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05/06/2019 - PacketPLANNING COMMISSION AGENDA – MAY 6, 2019 City of Tigard | 13125 SW Hall Blvd., Tigard, OR 97223 | 503-639-4171 | www.tigard-or.gov | Page 1 City of Tigard Planning Commission Agenda MEETING DATE: May 6, 2019 - 7:00 p.m. MEETING LOCATION: City of Tigard – Town Hall 13125 SW Hall Blvd., Tigard, OR 97223 1. CALL TO ORDER 7:00 p.m. 2. ROLL CALL 7:00 p.m. 3. COMMUNICATIONS 7:02 p.m. 4. CONSIDER MINUTES 7:04 p.m. 5. BRIEFING 7:05 p.m. AFFORDABLE HOUSING PLAN (Associate Planner Schuyler Warren) 6. TRAINING/DISCUSSION – 7:20 p.m. LAND USE LEGAL (City Attorney Shelby Rihala) 7. OTHER BUSINESS 8:05 p.m. 8. ADJOURNMENT 8:10 p.m. LAND USE PLANNING TRANSPORTATION PLANNING PROJECT MANAGEMENT Tigard Housing Strategy Implementation Plan Tigard Planning Commission May 6, 2019 Project Overview DLCD Grant •Housing Strategy Implementation Plan (HSIP) funded by state grant •House Bill 4006 (2018) –allocated $1.73 million for planning technical assistance •To qualify, >25% of city’s renter households must be “severely rent burdened” (pay >50% of monthly income on rent) •27% of Tigard’s households are severely rent burdened APG Tigard Housing Strategy Implementation Plan 2City of Tigard Project Overview •Objective:Identify strategies and implementation steps for increasing the supply and affordability of housing in Tigard •Build on past and ongoing housing efforts: •2013: Housing Needs Analysis •2016: Affordable Housing Strategies Report •2018: Code amendments for “missing middle housing” •2018: Southwest Corridor Equitable Housing Strategy (partnership with Portland and Metro) •2019: Tigard Triangle Equitable Urban Renewal Implementation APG Tigard Housing Strategy Implementation Plan 3City of Tigard Project Schedule APG Tigard Housing Strategy Implementation Plan 4City of Tigard WE ARE HERE Affordable Housing Plan (AHP) Funding Sources 1.Construction Excise Tax 2.CDBG Entitlement / HOME Program 3.TIF Set Aside Tools that Remove Development Barriers 4. Reduced or Exempted SDCs 5. Development Fee Reductions 6. Tax Abatements 7. Addressing Restrictive CC&Rs Programs to Develop or Preserve Affordable Housing 8.Inclusionary Zoning 9.Preservation of Low Cost Market Rate (LCMR) Housing 10.Tenant & Homeowner Protections 11.Incentive Zoning 12.Community Land Trusts 13.Land Banking & Acquisition 14.Staff Allocation to Housing Program 15.City Support for Resident Services APG Tigard Housing Strategy Implementation Plan 5City of Tigard Strategy Evaluation Evaluation Criteria •Administrative Investment: How much staff time and resources (financial or otherwise) are required to establish the tool? •Feasibility:Will stakeholders accept or support the tool? Is the tool legal? Are there other barriers to consider? •Flexibility:Can the tool be flexibly used to achieve multiple outcomes? •Impact:How many units or dollars might be produced or preserved, relative to other tools? Strategy Rating APG Tigard Housing Strategy Implementation Plan 6City of Tigard Good / Few drawbacks Okay / Some drawbacks Difficult / More drawbacks ?Unknown? 5. Construction Excise Tax Description: Tax on the value of new construction projects. Up to 1% for residential construction; no cap on commercial and industrial construction. Funding uses are defined by state statute--developer incentives, local affordable housing programs, and state homeownership programs. Usage in Tigard: n/a Usage in other cities: Portland, Milwaukie, Corvallis, Cannon Beach, Hood River County, Hood River City, Newport, and Bend; Metro has separate CET APG Tigard Housing Strategy Implementation Plan 7City of Tigard Implementation steps: •Discuss with key stakeholders •Explore program scenarios •Budget and develop program priorities •Adopt and implement CET Pros: •Flexible and straightforward to administer •Up to $1 million annual revenue (est.) Cons: •Likely opposition from developers & property owners Admin. Investment Feasibility Flexibility Impact Funding Sources 1. Construction Excise Tax Description: Tax on the value of new construction projects. Up to 1% for residential construction; no cap on commercial and industrial construction. Funding uses are defined by state statute--developer incentives, local affordable housing programs, and state homeownership programs. Recommendation: Adopt a 1% CET on both residential and commercial/industrial development. Priority: High APG Tigard Housing Strategy Implementation Plan 9City of Tigard 2. CBDG Entitlement Description: Federal HUD programs; annual funding allocation based on formula. CDBG entitlement funds can be used to support affordable housing (e.g., acquisition, rehabilitation, public improvements) but not to construct new housing. HOME funds can be used for direct construction of housing. Recommendation: Pursue joint CBDG entitlement, in partnership with Washington County. The City could potentially pursue full entitlement at a later time, after some years of experience with joint entitlement. Recommend not pursuing HOME program funds. Priority: High APG Tigard Housing Strategy Implementation Plan 1 0City of Tigard 3. TIF Set Aside Description: TIF generated by increase in property value and tax revenues in Tigard’s Urban Renewal Areas (URAs). Funds used to acquire property, construct public improvements, incentivize development, and augment development projects. Recommendation: •Create a TIF set-aside for affordable housing development and programs in both the Tigard Triangle and City Center URAs. •Begin setting aside funds for affordable housing projects as a medium-term action, over the next 5 years or so for both URAs. •Consider set-aside amounts of 5% to 15% annually for both URAs. Priority: High APG Tigard Housing Strategy Implementation Plan 1 1City of Tigard Tools/Programs that Remove Development Barriers 4. Reduced of Exempted SDCs Description: System Development Charge (SDC) exemption is a deferral, reduction or exemption of SDCs for affordable housing. Can be applied to regulated affordable housing and/or specific housing types. Often “missing middle” housing types do not match the impact levels assumed in SDC methodologies –the impact of housing with smaller sizes and lower occupancy is not equivalent to that of larger units. Recommendation: A.Offer deferral and financing of SDCs at a low interest rate for desired housing types Priority: Medium B.Participate in a regional process with other Washington County service providers to lower non-City SDCs. Priority: Medium C.Update the City’s SDC methodology to tie fees to dwelling size. Priority: Low (in the near term) APG Tigard Housing Strategy Implementation Plan 1 3City of Tigard 5. Development Fee Reductions Description: Development fee reduction is a tool to reduce, waive, or defer development fees –such as permit fees –in order to promote the development of affordable housing. Permit fees add cost to a development, so reducing these costs also reduces development barriers. Recommendation: Not recommended. Expected impact is minimal, suggest focusing efforts on strategies with greater impact. Priority: N/A APG Tigard Housing Strategy Implementation Plan 1 4City of Tigard 6. Tax Abatements Description: Tax abatements (or exemptions) are reductions in property taxes for affordable housing. Abatements may be provided to non-profit corporations or to private developers in exchange for developing affordable housing. Recommendation: In the near-or medium-term, pursue the following tax abatement policies: •Update the City’s existing Nonprofit Low -income Housing program to terminate the tax exemption if eligibility criteria are not met; apply to land held for development of affordable housing.Priority: Medium •Adopt a tax freeze for residential rehabilitation; apply controls for rental rates during the period of the abatement. Priority: Medium APG Tigard Housing Strategy Implementation Plan 1 5City of Tigard 7. Addressing Restrictive CC&Rs Description: Many subdivisions and planned unit developments (PUDs) adopt private contractual agreements that place certain restrictions on development, generally referred to as Covenants, Conditions and Restrictions (CC&Rs). CC&Rs can create restrictive policies for ADUs, land use, land division, leasing requirements, and architectural review. Policy can be developed to limit future CC&R restrictions on missing middle housing in subdivisions and PUDs. Recommendation: Pending the adoption of HB 2001, adopt policies in the Tigard Municipal Code that prohibit a private contract (i.e., CC&Rs) from including provisions that restrict middle housing. Priority: High APG Tigard Housing Strategy Implementation Plan 1 6City of Tigard Programs to Develop or Preserve Affordable Housing 8. Inclusionary Zoning Description: A tool to require a portion of affordable housing within new market-rate multifamily development with 20+ units. State mandates most provisions; must include a fee-in-lieu payment alternative and developer incentives to off-set costs. Recommendation: Implementation not recommended at this time. If state provisions for administering IZ programs were revised to remove some of the barriers to implementation discussed above, future implementation in Tigard may be more feasible. Tigard should track the progress of Metro-area cities that adopt IZ, to assess feasibility for local adoption in the future. Priority: Low APG Tigard Housing Strategy Implementation Plan 1 8City of Tigard 9. Preservation of LCMR Housing Description: Low Cost Market Rate (LCMR) housing is at risk of losing its affordability as property values increase. Tools to preserve affordability include creating a housing preservation fund, grants/loans for capital repairs or maintenance, acquiring and converting LCMR housing to regulated affordable housing, and tax exemptions for conversion to regulated housing. Recommendation: •High Priority: Promote the use of the City’s Nonprofit Low -income Housing program for use in acquisition and rehabilitation projects. •Medium Priority: •Develop a low-interest loan program for rehabilitation of LCMR in exchange for regulating rents to preserve affordability (e.g., making them affordable at or below 80% AMI). •Continue exploring the option of a Housing Preservation Fund. Collaborate with the Community Housing Fund on a potential partnership for LCMR preservation. •Adopt a tax freeze for residential rehabilitation and apply controls for rental rates during the period of the abatement. •Low Priority: Discuss with Washington County the potential for partnerships in acquiring LCMR housing and converting to regulated affordable housing. APG Tigard Housing Strategy Implementation Plan 1 9City of Tigard 10. Tenant and Homeowner Protections Description: Local policies and programs to help tenants and homeowners access and retain housing. Tenant protection policies and programs: rent regulation, notice for no-cause evictions, rental application reform, registration and inspection, rental relocation assistance, and landlord/tenant mediation. Homeowner protection programs: education, financial and technical assistance. SB 608 just singed into law—caps annual rent increases, limits no-cause evictions, other tenant protections. Recommendation: • Develop rental registration and inspection programs . Rental inspection could follow approximately two years after onset of a registration program. Priority: High • Adopt rental application reform policies -potentially including application fee reform; criminal screening and egregious income screening criteria reform; and security deposit reform. Priority: Medium to track progress in implementing rental reform policies. • Consider other programs and policies in the long-term to determine if they can provide sufficient impact in meeting tenant and homeowner protection needs. Priority: Low APG Tigard Housing Strategy Implementation Plan 2 0City of Tigard 11. Incentive Zoning Description: Tool implemented through Community Development Code that provides incentives to developers in exchange for affordable housing (AH). Incentives allow projects that wouldn’t otherwise be allowed by code and make AH development more financially feasible. Recommendation: • Density Bonus –Allow the number of units on a development site to be increased by 1 unit for each affordable housing unit provided, up to an appropriate maximum that to be determined by the City. Priority: Low to Medium • Reduced Parking Requirements –Reduce parking requirements for affordable housing developments near high-frequency transit service to 0.75 spaces per unit. Allow a reduction of 0.25 spaces per unit for affordable developments in all other areas. Priority: Medium • Relief from Mixed Use Requirements –Allow multifamily projects that are 100% affordable to avoid building commercial uses on the ground floor. Require a minimum affordability period of 60 years. Priority: Medium APG Tigard Housing Strategy Implementation Plan 2 1City of Tigard 12. Community Land Trust Description: Tool that facilitates permanently affordable homeownership. CLT (e.g., Proud Ground) owns the land and provides long-term ground lease to low-income household to purchase the home. Allows low -income homeowners to capture equity as the home appreciates, but ensures that it remains affordable for future home- buyers. Tigard could support existing CLT(s) by: donating City-owned land, providing grants/loans for development, or providing down payment assistance grants. Recommendation: Partner with Proud Ground to expand their capacity to provide affordable homeownership in Tigard. Recommend the following programs in partnership with Proud Ground: •Near-or medium-term: Down payment assistance program •Long-term: Development/rehabilitation grants, donation of City-owned land, and an annual funding set-aside Priority: High APG Tigard Housing Strategy Implementation Plan 2 2City of Tigard 13. Land Banking & Acquisition Description: Land acquisition involves the City acquiring land for development of affordable housing (AH), ideally in areas where property values are about to rise. Land banking is acquisition and holding of properties for extended periods with intent to develop AH. Land banks are often are quasi-governmental entities created by municipalities to effectively manage and repurpose an inventory of underused, abandoned, or foreclosed property. Recommendation: Recommend city take steps to be prepared if properties are presented but avoid developing an extensive program targeting land banking and acquisition. Amount of funding and administrative investment to develop program and acquire property should not be a high priority of the city with the number of properties expected to receive in return based on availability of land in the Tigard. Priority: Low-Medium APG Tigard Housing Strategy Implementation Plan 2 3City of Tigard 14. Staff Allocation to Housing Program Description: Strategy to add administrative capacity by dedicating one or more staff to housing efforts—such as overseeing affordable housing programs, developing housing policy, and serving as liaison with housing partners. City should approach as long-term roadmap for staffing housing program over next 10 years. Develop plan to add staff capacity as City and tax base grows, and as housing needs increase. Match staffing levels to implementation of other strategies in Affordable Housing Plan. Recommendation: Develop a Staffing Roadmap –The roadmap should address staffing for its affordable housing work over the next 10 years as the population and tax base grow. Priority: Low-Medium APG Tigard Housing Strategy Implementation Plan 2 4City of Tigard 15. City Support for Resident / Supportive Services Description: This strategy involves the City extending support to existing providers of resident services—typically nonprofit agencies. Services are coordinated on-site for residents of regulated affordable housing—typically those with very low incomes (30% AMI or less). Services focus on increased opportunity and self-sufficiency. City could support local nonprofit provision of services through financial support and promoting integration of on-site services for very-low income residents into existing neighborhoods. Recommendation: In the near-term, advocate for supportive housing services to be incorporated into the 2020 public safety levy. In the medium-or long-term, dedicate City funding to supporting non-profits in providing resident services. Priority: High APG Tigard Housing Strategy Implementation Plan 2 5City of Tigard APG Tigard Housing Strategy Implementation Plan 2 6City of Tigard SDC Backfill TIF CDBG CET Down Payment Assistance Supportive Services Rehabilitation Loans Gap Funding City of Tigard Respect and Care | Do the Right Thing | Get it Done Planning Commission Briefing May 6, 2019 MU-CBD Rezone Comprehensive Plan Map Amendment Zoning Map Amendment Development Code Amendment City of Tigard MU-CBD Rezone Structural Changes –18.650 •Simplify structure and remove redundancies •Remove outdated images •Streamline and clarify standards City of Tigard MU-CBD Rezone Process Changes –18.650 •Remove 3 tracks -Type I downtown design review -Type II downtown design review -Downtown adjustment •Remove Type III-DR process -Approval through Type II adjustment •Change exceptions to adjustments City of Tigard MU-CBD Rezone Policy Changes –18.650 •Add density and height bonus for qualified affordable housing -Both rental and homeownership qualify -Must meet affordability thresholds -Requires affordability for life of development •Update approval criteria for adjustments (exceptions) -Focus on affordable housing, public benefit City of Tigard MU-CBD Rezone Policy Changes –18.650 •Remove outdated standards -Inclusion of screening in building height -Special standards for public plaza proximity -Requires affordability for life of development •Update parking screening standards -Require along public parks and trails City of Tigard MU-CBD Rezone City of Tigard MU-CBD Rezone City of Tigard MU-CBD Rezone Omnibus Code Fixes •Clarifying some housing standards •Clarify that final plats do not expire •Remove requirement for pre-apps for some Type IIs -Home occupations, extensions, complex tree •Make Type II and III noticing consistent Land Use Legal Issues City Attorney Shelby Rihala School buses! Taking Public Testimony •Public hearing •Continue hearing (written evidence) •Any party may request; at least 7 days •Rebuttal (written response) •Any party may request if new evidence submitted; at least 7 days •Final written argument •Unless waived by applicant, City must allow at least 7 days Public Notice •Code requirements •Challenges to improper notice •Prejudiced substantial right to full and fair hearing •How to cure? Testimony: What Matters? •Approval criteria! •Professional vs. lay opinion •Interpreting Code provisions The Decision •Does staff recommendation reflect Commission’s perspective? •If not, make tentative decision and adopt at subsequent meeting •Decision is only as good as the findings •Not conclusory •Resolve conflicts between material facts or laws •Address all applicable legal standards •Explain conclusion Planning Commission Presentation I. Interesting land use case as example – bus barn a. CUP, industrial zoned site adjacent to neighborhood, no sidewalks in neighborhood b. 66 buses leaving at 6:45am and returning at 7:45am; afternoon departing 4pm and returning 5pm c. TIA found it would only create over-capacity at one intersection at PM peak, intersection currently failing and proposal would make that intersection worse d. Applicant proposed alternative routing until signal installed in 2020; City conditioned approval on such proposal II. Neighborhood Testimony – significant opposition a. 54 written comments received b. Several hours of public testimony c. 25 written documents in the record d. Procedure for taking testimony i. March 4 public hearing ii. Continued hearing to allow additional written evidence (March 11th close) 1. Prior to the conclusion of the initial evidentiary hearing, any party may request an opportunity to present additional evidence and the hearings authority shall grant such a request; must be at least 7 days 2. Continue hearing to time/date certain iii. Applicant’s rebuttal to new evidence submitted by opponents during open record 1. If new written evidence is submitted, any party may request the record be left open for at least 7 days to respond to new written evidence iv. Final written argument by applicant 1. Unless waived by the applicant, the local government shall allow the applicant at least 7 days after the record is closed to other parties to submit final written argument; may not include new evidence v. Opponents get last word on evidence; applicant gets last word on argument 1. April 2 vote to deny and directed staff to prepare findings 2. May 6 Commission adoption of findings e. Noticing error in the middle of the hearing i. City Code required notice to all other jurisdictions within ½ mile of the site ii. Staff suggested reopening public hearing for affected jurisdictions; allowed rebuttal testimony by anyone, and rebuttal argument for the applicant limited to issues and evidence raised by the jurisdiction iii. Legal requirements set forth in statute and code about contents of notice and who it goes to 1. Challenge to notice must demonstrate that the notice error prejudiced his or her substantial right to a full and fair hearing a. City was required to hold a hearing and didn’t b. Hearing held, but one or more persons not given notice c. Notice was given and hearing held, but the decision significantly differed from the proposal described in the notice d. More process and greater notice is almost always safe 2. Oral notice of postponement or continuance is sufficient as long as it is announced at the time and place stated on the notice for the hearing and the hearing is postponed to a date, place, and time certain (also works with written posted notice of postponement on the door) f. Content of testimony i. Applicant has burden to show by preponderance of the evidence that approval standards are met; on review, LUBA will determine whether the City’s decision is supported by substantial evidence—would a reasonable person make the disputed finding based on the evidence in the record ii. Weighing professional vs. lay testimony 1. Not required to accept expert’s testimony as long as findings explain why the expert is not viewed as credible or reliable 2. Ex: conflicting traffic engineers; resume of expert did not establish credentials; neighbors and applicants each had traffic engineers; neighbors rented school bus and filmed the buses not being able to make the turns nearby the site iii. Unclear or ambiguous terms in Code 1. Applicant’s final written argument centered on whether the bus barn’s functional characteristics would be “reasonably compatible” with the uses in the vicinity a. Neighbors say traffic impacts will be substantial and there’s inadequate mitigation to address traffic impacts on surrounding area; District’s experts say impact is minimal 2. Is interpretation entitled to deference on review? Only for Council, not PC 3. Make interpretation clear for record III. Tentative decision a. Deliberate after the close of the hearing i. Infrastructure not yet in place and plans for improvement speculative ii. Narrow street would be significantly impacted b. Make sure final written decision reflects entirety of conclusions—decision, conditions, findings c. If not, direct staff to prepare written decision and supporting findings for consideration at subsequent meeting; applicant may assist with approval decisions, helpful because applicant defends cases at LUBA d. Importance of findings i. Explain the decision and tie to facts, not conclusory ii. Resolve conflicts between material facts or law iii. Address all the applicable legal standards iv. Explain why certain facts lead to the conclusion reached v. “What, specifically, the decision maker believes after hearing and considering all the evidence, to be the relevant and important facts upon which its decision is based” vi. City is not bound by previous interpretations, but it cannot change the applicable approval criteria or its interpretation without a reasoned basis for the change, like differences in facts, statutory/code standards, or case law vii. When evidence is conflicting, City must choose which evidence to accept, state the facts that it relies on, and explain why those facts lead to the conclusion that the applicable standard is satisfied