborhood.A pipeline of opportunity sites and supportive land use tools helps ensure that all new residents have a range of choices about where to live. "I moved to Portland in 2005 and then moved to Woodburn in 2015 when my family needed more space. We moved back to SW Portland this year. When I left Portland, things were much cheaper. Finding a place was easier. Now, landlords ask if you make three times the money for rent and now is up in the sky. The apartment I rented in 2007 was$650, and today a friend of mine rents the same apartment for$1,250." -Amina Omar, SW Portland renter SW CORRIDOR EQUITABLE HOUSING STRATEGY DISCUSSION DRAFT I MARCH 2018 15 Defining Key Terms Equitable transit-oriented development Transit-oriented development(TOD) is a pattern of growth typified by higher density development with a mix of uses within walking distance of high frequency transit. Equitable TOD is dense growth around transit that promotes economically and culturally diverse residential and employment opportunities. Housing cost burden Housing cost burden occurs when households spend more than 30 percent of their income on housing. Severely cost burden occurs when households spend more than 50 percent of their income on housing. Median family income The point where income distribution is divided into two equal parts: half of the incomes fall below the median income and half fall above the median income.The MFI is calculated at a regional level for different household sizes. Regulated affordable housing Housing with a regulatory agreement tied to the deed that requires affordability for an established income level for a defined period of time. Unregulated affordable housing Lower-cost market-rate rental housing. THE PORT(" AND � �J, nar PLAN -_-_ �Ot.ST rift po ��`�•Qs41.x`'ch N PI'4�Ll1440 o� •k- o COMPREHENSIVE ^j Wv LOCAL PLANS r" PLAN O > rn ^4 INFORM THE EQUITABLE 4" o .ir t. cc- HOUSING STRATEGY aNJ � ' =' z 05e '04n `o,cipr BaR v\.0 M. A.6UR g.... '�z SDNSE% `+ . A ItAM 6 MARCH 2018 I DISCUSSION DRAFT SW CORRIDOR EQUITABLE HOUSING STRATEGY Lessons from Research: Past and Present We have an opportunity to learn from mistakes of SW Corridor Historical Context the past and write a new story for how new light rail lines can benefit all communities. Past freight and auto infrastructure projects, land use regulations, and real estate practices shaped the growth The North Interstate Housing Strategy taught us that in SW Portland for generations and thus are helpful having good housing policies and intentions are not context for this housing strategy(See Appendix 1 for enough. Early action and bold housing investments more history). Investments like freight rail, 1-5, and the were needed. Instead displacement occurred as the Ross Island Bridge split low-income neighborhoods, area continued to become more desirable and depressed their home values and exposed residents to housing cost rose.While some people benefited pollution. Redlining along sections of Barbur and racially from the change, many more were forced to move. restrictive covenants in the surrounding neighborhoods While this outcome had many causes, it is clear that contributed to fewer people of color living in SW and a fully funded anti-displacement strategy could have those who did move in were more likely to live along the stemmed the tide of displacement. corridor. Recent research out of Northeastern UniversityHome Owners Loan Corporation 1938 Map • shows the experience along North Interstate is not {,¢ ' the exception. They analyzed neighborhood change ." �` $. at x, in 42 neighborhoods in 12 metropolitan areas that received new transit investment between 1990 and " 2000.They found when new transit is introduced _a f, ,,�,t 1 e t; Fn "the most predominate pattern is one in which ':` "' _2" •Techousing becomes more expensive, neighborhood '"i #' residents become wealthier and vehicle ownership ,:rte } ,4 I , �. �'-��C,Iri �iz'11 becomes more common.»1 4, In North Portland, neighborhood change also had ....R ��;,y, the unintended long-term consequence of reducing PoE, — �, g „ f transit ridership as new higher-income households j "' opted out of the transit system.2 TriMet's experience in North Portland exemplifies the major finding of M r�• 7-4-. the Northeastern University research: "There is a symbiotic relationship between diverse neighborhoods and successful transit:transit systems benefit from and depend on racial and economic diversity in the neighborhoods they serve,just as low-income households and people of color depend on and benefit from living in neighborhoods served by transit."3 This new knowledge coupled with the current crisis led the Portland City Council to direct the Bureau of Planning and Sustainability to develop a housing strategy to be adopted alongside the plan for the light rail project. The City of Tigard and the Portland Housing Bureau joined BPS to co-lead the process. A solid equitable growth policy framework exists and several current plans have laid a foundation for this strategy -most recently the Barbur Concept Plan, the Portland Plan, and Tigard and Portland Comprehensive Plans. 1 Pollack,Stephanie, Barry Bluestone,and Chase Billingham.2010. Maintaining Diversity in America's Transit-Rich Neighborhoods:Tools for Equitable Neighborhood Change.Boston, MA. Dukakis Center for Urban and Regional Policy at Northeastern University. 2 Transit Center,"In Portland, Economic Displacement May Be A Driver of Transit Ridership Loss",November 2017 3 ibid SW CORRIDOR EQUITABLE HOUSING STRATEGY DISCUSSION DRAFT I MARCH 2018 17 Shared responsibility—and opportunity Fortunately, we aren't doing this work alone. Everyone has a role Federal Policy Encourages Housing and responsibility: local governments, private funders, philanthropy, and Transit Planning p py, major employers and institutions, nonprofit service providers and housing developers, community and advocacy TriMet's application to the Federal groups, and for-profit developers. We can all work together to Transit Administration for funding support our neighbors and welcome new ones. toward the light rail project takes into account the corridor's regional share of With the continued retreat of federal housing dollars, investing legally binding affordability restricted in our affordable housing infrastructure is now more of a local housing, and plans adopted to maintain responsibility.This requires a rethinking of the role of all public or increase such housing'. agencies in meeting our housing needs. Local governments and agencies serving the corridor like the cities of Tigard and The City of Portland is required to submit Portland, Metro, Multnomah County, Washington County, and a Fair Housing Assessment to HUD in TriMet are committed to being part of the solution. 2020 that looks at the City's plans for investing in affordable housing in areas Community-led planning and implementation of this strategy are with access to quality jobs and education essential for development that works for all people, especially like the corridor currently has and good those historically excluded from public planning projects. This transit like the future light rail. starts with government repairing trust with communities of color and low-income households by listening and responding to their needs. Our community partners directly engaged these populations, elevating their needs for earlier investments in the preservation of affordable housing and new anti-displacement services and protections for the most vulnerable residents. The light rail project sends a clear signal the SW Corridor is a priority for other public-sector investments.The housing strategy provides opportunities for private actors to meet their individual needs and achieve the equitable outcomes we all seek. • Funders will see evidence of emerging markets and feel more secure in their investments. • Private developers will gain confidence by our early actions and perceive less risk due to the clear development goals. • Foundations can more easily align their strategic housing investments in specific areas of interest. In short, a road map to success will attract more success so no one sector is carrying the load. Strong partners with shared values We have a proud tradition of helping neighbors in need and of welcoming newcomers get settled as they get settled in SW Portland and Tigard. Part of an inclusive community is having safe and affordable housing choices— especially for low-income communities and communities of color. This is a critical component of an equitable and prosperous region.The SW Corridor Equitable Housing Strategy aims to continue this tradition by exemplifying these values of inclusivity through the strategy development process. SW Corridor Equity and Housing Advisory Group comprising leaders from community,finance, government, philanthropy and real estate development sectors helped define a successful housing strategy and vet recommendations. The group's balance of real estate expertise and accountable relationships to low-income communities in the corridor helped develop a strategy that is both inspirational and visionary, while still achievable and grounded in the best practices of implementation. 8 MARCH 2018 I DISCUSSION DRAFT SW CORRIDOR EQUITABLE HOUSING STRATEGY Through a Community Grants Program, community-based organizations(CBO5)were funded to work with low- income households and communities of color. A large grant funded the Community Alliance of Tenants(CAT)to lead the engagement of low-income tenants, build public awareness of the project and develop policy recommendations informed by community-based research.Smaller grants to other CBOs allowed them to participate through the advisory group and coordinate with CAT to engage their constituents in the project. These two initiatives helped advance our commitment to race and social equity in all aspects of the project-from decision-making and community engagement to addressing racial disparities in displacement and fair housing through the proposed investment strategies.They provide a model for the type of critical capacity building resources and inclusivity needed to successfully steward this strategy over the long-term. Arc of Opportunity:SW Corridor and Division Street Many of the advisory group members are also active in East Portland where displacement pressures are strong and a new bus rapid transit line is being planned along Division Street.They see an opportunity to connect the SW Corridor and East Portland by new transit while also leveraging new housing tools to create more housing choices and prevent displacement of low-income households and communities of color who live and work in both areas. Many of the proposed strategies in this report should be implemented to meet the housing needs along both of these future transit lines. i is-: `.. txt,' ,iv :I'l ----CP—,j i. •, 1._.• •,'' f it r.•_ CI E BROADWAY < z I' ` p NE HALSEY ST r'P 64 Z `..1._. .r:Z� W BURNS O,T >. 64 w i i E BURNSIDE ST z i SE STARK ST 0:, t 6. w • roc * i 4*1 o 6 1 �, l --= O i 4 �Ni p. fix. r f SE POWELL BLVD r --i w .1 an 26 u I 0 a 7 - ir; I 4 �.•E FOSTER RD 1 �'F Portland ! y 0y � zi,''l f- E TACOMA ST 1;; .!'4.??.. $ J -y --" j i I..1 /' i,,------- Ir Legend __! -Li; --•-\ •—. rt .......Division Bus Rapid Transit Proposed Alignment ir4 ��SW Corridor Light Rail Proposed Alignments Quarter-mile Buffer of Alignments ----- City Boundary Tigard Allk 0 0.5 t I J NORTH IINICIIMED Miles 1 s V SW CORRIDOR EQUITABLE HOUSING STRATEGY DISCUSSION DRAFT I MARCH 2018 19 Big ideas inspire action This strategy is full of big ideas to inspire early action and boldly grow the pie of housing resources, align policies and investments with community priorities, and expand our roles and relationships.This will take leadership with a broad vision and the courage to take risks and make big investments in people. Big ideas and bold action will be needed to achieve our housing and transit goals AL iuun Luuu,,;n sir a; +14 A 1 17-L U ',.:;) ilP I' "kt- A allatN.3 4 A .,. H . ' -1 ' .. '. ; It , Anti-displacement Acquisition and New housing services and preservation of construction and Housing and transit goals protections existing housing supportive land use This starts with investing more holistically,acting with more urgency-and relating differently. We need public and private funding commitments to housing that match the scale of our transit investment. Only then will our transit and housing strategies work together to achieve equitable outcomes. This strategy proposes aligning existing resources and creating several new local and regional funding sources. We also need new supportive land use tools to encourage housing and services near stations that contribute to a sense of community identity. The broader station areas can be more than just places to catch the train or pass through; they can become neighborhoods with their own sense of place with housing choices for all. Early action is critical to success. If we achieve our first major goal of raising new revenue, then we must deploy an acquisition strategy that purchases and converts existing apartment buildings into rent/income-restricted buildings and creates a pipeline of sites for newly constructed, affordable multifamily housing in all station areas. A new lasting civic structure is needed to steward this strategy, holding all parties accountable to the shared responsibility and big ideas. We must find a new way of sharing power between communities most affected by displacement and major institutional players, including local government. That is—affected communities have real authority to implement the vision of equitable growth and institutional partners act in support of that vision. This housing strategy aligns our housing priorities with public investments in transit and our shared values of inclusion, equitable access to opportunity, and diversity in our communities.This unified, strategic approach to housing for the corridor will increase support for and benefits of the transit project by ensuring that all people — regardless of race, ethnicity,family status or disability— have a range of choices to live near transit. 10 MARCH 2018 i DISCUSSION DRAFT SW CORRIDOR EQUITABLE HOUSING STRATEGY Defining success The advisory group defined success upfront.The following definitions serve many functions: as a touchstone during the strategy development process; as a rubric for decision makers signing onto this strategy; and as a potential evaluative framework during implementation. 1. Racial and social equity is a central focus, specifically the reduction of direct or economic displacement and the increase in housing choices for households of color and other marginalized groups. 2. Existing and new affordable housing resources are prioritized for the corridor. 3. The housing strategy and light rail project support each other to achieve equitable outcomes. 4. All public-sector agencies active in the corridor planning process prioritize equitable transit oriented development in their missions and programming. 5. Developers and funders have a clear understanding about the development and place-making goals of the corridor and confidence in the public sectors'support of their efforts to help achieve those goals. 6. Quantifiable indicators, including housing targets, are established and tracked over time. 7. A community-centered organizational structure exists to oversee the strategy over the long term. SW CORRIDOR EQUITABLE HOUSING STRATEGY DISCUSSION DRAFT I MARCH 2018 I 11 2: Defining the need and setting targets Addressing Today's Housing Crisis and Planning for Long-term Need We are in a housing crisis and the SW Corridor is not immune.Thousands of our neighbors are paying far too much in housing costs, leaving little left over for food, healthcare and other essential things. There is significant and growing need for affordable housing and services to help people living in the SW Corridor and those moving in over the next 10 years. Land and housing costs in the corridor are rising as the area becomes more desirable even before light rail arrives in 2027. In addition, an estimated 80 to 100 residential units could be directly displaced by the construction of light rail according to analysis of early designs. Currently, of the SW Corridor's 12,000 low-income households there are 2,200 low-income homeowners and 3,500 low-income rental households spending more than 50 percent of their income on housing costs. However, there are only 775 regulated affordable rental homes in the corridor and minimal homeownership assistance programs. In fact, only 3.5%of all the housing in the corridor is affordable regulated housing compared to 12%of multi-family housing in all of Portland. Only one City of Portland-regulated affordable housing has ever been built along the corridor when the Watershed Apartments opened in 2006.There are currently two development projects in Tigard that will bring 284 affordable homes online in the next two years. Most people must find housing in the private market, which is experiencing rapidly escalating rents and home sale prices. As displacement pressures mount households are displaced further out to lower cost housing far away from their social networks, quality schools, living wage jobs, and rich civic amenities in the corridor.The corridor is estimated to grow by an additional 3,000 new households in the next 10 years with or without the introduction of light rail.They are expected to be racially and economically diverse households and most will be renters and frequent transit users. Not all current and future housing need can or should be met with rent/income restricted homes or homeowner assistance. Some of the need can be met through lower cost services such as legal aid, rental assistance, weatherization grants or home repair loans. But even by conservative estimates, the cost to meet the combined current and future need for affordable rental housing and services in the entire corridor over the next 10 years is $1.5 billion4—a far cry from the$150 million invested over the past five-years.' The investment strategies and policies proposed in this document were informed by both the quantitative analysis found in Appendix 1 and the qualitative research conducted by community partners. Both concluded the quantity and depth of need for affordable housing is growing, but it varies by population and across the various sub-areas along the corridor. Some of the most vulnerable populations to displacement pressures are seniors, very-low income renters, immigrants and refugees, some communities of color, and people with disabilities. The housing crisis is especially acute for the 22,000 households of color in the corridor. The growth of communities of color is creating a more racially integrated and diverse community, increasing 2.5 percent per year between 2000 and 2015, which is three times faster than the increase in the White population.A sizeable Hispanic/Latino community is now established around Downtown Tigard and a predominately East African community has established roots in the West Portland Town Center. However, these households are more likely to be renters and housing cost burdened, spending more than 30 percent of their income on housing costs. This combination makes these households especially vulnerable to displacement pressures. 4 See Appendix 1"SW Corridor Housing and Equity Needs Assessment"for full explanation of all estimates 5 ECONorthwest, "White Paper 1:Existing Investment Tools",2018 12 MARCH 2018 I DISCUSSION DRAFT SW CORRIDOR EQUITABLE HOUSING STRATEGY SW Corridor Population Growth and Diversity SW Corridor Cost-burdened Households by Race and Ethnicity 2000,2011-15 Population Growth by Race Households spending more than 30 percent of income on housing,5-year ACS estimate—2011-15 59% White 0.7% ^^ 0 ■Renters Homeowners N Black 5.1% 0 50 N 43% 45% 46% Asian 2.0% v d 40 36% 37% IHis amdtatino 2.3% 35% 0 1_30% Native ,, 30! 29% American 0.1%I I d mg •tiveHawaiiano4% ' '� 20 1 18% Other Race-1.3% w 0 inii. 2+Races 3.1% 00. 10 d -2 -1 0 1 2 3 4 5 6 0White Black Asian Hispanic Other S..Amman CoornunnY Sarni(RCS /Latino Race Housing at the ends of the corridor in Downtown Tigard and closer to Portland's city center are experiencing the greatest increases in housing costs.The middle of the corridor is still relatively affordable compared to the rest of the region. However, the older and undervalued stock of unregulated affordable multifamily housing is becoming attractive to investors, stoking fears of displacement6.Two-thirds of sales of these types of buildings are in lower- income areas and nearly 40 percent are in racially diverse areas. Rents are rising as building sell, having gone up 36 percent since 2010 for the most affordable of these apartments. Targets for affordable rental housing acquisition and construction versus the need The SW Corridor Equity and Housing Needs Analysis in the appendix provide the data and methodology used to establish the need for affordable rental housing described in this section. Federal and state sources have provided much of funding for the corridor's affordable housing. If historical trends continue,thousands of low-income renters will be left vulnerable to displacement and very few options will exist for households seeking to move into the corridor. Local sources must be invested. Minimum rental targets with today's resources:Several new housing tools are available in the corridor, including Tigard's urban renewal areas, Tigard Triangle lean code adoption, the Portland Affordable Housing Bond, and Portland's Inclusionary Housing Program. The Portland Housing Bond's existing policy framework aims to distribute resources fairly equally across the city, including some investment in areas with new planned transit and displacement risks like the Division BRT and SW Corridor LRT lines. In addition, two affordable housing projects in the development pipeline are in potential Tigard station areas: The Fields.The Housing Authority of Washington County is a special limited partner with Pedcor, the developer of a 236 unit 10-building project near the Tigard Triangle station. 212 homes will be affordable to households making at or below 60 percent of the median family income and 24 will be affordable at or below 30 percent of median family income.There are three and four-story buildings and a one-story community building. The project is anticipated to open in 2020. 6 Portland State University,"Preserving Housing Choice and Opportunity", Dr. Lisa Bates,2017 SW CORRIDOR EQUITABLE HOUSING STRATEGY DISCUSSION DRAFT I MARCH 2018 113 Red Rock Creek Commons.The City of Tigard is supporting the Community Partners for Affordable Housing to develop 48 affordable one-bedroom apartments in the Tigard Triangle.The project intends to serve the populations most at risk of displacement and homelessness with 24 project based vouchers. These homes will serve households with incomes at 60 percent median family income and below. CPAH has partnership with Luke-Dorf to house 8 of its clients. Luke-Dorf is a mental health care provider in Tigard, who will provide services or referrals for the residents of Red Rock Creek Commons. Assuming existing resources and these two projects in the pipeline are prioritized, an estimated 1,000 affordable homes for households with incomes at or below 60 percent MFI could be acquired or newly built in the Portland and Tigard portions of the corridor over the next 10 years. These numbers serve as minimum targets for affordable rental housing near light rail stations. However, by comparing these minimum targets to the actual need, it is clear how far short they fall.The actual need is estimated to be 4,240 acquired and newly constructed affordable homes in Tigard and Portland over the next 10 years.The targets would meet 32 percent of the need in Tigard and 20 percent of the need in Portland. A comparison table is provided below including estimated total development costs (TDC).The emphasis on new construction in Tigard will result in a higher TDC than in Portland where targets include a balance of new construction and acquisition or conversion of existing apartments.The estimated TDC is not the amount each city would invest individually. Other sources are traditionally used to develop regulated affordable housing such Low- Income Housing Tax Credits. The portion of funding provided by the City of Portland's traditional gap financing sources is usually between 30-40 percent of the TDC. Affordable rental housing minimum targets with existing resources versus the actual need Actual need In SWC • 200 constructed 20%target need • 910 constructed j 100 through inclusionary '500 homes 1,650 acquired or converted Portland • housing • Total:2,660 homes a 200 acquired or converted Portland • Total:500 homes 100%of need 2,660 homes • Up to 20%of Portland's need • 100%of Portland's need met met a $829 million total • $141 million total development costs development costs In SWC i • 450 constructed 32%target need • 730 constructed 500 homes Tigard 50 acquired or converted 850 acquired or converted a Total:500 homes ■ Total:1,580 homes • 32%of Tigard's need met Tigard • 100%of Tigard's need met 100%of need • $214 million total 1,580 homes a $546 million total development costs development costs 14 MARCH 2018 I DISCUSSION DRAFT SW CORRIDOR EQUITABLE HOUSING STRATEGY There are several new funding sources and investment strategies proposed in this strategy. If there is action on these proposals,then new resources can stretch to meet more of the need. Recommended stretch targets with new resources:A bold goal is to build one new affordable transit-oriented development(TOD) near each of the proposed 10 light rail stations beyond the two projects already in the development pipeline and acquire an equal number of unregulated affordable apartment buildings(10) where risk of displacement is highest for vulnerable populations.This could provide 1,800-2,300 regulated affordable homes and meet 48-58 percent of the need in Tigard and 41-55 percent of the need in Portland. See the table below for more details. Recommended affordable rental housing stretch targets with new resources In SWC 600 constructed Stretching to meet the need in the SW Corridor Portland 100 through inclusionary housing 350-700 acquired or converted Actual need 4,240 homes Total:1,400 homes 41 to 55%of Portland's need met $358-447 million total development costs Stretch Target 2300 homes In SWC 600 constructed Tigard 150-300 acquired or converted Total:900 homes Minimum Target 1,000 home 48 to 58%of Tigard's need met $307-345 million total development costs Policy goals for affordable housing Additional parameters will direct affordable housing funding to achieve the above targets. Implementing partners should incorporate the following policy goals into their programing for the corridor: • Invest in family sized homes.The proportion of new homes with two or three bedrooms should be greater than the proportion within the current stock of affordable housing in the corridor. • Invest in housing for those in greatest need.The proportion of new homes affordable to households with incomes between 0-30% MFI should be greater than the proportion within the current stock of affordable housing in the cities of Tigard and Portland. e Prioritize housing for those displaced by the light rail project. Households directly displaced by the light rail project are given preference for new affordable homes if they meet all other program requirements. • Invest in more homes accessible to people with disabilities.A greater percentage of accessible newly constructed homes than is required by the Americans with Disabilities Act should be created for those with disabilities. • Create homeownership opportunities.At least one newly constructed affordable TOD project should be dedicated for first time low-income homeowners and prioritize reducing the racial homeownership gap. SW CORRIDOR EQUITABLE HOUSING STRATEGY DISCUSSION DRAFT I MARCH 2018 115 Prevent displacement of people of color.Acquisitions prioritize buildings in areas where the proportion of households of color is greater than the proportion of households of color in the corridor population. Acquire larger apartment buildings. Acquisitions prioritize buildings with more than 50 homes. _- Build larger new affordable apartment buildings. Land acquisitions prioritize parcels that can support 100 or more homes. Targets for market rate housing Most of the 3,000 additional new households projected to move into the corridor in the next 10 years will find housing in market rate homes without rent restrictions.Achieving the most aggressive affordable housing targets will result in construction of approximately 1,300 regulated affordable homes.That means at least 1,700 new market rate homes need to be built to provide enough housing for new residents, recognizing these new homes will unlikely meet lower-income households' immediate affordability needs. Need for affordable homeownership Some level of legal support, housing counseling, and financial services are needed to support the existing 2,200 low-income homeowners (0-80% MFI) spending over 50 percent of their income on housing costs. For the Portland portion of the corridor,there are an estimated 709 low-income homeowners(0-50% MFI) that are severely cost-burdened. Serving these households with home repair grants and home retention case management is estimated to cost$3.9 million over a five-year period. Predatory lending education is needed to help the 35 percent of all low-income homeowners who have paid off their mortgages and are thus more likely to be targeted by predatory lending practices. In addition, first-time homeownership assistance is needed to help low-income renters transition into owning a home and begin accumulating wealth. Of the total number of homeowners in the corridor, 8%are households of color and 92%are non-Hispanic White households. The rate of homeownership among households of color in SW Corridor(38%) is significantly lower than the overall rate of homeownership in the city of Portland of 53% (regardless of race or ethnicity). Funds put toward creation of new homeownership opportunities in should focus on decreasing the homeownership disparity among communities of color. Culturally specific community organizations should be resourced to provide homebuyer education and counseling services and down payment assistance loans. Targets for these investments were not developed because there are currently so few homeownership resources available in the corridor. If new funding is created then associated targets will be developed with the above need and policy goals in mind. 16 MARCH 2018 I DISCUSSION DRAFT SW CORRIDOR EQUITABLE HOUSING STRATEGY 3: Implementation strategies The opportunities and recommendations described below aim to achieve the overall strategy's three big goals.A proposed framework outlines a sequence of supportive public policy and investments early on.These will set the stage for the market to be catalyzed by light rail investment.These early public actions can meet community needs when the market will not and help communities to benefit directly from future growth. Alignment of transit and housing implementation The housing strategy is designed to support a successful transit project and leverage elements of the project to enhance the strategy: The housing strategy will support the light rail project by encouraging dense development and prioritizing affordable housing investments near station areas,which in turn, will support ridership. The transit project will support the housing strategy by prioritizing affordable housing on appropriate sites during the disposition process for excess property that is acquired for the project's construction. It also provides an opportunity to raise local revenue for affordable housing in parallel with the light rail investment. Some benefits of this alignment include better outcomes for people such as decreased housing and transportation costs, increased financial sustainability of the transit system, efficient land uses, increased feasibility and predictability for affordable housing development, and enhanced political and community support for new transit and development along the corridor. Some healthy tensions addressed are the potential for increased upfront costs, "mission drift" of partner agencies, and the goal to meet the needs of both current residents and those moving in. SW CORRIDOR EQUITABLE HOUSING STRATEGY DISCUSSION DRAFT I MARCH 2018 I 17 SW Corridor Housing Goals and Implementation Strategies •Pi mary strategies are those required to achieve ow goals. ?•Sveondary strategies should continue to be explored as this strategy evolves throughout the implementation St rategies are corridor-wide unless indicated to be Portland-specific(P). litiltlitt ifffilit , # '. tis ( ) . ( ) C Commit early financial Prevent residential and Increase choices for new resources to address cultural displacement homes for all household types near-term housing crisis and k, and incomes long-term needs • Strategy 1-1:Grow new • Strategy 2-1:Preserve existing • Strategy 3-1:Secure and resources for the long-term unregulated affordable develop opportunity sites • form a SW Portland Urban rental housing for new construction of Renewal Area(P) • Asgr„r,,awl tosser!sip to ten equitable transit-oriented • Fully Capitalise the Network for unregulated affordable multi-family development(TOD) Oregon Affordable Housings Housing apartment buildings into incometrent • Develop TOD-scale(100+homes) restricted buildings Acquisition Fund affordable mufti-family buildings in • Direct an appropriate portion of a •.• Provide tax exemptions for existing each of the ten station areas in Portland Metro regional housing bond toward unregulated affordable housing and Tigard the SW Corridor • Strategy 2-2:Strengthen tenant • Execute an interagency affordable housing Support region wide workforce protections and provide Memorandum of Understanding housing real estate investment trust anti-displacement services * Inclusionary zoning receiving a sites) (p) agreement(P) '• * fund an anti-displacement and fair Explore an employer-assisted housinghousing services package •:• Recruit contrmunity land trusts to and corridor employer fund the corridor • it Strengthen tenant protections Strategy 1-2:Prioritize existing ••r Identity opportunities forcommunity * resources early on benefits agreements Prioritize competitive resources for the • Strategy 3-2:Regulate land use ♦ SW Corridor and zoning to create affordable and Promote existing incentives available market rate housing • icall nmhifamily development • Intent rvveKIWI ableIOU through ming Strategy 1-3:Strengthen • Incentivize equitable TOD through • partners to steward the strategy development agreements Form a community centered •••• Adopt middle housing tools and policies organizational structure to champion that work for low-income households and implement the strategy i 18 MARCH 2018 I DISCUSSION DRAFT SW CORRIDOR EQUITABLE HOUSING STRATEGY Sequencing primary implementation strategies The following graphic illustrates the recommended sequencing of strategies necessary to achieve the corridor's major housing goals.Early investments prioritize anti-displacement services and acquisitions of unregulated affordable multifamily housing.Other early actions include land use planning for station areas and securing public properties for future redevelopment as affordable housing.Increasing levels of investment are needed later when building acquisition bridge loans require refinancing and construction capital is needed to develop the public properties. AVAILABLE IN YEARS 1—3 j AVAILABLE IN YEARS 4—6 AVAILABLE IN YEARS 7—10 FUNDING •Existing resources(e.g.Tigard Urban Renewal Area,Portland bond,etc.) •General funds for anti-displacement service package •Oregon Acquisition Housing Fund(OAHF) •Metro housing bond with transit focus I•SW Portland Urban Renewal Area ACQUIRE • Oregon Acquisition Housing Fund(OAHF) BUILDINGS • Regional Real Estate Investment Trust • Refinance OHAF loans ACQUIRE LAND •Affordable Housing Memorandum of Understanding 1 AND DEVELOP •Pa parking lot •Construct on TriMet,OOOT and city-owned properties REGULATORY PARTNERS • Start-up phaseSupportlastlngcommunity centered collaborative structure 19 I MARCH 2018 I DISCUSSION DRAFT SW CORRIDOR EQUITABLE HOUSING STRATEGY DRAFT SW Corridor Housing Goals and Implementation Strategies Strategies are corridor-wide unless indicated to Portland-specific. Corridor-wide strategies should be pursued collaboratively. Strategies are grouped as♦ primary or❖secondary,. Primary strategies are those required to achieve our goals. Secondary strategies should continue to be explored as this strategy evolves throughout the implementation. Goal 1: Commit early financial resources to address the near-term housing crisis and long-term needs Strategy 1-1: Grow new resources for the long-term • A. Form a SW Portland Urban Renewal Area (Portland-specific) A URA district encompassing the potential SW Portland light rail stations can use tax increment financing(TIF)to capture the increase in land and property value partially created by the light rail project. Preliminary modeling estimates$181- 300 million in maximum indebtedness could be supported,depending on the size of the district. The TIF resources could be deployed as low-interest loans,grants,or direct investments for a variety of capital investments,including funding affordable or mixed-income housing.The resources modeled could produce an estimated range of 94-240 acquired or newly constructed affordable homes using$21-54 million resulting from a 45 percent housing set-aside. This production would achieve 7-17 percent of the corridor's housing stretch targets. Recommended Actions Considerations First explore expansions of URAs in East Portland. If URAs divert revenue from overlapping taxing districts capacity is left over and/or new capacity is freed up (i.e.,city,county,school district portions). from expiring URAs then conduct additional research, City Council adopted a policy that sets aside 45 planning, and community engagement to form a URA in SW. percent of revenue in eligible URAs to create housing affordable to households at or below 100 percent of Establish a housing set-aside greater than the 45 MFI. A higher set aside of 65 percent could achieve percent minimum policy;65 percent or greater. 10-25 percent of the corridor's stretch targets. If any TIF funds are allocated for the light rail project A cap of 15 percent of the city's total acreage can be then firm guardrails against repurposing any housing included in URAs. funds for the light rail project should be put in place. Front load funding by providing general fund backing to finance early investments in housing before speculation intensifies. Housing investments in the corridor should help achieve the stretch targets aimed at rental housing for households with incomes at or below 60% MFI or homeownership opportunities for households with income at or below 80%MFI. 20 I MARCH 2018 I DISCUSSION DRAFT SW CORRIDOR EQUITABLE HOUSING STRATEGY ♦ B. Fully capitalize the Network for Oregon Affordable Housing's Housing Acquisition Fund NOAH's current$33 million fund draws on many capital sources to provide short-term financing to for-and nonprofit entities to acquire market rate buildings, unrestricted by regulatory agreements,with the intent that the buildings will be transitioned into rent/income restricted affordable housing. Analysis of hypothetical acquisitions of buildings in the SW Corridor shows a$10 million infusion of public subsidy reduces the amount of additional sources needed beyond the NOAH loan by millions,with the most impact in projects of 50+homes.Those savings could go to other projects, enabling even more affordable housing to be preserved. Cash flow projections for NOAH's fund with a hypothetical$10 million-dollar public investment and better terms indicate that 555 affordable homes could be preserved. Recommended Actions Considerations Determine feasibility and source for one-time Longer term financing is needed to sustain addition of public subsidy into NOAH's capital affordability over time. composition beginning with contributions from both NOAH's current lending term(48 months)is short cities and counties. and the interest rates are higher as compared to Explore opportunities to use the new public national programs investment to entice better terms from other existing There is precedent for this action. In 2016 PHB lenders or attract new lenders with better rates. invested$1 million in NOAH's land acquisition fund. A newly capitalized fund should help achieve the stretch targets aimed at rental housing for households with incomes at or below 60%MFI. ♦ C. Direct an appropriate portion of a Metro regional housing bond toward the SW Corridor Metro has referred a$652 million bond on the 2018 ballot to fund regional affordable housing investments. 10%of funds would be used by the Metro TOD Program to acquire land in high capacity transit corridors. Most of the funding would be passed through to local housing authorities to construct new affordable housing or purchase existing unregulated affordable housing. Recommended Actions Considerations If voters approve the measure Portland and Current constitutional limitations require all housing Washington County should continue dialogue with funded through bond money to be publicly owned Metro and the community about investing a portion though housing can be operated by contracted of the funding alongside regional priorities,such as partners. SW Corridor light rail and Division bus rapid transit. Housing investments in the corridor should help achieve the stretch targets aimed at rental housing for households with incomes at or below 60 percent MFI. ♦ D. Support region-wide workforce housing Real Estate Investment Trust(Portland-specific) Meyer Memorial Trust and Gerding Edlen have partnered to bring mission-based investors into a long-term investment fund that purchases unregulated workforce housing,operates them with rents tied to CPI,and provides a competitive but less-than-market-rate return to investors in the form of quarterly cash flow. Partners hope an initial$100 million in capital can be raised in 2018.The fund would not use public policy-driven funds so it can have the agility of private capital to move with the market. SW CORRIDOR EQUITABLE HOUSING STRATEGY DISCUSSION DRAFT I MARCH 2018 121 Recommended Actions Considerations Conduct due diligence to determine if the City of It is one of the only tools being developed to Portland can be an investor or otherwise support it preserve workforce housing in the 60-120 percent through grants or by funding operations. MFI range. Seek to align REIT activities with the corridor's Investment return is around 4 percent. housing preservation goals. ❖ E. Explore employer-assisted housing or corridor employer fund Anchor institutions or large employers could directly participate in the development of affordable and/or market rate housing for rent or homeownership to eligible employees by providing property and/or low-cost financing. Employers could also pay into a fund dedicated to alleviating the housing burden for corridor employees. Recommended Actions Considerations Hold discussions with corridor employers to discuss PCC Sylvania's vision for campus development their interests,employee needs,and structures for a includes affordable housing. possible public-private or public public partnership. 21%of OHSU's 16,530 employees live in the corridor. Strategy 1-2: Prioritize existing resources early on Commitment to racial equity: Existing funding will not be diverted from commitments to other equity and anti-displacement agendas in other parts of the region, such as North and NE Portland and East Portland. • A. Prioritize locally controlled competitive resources for the SW Corridor Housing resources have varying policy priorities.Alignment of priorities provides clarity, predictability,and efficiencies. Aligning a portion of the following resources along the corridor has the greatest potential to meet the corridor's housing goals: Tigard Triangle URA($188 million) Portland Housing Bond($258 million) North Macadam URA Portland Housing Investment Fund (HIF) Portland Construction Excise Tax(CET) Metro TOD Program Other(State,County,philanthropy) Recommended Actions Considerations Develop options for a Tigard Triangle URA set aside Tigard will undertake Tigard Triangle Equitable Urban for market rate and affordable housing. Renewal Implementation project to prioritize urban PHB contracts with brokers to solicit land and renewal plan projects in 2018-19. building acquisition opportunities using HIF,CET or bond funding. PHB targets opportunity sites in the portion of the North Macadam URA that overlap with the Gibbs station walkshed area. 22 MARCH 2018 I DISCUSSION DRAFT SW CORRIDOR EQUITABLE HOUSING STRATEGY Metro participates in an Equitable TOD MOU with other partners(see details under Goal 3). Engage the Oregon Housing and Community Services Department to explore prioritizing 9%LIHTC applications for projects within light rail station areas. ♦ B. Promote existing incentives available to all multi-family development Programs exist using incentives and requirements to increase feasibility and affordability of affordable and market rate housing without direct public investment. Helping developers become aware of and experienced with using the following programs could increase their use in the corridor: System Development Charge exemptions(Portland and Tigard) Vertical Housing Development Program (Tigard) Inclusionary Housing(Portland) Affordable Housing Property Tax Exemption(Tigard) Recommended Actions Considerations Promote the corridor's housing vision for to Tigard City Council adopted SDC exemptions for affordable developers with marketing materials tailored to housing in March 2018. different development models and business plans (eg. market rate, mixed-income and completely regulated affordable housing). Provide technical expertise to developers to help them use the existing resources. Strategy 1-3: Strengthen partners to steward and champion the strategy Commitment to racial equity:Any organizational structure will include meaningful decision-making authority for and accountability to low-income people and communities of color and equitable funding for community based organizations to participate. ♦ A. Form a community-centered organizational structure to champion and implement the strategy An implementation best practice is forming a collaborative around a common vision to connect equitable TOD strategies with the right public, private, philanthropic,and nonprofit leaders who have the ability and heft to implement them. Members of the Equity and Housing Advisory Group are supportive of forming a broader collaborative like those in other regions but there is not a clear convener to begin the formation process. However,they do desire an interim structure to provide accountability and ongoing community participation in the first phase of implementation. Community Based Organizations(CBOs)on the advisory group working together to engage low-income households and communities of color in the planning process propose continuing their work by forming a Community Preservation Workgroup(CPW)to steward the anti-displacement elements of the strategy. More details on this proposal can be found in Section 5 below. Recommended Actions Considerations • Provide public and philanthropic seed funding for the Additional work by Metro on workforce and first two years of the CPW. economic development in the corridor through the SW Equitable Development Strategy will provide the SW CORRIDOR EQUITABLE HOUSING STRATEGY DISCUSSION DRAFT I MARCH 2018 I 23 • Government partners work with the CPW to expand forum to advance this idea of a regional efforts to engage low-income households and collaborative. communities of color in the implementation of anti- displacement services,tenant protections, and conversion of market rate apartment buildings into regulated affordable housing. • Work with the CPW to co-develop and present an annual report on progress made on the housing strategy to decision making bodies. Goal 2: Prevent residential and cultural displacement A cohort of 20 resident tenant leaders organized over an eight-month period by the Community Alliance of Tenants developed and presented a set of"Community Solutions"to the government partners in May 2018. The following strategies were redesigned to reflect these requests from members of the community being most impacted by the current housing crisis. Strategy 2-1: Preserve existing unregulated affordable rental housing Commitment to racial equity: Prioritize funding for culturally specific housing development organizations to acquire and preserve affordable housing where communities of color are established such as the area around the Islamic Center of Portland and in parts of Tigard where Hispanic/Latino households reside. • A.Acquire and convert up to 10 unregulated affordable multifamily apartment buildings into income/rent restricted buildings A capitalized strategy to convert some of the corridor's 372 unregulated apartment buildings into rent/income-restricted buildings is the most effective way to prevent displacement of current residents.The corridor's older stock of apartment buildings is selling at an average of$152,000/unit-much lower than the industry standard of$275,000/unit to construct a new affordable home. New and existing sources identified under Goal 1 could be aligned. Partners'acquisition activities could be coordinated to have greater impact.A foundation for establishing funding criteria is provided in Section 2. Recommended Actions Considerations Capitalize NOAH's Oregon Housing Acquisition Fund. 10 buildings is a stretch goal dependent upon newly Work with funding partners to incorporate the policy created resources under Goal 1(See Section 2 for goals for acquisition found in Section 2 into their minimum targets) funding criteria and explore joint NOFA's and Buildings may need to be brought up to health and underwriting processes. safety standards required in the building codes. Continue to fund community-based organizations to Rehabilitation and ongoing maintenance costs of engage tenants and participate in the selection of buildings in the corridor are not known. buildings for acquisition. Management retaliation against tenants for Contract with brokers to solicit acquisition requesting health and safety improvements is an opportunities. ongoing concern in the corridor. 24 MARCH 2018 I DISCUSSION DRAFT SW CORRIDOR EQUITABLE HOUSING STRATEGY �s« The State's authorization for local jurisdictions to provide partial property tax exemption in exchange for the provision of regulated affordable housing can be extended to owners of unregulated affordable apartment buildings.Tigard's Affordable Housing Property Tax Exemption is currently an incentive for affordable housing. Recommended Actions Considerations Pass state-authorized local legislation to expand tax Portland's property tax exemption authority is exemption programs with the goal of converting exclusively available as an incentive to participate in existing unregulated affordable housing into the Inclusionary Housing Program. rent/income restricted housing. Tax incentives do not have a strong record of eliciting Structure the incentives to produce deeper interest from landlords due to the added cost of affordability(60% MFI and below)and longer terms compliance and loss of rental revenue. (99 years) Strategy 2-2: Strengthen tenant protections and provide anti-displacement services Commitments to racial equity: Prioritize funding for culturally specific organizations to provide culturally targeted anti-displacement services in areas where communities of color are established such as the area around the Islamic Center of Portland and in parts of Tigard where Hispanic/Latino households reside. • A. Fund an anti-displacement and fair housing enforcement services package Tenants from various protected classes in the SW Corridor experience fair housing violations regularly. These violations coupled with no-cause evictions and rent increases result in involuntary displacement. Fair housing enforcement and other anti-displacement services provide long-term cost effectiveness by preventing homelessness and stabilizing renters and homeowners.They can be quicker to deploy and cheaper than creating rent/income-restricted units. Local cost per household estimates for legal aid and emergency rental assistance are$3,000 and$2,300 respectively. Community partners' engagement of low-income renters and homeowners identified the service types in greatest need: 1. Legal support. Help answering legal questions, completing forms and providing representation in court, protect tenants' rights to file complaints of discrimination or harassment without retaliation, protect tenants' rights to organize their buildings and help negotiate with landlords. 2. Tenant counseling. Education,outreach, and assistance accessing services such as financial literacy,credit counseling, renters' rights, and home loans and predatory lending education. 3. Landlord training. Mandate landlords are trained on their responsibilities under fair housing laws, and the consequences of discrimination and harassment. 4. Financial services. Direct monetary support to renters and homeowners such as emergency rental, utility,and mortgage assistance or home repair and weatherization funding. Recommended Actions Considerations Develop a package of early services:financial There is precedent for a package of this type. In 2018, assistance,legal aid,counseling,and landlord PHB submitted budget requests for$1 million in training. renter services and$500,000 in homeownership Identify funding sources beginning with Washington support services. County,the City of Tigard,and City of Portland. Legal aid is critical because tenant complaints can result in trumped up fines, neglect of basic repairs, and even no-cause termination.Some tenants may be afraid to report needed repairs for fear that a SW CORRIDOR EQUITABLE HOUSING STRATEGY DISCUSSION DRAFT I MARCH 2018 I 25 Form and resource a Community Preservation discriminatory landlord will report them to Workgroup to guide the deployment of services immigration officials,regardless of their status. across jurisdictions. ♦ B.Strengthen tenant protections Tenants along the corridor have different rights and protections depending on which city they live in.For example,Tigard does not have a requirement of 90-day notice for no-cause evictions. Neither city has a rental registration program.This is an obstacle to coordinated anti-displacement services and preservation of unregulated affordable housing. Low-income renters organized in the corridor through the housing strategy development process identified protections that cities can adopt now: 1. Screening criteria reform. Eliminate the practice of landlords requiring 3:1 income to rent ratios. 2. Security deposit reform.Cap security deposits and protect them from being taken unfairly. 3. Application fee protections. Enforce the requirement that landlords return application fees when applications are not processed. Recommended Actions Considerations Convene policy workgroups to develop and advance A number of tenant protections are not included in legislation for protections:screening criteria reform, this strategy because they were pre-empted by the security deposit reform,and application fee State legislature. Lobbyists from several local protections. governments are working to remove the State Form and resource a Community Preservation restrictions for some of these protections. Workgroup to strengthen tenant protections in both Portland is in the process of developing a rental Tigard and Portland. registration program. 26 MARCH 2018 DISCUSSION DRAFT SW CORRIDOR EQUITABLE HOUSING STRATEGY Goal 3: Increase choices for new homes for all household types and incomes Strategy 3-1: Secure and develop opportunity sites for new construction of equitable TOD Commitments to racial equity: Prioritize funding for culturally specific organizations to develop affordable rental housing and reduce the racial wealth gap through homeownership opportunities. • A. Develop TOD-scale(100+ homes) affordable multi-family buildings near each of the 10 stations in Portland and Tigard All potential station areas in Tigard and Portland have parcels zoned to allow multi-family housing at a density supportive of transit. Public sector-owned parcels can be prioritized for affordable housing. Regulated affordable TOD near each station would provide low-income households with approximately 1,300 new choices of where to live along the corridor. New and existing sources identified under Goal 1 could be aligned. Partners'funding and land activities could be coordinated to have greater impact.A foundation for establishing funding criteria is provided in Section 2. Recommended Actions Considerations Secure funding under Goal 1. 10 buildings is a stretch goal partially dependent Aim for at least 100 regulated affordable homes in upon Inclusionary Housing in Portland and the newly buildings with over 100 total homes. created resources under Goal 1(See Section 2 for minimum targets) See details on opportunity sites in Section 4 below. There are seven stations zoned for residential development in Portland and three in Tigard. • B. Execute an interagency Affordable Housing Memorandum of Understanding The cities of Portland,Tigard,Washington County,TriMet and Metro are entering into a Memorandum of Understanding to coordinate the development of public properties and conduct station area planning to achieve the corridor's affordable housing targets. Publicly owned parcels are an important opportunity to develop affordable housing. Coordinated land acquisition and development can leverage scarce resources and provide a predictable pipeline of sites for funders and developers. A few sites with TOD potential are already owned by the public sector. See Section 4 for more details. Recommended Actions Considerations Execute the MOU in advance of adopting the light rail Most sites will not be available until 2027 or later. project's Locally Preferred Alternative. New FTA Joint Development rules are favorable to The MOU should help achieve the stretch targets developing affordable housing on transit agency aimed at rental housing for households with incomes owned land. at or below 60%MFI or homeownership opportunities for households with income at or Sites should be discounted to the greatest degree below 80%MFI. possible to improve development feasibility of deeply affordable housing. Form a staff level Equitable TOD Workgroup to implement the agreements of the MOU and provide opportunities for regular input from community partners. SW CORRIDOR EQUITABLE HOUSING STRATEGY DISCUSSION DRAFT I MARCH 2018 I 27 ♦ C. Inclusionary Zoning receiving site(s) agreement (Portland-specific) Housing production estimates from Portland's Inclusionary Housing Program in SW are between 100-200 affordable homes over the 10-year housing strategy.The program allows market-rate developers to meet their affordable housing requirements on-site or by paying an in-lieu fee or creating the housing at a nearby site.Giving developers along the corridor an option to create off-site units on approved receiving sites in the corridor would lower the barrier to participation in the program. Receiving sites could contribute to one or two of the buildings in Strategy 1A above and serve as an incentive to participate in a master development agreement to incentivize deeper affordability levels. Recommended Actions Considerations Analyze the feasibility of producing the housing Per City policy,a receiving site cannot be supported development(s)that would include the off-site by any additional PHB subsidy. affordable homes. A number of publicly controlled parcels could serve as receiving sites. Inclusionary Housing does not create deeply affordable housing. Inclusionary Zoning is dependent on the construction of new market rate housing. D. Recruit community land trusts to the SW Corridor CLTs own land and provide long-term ground leases to providers of affordable rental housing or low-income households to purchase the homes on the land. Homeowners agree to purchase prices, resale prices, equity capture, and other terms to ensure long-term affordability. Recommended Actions Considerations Engage CLT operators and developers about the ability to Low-income homeowners capture some limited equity. partner in the SW Corridor. •:• E. Identify opportunities for community benefits agreements Project-specific agreements between developers and community coalitions on large-scale, redevelopment projects ensures community support for the projects in return for creating more affordable housing or other community benefit. This decreases a developer's risk and maximizes the positive impact of development. Recommended Actions Considerations A Community Preservation Workgroup can identify There are limited large redevelopment opportunities potential development parcels in the corridor to in the SW Corridor with exception of the Tigard watch for opportunities to negotiate CBAs. Triangle. Portland's CEIP applies to all publicly funded large- scale projects including those using affordable housing resources. 28 MARCH 2018 I DISCUSSION DRAFT SW CORRIDOR EQUITABLE HOUSING STRATEGY Strategy 3-2: Regulate land use and zoning to create affordable and market rate housing Commitments to racial equity: Use best practices of inclusive and equitable engagement during planning processes. Operationalize Portland Comprehensive Plan anti-displacement and equitable housing policies through station area plans. ♦ A. Incentivizing equitable TOD through zoning Currently 56%of all acres in the Portland's potential station areas are zoned single family.The existing mixed-use zoning in station areas is often shallow with an immediate transition to low-density zoning. Mixed-use, low-rise TOD can be developed in this zoning but the imbalance of single-family zoning does not allow for the incremental increases in residential density necessary to create a transit-oriented community.Careful rezoning to allow for more 20+unit multi- family buildings would result in more affordable homes through Portland's Inclusionary Housing Program(under 20 units does not trigger affordability requirements). The City of Tigard recently rezoned most of the land in the Tigard Triangle to accelerate pedestrian-friendly, mixed-use development by streamlining the development review process. Downtown Tigard already has mixed use zoning,but the city will explore additional changes to its development code to allow additional residential density in this area. Recommended Actions Considerations Coordinate a corridor-wide station area planning process, Barbur Transit Center and the Burlingame stations are in beginning in select station areas using a fair housing and designated Town Centers intended for more multi-family health equity lens. housing. ♦ B. Incentivizing equitable TOD through development agreements Development agreements between a city and developers are binding contracts that increase project feasibility and production of community benefits beyond what underlying regulations provide. Potential development agreements in the corridor could address the following tools: Increased entitlements Participating in an inclusionary housing obligation receiving site (Portland only) Infrastructure subsidy:sidewalks and storm water management Participating in off-site shared parking(i.e. park and ride or parking district) System Development Charge exemptions Participate in a streamline review and permitting program Recommended Actions Considerations After station area planning is complete,determine Park& Rides at the Barbur Transit Center and 53rd the additional affordability goals and incentives to street station are shared parking candidates. target for development agreements in order to The corridor requires significant storm water further incentivize projects that will not get built infrastructure investments that could compete for even with revised zoning. properties also appropriate for affordable housing. SW CORRIDOR EQUITABLE HOUSING STRATEGY DISCUSSION DRAFT I MARCH 2018 129 ❖ C.Adopt middle housing tools and policies that work for low-income households Portland's Residential Infill Project may allow duplexes,triplexes,and additional ADUs in single-family zoned areas, including in SW light rail station areas. If barriers to participation are removed, low-income homeowners could use these new allowances to bring in more income.Affordable housing requirements could also accompany these new allowances. The City of Tigard will consider updates to the development code to allow a wider variety of"missing middle" housing options that will provide for a wider variety of housing types to accommodate residents at all stages of life.These code updates will include zoning and design standards for a broader range of accessory dwelling units and duplexes, as well as cottage clusters, live/work units,courtyard apartments,and other small-and medium-sized units.The updates may also include changes that lower barriers to the development of affordable housing. Recommended Actions Considerations Identify sources of public funding to provide low-cost Homeowner with older mortgages at higher interest financing to low-income homeowners. rates may need help refinancing to take advantage of Adopt policies that create more affordable housing. development opportunities,such as adding an ADU. 30 MARCH 2018 I DISCUSSION DRAFT SW CORRIDOR EQUITABLE HOUSING STRATEGY 4: Pipeline of Opportunity Sites The corridor's affordable housing stretch targets depend upon growing new resources to build one affordable TOD near each of the corridor's 10 light rail stations and acquire an equal number of unregulated affordable apartment buildings. Pro-active efforts by local government partners and nonprofit developers to find willing sellers of apartment buildings are the best approach to achieving these preservation targets. Prioritizing publicly owned land for affordable housing is the best approach to achieving the new construction targets. An MOU between TriMet, City of Portland, City of Tigard, Housing Authority of Washington County,and Metro will be the primary vehicle for prioritizing public properties for new affordable TOD. It will define a process for disposing of remnant transit project property in a manner that supports affordable housing development goals. Analysis is underway to identify development and funding scenarios for a pipeline of new affordable TODs along the corridor. The final housing strategy will include hypothetical housing programming, capital needs, and funding strategies for a package of sites.A few specific opportunity sites are included in this analysis, including: • The Portland Community College Board of Directors is interested in developing affordable housing on the Sylvania Campus. • The Oregon Department of Transportation owns two properties that may be available to provide some amount of affordable housing;the Barbur Transit Center and land under portions of the Ross Island Bridgehead. Redevelopment scenarios will account for their current transportation functions. Two other future development projects should also be supported in addition to opportunity sites more closely tied to this housing strategy: • The North Macadam URA boundaries overlap with the potential Gibbs light rail station walkshed. Affordable housing constructed through the URA will contribute to the overall build out of the station area. • Neighborhood House is planning to build an affordable apartment building for low-income seniors on its property in Multnomah Village. The site is .6 mile from the nearest potential light rail station. While the potential project is not located in close walking distance to the potential light rail station, it should be supported to contribute to the broader corridor's stock of affordable housing. 31 I MARCH 2018 I DISCUSSION DRAFT SW CORRIDOR EQUITABLE HOUSING STRATEGY 5: Stewardship Structure and Accountability Goal 1, Strategy 3 is to "Strengthen partners to steward and champion the strategy."The local governments participating in developing this housing strategy acknowledge that past transit-related housing strategies were not successful in large part because they failed to establish and enforce accountability measures or resource community organizations to play an active role in these measures during implementation. This time must be different. This section describes a framework for accountability including ongoing community partnerships and opportunities to make changes. It is designed to create shared responsibility, measure progress, and communicate effectively. Accountability measures and reporting Measuring the impact of and progress toward implementation of the SW Corridor Equitable Housing Strategy creates an opportunity for community and institutional leadership to focus attention and reiterate the importance of our race and social equity goals and make any necessary changes to the strategy. Data will be important in determining whether the strategy is working for low-income households and communities of color.The table below includes a set of early warning signs, performance measures, and community level indicators that can help determine whether or not equitable outcomes are being achieved as the corridor develops. As with any new endeavor,there will likely be missteps and new opportunities may arise that were not anticipated during the development of the strategy.These are opportunities for learning and improvement. Developing mechanisms for collecting this data and evaluating progress with community partners will help measure whether race and social equity is being advanced. An annual report will be co-created by staff and community partners and presented to the decision-making bodies that adopt this strategy. It will highlight the lived experience of low-income households and communities of color and the implementation activities of the community partner organizations. It will also include an overall grade (A through F) based on the performance measures and a set of recommended near-term actions for decision makers including any proposed changes to the strategy. Warning Signs Negative Warning Signs(collected bi-annually) Data Source Outcome Displacement Decrease in racial and ethnic diversity of SW Corridor students OR Department of Education Number of students moving out of SW Corridor schools by free and OR Department of reduced priced lunch status Education Number of tenant requests for assistance from Community Alliance Community Alliance of Tenants of Tenants hotline Food box requests Neighborhood House 32 MARCH 2018 I DISCUSSION DRAFT SW CORRIDOR EQUITABLE HOUSING STRATEGY Homeless students in local schools OR Department of Education Change in median rent in SW Corridor submarkets compared with Costar other similar submarkets, by unit type and quality Shrinking Number of units affordable at 80%MEI or below Costar or Axiometrics affordable housing supply Property repositioning: Building transactions and or substantial Costar increase in rent in unregulated affordable housing Portland rental registration program data points(to be determined) Rental Services Office Positive Community Level Indicators(collected annually) Data Source Outcome Increasing racial Household income distribution compared to city of Portland and city ACS and economic of Tigard distribution and the change year-to-year diversity Racial and ethnic diversity compared to overall population in the city ACS of Portland and city of Tigard and the change year-to-year Share of students accessing free and reduced priced lunch in local OR Dept.of Education schools in the SW Corridor compared to the schools in the Portland Public School District and Tigard-Tualatin School District and the change year-to-year Dissimilarity index by Census tracts in the SW Corridor compared to ACS the city of Portland and city of Tigard and the change year-to-year Performance Measures Outcome Performance measures (collected annually) Data Source Increased Number of affordable homes preserved or in construction, by PHB and City of housing choices affordability level compared to the affordability levels found in the Tigard and community Portland Housing Bureau portfolio city-wide stability Number of family-sized homes preserved or constructed, by rent PHB and City of restriction compared to the affordability levels found in the Tigard Portland Housing Bureau portfolio city-wide SW CORRIDOR EQUITABLE HOUSING STRATEGY DISCUSSION DRAFT I MARCH 2018 133 Number of tenant protection ordinances adopted PHB and City of Tigard At least one new TOD project dedicated to first time homeowners PHB and City of Tigard Number of affordable homes accessible to people with disabilities PHB and City of Tigard Engaged Satisfaction with progress on strategy by community based Community-led community organizations actively engaging and/or serving low-income inquiry organizations households and communities of color in the SW Corridor(Muslim Educational Trust,CPAH, Neighborhood House,etc.) Public and philanthropic funding for continued collaboration ana PHB/BPS/City of engagement amongst community based organizations actively Tigard engaging and/or serving low-income households and communities of color Quantity of active community-based organizations and quality of Community-led relationships across organizations(ex.Coalitions,workgroups,etc.) inquiry Incremental Pipeline of policy proposals and budget proposals to advance goals, PHB/BPS/City of progress broken out by the three overarching goals of the strategy Tigard toward goals Properties targeted for land and building acquisition PHB/BPS/City of Tigard Number of new funding sources and funding amounts for PHB/BPS/City of affordable rental housing development and preservation Tigard Budget allocation for new resources available for anti-displacement PHB and City of services for low-income households Tigard Permits issued for multi-family housing BPS/City of Tigard Land use regulations adopted with affordability incentives and/or PHB/BPS/City of requirements Tigard 34 MARCH 2018 I DISCUSSION DRAFT SW CORRIDOR EQUITABLE HOUSING STRATEGY Stewardship structure The collaborative strategy development process by a broad set of stakeholders all committed to achieving equitable outcomes resulted in new relationships and greater buy-in. A number of organizational structures were explored to continue this spirit of collaboration as we pivot from planning to implementation. Below is a general framework that ties partners together for coordinated action during implementation. It articulates a shared goal for sustained multi-party accountability for action, clarifies the roles for players by sector, and identifies the kinds of actions that leadership and staff might each take. SW Corridor Equitable Housing Strategy:Actors and Roles for Sustained Multi-party Action Clear direction and support Leadership Execution Who Who Public Electeds and leadership from Tigard,Portland, Staff from Tigard,Portland,Metro,Trimet, Metro,Trimet,Washington and Multnomah Washington and Multnomah counties Commit, counties organize, and Role Role • Articulate a vision for equitable future • Interdepartmental and multi jurisdictional package • Build staff and community capacity for coordination(ex.TOD MOU) resources committed action across election cycles • Organize and deploy resources in service of • Deploy adequate funding equitable vision • Measure success c o Sustained multi-party shared RS a $ accountability and action co Who Who • Directors of community org's and • Staff at community org's and development development org's org's(ex.Community Preservation Workgroup) Private • Foundation and community leaders • Funders and potential funders Shared • Corridor development community • Community members • Developers accountability Role and execute • Continue to refine community vision Role equitable • Advocate for/seek new resources,provide • Build tools,networks,and partnerships funding • On-the ground organizing with renters development • Coordinate and innovate to ensure efficient • Connect clients with services and housing use of resources • Develop housing A number of structures were explored that could operationalize the above framework: • The advisory group supported the idea of forming a community-centered multi-sector regional or corridor- specific collaborative focused on housing and transit similar to those found in other regions across the nation. However, the idea did not mature enough to act on at this time. Metro's ongoing process to develop a SW Corridor Equitable Development Strategy is a good forum to advance this idea with the additional perspectives of workforce and economic development organizations to broaden the scope beyond housing. • The advisory group was not enthusiastic about forming another volunteer oversight committee tasked with advising and overseeing the implementation activities made by public partners. SW CORRIDOR EQUITABLE HOUSING STRATEGY DISCUSSION DRAFT I MARCH 2018 135 • Community Based Organizations (CBOs) on the advisory group working together to engage low-income households and communities of color in the planning process proposed forming an ongoing Community Preservation Workgroup(CPW)to steward the anti-displacement elements of the strategy. The CPW is the most promising community infrastructure to help build trust, accountability, and a shared commitment to the success of the SW Corridor Equitable Housing Strategy. A proposed scope and resource needs are outlined below. • The cities of Portland, Tigard, Washington County, TriMet and Metro are entering into a Memorandum of Understanding to coordinate the development of public properties and conduct station area planning to achieve the corridor's affordable housing targets. They have agreed to form a staff level Equitable TOD Workgroup that will provide opportunities for regular input from community partners. The scope of this workgroup and its relationship to the Community Preservation Workgroup is described below. Scope of a Community Preservation Workgroup Elements Questions Purpose 1. Work with government partners to implement and report on progress made on the SW Corridor Equitable Housing Strategy. 2. Expand efforts to engage low-income households and communities of color in the implementation of anti-displacement services,tenant protections, and conversion of market rate apartment buildings into regulated affordable housing. Governance Yet to be determined by participating CBOs structure Authority Self governed with autonomy of its resources and work plan. Composition CBOs led by or serving low-income households or communities of color and working on housing and transit justice. Geographic reach SW Corridor. Some CBOs are more geographically focused on activities in just the corridor while others have broader geographic purview. Resources needed Two years of seed funding from the public partners: 1. One full time staff 2. Capacity building funds for training, strategic planning community engagement, research, and canvassing Early engagement with philanthropic organizations will tee up support in year three and beyond. Staff One full time staff to be housed in a yet to be determined CBO. Government role Initial funder and technical assistance provider upon request. The Community Preservation Workgroup and Equitable TOD Workgroup will regularly participate in facilitated work sessions on their respective bodies of work to seek input and advise on each other's activities. 36 MARCH 2018 I DISCUSSION DRAFT SW CORRIDOR EQUITABLE HOUSING STRATEGY Scope of a local government Equitable TOD Workgroup Elements Questions Purpose 1. Work with community partners to implement and report on progress made on the SW Corridor Equitable Housing Strategy. 2. Implement development plans for affordable housing on public properties and conduct station area planning. Governance Yet to be determined by participating jurisdictions. structure Authority Make staff level recommendations to the respective decision-making bodies. Composition Signatories of the SW Corridor Affordable Housing MOU. Geographic reach SW Corridor Resources needed Staff time Community role The Community Preservation Workgroup and Equitable TOD Workgroup will regularly participate in facilitated work sessions on their respective bodies of work to seek input and advise on each other's activities. Potential to expand the geographic scope of a Community Preservation Workgroup: CBOs engaged low-income households and communities of color in planning for affordable housing alongside both the Southeast Division bus rapid transit(BRT) line and SW Corridor light rail projects. Many of the same CBOs were involved in both processes.These processes resulted in commitments to housing anti-displacement investments through a Division BRT Memorandum of Understanding and a SW Corridor Equitable Housing Strategy. The Community Preservation Workgroups scope could expand to include the work on the housing commitments made through the Division BRT MOU. This would leverage concurrent housing investment and enact new policies for both areas. It could also serve as an interim-step toward a regional collaborative focused on housing and transit. Conclusion Meaningful financial capitalization of this strategy and an effective community-centered stewardship structure to seek solutions with committed government partners will likely be the major determinants of whether the big ideas of this strategy come to fruition.The opportunity to get ahead of the predictable cycle of gentrification and displacement is now. Our region is well positioned to learn from the past and provide a new model of equitable growth. i , # goie aGood,Transit in the SW Corridor "' - r 'w'r' NM r t . 'afford1111111 tilt aable Homesa" IM ICU INN * �MIas i l!'`il a — ■iii ■1 tr; --ai- /or iiiii-jean on us . . . a a a me — e ,, w �i i- i, , r' 1 ■Iii !I Isco # +baa', " '' :; .i® $IIr 1, ,,; l` ;r._. r ri 11173 cispb •I 1 _ it SW CORRIDOR EQUITABLE HOUSING STRATEGY DISCUSSION DRAFT I MARCH 2018 137 Appendices 1. Appendix 1: Equity and Housing Needs Assessment Demographics, market conditions, land uses, housing needs, housing programs and past investments, as well as existing organizational networks in the SW Corridor 2. Appendix 2: Preserving Housing Choice and Opportunity Portland State University research on unregulated affordable housing in the region and SW Corridor 3. Appendix 3:Existing Funding Landscape on the Southwest Corridor Consultant analysis of housing programs available in the corridor and accounting of those recently used 4. Appendix 4: Existing Organizational Presence Consultant analysis of organizations providing affordable housing,advocacy and human services in the corridor 5. Appendix 5: Implementation Strategies Consultant analysis of implementation strategies proposed in the SW Corridor Equitable Housing Strategy 6. Appendix 6:Organizational Structures for Equitable Transit Oriented Development(eTOD) Consultant research on national examples of multi-sector collaborative structures 38 MARCH 2018 I DISCUSSION DRAFT SW CORRIDOR EQUITABLE HOUSING STRATEGY r g.,kd a r. 7 �V ''ubx. P ra • : W. I� lt QEoiiid or _ _ a �7 s 4v+ 1a N o�S LANO Q �t a o Equitable q �� A�Y �� o 'so „., I85TIGARD Housing in the Southwest Corridor SUPPLEMENTAL PACKET FOR i•tky a H , a a I r (DA E OF MEETING) Ili NI NeanamasisGood-transit in the SW Corridor ■ 1 ■ r Affordable Homes and • • ii1”! • mom in ■, ■ :. ■1■ II f,z� * ; • 111111 II ■ ■ ■ or . rf. 0 0IE ■I■ re a ■ ■ ;Lip iLiiiC :111 ■1■ 111 Iro.--. ■ ■ ■ " ■ rr ._ ��i., � . ■ ■ ■ i■ ■I Is �. � s r.. av pe-.aad rc.nazpG c�.,. ry ,.., t 1rIrti � . � '� 11'1 '/I G....i.a r t � §� � � � a tr� / , �. s4 3.' m 'IP ° etc �; .*'�� . City of Tigard o w ... n^..., s;� y. ... .4°4:".�^ ;.n., w, "4?;� .."ST. "sati n�.�p '33,43 ,4V3 "3 .r A X� �'+ 3� MeetingPurose of Tonight' s • Review SW Corridor Equitable Housing Strategy • Discuss with panel of housing specialists Action requested: • Consider resolution acknowledging the strategy City of Tigard Housing Costs are Rising Asking rent per unit $1,700 $1,500 $1,300 $1,100 $900 $700 $500 LO N• 00 Ol O r--1 N M ‘zzr L( LO I� O O O O r- • r-H c-1 c--i r-1 O O O O O O O O O O O ' N N N N N N N N N N N —Metro Portland —Tigard SW Corridor Source:CoStar Multi-Family Property database Presented in Sold Out:PDX Report 1 ;i,,"ry;,r. . x 4x v v� xY "* Ar`* x"r ns K r, a 8 3 n S^�^i d 47 r.^a', ,�»r t t p r r t. 7 ,, *4 " k i-t s r� 'r4� 3 x� ., t Mz:1r� '>d 6 e , }s 3,,44 y w g y"` r'x,r �+� & �k [ ��, � x , " � �� 3 V, ' %,,,,.: , � ,Ile,t,, ' t' r „k d k ',,,t,' d" ty5 v ,,£ s � xy"a tx` v Na cc s � " e at r 1 3 >�* } -6� d � 9 ` r ± ; y�v .1d b x 5 , J F b 6 Ptens7'2 e ,' # i V tl `. 4 *:: 41yex y x no7 t . , s rit°tx § 4 City ofTigard � m t `„ , � 0 P , � � A * , r a n Housing Costs are Rising Change in rent and per-unit sale price in Tigard, 2010-2017. TIGARD $140,000 $1,300 $120,000 $1,200 $100,000 -,-.. w_ $1,100 $80,000 - $1,000 $60,000 = — $900 $40,000 ” $800 $20,000 $700 $0 $600 2010 2011 2012 2013 2014 2015 2016 2017 Effective Rent Per Unit Average per-unit sale price --1,--Asking Rent Per Unit Source: CoStar Sales COMPS database, Presented in Preserving Housing Choice and Opportunity City of Tigard Housing Costs are Rising Median Single Family Home Listing Price $500,000 $450,000 $430,869 $426,678 $400,000 $370,047 $357,261 $350,000 $300,000 $250,000 $200,000 $150,000 $100,000 $50,000 5- Tigard Portland Hillsboro Beaverton Source: Washington County Housing Department Introduction City of-Tigard y OOWNY.)Y TYN GREAT PLACES .. 0T""° Need for an Equitable on _ W , orridor �.:+...+� Housing Strategy ,.a • firsa-,) • Lack of affordable housing is J. a Tigard problem and a ? N corridor problem shorten,.sf•/ crossingssT on e2rnur • Equitable TOD crucial for (WI. success of SW Corridor — „,,,.•/Out* d/atPnt to 1-5Mmm<aeon a• Teamed up with Portland to n1 (iot/ths/dO) .�. C:(sJp9�.1.1 . saDam .-, _ consider the issues 4-111111 Imparton �6 ry � � � nvh:shi, 7::nidtS d comprehensively .Aag., , w., tt too r2lr nOrwd Initial Route Proposal (IRP) van tj ,UAL AIN City of Tigard Public g a Eng ement • Advisory Group LL • October Community 'tomdr Learning and Listening =' im , Session se • May community gathering -.,. • Four Tigard meetings at St. Anthony's City of Tigard Big ideas and bold action will be needed to achieve housing and transit goals • a ono Lm NiuAar 4 41/4 41/4 .1 111/IILg+IIt/Ilt"IIIItltttlttllagl!�I r rt. 0 A b . rppo i t,,. .. t A i-.. . A ,1! ikik ,,,,,,,• Anti-displacement Acquisition and New housing services and preservation of construction and Housing and transit goals protections existing housing supportive land use I 3 1 �� d� �� L AP ! 1 3 d s* ,"�`�' � ;�ra� a � . ire" t dts+"b,+�,c r f1k "�� sr 1 �, �„s' .y � '�,' r"z."t„�k� +� &�?"8, "" rt a�R�3r.'r" i"� m �a , 'r ' d(" �,; �� ';,�+�� v � 1" r5 je�� 1 "� City of Tigard14 f �� , Goal 1. Commit early financial resources to address the near-term housing crisis and long-term needs. • Strategy 1 -1 : Grow new resources for the long-term • Strategy 1 -2: Prioritize existing resources early on • Strategy 1 -3: Strengthen partners to steward and champion the strategy • ` �` � � a�,r er 4 ��±� t� �"��#'�4`� r*" �=sjv ,�a':` sg rhe i^��"t s^+pz�?i r y fCf i'�'A a''gf( p 40,�"s�y,;, fa t rFw>k*",�"M.); ; r s,4 5{1, ,.; E ):: y ,,,.� ti*�,�ee �� ""' +'" �'"� � `�.S � r S, F a� �ti�� ass .� 1 a h r^�s`' �' ,�,4�` _ 44104' d: ��z � � � �`� ° tt��<, i �` `�d� +s� City of Tigard �s f Recommended Tigard Actions • Advocate for Tigard allocations of new funding sources • Consider future Triangle UR allocations • Promote Tigard's existing incentive programs • Support community-based organizations working in Tigard. y � s City of Tigard ' �:r" i, ,"r• t �`�°�'z t �t;'��,err a a � r;.,, � � , Goal 2. Prevent residential and cultural displacement • Strategy 2-1 : Preserve existing unregulated affordable rental housing • Strategy 2-2: Strengthen tenant protections and provide anti- displacement services City ofTigard Recommended Tigard Actions • Support efforts to acquire and preserve existing affordable housing • Contribute funds to non-profit housing service providers in Tigard • Consider new tenant protections City of Tigard Goal 3. Increase choices for new homes for all household types and incomes • Strategy 3-1 : Secure and develop opportunity sites for new construction of equitable TOD • Strategy 3-2: Regulate land use and zoning to create affordable and market rate housing City of Tigard Recommended Tigard Actions • Finalize and execute MOU with TriMet and other jurisdictions • Consider development code updates City of Tigard Recommended affordable housing stretch targets with new resources In SWC 600 constructed Stretching to meet the need in the SW Corridor Portland 100 through inclusionary housing 350-700 acquired or converted Actual need 4,240 homes Total: 1,400 homes 41 to 55% of Portland's need met $358-447 million total development costs Stretch Target 2,300 homes In SWC 600 constructed Tigard 150-300 acquired or converted Total: 900 homes 10" "" ` Minimum Target 1,000 home 48 to 58% of Tigard's need met $307-345 million total development costs ka t f'i 1'Y ,y, r '�1A f Y.� b dp 6 ,v t P 4"" d 4,�y (U b (1+6 ,, '1 h Y zf 5 + sl`" i�"{.r;p 3 �' mK"'�"` la if4 a k t ,: E lea 1 s"4' t'a4vr sr, 4 b x s 1 t t t d" t £ 1 rig �":� -,'3114,-..,ri4 . 1 r� f1 r''ri rl in, `4, " "a ',it01'1c 4 }t e a Y e t F ° M1 sm'£' "'r $as r titIV, �, +, z C i p z + t Et ` ; t i ti`s ter,, � k ,+t''t n '�f tee wo 1 r 4. a�F Yn" i 5 i 4 z 1 w e r$ �" Cz a t t o c:z $+C c"{"'," ", ,.a'''r%i 3,'' '' *ha3 a .` ,�AAtv 1''�f'T's4Fs,'K 'r< w4 l z, 1 i,',- '' 7 .,ala r 1 1 ¢ i' ,,, t a a, 7 k Puy 4.'''f'{s b,,,3 4 1&"44 b y P ,n 1 Y w v4k,t4 .40-,,,,,,,;„ " ra::v ' c' 4 X � i'1 ;+�" Ik;'S iicl #tha t2 r�,pl,„i,g y k 4 tori;i 3ywt 41 „ s$ ,.rr ,, t fi 1 " } I�■-1 " t n y ; �' z Yt �^ w ,�+ s 14. r Para a^' , t '' n l a, City of 1 ig r� 4 t ' -V} xV.L.+Ydy 'v° 4 Sl w s l,nl v ire 1 SP Uf ? Y Performance Measures • Increased housing choices and community stability • Engaged community organizations • Incremental progress toward goals Citi of Tigard Key Challenges 1 . Early anti-displacement activities: funding for anti-displacement services and building preservation 2. Capitalize the strategy: Funding for building acquisition and development 3. Support for a lasting community-centered coalition to champion the strategy City of Tigard Q and A •".. n ., ...„ 4 1- .-1 Lj :.„,.,..„ .... .,, .., , . . , . . .. , es, ........... ', ' 4 • , „ SW Corridor Equitable Housing Strategy BRINGING MORE HOUSING CHOICES AND OPPORTUNITY TO SOUTHWEST PORTLAND AND TIGARD