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05/09/2018 - Packet City of Tigard Town Center Advisory Commission Agenda MEETING DATE/TIME: May 9, 2018 — 6:30 to 8:30 p.m. MEETING LOCATION: Red Rock Creek Conf. Room, 13125 SW Hall Blvd.,Tigard, OR 97223 1. CALL TO ORDER Kate 6:30 2. CONSIDER MINUTES Kate and Sean 6:35 3. PUBLIC COMMENT Kate 6:40 4. SW CORRIDOR PROJECT UPDATE Metro and TriMet staff 6:45 5. EQUITABLE HOUSING STRATEGY FOR SW CORRIDOR Sean 7:30 6. MAIN STREET AT FANNO DEVELOPMENT AGREEMENT UPDATE Sean 7:55 7. LIAISON REPORTS Kate 8:05 8. NON-AGENDA ITEMS All 8:25 9. ADJOURN BUSINESS MEETING Kate 8:30 *EXECUTIVE SESSION:The Tigard City Center Advisory Commission may go into Executive Session to discuss real property transaction negotiations under ORS 192.660(2) (e).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. Uucoming meetings of note: Monday,May 7, 6:30 p.m.,Budget Committee Meeting#2,Public Works Auditorium Tuesday,May 8,6:30 p.m.,TCDA Board Meeting(approve DDA) Monday,May 14,6:30 p.m.,SW Corridor Community Advisory Committee,Multnomah Arts Center,room 30 7688 SW Capitol Hwy,Portland Monday,May 21,6:30 p.m.,Budget Committee Meeting#3,Public Works Auditorium Tuesday,May 29, 6:30 p.m.,Budget Committee Meeting#4 (if needed),Public Works Auditorium Monday,June 4, 6:30 p.m.,SW Corridor Community Advisory Committee,Multnomah Arts Center,room 30 7688 SW Capitol Hwy,Portland Wednesday,June 13,6:30 p.m.,Regular TCAC Meeting,Red Rock Conference Room The City of Tigard tries to make all reasonable modifications to ensure that people with disabilities have an equal opportunity to participate equally in all city meetings. Upon request,the city will do its best to arrange for the following services/equipment: • Assistive listening devices. • Qualified sign language interpreters. • Qualified bilingual interpreters. Because the city may need to hire outside service providers or arrange for specialized equipment,those requesting services/equipment should do so as far in advance as possible,but no later than 3 city work days prior to the meeting.To make a request,call 503-718-2591 (voice) or 503-684-2772 (TDD-Telecommunications Devices for the Deafl. TOWN CENTER ADVISORY COMMISSION AGENDA—May 9, 2018 City of Tigard 1 13125 SW Hall Blvd.,Tigard,OR 97223 1 503-639-4171 1 www.dgard-or.gov I Page 1 oft CITY OF TIGARD TOWN CENTER ADVISORY COMMISSION Meeting Minutes May 9, 2018 Members Present: Carine Arendes,Lucas Brook (Alternate), Scott Hancock, Kelsey Parpart, Gloria Pinzon Marin,Tim Myshak, Kate Rogers,Ryan Ruggiero, and Faez Soud. Members Absent: Tom Murphy. Staff Present: Redevelopment Project Manager Sean Farrelly,Administrative Specialist Joe Patton. Others Present: Council TCAC Liaison Councilor John Goodhouse,Metro staff Chris Ford, TriMet staff Jeb Doran,Jennifer Koozer, and Wendy Serrano. 1. CALL TO ORDER Chair Rogers called the meeting to order at 6:30 pm. The meeting was held in the Red Rock Creek Conference Room, at 13125 SW Hall Blvd.Joe recorded the roll call. 2. CONSIDER MINUTES The April 11, 2018 TCAC Minutes were unanimously approved. 3. PUBLIC COMMENT—None. 4. SW CORRIDOR PROJECT UPDATE Chris Ford and Jeb Doran gave a presentation on the SW Corridor and explained the route alternatives under consideration. The alternatives are designed to avoid major impacts, to reduce costs or to increase the ridership. The project has to be cost effective in order to receive federal funding. Ridership is expected to be 40,000 per day. The Clinton and Ash alignments with at-grade crossings,would result in gates coming down on Hall Blvd. 380 times per day.A new Initial Route Proposal (IRP) would have a station southeast of Hall Blvd, outside the downtown boundary. If the IRP is selected,TriMet plans to build an Operations and Maintenance Facility in Tigard employing up to 150 people. The alternatives are not included in the DEIS.A document showing pros and cons of the route alternatives is expected to accompany the DEIS. At a future meeting, Commissioners will develop a list of questions they would like answers to help form a consensus recommendation and invite TriMet and Metro staff to a future meeting if necessary. 5. EQUITABLE HOUSING STRATEGY FOR SW CORRIDOR Sean noted Tigard has been working with the city of Portland and stakeholders over several months to develop equitable housing strategies along the SW Corridor with the main goals of finding new financial resources,increase housing choices, and prevent displacement. The draft strategy will be discussed with Council in the summer. Page 1 of 2 TOWN CENTER ADVISORY COMMISSION May 9, 2018 6. MAIN STREET AT FANNO DEVELOPMENT AGREEMENT UPDATE The Town Center Development Agency authorizing execution of a Disposition and Development Agreement (DDA) with Ava Tigard Development LLC to redevelop the property on Main Street at Fanno Creek. Development plans include a cafe, bakery, and offices with residential space on the upper floors. TCDA will have input on the final design. 7. LIAISON REPORTS In the interest of time,liaison reports will be shared via email. 8. NON-AGENDA ITEMS On Monday at the Budget Committee meeting the TCDA budget was unanimously passed.A grant request was submitted for the Tigard Street Heritage Street Trail accompanied by a TCAC letter of support for the request. 9. ADJOURN BUSINESS MEETING The meeting adjourned at 8:55 pm. Wk fwjk Joe Patt n,TCAC Meeting Secretary ATTEST: Kate Roes, Chair Page 2 of 2 GREAT PLACES r r Portland • Sherwood • Tigard - Tualatin Beaverton - Durham - King City Washington County • 0DOT • Tri Met ■ Metro hwCorridor Sout est Ini iaI Route Proposalt Tigard Town Center Advisory Commission May 9, 2018 GAERT PLACES Corrwdor Today's Agenda • Why light rail ? • Introduce "initial route proposal" and reasoning • Explain design modifications • Questions VA s There could be 340,000 residents in the Southwest Corridor by 2035- morethan today. swcomdorplan.org GREAT PLACES 11OWNTOWN PV M"D Corfidor hw4 Soutest MAWUAM i Y Alignment options studied OHSU On Barbur OF Naim 5 HIL4$✓15,4L� i A i 0Portland Several mute options in =° dI1OWOWEl '4' STAKc NIA Tigard Tigard 40 1 au se WAY AAcng#Mr. railroacl or I-5 • • VILLAGE. Tualatin 5 h TawK I&LATIN GAERT PLACES 'Corrwdor Relationship tir u : IS DEIS Initial route proposal • Expected release • Shared March 2018 summer 2018 0 Includes original • Studies original route options route options 0 Proposal for • Discloses discussion/comment impacts/benefits 9 Suggests modifications (not fully designed, yet) GREAT PLACES 'Corrwdor )V�� • Design modifications • Modifications address adverse effects • Residential and business displacements • Construction impacts • Excessive capital cost • They must be better understood and studied in the years that come I.- Will Will require public l process after the route decision GREAT PLACES rrwdor The initial routeproposal Overall route Through route South Portland Barbur + modification Hillsdale to In Barbur to Barbur TC Tigard Triangle Then adjacent to I-5 at + niudifications Tigard Triangle and Ash + modifications downtown Tigard Downtown Tigard Railroad to Bridgeport a� 1DOWNTOWN PORTLAND r MAA MAa uiri,. Handout m Hilt i aNsu I ! r r ��/ S N o� Proposed rout(- O _ -my Modification H7 ••••• DEIS option „.,,. ,.:• 4 Station / Q Station with ~ park and ride '•O claimnr IL R II5 k 5 wnti 0 II g1pC�CPn Ii VILLAGE Q 3. DOWNTOWN TUALATIN GREAT PLACES Overall route Initial route proposal DOWNTOWN PORTLAND Through route • Better connectivity between Tigard and Tualatin TIGARD TRIANGLE • Better transit service DOWNTOWN for Downtown Tigard TIGARD • Lower operating cost • More cost-effective and BRIDGEPORT reliable operations VILLAGE p GREAT PLACES idor Tigard Triangle to downtown Tigard Ash v ClintonC J9 99 W PCC amp TIGARD • SYLVANIA TRIANGLE DOWNTOWN TIGARD r x10' 2'17 KRUSE WAY Bonita ~� •1 1 GREAT PLACES idor Tigard Triangle to downtown Tigard overviewClinton Clinton • One station serving Tigard Triangle r- w9PCC Clinton TIGARD • SYLVANIA • Faster travel time but DOWNTOWN TRIANGLE TIGARD • lower ridership e40000, • Long structure ( almost o KRUSE from 70th to Hall ) Bonita WAY • Critical traffic impact at Hall & 99W GREAT PLACES idor Tigard Triangle to downtown Tigard Initial route proposal Ash • Higher ridership • Serves Tigard TrianglePCC ARD SYVANIA TRIANGLE� with two stations DOWNTO TIGA � • Avoids traffic impacts at Hall & 99W KRUSE WAY • Property impacts can beBonita .� reduced with modifications lM14 M1— •�� i VT ti r i 3 !V •" r do 10 IP ••' :. � � lam_ � `!fes '1�• � '��' _ �• 'A IS A 10 uNT x i 1 kF,I\\xL Ir k : ti , GREAT PLACES idor Tigard Triangle to downtown Tigard Suggested m Elmhurst • Avoid business impacts •. on Beveland P« 41GARD ••' SYLVANIA TRIANGLE WNTO Downtown station DO GAR 40 e east of Hall Blvd • Avoid affordable housing - ;imp.d WAYS impacts o Ash Bonita O��• on Ash Ave and Hall Blvd • Avoid crossing Hall twice GREAT PLACES idor Tigard Triangle to downtown Tigard Modifiedwalksheds mile) DEIS Stations Mod if ied Stations IMF l L 68th i UUalkSheE{ '. overlap El � t eve an �� GREAT PLACES Corfidor Tigard Triangle to downtown Tigard ModifiedwalkshedS mile) • � f 4. � R: i � � �; r / f iy' •.` rod •1 /� ('o �= . '. �. �'ti '.� ��• �r y,•.r f P%� ^J -,r! �� ryiyr S .yr i W- C'a .i`• r � r w= ti. F. = T r 41 ' r • .. - • ►►,. Lam- • � •,. ,�. • '-_ Ash _ •f•= �;; Commer�iaUHall - :,; CommerciallO&M DEIS Station Modified Stations GREAT PLACES Corrwdor ExNbit 1- aliv Prdtried Alterrmlime BaAme \N% Vw yj % % -All ddn 4. IESENO my t rc.Im III "AIA:i1g 3a ? IMF Ea -4raft 40MR, ubamqrm Al 'NIP hq)o Rd 9 1 ed D,A ft I par Dvmftm %� 0 -L4W.10(VVp2C*W.jy —r jjyM LUX 4nkwa*end 0 PPffl bel A f6m Pd 01 'FWA Fixd Rkis ilin hwo;i F! 1-110 DRAFT T R I AR I T "K Qm&m4 a n Upwa n~� 1 1 R&c Wx-n AovxmTw:ch�SPT-w' I w� r.2 M U GREAT PLACES Corridor lAiM.21-Lj3tallV Prd-tried Alternalhm BwAirw VIA,- JL LMEND 41 1 LtW%:L3.-Prp k kfrdrp 4wm(Cffl'W I cn Od-1 N 7 ;A w Aus L4 im �iF rEa NNW7�ie Sid p0ml bq)OW.91ld DOM Im kwOD- - - I"rmwTvIAO Le PM cF�-s 4r}*eea* I (ep fhm-R.d F a Fqeb E--3 •`-kbvwft"eppfflLts�iir.i vi,LmNi -F WA k&d Has I I w How&4 r4 % DRAFT El"4rimopp TR10AIG ET WOr.DcmmM a n Tip cd —Ar 1A&c 4foi)n�an+n 1 dor.3 oTmyy I "r.2 iyl U GREAT PLACES %dCorrwidor I Ik rMla ap"enk � a¢ � P obra �.�Y _ ., � � . YoFmsil Hsdrrrlp-�nerll rs st�vs n 4tio p 'y arrt mosr IhlfI• GrIreel•Lorrra!'iriwbesr-kWwjp^in _ -,moi- x_Qoa6�-tlf e p uplF aw a po"M no.dxv Ig s y Fulbm d1 rF reg$W k4&H"rNx•M 6eVL?KWz to_edoe F, Wq fa-':5t 3-wd%b:.d&3umme -%L •Y Z ' 4��Lw�+rle�'.eSgslelP..c�h1 be � 5� �' I ¢9 ED„ �5 b+ �*#4.ih+G•+#Ul'�'9p,—*Oky�/..IdMhSP olf+kllnliN 3S hTb-c do sheen L4,%uh*N mkr4iK L MIOD1rd rr-3n o:o spaoo-rmrff and piwdng ' } ad_iL1al Anrx-1 12-WAftFbV, o-x4P3ISTiWd%5 v, � LEGEM r - y ONI L •_ 13Ku Preen ~rte I rwRc 9 h 4 I"loxrolx am* tiA5r+, � lm- � {� , f <FkA%F ,3F�eIIiAWzoF%p MP"P -d �:'•r. TRI @MET "K owwr*wmo7%wd nWa As I I rd Qmhm 4JK- drfMr J%1 ,1 ;' zC-I ail .. �_'M1 _ � y .. �' **_,yF. �, 'der , • • • • �� _�'��'„;J.. � _ { _ �f 4• .cif � 1 5 AlI - fur to ' � 4 . r �f '. - I -� �• Very k' - - I . I / • / • / I Questions? GREAT PLACES Corfidor Upcoming ecisions 2018 Southwest Corridor light rail project schedule Complete periodComment Locally Public events held, preferred An initial route verbal & written proposal published DEIS published comments alternative - hearings collected consider route CAC and Steering Add final Committee make route to Regional route recommendations Transportation 4/25/2018 Plan (RTP) Schedule is subject to change. GREAT PLACES Xorrwdor Project benefits Initial Route Proposal with modifications • Adds capacity to the corridor • Provides fast service • Provides reliable travel times • Improves accessibility to corridor destinations GREAT PLACES Xorrwdor Project benefits Adds capacity • 1 -5 projected to experience 13- 17 hours of congestion per day in 2035 • LRT to carry 43,000 daily riders in 2035 • LRT projected to carry 1 out of 5 rush hour commuters in 2035 ( I -5 and Barbur, south of downtown ) • LRT capacity can be expanded when needed GREAT PLACES Xorrwdor Project benefits Speed and Reliability From PSU to Bridgeport : • 30 minutes with LRT • Today, average by auto is 25 minutes in PM peak • Auto range is 17 to 58 minutes GAERT PLACES Corfidor Project benefits Improves accessibility Compared to No- Build in 2035, within % hour by transit : • Over 70% increase in # of households that can reach Barbur TC, downtown Tigard, and Bridgeport • Over 35% increase in # of jobs reached from downtown Tigard • Over 60% increase in # of jobs reached from Barbur TC and Bridgeport Agenda Item 4 March 2018 PORTLAND•TIGARD •TUALATIN rido Light Rail Project Light rail options: initial route proposal For many years,we've been talking about how to improve transportation in the DOWNTOWN Southwest Corridor,one of the fastest PORTLAND growing parts of our region.The corridor stretches between downtown Portland, Tigard and Tualatin.It is time to share a proposed route for a future MAX light rail line that could connect these communities and see what people think is the best route for our region. TIGARD TRIANGLE The Southwest Corridor Project will publish a Draft Environmental Impact DOWNTOWN Statement(DEIS)for public review and TIGARD comment this spring.The DEIS is a study that shares the impacts and benefits of route options for a 12-mile light rail line in the corridor.The report is required for the project to qualify for federal funding from BRIDGEPORT VILLAGE the Federal Transit Administration(FTA). FTA also requires the study include an initial route proposal for comment. What's next The proposed route was developed by The DEIS release is scheduled for this partner staff with information from the spring,to be followed by a 45-day public DEIS process and previous public comment period.The initial route proposal feedback. is one combination of options studied in Several factors drove staff discussions the DEIS,but it is not the final choice.The about the route: Steering Committee can choose a different combination when they recommend a • minimizing impacts to housing and Preferred Alternative after the comment businesses,as much as possible period. • improving transit travel time Learn more... • station proximity to destinations for Southwest Corridor Steering future riders(employment,health Committee members are leaders from swcorridorplan.org Metro,TriMet,Oregon Department of facilities,homes) Transportation(ODOT),Washington ©@SWCorridor . safety for all modes of travel County,and the cities of Beaverton, swcorridorplan@ • efficient and cost-effective Durham,King City,Portland,Tigard, oregonmetro.gov transit operations Tualatin and Sherwood. The initial route proposal March 2018 The initial route proposal is shown in blue on the map.The route travels south from the Portland Transit Mall on Barbur Boulevard until the Barbur Transit Center.From there,it crosses I-5 on a new bridge and then runs adjacent to I-5 to 26 DOWNTOWN Tigard.The route serves the Tigard Triangle with two PORTLAND stations,crosses Highway 217,serves downtown Tigard and nos �r then runs adjacent to the railroad tracks to the southern �� Existing � �' MAX service terminus at Bridgeport. /O'N The proposed route includes several modifications to the MARQUAM DEIS options.These modifications,shown in orange on the HILL/OHSU • map,would minimize impacts identified in the DEIS,reduce cost,and improve ridership and travel time. - r The project would also include a connection to Marquam Hill, • / a shuttle to the Portland Community College Sylvania r Campus,a new light rail maintenance facility,roadway . . improvements,and a selection of accompanying walking and - • biking improvements.Staff also recognizes the importance HILLSDALE • • of a Floss Island Bridgehead improvement in Portland as part of a larger effort. s 3 d /• 5 M MULTNOMAH ultnoma N VILLAGE h • 0 BARBUR TRANSIT CENTER Proposed route O Modification VQ= PCC • SYLVAN IA • ' DEIS option DOWNT • • Station TIGARD • O Station with . • park and ride KRUSE WAY Bonita 0 By the numbers Lai , 30 minutes rfrom Bridgeport Village to O Portland State University 43,000 riders BRIDGEPOR on an average weekday in 2035 VILLAGE Q $2.6 to 2.8 billion estimated cost to build (including inflation and finance) DOWNTOWN TUALATIN Agenda Item 5 i a f r YI11 � "Rents are rising in Tigard and many residents are in danger of being priced out of their i neighborhoods.We need to find an equitable wap to bring much-needed transit to the SW Orridor 1 without increasing housing costs even more" '--•7igord ayorlohn Cook DISCUSSION DRAFT MARCH 2018 "To ensure the SW Corridor is a place of opportunity www.portlanclaregon.gov/bps/quita bilphousing for all,we need to bring puhl is and private partners together to achieve our common goals around G e E A T r E A r E s housing affordability and choice." orr*dor 4brdandMayorTed Nheeler Acknowledgements This report was written by the City of Portland Bureau of Planning and Sustainabilitywith significant contributions from the Portland Housing Bureau,City of Tigard,and consultants. The project is part iallyfunded by a Metro Community Planning and Development Grant. SW Corridor Equity and Housing Advisory Group HomeForwa rd Momentum Alliance OPAL Environmental Justice Oregon Muslim Educational Trust Community Partnersfor Affordable Housing UniteOregon CommunityAlliance of Tenants Community Housing Fund TriMet Networkfor 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 Nick Kobel,Associate Planner Matthew Tscha bold,Assistant Director Simi Aliu, Planning Assistant Antoinette Pietka,Data Ana lytics Manager Karl Dinkelspiel, Housing Investment Manager Project Consultants Jill Chen,Housing Investment Coordinator Lisa Bates,Ph.D, Portland State University Bimal RajBhandary,Data Analytics Emily Picha, ECONorthwest Barrett Elbright Karnes,Homeownership Specialist Lorelei Juntunen, ECONorthwest Susan Anderson, Enterprise Community Partners Portland Bureau of Transportation Devin Culbertson, Enterprise Community Partners Teresa Boyle, Major Projects and Partnerships Anita Yap, MultiCultural Collaborative Manager Kirsten Greene,Enviroissues John Gillam, Major Projects and Partnerships Kathryn Levine,Streetcar Division Manager Other Contributors Caitlin Reff, Project Manager Neil Loehlein, BPS GIS Mapping Leslie Wilson, BPS Graphics Prosper Portland Eden Dabbs, BPS Communications Justin Douglas,Policy and Research Manager Joan Frederikson, BPS District Planner Metro Emily Lieb, Equitable Housing Initiative Manager All supporting materialsand maps developed for this project are available at: www.portlandoregon.gov/bps/equitablehousing All photographs courtesy of Cityof Portland,Community Partnersfor Affordable Housing, and HomeForward. 1 1 MARCH 2018 1 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..........................................16 5. Section 4: Opportunity Sites.......................................................................................30 6. Section 5: Stewardship Structure and Accountability.............................................31 7. Conclusion and Appendices........................................................................................32 2 MARCH 2018 1 DISCUSSION DRAFT SW CORRIDOR EQUITABLE HOUSING STRATEGY 0Q0iliii� 1i 1.1p L�iLl DD DD DD OD Irk 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 CityofTigardjoined the partnershipto help secure a planning grant from Metrotopartiallyfund 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 Metrothat addresses workforce and economic development needs in addition to housing. Tigard and Portland city councils will consider adopting thefinal SW Corridor Equitable Housing Strategy in the summer of 2018, prior to the adoption of the Locally Preferred Alternative forthe 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 roadmaptoalign policies and housing investmentsto: ■ 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," accompaniesthis SW Corridor Equitable Housing Strategy document. What's in this report? This report consists of six sections: ■ Section 1 introducesthe project's vision and goals, partners,and big ideas. ■ Section 2describesthetotal affordable housing need in the corridor and proposes preservation and construction targetsfor both affordable and market rate rental housing. ■ Section 3 detailsthe implementation strategies and recommended actions. ■ Section 4 describes the workto date on key opportunity sites for new affordable and mixed-income transit-oriented development. Section 5 describestheopportunity toform an organizational structure to oversee the housing strategy. SW CORRIDOR EQUITABLE HOUSING STRATEGY DISCUSSION DRAFT I MARCH 2018 13 SIN Corridor Light Rail and Amenities t 1 �~ ❑ G "IBBS ■ �-..�.�..-. �..-a-.r � DHSIi 11H5U .l� z Portland arm _ ■ 0 i' hpalr€ r^a i FMppr , H OUSTER ' '# ■ TH AVEICAPITO I.H ILL L. * 1DAVEISPANGCARDEN — .a i` t267HAVE "sl Barbur4hrld� I" BTH AVE LEGEND ARBURTRANSIT Potential light rail alignment iOr [ENTER Potential Iight FailStationS ig Rl Hospitals t -•� 53RDAVE ■ K-12xhools Tigal PUMUNfT .]y Post-serondarysthools {OLLEfiE !. i - i 1 Major businesses + ANTAIBAYLOR r a a ,.••-•• L Large chain gracery stores Smal I independent grocery 7 H AVF1BFVELAND Farmers markets T140D&N(ENT H R ■ Parks aWor natura I areas W�LU1LIN70J{ASN s. Schaal Wnds City boundary Affordable Housing Regulated Units: 22-5s I F { 4 PER BOOHES FEW:. Mites €ukorWad.4roga;skemorPUnriflaudSuminadiigy f ly, Walgre r — ■ l Ge"iaphk hfom fior 57slrm ' . �. .. I�IASEPORT VIELd� � � ■ lrenkoulainlin,uvwedyrredf�GrcdknwoUukdeees.Cerc ,• ms14nn:xCwlwoflhmr41p3r h!runirdW!.IFa"CfF314" +'�—�} � cenw:aaea:arrrrnpcnd t.7�enx.artnFaraorpalwnlaarwry. I^ . 4 MARCH 2018 DISCUSSION DRAFT SW CORRIDOR EQUITABLE HOUSING STRATEGY 1: Introducing a New Model of Equitable Growth Fulfillingthe 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.These conditions also create obstacles to achievingthe region's long-range growth plans. The multibillion-dollar investment in light rail will attract additional investments in housing, providing an opportunityto address this housing crisis and the long-standing racial disparitiesand 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 theirtrue potential. Where people have the capacityto strengthen their communities and determine theirown future and that of their neighborhoods. To achieve this vision, we must acknowledge some of the unique barriersfacing 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 qualityjobs, education,and other key determinantsofsocial, physical, and economic well-being. To addressthese barriers,this housing strategy has three primarygoals: 1. Commit earlyfinancial resources to addressthe near-term housing crisis and long-term needs.The region is experiencing 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. Peopleand 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 drawntothearea bythe qualityof life and housing options. We also know whereyou 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 whereto 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 1 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/ rented in 2007 was$650, and today a friend of mine rents the some 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.EquitableTOD is dense growth around transitthat promotes economicallyand 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 afforda bility for an established income level for a defined period of time. Unregulated affordable housing Lower-cost market-rate rental housing. �r IIT L_. PORTLAND PLAN �[arMprPyn COMPREHENSIVE LOCAL PLANS PLAN INFORM THE EQUITABLE F= HOUSING STRATEGY COXCE PT PLAN •- - - 4fi` f C 6 MARCH 2018 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 practicesshaped the growth We know the old story: The MAX Yellow Line and in SW Portland for generationsand thus are helpful North Interstate Housing Strategytaught usthat context for this housing strategy(See Appendix 1 for having good housing policies and intentions are not more history). Investments like freight rail, 1-5, and the enough. Earlyaction and bold housing investments Ross Island Bridgesplit low-income neighborhoods, were needed. Instead displacement occurred as the depressed their home values and exposed residents to area became more desirable and housing cost rose. pollution. Redlining along sections of Barburand racially While some people benefited from the change, restrictive covenants in the surrounding neighborhoods many more were forced to move. contributed to fewer people of color living in SW and those who did move in were more likely to live along the Recent research out of Northeastern University corridor. shows the experience along North Interstate is not the exception.They analyzed neighborhood change Home Owners Loan Corporation- 1938 Map in 42 neighborhoods in 12 metropolitan areasthat received new transit investment between 1990 and 2000.They found when new transit is introduced "the most predominate pattern is one in which housing becomes more expensive, neighborhood residents become wealthier and vehicle ownership becomes more common."' In North Portland, neighborhood change also had the unintended long-term consequence of reducing Acs+oewnAL seu transit ridership as new higher-income households _ opted out of the transits stem.z Tri son n p Y p e��,.9�.e. r l in North Portland exemplifies the major finding of MML°i the Northeastern University research: "There is a _ �aw•�e o„r�iw.Rro = Y[ 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 bytransit."3 This new knowledge coupled with the current crisis led the Portland City Council to direct the Bureau of Planning and Susta i na bi I ity to develop a housing strategyto be adopted alongside the plan for the light rail project. The C ity of Tiga rd a nd t he Port I a nd Housing Bureaujoined BPS toco-lea dthe process. A solid equitable growth policy framework exists and several current plans have laid a foundation for this strategy -most recently the B a rbu r Conce pt Plan,the Portland Plan, and Tigard and Port landCom pre hensive Plans. 1 PoI lack,Stephanie,Barry Bluestone,and Chase Bi IIingham.2010.Maintaining Diversity i nAmerica'sTransit-Rich Nei gh borhoods:Tool s for Equitable Nei ghborhood Change.Boston,MA.Duka kis Center for Urban and Regional Policy at Northeastern University. z Tra ns it Center,"I n Portland,Economic Displacement May Be A Driver of Transit Ri dership Loss",November2017 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 govern me nts,private funders, and Transit Planning philanthropy, 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 togetherto Transit Authority's New Starts Program support our neighbors and welcome new ones. for partial funding to build light rail will receive a higher rating for building light With the continued retreat offederal housing dollars, investing rail that serves the existing affordable in our affordable housing infrastructure is now more of a local housing and has a housing plan with responsibility. This requires a rethinking of the role of all public dedicated funds for new affordable agencies in meeting our housing needs. Local governments and housing'. agencies serving the corridor like the cities of Tigard and Portland, Metro,Multnomah County,Washington County,and The Cityof Portland is required tosubmit TriMet are committedto being part of the solution. a Fair Housing Assessment to HUD in 2020 that looks at the City's plans for Community-led planning and implementation of this strategyare investing in affordable housing in areas essential for developmentthatworks for all people,especially with access to qualityjobs and education those historically excluded from public planning projects. This like the corridor currently has and good starts with government repairing trust with communitiesof color transit like thefuture light rail. 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 clearsignal the SW Corridor is a priority for other public sector investments. The housing strategy provides opportunities for private actorsto meet their individual needs and achieve the equitable outcomes we all seek. ■ Funderswill see evidence of emerging markets and feel more secure in their investments. ■ Private developerswill gain confidence by our earlyactions and perceive less risk due tothe clear development goals. ■ Foundationscan 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 theyget settled in SW Portland and Tigard.Part of an inclusive community is having safe and affordable housing choices— especially for low-income communities and communitiesof color.This is a critical component of an equitable and prosperous region.The SW Corridor Equitable Housing Strategyaimsto continue this tradition by exemplifying these values of inclusivity through the strategy development process. SW Corridor Equityand Housing Advisory Group comprising leaders from community,finance,government, philanthropy and real estate development sectors helped define a successful housing strategyand vet recommendations.The group's balance of real estate expertise and accountable relationshipsto low-income communities in the corridor helped develop a strategythat is both inspirational and visionary,while still achievable and grounded in the best practices of implementation. 8 MARCH 2018 1 DISCUSSION DRAFT SW CORRIDOR EQUITABLE HOUSING STRATEGY Through a Community Grants Program,community-based organizations(CBCs)were funded to work with low- income households and communities of color.A large grant funded the Community Alliance of Tenants(CAT)to lead thee ngage me nt of low-income tenants,build public awareness of the project and develop policy recommendations informed by community-based research.Smaller grantstoot her CBCs a IIowed 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 engage menttoaddressing 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 overt he 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.Theysee a n 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 m eet the housing needs along both of these future transit lines. ' NELLBEY 3T SE STARK ST i_µ; r, k� W r-.5 } sr DIVISION.31, r ' E POWEI,t BL � 20 9 FEIp Rp , w I ' Portland 'i SiE FAi'OM�S r, Legend y i �'j r� `:�.,�-"•,1--, -� =aIMISYan 6u5 k�pld Trdn51#PrgppSc+d Allgnm�nt SW{ rridor Light Rail Proposed Alignrr e4S � T �aartar•mile Buffer of r�ignro�nts Tkard OW Boundary r. IU ,5 1 NORTH �Mllea Ro SW CORRIDOR EQUITABLE HOUSING STRATEGY DISCUSSION DRAFT MARCH 2018 9 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 investmentswith 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 •� • F7W 0171 FJW -fig —AMW —1�� Anti-displacement Acquisition and New housing services and preservation of construction and _� Housing and transit goals protections existing housing supportive land use This startswith 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 worktogetherto 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 stationsthat contribute to a sense of community identity.The broader station areas can be more thanjust placesto 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 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 tothe 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 authorityto 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 accessto 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 light rail. 10 MARCH 2018 1 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 eva Iuative framework during implementation. 1. Racial and social equity is a central focus, specifically the reduction of director 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 fort he 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. Deve lope rsand funders have clear understanding about the deveIopment and place-ma king goaIsof the corridor and confidence in the public sectors'support of their efforts to help achieve those goals. 6. Qua ntifiableindicators, including housing targets,are established and tracked overtime. 7. A community-centered organizational structure exists to oversee the strategy overt he long term. SW CORRIDOR EQUITABLE HOUSING STRATEGY DISCUSSION DRAFT I MARCH 2018 111 2: Definingthe need and settingtargets Addressing Today's Housing Crisis and Planning for Long-term Need We are in a housing crisis and no part of the region is 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. But we can meet a significant amount of the current and future housing need in the corridor with bold and earlyaction. Currently,in the SW Corridor 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.Most people must find housing in the private market,which is experiencing rapidly escalating rents and home sale prices. The corridor is estimated to grow by an additional 3,000 new households in the next 10 years.They are expected to be racially and economicallydiverse households and almost all will be renters. 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 billion —a far cry from the$150 million invested over the past five-years.5 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 quantityand depth of need for affordable housing is growing,but itvaries by population and across the various sub-areas alongthe corridor.Some of the most vulnerable populations todisplacement pressures areseniors, very-low income renters,immigrantsand refugees,some communitiesof color,and people with disabilities. The housing crisis is especially acutefor the 22,000 households of color along 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 DowntownTigardanda 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 makesthese households especially vulnerable todisplacement pressures. 4 See Appendix 1"SW Corridor Housing and Equity Needs Assessment"for full explanation of all estimates 5 ECONorthwest,"White Paper 1:Existing I nvestmentTools",2018 12 MARCH 2018 1 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 Rate Households spending more than 30 percent of income on housing,5-year ACS estimate—2011-15 59% White 0.7% "^ 60 ■Renters Homeowners 0 N Black 5.1% c N $0 45% 46% Asian 2.0% v 43% m 40 36% 37% 35% His anic/Latino 2.3% 0 Native0.1% c 30 29% 30% American T Native Hawaiian 0.4% J2 20 18% w Other Race-1.3% w 0 10 2+_Races 3 � V d -2 -1 0 1 2 3 4 5 6 White Black Asian Hispanic Other S-Amwtt C.—ItY5wr.Y(Acs) /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 attractiveto investors,stoking fears of displacement1.Two-thirds of sales of these types of buildings are in lower- income areas and nearly40 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. M i nimum rental targets with today's resources:Several new housing tools have recently become available in the corridor, including Tigard'surban 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 frameworkaimsto distribute resources fairlyequally across the city, including some investment in areaswith 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 neartheTigard 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 arethree 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 1 MARCH 2018 113 Red Rock Creek Commons.The Cityof Tigard is supporting the Community Partnersfor Affordable Housing to develop 48 affordable one-bedroom apartments nearthe Tigard Triangle station.The project intends to serve the populations most at risk of displacement and homelessness with 24 project based vouchers and 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 healthcare provider in Tigard,who provide services or referralsfor 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 targetstothe 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 higherTDCthan in Portland where targets include a balanceof new construction and acquisition or conversion of existing apartments.The estimated TDC isnot the amount each city would invest individually. Othersources 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 ga p fina ncing sources is usually between 30-40 percent of theTDC. Affordable rental housing minimum targets with existing resources versus the actual need IL Actual need Portland ' 200 constructed 20%target need 910 constructed ■ 100 through inclusionary / 500 homes 1,650 acquired or converted housing Total:2,660 homes ■ 200 acquired or converted Portland ■ Total:500 homes 11',of need � ..1 home ■ Up to 20%of Portl and's need 100%of Portland's need met met ■ $829 mi Ilion total ■ $141 million total devel opment costs development costs Tigard ■ 450 constructed 32%target need ■ 730 constructed - ■ 50 acquired or converted 500 homes 850 acquired or converted ■ Total:500 homes Total:1,580 homes r ■ 32%of Tiga rd's need met ��,�go d { 100%of Ti ga rd's need met ■ $214 mi Ilion total $546 mi Ilion total development costs devel opment costs 14 MARCH 2018 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)at 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. Seethe table below for more details. Recommended affordable rental housing stretch targets with new resources Portland 600 constructed Stretching to meet the need in the SW Corridor 100 through inclusionary housing KEW- Total: a cq ui red or converted Actual need 4x240 homes KEa— Total:1,400 homes 41 to 55%of Portland's need met $358-447 mi Ilion total development costs _ Stretch Target 2,300 homes Tigard 600 constructed 150-300 a cq ui red or converted Total:900 homes Minimum Target 1,000 home 48 to 58%of Ti ga rd's need met $307-345 million tota I development costs Policy goals for affordable housing Additiona I pa ra meters will direct affordable housing funding to achieve the a bove to rgets.The strategy recommends: • 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. ■ 1 nvest in housing for those i n greatest need.The proportion of new homes affordable to households with incomes between 0-30% MA should be greater than the proportion within the current stock of affordable housing in the corridor. ■ 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.Agreater percentage of accessible newly constructed homes than is required by the America ns with Disabilities Act should be created for those with disc bilities. ■ 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 great erthan 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 a cquisitionsprioritizeparceIsthat 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 homeswithout rent restrictions.Achieving the most aggressive affordable housing targets will result in construction of approximately 1,300 regulated affordable homes.That meansat 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. Targets for affordable homeownership The affordable homeownership need and associated targetswill be included in the final housing strategy. Some level of legal support, housing counseling, and financial services are needed to support the existing 2,200 low-income homeowners spending over 50 percent of their income on housing costs. Home repair loans, weatherization grants,utility and mortgage assistance are a few of the most needed services. Predatory lending education is also needed to help the 35 percent of all low-income homeownerswho 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. 3: Implementation strategies The opportunities and recommendations described below aim to achieve the overall strategy'sthree 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 strategywill 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 requiring affordable housing to be included in the redevelopment of properties acquired for the project's construction. It also provides an opportunity to raise local revenue for affordable housing in conjunction with the light rail investment. Some benefits of this alignment include better outcomes for people, increased financial sustainabilityof the transit system,efficient land uses, and enhanced political and community support for growth along the corridor. Some healthytensions 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. 16 MARCH 2018 1 DISCUSSION DRAFT SW CORRIDOR EQUITABLE HOUSING STRATEGY SAN Corridor Housing Goals and Implementation Strategies primacy strategies are those required to achieve our goals- Se condary strategies should continue to be explored as this strategy evolves throughmitthe implementation Strategies are either corridor-wide or agency-specific and a re distingu ished below with the fol lowi ng marks. +Corridor-wide strateg ies can be pursued€allaboratively Agency-specificstategies pertain to individual dries or othe r in stitutional pa rtners. t� Commit earlyfinandaI Prevent res identlaI and Increase chalces for new homes resources to address cultural displacement far all household types and near-term housing crisis and incomes long-term needs Strategy 1-1.Grow new Strategy 2-1;Preserve existing Strategy 3-1:Secure and resourcesfor the Iong-term unregulated affordable develop opportunity sites Forma SYS Portland Urban Remwa I rental housing for new construction of Area " Acquire and convert up to ten equitable transit-oriented Fully Capita Iize the Network fDF Oregon unreg ulated affordable multi-family development(TOD) Affordable Housing's Hoose ng apartment buildings into incomelrmt Develop TOD-s€a Ie(100+homes) Acquisition Fund + restricted buildings + affordahlemulti-familybuildingsin Support a Metro regional housing Provide tax exemptions for eKi sting each of the ten station areas in Portland band + unreg ulated affordable housing + and Tigard + 5uppoftreg ion-wideworkforce Strategy 2-2.Strengthen terkant Exe€uteaninteragen€y Equitable TOD housing real estate inw stment trust protections and provide Memorandum of U nderstanding + Explore anemplDXer-assistedhousing anti-displacement sera ices Inclusionaryzoning receivingsite(s) and corridor employer fund+ F and an anti-dis placement services agreement �, Support Portland Just E m rgy Tran siti ur, package + Re€ru it€ommu nity land trusts to the Initiative €orridor+ Create pa my of tenant protections Strategy 1-2:Prioritize existing a€toss Jurisdictions+ Explore opportunities for limited equity resources early on cooperative housing models + Identify opportunities far(immunity Prioritize€ampetitiveresaurtesfor the ben efits agree ments + SW Corridor + Prainote existing incentivesavailable Strategy 3-2:Regulate land use to all multi-family development + and zoning to create affordable and market rate Dousing Strategy 1-3:5trettgtlserk partners to steward the strategy I ncentivire eq uitable TOD through zoning + Form a lasting community-centered Incentivize equitable TODthrough organizational structure to champion development agreements + and impk rne nt the strategy + Adopt middle housing tmisand pol ides that work for IDw-in€ame househol ds + SW CORRIDOR EQUITABLE HOUSING STRATEGY DISCUSSION DRAFT I MARCH 2018 17 s e T 04�) Introducing a New Model of Equitable Growth n 2016 the Portland City Council directed the Bureau of Planning and Sustainability(BPS)to develop a housing strategy for the SW Corridor in anticipation of potential investment in a new light rail line from Downtown Portland to Bridgeport Village.The City of Tigard and the Portland Housing Bureau (PHB)are co-leading th is work with BPS. The new housing strategy is nested within Metro's SW Corridor Equitable Development Strategy,which addresses workforce and economic development needs in addition to • housing.Tigard and Portland city councils will take action on the final SW Corridor Equitable dP Housing Strategy in the summer of 2018, prior to the adoption of the Locally Preferred Alternative for the light rail project. The multibillion-dollar investment in light rail will attract additional investments in housing, providing an opportunity to meet long-term housing needs while also addressing this current housing crisis and the long-standing racial • ' f F disparities and underlying income inequality that exacerbate it. Big moves • . Achieving the housing strategy's three overarching , goals requires bold action and strong support of community-centered stewardship.The biggest of these are captured in the graphic to the right. Other recommended implementation strategies are listed on the next page. MaY2018 SW Corridor Housing Goals and Implementation Strategies ♦Primary strategies are those required to achieve our goals. i ❖Secondary strategies should continue to be explored as this strategy evolves throughout the implementation i Strategies are either corridor-wide or agency-specific and are distinguished below with the following marks. + Corridor-wide strategies can be pursued collaboratively Agency-specific stategies pertain to individual cities or other institutional partners. Commit early financial Prevent residential and Increase choices for new homes resources to address cultural displacement for all household types and near-term housing crisis and incomes long-term needs Strategy 1-1:Grow new Q 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 Renewal rental housing for new construction of YArea - Acquire and convertup to ten equitable transit-oriented > Fully Capitalize the Network for Oregon unregulated affordable multi-family development(TOD) Affordable Housing's Housing apartment buildings into income/rent Develop TOD-scale(100+homes) Acquisition Fund + restricted buildings + affordable multi-family buildings in Support a Metro regional housing Provide tax exemptions for existing each of the ten station areas in Portland bond + unregulated affordable housing + and Tigard + Support region-wide workforce Strategy 2-2:Strengthen tenant Execute an interagency Equitable TOD di d ofUnerstann housing real estate investment trust -- protections and provide Memorandumg+ anti-displacement services Inclusionary zo Explore ars employer-assisted housing p agreement -- ning receiving site(s) and corridor employer fund+ Fund an anti-displacement services Support Portland lust Energy Transition package+ Recruit community land trusts to the Initiativecorridor+ Create parity of tenant protections Strategy 1-2:Prioritize existing across jurisdictions+ Explore opportunities for limited equity resources early on cooperative housing models+ Identify opportunities for community Prioritize competitive resources for the benefits agreements+ SW Corridor+ Promote existing incentives available Strategy 3-2:Regulate land use to all multi-family development + and zoning to create affordable Strategy 1-3:Strengthen and market rate housing partners to steward the strategy Incentivize equitable TOD through zoning + Form a lasting community-centered Incentivize equitable TOD through organizational structure to champion and implement the strategy+ development agreements+ Adopt middle housing tools and policies that work for low-income households+ Key findings for SW Corridor he corridor along Barbur Boulevard and Highway 99W between downtown Portland and Tigard is unique for its relatively affordable housing, recently diversifying population and quality amenities like jobs, schools and stores.However,the housing crisis has affected this area and threatens to displace the low-income households and communities of color who have established communities there. To"ground truth"our work, project staff performed/commissioned an assessment of the area.Some key findings from the SW Corridor Equity and Housing Needs Assessment include: The area's population is growing,with strong growth in communities of color. The SW Corridor population of approximately 103,000 has increased by more than 14,000 people since 2000.While the area is still predominantly White,the growth of communities of color(roughly 25,000 total) is creating a more racially integrated and diverse community. The corridor is an amenity-rich area with convenient access to some of the highest quality jobs and schools in the region. The corridor is home to more than 7,400 businesses providing 121,000 jobs,with an average salary of$60,000.High schools in the area have on-time four-year graduation rates 10 to 20 percent higher than the surrounding school districts,with an average of 85 percent in 2015-16. High quality-of-life outcomes exist overall,while vulnerability exist for many households. Median household income($73,000)and educational attainment (56 percent with a Bachelor's degree) in the corridor is higher than that of the city of Portland.However,there are more than 8,300 low-income renters and 4,400 low-income homeowners who make less than 80 percent of the median family income(MFI). Racial disparities exist across many quality-of-life indicators. Rates of homeownership among Black and Latino households in the corridor,20 and 25 percent respectively,are less than half the rate for White households(56 percent). People of color who rent are disproportionally cost burdened;59 percent of Black renters and 45 percent of Hispanic/Latino renters. The current and future need for affordable housing and services is large but not insurmountable-if we grow resources to meet our housing targets. There are currently over 3,500 low-income renters and 2,170 homeowners paying more than 50 percent of their income on housing costs,which leaves them vulnerable to displacement pressures.Affordable housing investments in the corridor have totaled $16 million in local resources and $134 million from state and federal resources over the last five years.However,there are only 775 regulated affordable homes and minimal amount of homeowner stabilization resources in the area. There are many unregulated affordable apartments,but buildings are selling quickly, There are 327 older,unregulated affordable apartment buildings in the corridor,containing over 11,000 apartments. This accounts for 70 percent of all apartments in the area.Since 2006,these older buildings accounted for 94 percent of apartment building sales.Two-thirds of these sales are in lower income areas,and nearly 40 percent are in racially diverse areas. The future will bring more multi-family housing throughout the corridor,but the current zoning and housing stock in Portland is weighted toward single-family housing. The current housing stock corridor wide is 56 percent detached single-family.More than half of the land area in potential Portland station areas is zoned for single-family homes.However,multi-family housing is expected to account for 88 percent of the corridor's new development. Rising multi-family zoned land values are tracking with increased rents. Over the past five years, rents for two-and three-bedroom apartments have spiked in Downtown Tigard (90 and 48 percent,respectively).Near Portland's Central City,rents are well over double the price a low-income family of four can afford.Rents did not rise much along mid-Barbur,but they rose enough to be out of reach for low-income households. Home sale prices are rising and home flips are occurring. Median sale values of single-family homes have steadily climbed,increasing by 13 percent since the 2007 pre-recession peak,and 20 percent since 2010.The number of home flips (homes purchased twice in a two-year period) per 100 home sales have increased 12 percent since 1997. Lack of funding has resulted in few organizations working in the corridor to meet the housing needs. Sixteen organizations were identified that provide housing and housing-related human services and/or advocacy in the corridor.These organizations identified staff time and capacity and available capital as obstacles to meeting the corridor's housing needs. Affordable rental housing minimum targets versus the actual need Actual Need Portland ° 200 constructedX500 homes 20%target need v 910 constructed 100 through inclusionary housing c, 1,650 acquired 200 acquired Total:2,660 homes • Total:500 homes Portland ii j Up to 20%of need met L 2,660 homes 100%of need met $141 million $829 million Tigard ^ 450 constructed 32%target need e 730 constructed 500 homes • 50 acquired 850 acquired • Total:500 homes Total:1,580 homes • 32%of need met a 100%of need met • $214 million $546 million Recommended affordable housing stretch targets with new resources Portland ° 600 constructed Stretching to meet the need in the SW Corridor 100 through inclusionary housing Actual need 4,240 homes 350-700 acquired Total:1,400 homes 41 to 55%of need met • $358-447 million development costs Stretch target 2,300 homes Tigard 1600 constructed ® 150-300 acquired • Total:900 homes Minimum target 1,000 home • 48 to 58%of need met • $307-345 million development costs SW Corridor Equitable housing Strategy;A New Model of Equitable Crowth-May 2018 Oki w—key-findings 05/07118 AVAILABLE IN YEARS 1 — 3 AVAILABLE IN YEARS 4— 6 AVAILABLE IN YEARS 1 - 10 FUNDING • Existing resources(e.g.Tigard Urban Renewal Area,Portland bond,etc.) •General funds foranti-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 •Tigard Triangle AND DEVELOP •Equitable Transit-oriented Development(TOD)Memorandum of Understanding • Downtown Tigard I PCC parking lot •Construct TriMet,ODOT and Cities equitableTOD properties REGULATORY Station area planning Inclusionary zoning(Portland) I Housing code update(Tigard) LA Development Agreements PARTNERS • Start-up phase •Support lasting community-centered,multi-sector collaborative structure DRAFT SW Corridor Housing Goals and Implementation Strategies Strategies are identified as corridor-wide or agency-specific. Corridor-wide strategies can be pursued collaboratively, while agency-specific ones pertain to individual cities or other institutional partners. Strategies are grouped asa=. or • . . 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 URA district encompassing the potential SW Portland I fight rail stations can usetax increment financing(TIF)to F)to capture the increase in I and a nd property value partially created by the I ight rail project.Preliminary modeling estimates$181- 300 mi Ilion i n maximum indebtedness could be s upported,depending on the s ize of the di strict. 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 rangefrom 120-280acquired ornewlyconstructed affordable homes using$27-63 million inTIF housing set-a side; assumingTIFcanbeused"as is"with leverage. Recommended Actions Considerations ■ Fi rst explore expansions of URAs in East Portland.If ■ URAs divert revenue from overlapping taxingdi stricts capacity is leftover and/or new capacity is freed up (i.e.,city,county,school district portions). from expi ring URAs then conduct additional research, . City Council adopted a policy thatsets aside45%of planning,a nd communityengagementto form a URA revenue in eligible URAs tocreate housingaffordable in SW. to households atorbelow 100%ofAMI. ■ Explorea housing set-a side greater than the 45 0 Acapof15percent ofthe city's total acreage can be percent minimum policy. i ncl uded in URAs. ■ Front I oad funding by providing general fund backing to finance early investments in housing before speculation intensifies. AffordableB.Fully capitalizethe Networkfor Oregon (corridor-wide) NOAH's current$33 million fund draws on many capita I sources to provide short-term financing to for-and nonprofit entities to acquire market rate buildings,unrestricted by regulatoryagreements,with the i ntent that the bui(dings will be transitioned into rent/income restricted affordable housing. Analysis of hypothetical acquisitions of buildings in the SW Corridorshows a $10 million infusion of publicsubsidy reduces thea mount of additional sources needed beyond the NOAH I oan by millions,with the most impact in projects of 50+homes.Those savings could go to other projects,enabling even more affordable housingto be preserved.Cash flow projections for NOAH's fu nd wi th a hypothetical$10 million-dollar public i nvestment a nd better terms indicate that 555 affordable homes could be preserved. 19 1 MARCH 2018 1 DISCUSSION DRAFT SW CORRIDOR EQUITABLE HOUSING STRATEGY Recommended Actions Considerations ■ Determi ne fea s ibility a nd s ource for one-time ■ Longer term fi na ncing is needed to sustain addition of publicsubsidy i nto NOAH's capital affordability over ti me. composition beginning with contributions from both « NOAH's current lending term(48 months)is short cities andcounties. and the i nterest rates are higher a s compared to • Expl ore opportunities to use the new publ ic na ti onal programs i nvestmentto enti c better terms from other ex sting lendersorattractnewlenderswith better rates. There is precedent for thisaction.In2016PHB invested$1 million i n NOAH's land acquisition fund. i Metro i s considering placing a $300-700 million bond on the 2018 ballot to fund regional affordable housing i nvestments. Some funds could be used by the Metro TOD Program to acquire land in high capacity transit corridors.Most of the fundi ng could be passed through to I ocal housinga uthorities to construct new affordable housing or purchase existing unregulated affordable housing. Recommended Actions Considerations ■ Support Metro to refer a bond on the higher end of Constitutional limitations require all housing funded the range of amounts they are exploring. through bond money to be publicly owned though • Supporta constitutional a mendmentto cha ngethe housing can be operated by contracted partners. I ending of credit prohibitions to a I low for better I everage of publicfunds. ■ Continue dialogue with Metro and the community a bout a set-a sides pecific to current and future transportation investments along transit corridors IiketheSW Corridor LRTa nd Division BRT. SupportD. « Meyer Memorial Trust a nd 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 I ess-than-market-rate return to investors in the form of qua rterlycash flow.Partners hope an initial$100 mi Ilion 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 wi th the market. Recommended Actions Considerations ■ Conductduediligencetodetermine ifthe City of It is oneof theonlytools being developed to Portland can bean i nvestoror otherwise support it preserve workforce housing inthe60-120%AMI through grants or by funding operations. ra nge. ■ Seek to aIignREIT activitieswiththe corridor's I nvestment retu rn is a rou nd 4%. hour ing preservation goals. Anchor institutions or large employers could di rectly pa rticipate i n the development of affordable and/or market rate housing for rent or homeownersh ipto el i gible employees by providing property and/or I ow-cost financing.Employers could also pay into a fund dedicated to a Ileviati ngthe housing burden for corridor employees. 20 MARCH 2018 1 DISCUSSION DRAFT SW CORRIDOR EQUITABLE HOUSING STRATEGY Recommended Actions Considerations ■ Hol d discussions with corridor employers to discuss PCC Sylvania's vision for campus development their interests,employee needs,and structuresfor a includes affordable housing. possible public-private or public-public partnership. 21%of OHSU's 16,530employees I ive in the corridor. Support7:11'. Local environmentalists and social justice organizations are championinga 2018 ballot measure to enact a I arge retailer tax to fund projects that reduce greenhouse gases,provide fa mily-wagej obs,and promote economic opportunities for communities of color and low-income communities. Between 20-25%of funding($15-$20 million annually),could support renewable energy and energy efficiency projects in regulated affordable housing buildings.For example,providing energyeffi ciency and rehabilitation grants to nonprofit developers who purchase non-regulated properties to be converted into permanently affordable homes. Recommended Actions Considerations ■ Supportthe referral of this measureto the 2018 The Oregon Legislature is working on similar solutions ba I lot. statewide. • Explore alignments of the Initiative's housing investments with other proposed primaryfunding strategies listed above. Strategy 1-2: Prioritize existing resources early on Commitment to racial equity: Existing funding will not be diverted from commitment to other equity and anti-displacement agendas in other partsof the region,such as North and NE Portland and East Portland. Corridorodk A. Priori ize locally controlled competitive resources for the SW Housing resources have varying policy priorities.Alignment of priorities provides clarity,predictability,and efficiencies. AI i gn i ng a portion of the following resources along the corridor has the greatest potential to meet the corridor's housinggoals: ■ Tigard Triangle URA($188 mi Ilion) ■ Portland Housing Bond($258million) ■ North Macadam URA ■ Portland Construction Excise Tax • MetroTOD Program ■ Other(State,County,philanthropy) Recommended Actions Considerations • Develop optionsfora Tigard Triangle URAsetaside Tigard will undertakea projectto prioritize Tigard for ma rket rate a nd affordable housing. Triangle urban renewal plan projects. ■ PHB contracts with brokers to solicit land a nd bui I ding a cquisition opportunities using either CET or bond fundi ng. SW CORRIDOR EQUITABLE HOUSING STRATEGY DISCUSSION DRAFT I MARCH 2018 121 ■ PH Btargets opportunity sites in the portion of the North Macadam URAthat overlap with the Gibbs station wa Ikshed area. ■ Metro participates in an Equitable TOD MOU with other partners(see details under Goa 13). ■ EngagetheOregon Housing and Community Services Depa rtment to explore options for prioritizing 9 LI HTC a ppl ications for projects within I ight ra i I sta ti ons'wa I kshed areas. developmentB.Promote existing incentives available to all multi-family . . Programs exist using incentives and requirements to i ncrease feasibility and affordability of affordable and market rate housing without direct public investment.Hel pingdevel opers become aware of and experienced with using the following programs could i ncrease thei ruse i n the corridor: ■ System Development Charge exemptions(Portland andTigard ■ Vertical Housing Development Program(Tigard) ■ 1 ncl usionary Housing(Portland) ■ Affordable Housing Property Tax Exemption(Tigard) Recommended Actions Considerations ■ Promote the corridor'shousingvisionfor to Tigard City Council wi 11 soon considera SDCwaiver for developers with marketing materials tailored to affordable housing. d i fferent devel opment models and business pl ans (eg. marketrate,mixed-income and completely regulated affordable housing). Provi de technical expertise to developers to hel p them use the exi sting 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. championA. Forma co mmu n ity-centered organizational structure to the longterm . . An i mpl ementation 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. Thesetend to take a regional view of abroad a rrayof issues such as transit,affordable housing,workforce development and economic development. I ntervi ews withthe Equity and Housing Advisory Group revealed interest in a broadercollaborative I ike those in other regions but also a near-term desire for an oversight functions imilarto the N/NE Neighborhood HousingStrategy.More deta i Is on options forstructures can befound inSection 5 below. 22 MARCH 2018 1 DISCUSSION DRAFT SW CORRIDOR EQUITABLE HOUSING STRATEGY Recommended Actions Considerations Provide public andphilanthropicfundingfor stakeholders ■ A broader regional collaborative could provide a n in the corridorto continueto expl oreforming a oversight function for thegoaIs intheSW Corridor col laborative structure.Due di ligence should identify: Equitable Housing Strategy. purpose a nd purview of a potential structure, • Addi ti onal work by Metro on workforce a nd opti ons for governance a nd membership, economi c devel opment i n the corridor cou Id broaden the pu rvi ew of a n oversight committee or long-term pu bl ic s ector role, collaborative. ■ a backbone organization and initial staffing needs, and ■ seed funder(s)i ncluding philanthropya nd I ocal jurisdictions. SW CORRIDOR EQUITABLE HOUSING STRATEGY DISCUSSION DRAFT I MARCH 2018 123 Goal 2: Prevent residential and cultural displacement Strategy 2-1: Preserve existing unregulated affordable rental housing Commitment to racial equity:Prioritize funding for culturally specific 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 partsof Tigardwhere Hispanic/Latino households reside. affordableA. Acquire and convert up to 10 unregulated . . income/rent restricted buildings . . A ca pitalized strategy to convert some of the corridor's 372 unregulated apartment buildings i nto rent/income-restricted bui Wings is the most effective way to prevent displacement of current residents.The corridor's older stock of a partment bui Wings is selling at a n average of$152,000/unit-much lower tha n the i ndustrystandard of$275,000/unit to construct a new affordable home. New a nd existing sources identified underGoal 1 could be aligned.Partners'acquisition activities could be coordinated to havegreater i mpact.Afoundationfor establishing funding criteria is provided i n Section 2. Recommended Actions Considerations ■ Capitalize NOAH's Oregon Housing Acquisition Fund. ■ 10 buildings is a stretch goal dependent upon newly • Workwith funding partnersto incorporatethe policy created resources underGoal 1(SeeSection 2 for goals for acquisition found inSection2 into their minimumtargets) fundi ng criteria and explorejointNOFA'sand ■ Reha bi litation a nd ongoing ma intenance costs of underwriting processes. bui I dings in the corridor are not known. ■ Conti nueto fund community-based organizations to enga ge tena nts. • Contract with brokers to solicit acquisition opportunities. affordable . . The State's a uthorization for local j urisdictions to provide parti al property tax exemption in exchange forthe provision of regulated affordable housing can be extended to owners of unregulated affordable a partment buildings.Tigard's Afforda ble Housing PropertyTax Exemption iscurrentlyan incentivefor affordable housing. Recommended Actions Considerations • Pass state-authorized I ocal legislation to expa nd tax Portland's property taxexempti on authority is exem pti o n p r ogra ms wi th th e goa I of c o nverti n g excl usively available as an incentiveto participate in existing unregulated affordable housing into the I ncl usionary Housing Program. rent/i ncome restricted housing. 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 areaswhere 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. 24 MARCH 2018 1 DISCUSSION DRAFT SW CORRIDOR EQUITABLE HOUSING STRATEGY 7A. Fund an anti-displacement services package . . Anti-displacements ervices provide long-term cost effectiveness by preventing homelessness and stabilizing renters and homeowners.They can be quicker to dept oy and cheaper than creating rent/income-restricted units.Local cost/household estimates for I egaI aid and emergency rental assistance are$3,000 and$2,300 respectively. Community partners'engagement of low-income renters and homeowners identified the threes ervicetypes in greatest need: 1. Legal Support.Hel p a nswering I egal questions,completing forms a nd providing representation i n court. 2. Housing Counseling.Education,outreach,organizing,and assistance accessing services s uch as financial literacy, credi t counseling,renters rights,a nd home I oans a nd predatory I ending education 3. Financial Services.Di rect moneta ry support to renters a nd homeowners such as emergency rental,utility,a nd mortgage assista nce or home repair a nd weatherization funding. Recommended Actions Considerations Developa packageto includethe immediate needs Thereis precedentfor a package of this type.In 2018, identified by community partners:rental assistance, PHBsubmittedbudget requests for$1million in legal aid,and education and research. renter services and$500,000i n homeownership Identify funding sources beginning with support services. commitments from both the City of Tigard and City of Portland. Expl ore options for a Tigard/Portland I ntergovern mental Agreementto coordinate services. ■ Conti nueto fund community-based organizations to enga ge tena nts. B.Explore creation of tenant protections . . Tena nts a long the corridor have different rights a nd protections depending on which city they I ive in.For example,Tigard does not have a requirement of 90-day notice for no-cause evi ctions.Neither city ha s a rental registration program.Th is i s a n obstacle to coordinated a nti-displacement services a nd preservati on of unregulated affordable housing. Recommended Actions Considerations ■ Form a Community Preservation Workgroupas part Portland isintheprocess ofdeveloping arental of any organizational structure to strengthen tenant registration program. protections in both Tigard and Portland. SW CORRIDOR EQUITABLE HOUSING STRATEGY DISCUSSION DRAFT I MARCH 2018 125 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. • • • (100+homes) buildings in each of 1 station Emportland and Tigard(corridor-wide) I All potential station a reas i nTigard and Portland have parcelszonedtoaIlowmulti-family housing at a density supportive oftransit.Public sector-owned parcels can be prioritized for affordable housing.Regulated affordableTODateach station would provide I ow-income households with a pproximately 1,300 new choices of whereto I ive a long the corridor. New a nd existing sources identified underGoal 1 could be aligned.Partners'fu ndinga nd I and activities could be coordinated to have greater impact.Afoundation for establishing funding criteria is provided inSection 2. Recommended Actions Considerations ■ Securefundi ng under Goal 1 10 buildings isastretch goal partiallydependent See deta i Is on opportunity sites i nSection 4 below. upon InclusionaryHousinginPortland andthenewly created resources under Goal 1(See Section 2 for minimumtargets) B.Execute an interagency Equitable •D . . Publicly owned parcels area n important opportunity to develop affordable housing.A MOU between public agencies to coordinate land acquisition and development can leverage scarce resources and provide a predictable pipeline of sites for affordable housing funders and developers. Afew sites with TOD potential area lreadyowned by the public sector.All I ight rail alignment scenarios require additional parcels to be acquired that will be redevelopable afterthe I i ght rail construction.See Section 4for more details. Recommended Actions Considerations ■ Execute a MOU between the City of Portland,Cityof Mostsites will not beavailable until 2027or later. Tigard,Tri Met,and Metro as a condition of the I i ght ra i I project's Local ly Preferred Al ternative that New FTA Joi nt Devel opment rules a re favorable to ow ned land. el opi ng affordable housing on tra nsit agency i ncl udes affordable housing funding a nd developmentgoaIsfor a specified amount of sites. ow I :4 11 REIM Hous i ng production estimates from Portland's I nclusionary Housing Program i n SW a re between 100-200 affordable homes over the 10-yea r housing strategy.The program allows market-rate devel opers to meetthei r affordable housing requi rements on-site or by paying a n in-lieu fee or creating the housing at a nearby site.Givingdevel opers a long the corridor n option to create off-site units on a pproved receiving sites i n the corridor would lower the ba rrier to participation i n the program.Receiving sites could contribute to one or two of the buildings in Strategy 1Aa bove and serve as a n i ncentive to pa rticipate i n a ma ster development agreement to i ncentivize deeper affordability I evels. 26 MARCH 2018 1 DISCUSSION DRAFT SW CORRIDOR EQUITABLE HOUSING STRATEGY Recommended Actions Considerations ■ Analyze the feasibility of producing the housing ■ PerCitypolicy,a receiving site cannot be supported devel opment(s)that would include the off-site by a ny additional P H B s ubsidy. affordable homes. ■ A number of publ icly controlled parcels could serve as receiving sites. ■ InclusionaryHousing does not create deeply affordable housing. CorridorD.Recruit community land trusts to the SW . . CLTs own land and provide I ong-term ground leases to providers of affordable rental housing or low-income households to purchasethe 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 CLToperatorsand developers abouttheabilityto Low-income homeowners capturesome limited equity. partner in the SW Corridor. . . . . . . This form of multi-family housing could offer residents in the corridor much needed affordable ownership opportunities. Residents would not own the land or thei r i ndividual home,they acquire shares in the cooperative corporation that holdstitleto the building.Share prices are restricted to levels wel I belowthetypi cal down payment required forthe acquisition of a single-familydwel ling.Resale prices are restricted to maintain affordability. Recommended Actions Considerations ■ Explorea roleforNOAH's acquisition financing if 0 Itdoesnot build homeowner assets throughequity buildings are purchased firstto preserve affordability 0 A nonprofit sponsor is needed to initiallyorganize with the goa I to I ater transition into cooperative this model. housing. Project-specific agreements between developers and community coalitions on large-scale,redevelopment projects ensures community supportforthe projects in return for creating more affordable housing orother community benefit. This decreases a developer's riska nd maximizes the positive impact of development. Recommended Actions Considerations ■ An oversight body or other corridor-specific coalition ■ There a re I i mited I arge redevelopment opportunities canidentifypotential developmentparcels inthe inthe SWCorridorwithexception oftheTigard corridortowatch for opportunities tonegotiate Triangle. CBAs. ■ Portland's CEIP applies to all publiclyfunded large- scaleprojects includingthose using affordable housing resources. SW CORRIDOR EQUITABLE HOUSING STRATEGY DISCUSSION DRAFT I MARCH 2018 127 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 engage mentduring planning processes. Operationalize Portland Comprehensive Plan anti-displacement and equitable housing policies through station area plans. * A. Incentivizing equitable •D through zoning (corridor-wide) Cu rrentl y 56%of all acres i n the Portland's potential station areas is zoned s ingle fa mily.The exi sti ng mixed-use zon i ng in station areas is often shallow with an immediate transition to I ow-density zoning.Mixed-use,I ow-rise TO D can be developed in this zoning but the i mbalance of single-family zoning does not a Ilow for the incremental increases in residential density necessaryto create a transit-oriented community.Careful rezoning to a Ilowfor more 20+unit multi- fa mi I y buildings would result in more affordable homes through Portland's I nclusionary Housing Program(under 20 units does not trigger affordability requirements). The City of Tigard recently rezoned most of the land in the Ti gard Triangle to accelerate pedestrian-friendly,mixed-use development by streamlining the development review process.Downtown already has mixed use zoning,but the city will explore additional changes to its development codeto allow additional residential densityin this area. Recommended Actions Considerations Coordi nate a corridor-wide station a rea planning process, Ba rbur Transit Center a nd the Burlingame stations a re i n begi n n i ng i n select station a reas. designated Town Centers i ntendedfor more multi-family housing. B.Incentivizing equitable •D through development . . Development agreements between a ci tya nd developers are binding contracts that increase projectfeasibility and production of community benefits beyond what underlying regulations provide.Potential development agreements in the corridor could address thefol lowingtools: ■ Increased entitlements ■ Participating in an inclusionary housing obligation receiving site(Portland only) ■ Infrastructure subsidy:sidewalks and storm water management ■ Participating in off-siteshared parking(i.e.park and rideor parkingdistrict) ■ System Development Charge waivers ■ Participate ina streamline reviewand permitting program Recommended Actions Considerations ■ After station area planning is complete,determine ■ Park&Rides atthe Ba rburTra nsit Center a nd 53rd the additional affordability goals a nd i ncentives to streetstation are shared parking candidates. to rgetfor development agreements in orderto further i ncentivize projects that will notgetbuilt The corridor requires significant storm water infrastructure investments. even with revised zoning. 28 MARCH 2018 1 DISCUSSION DRAFT SW CORRIDOR EQUITABLE HOUSING STRATEGY .7. c.Adopt middle housing tools and policies that work for low-income households(corridor-wide) Portland's Residential I nfiII Project may allow duplexes,triplexes,and additional AD Us insingle-family zoned areas, incl uding i n SW I fight rail station areas.If barriers to participation are removed,I ow-income homeowners could use these new a I lowances to bring in more income.Affordable housing requirements could also a ccom panythes a new a I lowances. The City of Tigard will consider updates to the development code to a I low a wider variety of"missing middle"housing options that wi I I provide for a wider variety of housing types to accommodate residents at a I I stages of I ife.These code updates will include zoning and design standards for a broader range of accessory dwelling units and duplexes,as wet I as cottage c usters,I ive/work units,courtyard apartments,and others mall-and medium-sized units.The updates may also incIudechangesthatIower barriers to the development of affordable housing. Recommended Actions Considerations ■ Identify sources of publicfunding to provide low-cost Homeowner with older mortgages at higher interest fi na ncingto low-income homeowners. rates may need help refinancing to take advantage of • Adopt pol i cies that create more affordable housing. development opportunities. SW CORRIDOR EQUITABLE HOUSING STRATEGY DISCUSSION DRAFT I MARCH 2018 129 4: Pipeline of Opportunity Sites The corridor's affordable housing stretch targets depend upon growing new resources to build one affordable TOD at 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, and Metro will be the primary vehicle for prioritizing public properties for new affordable TOD. It will serve as a condition of the light rail project's Locally Preferred Alternative and include affordable housing development goals. Analysis is underwayto identify development and funding scenarios for a pipeline of new affordable TODsalong the corridor.The final housing strategy will include hypothetical housing prog ra m m i ng,ca pita I needs,and funding strategiesfor 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 maybe available to provide some amount of affordable housing; the BarburTransit Center and land under portions of the Ross Island Bridgehead.Redevelopment scenarios will account for their current transportation functions. Two otherfuture development projects should also be supported in addition to opportunity sites more closely tied tothis housing strategy: The South Waterfront North District Development Agreement between ZRZ Realty Company and the Portland Development Commission (now Prosper Portland)dedicated a parcel for affordable housing. The future development will help meetthe North Macadam URA housing goals ratherthanthis strategy's goals. However,it is located within the potential Gibbs light rail station walkshed so the affordable housing will contribute to the overall build out of the stationarea. - 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. 30 1 MARCH 2018 1 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."This could take the form of a community-centered cross-sector regional collaborative focused on equitable TOD but with a near-term responsibility to steward the corridor's housing strategy.An initial concentration on housing in the corridor could broaden both geographicaIlyand by sector. Metro's SW Corridor Equitable Development Strategy's focus on workforce and economic development in the corridor could broaden the col I a borative's scope beyond just housing. Supporting investments like the Division Street bus rapid transit line and equitable TOD projects along existing light rail and streetcar IinescouId broaden the scope geographically. Another organizational form to explore is an oversight body tasked with advising and overseeing the implementation activities made by public partners. Securing public and philanthropic funding for these membersto continue to exploreforming a structure is an important next step.Any organizational structure should include meaningful decision-making authority for and accountabiIitytolow-income people and communities of color and equitable funding for community based organ izations to participate. The table below summarizes some oft he elements of a collaborative.Many of these elements area Iso relevant for an oversight structure. The final strategy will include a set of options for structures.See "White Paper 4: Organizational Strategies"linked in the appendix for a full description of col I a borativesin other regions and more detail of each element. Elements of organizational structures Elements Questions Purpose What is the purpose and purview of a potential structure? Size Is the structure intentional about the size of its membership? Why or why not? Legal structure Is it formally incorporated as a 501(c)(3)?Why or why not?If not incorporated, are there formalized agreements among partners? Inclusive governance Howare decisions made?Who has decision-making powerand why? Membership Is membership restricted to specific types of organizations?What is the public sector role over the long-term? Equitable funding What are sources of funding? Who are potential seed funders?Are members compensated?Why or why not? Staff Is there dedicated staff? If so, how and where are they employed? Geographic reach Where is the work focused? Backbone organization Is there backbone organization? SW CORRIDOR EQUITABLE HOUSING STRATEGY DISCUSSION DRAFT I MARCH 2018 31 Conclusion Meaningful fi na ncia Ica pita Iization of this strategy and an effective community-centered orgy nizationa I structure to seek solutions together 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 pasta nd provide anew model of equitable growth. 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, advocacyand 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 U" Ago 1111111hu 111111111u Lill 11 Wp 32 MARCH 2018 DISCUSSION DRAFT SW CORRIDOR EQUITABLE HOUSING STRATEGY SW Corridor Equitable Housing Strategy: Discussion Draft Recommendations (applicable to Tigard) Goal 1: Commit early financial resources to address near-term housing crisis and long-term needs Strategy 1-1: Grow new resources for the long-term B. Fully Capitalize the Network for Oregon Affordable Housing's Housing Acquisition Fund Explanation: The Network for Oregon Affordable Housing is a non-profit that provides short- term financing to for-and nonprofit entities to acquire market rate buildings,to transition them into rent/income restricted affordable housing.A$10 million investment in the fund-from regional,city, and county sources could preserve 555 affordable units. Recommended Tigard action: Provide some resources for preservation of Tigard affordable housing or advocate for county or regional resources to be invested in the fund. C. Support a Metro regional housing bond Explanation: Metro is considering placing a$300-700 million bond on the 2018 ballot to fund regional affordable housing investments. Some of these funds could be prioritized for the SW Corridor. Recommended Tigard action: Support the bond and advocate for allocations in the SW Corridor. E. Explore an employer-assisted housing and corridor employer fund Explanation: Anchor institutions/large employers(such as PCC Sylvania)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. Recommended Tigard action: Hold discussions with corridor employers/institutions. Strategy 1-2: Prioritize existing resources early on A. Prioritize competitive resources for the SW Corridor Explanation: Aligning a portion of such resources as urban renewal funds and Metro TOD funds along the corridor has the greatest potential to meet the corridor's housing goals. Recommended Tigard action: The Board of the TCDA made its first allocation of funds to support an affordable housing project; make future allocations. B.Promote existing incentives available to all multi-family development Explanation: Currently cities have programs with incentives and requirements to increase feasibility and affordability of affordable and market rate housing without direct public investment. Recommended Tigard action: Promote existing programs: • System Development Charge exemptions • Vertical Housing Development Program • Affordable Housing Property Tax Exemption Strategy 1-3: Strengthen partners to steward the strategy A. Form a lasting community-centered organizational structure to champion and implement the strategy Explanation: A collaborative of public agencies and community-based organizations can connect equitable TOD strategies with public,private,philanthropic, and nonprofit leaders who have the ability to implement them. 1 Recommended Tigard action: Support community-based organizations working in Tigard. Goal 2 Prevent residential and cultural displacement Strategy 2-1: Preserve existing unregulated affordable rental housing A. Acquire and convert up to ten unregulated affordable multi-family apartment buildings into income/rent restricted buildings Explanation: A capitalized strategy to convert some of the SW 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. Recommended Tigard action: Invest in the NOAH acquisition fund. B. Provide tax exemptions for existing unregulated affordable housing Explanation: Property tax exemption programs could be expanded with the goal of converting existing unregulated affordable housing into rent/income restricted housing. Recommended Tigard action: Tigard currently provides exemptions for non-profit owned affordable housing. Expand eligibility to include privately owned housing that is converted to regulated affordable housing. Strategy 2-2: Strengthen tenant protections and provide anti-displacement services A. Fund an anti-displacement services package Explanation: Anti-displacement services, such as tenant legal support,housing counseling, and emergency rent assistance provide long-term cost effectiveness by preventing homelessness and stabilizing renters and homeowners. Recommended Tigard action: Contribute funds to non-profit service providers in Tigard. B. Create parity of tenant protections across jurisdictions Explanation: Tenants along the corridor have different rights and protections depending on which city they live in. Recommended Tigard action: Strengthen tenant protections, such as 90-day notice for no-cause evictions. 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(TOD) A. Develop TOD-scale(100+homes)affordable multi-family buildings in each of the ten station areas in Portland and Tigard Explanation: Coordinate funding to build transit oriented affordable housing at each station area. Recommended Tigard action: Seek affordable housing construction at each station area in Tigard. B. Execute an interagency Equitable TOD Memorandum of understanding Explanation: An MOU between agencies would guide potential affordable housing development of remnant land purchased for the light rail construction. 2 Recommended Tigard action: Execute a MOU between the City of Portland,City of Tigard, Washington County, TriMet, and Metro as a condition of the light rail project's Locally Preferred Alternative that includes affordable housing funding and development goals for a specified number of sites. D. Recruit community land trusts(CLT's)to the corridor Explanation: 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 Tigard action: Engage CLT operators and developers about the ability to partner in the SW Corridor. (Tigard staff are applying for a Metro grant that would explore a CLT model.) E. Explore opportunities for limited equity cooperative housing models Explanation: This form of multi-family housing could offer residents in the corridor much needed affordable ownership opportunities. Residents would not own the land or their individual home, they acquire shares in the cooperative corporation that holds title to the building. Recommended Tigard action:No direct action needed. F. Identify opportunities for community benefits agreements Explanation: Community benefits agreements are project-specific agreements between developers and community coalitions on large-scale,redevelopment projects to ensure community support for the projects in return for creating more affordable housing or other community benefit Recommended Tigard action: If applicable execute a community benefit agreement as part of the development of publically owned land. Strategy 3-2: Regulate land use and zoning to create affordable and market rate housing A. Incentivize equitable TOD through zoning Explanation: The areas around transit stations should have zoning that allows high density mixed use buildings. Recommended Tigard action: Tigard currently has suitable transit supportive mixed use zoning in the downtown and Triangle. Amend the development code to further reduce development barriers (such as raising maximum density in downtown). B. Incentivize equitable TOD through development agreements Explanation: Development agreements between a city and developers are binding contracts that increase project feasibility and production of community benefits beyond what underlying regulations provide Recommended Tigard action: Include affordable housing as part of development agreements for urban renewal agency owned land. C.Adopt middle housing tools and policies that work for low-income households Explanation: Allowing duplexes,triplexes,cottage clusters and additional ADUs in single-family zoned areas can provide lower cost housing. Recommended Tigard action: Support the Housing Option Task Force recommendations to update the development code to allow a wider variety of"missing middle"housing options. 3 Town Center Development Agency Me Ci0i of rigard's Urban ReneuW*ency TCDA M E M O R A N D U M TO: Chair Cook and the Directors of the Town Center Development Agency Board FROM: Sean Farrelly, Redevelopment Project Manager RE: Main Street at Fanno Creek Properties Disposition and Development Agreement Executive Summary DATE: April 25,2018 This memo outlines the key provisions of the development and disposition agreement(DDA) for the sale and redevelopment of the Main Street at Fanno Creek properties. 1. Consideration.Ava Tigard Development LLC will pay the appraised fair market value for the site. The consideration also includes development of the site as provided in the agreement. Earnest money is $30,000, $15,000 of which is non-refundable except for breach by TCDA. (Section 3.2) 2. Project Description. The agreement commits the developer to build a mixed use, multi-family residential and retail development.The DDA describes the project in general terms to provide flexibility.As a condition precedent to closing,the City will have opportunities to review and approve design details: a.Developer will submit the Project Plan within 90 days of signing. (Section 3.6.1.a) b.TCDA staff reviews and public open house is held on the detailed plans.TCDA Board then reviews and approves plans or provides comment. If the parties are unable to agree,the design issue is submitted for dispute resolution. (Section 3.6.1.a) c. Land use approval.Developer must obtain any final land use approvals and permits for the Project required by the Code of the City of Tigard. (Section 3.6_l.b) 3. Contingencies.Additional contingencies beyond the standard ones (such as property inspection and clear title)include: a.Developer has received final construction plan approvals and building permits are ready to be issued. (Section 3.6.1.e) b. The TCDA has obtained a Property Line Adjustment on the property. (3.6.1.h) c. Developer has submitted a financial plan 6 months from the effective date and demonstrated financial feasibility of Project by submitting binding financing commitments and other documentation reasonably required by TCDA. (Section 3.6.3 c) d. Receipt of Certificate of Completion from DEQ. (Section 3.6.1.c) e. Receipt of an environmental insurance policy(payment of the premium for which will be a Developer obligation). (Section 3.621) f.Receipt of BOLI determination concluding that this is not a prevailing wage project. (Section 3.6.2.8) 4. Propery sold as is Developer waives any claims relating to the condition of the property except may seek reimbursement from TCDA of 50% of its costs,not to exceed$100,000 for remediating"unforeseen environmental conditions" to meet mandatory environmental standards. Excluded from reimbursement are non-environmental unforeseen conditions, any expenses associated with complying with the DEQ approval, due diligence costs,Developer's internal costs,expenses not required for legal compliance and penalties. (Section 3.9) 5. Schedule: a. Closing within 12 months of DDA signing,although the parties agree to be reasonable in granting an extension if the other side is proceeding diligently. (Section 3.3) b. Developer to commence construction not less than 12 months from closing. (Section 6.2.2) c. Substantial completion 2 years from closing. (Section 6.3) d. Schedule changes must be approved by TCDA;approval shall not unreasonably be withheld. 6. Remedies: a. Pre-closing breach by Developer: payment of$20,000 liquidated damages to TCDA (credited against earnest money). (Section 10.1.). b.Pre-closing default by TCDA:return of earnest money or developer may sue for specific performance. (Section 10.1) c. Post-closing default by Developer. For most defaults, city has all remedies available by law. In addition,if Developer fails to commence construction within 1 year of the closing date,or fails to substantially complete within 2 years of commencement, city may repurchase the property and all improvements for 75% of the purchase price and 75% of the total amount of all hard costs of construction plus soft costs,including design,permitting and other directly related costs reduced by the amount of any assessments,liens or other charges against the property that Developer has not paid as of the date of re-conveyance. (Section 10.31) 7.Miscellaneous. a.The project description includes "a minimum of 1000 square feet of publically accessible outdoor seating facing Fanno Creek."The space's final design,cost allocation,and ownership/easement status will be a subject of negotiation with the developer and TCDA review and approval. b. TCDA must approve any assignment or transfer to a third party except normal financing. (Section 12.25) c.TCDA has reasonable access to site during construction to monitor conformance with design and construction specifications. (Section 5.2)