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11/27/2017 - PacketPLANNING COMMISSION AGENDA – November 27, 2017 City of Tigard | 13125 SW Hall Blvd., Tigard, OR 97223 | 503-639-4171 | www.tigard-or.gov | Page 1 of 1 City of Tigard Planning Commission Agenda MEETING DATE: November 27, 2017 - 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. AFFORDABLE HOUSING DISCUSSION 7:05 p.m. 6. OTHER BUSINESS 9:00 p.m. 7. ADJOURNMENT 9:05 p.m. Planning Commission Areas of Interest regarding Affordable Housing Commissioner Middaugh Some ideas:  Require that a portion of all new development include affordable housing (see California)  Encourage affordable housing development through tax and SDC exemptions (see Portland)  If affordable housing attracts crime and requires more attention/cost then should we encourage it? Personally, I would say yes because I think we should value diversity, but it would be a good discussion. President Fitzgerald I am interested in what Washington County considers affordable housing. 60% median? Work force? Is there a target group? Some of Tigard’s recent homes and town homes are starting at $300K. That may be what the market is dictating, but that is a big stretch for new homebuyers. Commissioner Jackson I would be interested in hearing discussion around concern from citizens about inclusion of affordable/low-income housing in their communities, including to what extent studies/statistics/et cetera justify these types of concerns and what local government can do to mitigate them. November 6, 2017 Page 1 of 3 CITY OF TIGARD PLANNING COMMISSION Meeting Minutes November 27, 2017 Meeting location: Tigard Civic Center Town Hall, 13125 SW Hall Blvd. CALL TO ORDER Vice President Feeney called the meeting to order at 7:00 p.m. The meeting took place in the Tigard Civic Center, Town Hall, at 13125 SW Hall Blvd. ROLL CALL Present: President Fitzgerald Vice President Feeney Commissioner Hu Commissioner Jackson Commissioner Lieuallen Commissioner Middaugh Commissioner Schmidt Absent: Commissioner McDowell; Alt. Commissioner Mooney Staff Present: Kenny Asher, Community Development Director; Tom McGuire, Assistant Community Development Director; Doreen Laughlin, Executive Assistant; Schuyler Warren, Associate Planner COMMUNICATIONS – None. CONSIDER MINUTES November 6, 2017 Meeting Minutes: President Fitzgerald asked if there were any additions, deletions, or corrections to the November 6 minutes; there were none, and the minutes were approved as submitted by Vice President Feeney who had presided over that meeting. AFFORDABLE HOUSING PRESENTATION & DISCUSSION President Fitzgerald introduced the topic to the commissioners saying that this evening there were some invited guests present to give a presentation on affordable housing. She noted that this is a very hot topic in Washington County, and that just a week before she had attended a Westside Economic Alliance (WEA) meeting where she heard Mr. Carl Guardino with the Silicon Valley Leadership Group speak. President Fitzgerald said she’d taken copious notes and had found it to be very informative. Community Development Director Kenny Asher gave the commissioners some statistics regarding the affordable housing challenges in Tigard. He spoke about a new grant-funded study from Portland State University - “Housing Choice and Opportunity in the Southwest Corridor.” November 6, 2017 Page 2 of 3 He noted this is a study of apartment building sales and rents and went on to give some of what he considered to be the “low-light” statistics of the study. Following his brief talk, he introduced Washington County Housing Department Deputy Director Komi Kalevor, and Housing Program Coordinator Melisa Dailey, who were invited to make a presentation to the commission on affordable housing in Washington County. Mr. Kalevor and Ms. Dailey went over a PowerPoint (Exhibit A) and then opened the meeting up for questions and discussion – of which there were quite a few. There were several questions ranging from System Development Charges (SDC’s) and the price of land, to questions about what other communities are doing to alleviate the problem of affordable housing. Kenny Asher introduced Associate Planner Schuyler Warren who will be working on a code and comprehensive plan update and who is very much involved in this topic. Commissioner Hu spoke about the upcoming joint meeting with Council regarding this topic. He understands they are looking for direction, and wondered what the commission could actually do with regard to giving that direction. He asked what the best use of their time might be. Council Liaison to the Commission, Councilor Tom Anderson came up and said the main thing Council wants is for the Commission to be aware of the affordable housing issue – the problem. He said, “There’s not a lot we can do with financing. We can’t land-bank a lot of property in Tigard. Portland is talking about a 280 unit project that they have going – it’s $30M, and they’re writing a check… we can’t do that, but we can incentivize. We have to be aware and we’ve got to say that Tigard’s ‘Open for business.’ We did that with the downtown and with economic development – and we got an Economic Development staff member – so maybe someday we’ll have a housing person on staff, but we’ve got to start the process. There are things Bend is doing with their inclusionary zoning that we could do. We’ve identified the problem – so that’s what we’re talking about.” He went on to tell the commissioners that they might prepare by thinking about any tools that they may have picked up today that council doesn’t know about – specific tools that could be put into place right away. To some extent it’s marketing. It’s coming – we have to be ready for it. He suggested that if the commissioners find a vein that they like – that they think Tigard should be exploring more – let the Council hear about it. President Fitzgerald noted this is just the initial part of a much bigger conversation. She believes the joint meeting will help them to all get on the same page, or knowledge level. Councilor Anderson agreed; he noted that they could have a task force that meets every month for the next two years and still not settle this. It could take a very long time. He noted the Council is just fleshing it out. Melisa Dailey closed with some comments regarding what other communities have fallen back on to see what they can do without paying for another study and without costing a lot of money. She said, “I believe the Planning Commission is in the best position with the upcoming code changes and improvements down the line. I think if the commissioners looked at that and focused on those -and how they would work and affect the community - and working with staff – that is, in a way, good low hanging fruit. Going from there – there are other types of things where the City doesn’t have to pay money out – as in an SDC – I’m not saying that’s what you should do, but that’s money that you’re not paying out – you may not be taking it in – but you’re not coming up with a check.” Tigard Planning Commission Affordable Housing Overview Monday, November 27, 2017 Washington County Housing Department Komi Kalevor, Assistant Director Melisa Dailey, Housing Program Coordinator Affordable Housing Policy and Tools 2 What is affordable housing? =+ Affordable Housing Policy and Tools 0-80% MFI Regulated Affordable Housing Affordable Housing 3 Filtering $ $$ Market Affordable Housing aka NOAH Affordable Housing Policy and Tools Low Income Household Definition Low Income 51 –80% MFI Very Low Income 31 –50% MFI Extremely Low Income 0 –30% MFI Affordable Housing Policy and Tools 5 Why do we need affordable housing in Tigard? 49% (9,724 households) earn less than 80% MFI Source: HUD, American Community Survey Affordable Housing Policy and Tools What is Affordable? Affordable Rent = 30% of Gross Income 6 Affordable Housing Policy and Tools 7 Median Rents •Median monthly rent: $1,500 •Need income of $60,000 •55.5% of renters pay >30% of income to rent Affordable Housing Policy and Tools In Washington County… 8 Affordable Housing Policy and Tools 1 Person Household 30% for Housing (1 Person Household) •$8,796 = $220/mo •$15,947 = $399/mo •$19,127 = $478/mo •$40,840 = $1,021/mo 9 17% MFI 78% MFI 30% MFI 37% MFI Affordable Housing Policy and Tools Median Listing Price 10 •Median monthly mortgage: $2,545. Based on median listing price of $430,900 (Zillow data, 2017) •Need income of $102,000 •33% of owners pay more than 30% of income to mortgage Affordable Housing Policy and Tools 11 Housing Stock -Tigard •695 already-existing regulated affordable units •Project Based Vouchers •12 chronically homeless vouchers (The Knoll) •12 special needs vouchers (PLUSS Apartments) •Section 8 Vouchers: 335 families •Public Housing: 21 units •Affordable Housing: 192 units (The Colonies & Bonita Villa) Affordable Housing Policy and Tools Housing Need -Tigard Need Estimates •55.5% of all renters pay >30% income to rent •33% of owners pay >30% of income to mortgage 3,393 HH rent burdened and <$35,000 annual income -695 regulated units in Tigard 2,698 units needed (2011-2015 ACS data) 12 Affordable Housing Policy and Tools 13 BarriersFinancing gap per unit for 1 bedroom unit by MFI served Affordable Housing Policy and Tools 14 Strategies and Tools •Developer Incentives or Requirements •Direct Subsidy (external or internal resources) •Develop New Revenue Source •Indirect Subsidy/Incentives Affordable Housing Policy and Tools Developer Incentives or Requirements •Incentive Zoning -Density Bonuses •Increase FAR •Smaller Housing •Flexible zoning code for variety of housing types •Reduced parking requirements •Increase Minimum Density Requirements •Inclusionary Zoning (IZ) •Streamlined Permitting Process •Streamlined Development Review 15 Affordable Housing Policy and Tools Direct Subsidy Federal Resources •USDA-Rural Development •U.S. Department of Housing and Urban Development (HUD) 16 Affordable Housing Policy and Tools Direct Subsidy, cont. State/Regional Resources •Metro Transit Oriented Development Program (if applicable) •OHCS Annual NOFAs •GHAP & HDGP •Oregon Affordable Housing Tax Credit (OAHTC) •LIFT Article XI-Q Bonds •Mental Health Housing Funds •Federal Housing Trust Fund •LIHTC 17 Affordable Housing Policy and Tools Direct Subsidy, cont. •Local Resources •HOME/CDBG program subsidies •General Fund money •Housing Trust Fund •Donation of City-owned land to build subsidized housing •Land Banking •Land Trust •Low Interest financing by Community Housing Fund 18 Affordable Housing Policy and Tools New Revenue Source •Local Option Levy for affordable housing •Construction Excise Tax •County Levy •Metro Affordable Housing Bond (proposed) 19 Affordable Housing Policy and Tools Indirect Subsidy/Incentives •Property Tax Exemptions (Tigard already does) •Urban Renewal (Beaverton, Hillsboro, Tigard and Sherwood) •Multiple Unit Tax Exemption (MULTE) •Vertical Housing Tax Exemption •SDC Exemption 20 Affordable Housing Policy and Tools Solutions •New Construction •Preservation -NOAH •Reduce Demand •Provide Rent Assistance to keep people from losing their home •Workforce training for career-track employment •Weatherization/Energy Upgrade Assistance •Southwest Corridor project involvement 21 Affordable Housing Policy and Tools 22 Questions? Affordable Housing Policy and Tools 23 Washington County Department of Housing Services Melisa Dailey, AICP 503-846-4773 melisa_dailey@co.washington.or.us Contact