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City Council Packet - 05/25/2021
II " City of Tigard Tigard Business Meeting—Agenda TIGARD A TIGARD CITY COUNCIL&TOWN CENTER DEVELOPMENT AGENCY MEETING DATE AND TIME: May 25,2021 -6:30 p.m. Study Session,7:00 p.m. Business Meeting MEETING LOCATION: Remote participation only. See PUBLIC NOTICE below. PUBLIC NOTICE:In accordance with the City of Tigard's Emergency Declaration related to COVID-19 and Orevon House Bill 4212, this will be a virtual meeting where Council and staff will participate remotely. There will be no in-person public testimony during this meeting. How to comment: •Written public comment may be submitted electronically at www.tirard-or.gov/Comments.All comments must be submitted before noon the day of the meeting. If you prefer to call in,please call 503-966-4101 when instructed to be placed in the queue.We ask that you plan on limiting your testimony to three minutes. SEE ATTACHED AGENDA VIEW LIVESTREAM ONLINE: . itp://www.tiiard-or.eov/city hall/council meetint.php CABLE VIEWERS:The first City Council meeting of the month may be shown live on Channel 28 at 6:30 p.m.The meeting will be rebroadcast at the following times on Channel 28: Thursday 6:00 p.m. Sunday 11:00 a.m. Friday 10:00 p.m. Monday 6:00 a.m. III • City of Tigard Tigard Business Meeting—Agenda TIGARD TIGARD CITY COUNCIL&TOWN CENTER DEVELOPMENT AGENCY MEETING DATE AND TIME: May 25,2021 - 6:30 p.m.Study Session, 7:00 p.m.Business Meeting MEETING LOCATION: Remote participation only. 6:30 PM •STUDY SESSION A. DISCUSS SOLID WASTE,MANAGEMENT SERVICE LEVEL CHANGES •EXECUTIVE SESSION:The Tigard City Council may go into Executive Session. If an Executive Session is called to order, the appropriate ORS citation will be announced identifying the applicable statute.All discussions are confidential and those present may disclose nothing from the Session. Representatives of the news media are allowed to attend Executive Sessions,as provided by ORS 192.660(4),but must not disclose any information discussed.No Executive Session may be held for the purpose of taking any final action or making any final decision.Executive Sessions are closed to the public. 7:00 PM 1. BUSINESS MEETING A. Call to Order B. Roll Call C. Pledge of Allegiance D. Call to Council and Staff for Non-Agenda Items 2. PUBLIC COMMENT A. Follow-up to Previous Public Comment B. Public Comment—Written C. Public Comment-Phone In D. Council Liaison Reports 3. CONSIDER RESOLUTION OF APPRECIATION FOR TIGARD HIGH SCHOOL STUDENT ENVOY CAROLINE FRISIRAS 7:10 p.m. estimated time 4. CONSIDER RESOLUTION TO APPROVE APPOINTING AN ALTERNATE TTAC MEMBER TO VOTING MEMBER 7:15 p.m. estimated time 5. CONSIDERATION OF FILLING A VACANCY ON THE PUBLIC SAFETY ADVISORY BOARD 7:20 p.m.estimated time 6. CONSIDER ORDINANCE AMENDING COMPREHENSIVE PLAN TO ADOPT HOUSING NEEDS ANALYSIS UPDATE 7:25 p.m. estimated time 7. TCDA PUBLIC HEARING: CONSIDER RESOLUTION APPROVING TOWN CENTER DEVELOPMENT AGENCY FOURTH QUARTER BUDGET SUPPLEMENTAL 7:55 p.m. estimated time 8. RECEIVE UPDATE ON CITY FACILITIES CONSOLIDATION PROJECT 8:05 p.m. estimated time 9. NON-AGENDA ITEMS 10. ADMINISTRATIVE REPORT 11. EXECUTIVE SESSION: The Tigard City Council may go into Executive Session. If an Executive Session is called to order,the appropriate ORS citation will be announced identifying the applicable statute.All discussions are confidential and those present may disclose nothing from the Session. Representatives of the news media are allowed to attend Executive Sessions, as provided by ORS 192.660(4),but must not disclose any information discussed.No Executive Session may be held for the purpose of taking any final action or making any final decision.Executive Sessions are closed to the public. 12. ADJOURNMENT 8:30 p.m.estimated time AIS-4645 A. Business Meeting Meeting Date: 05/25/2021 Length (in minutes): 30 Minutes Agenda Title: Discuss Solid Waste Management Service Level Changes Prepared For: John Goodrich Submitted By: John Goodrich, Public Works Item Type: Update, Discussion, Direct Meeting Type: Council Staff Business Mtg- Study Sess. Public Hearing No Newspaper Legal Ad Required?: Public Hearing Publication Date in Newspaper: Information ISSUE City Council could consider changing service levels for solid waste management collection related to residential yard recycle and composting. STAFF RECOMMENDATION / ACTION REQUEST Discuss the potential for increasing service levels related to yard debris and food waste collection and provide the necessary guidance. KEY FACTS AND INFORMATION SUMMARY In October 2020, several Tigard community members made inquiries to staff and the Mayor about increasing yard recycle collection from every other week (EOW) to every week (EW). There also has been community interest for the ability to compost food scraps at the residential level. City teammates created an Engage Tigard webpage and survey titled Yard Debris &Food Compost Survey that was completed in January 2021. There were 316 respondents and below is a summary of the results: •69% respondents liked the convenience of weekly yard debris pick up; • 64% respondents would be willing to pay approximately $2 to $3 more per month for this service; _ • 69% respondents would support composting collection if included in yard debris pick up; • 63% respondents would support composting service if it was included in the higher fees for weekly yard debris collection. While a majority of survey respondents supported increasing yard recycle collection service to weekly, some respondents provided comments about the increased truck traffic during winter months when yard recycling totes remain empty, or asked if the city would provide leaf collection services at the local street level during the fall months instead of increasing this service level. The majority of positive comments reflected a desire to compost using their yard recycle totes as a convenient method. Based on the survey results, staff contracted Chris Bell&Associates to conduct a Cost of Service Analysis (COSA) related to increasing the service level of weekly residential yard recycle tote collection, and the additional disposal costs associated with composting food scraps with the yard recycle material. Mr. Bell will provide the COSA information to Council and answer any questions related to service costs and franchise revenue requirements. Staff has also invited representatives of the two franchises that provide yard recycle collection services to attend the study session. Mr. Bell will brief council on the following Tigard yard recycling service alternatives based on costs and estimated performance. 1. Weekly Yard Debris 2. Weekly Yard Debris Plus Residential Organics 3. Weekly Yard Debris Plus Residential Organics and Every Other Week (EOW) Recycling Collection 4. EOW Recycling and Glass Collection Staff is requesting guidance on whether Council supports efforts in increasing the service level for residential yard recycle collection, and if food waste collection should be included in the increased service. Staff anticipates that municipal code revisions and an amended fees and charges schedule would need to come before Council for consideration before implementing any changes in the service levels. If Council is favorable, staff would request that the changes be effective January 1, 2022 when adjustment to solid waste fees and charges are implemented, and to provide the haulers sufficient time to acquire additional trucks or equipment to accommodate the new service level. OTHER ALTERNATIVES Not applicable. COUNCIL OR TCDA GOALS, POLICIES, MASTER PLANS Tigard City Council 2021-2023 Goals & Community Promise Council Goal 3 - Develop and implement a bold community resiliency plan; 3.1 Develop and implement a community resiliency plan that is specific to the needs of the Tigard community and organization; 3.2 Implement resiliency practices that help us achieve carbon neutrality by the year 2035; 3.3 Communicate our resiliency efforts to the community to encourage individuals and businesses to adopt new practices that support our climate goals; 3.4 Develop regional partnerships to help reduce carbon throughout the Portland metro. DATES OF PREVIOUS CONSIDERATION This is the first time council has been addressed on this item. Fiscal Impact Cost: 0 Budgeted (yes or no): No Where Budgeted (department/program):Finance Additional Fiscal Notes: The city does not have a fiscal budget line item on solid waste management; fees and charges are collected by each of the franchise companies. Attachments Presentation CITY OF TIGARD Respect and Care I Do the Right Thing I Get it Done 1111 TIGARD Waste and � RecY clin Collection Program Change Discussion Chris Bell, C.P.A. John Goodrich Bell &Associates Executive Manager, Public Works CITY OF TIGARD Presentation Outline Introduction — Changes to the current collection services Background — Performance and cost to compare to expected program changes System Alternatives Weekly Yard Debris Collection Weekly Residential Organics Collection Weekly Yard Debris / Every Other Week Recycling Collection Every Other Week Glass Collection i[ Council Questions WASTE i __)1110, _ MANAGEMENT +,' ih......03.„ Te0p Box Hauls 1 366$ 127 1963 t1 „03 I i �� Ir r' 1 CITY -! Weekly Carts Container Customer Drop Box Hauls " a 9 14535 797 7526 d. \ '•---in. \ , :,. CI N.)..._ r '---- QPRIDE DISPOSALeekly Carts Container Customer Drop Box Hauls f' 'l 1. LL1100867 670 5563 i Tigard SW Franchise 't Bounds ry Mail p '," • if f a. 0 0.5 1 Miles ,,, /7N CITY OF TIGARD 3 Year Residential Diversion Performance Frequency 2020 2019 2018 Cart SW Tons Weekly 10,632 9,683 9,470 Cart Commingled Tons Weekly 5,200 4,730 4,553 Yard Debris Tons EOW 5,508 4,444 4,294 Total Tons 21 ,340 18,857 18,317 YD diversion % 26% 24% 23% The yard debris program diverts approximately 24% of all collected tons from Tigard residents. P - - - - - - T _ CITY OF TIGARD 3 Year Performance and Cost Year 2020 2019 2018 Customers 13,221 12,915 13,292 Collected Tons 5,508 4,444 4,294 Annual Pounds per Customer 833 688 646 Monthly Yard Debris Collection Cost I $3.77 $3.55 $3.52 Monthly Yard Debris Disposal Cost $2.67 $2.59 $2.51 Monthly Cost of Yard Debris Service $6.44 $6.14 $6.03 Monthly Rate for Yard Debris $7.58 $7.22 $7.09 . The three year annual average pounds per customer is 723 pounds. Assuming a 15% increase in collected yard debris tons, the expected average is 831 pounds. CITY OF TIGARD Alternative 1: Increase Yard Debris Collection to Weekly Service Additional trucks will be required to accommodate the increase in services P. Lead time from order to collection ready is 6 to 10 months — (Use second line trucks in the interim) If the decision is made to implement in June for a January start date, lac byMarch 2022, just in time for spring. new trucks could be in place Annual collected yard waste volume is estimated at 5,494 tons The rate increase would be $2.53 per customer per month to increase yard debris to weekly collection. CITY OF TIGARD Alternative 2: Increase Residential Organics Collection to Weekly Service ► Adding food to the yard debris mix increases the processing cost due to DEQ regulations 0- The estimated annual composite cost is approximately $100,900 / $0.75 per customer per month 0 Composition studies of residential organics programs measured food waste at 2.87%1 of total collected weight 0- The estimated increase of diverted food in Tigard is 158 tons (5,494x2.87%) The rate increase would be $3.28 p($2.53 collection + $0.75 processing) per customer per month for weekly collection of residential organics collection. CITY OF TIGARD • City Residential Edible Fedi 0.44% / Study results are from Inedible Food 2.43% ORGANICS Yards Debris .94.1474, the City of Olympia t inti ted Wood 0.70% Organics Subtotal 47,7% Waxed Cardboard 0% (2013 to 2014) ';zza Boxes 0.21% COMPOSTABLE PAPER [Paper 5erviceware 0% (Shredded Faber 0.19% (D,their Comp9stable Pacer 0.80% Compostable Paper Subtotal 1.20'% r•LVedBo 0.02% 1 Olympia has weekly No-�-Accraved B:i 0% cc'`" `STABLE PLASTICS Utes omoosral:la'astt^cues lo0o% organic collection a n d Pia;tlr/!:. ware 0% Cornpostable Plastic Subtotal 0.02% every other week solid Compostable Recyclables: Cardboard 0.17% Recyclable Papp' _ 3.36% waste collection (same CL'RBSIDE RECYCLABLES Non-Cempostabte Recyclables: Recyclable Fla iCs 0% as Portland) Goss Bothes 0% Metals 0% Curbs•de Reeve-tables Subtotal 4.64% ikon-Com ~:atabie Paper 0.08% Non-Compostable Plastic Bags 0.05% NON-COMPCS'ABLE Non-Comp�pbie Plastics 0.02% MATERIALS Non-Boa Pim-hos 0.01% Boss of Garbage 0% Other 0.39% Non-Coil postabre Subtotal: 0.55°%a TOTALS __ t 00.P°, CITY OF TIGARD Alternative 3: Switch to Weekly Yard Debris and Every Other Week Recycling 0. Switching the collection frequency of the material streams would increase collection cost by $1.30 for yard debris collection Increase for residential organics is $2.05 ($1.30 + $0.75) per month b The City would need to get "approval" from Metro to make this change to their recycling program The cities of Sherwood, Hillsboro, and Unincorporated Washington County all provide every-other-week collection of commingled recycling. CITY OF TIGARD Alternative 4: Increase Glass Collection Frequency to Every Other Week ► Switching the collection frequency of glass collection from monthly to every other week will increase the monthly collection rate by $0.72 per month. CITY OF TIGARD Questions? SUPPLEMENTAL PACKET Mayor's Statement FOR .5-- AST-- P" 365 days have passed since George Floyd, an unarmed Black man, died at the hands of a Minneapolis police officer. Though only one of many such tragedies, the murder of George Floyd sparked grief and outrage throughout the Tigard community and the country, and inspired protests speaking to previous unheeded calls for change, and safety for communities of color. Your calls for change have driven our response in Tigard. You asked that we empower community voices to review public safety practices. We responded by creating the Public Safety Advisory Board (PSAB), a 16-member group of community members. I am encouraged by the early work of the Public Safety Advisory Board. Just recently, their work led to the expansion of the Tigard Police's body camera program. I can assure you that they are 1) asking the right questions, 2) sharing the perspectives they are hearing in the community, and 3) providing critical input and feedback about our public safety practices. You asked that we identify and address racism and bias in city operations. We acknowledge that systemic racism is ingrained in our organization. We are actively working to disrupt the status quo by implementing the city's first Anti-Racism Action Plan. You asked that we create long-lasting, meaningful change. We agree that the city's actions must be sustainable. We seek to achieve this change by using an equity lens when evaluating and implementing all city initiatives, including the recently approved Council goals. As a city, we also must acknowledge that we do not have all the answers. The Public Safety Advisory Board and Anti-Racism Action Plan are just two components of how we will achieve our vision to be an equitable community that is walkable, healthy and accessible for everyone. We will continue to lead while listening carefully to our community. Tonight, I am challenging our community to speak up about the work that we're doing as a community and the work that still must be done to show Gianna Floyd that her father did in fact change the world, including in the Tigard community. SUPPLEMENTAL PACKET FOR ,g - .� - 2U L r • (DATE OF MEETING) AlevIdoe- 1¢cwi .2.13 T I GARD Meeting of the Tigard City Council May 25, 2021 Public Testimony Received 1. Nate 5/21/21 Concern about litter, excrement, drug paraphernalia spread by homeless people on the Fanno Creek Trail and other walking paths. 2. Debbie Sanchez 5/23/21 Proposes converting one tennis court at Summerlake Park to two pickleball courts. The tennis courts are rarely used and pickleball lines make it hard to play pickleball. 3. Joint letter from 5/25/21 Testimony in support of Agenda Item No. 6— Housing Land Consider Ordinance Amending the Comprehensive Advocates &Fair Plan to Adopt the Housing Needs Analysis. Staff Housing Council of Supplemental memo and Goal 10 findings are Oregon insightful and detailed and will be used as a good example for other jurisdictions. Carol Krager From: noreply@revize.com Sent: Friday, May 21, 2021 1:57 PM To: Carol Krager Cc: carolinep@tigard-or.gov Subject: Public Comments Caution!This message was sent from outside your organization. Block sender Name=Nate EmailAddress= _ Address=9635 SW N Dakota St Topic=City Council Goal:'Implement an actionable, person-centric,and regional response to homelessness' FeedBackText= Please clear the Fano Creek trail and other walking paths of homeless invasion.This is supposed to be a safe place to get outdoors for tax-paying residents and families. Homeless camps are getting comfortable with their presence and will only mean more will come in the future. They spread trash everywhere, leave excrement on the ground,and litter the area with drug paraphernalia including needles. Not to mention just the act of them being there increases theft and represents a threat of physical harm- especially for children and women. Children are curious, how long will it take until one our kids is stuck by a needle and acquire a life-altering incurable disease? Portland offers numerous homeless shelters with access to services incl social workers. Let them go to the City and let's work to keep Tigard as a safe place to live. Client IP=71.238.28.215 1 0 Carol Krager From: noreply@revize.com Sent: Sunday, May 23,2021 1:53 PM To: Carol Krager Cc: carolinep@tigard-or.gov Subject: Public Comments Caution!This message was sent from outside your organization. Block sender Name=Debbie R Sanchez EmailAddress= _ Address=12650 SW Morning Hill Dr Topic=Propose to convert 1 tennis court at summerlake to two pickleball courts.The tennis courts rarely used.The pickleball lines make it very hard to play pickleball FeedBackText= Client IP=174.204.210.196 1 rirFAIR HOUSING COUNCIL OF OREGON May 25, 2021 City of Tigard Planning Commission 13125 SW Hall Blvd Tigard,OR 97223 RE:CPA2021-00002 To adopt the 2021 Housing Needs Analysis and Housing Market Analysis as an ancillary document to the Tigard Comprehensive Plan; and to amend the current Tigard Comprehensive Plan Goal 10: Housing goals, policies,and recommended action measures. Dear Commission Members: This letter is submitted jointly by Housing Land Advocates (HLA) and the Fair Housing Council of Oregon (FHCO). Both HLA and FHCO are non-profit organizations that advocate for land use policies and practices that ensure an adequate and appropriate supply of affordable housing for all Oregonians. Both HLA and FHCO commend the City, and support the adoption of CPA2021-00002,the adoption of the 2021 Housing Needs Analysis and Housing Market Analysis, and amendment to the current Tigard Comprehensive Plan Goal 10. Additionally,the planning staff created an inciteful and detailed supplemental memo,with well written Goal 10 findings.This will be used as a good example for other jurisdictions. Good luck with the continuation of this project! Thank you for your consideration of our comments. Sincerely, 914L— Allan Lazo Executive Director Fair Housing Council of Oregon Cc: Gordon Howard, DLCD 1221 SW Yamhill Street, Portland, Oregon 97205 AIS-4637 3, Business Meeting Meeting Date: 05/25/2021 Length (in minutes): 5 Minutes Agenda Title: Consider Resolution of Appreciation for Tigard High School Student Envoy Caroline Frisiras Prepared For: Steve Rymer, City Management Submitted By: Carol Krager, Central Services Item Type: Motion Requested Meeting Type: Council Resolution Business Meeting- Main Public Hearing: No Publication Date: Information ISSUE Council will express appreciation to Tigard High Student Envoy Caroline Frisiras. STAFF RECOMMENDATION / ACTION REQUEST The City team recommends Council approval of this resolution. KEY FACTS AND INFORMATION SUMMARY Caroline Frisiras has served as the Tigard High School Student Envoy to the City Council for the 2020-21 school year, giving monthly reports on Tigard High events and activities. In this most unusual year, Caroline has given her reports virtually, She kept Council informed of the many creative ways students have kept in touch during the pandemic, entertaining and supporting each other, their teachers and members of the community. Council appreciated this connection to youth in the city and extends warm wishes for future success to Student Envoy Caroline Frisiras. At the end of the school year Council traditionally presents the student envoy with a resolution recognizing and thanking them for their service. OTHER ALTERNATIVES N/A COUNCIL GOALS, POLICIES,APPROVED MASTER PLANS N/A DATES OF PREVIOUS COUNCIL CONSIDERATION N/A Attachments Resolution CITY OF TIGARD, OREGON TIGARD CITY COUNCIL RESOLUTION NO. 21- A RESOLUTION ACKNOWLEDGING AND COMMENDING CAROLINE FRISIRAS FOR HER SERVICE AS TIGARD HIGH SCHOOL STUDENT ENVOY TO THE CITY OF TIGARD WHEREAS, the Tigard City Council desires to connect with students in schools to improve communications and relationships;and WHEREAS,City of Tigard elected officials appreciated the monthly updates from Student Envoy Caroline Frisiras;and WHEREAS, activities coordinated by Caroline Frisiras and her fellow student leaders benefitted students and the Tigard community; NOW,THEREFORE,BE IT RESOLVED by the Tigard City Council that: SECTION 1: The City of Tigard Council and staff members hereby convey their gratitude to Caroline Frisiras for her exemplary service as Tigard High School Envoy. SECTION 2: The City of Tigard Council and staff members hereby extend congratulations and best wishes for future health and success to Caroline Frisiras. SECTION 3: This resolution is effective immediately upon passage. PASSED: This day of 2021. Mayor-City of Tigard A'1'fhST: City Recorder-City of Tigard RESOLUTION NO.21- Page 1 AIS-4657 4. Business Meeting Meeting Date: 05/25/2021 Length (in minutes): 5 Minutes Agenda Title: CONSIDER RESOLUTION TO APPROVE APPOINTING AN ALTERNATE TTAC MEMBER TO VOTING MEMBER Prepared For: Dave Roth, Community Development Submitted By: Joe Patton, Community Development Item Type: Resolution Meeting Type: Consent Agenda Public Hearing: No Publication Date: Information ISSUE The City Council could consider appointing Serge Killingsworth as a voting member of the Tigard Transportation Advisory Committee ('I`IAC). STAFF RECOMMENDATION / ACTION REQUEST Appoint Serge Killingsworth as a voting member of the TTAC. KEY FACTS AND INFORMATION SUMMARY The Tigard Transportation Advisory Committee (ITAC) is to have 11 voting members. One of those members, Sarah Serata, resigned from the committee leaving an open voting position. There are currently two alternates that have been appointed and are attending TTAC meetings. One of them, Serge Killingsworth, is serving in his second year on this committee, and is the most senior member of the two alternates. Mr. Killingsworth previously served on the Pedestrian Bicyclist Subcommittee and actively participates in TTAC discussions. OTHER ALTERNATIVES Council could elect to make a different appointment. COUNCIL GOALS, POLICIES,APPROVED MASTER PLANS DATES OF PREVIOUS COUNCIL CONSIDERATION Mr. Killingsworth was appointed as a non-voting alternate at the December 3, 2020 Council Business Meeting. Attachments Resolution CITY OF TIGARD, OREGON TIGARD CITY COUNCIL RESOLUTION NO. 21- A RESOLUTION APPOINTING SERGE KILLINGSWORTH TO BECOME A VOTING MEMBER OF THE TIGARD TRANSPORTATION ADVISORY COMMITTEE TO COMPLETE THE TERM VACATED BY SARAH SERATA. WHEREAS,one position is open on the Tigard Transportation Advisory Committee due to the resignation of Sarah Serata;and WHEREAS,Serge Killingsworth was appointed in December,2019 as an alternate member of the Tigard Transportation Advisory Committee;and WHEREAS,Serge Killingsworth has agreed to become a voting member of the Tigard Transportation Advisory Committee and has signed the City's Code of Conduct for committee members. NOW,THEREFORE,BE IT RESOLVED,by the Tigard City Council that: SECTION 1: Serge Killingsworth is appointed to complete the position vacated by Sarah Serata.This term ends December 31,2023. SECTION 2: This resolution is effective immediately upon passage. PASSED: This day of ,2021. Mayor—City of Tigard ATTEST: Recorder—City of Tigard Resolution No. 21- Page 1 AIS-4658 5. Business Meeting Meeting Date: 05/25/2021 Length (in minutes): 15 Minutes Agenda Title: Consideration of Filling a Vacancy on the Public Safety Advisory Board Prepared For: Eduardo Ramos, City Management Submitted By: Eduardo Ramos, City Management Item Type: Motion Requested Meeting Type: Council Business Meeting- Main Public Hearing: No Publication Date: Information ISSUE The Public Safety Advisory Board (PSAB) has a vacancy for an alternate community representative. The vacant alternate position is not a voting member. The Council action tonight is to fill that vacancy. The candidate for Council to consider was selected based on the community caucus and Council discussion during the original selection and on April 6.. STAFF RECOMMENDATION / ACTION REQUEST Appoint Nick Jarmer to the vacant alternate community representative position on the Public Safety Advisory Board. KEY FACTS AND INFORMATION SUMMARY Nick Jarmer is an original applicant to the PSAB who has continued to express interest in serving on this Board and meets residency requirements. Thirty-eight community members applied to serve on the Board during the founding phase. Mr.Jarmer was in the final 16 candidates who received the most votes during the community caucus. He was considered for appointment during the October 27, 2020 and April 6, 2021 discussions. This appointment process would reflect the community-led focus of this Board. Council Discussion 10/27/2021: https://www.voutube.com/watch?v=fDvH-r07bYw&t=904s, Council Discussion 04/06/2021: https://voutu.be/rLTvTFXc6U0?t=2338 In addition to this appointment tonight, Council should consider how to deal with future vacancies as the Board moves further along on its charge. The PSAB has been asked to complete its review and evaluation of public safety practices in Tigard by June 2022. City Council approved the PSAB Work Plan and Topic Schedule on March 23, 2020. OTHER ALTERNATIVES If Council does not wish to appoint Mr.Jarmer, it could identify a different candidate to fill the position or identify a process by which staff would identify potential applicants to be considered at a future meeting. Additionally, if Council appoints Mr.Jarmer to an alternate position, Council will need to decide whether to automatically fill a potential future vacancy in a voting position with an alternate or offer guidance for consideration at a later meeting. Currently, one of the alternates is not a resident of Tigard, but has attended all the meetings to date. COUNCIL GOALS, POLICIES, APPROVED MASTER PLANS Strategic Priority 1, Objective 1.4,Action A: Intentionally create an environment that fosters participation from all members of our community. Strategy 4.4: Promote an inclusive, open-minded and progressive community. Implement initiatives to improve City services and participation that captures the diversity of the community and improves equity and inclusion. DATES OF PREVIOUS COUNCIL CONSIDERATION October 27, 2020: Council appointed PSAB members. April 6, 2021: Discussion to Fill PSAB Voting Vacancy- Mr. Shaun Stuhldryer was appointed to the Board. Attachments Nick J armer Video Application PUBLIC SAFETY ADVISORY BOARD Community Caucus:36 Votes(136) Nick Jarmer In 500 words or less,describe the personal or professional experiences that make you qualified to serve on the Advisory Board. I have worked in the public safety field for nearly 30 years,and my wife and I have been residents of the city of Tigard for almost 25 of those years.All 3 of my children went to Charles Fowler elementary, Fowler Middle school, and then ultimately graduating from Tigard High school. I am currently working for the Multnomah County Sheriffs Office in the Corrections Division,where I hold the rank of Captain.The Corrections Division main task is the care and custody of adults in custody in Multnomah County jails.Throughout my career I have seen first hand the difficulty,confusion,and trauma that is inflicted on individuals during incarceration. I have always,and will continue to make it my everyday goal to treat every one with dignity and respect.While this is only one example of Procedural Justice, I find that other work goals are defined by the remaining three tenets of procedural justice: giving citizens a voice during encounters, being neutral in decision making,and conveying trustworthy motives. To this end communication and listening have become two of the best behaviors that I have acquired.Anytime I communicate with someone,whether it be by spoken word,or in writing, I have always strived to be respectful, listen to their own perception/ideas, make sure they understand that I have heard them, earn their trust so that the final decision made is based on these understandings. I have learned these routines through many years of training that Multnomah County Sheriff has provided me. I have taken,or instructed,multiple trainings in understanding and accepting Implicit Bias,annual Ethics in Public safety, Diversity, Discrimination and Harassment,Trauma Informed Care and Trauma Intervention, Mental Health First Aid, Peer Support, De-escalation Techniques, Crisis Intervention, Force Liability,and many more.When I first started at the Multnomah County Sheriff's Office in 1991, Law Enforcement was seen as a noble career. Fast forward roughly 30 years,and a lot has changed.With the current climate in our country,and in other places around the world, Law Enforcement is not looked at too favorably by a large portion of society. I know in my heart and in my mind who I am; I don't think I have changed much in the last 30 years. However,the world around me has changed,and I need to change with it. Public Safety has. Describe the diverse community groups in Tigard you are best able to represent on the Public Safety Advisory Board.Why do you feel you are qualified to represent each of the groups.How would you keep these various groups informed about the work and progress of the Public Safety Advisory Board? Most of my community involvements has come through the Multnomah County Sheriff's Office,and therefore in the city of Portland. I believe I can represent similar communities in the City of Tigard. I am a voting member of the Behavioral Health Unit Advisory Council;which advises the Portland Police Bureau on concerns surrounding justice involved people with a mental health nexus and I am a member of Alliance for Safer Communities representing marginalized/under-represented communities.Of course any group involved in Law Enforcement I can represent simply based on my career choice and current employment.The groups I currently belong to have at least monthly meetings in which we report back to the communities we represent. 14 ' (continued) Nick farmer Paget Describe an experience when you worked collaboratively with people of diverse perspectives and experiences to achieve a common goaL Was the goal achieved?What went well and why?What would you have done differently if you could start the work over again and why? On a weekly basis, I am involved in a Management Plan meeting that determines in-custody housing for our adults in custody that re under-represented by the incarcerated population as a whole;such as Transgender individuals, persons needing ADA accommodations,and others.The committee consists of uniform staff, Medical and Mental Health professionals, Programmatic staff,and"first line"staff. Each week we meet our goal of finding the best in- custody options for housing these adults in custody. If I could start this process over again, I would lean more on preparation of all parties involved in these meetings.Sometimes decisions are made with out the benefit of complete information blocks. Beginning in May 2020,demonstrations over the police killing of George Floyd have been held in Portland.Most of the protests have been peaceful,but some have involved arson,looting,vandalism,and injuries.From your perspective,how should the City of Portland,State of Oregon,and federal government have responded to the protests?Ata minimum,please cover public safety,free speech,and private property rights. Since my office for the Multnomah County Sheriff's Office is located in the Justice Center building, I have seen firsthand the destruction of the downtown Portland area since the end of May 2020. I would have liked to see the City of Portland more involved with the demonstrations right at the beginning. Instead,the City took a"wait and see" approach.This failed miserably and it turned into a"us against them"approach.The time to discuss passed quickly, and the City was not prepared for it. From my perspective,it was easy to see who was protesting and who was rioting. Although the rioters"hid"with in the protests, had the City been on the same page as the protestors,possibly the protestors could have become an ally against the people committing all the property damage and putting innocent people in grave danger.We never needed over whelming force to control these crowds; dialogue a t the start may have prevented some of this violence altogether. Public Safety Advisory Board Video Application Nick Jarmer: ittps://youtu.be/t6 NPYoRoRA AIS-4600 6. Business Meeting Meeting Date: 05/25/2021 Length (in minutes): 30 Minutes Agenda Title: Consider Ordinance Amending Comprehensive Plan to Adopt Housing Needs Analysis Update Prepared For: Schuyler Warren, Community Development Submitted By: Schuyler Warren, Community Development Item Type: Motion Requested Meeting Type: Council Ordinance Business Public Hearing - Legislative Meeting- Main Public Hearing: Yes Publication Date: Information ISSUE Shall the Comprehensive Plan Chapter 10 Housing be amended and an update to the Tigard Housing Needs Analysis adopted? STAFF RECOMMENDATION / ACTION REQUEST Staff recommends adoption of the Housing Needs Analysis and associated Comprehensive Plan amendments as proposed. KEY FACTS AND INFORMATION SUMMARY Background In 2020, the Tigard City Council updated its two-year Council Goals to include direction to staff to prepare a concept plan for two urban reserve areas at the southwestern edge of the city. This concept plan will support an application to Metro for expansion of the Urban Growth Boundary. The Metro Urban Growth Management Functional Plan provides the process, procedures, and criteria for approval of expansions, and includes a criterion that the city's Housing Needs Analysis be updated within the past six years. The city's current Housing Needs Analysis was adopted in 2013 and would not meet this criterion. Staff applied for and received a grant from the Department of Land Conservation and Development to update the city's HNA, as well as conduct a Housing Market Analysis to be incorporated as part of the HNA. This work was conducted as a parallel project to the concept planning for River Terrace 2.0, although its scope was citywide as opposed to being focused in only one geographic areas. The following summarizes the topline findings from the HNA, as well as recommended action measures and updates to the city's Comprehensive Plan Chapter 10. Topline Findings The Housing Needs Analysis gathered data on the city's housing needs and supply, as well as the desires of Tigard residents. Some key findings include: •Nearly 60% of the city's current housing supply is single detached houses. • Since at least 2015, rent increases have exceeded the core inflation rate. •Tigard residents report that housing costs are too high, and there is a need for more housing diversity. •The city has a vacancy rate of 3.4% in homes for purchase and rent. This is exceptionally low compared to surrounding areas and the state. •Over 7,400 additional housing units will be needed in Tigard over the next 20 years. •This equates to over 340 new units per year over 20 years. •The city currently has capacity for 4,200 units,leading to a shortfall of 3,200 units. Developer Perspectives Through interviews with developers, the project team found that: •Developers are interested in SDCs that are tied to housing unit size that could lower the cost of middle and small housing units. •Land availability is a major concern for affordable housing developers. •Middle housing is an attractive option for both affordable and market-rate developers. •Affordable housing faces barriers to development that range from land availability, financing, and neighborhood opposition. Implementation Strate xges A list of 9 implementation strategies were identified that would help the city meet its housing goals. Some of these strategies are already identified in the city's Affordable Housing Plan or are in place. In those cases, the recommendations are to continue or expand those policies and programs. 1. Land Banking and Targeted Site Development 2. Partnering with a Community Land Trust for Affordable Homeownership 3. Targeted Use of the Construction Excise Tax Revenue 4. Incentive Zoning and Inclusionary Housing 5. Revised System Development Charge Structure 6. Tax Abatements 7. Pre-permitted Home Models 8. Matchmaking and Developer Support 9. Lending Programs for Affordable Middle Housing Policy Updates Some of the policies and action measures of Chapter 10 Housing of the city's Comprehensive Plan were found to be outdated or were missing language that reflected intent to pursue the implementation strategies. The updated language reflects the following topics: •Intent to house the unhoused. •Providing opportunity for housing options. •Promoting equitable housing opportunity and mixed-income neighborhoods. •Support for affordable housing development. •Exploring land banking opportunities. OTHER ALTERNATIVES Council could instead opt to adopt the Housing Needs Analysis with amended Comprehensive Plan policies or opt to not adopt the updated Housing Needs Analysis. If not adopted, the city would not meet the Metro UGMFP criteria for Urban Growth Boundary expansion. COUNCIL GOALS, POLICIES, APPROVED MASTER PLANS Tigard Comprehensive Plan Goal 10 - Housing DATES OF PREVIOUS COUNCIL CONSIDERATION 3/3/20 - Acceptance of Metro 2040 Planning grant to fund concept planning for River Terrace 2.0 9/15/20 - Briefing on River Terrace 2.0 2/2/21 - Briefing on River Terrace 2.0 Attachments Ordinance Exhibit A - HNA Exhibit B - Comprehensive Plan Amendments Exhibit C - PC Recommendation and Findirws CITY OF TIGARD, OREGON TIGARD CITY COUNCIL ORDINANCE NO. 21- AN ORDINANCE ADOPTING COMPREHENSIVE PLAN AMENDMENT CPA 2021-00002 TO ADOPT THE 2021 TIGARD HOUSING NEEDS ANALYSIS AS AN ANCILLARY DOCUMENT TO THE TIGARD COMPREHENSIVE PLAN GOAL 10: HOUSING AND TO AMEND TIGARD COMPREHENSIVE PLAN GOAL 10: HOUSING WHEREAS, Oregon Statewide Planning Goal 10 and Administrative Rule 660 Division 7 require cities to periodically assess their housing needs;and WHEREAS,the City of Tigard last adopted an update to its Housing Needs Analysis in 2013;and WHEREAS,in the time since the adoption of the previous update Tigard and the region have experienced an ongoing housing crisis;and WHEREAS, Tigard has adopted housing policy reforms and initiatives to encourage more affordable and diverse housing across the city;and WHEREAS,the city seeks to understand its 20-year housing forecast need in the context of the foregoing;and WHEREAS, the City Council desires to ensure the availability of adequate lands for development of housing; and WHEREAS, the city received grant monies from the Department of Land Conservation and Development to update its Housing Needs Analysis and incorporate a Housing Market Analysis;and WHEREAS, the 2021 Tigard Housing Needs Analysis is consistent with the provisions of Oregon Statewide Planning Goal 10 and Administrative Rule 660 Division 7;and WHEREAS,the city has proposed an amendment to eh Tigard Comprehensive Plan to update the Policies and Recommended Action Measures corresponding to Statewide Planning Goal 10;and WHEREAS, on April 19, 2021, the Tigard Planning Commission held a public hearing and recommended approval of the proposed CPA 2021-00002 by motion with unanimous support;and WHEREAS, on May 25, 2021, the Tigard City Council held a public hearing to consider the Planning Commission's recommendation,hear public testimony,and apply applicable decision-making criteria;and WHEREAS, the Tigard City Council's decision was based on the findings and conclusions found in Exhibit C and the associated record which is incorporated herein by reference and is contained in land use file CPA 2021- 00002. NOW,THEREFORE,THE CITY OF TIGARD ORDAINS AS FOLLOWS: ORDINANCE No. 21- Page 1 SECTION 1: Tigard City Council adopts the 2021 Tigard Housing Needs Analysis (EXHIBIT A) as an ancillary document to the Tigard Comprehensive Plan Goal 10: Housing. SECTION 2: Tigard Comprehensive Plan Goal 10:Housing is amended to include new text and rescind existing text as shows in EXHIBIT B. SECTION 3: Tigard City Council adopts the findings and conclusions contained in EXHIBIT C ins support of the Council's action and to be the legislative basis for this ordinance. SECTION 4: This ordinance shall be effective 30 days after its passage by the council, signature by the mayor,and posting by the city recorder. PASSED: By vote of all council members present after being read by number and title only,this day of .2021. Carol A. Kroger,City Recorder APPROVED: By Tigard City Council this day of .2021. Jason B. Snider,Mayor Approved as to form: City Attorney Date ORDINANCE No. 21- Page 2 Exhibit A IN 41 TIGART7 a City of Tigard Housing Needs Analysis & Housing Market Analysis May 2021 Exhibit A Prepared for City of Tigard 13125 SW Hall Boulevard Tigard, OR 97223 ft r a T I CARD 'FF With funding from the Oregon Department of Land Conservation and Development Consultant Team Mosaic Community Planning, LLC Urbsworks Leland Consulting Group Otak Exhibit A Contents LIST OF FIGURES II LIST OF TABLES IV CHAPTER 1: INTRODUCTION 2 Definitions 3 Data Sources 3 CHAPTER 2: COMMUNITY INPUT 5 Housing Survey 6 Community Advisory Committee 10 CHAPTER 3: DEMOGRAPHIC TRENDS 13 Population Growth 14 Demographic Overview 18 Economic Conditions and Trends 30 CHAPTER 4: HOUSING NEEDS Existing Housing Needs 38 Housing Need Projections 42 CHAPTER 5: HOUSING MARKET ANALYSIS Housing Supply Overview 46 Affordable Housing 58 Developer Perspectives 68 Implementation Strategies 71 CHAPTER 6: BUILDABLE LANDS INVENTORY /8 CHAPTER 7: RESIDENTIAL LAND NEEDS ANALYSIS 87 Residential Land Analysis 88 Housing Strategies & Recommendations 92 City of Tigard I HOUSING NEEDS ANALYSIS& HOUSING MARKET ANALYSIS Exhibit A List of Figures Figure 1: Housing Diversity and Affordability Statements 8 Figure 2: Housing Affordability for Families and Single People 8 Figure 3: Housing Affordability for Seniors and People who Work in Tigard 8 Figure 4:What Features and Amenities are Most Important to You?Top Responses 9 Figure 5: Which Factors Make it Difficult to Find Housing in Tigard? 10 Figure 6: Population Growth, City of Tigard, Washington County, Portland-Vancouver- Hillsboro MSA, and state of Oregon, 2010-2019 15 Figure 7: Number of Households, City of Tigard, Washington County, Portland- Vancouver-Hillsboro MSA, and state of Oregon, 2006-2010 and 2014-2018 16 Figure 8: Households Growth Rate, City of Tigard, Washington County, Portland- Vancouver-Hillsboro MSA, and state of Oregon, 2006-2010 to 2014-2018 16 Figure 9: Average Household Size, City of Tigard, Washington County, Portland- Vancouver-Hillsboro MSA, and state of Oregon, 2014-2018 17 Figure 10: Households by household size, City of Tigard, 2014-2018 18 Figure 11: Percent of Population by Age Group, City of Tigard, Washington County, Portland-Vancouver-Hillsboro MSA, and state of Oregon, 2014-2018 19 Figure 12: Population by Age Group, City of Tigard, 2006-2010 and 2014-2018 20 Figure 13: Percent of Population by Race and Ethnicity, City of Tigard, Washington County, and Portland-Vancouver-Hillsboro MSA, and state of Oregon, 2014-2018 21 Figure 14: Population by Race and Ethnicity, City of Tigard, 2006-2010 and 2014-2018 22 Figure 15: Percent of Population by Language Spoken at Home (Population 5 Years and Over), City of Tigard, Washington County, Portland-Vancouver-Hillsboro MSA, and state of Oregon, 2014-2018 23 Figure 16: Percent Limited English-Speaking Households, City of Tigard, Washington County, Portland-Vancouver-Hillsboro MSA, and state of Oregon, 2014-2018 25 Figure 17: Population by Income Group, City of Tigard, Washington County, Portland- Vancouver-Hillsboro MSA, and state of Oregon, 2014-2018 26 Figure 18: Median Household Income, City of Tigard, Washington County, Portland- Vancouver-Hillsboro MSA, and state of Oregon, 2014-2018 27 Figure 19: Percentages of Owner and Rental Households by Percent HUD Area Median Family Income, City of Tigard, 2013-2017 28 Figure 20: Numbers of Owner and Rental Households by Percent of HUD Area Median Family Income, City of Tigard, 2013-2017 29 Figure 21: Income Limits by Household Size for Selected Percentages of HUD Area Median Family Income, Washington County, 2020 30 Figure 22: Number of Jobs by NAICS Industry Sector (All Jobs), City of Tigard, 2017 31 ii HOUSING NEEDS ANALYSIS& HOUSING MARKET ANALYSIS I City of Tigard Exhibit A Figure 23: Jobs Located in the City of Tigard by NAICS Industry Sector, 2002, 2010, and 2017 (All Jobs) 32 Figure 24: Jobs Held by Tigard Residents by NAICS Industry Sector, 2002, 2010, and 2017 (All Jobs) 33 Figure 25: Commuting Patterns of Resident and Non-Resident Workers, City of Tigard, 2017 (All Jobs) 34 Figure 26: Distance Traveled to Work by Wage, City of Tigard Residents (for Primary Jobs), 2017 35 Figure 27: Projected Employment, Portland Tri-County Area, 2019 and 2029 36 Figure 28: Occupied Housing Units by Structure Type, 2014-2018 53 Figure 29: Gross Rent, 2014-2018 56 Figure 30: Monthly Owner Costs for Households with a Mortgage, 2014-2018 57 Figure 31: Housing Choice Voucher Use in Tigard 59 Figure 32: LIHTC Development in Tigard 61 Figure 33: Zoning of Buildable Lands, City of Tigard 81 City of Tigard 1 HOUSING NEEDS ANALYSIS& HOUSING MARKET ANALYSIS iii Exhibit A List of Tables Table 1: Survey Participant Demographics 6 Table 2: Population Growth, City of Tigard, Washington County, Portland-Vancouver- Hillsboro MSA, and state of Oregon, 2010-2019 14 Table 3: Estimated Housing Needs by Income Group in Tigard, 2017 39 Table 4: Estimated Housing Needs by Type in Tigard, 2017 40 Table 5: Estimated Housing Needs by Race and Ethnicity, 2017 41 Table 6: 2040 Household Growth Forecasts for the Tigard Planning Area 42 Table 7: Housing Units Needed Based on Growth in the Tigard Planning Area, 2020 to 2040 43 Table 8: Total Housing Units Needed by Income Category in the Tigard Planning Area, 2020 to 2040 44 Table 9: Housing Units and Household Growth from 2000 to 2014-2018 47 Table 10: Tenure by Households, 2000 and 2014-2018 47 Table 11: Homeownership Rate by Household Income, 2014-2018 48 Table 12: Vacancy Rate, 2014-2018 49 Table 13: For-Sale and Rental Vacancy Rates, 2014-2018 50 Table 14: Status of Vacant Units, 2014-2018 50 Table 15: Housing Units by Number of Bedrooms, 2014-2018 51 Table 16: Housing Units by Year Structure Built, 2014-2018 54 Table 17: Median Home Value and Monthly Owner Costs, 2014-2018 55 Table 18: Affordable Housing Development, City of Tigard, 2021 62 Table 19: Hillsboro, Beaverton/Washington County CoC 2019 Point-in-Time Homeless Count 63 Table 20: Demographic Summary of Sheltered and Unsheltered Homeless Persons in the Hillsboro, Beaverton/Washington County CoC 64 Table 21: Race and Ethnicity of Sheltered and Unsheltered Homeless Persons in the Hillsboro, Beaverton/Washington County CoC 65 Table 22: Facilities and Housing Targeted to Homeless Households 67 Table 23: Zoning and Acreage of Buildable Lands, City of Tigard 82 Table 24: Acres of Buildable Lands in which Residential Uses are Allowed, Limited, and Prohibited, City of Tigard 83 Table 25: Housing Types Allowed by Zoning Types of Buildable Lands, City of Tigard 84 Table 26: Acres of Buildable Lands in which Residential Uses are Allowed, Limited, and Prohibited, City of Tigard 86 iv HOUSING NEEDS ANALYSIS& HOUSING MARKET ANALYSIS i City of Tigard Exhibit A Table 27: Housing Units Needed in the Tigard Planning Area, 2020 to 2040 88 Table 28: Segmentation of Needed Housing by Plan Designation, City of Tigard 89 Table 29: Net Buildable Land by Residential Designation, City of Tigard 90 Table 30: Residential Capacity Estimate on Vacant and Partially Vacant Land, City of Tigard 91 Table 31: Comparison of Housing Need and Housing Capacity, City of Tigard 92 City of Tigard I HOUSING NEEDS ANALYSIS&HOUSING MARKET ANALYSIS v Exhibit A Chapter 1 : Introduction •K Exhibit A Definitions Affordable Housing The definition used throughout this analysis is congruent with the U.S Department of Housing and Urban Development's definition of "affordable housing"as housing that costs no more than 30% of a household's total monthly gross income. For rental housing, the 30% amount would be inclusive of any tenant-paid utility costs. For homeowners, the 30% amount would include the mortgage payment, property taxes, homeowners insurance, and any homeowners' association fees. Data Sources Decennial Census Data Data collected by the Decennial Census for 2010 and 2000 is used in this Assessment (older Census data is only used in conjunction with more recent data in order to illustrate trends). The Decennial Census data is used by the U.S. Census Bureau to create several different datasets: 2010 and 2000 Census Summary File 1 (SF 1),- This dataset contains what is known as "100% data," meaning that it contains the data collected from every household that participated in the Census and is not based on a representative sample of the population. Though this dataset is very broad in terms of coverage of the total population, it is limited in the depth of the information collected. Basic characteristics such as age, sex, and race are collected, but not more detailed information such as disability status, occupation, and income. The statistics are available for a variety of geographic levels with most tables obtainable down to the census tract or block group level. 2000 Census Summary File 3 (SF 3) - Containing sample data from approximately one in every six U.S. households,this dataset is compiled from respondents who received the "long form" Census survey. This comprehensive and highly detailed dataset contains information on such topics as ancestry, level of education,occupation, commute time to work,and home value. The SF 3 dataset was discontinued for the 2010 Census, but many of the variables from SF 3 are included in the American Community Survey. American Community Survey (ACS) The American Community Survey is an ongoing statistical survey that samples a small percentage of the U.S. population every year, thus providing communities with more current population and housing data throughout the 10 years between censuses. This approach trades the accuracy of the Decennial Census Data for the relative immediacy of continuously polled data from every year. ACS data is compiled from an annual sample of approximately 3 million addresses rather than an actual count (like the Decennial Census's SF 1 data) and therefore is susceptible to sampling errors. This data is released in two different formats: single-year estimates and multi-year estimates. City of Tigard I HOUSING NEEDS ANALYSIS& HOUSING MARKET ANALYSIS 3 Exhibit A ACS Multi-Year Estimates - More current than Census 2010 data, this dataset is one of the most frequently used. Because sampling error is reduced when estimates are collected over a longer period of time, 5-year estimates will be more accurate (but less recent) than 1-year estimates. The 2014-2018 ACS 5-year estimates are used most often in this HAP. Comprehensive Housing Affordability Strategy (CHAS) CHAS data is a special tabulation of the U.S. Census Bureau's American Community Survey (ACS) that is largely not available through standard Census products. The special dataset provides counts of the number of households with a variety of housing needs, in a range of income brackets, and for different household types of particular interest to planners and policy makers. The most recent available CHAS data is based on 2013-2017 American Community Survey 5-year estimates. 4 HOUSING NEEDS ANALYSIS&HOUSING MARKET ANALYSIS I City of Tigard Exhibit A Chapter 2 : Community jut J` Exhibit A Tigard residents and employees have a wide range of housing needs and preferences that must be achieved for housing planning efforts to succeed. To gather community perceptions about housing preferences and residents' ideas for the future of Tigard, the Planning Team conducted an online survey open to the general public and engaged a Community Advisory Committee to provide feedback during development of the Housing Needs Analysis (HNA) and Housing Market Analysis (HMA). Additionally, the Planning Team held a Spanish language focus group to gather input from Spanish-speaking residents. In total, over 150 people participated. This section summarizes feedback received from Tigard residents and employees through each of these methods. Additional input from interviews with housing industry stakeholders is included in the Housing Market Analysis portion of this report. Housing Survey i A public survey, "What Makes A Great Neighborhood," was available on the Engage Tigard website (engage.tiaard-or.00v/rt2) from mid- --u November through the end of December 2020. The 25-question survey focused on participants' views Crr'i20 on housing, transportation, and businesses that they would like to see in their neighborhoods. Housing survey questions were also available in .�. Spanish. A total of 139 responses were received. This section shares key findings, with complete survey results available in _ _ an appendix to this report. Table 1: Survey Participant Demographics Participants Living • 96%of survey respondents live in Tigard. and Working in Tigard • 40%of respondents work in Tigard. • Participants came from all areas of Tigard.Most common neighborhoods are Bull Mountain, Durham Road,Southview,Cook Park,Greenburg Road,and Summerlake/Scholls. Tenure and • 80%of respondents own their homes. Homeownership • 14%of respondents rent their homes. • 5%live with friends or relatives or in another housing situation. Age • About one-half of survey respondents (52%)are between the ages of 30 and 49 • Seniors(over age 60) make up one-quarter of respondents(26%). 6 HOUSING NEEDS ANALYSIS& HOUSING MARKET ANALYSIS I City of Tigard Exhibit A Income • A variety of income groups were represented among survey participants. • About 18%of survey takers have incomes under$50,000 and 25%have incomes between$50,000 and$74,999. • Higher incomes groups make up over one-half of participants:29%between$100,000 and$149,999 and$27%over$200,000. Race a-d 'Ethnicity • The majority of survey participants are white(82%). • Asian and Hispanic or Latinx respondents each make up 6%of survey takers • Native American and Black or African American participants make up the smallest shares(3%and 1%,respectively). Perspectives on Housing Affordability One survey question asked respondents to rank their level of agreement with a series of statements about housing affordability in Tigard. Responses are displayed in Figure 1, Figure 2, and Figure 3. About 63% of participants say they "strongly agree" or "somewhat agree" that Tigard needs greater variety of housing types and prices. About one-in-six respondents (15%) "somewhat disagree" or "strongly disagree" that Tigard needs more housing variety. A roughly similar share of participants "strongly agree" or "somewhat agree" that housing affordability is an important issue in Tigard (60%). However, there is more disagreement regarding this statement: 21% of respondents "somewhat" or "strongly disagree." Considering several different household compositions, respondents were asked to identify whether they believe each can find housing that they can afford in Tigard. Survey takers described single people as the group most likely to have difficulty affording housing. About 54% of respondents "strongly disagree" or "somewhat disagree" that single people can afford housing in Tigard, and less than one-quarter agreed. Young families are also seen by a substantial portion of respondents as having difficulty affording homes in Tigard. About 46% "strongly disagree" or "somewhat disagree" that young families can afford to live, compared to 35% who "strongly" or "somewhat agree." Survey takers are considerably more likely to agree that seniors and people who work in Tigard can afford to live there. When asked if they agree or disagree that seniors can afford to live in Tigard, responses are roughly evenly split: about 35% "somewhat" or "strongly disagree," and 30% "somewhat" or strongly agree." People working in Tigard are most likely to be seen as able to afford housing there: 38% of survey takers "somewhat" or "strongly agree" that Tigard employees can afford to live there, compared to 31%that "somewhat" or "strongly disagree." City of Tigard I HOUSING NEEDS ANALYSIS& HOUSING MARKET ANALYSIS 7 Exhibit A Figure 1: Housing Diversity and Affordability Statements i 3%somewhat or rough,agree 4 Tigard needs greater variety of housing in terms of housing types and prices. .--• r strongly agree Lack of affordable housing is an important issue in Tigard. .1 Go% ICJD Share of Survey Takers a Strongly Disagree • Somewhat Disagree Neither Agree nor Disagree Somewhat Agi • Strongly Agree Figure 2: Housing Affordability for Families and Single People 46%somewnat or strongiy disagree A Young families can find housing they can afford 'n Tigard. 111 55.1%somewhat or strongly disagree ok• Single peopfe • find housing they can afford in Tigard. Share at Survey Ta kefs Figure 3: Housing Affordability for Seniors and People who Work in Tigard People who work in Tigard can find housing they can afford here or 7 1,1•1 '1!% Seniors can find housing they can afford in Tigard. 1 -•:, „ ilk• , Shall'Of SI415/ y tools 8 HOUSING NEEDS ANALYSIS& HOUSING MARKET ANALYSIS I City of Tigard Exhibit A Perspectives on Desired Housing Types What type of living Survey questions also asked participants to identify situation would you prefer? characteristics that they consider when looking for housing. The vast majority would prefer to own their n '0/O homes (93%), which may reflect both a preference for `� homeownership and a predominance of homeowners would prefer to own the place among survey respondents (80% of participants already Where the live own their homes). Y In identifying housing sizes that are potentially 60/0 undersupplied in Tigard, there was little consensus would prefer to re: the place among respondents. A roughly equivalent share of participants (28-30%) felt that there are shortages of where they live two-, three-, or four-bedroom units in Tigard. Smaller housing (studios and one-bedroom units) was less likely to be identified as undersupplied (selected by 7% and 19% of respondents, respectively). Further, about one-quarter of respondents did not know. Note that percentages total to over 100% because respondents were asked to select up to two responses. In thinking about features and amenities that are important in selecting a home,the top response was safe streets and sidewalks, identified as "extremely important" or "very important" by 86% of survey takers. Size of the home, dedicated garage or off-street parking, and front or back yards were all identified as "extremely" or "very important" by more than 80% of participants. Figure 4: What Features and Amenities are Most Important to You?Top Responses Safe streets and sidewalks Size of home Off-street parking _. Front or back yards Trees and natural features Air Price of home Parks,open space, or trails - Age or overall condition of home 0 20 40 50 80 100 120 N ur he r of Survey Takers who Identified Features as"Extreme'y Important"or"Very I m po rtant" City of Tigard i HOUSING NEEDS ANALYSIS& HOUSING MARKET ANALYSIS 9 Exhibit A Finally, respondents were asked what makes it difficult to find housing in Tigard. Overwhelmingly, the most common response was cost, identified by 55% of respondents. Not enough for-sale housing and not enough single-story homes that are accessible for seniors and people with disabilities were other top responses, selected by 29% and 20% of participants, respectively. Figure 5: Which Factors Make it Difficult to Find Housing in Tigard? Cost is too expensive Not enough housing for sale Not enough single-story accessible homes Not enough housing with desired features/amenities Not enough small homes Not enough housing for rent Not enough large homes Distance from work, school or other destinations 0 10 20 30 40 !At Gid 80 N umber of Survey Takers Community Advisory Committee In addition to gathering perspectives from the general public,a 14-member Community Advisory Committee also guided work on the Housing Needs Analysis/Housing Market Analysis. Five meetings were held from October 2020 through March 2021. Discussion topics at the CAC meetings included existing housing supply, housing affordability needs, community input received, desired housing types and concepts, and recommendations for achieving housing goals. Ideas shared by CAC members are summarized below. Housing Types & Sizes • A crucial component of residential planning should be a focus on greater variety in housing types and sizes to serve a wider array of needs in the community. Tigard needs a housing supply that makes it accessible to all. • New construction leans toward larger homes, but there is a need for smaller housing as well. Areas that develop should include a mix with middle housing options (cottage clusters, rowhouses, accessory dwelling units, multi-plex units) and not be predominately single- family detached homes. 10 HOUSING NEEDS ANALYSIS&HOUSING MARKET ANALYSIS City of Tigard Exhibit A • Many of these housing/architectural types are time-tested and have the ability to serve multiple population groups over time. • More one-story/ranch-style homes would serve aging Tigard residents or seniors who would like to locate in the area. • Duplexes offer good opportunities for multi-generational households to live in the same building. They also tend to be smaller and more affordable units. • Apartments of a variety of sizes are needed. Housing Locations • Considerably more apartments would be appropriate and needed downtown and in the Tigard Triangle where there is walkability, transit opportunity, and vibrancy. • Older neighborhoods that do not have sidewalks may be less attractive than areas with greater walkability. • There is a need for housing and community/civic centers to be co-located, improving walkability and safety. • Opportunities for multi-family housing near natural areas are good and could offer apartment dwellers a "backyard." • To the extent possible, each area of the city should have a variety of housing types rather than having, for example, all low-density development in area.Variety is desired throughout the city and throughout new development areas. Affordability & Equity • Improving affordability of housing should be a key goal for the city. New development should represent a mix of prices and not be focused on luxury units. • Apartments that are affordable to lower-income families with children and have amenities to serve them are needed in Tigard. • Renters are vulnerable to displacement as prices increases. • Many young adults are 'priced out' of Tigard or continue living with their parents because housing is too expensive. • Survey results indicating that seniors can afford to live in Tigard is surprising. In CAC members experience, seniors face difficulty finding an affordable place to live. • Among households that look for larger homes are many immigrant families that rely on communal living styles. • Low- and moderate-income households and people of color need to be heard as part of the planning and decision-making process. • Homeowners Associations (HOAs) can present barriers to some types of housing development. • Community Land Trusts (CLTs) and cooperatives are needed to establish more permanent affordable housing in Tigard. City of Tigard I HOUSING NEEDS ANALYSIS& HOUSING MARKET ANALYSIS 11 Exhibit A Spanish Language Focus Group In January, the City of Tigard and the Planning Team held a virtual focus group for Spanish speakers. Participants were asked to discuss needs in the three key topic areas of housing, transportation, and commercial areas, and to share ideas about what makes a neighborhood great. Discussion themes related to housing are provided below: • Affordable Housing o Rent is very expensive. It is difficult to find lower cost housing. o Sales prices are also very high. Even though people may be interested in buying a home, the prices are prohibitive. o There is a concern that new home construction may replace smaller, more affordable homes with costlier housing. • Tenant Advocacy o Landlords/rental housing owners raise rents but do not respond to tenant needs. o There is a need for representatives who can advocate for people having issues with their landlord. • Cost of Living o Cost of living has increased, particularly in the last two years. Prices have gone up while minimum wage remained the same. • Walkability o Walkability is important, particularly to grocery stores, banks, and health-care facilities that serve low- and moderate-income households. Residents should be able to access these by walking from home rather than having to take a bus or go out of town. 12 HOUSING NEEDS ANALYSIS& HOUSING MARKET ANALYSIS City of Tigard Exhibit A Chapter 3 : Demographic Trends Exhibit A Population Growth The city of Tigard's population has grown rapidly in recent years. As of 2019, the city's population was 53,450, representing an 11.1% increase from its 2010 population of 48,090 and an average annual growth rate of 1.2% for 2010 to 2019 (see Table 2 and Figure 6). The city added 5,360 residents over this time period,an average of about 596 residents per year.Tigard's population grew at a slower rate (1.2%) than that of Washington County (1.6% average annual growth rate) and the Portland-Vancouver-Hillsboro metropolitan area (2.5%), but slightly faster than that of the state of Oregon (1.1% average annual growth rate). Table 2: Population Growth, City of Tigard, Washington County, Portland-Vancouver- Hillsboro MSA, and state of Oregon, 2010-2019 YEAR CITY OF WASHINGTON PORTLAND OREGON TIGARD COUNTY MSA 2040 2010 48,090 531,070 2,230,578 3,837,300 2015 49,280 570,510 2,364,954 4,013,845 2016 49,745 583,595 2,409,884 4,076,350 2017 50,985 595,860 2,454,774 4,141,100 2018 52,785 606,280 2,491,885 4,195,300 2019 53,450 613,410 2,522,223 4,236,400 Population Growth Rate Population Growth Rate 2010-2019 11.1% 15.5% 13.1% 10.4% Average Annual Growth Rate 2010 -2019 1.2% 1.6% 2.5% 1.1% Source: Portland State University Center for Population Research,2020 14 HOUSING NEEDS ANALYSIS&HOUSING MARKET ANALYSIS City of Tigard Exhibit A Figure 6: Population Growth, City of Tigard, Washington County, Portland-Vancouver- Hillsboro MSA,, and state of Oregon, 2010-2019 4,000,®00 3,500.000 3,000,000 O• 2.5c o000 • 2,000.000 0 1,500,000 1.00 020 00 k414p0 500,000 0 =010 2011 2012 2013 2014 20T5 2015 2017 2018 2019 Year City of Tigard Portland MSA ;W. °."-r Washington County Oregon .. The city of Tigard was home to an estimated 21,016 households from 2014-2018 according to American Community Survey 5-year estimates, an increase of 1,972 households or 10.4% from the 2006-2010 estimates (see Figure 7 and Figure 8). During this period, the city added households at a faster rate than Washington County (which experienced a 10.2% increase in households), the Portland-Vancouver-Hillsboro metropolitan area (8.8% increase), and the state of Oregon (6.2% increase). City of Tigard HOUSING NEEDS ANALYSIS& HOUSING MARKET ANALYSIS 15 Exhibit A Figure 7: Number of Households, City of Tigard, Washington County, Portland-Vancouver- Hillsboro MSA, and state of Oregon, 2006-2010 and 2014-2018 City of Tigard Washartgtcn Portland MSA Oregon County 1,6001.000 1591,b 5 1 4'1'],21,7 1,400,000 1,200,000 1,000,,000 925631 X 850,849O 800,000 G .0 6Oa.0O0 z 4oa.o!O 20[1,000 196.438 ,710`,507 '0 171,016 911111.111.111.0 2010 2018 2010 2018 2010 2018 2010 2018 Figure 8: Households Growth Rate, City of Tigard, Washington County, Portland-Vancouver- Hillsboro MSA, and state of Oregon, 2006-2010 to 2014-2018 104% i02% 10% g>, 8.89( is.: 4i 4 6% 51 Z 4% ++ 5. p 2 0 2% C 8 1% City of Tigard Washington Portland MSA Oregon County Percent Growth(2010.2018) 6% 111.111 1096 u.. +.� , 16 HOUSING NEEDS ANALYSIS& HOUSING MARKET ANALYSIS City of Tigard Exhibit A The city of Tigard has the smallest average household size (number of persons per household) of the four geographies, at 2.47 people per household on average, slightly lower than the state average of 2.51. Washington County has the largest average household size of the geographies at 2.66 people per household, on average. Figure 9: Ave-age Household Size, City of Tigard, Washington County, Portland-Vancouver- Hillsboro MSA, and state of Oregon, 2014-2018 2,8 2.66 2.57 2.6 247 2.51 S 2A 4 2.2 2.0 1 1.8 1.6 1.2 i S 1.0 0.8 � u i 0.5 I sv s o_4 0.2 0.0 City of Tigard Washington Portlend MSA Oregon County .,. ba Bey in An estimated 60.6% of households in Tigard (12,742 households) are owner-occupied, while 39.4% are renter-occupied (8,274 households) (see Figure 10). About 63.6% of all households have two people or less, and 80.2% have 3 people or less. About 19.8%of households have four or more people, and 6.2%have five or more people. Renter-occupied households are more likely than owner-occupied households to be one-person households (34.9%of renter households and 20.1% of owner households), while owner-occupied households are more likely to be 2-person households (41.0% of owner households and 32.4% of renter households) and households with four or more people (22.7% of owner households and 15.3% of renter households). Two-person households are the most common household size for owners (5,229 owner-occupied households), while 1-person households are most common for renters (2,889 renter-occupied households). City of'Tigard I HOUSING NEEDS ANALYSIS& HOUSING MARKET ANALYSIS 17 Exhibit A Figure 10: Households by household size, City of Tigard, 2014-2018 1-pe mon oi nq 2-pson 3-02•-00 4-wrovson Filereon G-riOvs-i' 7-or-more Ytousehatd hauschold household hqusehraiq h©usrhold tiqusehotd " s4n hous�notd 5,229 5.000 t 4,000 a O 1,BBR S 3,000 2,677 Q 2,5[2 1 2,000 2057 2002 1.44E 1,0(30 844 '51.1?Q 33s 20ti3 45 II 13 O 13 13 17 t7 C7 4 Sf S1 6+ G F qi N 'N N 14 to c d C 9 9 c a 9 9 9 9 9 9 9 9 9 1. 1. d 4 C C C C C aaa C r W C L C Pr C! a 0 ix 0 1i 0 u, 0 a 0 Nutrilperpf NAU5Ehvli4s 38. 4111111111111MM 5,229 5-Yur Demographic Overview Age Composition of the population by age group varies slightly throughout the region and state. Tigard, Washington County, and the Portland-Vancouver Hillsboro metropolitan area have slightly lower percentages of residents aged 60 and over than the state of Oregon as a whole, and the city of Tigard has the highest proportion of residents aged 30 to 39 of the four geographies (16.3% of all residents) (see Figure 11). An estimated 23.9% of Tigard residents are aged 19 and under, about 42.7% are aged 20 to 49, about 33.4% are aged 50 and above. An estimated 20.6% of Tigard residents are aged 60 and above. 18 HOUSING NEEDS ANALYSIS& HOUSING MARKET ANALYSIS I City of Tigard Exhibit A Figure 11: Percent of Population by Age Group, City of Tigard, Washington County, Portland- Vancouver-Hillsboro MSA, and state of Oregon, 2014-2018 1009. 0 C3 90% a.Y 50% .507, it dL 30% 13 Jy +o 201: 5• 6 10'.?1, 28.4% 19.7% 18.396, s7 5 4, City of Tigard Washington Portland MSA Oregon County 14 and under 30 to 59 V 60 to 64 15 to 19 40 to 49 55 and over 20 to 29 v.sate 59 r Jr',MAT • MA?U The composition of the city's population by age has shifted since 2010, with much of the growth concentrated in upper age categories (see Figure 12). The city's population grew by 5,076 from 2010 to 2018, including increases in the population aged 65 and over of 2,660 (a 53.6% increase) and in the population aged 60 to 64 of 1,233 (a 63.7% increase). The city also experienced increases in populations aged 20 to 29 (16.3%) and 30 to 39 (19.9%), and a slight increase in the population 14 and under (3.9%) over the time period. It experienced decreases in populations aged 15 to 19, 40 to 49, and 50 to 59. Similarly, residents aged 40 to 59 and 19 and under declined as a share of the city's population over the time period, while residents aged 20 to 39 and aged 60 and above increased in shares of the city's population. City of Tigard I HOUSING NEEDS ANALYSIS&HOUSING MARKET ANALYSIS 19 Exhibit A Figure 12: Population by Age Group, City of Tigard, 2006-2010 and 2014-2018 50.000 45.000 0,000 r. 35.404 Age Group r-,610 14 and under 30,000 15 to 19 20 tp 29 0 25,[300 30 to 39 me 40 to 49 ■5@ tt3 S9 20.000 N 60 to 64 65 and over 15.000 8,199 7.195 3;213r 10,000 5.000 9260 9.624 0 2010 2019 < .. a. .=eine Race and Ethnicity White residents make up the majority (75.7%) of Tigard's population (see Figure 13). Hispanic residents (of any race), Asian residents, and residents of two or more races constitute the next most common races and ethnicities, comprising 10.7%, 7.1%, and 3.8% of the city's population, respectively. White residents make up a higher proportion of Tigard's population than that of Washington County and the Portland-Vancouver-Hillsboro metropolitan area, while Hispanic and Black residents comprise lower percentages of the population in Tigard than in the county, region, and state. 20 HOUSING NEEDS ANALYSIS& HOUSING MARKET ANALYSIS I City of Tigard Exhibit A Figure 13: Percent of Population by Race and Ethnicity, City of Tigard, Washington County, and Portland-Vancouver-Hillsboro MSA, and state of Oregon, 2014-2018 t00%, • _ U ._ c 9 0% 11111,,,,,LI VBil. iri 80w 11].7% n B9r; U Ili_... Er >. 10% i -13 c Race/Ethnicity *White Mona +. 60% t lspanici Latino Of Any mein5 II Asian alone 5 Two or raeft �' *aka or Atrlcan American Mone EL Nalliii f4i waiian/Moe Pot..lsfanaor aian &NMI other race Mane +� +9 7n sAmeriten iatileti/Arealri Nnthre Mond 6 CD U it TO% 0 7 ..- 20% en3 U i0 City of Wa+=iringtan PCIrtland Orcgr,n TI.Elard County MSA i„ :r ail,. kxi E+)Oa,.1L.. MA 20Th Tigard's population increased by an estimated 10.8% between the 2006-2010 and 2014-2018 American Community survey five-year estimates (see Figure 14). Population growth has been driven by increases in the numbers of white residents (an increase of 3,981 residents), Asian residents (742), and residents of two or more races (520). The populations of residents of some other race and American Indian and Alaska Native residents grew at the highest rates (384.6% and 184.7%), although their shares of the city's population remain small. The populations of Hispanic and Latino residents (of any race) and Native Hawaiian and other Pacific Islander residents declined during the time period, both in numbers and as shares of the city's total population. City of Tigard 1 HOUSING NEEDS ANALYSIS&HOUSING MARKET ANALYSIS 21 Exhibit A Figure 14: Population by Race and Ethnicity, City of Tigard, 2006-2010 and 2014-2018 50,000 45,000 5,622 40,000 5.972 35,000 vacs/Ethnicity White alone 0 , i�lisf�an1 or Latino fol.arty race) Qf]{3(1 Asian alone Two or more races a .25,00 P Black or African American alone a. Native HaMrailarrr'0thar Pac.wander alone some ether nice Mona American Indian Alaska Native alone 20 000, 39.617 15,{100 10.000 5,000 0 2010 2018 saur_• P.71, n.r 111.n•ItV10Y SufY., Yt2r• Language The majority of Tigard residents aged five years and over (81.5%) speak only English at home, while smaller percentages speak Spanish (7.5%), Asian/Pacific island languages (5.9%), other Indo-European languages (3.9%),and other languages (1.2%) (see Figure 15). Residents of Tigard are more likely to speak languages other than English at home (18.5%) than those living in the state of Oregon as a whole (15.3%), but less likely than residents of Washington County as a whole, 24.8% of whom speak a language other than English at home. 22 HOUSING NEEDS ANALYSIS& HOUSING MARKET ANALYSIS 1 City of Tigard Exhibit A Figure 15: Percent of Population by Language Spoken at Home (Population 5 Years and Over), City of Tigard, Washington County, Portland-Vancouver-Hillsboro MSA, and state of Oregon, 2014-2018 01. 1003 Vim= G 90% `.1.9% 6.75 s. 80% .10C C! 70% 4- 0.. • 60% 0 ,� 50% 0 c 40% 81.5" 81.8% 84,69e 75.3% a 30% a 20% E▪ 10% 0% 1111 City of Tigard Washington Portland MSA Oregon County Languages Spoken at Home (Population aged 5 years and over) English Only Spanish is Asian and Pacific Island Languages Other Indo-European Languages ..,, r,•� �,;, -.,Y Other Languages r An estimated 811 households in Tigard have limited English proficiency (3.9% of all households in Tigard) (see City of Tigard HOUSING NEEDS ANALYSIS& HOUSING MARKET ANALYSIS 23 Exhibit A Figure 16). An estimated 343 of these households with limited English proficiency (1.6% of all households) speak Spanish, and an estimated 286 of the households speak Asian and Pacific island languages (1.4% of all households). The percentage of households with limited English proficiency in Tigard (3.9%) is higher than that of both the Portland-Vancouver-Hillsboro metropolitan area (3.2%) and the state of Oregon (2.6%), and slightly lower than that of Washington County (4.0%). 24 HOUSING NEEDS ANALYSIS&HOUSING MARKET ANALYSIS I City of Tigard Exhibit A Figure 16: Percent Limited English-Speaking Households, City of Tigard, Portland-Vancouver- Hillsboro MSA, and state of Oregon, 2014-2018 tit G 1CiS-6 1111 3% ern �;r:4tib ,F. 0-6% 0 0.1% 4.4 ao 2% vt111111 1.1% O O!uv 16% 1.7% 1.3% IA% I 0% City of Tigard Washington Portland MSA Oregon Counter Languages Spoken in Limited English-Speaking Households Spanish a Asian and Pacific Island Languages Other Indo-European Languages rvcr Other Languages w Place of Birth An estimated 7,188 Tigard residents (13.7%of all residents) are foreign-born. The most common places of birth for foreign-born residents in the city are Mexico (1,596 residents), Vietnam (951), the Philippines (448), Korea (441), Canada (259), China (excluding Hong Kong) (253), India (246), or Iran (207). By region, the highest percentages of foreign-born residents in the city were born in Central America (35.4%), south eastern Asia (17.9%), eastern Asia (9.9%), and eastern Europe (7.3%). Relative to the state of Oregon as a whole, lower percentages of foreign-born residents in the city, county, and region, were born in Central America. Residents born in south eastern Asia, South America, northern America, northern Europe, Northern Africa, and Oceania make up larger percentages of the foreign-born population in Tigard than in the county, region,and state. City of Tigard HOUSING NEEDS ANALYSIS& HOUSING MARKET ANALYSIS 25 Exhibit A Income Relative to households in the region and state, those in the city of Tigard and Washington County tend to have higher incomes (see Figure 17). More than one third of households in both Tigard (36.5%) and Washington County (37.5%) earn $100,000 or more per year, higher proportions than in the Portland-Vancouver-Hillsboro metropolitan area (33.3%) and the state of Oregon (26.0%).As estimated 22.5%of households in Tigard and 19.8%in Washington County earn $35,000 or less, lower proportions than in the region (23.5%) and state (29.4%). Although a lower proportion than in region and state, significant shares of households in the city (10.2%) and county (9.0%) earn $20,000 or less. Figure 17: Population by Income Group, City of Tigard, Washington County, Portland- Vancouver-Hillsboro MSA, and state of Oregon, 2014-2018 IIi l00% 0 o E 90% 17.x` 'l 17.6% )9.1% -0 700,5hi 0 t 0 4; 60 139% Household Income 0m$9,999 or Lass 510,000 To S20,00€0 C? 5C% 18.4% $24,000 To'$38,000 Z 335,000 To$49,939 17796 $50,000 To$74,999 y 40% Mi$75,000 To$99,999 w 13.0% smmor0Oo h$149,999 a �'#15Q,000 Or Moro • 30% IIII MI in Z 20%E 1+x.4'36 12.4% 11.895 107% 10% �I iriall City of Washington Portland Oregon Tigard County MSA tt S. itlmu+tlty I- Y t•n.at.: Because higher percentages of households in Tigard and Washington County fall in the upper income categories, the median household incomes in these areas ($75,795 and $78,010, respectively) are higher than those of both the Portland-Vancouver-Hillsboro metropolitan area and the state ($70,724 and $59,393, respectively, see Figure 18). 26 HOUSING NEEDS ANALYSIS& HOUSING MARKET ANALYSIS I City of Tigard Exhibit A Figure 18: Median Household Income, City of Tigard, Washington County, Portland- Vancouver-Hillsboro MSA, and state of Oregon, 2014-2018 $80,000 $78,010 $75.795 $70,724 570,0€0 $60,000 $,53.393 '0 55%000 0 co $40,000 0 1.7 $30,000 $20 000 610,000 50 City of Tigard Washington Portland MSA Oregon County Median Household intorno r' 1C.urPa..7sr»ir.r,y;tr.f;,IninVenSr 559,393 401W$78,0l0 3urrwy 4 Mo,kr hrlm„,u, oa.a 201H An estimated 53.1%of all households in Tigard have incomes greater than the HUD Area Median Family Income (HAMFI),while the other 46.9%of households have incomes below this level (see Figure 19). Renter households in the city tend to have lower incomes than owner households, indicating that they are more likely to experience housing cost burdens. An estimated 37.7% of renter households have incomes at or below 50% HAMFI, and 25.0% have incomes between 50% and 80% HAMFI. In contrast,just 9.7% of owner households have incomes at or below 50% HAMFI, and 10.7% have incomes between 50% and 80% HAMFI. City of Tigard HOUSING NEEDS ANALYSIS& HOUSING MARKET ANALYSIS 27 Exhibit A Figure 19: Percentages of Owner and Rental Households by Percent HUD Area Median Family Income, City of Tigard, 2013-2017 m 1O0 E 0 Li sa% ,s Ct 70% a a sa% m a 30% 16.4% s 20% - . 10 7% IEEE"0% All Households Owner Households Renter Households Household Income Household income =30%HAMFE Household Income>30%to rt-50%HAMFI 1-100 chard Income>50%Us'c=80%1-1AMFI Household income>ED%to c_1O016 NAMFJ Household Income>100%HAMFI Most households in Tigard own their homes (12,270 households, or 60.1% of all households), while a lower proportion are renters (8,150 households, or 39.9%) (see Figure 20). Renters outnumber owners in the lower income categories, while homeowners are more likely to fall in the higher income categories and, in particular, to earn more than 100% HAMFI. Slightly more than four times as many owner households as renter households earn 100% HAMFI (8,730 and 2,115 households, respectively). Renter households earning less than 30% HAMFI, between 30% and 50% HAMFI, and between 50% and 80% HAMFI (1,445, 1,625, and 2,040 households, respectively) outnumber owners in those categories (525, 670, and 1,315 households, respectively). 28 HOUSING NEEDS ANALYSIS& HOUSING MARKET ANALYSIS I City of Tigard Exhibit A Figure 20: Numbers of Owner and Rental Households by Percent of HUD Area Median Family Income, City of Tigard, 2013-2017 20,000 18.000 18,000 0 14.000 Tz00Q p 10.000 1.955 la 8,000 111 z 6,00o 3 rrr. 4,000 2:040 4295 2.000 ).315 0 All Households, Owner Households Renter Households. HouSehoId Income Household Income<7.30%HAMFI Household Income>30%to<=50%HAMFI Household Income>5O%to 4=80%t4Al1Fl Household Insure>50%to<m100%HAMA n,Household income>100%HAMFI xr t. r, x . - :r,+4;,,, HUD's categorizations of households by income level in the previous graphs take into consideration differences in household size to reflect differences in living expenses by household size. Figure 21 shows the differences in income limits by family size for households to be classified as earning less than 30%, 50%, and 80% HAMFI in Washington County. Notably, households with more members may earn significantly more than smaller households and still be classified in the same income categories. For example,a family of six may earn up to$53,450 and be categorized as earning below 50% HAMFI, while a family of two would need to earn below $36,850 to be in that category. Similarly, a one-person household with an income of $50,000 would be considered just below 80% HAMFI, while a five-person household at that income level would fall just above 50% HAMFI. These income categories show that households at a wide range of income levels earn below 30%and up to 50% or 80% HAMFI. City of Tigard I HOUSING NEEDS ANALYSIS& HOUSING MARKET ANALYSIS 29 Exhibit A Figure 21: Income Limits by Household Size for Selected Percentages of HUD Area Median Family Income, Washington County, 2020 Household size =per D 1 .2=porsat 3=1.1ersaf 4-pens,tri 54pErsdn 6-person 7•pers0n i34rnarsi t1 $120,000 $110,000 o N $100,000 0 4 IN 8 til tri s71 to £ $510,000 a K? +m co 1- n, S$ ,000 IN PPI, U ' 69 w ti8 E. $70,001 r c. ap 0Gto ap ¶60:000 w err 0 QJ x}i in Li/ 0 IA AL Ii5 s• SS0,000 ter III 11 4F} ti 1 in g $10,€100 Z N1 0 CO 74 r in r1; • 30,000 IA hib4d r1 111cri 4 $10,000 Percent 14U0 Area Median Family income C , 140th , J i, Economic Conditions and Trends Current Workforce and Employment Trends An estimated 46,804 jobs are based in the city of Tigard. Jobs in the sectors of retail trade; administration/support, waste management, and remediation; construction; finance and insurance; professional, scientific, and technical services; and accommodation and food services make up more than two thirds of these jobs (66.9%, or an estimated 31,323 jobs) (see Figure 22). In addition to those top sectors, the healthcare and social assistance, wholesale trade, manufacturing, and educational services sectors each provide between 1,800 and 3,000 jobs in the city (see Figure 22). Of the 46,804 jobs located in Tigard, an estimated 43,960 (93.9%) are workers' primary jobs,' indicating that some individuals working in the city hold multiple jobs. 'A primary job is the highest paying job for an individual worker for the year.The count of primary jobs is the same as the count of workers, 30 HOUSING NEEDS ANALYSIS& HOUSING MARKET ANALYSIS I City of Tigard Exhibit A Figure 22: Number of Jobs by NAICS Industry Sector (All Jobs); City of Tigard, 2017 Petah Trade 1,b53 Admin./Support Waste Management,h RTemec latt n 7713.3 Constr ucflIn 4,718 Fltrance and insurance d7ga Professional,Scientific,and Technical Services 4.177 Atcommod tion and Food Services 3,OWh Health kart?and Sacral Assistance-79.47 Wholesale Trade-2.62i ManuTscturing 7Pi Educational Services 1.8713 lniermallon iMIl T.a3g 0tiler Services texct Public Administration}I=135? hsanagernent of Companies and Enterprises IIS tU45 Real Estate and Rental and Leasing R77 Public Administration 49 Tramportallonand Warehousing •i!4 Arts,Entertainment,ands Recreation 39S Utliitios G5 isearicultute,Forestry,Fishing hod Hunting 41ii Mining Quarrying,and Oil ano Gas Extractrpn 2 0 2_000 4,000 6,000 8,000 Number of Jobs .N, 2 While jobs in retail trade made up a high proportion of all jobs in the city in 2017, the share has been declining over time. Jobs in retail trade declined as a percentage of all jobs from 18.6% in 2002 to 16.4% in 2017. During the same period, jobs in administration and support, waste management, and remediation; construction; and healthcare and social assistance made up increasing proportions of jobs in the city (see Figure 23). The professional, scientific, and technical services and management of companies and enterprises sectors also increased as shares of the city's jobs. City of Tigard HOUSING NEEDS ANALYSIS& HOUSING MARKET ANALYSIS 31 Exhibit A Figure 23: Jobs Located in the City of Tigard by NAICS Industry Sector, 2002, 2010, and 2017 (All Jobs) NM 100% 90% .t:}'n. ` 3.6% 3.6 46% 4.0% 80% 57% 4 4% industry Sector ki Retail Trade oi $5 , - � Administration,Waste Management,Remediation Construction __ 70% 8.5% 6.3% 0 Finance and insurance a 6.9% ■Professional;Scientific,and Technical'Services 4.8% f.b ■Accommodationomodation and Food Services 64% 5 pry Health Care and Social Assistance C 639 ■Wholesale Trade 0 •Manufacturing ■Educational Services a 50% 7.5% Information co �% ■Other Services(excluding Public Administration) i1 3% Management of Companies and Enterprises 40% 4004' G Real Estate and Rental!and Leasing 3 10.196 a Public Administration 6196 Trans{ rtatlon and Warehousing E 34 % 7'7915 Arts,Entertainment,and Recreation U it le Utilities 9.6% 12.6% 1 15 e..). Agriculture,Forestry.fishing and Hunting 20% ! Mining,Quarrying,and Oil and Gas Extraction T .., 10% 19.6% 17.6911 0% 1 - 2002 2010 2017 , . znca .q.I iuil While jobs in retail trade, administration, and construction have represented the largest shares of jobs based in Tigard, the city's residents have tended to be employed in a different set of sectors (see Figure 24). By 2010, healthcare and social assistance and retail trade had overtaken manufacturing as residents' top sources of employment, and the healthcare sector continued to grow as a share of resident employment through 2017. Retail trade continues to be the second most common employment sector for Tigard residents. From 2002 to 2017, healthcare and social assistance; management of companies and enterprises; accommodation and food services; and professional, scientific, and technical services saw the greatest increases as shares of jobs held by Tigard residents (3.6, 1.6, 1.4, and 1.3 percentage point increases, respectively), while manufacturing, wholesale trade, and finance and insurance, saw the greatest declines (2.7, 1.6, and 1.5 percentage point declines, respectively). Other industry sectors have remained relatively constant as shares of total jobs held by Tigard residents, each increasing or declining as shares of jobs held by residents by less than 1 percentage point. 32 HOUSING NEEDS ANALYSIS&HOUSING MARKET ANALYSIS I City of Tigard Exhibit A The differences in industry sectors of jobs located in the city and jobs held by the city's residents indicate high levels of commuting into and out of the city by workers and residents to access employment. Figure 24:Jobs Held by Tigard Residents by NAICS Industry Sector, 2002, 2010, and 2017 (All Jobs) 100% IMMO 90% 3.696 " MEM IMEM 8Q% I x.096 industry Sector in 4,9% 4.0'. 4,9% Health Care and Social Assistance 0 I 5.1m, 4 9% I Retail Trade *, 70% , -6.4% •Manufacturing ea 6,19 5A% ip Educational Services 15 7.05'6 I■Accommodation and Food Services 60% 6,3% 7.4% f Professional,Scientific,and Technical Services c 7A% is Administration.Waste Management,Remediation IP i 'iF - :� •'Wholesale Trade M.Finance and insurance Q 5(7°a 6 3% Construction 0 • 7.7`x, 3% Management of Companies and Enterprises 5 MI Other Services(excluding Public Administration'i ism 40% _ - --- * Public Administration 9 4% :, ,.,i. information E Transportation And warehousing = 300 Arts,.Entertainment,and Recreation Li if.)Mit R Real Estate and Rental and Leasing Agriculture,Forestry.Fishing and Hunting M Utilities 20% Mining,Quarrying,.and Oil and Gas Extraction 11,0% 10.7% 10% a9% 11.8% 123% 0% 2002 2010 2017 4 ,. , ti,rK., I aui: City of Tigard 1 HOUSING NEEDS ANALYSIS& HOUSING MARKET ANALYSIS 33 Exhibit A Commuting Patterns While an estimated 46,804 jobs are located within the city of Tigard,just 3,788 residents both live and work in the city (8.1% of all workers employed in Tigard and 14.0% of all workers living in the city). An estimated 43,016 of the city's jobs (91.9% of jobs based in Tigard) are held by workers who are employed in Tigard but live outside of the city.At the same time, an estimated 23,311 of the 27,099 jobs held by Tigard residents (86.0% of jobs held by residents) are located outside of the city (see Figure 25). Figure 25: Commuting Patterns of Resident and Non-Resident Workers, City of Tigard, 2017 (All Jobs) 45,000 40,000 35.000 30,000 0 U Employed In Tigard but Cluing Outside 25,000 Living in Tigard but Employed Outside o ■Living brit!Employed In Tigard 20.000 15,000 23,311 10,000 5,000 0 Living in Working in Tigard Tigard While a high proportion of working residents hold jobs based outside of the city, most workers living in Tigard have commutes of 10 miles or less (17,729 workers or 69.7% of all workers). An estimated 21.7% of workers living in Tigard commute 10 to 24 miles,and 8.7% commute 25 miles or more. Commute distances vary only slightly by workers' wage levels. Workers with lower wages are slightly more likely than higher-wage workers to commute more than 25 miles for their jobs 34 HOUSING NEEDS ANALYSIS&HOUSING MARKET ANALYSIS I City of Tigard Exhibit A (10.0% of workers with monthly wages up to $1,250, 8.9% of workers with monthly wages of $1,251 to$3,333, and 8.2% of workers with wages $3,333 and above). Workers in different wage categories are about equally likely to commute less than 10 miles to work (69.4% of workers with monthly wages up to $1,250, and 69.7%of workers with monthly wages of$1,251 to $3,333 or$3,333 and above). Figure 26: Distance Traveled to Work by Wage, City of Tigard Residents (for Primary Jobs), 2017 14,400 13.00a 111111 12,000 _ 1'4000 3,050 1%000 4,5 w 9,004 8,0000 o 7,000 1,703+ 3 5,000 521> 41,000 1- .P 5.044 757 2,000 1000 a Workers with Workers with Workers with Monthly Wage Lip Monthly Wage Monthly Wage to$1,250 $1,251 to$3,333 $3,333 and Above Distance Traveled to Work c Less than 10 miles 25 to 54 miles 10 to 24 mkt € Greater that 50 miles a 5 Employment Projections Total non-farm employment in the Portland Tri-County region (Clackamas, Multnomah, and Washington Counties) is projected to grow from 1,068,100 to 1,181,300 from 2019 to 2029, an increase of 113,200 jobs.The sectors of health care and social assistance (143,600 jobs projected in 2029), manufacturing (111,800 jobs), local government (100,200 jobs), accommodation and food services (98,800 jobs), retail trade (97,200 jobs), and professional and technical services (80,900 jobs) are projected to continue providing the most jobs in the region (53.5% of all jobs in 2029 among those sectors combined). The sectors projected to add the most jobs by 2029 include health care and social assistance (21,400 jobs), professional and technical services (13,600 jobs), and accommodation and food City of Tigard I HOUSING NEEDS ANALYSIS& HOUSING MARKET ANALYSIS 35 Exhibit A services (10,300 jobs). The management of companies and enterprises, professional and technical services,and health care and social assistance sectors are projected to have the fastest average annual growth rates during the time period (21.3%, 20.2%, and 17.5%, respectively,from 2019 to 2029). Finance and insurance is the only sector expected to decline slightly in number of jobs over the time period (a projected decrease of 0.3% or a loss of 100 jobs). Federal government, retail trade, and manufacturing are the sectors projected to add jobs at the slowest rates (1.4%, 3.9%, and 5.6%, respectively, from 2019 to 2029). Figure 27: Projected Employment, Portland Tri-County Area, 2019 and 2029 t.20c,00 1,100,000 L000,0001111 11 H s04,000 , y , Employment Sector Health care and social assistance .12 "'',`, 52.100 , Manufacturing 0 my .1,t u:I,, e.Local-government 7 acia.©aci 63300 0 ABU)ABJ 0 Accommodation and food services, 6190 Retail trade a)• 700,000 57 00061906 and technical SnrvIce9 E J UJ Self-employment a Administrative and waste services Z 600,000 !Alm Bo,900 Construction er50(.1Wholesale trade ▪ s00.000 9'!2Rlil •!Transportation,warehousing,and unlltiee el; R Management of companies/enterprises 93.600 . Other services E• 400,000 '3R,000 es Finance and insurance U 81:1500 ■Real estate and rental and teasing III Private educational services 300,000 94,E;03100200II Information ■AM,entertainment.and recreation a Federal government 200,000 K1S5K)Il 111.80,1 II;Natural resources and mining State government 100,000 WAX, 143.600 0 2019 2029 - 36 HOUSING NEEDS ANALYSIS& HOUSING MARKET ANALYSIS I City of 7igard Exhibit A Chapter 4 : Housing 1 1 , . , , ! 1 l.it„. i� Exhibit A This section of the HNA examines housing need from two perspectives: first, existing housing needed by Tigard households who face one or more housing problems such as affordability or overcrowding: and second, projected housing need over the next 20 years. Existing Housing Needs Housing cost and condition are key components of housing need. Housing barriers may exist in a jurisdiction when some groups have greater difficulty accessing housing in good condition and that they can afford. To assess affordability and other types of housing needs, the U.S. Department of Housing and Urban Development (HUD) defines four housing problems: 1. A household is cost burdened if monthly housing costs (including mortgage payments, property taxes, insurance, and utilities for owners and rent and utilities for renters) exceed 30% of monthly income. 2. A household is overcrowded if there is more than one person per room,not including kitchen or bathrooms. 3. A housing unit lacks complete kitchen facilities if it lacks one or more of the following: cooking facilities, a refrigerator, or a sink with piped water. 4. A housing unit lacks complete plumbing facilities if it lacks one or more of the following: hot and cold piped water, a flush toilet, or a bathtub or shower. HUD also defines four severe housing problems, including a severe cost burden (more than 50% of monthly housing income is spent on housing costs) and severe overcrowding (more than 1.5 people per room, not including kitchens or bathrooms). Additionally, HUD also considers lack of complete kitchen facilities (as described above) and lack of complete plumbing facilities (also as described above) as severe housing problems. To assess housing need,HUD receives a special tabulation of data from the U. S. Census Bureau's American Community Survey that is largely not available through standard Census products. This data, known as Comprehensive Housing Affordability Strategy (CHAS) data, counts the number of households that fit certain combinations of HUD-specified criteria, such as housing needs by race and ethnicity. In 2017 (the most recent year for which CHAS estimates are available), Tigard's median income was $70,120.2 The median family income (MFI) for Washington County in that year was even higher - $74,700.3 Using median family income, the table below uses CHAS data to show the rate of housing problems based on household income. In Tigard, nearly three-fourths (74%) of all homeowners earning less than 30% HAMFI have one of the above-mentioned housing problems. These figures rise to 84% for renters at this income 2 2013-2017 ACS 5-Year Estimates,Table S1903 3 HUD.gov. "FY 2017 Income Limits Summary" 38 HOUSING NEEDS ANALYSIS& HOUSING MARKET ANALYSIS I City of Tigard Exhibit A level. Households earning between 31%-60% HAMFI experience similar rates of housing problems, which affect 71% of homeowners and 88% of renters. The rate at which housing problems occur drops significantly as incomes rise. For households earning at least the city's median income, no more than one-third (33%) of homeowners and 28% of renters experience housing problems. The city's Comprehensive Plan notes the need for less expensive ownership units and rental units, particularly for households spending more than 30%of their gross income on housing costs.4 Targeted housing assistance, affordable housing preservation and other resources are necessary to alleviate housing problems faced by the city's lowest income residents. Furthermore, pandemic-related dips in regional employment most likely will exacerbate housing problems, particularly cost burdens, for households earning less than 100% HAMFI. Table 3: Estimated Housing Needs by Income Group in Tigard, 2017 OWNER HOUSEHOLDS RENTER HOUSEHOLDS TOTAL HOUSEHOLDS HOUSEHOLD WITH TOTAL SHARE WITH TOTAL SriARE WITH TOTAL SHARE INCOME NEEDS WITH NEEDS WITH NEEDS WITH NEEDS NEEDS NEEDS 0-30%AMI 390 525 74% 1,220 1,450 84% 1,610 1,975 82% 31-60%AMI 720 1,015 71% 2,240 2,540 88% 2,960 3,555 83% 61-80%AMI 560 965 58% 570 1,125 51% 1,130 2,090 54% 81-100%AMI 435 1,035 42% 195 925 21% 630 1,960 32% 101-120%AMI 335 1,030 33% 195 695 28% 530 1,725 31% 120-140%AMI 105 945 11% 60 435 14% 165 1,380 12% Note:Area median income("AMI')is calculated by the U.S. Department of Housing and Urban Development (HUD) by household size. Data Source:2013-2017 Comprehensive Housing Affordability Strategy data,Table 11, Retrieved from https://www.huduser.gov/portal/datasets/cp.html Table 4 breaks housing needs down by type, showing that, overwhelmingly, the most common issue is affordability (i.e., paying over 30%of income for housing). About 2,175 owners and 4,155 renters in Tigard spend above this level and,of those, 880 owners and 2,070 renters spend more than one-half of income on housing. 4 City of Tigard Comprehensive Plan, p.10-5 City of Tigard I HOUSING NEEDS ANALYSIS& HOUSING MARKET ANALYSIS 39 Exhibit A Table 4: Estimated Housing Needs by Type in Tigard, 2017 OWNER HOUSEHOLDS RENTER HOUSEHOLDS TOTAL HOUSEHOLDS Householder WITH TOTAL SHARE WITH TOTAL SHARE WITH TOTAL SHARE Race and NEEDS WITH NEEDS WITH NEEDS WITH NEEDS NEEDS NEEDS Ethnicity Non-Hispanic or Non-Latino White 2,270 10,500 21.6% 3,150 5,955 52.9% 5,420 16,455 32.9% Black or African 14 68 20.6% 65 85 76.5% 79 153 51.6% American Asian or Pacific 215 935 23.0% 245 425 57.6% 460 1,360 33.8% Islander Native American 0 14 0.0% 14 80 18.8% 14 94 14.9% or Alaska Native Other or 49 269 18.2% 280 405 69.1% 329 674 48.8% Multiple Races Hispanic or 175 479 36.5% 824 1,204 68.4% 999 1,683 59.4% Latino OWNERS RENTERS TOTAL HOUSE- SHARE OF HOUSE- SHARE OF HOUSE- SHARE OF HOLDS TOTAL HOLDS TOTAL HOLDS TOTAL Cost burden 2,715 22.1% 4,155 51.0% 6,870 33.6% Severe cost burden 880 7.2% 2,070 25.4% 2,950 14.4% Overcrowding 45 0.4% 580 7.1% 625 3.1% Severe overcrowding 10 0.1% 250 3.1% 260 1.3% Lacking complete facilities 15 0.1% 325 4.0% 340 1.7% Total households with needs 2,723 22 2% 4,578 56.1% 7,301 35.8% Total households 12,265 100.0% 8,154 100.0% 20,419 100 0% Note: Households with a severe cost burden are a subset of households with a cost burden. Severely overcrowded households are a subset of overcrowded households.The number of total needs (i.e.,sum of cost burdens,overcrowding, and lack of facilities)is greater than the total number of households with needs because some households have more than one of the housing problems. Data Source:2013-2017 Comprehensive Housing Affordability Strategy data,Tables 1, 3, 8, and 10, Retrieved from https://www.huduser.gov/portal/datasets/cp.html HUD's Comprehensive Housing Affordability Strategy data also provides information about housing needs by householder race and ethnicity. 40 HOUSING NEEDS ANALYSIS& HOUSING MARKET ANALYSIS 1 City of Tigard Table 5 shows data for Tigard as of 2017 (the most recent estimates available), which reveals disparity in prevalence of housing needs. For homeowners,about 22.2% of households have one OWNER HOUSEHOLDS RENTER HOUSEHOLDS TOTAL HOUSEHOLDS HOUSEHOLDER RACE AND WITH TOTAL SHARE WITH TOTAL SHARE WITH TOTAL SHARE ETHNICITY NEEDS WITH NEEDS WITH NEEDS WITH NEEDS NEEDS NEEDS Non-Hispanic or Non-Latino White 2,270 10,500 21.6% 3,150 5,955 52.9% 5,420 16,455 32.9% Black or African 14 68 20.6% 65 85 76.5% 79 153 51.6% American Asian or Pacific 215 935 23.0% 245 425 57.6% 460 1,360 33.8% Islander Native American 0 14 0.0% 14 80 18.8% 14 94 14.9% or Alaska Native Other or 49 269 18.2% 280 405 69.1% 329 674 48.8% Multiple Races Hispanic or 175 479 36.5% 824 1,204 68.4% 999 1,683 59.4% Latino of the four housing needs (cost burdens,overcrowding, or lack of complete plumbing or kitchen facilities). For most groups, need levels range from around 18-23%. However, Hispanic or Latino homeowners are considerably more likely to have a housing need (175 households or 36.5% of the total). For rental housing, disparities are more pronounced. Overall, about one-half of renters have a housing need (56.1%) Looking at renters by race and ethnicity, two groups have housing needs rates similar to the city average - white households (52.9%) and Asian or Pacific Islander households (57.6%). Three groups have elevated need levels. Most notably, 76.5% of Black or African American renters have one or more housing needs. Hispanic or Latino renters and renters of other or multiple races also have higher incidence of housing needs (about 68-69%). Further, Black or African American, Hispanic or Latino, and other or multiple race households are also significantly less likely to own their homes than white and Asian households. According to CHAS data, homeownership rates for the former groups range from 28.5% for Hispanic or Latino households to 44.4% for Black or African American households. In contrast, about two- thirds of white and Asian households own their homes (63.8% and 68.8%, respectively). Table 5: Estimated Housing Needs by Race and Ethnicity, 2017 Data Source: 2013-2017 Comprehensive Housing Affordability Strategy data,Table 1, Retrieved from https://www.huduser.gov/portal/datasets/cp.html City of Tigard I HOUSING NEEDS ANALYSIS& HOUSING MARKET ANALYSIS 41 Exhibit A Data regarding housing needs by race and ethnicity exemplify the intersection between housing affordability and equity in Tigard. Expanded affordable housing options, including opportunities for homeownership, are needed for the city to develop as a community for all. Additionally, information about affordable housing and homeownership options must be communicated to all residents and barriers that impact housing access for Black, Latino, and other households of color addressed. Housing Need Projections This section focuses on housing need over the next 20 years based on household growth forecasts in the city of Tigard and adjacent areas in urban unincorporated Washington County. While the previous data discussed needs related to affordability and other housing issues, here we turn to the need for development of new housing units through 2040. Projections based on growth rely on Metro's 2045 Household Forecasts, which were adjusted by the City of Tigard to more accurately account for recently-built, permitted, or anticipated development. Table 24 shows household growth forecasts for the Tigard Planning Area, including for the city and for adjacent TAZs in unincorporated Washington County. As shown, adjusted household forecasts indicate an additional 15,032 households living in the area over the next 20 years, or an average annual growth rate of 2.8%. Table 6: 2040 Household Growth Forecasts for the Tigard Planning Area UNINCORPORATED TIGARD CITY OF TIGARD WASHINGTON PLANNING AREA COUNTY2 Household Estimate 2020 21,617 6,077 27,694 Household Forecast 2040' 28,662 13,227 41,889 New Households(2020-2040) 7,045 7,150 14,195 1. Metro forecasts growth in Tigard from 21,617 households in 2020 to 30,423 households in 2045, for an average annual growth rate of 1.6%.Metro forecasts growth in unincorporated Washington County TAZs from 6,077 households in 2020 to 11,206 households in 2045,for an average annual growth rate of 3.4%.These average annual growth rates were used to forecast households in each area In 2040. 2. Includes TAZs 1003 and 1004 (River Terrace South and West),1140(Washington Square Regional Center),1005,1006,1011,1026,and 1034. Household growth in the Tigard Planning Area does not translate to demand for new housing units by a 1:1 ratio, as the market should include some share of vacant units to allow space for moves. Table 7 shows the number of housing units forecast to be needed in the City of Tigard and the Tigard Planning Area through 2040, assuming a 5% vacancy rate. Within the planning area, an estimated 14,942 new housing units would be needed based on household growth, or an annual average of 747 units per year. This figure includes 7,416 units based on household 42 HOUSING NEEDS ANALYSIS&HOUSING MARKET ANALYSIS I City of Tigard Exhibit A growth generated by the city of Tigard and 7,526 units based on household growth generated in unincorporated Washington County TAZs. Table 7: Housing Units Needed Based on Growth in the Tigard Planning Area, 2020 to 2040 CITY OF UNINCORPORATED TIGARD TIGARD WASHINGTON PLANNING AREA COUNTY3 New Households(2020-2040)1 7,045 7,150 14,195 Assumed Vacancy Rate 5% 5% 5% Housing Units Needed Based on Growth 7,416 7,526 14,942 (2020-2040) Average Annual Housing Units Needed 371 376 747 Based on Growth (2020-2040) 1. Uses"Adjusted Household Forecast 2040" 2. From Regional Housing Needs Analysis. National ratio of housing units to households as of 2018 data. 3. Includes TAZs 1003 and 1004 (River Terrace South and West),1140(Washington Square Regional Center),1005,1006,1011,1026,and 1034. In addition to housing need generated by population/household growth, ECONorthwest's Regional Housing Needs Analysis included two other generators of demand. The first, "underproduction," refers to existing housing deficits due to historic underproduction relative to the amount of housing needed to accommodate the current population. Underproduction has the effect of increasing prices, making it more difficult for lower income groups to find suitable housing. The second, "housing for people experiencing homelessness," indicates the number of units needed to house people experiencing homelessness who are not (and historically have not been) included in demand generated by population and household growth. The Regional Housing Needs Analysis estimates potential need for 2,445 new housing units in Tigard due to underproduction and 439 new housing units due to homelessness, based on an allocation of estimates at the regional level. While these figures are not included in the housing need estimates carried through the remainder of this report, they indicate that additional housing need may exist in Tigard and the metro Portland region beyond what is indicated by population growth alone. As Table 8 shows allocates projected housing need in the Tigard Planning Area by household income, according to the current income distribution in the City of Tigard. City of Tigard I HOUSING NEEDS ANALYSIS& HOUSING MARKET ANALYSIS 43 Exhibit A Table 8: Total Housing Units Needed by Income Category in the Tigard Planning Area, 2020 to 2040 INCOME LEVEL UNINCORPORATED TIGARD (MFI= MEDIAN FAMILY INCOME) CITY OF TIGARD WASHINGTON PLANNING SHARE COUNTY2 AREA 0-30%MFI 715 726 1,441 10% 30-50%MFI 833 846 1,679 11% 50-80%MFI 1,218 1,236 2,454 16% 80-120%MFI 1,338 1,358 2,696 18% Over 120%MFI 3,311 3,360 6,672 45% Total 7,416 7,526 14,942 100% Shares 50% 50% 100% -- 1. Based on the current income distribution in the city of Tigard from 2013-2017 CHAS data. In the metro Portland area,2020 MFI was$92,100.For a family of four,30%MFI was$27,650,50%MFI was$46,050, 80%MFI was$73,700,and 120%MFI was$110,520. 2. Includes TAZs 1003 and 1004 (River Terrace South and West),1140(Washington Square Regional Center), 1005,1006,1011,1026,and 1034. Housing need projections indicate that about one-quarter (21%) of new housing in the Tigard Planning Area (3,120 units) should be affordable to households with incomes at or below 50% of the median family income (or $46,050 for a family of four). About one-in-six units should be affordable to households with incomes from 50-80% MFI and another one-in-six to middle income households in the 80-120% MFI band. Housing need among higher income households (120% MFI+) makes up about 45% of projected demand. Note that some of the housing that fulfills need for units priced under 80% MFI may include market rate properties with demand- side subsidies, such as tenant-based rental assistance/Housing Choice Vouchers applied. The Housing Market Analysis that follows examines residential development trends in Tigard and the metro Portland area to segment project housing need by unit type and anticipated densities to compare with buildable land in Tigard. 44 HOUSING NEEDS ANALYSIS&HOUSING MARKET ANALYSIS I City of Tigard Exhibit A Chapter 5 : Housing Analysis 1 , ..„..„ . -Thav4...sammr, I 1110 .1. NIL ' ''''' -, .Nil, The Housing Market Analysis component of this report seeks to characterize the current for- sale and rental market in the city of Tigard and neighboring areas, with particular attention to affordable and "missing middle" housing types. For this project, "missing middle" housing refers to the forms of housing that exist between detached single-family homes on typical suburban lots and apartments within apartment buildings. These forms include cottage clusters, courtyard units, quads, rowhouses, and ADUs, which under Tigard's development code is inclusive of duplexes and triplexes. Beginning in 2013 with their previous Housing Needs Analysis, the City of Tigard explored these housing types through their "Housing Options" planning efforts. In 2018,the City adopted code amendments that legalized middle housing types in all residential zones. This component also considers the affordability of housing in Tigard, as well as the supply of publicly subsidized affordable housing in the city. As in the Housing Needs Analysis, we define "affordable housing" as housing in which total costs for ownership or rental do not exceed 30% of a household's income. Of particular interest to planners are affordable housing needs for low- and middle-income households and, most specifically, households with incomes under 80% of the area's median. We begin with a general overview of the city's housing supply before moving into discussion of development trends and middle and affordable housing. In addition to nationally and locally available data, this analysis also makes use of input collected through the public survey (discussed in Chapter 2) and interviews with affordable and market-rate housing developers operating in Tigard and metro Portland. Housing Supply Overview As of 2018, the city of Tigard has an estimated 21,754 housing units, with a total of 21,016 households. Since the year 2000, the number of households in Tigard grew by 27%, while the number of housing units increased at a slightly slower rate of 25%. Similar growth patterns occurred in Washington County and the Portland Metropolitan Statistical Area (MSA), where the number of households increased by 28-29% and the number of housing units increased by 27% and 24%, respectively, since 2000. Growth in the city, county, and MSA outpaced growth across the state. Note that in all four geographies, the ratio of households to number of housing units falls short of the 1.14 housing production ratio recommended in the Regional Housing Needs Analysis to account for vacancies/turnover, second homes, and seasonal or short-term rental housing. The market is tightest at the metro level, where there are only 1.02 housing units per household. In the city, county, and MSA, the ratio of housing units to households fell since 2000, indicating an underproduction of housing that often puts upward pressure on rents and sales prices. 46 HOUSING NEEDS ANALYSIS& HOUSING MARKET ANALYSIS I City of Tigard Exhibit A Table 9: Housing Units and Household Growth from 2000 to 2014-2018 2000 2014-2018 2000-2018 PERCENT CHANGE TOTAL HOUSE- TOTAL HOUSE- TOTAL HOUSE- UNITS HOLDS UNITS HOLDS UNITS HOLDS City of Tigard 17,369 16,507 21,754 21,016 25% 27% Washington County 178,913 169,162 226,355 216,507 27% 28% Portland MSA* 790,876 745,531 979,612 964,554 24% 29% State of Oregon 1,452,709 1,333,723 1,750,539 1,591,835 21% 19% *The Portland-Vancouver-Hillsboro, OR-WA Metropolitan Statistical Area (MSA) includes Clackamas, Columbia, Multnomah,Washington,and Yamhill Counties in Oregon and Clark and Skamania Counties in Washington. Data Sources:2014-2018 5-Year American Community Survey Tables B25001 and B25003; 2000 U.S.Census SF1 Tables H001 and H004 Tenure & Homeownership Looking at households by tenure (i.e., owners and renters), American Community Survey estimates show that 61% of Tigard residents are homeowners and 39% are renters. This ratio is nearly identical to those in both Washington County,the Portland MSA, and the state (see Table 10). In most geographies, tenure shares changed little since 2000. However, in Tigard, the homeownership rate increased by about 3 percentage points as the city grew. Table 10: Tenure by Households, 2000 and 2014-2018 2000 2014-2018 OWNER RENTER OWNER RENTER HOUSEHOLDS HOUSEHOLDS HOUSEHOLDS HOUSEHOLDS City of Tigard 58% 42% 61% 39% Washington County 61% 39% 61% 39% Portland MSA 63% 37% 62% 38% State of Oregon 64% 36% 62% 38% Data Sources: 2014-2018 5-Year American Community Survey Table B25003 Both for-sale and rental housing is important to provide affordable, varied options to meet the needs of existing and new households in Tigard. While homeownership allows the opportunity to build wealth, rental housing availability across neighborhoods ensures that a variety of households have access to opportunity-rich areas. Homeownership trends have changed in recent years because of significant events in the housing market and labor force. The homeownership rate for Millennia's (the generation born between 1981 and 1997) is 8 percentage points lower than the two previous generations, controlling for age. This discrepancy can be City of Tigard I HOUSING NEEDS ANALYSIS& HOUSING MARKET ANALYSIS 47 Exhibit A attributed to a multitude of factors ranging from preference to urban areas, cost of education and associated debt, changes in marriage and childbearing patterns, rising housing costs, and the current supply of affordable houses.5 Input received through the Housing Survey conducted as part of this Housing Market Analysis indicated a strong preference for homeownership among participants (93%would prefer to own their homes and 80% of participants are current homeowners). However, data indicates that homeownership levels vary considerably by race, ethnicity, and income. As Table 11 shows, homeownership rates are directly tied to household income in Tigard and all comparison geographies. In the city, they range from 26% for households with incomes under $25,000 to 89% for households with incomes over $150,000. Note too, that retired seniors who own their homes outright (i.e., without a mortgage) are likely included among some of the lower income groups. Table 5 in Chapter 4 provides data to estimate homeownership rates by race and ethnicity. In Tigard, about 64% of white households and 69% of Asian households own their homes, compared to 29% of Hispanic or Latino households and 44% of Black households. Taken together, income, race/ethnicity, and tenure data indicates the importance of affordable homeownership programs that are inclusive and affirmatively marketed to all current and prospective Tigard households. Table 11: Homeownership Rate by Household Income, 2014-2018 HOMEOWNERSHIP RATE CITY OF WASHINGTON PORTLAND STATE OF TIGARD COUNTY MSA OREGON Household Income Under$25,000 26% 33% 34% 38% $25,000 to$49,999 47% 43% 47% 52% $50,000 to$74,999 58% 53% 58% 62% $75,000 to$99,999 68% 63% 68% 71% $100,000 to$149,999 79% 76% 79% 80% $150,000 or more 89% 89% 89% 89% Data Sources:2014-2018 5-Year American Community Survey Table B25118 5 Choi, Jung et al. "Millennial Homeownership:Why Is It So Low. and How Can We Increase It?" The Urban Institute. February 2000. https://www.urban.org/sites/default/files/publication/98729/millennial_homeownership_G.pdf 48 HOUSING NEEDS ANALYSIS&HOUSING MARKET ANALYSIS I City of Tigard Exhibit A Vacancy Tigard's vacancy data indicates that despite ongoing development since 2000, housing supply in the city has not matched demand. Overall, only 3.4% of all Tigard housing is vacant, less than the also low 4-5%vacancy rate in Washington County and the MSA, and considerably less than the state's 9.1% vacancy rate. Table 12: Vacancy Rate, 2014-2018 VACANT UNITS TOTAL HOUSING UNITS NUMBER VACANCY RATE City of Tigard 21,754 738 3.4% Washington County 226,355 9,848 4.4% Portland MSA 979,612 53,981 5.5% State of Oregon 1,750,539 158,704 9.1% Data Sources: 2014-2018 5-Year American Community Survey Table B25002 For buyers seeking a home for purchase, estimates indicate that the vacancy rate is 0.0%, with only a slightly greater share of for-rent units in the city (2.8%). Because American Community Survey data is based on a sample and not a 100% count like the decennial census, it is subject to sampling error, which means that there may exist some vacant, available for-sale units that were not captured in the data because their number was so low. Additionally, some units may be available for sale yet still occupied by current owners. Even in these cases, the conclusion can be drawn that there is a considerably limited supply of available for-sale units. Input from Community Advisory Committee members who have recently searched for housing in Tigard confirms this, and a Zillow search of units for sale as of February 2021 shows only about 40 units available. The city's vacancy rates represent a decline from 2010-2012, when the city had a surplus of approximately 270 ownership units and 631 rental units.6 At the county level, Washington County has a similarly tight for-sale market as Tigard (0.9% vacancy) and even less rental vacancy than the city (2.6% vacancy). 6 City of Tigard Comprehensive Plan, p.10-6 City of Tigard HOUSING NEEDS ANALYSIS& HOUSING MARKET ANALYSIS 49 Exhibit A Table 13: For-Sale and Rental Vacancy Rates, 2014-2018 OWNER HOUSING UNITS RENTAL HOUSING UNITS AVAILABLE TOTAL VACANCY AVAILABLE TOTAL VACANCY RATE RATE City of Tigard 0 12,742 0.0% 237 8,511 2.8% Washington County 1,244 133,603 0.9% 2,274 86,422 2.6% Portland MSA 6,431 583,700 1.1% 13,209 368,677 3.6% State of Oregon 14,549 1,000,072 1.5% 23,892 629,694 3.7% Data Sources:2014-2018 5-Year American Community Survey Tables DP04 Table 14 provides a breakdown of vacancy types to demonstrate the circumstances under which housing units are vacant. In Tigard, for every 100 vacant housing units, 32 are available for rent, 14 have been rented but not yet occupied, and 14 have been sold but not yet occupied. The remaining vacant units in the city are for occasional, seasonal, or recreational use (including second homes or short-term rentals) (17%) or are off the market for other reasons (23%) such as foreclosure or other legal matters, the extended absence of the occupant, or disrepair. Table 14: Status of Vacant Units, 2014-2018 STATUS OF VACANT UNITS VACANT SEASONAL HOUSING RENTED, SOLD, UNITS FOR NOT FOR NOT RECREATIONAL, OTHER RENT OCCUPIED SALE OCCUPIED OCCASIONAI USE City of Tigard 738 32% 14% 0% 14% 17% 23% Washington County 9,848 23% 11% 13% 9% 11% 33% Portland MSA 54,555 24% 6% 12% 7% 17% 33% State of Oregon 158,704 15% 4% 9% 4% 38% 28% Note:This table provides the breakdown of vacant units by the status or reason for vacancy. In Tigard,for example,there are an estimated 738 vacant units,of which 17%are for seasonal, recreational,or occasional use. "Other" vacancies may include foreclosures,homes being prepared for rent or sale, homes being repaired, homes being held for personal or legal reasons, homes whose occupant is on extended absence (such as on military assignment,out of the country, or in jail), and homes that have been abandoned or condemned. In response to Tigard's tight housing market, the City has made efforts to increase residential units. The 2020 Portland Economic Overview, released by Oregon's Employment Department, indicates that in 2019 Tigard had 10.4 residential building permits for every 1,000 residents -the 50 HOUSING NEEDS ANALYSIS& HOUSING MARKET ANALYSIS I City of Tigard Exhibit A fourth highest permitting rate of 19 cities in the Portland metropolitan area.'Approximately 45% of those residential building permits were for single family units.The remaining 55%of residential building permits were for multifamily housing. More accurate development data may indicate that more housing supply will soon become available for residents. Despite ongoing development, Tigard housing may be subject to a "seller's market" in which home prices rise due to low supply. In some cases, this may mean that current Tigard homeowners who may experience life changes,such as a change in family size, impaired physical mobility or other circumstance, may have to make accommodations inside their current housing units or move outside the city to find housing that they can afford that meets their needs. Housing Size, Type, and Age Tigard's existing housing stock offers a greater variety in the number of bedrooms per unit than the county, MSA,and state. More than one-third of the city's housing units have three-bedrooms (36%), while 27% have two-bedrooms, 23% have four or more bedrooms, and 14% have one- bedroom.Washington County offers slightly fewer two-bedroom units (25%) and one-bedroom units (12%), and the state offers fewer 4+ bedroom units (18%) than Tigard. With this variety, Tigard has a slightly greater capacity to house smaller families and single person households. The county, on the other hand, has a slightly greater housing stock to serve larger families. In the future, a variety of housing sizes that meet the needs of a diverse group of households will continue to be important in Tigard. CAC members emphasized the need for this variety, including smaller units that serve individuals or downsizing seniors and larger homes that may house multigenerational families. Table 15: Housing Units by Number of Bedrooms, 2014-2018 TOTAL NUMBER OF BEDROOMS HOUSING ONE OR FCL CR UNITS FEWER TWO THREE t_ City of Tigard 21,754 14% 27% 36% 23% Washington County 226,355 12% 25% 39% 24% Portland MSA 979,612 14% 25% 39% 22% State of Oregon 1,750,539 13% 27% 42% 18% Data Sources: 2014-2018 5-Year American Community Survey Table B25041 'State of Oregon Employment Department. (Feb 2020)"Portland Economic Overview." https://www.qualityinfo ora/documents/10182/79531/021920+- +Portia nd+Economic+Overview+PH RMA?version=1.0 City of Tigard HOUSING NEEDS ANALYSIS& HOUSING MARKET ANALYSIS 51 Exhibit A A key concern of this Housing Market Analysis is housing form/structure type. American Community Survey data reports on structure type as identified by survey respondents. Most recent data, from the 2014-2018 5-Year Survey, is provided in Figure 28 for occupied units by tenure. Like Tigard, 52%of housing units in both Washington County and the state of Oregon are single- family detached homes owned by a homeowner. Overall, homeownership occurs in all other housing types, such as townhomes, condos, and mobile homes, at rates like that of Tigard (9% in Washington County, 10% in the state). Tigard's greatest distinction is its larger share of single- family attached and multifamily units for rent than the state (33%city,26%state),and its smaller share of single-family detached units for rent than the state (6% city, 12% state). 52 HOUSING NEEDS ANALYSIS&HOUSING MARKET ANALYSIS I City of Tigard Exhibit A Figure 28: Occupied Housing Units by Structure Type, 2014-2018 100% - WWI 90% 1 80% 70% 60% 50% 40% 30% 20% 10% 0% City of Tigard Washington County State of Oregon ■1-Unit Detached, Owner-Occupied • 1-Unit Detached, Renter-Occupied 111-Unit Attached, Owner-Occupied 1-Unit Attached, Renter-Occupied ■ 2-4 Units, Owner-Occupied Mi 2-4 Units, Renter-Occupied ■5-19 Units, Owner-Occupied i 5-19 Units, Renter-Occupied ■20+ Units, Owner-Occupied ■20+ Units, Renter-Occupied ■ Mobile Homes, Owner-Occupied ■ Mobile Homes, Renter-Occupied Source: 2014-2018 5-Year American Community Survey Table B25032 City of Tigard I HOUSING NEEDS ANALYSIS& HOUSING MARKET ANALYSIS 53 Exhibit A When looking at the condition of the housing stock, the age of housing stock provides some indication about price and condition. In Tigard, the median age of the housing stock is approximately 36 years old,with the largest share of housing being built between 1970 and 1989 (44%), The second largest share of the city's housing was built between 1990 and 2009 (33%). Only housing across Washington County is newer, with 42% of the county's housing units being built between 1990 and 2009. Older housing stock tends to depreciate in quality and price over time and can thereby serve as more affordable housing stock in markets with adequate housing supply. Despite Tigard's slightly older housing stock, however, the city's low housing supply most likely increases the cost of older housing over time, rather than making it less expensive. Table 16: Housing Units by Year Structure Built, 2014-2018 TOTAL SHARE OF UNITS BY YEAR STRUCTURE BUILT MEDIAN HOUSING YEAR UNITS BEFORE 1950 TO 1970 TO 1990 TO SINCE 2010 STRUCTURE 1950 1969 1989 2009 BUILT City of Tigard 21,754 3% 15% 44% 33% 5% 1984 Washington County 226,355 5% 13% 35% 42% 5% 1988 State of Oregon 1,750,539 17% 17% 30% 31% 4% 1978 Data Sources:2014-2018 5-Year American Community Survey Table B25034 and B25035 Housing Costs A snapshot of Tigard's housing costs in 2018 indicates that of the 12,742 homeowners in the city, three-fourths have a mortgage on their home. The median Tigard homeowner with a mortgage spends $1,954 per month, compared to $635 for homeowners without a mortgage. Median owner costs are slightly lower Washington County,where homeowners with a mortgage spend $1,902 per month. Homeowner costs are significantly lower at the state level ($1,647 per month), highlighting the cost increases associated with Tigard's location in the Portland metropolitan area. As shown in Table 12, homeowner costs are nearly identical in the city and county. Homeowner costs are more likely to range between $1,500 and $2,500 in Tigard and Washington County, and more likely to range between $1,000 to $2,000 in other parts of the state. Renter costs in Tigard are generally lower than homeowner costs, with 28%of all renters paying between $1,000 and $1,249 monthly, 24% paying between $750 and $999 and 19% paying between $1,250 and $1,499. Renter costs in the city are slightly lower than renter costs across Washington County. In the county, slightly over one-quarter (26%) pay between $1,000 and $1,249 in rent. However, a significant number of county residents spend between $1,500 and $1,999 (22% of residents) or between $1,250 and $1,499 (21% of residents) on rent. Statewide, renters spend far less on rent than in either Tigard or Washington County. 24% of renters spend between $750 and $999 on rent across the state,followed by renters paying less than$750 and renters paying between $1,000 and $1,250 per month (21% each). 54 HOUSING NEEDS ANALYSIS& HOUSING MARKET ANALYSIS I City of Tigard Exhibit A Table 17: Median Home Value and Monthly Owner Costs, 2014-2018 TOTAL WITH A MORTGAGE WITHOUT A MORTGAGE OWNER- MEDIAN OCCUPIED SHARE OF MEDIAN SHARE OF MEDIAN HOME UNITS TOTAL MONTHLY TOTAL MONTHLY VALUE OWNER COSTS OWNER COSTS City of Tigard 12,742 76% $1,954 24% $635 $375,100 Washington County 132,359 74% $1,902 26% $631 $360,400 State of Oregon 985,523 66% $1,647 34% $519 $287,300 Data Sources:2014-2018 5-Year American Community Survey Tables B25077, B25087, and B25088 City of Tigard I HOUSING NEEDS ANALYSIS&HOUSING MARKET ANALYSIS 55 Exhibit A Figure 29: Gross Rent, 2014-2018 30% 28% 26% 25% 24% 24% 21% 22% 21% 21% 20% 19% in 17% 0 m 15% 14% 14% o o 13% 0 x 0 cu .Lc 1O% 111 8% in 7% I II 6% 6% I I I 6% 5% 0% City of Tigard Washington County State of Oregon •Under$750 I$750 to$999 ■$1,000 to$1,249 a$1,250 to$1,499 ■$1,500 to$1,999 4$2,000 or more Source: 2014-2018 5-Year American Community Survey Table B25063 56 HOUSING NEEDS ANALYSIS&HOUSING MARKET ANALYSIS I City of Tigard Exhibit A Figure 30: Monthly Owner Costs for Households with a Mortgage, 2014 2018 35% 31% 30% 29% 29% 28% 25% 23% 22% c20% 19% 20% aJ = 16% c 15% 13% 12% 12% s 10% 8% 6% 5% I 6% 1 5% 4% 1 5% 5% liIl 0% City of Tigard Washington County State of Oregon •Under$1,000 s$1,000 to$1,499 $1,500 to$1,999 •$2,000 to$2,499 •$2,500 to$2,999 •$3,000 to$3,499 •$3,500 or more City of Tigard I HOUSING NEEDS ANALYSIS&HOUSING MARKET ANALYSIS 57 Exhibit A Affordable Housing As discussed in Chapter 4 (Housing Needs), about two-thirds of Tigard's lower income households, or about 1,310 households with incomes under 80% of the area median, have a housing need. The needs are almost entirely related to affordability. In addition to need generated by current households, housing forecasts estimate need for an additional 5,574 housing units for households with incomes under 80% of the area median through 2040. While residential zoning and other policies that encourage smaller housing types and denser development can lead to greater variety in housing costs, stronger market intervention is typically needed to reach affordability levels at lower income levels. Housing subsidies come in a variety of forms,from supply-side initiatives that reduce development costs in return for some guarantee of affordability to demand-side subsidies such as down payment assistance or rental support that provide direct assistance to income-eligible households. Nationally, the Low Income Housing Tax Credit (LIHTC) program is the primary source of subsidy for development of new affordable housing. Created by the Federal Tax Reform Act of 1986, the LIHTC program makes available an indirect federal subsidy for investors in affordable rental housing. The value of the tax credits awarded to a project may be syndicated by the recipient to generate equity investment, offsetting a portion of the development cost. As a condition of the LIHTC subsidy received, the resulting housing must meet certain affordability conditions. The Internal Revenue Service allocates LIHTCs annually to each state's housing finance agency,which then awards them on a competitive basis to project applicants within the state. Working through local housing authorities, the U.S. Department of Housing and Urban Development (HUD) also provides affordable housing subsidies with its public housing program and its Section 8/Housing Choice Voucher program. New public housing development,however, is not a significant source of affordable housing construction. HUD entitlement grant funding through the Community Development Block Grant (CDBG) and HOME Investment Partnerships (HOME) programs may also be used to support affordable housing development or provide assistance to homebuyers or renters. State, regional, and local programs can also support affordable housing efforts. In 2018, Metro passed a bond generating $652.8 million in affordable housing funding for metro Portland cities and counties, including projects in Tigard. The city currently has three projects underway that received Metro bond funds, but the majority of Metro funding allocated to Washington County has been spent. At the city level, initiatives to lower development costs for dedicated affordable housing include System Development Charge (SDC) waivers and tax exemptions for affordable properties owned by nonprofit organizations. In many cases,these exemptions can be combined with other subsidies such as LIHTC to achieve a suitable financing structure for affordable development. Tigard adopted a Construction Excise Tax (CET) in 2020 that will generate revenue to support local affordable housing initiatives, and as of 2021, Tigard is now a joint entitlement city and will receive Community Development Block Grant (CDBG) funds annually from the U.S. Department 58 HOUSING NEEDS ANALYSIS&HOUSING MARKET ANALYSIS I City of Tigard Exhibit A of Housing and Urban Development. Tigard plans to prioritize affordable homeownership programs using its CDBG funds. The City also allocates funds from its two Tax Increment Financing (TIE) Districts - Downtown and Tigard Triangle - toward affordable housing. The Tigard Triangle has an Equitable Development Strategies policies that guides investment of TIF funds, which specifically prioritizes affordable housing development. Publicly Supported Housing Supply Tigard has a small share of publicly supported housing available for low-income households. Housing choice vouchers (HCVs), project-based vouchers (PBVs), Veterans Affairs Supportive Housing (VASH), traditional public housing, and other affordable housing types in the city are offered by the Housing Authority of Washington County (HAWC). In 2019, Tigard had 279 housing choice vouchers in use. Figure 31: Housing Choice Voucher Use in Tigard • —uo yl li 111111.11PP4S 57 Legind c=0,9„4.# 11 t Housing Choice Vouchers in Tigard,OR 14.E r. 34 if 11 414 +3 C ! 9 7 14444 44 71 rimy Lyb Cd MMil hug*rid 7.413311 1244 SWOON11 Pxtt o flf' 1 ! F Dam 7X4414 City of Tigard I HOUSING NEEDS ANALYSIS& HOUSING MARKET ANALYSIS 59 Exhibit A Table 18 lists affordable housing developments within the city of Tigard. Project-based vouchers offered from agencies outside the Public Housing Authority (PHA) include Red Rock Creek (serving disabled residents) and The Knoll (serving seniors), which is offered by the Community Partners for Affordable Housing;and the PLUSS Apartments offered by Luke-Dorf,a community mental health organization. The Washington County Department of Housing Services also offers other affordable housing options.The Colonies Apartments in Tigard offers 96 one-and two-bedroom units.Similarly,the Bonita Villa apartments offer 96 one-, two-, and three-bedroom units. Both developments are also located near the Tri-Met bus. The Fields, a complex containing 264 units of affordable housing created in a partnership between the HAWC and DBG Properties, LLC, was completed in 2020. Furthermore,there are eight Low Income Housing Tax Credit (LIHTC) developments in the City of Tigard. These developments contain approximately 625 low-income units. LIHTC developments are primarily located in these census tracts where renters pay lower median rents less than $1,250 per month. Local non-profits, such as the Community Partners for Affordable Housing, provide LIHTC housing developments to the area. As of 2021, one LIHTC property in Tigard - Woodspring Apartments - ended its affordability period. The 172-unit property served low- and moderate-income seniors. Current residents now have a 3-year period before their rent can be raised to market rates. In 2018,the Metro bond was approved by voters and is anticipated to create 3,900 new housing units to Clackamas, Multnomah and Washington counties designated for households earning less than 80%AMI. Specifically, the Metro Bond Project will bring 81 units of affordable housing to Tigard, located at SW 72nd Avenue and Baylor Street. The project proposes 33 units for affordable housing for households earning less than 30%AMI. Another 16 units will be reserved for project-based vouchers and VASH vouchers.The project will contain 25 one-bedroom units, 46 two-bedroom units and 10 three-bedroom units. 60 HOUSING NEEDS ANALYSIS& HOUSING MARKET ANALYSIS City of Tigard Exhibit A Figure 32: LIHTC Development in Tigard Village at Sunflower Washington Apartments Square *; I&II Greenberg Oats The * Viewfinder � Knottat *Nelda There * Apartments a Durham Pads * Apartments Legend UHTC Developments Gross Rent by Census Tract City ofTigard 929-1000 LIHTC Developments in Tigard, OR 10011250 1251-1500 1501-1750 0 0,5 1 2 Miles 1751-2000 I Source:US Census Bureau TIGER/Line Shapeftles,LIHTC Database,ACS 5-Year Estimates 2014-2018 Table 825064 City of Tigard HOUSING NEEDS ANALYSIS& HOUSING MARKET ANALYSIS 61 Exhibit A Table 18: Affordable Housing Development, City of Tigard, 2021 YEAR DEVELOPMENT NAME TYPE BUILT OF IINIT Durham Park Apartments,16100 SW 108th Avenue Apartments 1989 221 Fields Apartments,7790 SW Hunziker Street Apartments 2020 264 Greenburg Oaks,11855 SW 91st Avenue Apartments 2006 81 Hill Street Duplex,9283 SW Hill Street Duplexes 1991 4 Knoll at Tigard,12291 SW Knoll Drive Apartments 2011 45 Metzger Park,10025 SW 85th Avenue Apartments 2015 (Rehabilitation) 32 Oleson Woods,9140 SW 91St Avenue Apartments 32 Red Rock Creek Commons,11090 SW 68th Pkwy Apartments 2020 48 Sunflower Apartments 1&II,11547 SW 135th Avenue Apartments 1988-89 238 The Viewfinder,SW 72nd Avenue and Baylor Street Apartments Under Construction 81 Village at Washington Square,11159 SW Hall Blvd Apartments 2002 26 Homelessness Estimates and Resources In addition to conventional affordable housing, additional housing resources are needed in Tigard and surrounding communities to support individuals and families experiencing homelessness. To respond to homeless needs, HUD uses a Continuum of Care (CoC) system, in which local communities work together with the shared goal of ending homelessness. HUD provides funding to CoCs throughout the US,who use it to support nonprofit agencies and state and local government efforts to reduce and prevent homelessness.The City of Tigard falls within the Hillsboro/Beaverton/Washington County Continuum of Care (CoC), which covers all of Washington County. Factors Contributing to Homelessness High housing costs are a leading cause of homelessness in Washington County. Residents surveyed in the 2016 Point-in-Time count8 most commonly cited 'couldn't afford rent' as a reason for homelessness(27.3%of sheltered residents and 31.5%of unsheltered residents).Other top reasons included 'drug/ alcohol at home,' 'medical problem,' and 'runaway.' Washington 8 The 2016 Point-in-Time count is the most recent count available that includes survey information about causes of homelessness. 62 HOUSING NEEDS ANALYSIS& HOUSING MARKET ANALYSIS I City of Tigard Exhibit A County's homelessness plan,9 A Road Home (2018-2025), also notes the lack of affordable housing in the county as a primary contributor to homelessness. In particular, the gap in rental housing affordable to households with incomes less than 50% AMI places a burden on the homelessness system (e.g., by increasing demand for emergency rental assistance). Similarly, the housing projections included in this plan note a need for an estimated 20,021 new housing units in the Tigard Planning Area through 2040, including demand for 439 units needed to house people experiencing homelessness. These projections also indicate that about one- quarter (24%) of new housing in the Tigard Planning Area (4,960 units) should be affordable to households with incomes at or below 50%of the median family income (or$46,050 for a family of four), further demonstrating a need for units affordable to households with low to moderate incomes. Homelessness Estimates Assessing the number of people experiencing homelessness throughout the year is difficult. While a count of homeless individuals and families staying in shelters or transitional housing is possible, people that are doubled up or couch surfing or staying in a car or other area not meant as a permanent shelter are more difficult to count. CoCs throughout the country make an effort to estimate the number of people experiencing homeless in their jurisdiction through what is known as a Point-in-Time count. The 2019 Point-in-Time count for Washington County held on January 23, 2019 counted 423 households with 530 people experiencing homelessness in total (see Table 19). Table 19: Hillsboro, Beaverton/VVashington County CoC 2019 Point-in-Time Homeless Count SHELTERED UNSHELTERED TOTAL EMERGENCY TRANSITIONAL Total number of households 134 82 207 423 Total number of persons 186 112 232 530 Number of children under age 18 42 18 21 81 Number of persons age 18 to 24 13 15 9 37 Number of persons over age 24 131 79 202 412 Data Source: Hillsboro, Beaverton/Washington County Continuum of Care 2019 Point-in-Time Count Of the 530 people experiencing homelessness counted in the Point-in-Time count, 139 people were counted as chronically homeless (26.2% of total people experiencing homelessness). Of 9 Washington County. (2018).A Road Home: Community Plan to Prevent and End Homelessness (July 2018-June 2025). Retrieved from: https://www.co.washington.or.us/Housing/EndHomelessness/index.cfm City of Tigard i HOUSING NEEDS ANALYSIS& HOUSING MARKET ANALYSIS 63 Exhibit A the 139 people who were chronically homeless, 38 were sheltered in emergency shelter (27.3%), 6 were in transitional housing (4.3%), and 95 were unsheltered (68.3%). The 2019 Point-in-Time count counted 134 people in households with at least one adult and one child (25.3% of people experiencing homelessness), 84 veterans (15.8%), and 41 people in unaccompanied and parenting youth households (7.7%). The 134 people in families with children included 39 households with 73 children under the age of 18.As estimated 104 of the 134 people in these households were sheltered, including 69 people (51.5% of people in families with children) in emergency shelters and 35 (26.1%) in transitional housing. Table 20: Demographic Summary of Sheltered and Unsheltered Homeless Persons in the Hillsboro, Beaverton/Washington County CoC SHELTERED UNSHELTERED TOTAL EMERGENCY TRANSITIONAL Demographic Summary by Gender Female 68 42 57 167 Male 114 68 170 352 Transgender 4 2 2 8 Gender Non-Conforming 0 0 3 3 Summary of Other Populations Represented Chronically Homeless 38 6 95 139 Severely Mentally III 11 10 67 88 Chronic Substance Abuse 5 3 119 127 Veterans 9 52 23 84 HIV/AIDS 1 0 2 3 Victims of Domestic Violence 8 5 5 18 Unaccompanied Youth 13 6 11 30 Parenting Youth O 5 0 5 Children of Parenting Youth 0 6 0 6 Data Source: Hillsboro, Beaverton/Washington County Continuum of Care 2019 Point-in-Time Count The Point-in-Time count categorized the number of sheltered and unsheltered individuals who were homeless in Washington County by race and ethnicity (see Table 21).The count found that 402 of the 530 sheltered and unsheltered individuals were white (75.8% of total), 54 were Black or African American (10.2%), 33 were multiple races (6.2%), and 26 were Native Hawaiian or Pacific Islander (4.9%). Regarding ethnicity, the count found that 68 of the 530 total sheltered 64 HOUSING NEEDS ANALYSIS&HOUSING MARKET ANALYSIS I City of Tigard Exhibit A and unsheltered homeless population were Hispanic/Latino (12.8%),and 315 were non-Hispanic/ Latino (87.2%). Note that these figures do not represent the entire homeless population over the course of a year, but rather the number of homeless that were sheltered and unsheltered during the 2019 Point-in-Time count. Table 21: Race and Ethnicity of Sheltered and Unsheltered Homeless Persons in the Hillsboro, Beaverton/Washington County CoC SHELTERED UNSHELTERED TOTAL EMERGENCY TRANSITIONAL Homeless Persons by Race White 140 81 181 402 Black or African American 16 13 25 54 Asian 1 0 0 1 American Indian or Alaska Native 2 6 6 14 Native Hawaiian or Pacific Islander 16 7 3 26 Multiple Races 11 5 17 33 Homeless Persons by Ethnicity Non-Hispanic or Non-Latino 155 99 208 462 Hispanic or Latino 31 13 24 68 Data Source: Hillsboro, Beaverton/Washington County Continuum of Care 2019 Point-in-Time Count Homelessness Strategy Washington County's strategy to address homelessness is detailed in its homelessness plan, A Road Home (2018-2025), which includes the following goals and related tasks: • Goal 1 - Prevent people from becoming homeless through: o Emergency rental assistance and other support for at-risk households. o Landlord/tenant mediation and eviction prevention. o Rental education programs. o Homeless outreach. o Shelter access for homeless youth, adults, and families. o Training program in homelessness prevention for use by local hospitals and jails to reduce the likelihood of discharge of individuals into homelessness. • Goal 2 - Move oeonle into housing through: o Short-term emergency rental assistance combined with support services. o Transitional living program expansion for homeless youth age 18 to 23. City of Tigard HOUSING NEEDS ANALYSIS& HOUSING MARKET ANALYSIS 65 Exhibit A o Permanent supportive housing for homeless people with disabilities. o Permanent affordable housing for people with extremely low incomes. o A risk mitigation pool available to landlords to cover property damage. o Relationships with private landlords to encourage them to house formerly homeless people. • Goal 3 - Link people to appropriate services and remove barriers_through: o Case management and supportive services. o Housing and service navigators to assist with access to housing and services. o A one-stop resource center to provide basic needs and emergency shelter. o A recuperative care program to support people discharged from hospital. o Expanded collaboration with the Veteran's Administration and community agencies to increase use of VA resources by people who are homeless. o Transportation resources/assistance. • Goal 4 - Increase income support and economic opportunities through: o Career coaching,job skills training, and/or employment programs. o Assistance for single parents to access child support enforcement services. o Improved access to SSI/SSDI benefits for people who are homeless. o Increased income self-sufficiency for people with disabilities or who experience barriers obtaining and retaining employment. • Goal 5 - Expand data collection including improving data collection about people accessing resources, analyzing impacts to improve programs and develop annual plans, and increasing Congressional awareness of local homelessness needs. • Goal 6 - Educate the public on homelessness by developing a public education campaign, sharing annual reports with local governments and the public, and growing partnerships with local private, public, nonprofit and other agencies. The County's 2020 Homeless Assessment Report to the Board of County Commissioners10 notes that an estimated $26.8 million was needed to implement strategies outlined in the County's homelessness plan for FY2019/2020. However, only about $14.4 million in public and private resources were available to serve residents in shelter and housing programs and with prevention assistance (including $1.1 million in leveraged Medicaid reimbursement for mental health and addictions treatment, and other health-related services). Facilities and Housing Targeted to Homeless Households Based on a review of emergency, transitional, and permanent supportive housing that serves persons experiencing homelessness in Washington County, there are an estimated 111 year- round emergency shelter beds. The county's homeless facilities also include 119 transitional housing beds, and 725 permanent housing beds, including 495 permanent supportive housing beds and 230 rapid rehousing beds. 10 Washington County. (2020). A Road Home:Community Plan to Prevent and End Homelessness.2020 Homeless Assessment Report to the Board of County Commissioners, Retrieved from: https://www.co.washington.or.us/Housing/EndHomelessness/a-road-home.cfm 66 HOUSING NEEDS ANALYSIS& HOUSING MARKET ANALYSIS i City of Tigard Exhibit A In Tigard, the Good Neighbor Center (GNC) is a 36-bed facility that provides housing for up to 9 families at a time for up to six weeks. GNC also provides meals, childcare and youth programs, skill building classes, and other services to assist families. In addition to on-site beds, GNC offers a Housing Stabilization Program that provides rental assistance to families that gradually declines as they reach stability. In its most recent program year, GNC served 256 people in 75 families, including 135 children. Throughout Washington County, emergency shelter beds are provided by: • Boys and Girls Aid (SafePlace Youth Shelter) • Community Action (Hillsboro Family Shelter) • Domestic Violence Resource Center (Monika's House) • Family Promise • Good Neighbor Center (Good Neighbor Center Shelter) • Old Town Church • Rolling Hills Community Church (Rolling Hills Shelter) • Sonrise Church Transitional housing beds are provided by: • Boys and Girls Aid (Transitional Living Program) • Domestic Violence Resource Center (Mary Mac House) • LifeWorks NW (Fredrick House) • The Salvation Army (Veterans & Families Center) • Washington County Department of Housing (Homeless To Work Program) Permanent supportive housing in Washington County is provided by: • Cascade AIDS Project (scattered site) • Community Action (scattered site) • LifeWorks NW (Tom Brewer House and scattered site) • Luke-Dorf Inc. (Hillsboro Graduated and scattered site) • Open Door Counseling Center (scattered site) • Sequoia Mental Health Services Inc. (Tri-Haven and scattered site) • Washington County Department of Housing (HUD-VASH and Housing Independence) Residents experiencing homelessness in Washington County may access housing and related resources through Community Connect, a coordinated entry system designed to help people experiencing homelessness or at imminent risk of homelessness to find housing resources in Washington County. Through the coordinated entry system, residents are scheduled to attend a one-hour assessment to determine the housing and supportive service needs and are referred to partner agencies based on household needs and beds available. Table 22: Facilities and Housing Targeted to Homeless Households EMERGENCY SHELTER BEDS TRANSITIONAL PERMANENT YEAR ROUND VOUCHER/ SUPPORTIVE HOUSING BEDS BEDS SEASONAL/ HOUSING BEDS OVERFLOW BEDS Total Beds 111 133 119 495 Adults and children 103 41 131 City of Tigard I HOUSING NEEDS ANALYSIS& HOUSING MARKET ANALYSIS 67 Exhibit A Adults only 6 78 364 Children only 2 0 0 Chronically homeless O 0 156 Veterans 0 86 238 Unaccompanied youth 5 10 0 Data Source: Hillsboro, Beaverton/Washington County Continuum of Care 2019 Point-in-Time Count Several recent local and state-level initiatives provide funding to increase housing and supportive services for people experiencing homelessness: • The Metro Affordable Housing Bond Measure was approved by voters in 2018 to support the development of affordable housing units, and its implementation plan includes a commitment to create 100 units of permanent supportive housing." • Voters approved the Metro Supportive Housing Services Measure in 2020 to provide new funding for supportive housing and services to people experiencing homelessness or at risk of homelessness. This revenue to fund these services will be generated by a 1% tax on taxable income of more than$125,000 for an individual and $200,000 for couples filing jointly, and a 1% tax on profits from businesses with gross receipts of more than $5 million.12 • Voters approved the Washington County Public Safety Replacement levy in 2020 to sustain funding for victims' assistance and emergency shelter for women and children who are victims of domestic violence.13 Combined, these funding sources provide support for several goals in the County's homelessness plan and help to address the need for additional housing units for residents experiencing homelessness. Developer Perspectives Understanding Tigard's goal of a diverse array of housing products that offer affordable options to households of all sizes, types, and income ranges, including historically undersupplied middle housing types, the project team conducted interviews with several Portland-area housing 11 Washington County. (2020).Affordable Housing Bond: Implementation. Retrieved from: https://www.co.washington.or.us/Housing/AffordableHousingBond/implementation.cfm 12 Washington County. (2021). Supportive Housing Services. Retrieved from: https://www.co.washington.or.us/Housing/SupportiveHousingServices/index.cfm 13 Washington County. (2020). Public Safety Levy. Retrieved from: https://www.co.washington.or.us/Levies/PublicSafetyLevy/index.cfm 68 HOUSING NEEDS ANALYSIS& HOUSING MARKET ANALYSIS I City of Tigard developers/providers to better understand barriers and opportunities for these development types.14 Key findings from these interviews are summarized here. Development Foes and Tax Exemptions • For affordable housing developers, System Development Charge (SDC) waivers are crucial in reducing development costs and making projects feasible. Tigard has taken positive steps toward reducing development costs by waiving transportation and parks SDCs for affordable development. However, a reduction in other development fees or taxes, including from Washington County, would better support affordable housing. • Market-rate developers noted that SDCs and other fees (transportation, sewer, water, parks, etc.) should vary by housing size so that developers pay less per unit for smaller, middle housing types than for larger, single-family detached homes. • Tigard's Low Income Housing Tax Exemption for nonprofit affordable housing providers is a very helpful tool as it decreases ongoing operational costs beyond the development phase. Land Availability • For affordable housing developers, land availability is a major consideration. Because affordable housing often takes several layers of financing, timing to put a project together takes additional time compared to market-rate development. This means that affordable developers are less able to move quickly to purchase a suitable piece of property. • Land bank properties, properties owned by cities or other public agencies, or properties owned by a mission-oriented organization such as a church are appealing because they can be held by the owner while a developer structures financing for an affordable housing development. Free or reduced cost land also helps for affordable housing projects. • Affordable and market-rate developers look for properties with transit/transportation access, walkability, and proximity to good schools, libraries, parks, and healthy grocery options. When a site becomes available, there is typically competition for it amongst both affordable and market-rate developers. • For affordable housing developers, land availability was generally named as either the#1 or #2 barrier to development. Habitat for Humanity noted that they have not built in Tigard primarily because of a lack of available land that made sense for them. 14 Market-rate developers that participated in interviews with Leland Consulting include Pacific Community Design and Taylor Morrison Homes. Affordable housing agencies that participated in interviews with Mosaic Community Planning include BRIDGE Housing, Proud Ground, Habitat for Humanity Portland Region (formerly Willamette West Habitat for Humanity, including representatives from their Homeownership and Critical Home Repair Programs), Northwest Housing Alternatives,and Craft3. City of Tigard I HOUSING NEEDS ANALYSIS& HOUSING MARKET ANALYSIS 69 Exhibit A Zoning • When asked what policies would encourage more affordable housing development, affordable developers mentioned a variety of zoning policies, including a possible citywide Inclusionary Zoning ordinance, strong affordability goals or requirements in development areas (such as River Terrace 2.0), and incentive zoning that allows developers the option to build additional units in exchange for keeping some share affordable.The Tigard Triangle was mentioned as an area where the City made good use of incentives to encourage desired development types. • Affordable developers also noted that the supply of multifamily zoned land impacts development as well. When land needs to be rezoned, it introduces time and risk to a project, which can both increase costs. Not In My Backyard (NIMBY) attitudes can still be a barrier to affordable development, particularly in opportunity-rich areas, although less so than in the past. Missing Middle Housing Types • Habitat for Humanity successfully builds many of the missing middle housing types (including duplex, triplex, four-plex, and rowhouse units) that Tigard would like to encourage. Through partnership with Proud Ground, these units remain as long-term affordable for-sale housing stock. • Proud Ground has also worked successfully with Orange Splot, a developer focused on community-oriented green building,to provide affordable homeownership opportunities in rowhouse and cottage cluster developments. • Missing middle housing types are less attractive to affordable rental housing developers, particularly those that typically use LIHTC funding, because achieving rent levels required by the LIHTC program through missing middle housing types is more difficult. Smallest project sizes are usually in the 45-50 unit range with 3-4 story apartment construction. • One affordable rental housing developer expressed potential interest in missing middle housing types but noted that there would likely be difficulty finding the right financing to achieve rent levels at 60%of area median income. • Market-rate developers like the idea of middle housing and reaching homebuyers at a more affordable price point. They build housing products ranging from single-family units at 6 units/acre to townhomes at 20 units/acre. Market-rate developers may need to explore new development mixes differing from their traditional models to achieve higher densities. • Market-rate developers are working on "plex"concepts now(duplex,triplex, 4-plex,etc.) and plan to deliver more of these housing types. A challenge to that development is competition with older detached single-family homes,which buyers choose if prices are similar. • Craft3 recently began a loan program to support homeowners in construction of Accessory Dwelling Units (ADUs). The program began in Portland and has now expanded to Multnomah,Washington,and Clackamas counties. Interest rates vary based on householder income. Borrowers can also develop ADUs designated as affordable rental units using Craft3's lowest-interest rate financing through a program with BackHome ADU. 70 HOUSING NEEDS ANALYSIS& HOUSING MARKET ANALYSIS I City of Tigard Exhibit A Home Repair Needs • Considering home repair for low- and moderate-income homeowners, the biggest need that Habitat for Humanity sees in its Critical Repair Program is for home modifications for seniors and people with disabilities (wheelchair ramps, grab bars, non-slip flooring, etc.). Other less common home repair needs include furnace repairs, electrical issues, and roofing and siding repair. Specifically in Tigard, there has been moderate demand for accessibility modifications. • Because Habitat for Humanity uses skilled volunteer labor, home repairs that may cost $5,000 to $10,000 including labor can be done for an average of around $2,000, depending on cost of materials. Barriers to Accessing Housing • Affordable housing developers identified barriers other than cost that low- and moderate-income households often face in obtaining affordable housing on the private market. Responses included: o Past rental or financial issues such as an eviction or poor credit history. o Acceptance of Housing Choice Vouchers by landlords. o Ability to find affordable housing somewhere with access to transportation. o Language translation/interpretation needs. o Application fees. People may put applications in at several properties and each involves an application fee. o High rental costs impede ability to save for a down payment. o Mortgage readiness and ability to make a down payment. o Limited for-sale housing supply means more competition for homes that are available. Prospective buyers need a competitive offer to be attractive to sellers. Implementation Strategies To achieve the goal of middle housing and affordable housing development, the City of Tigard and the project team identified a variety of strategies for implementation, outlined below. 1. Land Banking and Targeted Site Development Land acquisition is a key step in enabling affordable housing. Even though land is a much smaller amount of total development costs than items such as construction cost, land control plays a big role in determining what types of development will occur. In 2019, Tigard approved tax exemptions for land banking by nonprofit affordable housing developers, which makes it less risky and less costly to assemble parcels for affordable housing development. Working with a partner agency, the City should develop a land banking apparatus to hold suitable sites for affordable housing development, including possible free or reduced cost land for affordable housing and site specific, city-led development. Key components of this strategy include: City of Tigard I HOUSING NEEDS ANALYSIS& HOUSING MARKET ANALYSIS 71 Exhibit A • Location Evaluation:An advantage of site acquisition by the City (or a land bank partner agency) are that it can look for sites within targeted areas or with targeted characteristics. For affordable housing, this may include parcels in mixed-use nodes or near main street areas, transit-served locations, or flat land with little need for grading. • Acquisition: In its 2019 Tigard Housing Strategy Implementation P/an, Tigard identified a variety of funding available to acquire property, including Construction Excise Tax (CET) proceeds, Tax Increment Financing (TIF) funds, Community Development Block Grants (CDBG), or the City's general fund. • Goal Setting: The City should undertake a goal setting process to clarify its objectives for acquired site(s). For larger properties, a high-level concept planning study could be completed. Outcomes of the process should include the desired housing mix by tenure and type, affordability levels/income targets, length of affordability, and the anticipated investment by the City and other partners. • Developer Solicitation:Once the City's goals are defined,the City can release a developer solicitation (e.g., request for qualifications (RFQ) or request for proposals (RFP)) to find the most capable developer(s) to build the envisioned housing. The City may also consider developing a partnership with an affordable housing developer such as Habitat for Humanity that allows smaller sites to be transferred from the City or land bank agency for middle housing development on an ongoing basis without individual developer solicitation efforts for each property. 2. Community Land Trust Model for Homeownership Community land trusts (CLTs) are nonprofit, community-based organizations primarily used to ensure long-term housing affordability, usually with an emphasis on homeownership. A CLT acquires land and maintains ownership of it, while homeowners enter into long-term renewable leases and build equity by making payments on their homes. The CLT model lowers the cost of homeownership by reducing or eliminating land acquisition costs (and sometimes other costs) from the building ownership costs, and also decreases the likelihood of displacement in areas where land values are increasing. CLTs are also able to lease land to affordable housing developers and/or act to develop and manage affordable rental housing. The Portland area is home to Proud Ground, one of the largest CLTs in the nation, which operates in Clackamas, Lincoln, Multnomah, and Washington Counties, OR and Clark County, WA. Under Proud Ground's model, residents own their homes, but Proud Ground retains ownership of the land, ensuring long-term affordability for future homebuyers. Homes typically enter Proud Ground's CLT in one of two ways: (1) through down payment assistance programs used by homebuyers to purchase existing homes or (2) through partnership with developers building new affordable units. Proud Ground frequently partners with Habitat for Humanity, where Habitat constructs affordable for-sale units (often including middle housing types) and Proud Ground holds them in trust. The City of Tigard should explore options for partnership with Proud Ground, including use of CET revenue, CDBG funds, or other affordable housing funds to: • Provide down payment assistance to eligible prospective homebuyers; • Provide land-banked property for development by Habitat for Humanity or another for- sale affordable developer and subsequent inclusion in Proud Ground's CLT: and/or 72 HOUSING NEEDS ANALYSIS& HOUSING MARKET ANALYSIS City of Tigard Exhibit A • Direct funding to the organization. 3. Targeted Use of Construction Excise Tax (CET) Revenue Senate Bill 1533, enacted in 2016, allows cities to levy a construction excise tax (CET) on new construction projects for the purpose of funding affordable housing projections. The Construction Excise Tax was recommended by the 2019 Tigard Housing Strategy Implementation Plan and in January 2020, the City of Tigard adopted a CET of 1%on commercial and residential construction. Revenue from this CET can be used to fund affordable housing through funding developer incentives, affordable housing programs, supporting the Oregon Housing and Community Services' (OHCS) homeowner programs, and covering administrative costs. In 2019,the City of Tigard estimated that it would have collected an average of about$1.9 million in CET revenue in each of the previous two years, based on total construction costs in those years. Based on those figures, the amount available for affordable housing programs is estimated to be in the $750,000 to $800,000 range annually, dependent on the total amount of construction activity. Prospective uses of CET affordable housing funds include: • Down payment assistance and permanent affordability through a community land trust; • Land acquisition and land banking for affordable housing; • Purchase of low-cost market rate units to maintain affordability; • Gap financing for affordable housing rental units; and • Replacement of lost System Development Charge (SDC) revenue due to SDC waivers for affordable housing. Additionally, the City of Tigard should consider the targeted use of CET revenue to incent affordable housing construction in key development areas such as Washington Square Regional Center and River Terrace 2.0.This approach could be used in combination with the targeted site development efforts described in Strategy 1, the community land trust model described in Strategy 2, and/or other location-based affordable housing incentives, such as those described in Strategy 4. 4. Incentive Zoning and Inclusionary Housing Community land use regulations determine where and how much small footprint housing can be developed. The passage of House Bill 2001 allowed duplex and townhome development in areas previously zoned exclusively for single-family development in Oregon cities with 10,000 or more residents.Additionally, in 2018,Tigard adopted code amendments that legalized middle housing types in all residential zones. However, there may be additional opportunities to encourage denser and more affordable development, such as through incentive zoning. Incentive zoning provides a set of benefits or allowances to a developer in exchange for building a desired development type, including affordable housing units. The 2019 Tigard Housing Strategy Implementation Plan recommended three main types of incentive zoning that Tigard could implement. The first, a density bonus,would permit a greater number of total housing units than otherwise allowed in a development on the condition that City of Tigard HOUSING NEEDS ANALYSIS& HOUSING MARKET ANALYSIS 73 Exhibit A affordable units are included. The second, reduced parking requirements, suggested exploring alternative parking requirements for small-footprint housing and apartments, as well as potentially decreasing parking requirements for affordable housing located near transit service. A third type of incentive zoning proposed in the plan was an exemption from Tigard's mixed- use requirement for building residential units within a commercial zone. Currently, residential units are only permitted in commercial zones if the ground floor is maintained for commercial zone. The plan suggests waiving this requirement for affordable housing developments. In 2019, Tigard Municipal Code was updated to include new density and height bonuses for qualified affordable housing within the Tigard Downtown Plan District.The density bonus allows greater density for developments incorporating units affordable at 80%AMI. In summer 2020, the city of Portland approved the "Residential Infill Project" (RIP) a zoning code update which legalized up to four housing units on nearly any residential lot, consistent with HB 2001. An additional "deeper affordability option" increased the number of permitted units to six if at least half are made affordable to low-income households (60% AMI for renters and 80%AMI for owners) at regulated prices. The City of Tigard should analyze the feasibility of incentive zoning strategies recommended in the 2019 Tigard Housing Strategy Implementation Plan and consider adding an analysis of a Portland RIP-type bonus for affordable units. Additionally, the City should continue to monitor the development and efficacy of mandatory inclusionary zoning policies in Oregon cities. Senate Bill 1533 allowed Oregon jurisdictions to adopt mandatory inclusionary zoning programs, but, as noted in the Housing Strategy Implementation Plan, provisions in statute are expected to limit its impact and impose administrative hurdles, particularly for smaller communities. By tracking progress of Portland's program and other programs adopted in the state, Tigard can assess the feasibility of a similar policy in the future. 5. Revised System Development Charge Structure System Development Charges (SDCs) are one-time fees paid at the time a development permit is issued and used toward the public facilities (transportation, sewers, and parks) required to meet growth-related needs. In July 2019, Tigard approved an ordinance that waived parks and transportation system development charges (SDCs) for accessory dwelling units (ADUs), thereby reducing the development cost of this type of low-cost housing. Additionally, SDCs for housing units such as apartments, cottages, and rowhouses are lower than those for single family homes, and fees are waived altogether for regulated affordable housing. Other strategies to "right size" SDCs were explored in the 2079 Tigard Housing Strategy Implementation Plan, including tying fees to dwelling size for all unit types and negotiating with Washington County service providers to decrease certain non-city SCDs. A third strategy, offering a deferral or low-interest financing for SDCs for desired housing types, would decrease the upfront development costs of desired housing types. The City of Tigard should revise its SDCs to a tiered structure based on dwelling size. Research by Leland Consulting Group indicates that size and type of housing is strongly correlated with 74 HOUSING NEEDS ANALYSIS& HOUSING MARKET ANALYSIS I City of Tigard Exhibit A price, and that smaller homes, attached townhomes, and condominiums are usually less expensive than larger, detached single-family homes. Varying SDC rates by square footage (while retaining existing waivers for dedicated affordable housing) should lead to greater equity is SDC costs as a share of unit value for different types and sizes of housing. 6. Tax Abatements Tax abatements reduce or eliminate property tax payments for a development for a designated length of time, usually ten years or less. Property tax abatements can be offered to developers to incent affordable housing developments, or to homebuyers to decrease ownership costs. Tigard currently has two tax abatement policies: Vertical Housing Development Zones (VHDZ): The City of Tigard offers a ten-year property tax exemption for eligible properties developed within one of the city's two Vertical Housing Development Zones. The property tax exemption applies to residential construction built above a non-residential ground floor at the rate of 20% per floor, up to an 80% maximum. For each floor dedicated to low-income housing, the project is eligible to receive an additional tax exemption of 20% per floor (maximum of 80%) applied to the land tax assessment. Several developments in Tigard have qualified for this exemption. Nonprofit Low-Income Housing Program: This policy was adopted in 1996 and provides tax exemptions for regulated income-restricted (at or below 60%AMI) housing owned by nonprofit organizations and includes acquisition in addition to new construction. The two tax abatement policies currently used in Tigard are oriented toward affordable rental housing located within apartment buildings, but there may be opportunities to add policies that create tax abatement opportunities for additional small-footprint for-sale housing types. The City of Tigard should continue to make its Nonprofit Low-Income Housing Program available citywide and explore policy options for tax abatements for desired affordable for-sale housing types. Additionally, the City should consider adding parts of River Terrace 1.0 and 2.0 (for example, the mixed-use/commercial nodes) as eligible Vertical Housing Development Zones. 7. Pre-Permitted Model Project Portland's Living Smart Program (initiated in 2004) could serve as a good model to encourage more affordable, middle housing development in Tigard. In response to concerns about the design of small-lot infill development, Portland launched a design competition aimed at producing a catalogue of high-quality housing designs that would be compatible with a variety of neighborhood types and also be affordable to entry-level buyers. The competition produced two design catalogues that are available for free download on the city's website; Designs of Excellence, featuring 49 narrow-lot designs, and the Portland Catalogue of Narrow House Designs, featuring 21 designs specifically suited to Portland's neighborhoods. Of four designs chosen as People's Choice award winners, two were selected to be developed into pre-approved and permit-ready house plans, which are available for free and have already passed life, safety, and structural review. Living Smart homes are also eligible for Fast Track review, a ten-day permitting process that can reduce development time and cost. By "making the right thing easy." the City of Portland attempted to significantly reduce City of Tigard I HOUSING NEEDS ANALYSIS&HOUSING MARKET ANALYSIS 75 Exhibit A developer's costs during the permitting process (e.g., land holding/financing costs, design and professional fees, opportunity cost), and risk that their designs would not be permitted. The Portland program created a specific competition for a specific design goal. Tigard could use this approach to address specific design goals for infill lots citywide, in key development or redevelopment areas, or at River Terrace. Goals should be defined by City staff Planning Commission,or other stakeholders. Examples of challenges that the City could set for the design and development community include producing designs for a quadplex in River Terrace 2.0 and producing designs for a quadplex in which at least two units are affordable to households earning 80%AMI or less. Identifying housing types or designs for preapproval could create time and cost savings for developing desired housing types. 8. Matchmaking, Information Sharing, and Developer Support While several of the strategies discussed above involve the City of Tigard providing financial or regulatory incentives to encourage affordable and middle housing construction, the City can also work to attract desired housing through outreach to and support for affordable housing developers. It is difficult to predict the types of action or support from the City that will be most helpful be developers of affordable housing, because the group of affordable housing developers is diverse—including developers who are nonprofit and for-profit, small/local and large/nationwide, building 2 units and building 200 units—and developers' place in the development timeline varies—from early concept creation to site plan to construction. However, potential approaches by the City of Tigard include: • Matchmaking: The City can connect affordable developers and homebuilders to development opportunities by providing information about available land and funding. The City may become aware of willing property sellers, including public agencies with surplus land, that could be matched with affordable developers. The City should also work to educate developers about funding or other incentives available for affordable housing development, whether offered by the City or other parties. • Education and Information Sharing: The City of Tigard has taken progressive steps toward incorporating opportunities for middle housing citywide and in anticipated development areas. River Terrace 2.0's focus on middle housing types and affordability will be distinctive in the region. By sharing the community's vision, related zoning, and available incentives with the public and the development community (developers, homebuilders, lenders, brokers, designers, and others) the City may be able to generate interest in implementing that vision. Opportunities for information sharing could take many forms, including websites, plan summary documents, presentations to industry groups such as the Oregon Home Builders Association or Urban Land Institute, presentations at conferences, and other digital and in-person forums.The City could also conduct outreach to specific developers that have built middle and/or affordable housing in the region to gauge interest in building in Tigard. • Low Income Housing Tax Credit (LIHTC) Developer Outreach: As the largest producer of affordable housing nationwide, the LIHTC program is a key potential resource for future affordable housing development in Tigard.Credits are issued annually through the Oregon Housing and Community Services (OHCS) Department through a competitive Notice of Funds Availability (NOFA) process (for 9% tax credits) and year-round non- competitive application process (for 4% tax credits). One way to understand tax credits 76 HOUSING NEEDS ANALYSIS&HOUSING MARKET ANALYSIS I City of Tigard Exhibit A is that they provide equity (a source of capital) to affordable housing developers. Tax Credits can provide on the range of between 30 and 60 or even 70 percent of total project costs, with the higher range being for the more competitive 9%tax credits. To attract LIHTC development, the City of Tigard should maintain and develop connections with LIHTC developers and Oregon Housing and Community Service (OHCS), annually review the QAP, and work proactively to promote any city sites with scoring advantages to prospective developers, For example, OHCS's 2019 QAP awards competitive points for 9% LIHTC applications on the bases of a site's level of severe rent burden; high walk scores; proximity to transit, high-performing elementary schools or other opportunity criteria;location in an Opportunity Zone or QCT, and others. If the City inventoried available parcels and which of these criteria they meet, the City could directly, or through a real estate broker, market these sites to LIHTC developers. • Infrastructure Assistance: Another way the City may be able to support affordable housing development is through the construction of infrastructure or other site development activities using CET revenue, CDBG funds, or other available funding. This approach could be particularly helpful on difficult-to-develop sites. 9. Lending Programs for Affordable Middle Housing The City of Tigard should explore options for expanding access to capital for affordable or market-rate middle housing developers who are not otherwise able to access conventional forms of financing. This may include potential partnership with Craft3 to develop a city- supported revolving loan program or bridge loan fund for small developers using CET or other funds. The City may also consider opportunities to collaborate with Craft3 to encourage Tigard households to consider building ADUs, including affordable rentals, through their recently- created ADU Loan program. In addition to providing reduced-cost loans to lower income households for development of ADUs, Craft3's program provides its lowest-cost loans to households that commit to using their ADU as an affordable rental through BackHome ADU. Under this program, homeowners work with BackHome ADU's construction and property management partners to build and manage their rental as an affordable unit for a minimum of 8 years. City of Tigard HOUSING NEEDS ANALYSIS& HOUSING MARKET ANALYSIS 77 Exhibit A Chapter 6 : Buildable Lands Inventory Exhibit A The City of Tigard's Buildable Lands Inventory includes property outside of Title 3 lands (regionally designated water quality and flood management lands) that are: • Fully vacant:undeveloped, privately-owned parcels, or • Partially vacant.'developed, privately-owned parcels with 1/4 acre or more of the parcel vacant. Parcels with slopes of 25% or greater or that fall within the City's local wetlands inventory, CWS vegetated corridor, or FEMA 100-year floodplain are excluded from the inventory15 Also excluded are public facilities and land preserved as open space or through conservation easements. The buildable lands inventory was developed through a spatial join of the City's most recent buildable lands inventory and zoning data using Geographic Information Systems (GIS), a method allowing for visualization and analysis of buildable lands by zoning category and residential uses permitted. Following the spatial join, the buildable lands were displayed in map form by zoning category (see Figure 33) to show the locations of buildable lands by zoning category throughout the city. The data was exported for further analysis of acres of buildable land by zoning category (see Table 23) and total acres of buildable land in which residential uses are allowed, limited, restricted, and prohibited (see Table 24). Analysis of the City's zoning code of regulations on residential uses in each zoning category (see Table 25) supported the calculation of acres of buildable lands on which specific housing types (e.g., single detached houses, cottage clusters, accessory dwelling units) are allowed, limited, and prohibited (see Table 26). Zoning of Buildable Lands As of 2020, Tigard has an estimated 551.4 acres of buildable lands. These parcels are dispersed throughout the city, including a cluster of larger residential parcels in west Tigard, smaller residential parcels throughout the central portion of the city, and a cluster of primarily mixed use and commercial parcels in northeast Tigard (see Figure 33). Most of the city's buildable lands (511.8 acres or 76.5% of total buildable acres) are categorized in residential zones R-1 through R-25 (see Table 23). Parcels zoned in commercial and mixed- use zoning categories also make up a significant share of the city's buildable land (99.8 acres or 18.1% of total buildable acres), while land zoned as industrial or for parks and recreation make up smaller shares (5.1% and 0.2% of buildable acres, respectively). A wide array of the city's zoning categories allow for various types of residential uses, including residential, commercial, and mixed use zoning categories (see Table 24). At least some type of residential use is allowed on 94.2% of the city's buildable land. Residential uses are completely 15 City of Tigard. (2020). Buildable Lands Inventory. Retrieved from: https://www.tigardmaps.com/MapGalleryPDFs/d_planning/d_buildable_lands_static/buildable_lards1117 .pdf City of Tigard HOUSING NEEDS ANALYSIS&HOUSING MARKET ANALYSIS 79 Exhibit A prohibited on 5.8% of buildable land,which includes parcels zoned for Light Industrial, Industrial Park, Parks and Recreation, and Professional Commercial. While the majority of buildable lands allow at least some type of residential development, some housing types are permitted more often than others (see Table 26). While single detached houses,cottage clusters,accessory dwelling units,and courtyard units are each allowed on more than 70%of buildable acres, apartments are allowed on 31.3%of acres and rowhouses on 55.2%. The Residential Land Needs Analysis will compare existing buildable land in Tigard to 20-year housing forecasts to determine the suitability of existing residential land to satisfy population and household growth, desired housing types, and affordability through 2040. 80 HOUSING NEEDS ANALYSIS& HOUSING MARKET ANALYSIS City of Tigard Exhibit A Figure 33: Zoning of Buildable Lands, City of Tigard c3 City of Tigard _ - I R-1 MMUR-1 L- TMU - R-2 MUR-2 MUE • R-3.5 '. ^ MU--CBL'! MUIE•1 R-4,5 C-C MUE-2 r ,-, ° R-7 C-G M.-L, -- - __ .k% , 41 R-12 C-P p-P R-25 r MUC PR i _ ` .. 4 A� `+ 1.� . :� - - I +9°-♦. • , ` I V- - y - l, • ;• 'I. LI i I I i ,I I l I I I N AI fit I 1. 0 0375 035 1.5 2.25 3 — ' Mises Data Source:Tigard Open Data (City of Tigard Buildable Lands Inventory (2021),City of Tigard Zoning(2021)) City of Tigard I HOUSING NEEDS ANALYSIS& HOUSING MARKET ANALYSIS 81 Exhibit A Table 23: Zoning and Acreage of Buildable Lands, City of Tigard ZONING DESCRIPTION BUILDABLE PERCENT Or ACRES BUILDABLE LAND Residential R-1 Residential- Low Density 2.6 0.5% R-2 Residential- Low Density 1.0 0.2% R-3.5 Residential- Low Density 14.9 2.7% R-4.5 Residential- Low Density 136.7 24.8% R-7 Residential-Medium Density 181.7 33.0% R-12 Residential-Medium Density 62.4 11.3% R-25 Residential-Medium-High Density 22.5 4.1% Total Residential Acres 421.8 76.5% Commercial C-C Community Commercial 10.0 1.8% C-G General Commercial 10.4 1.9% C-P Professional Commercial 1.9 0.3% MUC Mixed Use Commercial 2.5 0.4% MU-CBD Mixed Use Central Business District 1.9 0.3% MUE Mixed Use Employment 27.2 4.9% MUE-1 Mixed Use Employment-1 8.9 1.6% MUE-2 Mixed Use Employment-2 1.2 0.2% MUR-1 Mixed Use Residential-1 2.2 0.4% MUR-2 Mixed Use Residential-2 0.3 0.0% TMU Triangle Mixed Use 33.3 6.0% Total Commercial/Mixed Use Acres 99.8 18.1% Industrial I-L Light Industrial 4.4 0.8% I-P Industrial Park 24.0 4.4% Total Industrial Acres 28.5 5.2% Parks PR Parks and Recreation 1.3 0.2% Total Parks and Recreation Acres 1.3 0.2% Total Acres of Buildable Land 551.4 100.0% 82 HOUSING NEEDS ANALYSIS& HOUSING MARKET ANALYSIS I City of Tigard Exhibit A Table 24: Acres of Buildable Lands in which Residential Uses are Allowed, Limited, and Prohibited, City of Tigard ACRES PERCENT OF TOTAL BUILDABLE LANDS Total Acres in which Residential Uses are Allowed 519.7 94.2% Total Acres In which Residential Uses are Prohibited 31.7 5.8% Total Buildable Lands 551.4 100.0% City of Tigard I HOUSING NEEDS ANALYSIS& HOUSING MARKET ANALYSIS 83 Exhibit A Table 25: Housing Types Allowed by Zoning Types of Buildable Lands, City of Tigard RESIDENTIAL SINGLE ACCESSORY MOBILE COURT- COTTAGEZONING DESCRIPTION USES DETACHED DWELLING HOME APART- YARD QUADS ROW ALLOWED? HOUSES CLUSTERS UNITS PARKS MENTS HOUSES UNITS Residential Limited R-2 Residential- Low Density Yes Yes Yes Yes No No Yes (Certain No lot types) Limited Limited R-3.5 Residential-Low Density Yes Yes Yes Yes (Cond.Use) No Yes (Certain No lot types) Limited Limited R-4.5 Residential-Low Density Yes Yes Yes Yes (Cond.Use) No Yes (Certain No lot types) Limited R-7Residential-Medium Yes Yes Yes Yes Yes No Yes Yes (Up to 5 Density units) R 12 Residential-Medium Yes Yes Yes Yes Yes Yes Yes Yes Yes Density R-25 Residential-Medium High Yes No No No Yes Yes No No Yes Density R-40 Residential-High Density Yes No No No Yes Yes No No No Commercial Caretaker homes on C-G General Commercial Restricted12 sites with No No No No No No No allowed uses C-P Professional Commercial Prohibited No No No No No No No No Preexisting Preexisting Preexistin MUC Mixed Use Commercial Yes only No Limited only Yes No No g only Mixed Use CentralYes No No No Preexisting Yes No No Yes MU CBD Business District only 84 HOUSING NEEDS ANALYSIS& HOUSING MARKET ANALYSIS I City of Tigard Exhibit A RESIDENTIAL SINGLE ACCESSORY MOBILE COURT- COTTAGE APART- ROW- ZONING DESCRIPTION USES DETACHED DWELLING HOME YARD QUADS ALLOWED? HOUSES CLUSTERS UNITS PARKS MENTS UNITS HOUSES MUE Mixed Use Employment Yes Preexisting No No No Yes No Noes Preexoisti y Preexisting Preexisting Preexisting MUE-1 Mixed Use Employment-1 Yes only No Limited only Yes No No only Preexisting Preexisting Preexisting MUE-2 Mixed Use Employment-2 Yes only No Limited only Yes No No only MUR-1 Mixed Use Residential-1 Yes Preexisting Yes Limited Preexisting Yes Yes Yes Yes only only TMU Triangle Mixed Use Yes Yes Yes Yes Yes Yes Yes Yes Yes Industrial Caretaker homes on I-L Light Industrial Restricted3 sites with No No No No No No No allowed uses Caretaker homes on I-P Industrial Park Restricted3 sites with No No No No No No No allowed uses Parks PR Parks and Recreation Prohibited No No No No No No No No 1.Allowed on or above the second story of a mixed-use development where the first story contains an allowed commercial use. 2.A single detached house is allowed where it is located on the same site with an allowed or conditional use and is occupied exclusively by a caretaker or superintendent of the allowed conditional use. 3.A single detached house Is allowed where it is located on the same site as the allowed use and is occupied exclusively by the caretaker,or kennel owner or operator,and family. City of Tigard I HOUSING NEEDS ANALYSIS& HOUSING MARKET ANALYSIS 85 Exhibit A Table 26: Acres of Buildable Lands in which Residential Uses are Allowed, Limited, and Prohibited, City of Tigard SINGLE ACCESSORY MOBILE COURT- DETACHED COTTAGE DWELLING HOME APART YARD QUAD ROW- HOUSES CLUSTERS UNITS PARKS MENTS UNITS HOUSES Total Acres Allowed 432.6 435.1 447.7 451.5 172.4 435.1 435.1 304.3 Total Acres Allowed as Percent of Total Buildable 78.5% 78.9% 81.2% 81.9% 31.3% 78.9% 78.9% 55.2% Lands Total Acres Prohibited/ Preexisting Only/ 118.8 116.3 103.7 99.9 379.0 116.3 116.3 247.1 Caretaker Homes Total Acres Prohibited/ Preexisting Only/Caretake 21.5% 21.1% 18.8% 18.1% 68.7% 21.1% 21.1% 44.8% Homes as Percent of Total Buildable Lands Total Acres Allowed 432.6 435.1 447.7 451.5 172,4 435.1 435.1 304.3 86 HOUSING NEEDS ANALYSIS& HOUSING MARKET ANALYSIS I City of Tigard Exhibit A Chapter 7 : Residential Land Needs Analysis Exhibit A Residential Land Analysis Housing Need by Residential Designation This section compares housing need in Tigard over the next 20 years with the supply of buildable land. We begin by forecasting housing types and density levels for new housing. Table 27 below segments housing need forecasts into unit type, assuming that future housing types will be more diverse than those that currently exist in the City of Tigard. This assumption is grounded in input from the Community Advisory Committee, which strongly encouraged a diversity in housing types; trends among aging Baby Boomers and Millennia's toward smaller and more diverse housing types; and the need for increased housing affordability that often comes with smaller housing types. These assumptions also meet the state requirement that at least 50% of new residential units be attached single-family or multifamily housing. The forecast assumes that 45% of new residential development will be single-family detached housing (including mobile homes), 15% will be single-family attached housing, and 40% will be multifamily. In comparison,as of 2014-2018 estimates, 59% of Tigard's housing stock was single- family detached (including mobile homes), 8% was single-family attached, and 33% was multifamily. Table 27: Housing Units Needed in the Tigard Planning Area, 2020 to 2040 SHARE OF CITY OF UNINCORPORATED TIGARD TOTAL TIGARD WASHINGTON PLANNING COUNTY' AREA Total Housing Units Needed 100% 7,416 7,526 14,942 Single-family detached 45% 3,337 3,387 6,724 Single-family attached 15% 1,113 1,129 2,242 Multifamily2 40% 2,966 3,040 6,006 'Includes TAZs 1003 and 1004 (River Terrace South and West), 1140 (Washington Square Regional Center), 1005,1006,1011,1026,and 1034. 2includes duplex and triplex units,which City of Tigard zones as single-family housing with 1-2 attached ADUs. To compare housing need with land availability, Table 28 segments housing need by type into the City of Tigard's residential plan designations, including: • Low Density Residential: Allows single-family detached homes with up to two accessory dwelling units (limited to one detached ADU), cottage clusters, and courtyard units. • Medium Density Residential: Allows single-family detached homes with up to two accessory dwelling units (limited to one detached ADU), quads, mobile home parks, cottage clusters, courtyard units, and rowhouses. Within the Medium Density Residential designation, the R- 12 zoning district allows apartments. 88 HOUSING NEEDS ANALYSIS& HOUSING MARKET ANALYSIS I City of Tigard Exhibit A • Medium-High Density Residential: Allows single-family detached homes with up to two accessory dwelling units (limited to one detached ADU),quads, mobile home parks, cottage clusters, courtyard units, rowhouses, and apartments. • High Density Residential: Allows mobile home parks and apartments. • Mixed Use: Tigard's Mixed Use planning designations include Mixed Use Central Business District, Mixed Use Commercial, Mixed Use Employment, Mixed Use Residential, and Triangle Mixed Use (in the Tigard Triangle). In terms of new residential development, the Mixed Use Commercial and Mixed Use Employment zones allow only apartments. The Mixed Use Central Business District allows apartments and rowhouses. The Mixed Use Residential zone allows cottage clusters, apartments, courtyard units, quads, and rowhouses. Finally, the Triangle Mixed Use zone allows all housing types. Table 28: Segmentation of Needed Housing by Plan Designation, City of Tigard HOUSING TYPE CITY OF TIGARD SINGLE-FAMILY SINGLE-FAMILY MULTIFAMILY TOTAL DETACHED ATTACHED HOUSING UNITS Residential Designation Low Density 1,038 0 371 1,409 Medium Density 2,225 222 964 3,411 Medium-High Density 0 743 593 1,336 High Density 0 0 519 519 Mixed Use 74 148 519 741 Total 3,337 1,113 2,966 7,416 SHARE OF HOUSING UNITS Residential Designation Low Density 14% 0% 5% 19% Medium Density 30% 3% 13% 46% Medium-High Density 0% 10% 8% 18% High Density 0% 0% 7% 7% Mixed Use 1% 2% 7% 10% Total 45% 15% 40% 100% 2lncludes duplex and triplex units,which City of Tigard zones as single-family housing with 1-2 attached ADUs. City of Tigard I HOUSING NEEDS ANALYSIS& HOUSING MARKET ANALYSIS 89 Exhibit A Buildable Land by Residential Designation With the forecast of housing need by residential land designation, the analysis turns to an assessment of the buildable land within the City of Tigard. Chapter 6 identified vacant/partially vacant buildable land by zone in the city. The table below reflects vacant buildable land by residential designation discounting for future streets according to Metro's methodology, which assumes: • Tax lots under 3/8 of an acre will require 0% set aside for future streets; • Tax lots between 3/8 of an acre and 1 acre will require 10% set aside for future streets; and • Tax lots greater than an acre will require 10%set aside for future streets. Acreage shown in the table below also excludes any individual tax lots smaller than 3,000 square feet, which would likely not be suitable for residential development given their small size. Table 29: Net Buildable Land by Residential Designation, City of Tigard BUILDABLE ACREAGE RIGHT-OF-WAY REDUCTION NET BUILDABLE <0.38 0.38-1.0 >1.0 <0 38 0.38-1.0 >1.0 ACRES ACRES ACRES ACRFc ACRES ACRES ACRES Residential -Low Density 30.4 41.1 78.2 0.0% 10.0% 18.5% 131.2 Residential-Medium Density 29.8 19.5 190.7 0.0% 10.0% 18.5% 202.8 Residential-Medium-High Density 0.7 3.5 17.1 0.0% 10.0% 18.5% 17.8 Residential-High Density 0.0 0.0 0.0 0.0% 10.0% 18.5% 0.0 Mixed Use 7.4 12.5 57.4 0.0% 10.0% 18.5% 65.4 To determine capacity for development of new housing units, Table 30 translates buildable acres in each zoning category to housing unit capacity based on the density of development within each zoning category since Tigard's last Housing Needs Analysis was completed in 2013. Data regarding past development is derived from taxlot records, including acreage and year built, available from Metro's RLIS data. These figures include development occurring from 2014 through 2019, the last year for which data was available. For low and medium density zones, it is assumed that future development density will be 3% greater than past development due to the allowance of middle housing types. 90 HOUSING NEEDS ANALYSIS&HOUSING MARKET ANALYSIS I City of Tigard Exhibit A Table 30: Residential Capacity Estimate on Vacant and Partially Vacant Land, City of Tigard AVERAGE NET BUILDABLE DDEVELPOMENT HOUSING UNIT ACRES DENSITY SINCE 2010 CAPACITY (U NITS/ACRE) Residential -Low Density R-1 2.2 0.6 1 R-2* 0.9 2.1 2 R-3.5 13.1 1.8 23 R-4.5 117.2 5.2 609 Residential-Medium Density R-7 152.7 9.7 1,481 R-12 50.1 15.8 792 Residential -Medium-High Density R-25 17.8 39.7 706 Residential -High Density R-40 0.0 N/A 0 Mixed Use** 19.6 30.3 593 Total 4,206 Development density based on minimum lot size from City of Tigard Development Code,because no R-2 taxlots were developed over the 2014-2019 period. **Assumes that 30%of net buildable mixed-use land will develop as residential. Source:Metro RLIS Taxlot Records, November 2020, Retrieved from http://rlisdiscovery.oregonmetro.gov/?resourcelD=6# This analysis shows residential capacity for about 4,206 housing units in the City of Tigard,based on average development densities in each zoning category over the last six years, adjusted by 3% to account for middle housing. As Table 31 shows, this capacity would accommodate about 50% of needed housing in the City of Tigard over the next 20 years, based on household growth forecasts. City of Tigard HOUSING NEEDS ANALYSIS& HOUSING MARKET ANALYSIS 91 Exhibit A Table 31: Comparison of Housing Need and Housing Capacity, City of Tigard HOUSING UNITS HOUSING UNIT DIFFERENCE NEEDED CAPACITY Residential- Low Density 1,409 635 (774) Residential-Medium Density 3,411 2,272 (1,139) Residential-Medium-High Density 1,336 706 (630) Residential-High Density 519 0 (519) Mixed Use 741 593 (148) Total 7,416 4,206 (3,210) To respond to the additional housing need, the City should consider a combination of approaches, including annexing additional residential land and developing policies to encourage residential development at densities above those shown in Table 30. In 2018, the City of Tigard amended its zoning code to allow for Accessory Dwelling Units (ADUs) in all residential zones where single-family homes are allowed. Per the City's code, a single-family unit may have up to two ADUs provided that at least one is attached to the primary unit, effectively allowing for duplex and triplex development in all single-family zones. The 2018 update also added Cottage Clusters, Courtyard Units, and Quad Units as allowable uses in low density (R-3.5 and R-4.5) and medium density (R-7 and R-12) residential zones. If the City were able to encourage denser development that made greater use of these housing types in low and medium density residential zones, additional needed housing units could be accommodated through 2040. Concept planning for River Terrace 2.0 developed prototype blocks containing a mix of middle housing types that achieved densities ranging from 16 to 24 units per acre. If Tigard were able to achieve similar densities on buildable land in the city limits, greater shares of housing need in the low and middle density residential designations may be met. The next section of this chapter examines strategies for addressing housing need, including middle and affordable housing, over the next 20 years. Housing Strategies & Recommendations Affordable Housing According to 2017 estimates, about one-third of households in Tigard spend over 30% of their income on housing. The issue is most pronounced and acute at lower incomes: three-quarters 92 HOUSING NEEDS ANALYSIS&HOUSING MARKET ANALYSIS I City of Tigard Exhibit A of Tigard households with incomes under 60% of the area median income (or about $55,000 for a family of four) have trouble affording housing. Twenty-year forecasts show a continued need for housing that is affordable to lower-income households. Through 2040, about 24% of housing need generated in Tigard and adjacent areas in unincorporated Washington County will be among families with income levels under 50% of the median income (or about $46,050 for a family of 4). While market-rate middle housing is often more affordable than single-family detached homes, it is still unlikely to be affordable for the lowest-income groups. The majority of these households are not able to afford market-rate units and would be eligible for affordable housing developed through government assistance or other forms of subsidy. Affordable housing developers interviewed for this study were generally supportive of steps Tigard has taken to date to encourage affordable development. Development barriers they identified included System Development Charges (SDCs) and other fees related to development; lack of land availability and competition for land, including from for-profit developers; and limited funding streams to support affordable housing development. Considering housing types, rental housing developers expressed a preference for apartment development, typically with at least 50 units, to achieve rent levels required by funding streams including the Low Income Housing Tax Credit (LIHTC) program. For affordable homeownership, housing types varied and included a variety of middle housing types: duplexes, triplexes, quads, cottage housing, and rowhouses. Strategies Tigard should explore to better encourage affordable housing development and access include: • Develop an Affordable Homeownership Program Tigard should devote CDBG funding and/or Construction Excise Tax (CET) revenue to providing down payment assistance for income-eligible first-time homebuyers. Through partnership with an organization like Proud Ground, for-sale units purchased using this funding would remain in the affordable housing stock in perpetuity. • Acquire Land for Affordable Homeownership or Rental Housing Construction When the City has opportunities to purchase vacant residential land,use CDBG,CET funding, or other revenue streams to buy properties suitable for affordable housing construction.This strategy could also be accomplished through establishment of a land bank through a partnership with outside agencies or partners. Where possible, the City should make sites available at free or reduced costs to a nonprofit developer dedicated to affordable homeownership, such as Habitat for Humanity. This approach has the potential to provide both affordable and missing middle housing given that Habitat for Humanity often develops 2-4 unit structures and rowhouses. City-owned land could also be used for affordable rental housing development,with the City holding the property while their development partner arranges financing. Land could be sold at a reduced rate to reduce development costs. For larger sites, the City could develop high-level concept plans and solicit development partners through an RFQ or RFP process, selecting the most capable developer(s) to build the envisioned housing. City of Tigard I HOUSING NEEDS ANALYSIS& HOUSING MARKET ANALYSIS 93 Exhibit A • Affirmative Marketing and Fair Housing Efforts The City should ensure that affordable homeownership programs are affirmatively marketed (either by the city or its partner agencies) to prospective residents of all races and ethnicities. Homeownership data shows that African American and Latino householders are considerably less likely to own their homes than white, non-Latino households. Washington County's most recent Analysis of Impediments to Fair Housing Choice also indicated disparities in access to home loans, with denial rates being highest for African American, Latino, Native American, and Native Hawaiian and Pacific Islander households. Interviewees also noted that language can be a barrier to obtaining information about housing programs for people with limited English proficiency. The City and its partners could also consider partnering with regional agencies and community organizations that serve African American and Latino residents to provide information and outreach about Tigard programs. In addition to affirmative marketing, the City of Tigard should promote fair housing rights, including source of income protection, and related resources available to residents. For example, the City could offer fair housing education or Q&A forums to residents and/or landlords or provide information about fair housing rights and resources through a table at city events. The City could also develop a webpage dedicated to fair housing with links to agencies that provide housing discrimination complaint investigation. • Develop a Landlord Risk Mitigation Fund Affordable housing developers identified past evictions and poor credit history as a barrier many low- and moderate-income households, including those exiting homelessness, face in obtaining rental housing on the private, non-subsidized market. To assist these households in overcoming these barriers, the City of Tigard should consider a risk mitigation fund that insures landlords against lost rent or excessive damages beyond the security deposit, with reimbursement limits set in advance. Some risk mitigation funds also provide incentives for landlords that rent to individuals or families who were previously homeless. The fund could be administered by the City or through a partner agency. • Consider Funding ADA Accessibility Modifications Consider providing a small pool of funding from CDBG, CET revenue, or other revenue streams to support ADA accessibility modifications for seniors or people with disabilities. Habitat for Humanity notes that most of their home repair requests, including from Tigard, are for home safety and accessibility improvements (wheelchair ramps, grab bars, non-slip flooring, etc.) and that most can be completed for relatively low costs using skilled volunteer labor. Additional funds would allow Habitat to expand provision of modifications in Tigard. • Continue System Development Charge (SDC) Waivers and Continue Advocacy for SDC Waivers by Washington County Continue to provide SDC waivers for affordable housing development and property tax exemptions for non-profit developers in Tigard. Working with other municipalities and the county, explore the possibility for SDC waivers by Washington County for affordable housing development. Developers note that while Tigard's waivers are beneficial, additional fee waivers at the county level would be helpful. • Analyze Feasibility of Incentive Zoning Strategies The City of Tigard should analyze the feasibility of incentive zoning strategies recommended in the 2019 Tigard Housing Strategy Implementation Plan, including density bonuses for affordable housing, reduced parking requirements for small-footprint housing or affordable housing near transit, and an exemption from ground-floor commercial space requirements 94 HOUSING NEEDS ANALYSIS& HOUSING MARKET ANALYSIS City of Tigard Exhibit A for affordable housing in mixed-use zones.The City should also continue to track mandatory inclusionary zoning policies enacted by the City of Portland and other Oregon cities to determine if this may be an approach Tigard should consider in the future. • Consider Use of Affordable Housing Bonds Under Oregon law, the City of Tigard can issue affordable housing bonds as a vehicle to generate funding for housing initiatives the City is pursuing. Private Activity Bonds (PABs) can leverage 4% Low Income Housing Tax Credits to supplement funding available for affordable rental housing development. PABs are intended to finance private sector activities that further a public purpose and must be repaid, thus are suitable for low-cost loan programs but not for grants. For example, in 2019, the Housing Authority of Clackamas County issued $34 million in PABs to fund Rosewood Terrace Apartments, a $65 million project providing 212 units of affordable rental housing to households under 60% AMI with a 60-year affordability period. The City of Tigard could also issue a General Obligation Bond secured by local tax revenues, which does not require that receiving projects generate revenue to repay the debt. Funds could be spent on affordable housing development or renovation, including on the activities described above. The City should consider bonds as a possible funding source to grow its affordable housing development capacity. • Target Use of Affordable Housing Funds in Development/Redevelopment Area The City of Tigard should consider the targeted use of CET revenue to incentivize affordable housing construction in key development areas such as River Terrace 2.0 and the Washington Square Regional Center. Targeted use of affordable housing funds should be coupled with established and well- communicated goals for affordable housing development in these areas. Additionally, the City should make targeted efforts to recruit developers that will achieve this vision. • Market City Sites to Low Income Housing Tax Credit (LIHTC) Developers The City of Tigard should build capacity to maintain and develop connections with LIHTC developers and Oregon Housing and Community Service (OHCS), annually review the OAP, and work proactively to promote any city sites with scoring advantages to prospective developers. For example, OHCS's 2019 QAP awards competitive points for 9% LIHTC applications on the bases of a site's level of severe rent burden; high walk scores; proximity to transit, high-performing elementary schools or other opportunity criteria; location in an Opportunity Zone or OCT, and others. If the City inventoried available parcels and which of these criteria they meet, the City could directly, or through a real estate broker, market these sites to LIHTC developers. This reduced the time and expense developers put into scouting sites and communicates Tigard's commitment to bringing in LIHTC housing. This program could be combined with the strategy of a land bank, should the City pursue that option. Missing Middle Housing Middle housing, including accessory dwelling units, duplexes and triplexes (zoned in Tigard as attached ADUs), quads, cottage clusters, courtyard units, and rowhouses, are smaller, more compact housing forms on smaller lots - and inherently more affordable than detached single- family dwellings. The Small Housing/Middle Housing Typology analysis completed as part of Tigard's River Terrace 2.0 Concept Plan notes that affordable housing developers may be the first to benefit from the ability to build a wider range of housing types. Representatives from City of Tigard I HOUSING NEEDS ANALYSIS& HOUSING MARKET ANALYSIS 95 Exhibit A Proud Ground and Habitat for Humanity confirm this idea, noting that they frequently work with middle housing types. However, as the Small Housing Typology report notes, it will take additional efforts to change the for-profit housing industry's approach, which currently favors single-family for-sale dwellings due to phasing capabilities and lesser risk factors. Strategies Tigard should explore to better encourage middle housing development, including affordable middle housing development, include: • Revise System Development Charge (SDC) Structure Tigard should revise its SDC structure to reflect different costs for different unit types and sizes, thereby reducing charges for smaller home types. Under the revised structure, SDCs would vary by square footage, with larger homes having higher SDCs. • Develop a City-Supported Loan Program for Small Housing Types Using CET funds, affordable housing bonds,or other funding, the City could fund a revolving short-term construction or bridge loan fund for small developers building affordable or market-rate middle housing who are not otherwise able to access more conventional forms of financing. • Develop a Pre-Permitted Model Project for Desired Housing Type(s) Develop a pre-permitted model project similar to Portland's Living Smart Program, which included a design competition for small-lot infill development. Winning designs were developed into pre-approved, permit-ready, freely-available house plans eligible for expedited permitting by the City of Portland. Tigard could use this approach to develop models that address specific design goals, such as designs for a quadplex with two affordable units. Identifying housing types or designs for preapproval could save time and costs for developing desired housing types. • Market Middle Housing Opportunity to Small Housing Developers Similar to the recommendation related to outreach to LIHTC developers, Tigard should develop relationships with affordable and market-rate developers with a history of successful middle housing development in metro Portland. Package information about available development assistance (SDC waivers, loan programs, etc.) and vision for middle housing in the city, including in prime areas like River Terrace 2.0, the Washington Square Regional Center, or the city's urban renewal districts. • Incentivize Attached or Detached ADU Development on Existing Single-Family Home Lots Tigard should consider extending the SDC exemption for accessory dwelling units of 1,000 square feet or less past its sunset date or making the exemption permanent as the City of Portland did in 2018. Tigard should also collaborate with local nonprofits such as Craft3 to provide affordable loans to homeowners interested in adding an ADU to existing single-family home lots. Craft3's loan programs offer interest rates that vary by household income, with the lowest rates for homeowners who agree to rent their ADU at an affordable rate to households with incomes less than 80% of the area median. 96 HOUSING NEEDS ANALYSIS&HOUSING MARKET ANALYSIS I City of Tigard Exhibit A Comprehensive Plan Policies The City of Tigard's Comprehensive Plan outlines goals and policies for the provision of housing. To reflect up-to-date housing policies, needs,and conditions in the city, recommended edits are shown below: Goal 10.1: Provide opportunities for a variety of housing types at a range of price levels to meet the diverse housing needs of current and future City residents. Policies: 1. The City shall adopt and maintain land use policies, codes, and standards that provide opportunities to develop a variety of housing types that meet the needs, preferences, and financial capabilities of Tigard's present and future residents. 2. The City's land use program shall be consistent with applicable state and federal laws. 3. The City shall support housing affordability, special-needs housing, ownership opportunities, and housing rehabilitation through programs administered by the state, Washington County, nonprofit agencies, and Metro. 4. The City shall adopt policies and develop funding resources that support transitioning unhoused residents into permanent housing through a full spectrum of supportive shelter and housing options. These policies should support trauma- informed approaches to rehousing that are most likely to result in residents' long- term success and housing stability. 5. The City shall continue to develop,dedicate,and administer funding resources (such as the Construction Excise Tax and others) to support affordable housing for rental and homeownership, including new construction and preservation of existing affordable housing. 6. The City shall adopt and maintain land use regulations that provide opportunities to develop housing for persons with special needs. The scale, design, intensity, and operation of these housing types shall be compatible with other land uses and located in proximity to supporting community services and activities. 7. The City shall provide for high and medium density housing in the areas such as town centers (Downtown), regional centers (Washington Square), the Tigard Triangle, and along transit corridors where employment opportunities, commercial services, transit, and other public services necessary to support higher population densities are either present or planned for in the future. 8. The City shall provide opportunity for a mix and range of housing types and sizes in all low- and medium-density residential areas, including single detached houses, accessory dwelling units, quads, cottage clusters, courtyard units, and rowhouses. 9. The City shall make affirmative efforts to further fair housing and equitable access to community resources for all residents. In doing so, the City shall comply with federal and state housing laws, including the Fair Housing Act, as well as applicable implementing administrative rules and regulations. City of Tigard I HOUSING NEEDS ANALYSIS& HOUSING MARKET ANALYSIS 97 Exhibit A 10. The City shall enact policies that provide for equitable housing opportunity without discrimination or disparity based on tenure, familial status, or household composition of the occupants of any type of housing. 11. The City shall encourage the development of mixed-income neighborhoods and ensure opportunity for economic mobility and intergenerational wealth through affordahle homeownership programc. 12. The City shall implement findings and recommendations from the 2013 Tigard Housing Strategics Report 2021 Tigard Housing Needs Analysis and Housing Market Analysis and from the 2019 Affordable Housing Plan. ss incorporated in the Recommended Action Ms:Nr/39 described in thin Plan and further detailed in the- Housing Strategics Piaport. Recommended Action Measures: i. Update the City's Buildable Land Inventory regularly to monitor the rate of development and the availability of residential land. ii. Monitor regional and local housing trends and periodically review and update the City's land use policies and regulations accordingly to provide the range of housing development opportunities needed by Tigard's residents. iii. Allow manufactured homes on individual lots subject to standards to ensure their compatibility with single-family residential housing types. iv. Encourage homeowners to add accessory dwelling units to their properties through incentives such as education, fee waivers, and resource connections. v. Increase opportunities for higher-density mixed-use development in the Downtown Urban Renewal District, Washington Square Regional Center, Tigard Triangle, and designated Corridors to enable residential uses to be located in close proximity to retail, employment, and public facilities;such as transit and parks. vi. Provide incentives to encourage the development of a range of housing choices, including affordable housing units at transit-supportive densities near existing and planned transit routes, and/or in proximity to major activity centers such as employment, commercial areas, schools, and recreation areas. vii. Provide incentives to encourage affordable middle housing development in low-and medium-density residential areas throughout the city, including in areas of new development and redevelopment. viii. Lower development costs for affordable housing by subsidizing City fees and charges, giving higher priority to housing projects close to major activity centers and transit services and/or providing additional incentives to their development. ix. Amend City System Development Charge (SDC) structure to allow for tiered fees based on home size. x. Communicate the availability of local, state, and federal affordable housing incentives and subsidies to those involved in the housing industry. xi. Participate with other Portland Metropolitan area jurisdictions and agencies to address both local and regional affordable and workforce housing needs. 98 HOUSING NEEDS ANALYSIS&HOUSING MARKET ANALYSIS I City of Tigard Exhibit A xii. Develop and implement strategies to encourage affordable housing in the City's regional (Washington Square) and town centers (Downtown) and other areas designated for mixed use and high residential densities. xiii. Coordinate with the Washington County Housing Authority, private non-profit housing corporations, H.U.D. and other federal, state, and regional agencies for the provision of subsidized housing programs in Tigard. xiv. Increase Tigard's diversity of housing types through financial incentives and regulatory tools such as density transfer and planned development standards; transit, and vertical oriented housing tax credits; reduced parking requirements; height and density bonuses;voluntary inclusionary zoning, etc. xv. Work with Metro and Washington County to determine the City's projected regional share of affordable, workforce, and special needs housing and to develop and implement strategies to accommodate projected local and regional needs. xvi. Work with the Washington County Housing Authority,and non-profit corporations to encourage preservation or replacement of affordable and special needs use housing, including housing for seniors, housing accessible to people with disabilities, and housing for people experiencing homelessness, when: A. redevelopment occurs in older areas of the City; B. single family dwellings are upgraded for sale or higher rent; or C. apartments are converted to condominiums or to rentals that are more expensive. xvii. Encourage the development of affordable housing when opportunities arise to redevelop public property and private institutional lands. xviii. Support affordable housing development through land acquisition, development or participation in a land bank. xix. Provide opportunities for affordable home ownership by: A. Adapting the City's land use program to allow for the development of a variety of residential building types and ownership arrangements; B. Supporting the activities of non-profit housing providers such as Habitat for Humanity, community land trusts, and others; a C. Supporting the efforts of Washington County Housing Authority, the Community Housing Fund,and developers of affordable housing to utilize a variety of public and private subsidies and incentives7; D. Using dedicated funding streams such as CDBG, CET revenue, or other available funding to provide homebuyer assistance, such as down payment or closing cost assistance; and E. Affirmatively marketing available home ownership programs to all prospective residents, including residents with limited English proficiency. xx. Support housing types, such as shared housing, accessory dwelling units, smaller homes, cottage clusters, adult foster homes, and other assisted living arrangements that allow the elderly to remain in their community as their needs change. Support accessibility modifications to allow the elderly and people with disabilities to remain in their homes if desired. City of Tigard 1 HOUSING NEEDS ANALYSIS& HOUSING MARKET ANALYSIS 99 Exhibit A xxi. Support development of affordable rental housing through partnerships with the Community Housing Fund and other affordable housing providers. Engage with Low Income Housing Tax Credit developers to attract LIHTC development in Tigard. Goal 10.2: Maintain a high level of residential livability. Policies: 1. The City shall adopt measures to protect and enhance the quality and integrity of its residential neighborhoods. 2. The City shall seek to provide multi-modal transportation access from residential neighborhoods to transit stops, commercial services, employment, and other activity centers. 3. The City shall commit to improving and maintaining the quality of community life, public safety, education, transportation, community design, and equitable housing access; (a strong economy, parks and recreation, etc.) as the bases basis for sustaining a high-quality residential environment. 4. The City shall protect the habitability and quality of its housing stock through code inspection services and enforcement. 5. The City shall encourage housing that supports sustainable development patterns and climate change preparedness and mitigation by promoting the efficient use of land, conservation of natural resources, easy access to public transit and other efficient modes of transportation, easy access to services and parks, resource- efficient design and construction, and the use of renewable energy resources. 6. The City shall promote innovative and well-designed housing development by allowing flexibility in standards through application of planned developments-and community design standards for multi family housing. 7. The City shall ensure that residential uses densities are appropriately related to locational characteristics and site conditions such as the presence of natural hazards and natural resources, availability of public facilities and services, and existing land use patterns. 8. The City shall require measures to mitigate the adverse impacts from non-residential differing, or more intense, land uses on residential living environments, such as: A. Reduction of off-site impacts between residential zones; orderly transitions from one residential density to another; B. protection of existing vegetation, natural resources and provision of open space areas; and C. installation of landscaping and effective buffering and screening. 9. The City shall require infill development to be designed to address compatibility with existing neighborhoods. 10. The City shall regulate home-based businesses (occupations) to prevent adverse impacts on residential areas. 100 HOUSING NEEDS ANALYSIS& HOUSING MARKET ANALYSIS I City of Tigard Exhibit A Recommended Action Measures: i. Encourage future housing development on designated buildable lands in areas where public facilities and services can be most readily provided. ii. Engage Tigard's residents citizens in public policy decisions, programs, and projects to improve neighborhood quality of life such as improving public safety; providing high quality public services; enhancing mobility and easy access to activity centers; improving community design; providing parks and open space; and promoting a green environment. Offer translation and interpretation to ensure residents with limited English proficiency can engage in public policy decisions, programs, and projects. iii. Promote Planned Development,density transfer,site and building design standards, and other regulations to protect natural areas preserve open spaces and enhance Tigard's residential environment. iv. Develop standards to enhance livability for those living in housing adjacent to major streets such as appropriate setbacks, buffering and screening, noise mitigation, building orientation, landscaping,etc. v. Update and maintain the City's land use regulations, engineering standards, and building codes to be consistent with federal and state requirements and responsive to current conditions and anticipated development trends. vi. Promote the maintenance of habitable housing in Tigard through Housing Inspection and Enhanced Housing Safety programs. Contribute to an Emergency Develop regulations,standards,educational tools,and incentives to induce property owners to maintain residential property and to rehabilitate or redevelop deteriorated or marginally habitable residential properties. vii. Encourage those who must make habitability and safety improvements to their homes to access low interest loan and grant programs offered by the Washington County Housing Rehabilitation Program. viii. Develop resources or coordinate access to existing resources to assist those who lose housing due to safety/habitability problems to obtain suitable alternative housing. -- -- ' - - - e-- --- - _-e - - T. - .•. - - - -- - duc to safety/habitability problems. ix. Promote the habitability and quality of existing housing stock through means such as effective code enforcement and code violation follow-through, habitability standards, and rental licensing and inspection. Enforce code to abate public health and safety problems associated with the unlawful use of residential properties. x. Establish and maintain standards to regulate non-residential accessory structures to protect the character and quality of existing neighborhoods. xi. Provide incentives and technical assistance to make resource-efficient (green) technologies and materials part of new development and the remodeling or retrofitting of existing development. Opportunities include but are not limited to: energy conservation, water re-use, water quality enhancements, green building materials, solar heating/cooling, and drought tolerant landscaping, etc. xii. Adopt and maintain clear and objective approval standards, criteria, conditions, and review processes for needed housing per state requirements. City of Tigard I HOUSING NEEDS ANALYSIS& HOUSING MARKET ANALYSIS 101 Exhibit A xiii. Develop partnerships with neighboring jurisdictions on multijurisdictional code enforcement issues. xiv. Provide incentives to encourage information about accessible design practices in to housing development dcvelopers to help ensure that new housing is accessible to people with physical and mobility limitations, including aging residents. xv. Provide informational materials and other technical assistance to housing developers to ensure that residential development procedures and processes are as easy to understand and navigate as possible. xvi. Provide opportunities for city planning staff to obtain training and knowledge of housing development issues to ensure they can continue to effectively implement housing goals, policies, and action measures. xvii. Provide incentives to encourage all residential developers to incorporate housing affordable to low-and moderate-income residents in their proposed developments. xviii. Encourage large employers to consider implementing employer-assisted housing programs. 102 HOUSING NEEDS ANALYSIS& HOUSING MARKET ANALYSIS I City of Tigard Exhibit B ?l T 1u ARU City of Tigard Proposed Comprehensive Plan Amendments (CPA2021-00002) Tigard Comprehensive Plan Text Amendments City Council — May 25, 2021 Please contact Schuyler Warren,Senior Planner,at 503-718-2437 or with questions or comments about the proposed code amendments or the code adoption process. Exhibit B This page left intentionally blank. Exhibit B [note- the following sections completely replace the existing Comprehensive Plan text starting with "Capacity for Future Housing Development"on page 10-3 and ending at Goal 10.1 on page 10-7] Capacity for Future Housing Development An analysis of housing needs and capacity conducted in 2021 found the capacin to build approximately 4.200 new housing units on buildable lands zoned for residential development within the City. compared to an estimated need for lust over 7.400 new units in the cit) during the next 20 years_ and an additional need for about 7.500 housing units in adiacent areas of unincorporated Washington County.The analysis also found that the City's zoning allows for the opportunity for more than 50%of new housing to be constructed as single- family attached or multi-family housing,consistent with the Metropolitan Housing Rule. Affordable Housing/ Special Needs Housing Metro also addresses affordable housing in Title 7 of its Functional Pian. Title 7 includes voluntary affordable housing production _goals and other affordable housing strategies. Tigard has undertaken a variety of voluntar. actions to sunnort and enhance opportunities for affordable housing.At the city level. initiatives to lower development costs for dedicated affordable housing include System Development Charge (SDC) waivers and tax exemptions for affordable properties owned by nonnrofit organizations.In many cases, these exemptions can be combined with other subsidies such as Lnw-Income Housing Tax Credits (LIHTC) to achieve a suitable financing structure for affordable development. Tigard adopted a Construction Excise Tax(CET)in 2020 that will generate revenue to support local affordable housing initiatives. and as of 2021. Tigard is now a joint entitlement city and will receive Community Development Block Grant(CDBG)funds annually from the U.S.Department of Housing and Urban Development.The City also allocates funds from its two Tax Increment Financing(TIF)Districts—Downtown and Tigard Triangle—toward affordable housing.The Tigard Triangle has an Enuitable Development Strategies policies that guides investment of TIF funds.which specifically prioritizes affordable hnnsinw development. Among the organizations involved in low-income housing. special needs housing, and emergency housing.are Community Partners for Affordable Housing.Luke-Dorf.the Good Neighbor Center. and others.This Plan includes a varierof policies to further the development of affordable and special needs housing in Tigard.The City's Development Code also includes provisions that can act as incentives and/or create opportunities to help meet these housing needs. Key Findings The following findings are based on a Housing Needs Analysis and Housing Market Analysis prepared for the city in 2021.Data included in the findings is based on a combination of Census data from 2010,Five-Year American Community Survey (ACS)data from 2014-2018. and other data sources noted below„ Exhibit 8 Current .' :.ulation Trends • The 2021 Housing Needs Analysis and Housing Market Analy sis provide the basis for the findings and policy recommendations in this element of the Comprehensive Plan. • Tigard was the fifth lar:!est city by population in the Clackamas, Multnomah, and Washington County area, according to the 2021 population estimates by Metro. It represents about 3%of the total population within the three primary metro counties. • Tigard grew by 6.857 ;people between 2000 and 2010, or 17%. This is somewhat slower than growth in Washington Count of 19%during that period. but greater than growth in the state of Oreyon of 12%. • From 2010 to the 2014-2018 5-Year ACS estimate. Tigard grew by 4.333 people. or 9%. This is roughly similar to the growth rate in Washington County (10%3 and the Portland- Vancouver-Hillsboro metro area(9%1.It is above the statewide growth rate of 6%. • Tigard was home to over 52.000 neonle and 21.000 households as of 2014-2018 5-Year ACS estimates. Families represent 65% of all households. This is very similar to the metro area ftoure of 64%family households.and Washington County's 68%. • Tigard's average household size as of the 2014-2018 Five-Year ACS was 2.47 persons. relatively unchanged from 2.49 as of the 2010 Census. This figure is slightly lower than the average household size in Washington County(7.66) and the metro area(2.57). • Tigard's median household income was $75.795 as of the 2014-2018 Five-Year ACS. This pure is 7%higher than the Portland-Vancouver-Hillsboro metro area median ($70.7241 but 3%below the Washington County median[578.0101. • Median income in the cit. prew 28% between 2010 and the 2014-2018 estimate. Median income ¢-rowth was lower in the county (at 17%) and higher in the metro area (33°M_ resulting in medians across the three geographies that were closer to one another in 2014-2018 than in 2010. • An estimated 9% of the nonulation in Tigard lives under the poverty level. according ) 2014-2018 Five-Year ACS data. The poverty rate for Tigard households is higher than average among females(10.5%1 and those age 18 to 34 (14.7%l. Current Housing Trends and N eedr • An estimated 58% of housing units are ownership units, while an estimated 42% of housir g units are rental units, according to 2014-2018 Five-Year ACS data. Tip>ard's homeownership rate is slightly lower that of Washington Conn!p (61%) and the Portland- Vancouver-Hillsboro metro area(63%). • As of 2014-2018 Five-Year ACS data. about 95% of ownership units are single-family homes (detached or attached), while about 63%of rental units are in structures of 5 units or more. • In rveneral, there is a need for some less e'pensive ownership units and rental units.This is not uncommon as the lowest income households struggle to find housing. of any type that keens costs at 30%of gFnss income. Exhibit B • Among prospective ownership households. there is a solid supply of upper-mid-priced housing. This analysis estimates the need for more for-sale housing across all income ranges over the next 20 years. with specific emphasis on affordable homeownership nortunities and home accessibility modifications to allow seniors to age-in-place. • There is a general need for rental units at the lower and middle price levels.According to U.S. Department of Housing and Urban Development 2013-2017 5-Year Comprehensive Housing Affordability Strategy data, about three-fourths of renters with low incomes spend more than 30%of their income on housing.An emphasis on housing affordability would improve options for existing renters in Tigard and better housing need over the next 20 years. • The housing vacancy rate in Tigard is low (3.4%). indicating a tight market where residents may have difficulty findimr available housing. This rate is lower than that of Washington Count?; (4.4%). the metro area (5.5%) and the state (9.1%). according to 2014-2018 Five-Year ACS estimates. • Vacancy is very low for both homeownershin and rental units in Tigard. although slightly lower for for-sale housing. The 2014-2018 Fire-Year ACS data estimated only about 237 units available for-sale or rent in Tigard. Future Housing Demand and Land Sun ly • There is a need for over 7.400 new housing units in the City of Tigard by 2040. with a stronger emphasis on new ownership units. • It is projected that in coming decades a greater share of housing will be attached types. including attached single family. Attached units are projected to meet nearly 55% of future need, including single-family attached units (projected to meet 15% of future need) and multifamily units (projected to meet 40%of future need).These will include a mix of rental and ownership housing • About 40% of future need is proiected to be single family detached homes. which are expected to be predominately ownership housing, • Under 1% of new needed units are projected to be manufactured home units in manufactured home parks, which meet the needs of some low-income households for both ownership and rental. • There is the capacity (as of 2021) to build approximately 4.206 new housing; units on buildable lands zoned for residential development (residential and "mixed use. residential" zones) within the City of Tim-Jrtl, There i5 additional residential canacity in. adjacent areas in unincorporated Washington County. including River Terrace 2.0 and the Washington Square Regional Center. • The supply of buildable land zoned for residential use in Tigard provides the opportunity to develop more than 50% of new housing as single-family attached or multi-family units. consistent with the Metropolitan Housing Rule. • City zoning provides the opportunity to construct housing at an average overall density of 10 units per net developable acre. consistent with tea uirements of the Metropolitan Housing Rule. Exhibit B • The City's Comprehensive Plan policies and Development Code provide for the onnortunity to meet a full range of housing choices and needs. However. a number of action measures are recommended in this Plan to enhance those opportunities._ Goal 10.1: Provide opportunities for a variety of housing types at a range of price levels to meet the diverse housing needs of current and future City residents. Policies: 1. The City shall adopt and maintain land use policies, codes, and standards that provide opportunities to develop a variety of housing types that meet the needs, preferences, and financial capabilities of Tigard's present and future residents. 2. The City's land use program shall be consistent with applicable state and federal laws. 3. The City shall support housing affordability, special-needs housing, ownership opportunities, and housing rehabilitation through programs administered by the state, Washington County,nonprofit agencies,and Metro. 4. The City shall adopt policies and develop funding resources that support transitioning unhoused residents into permanent housing through a full spectrum of supportive shelter and housing options. These policies should support trauma-informed annroaches to rehousing that are most likely to result in residents'long-term success and housing stability. 5. The City shall continue to develop. dedicate. and administer funding resources (such as the Construction Excise Tax and othersl to support affordable housing for rental and homeownership, including new construction and preservation of existing affordable housing. 6. The City shall adopt and maintain land use regulations that provide opportunities to develop housing for persons with special needs. The scale, design, intensity, and operation of these housing types shall be compatible with other land uses and located in proximity to supporting community services and activities. 7. The City shall provide for high and medium density housing in the areas such as town centers (Downtown),regional centers (Washington Square),the Tigard Triangle. and along transit corridors where employment opportunities, commercial services, transit, and other public services necessary to support higher population densities are either present or planned for in the future. 8. The City shall provide opportunity for a mix and range of housing types and sizes in all low- and medium-density residential areas. including single detached houses. accessory dwelling- units. quads. cottage clusters. courtyard units. and rowhouses. 9. The City shall make affirmative efforts to further fair housing and Pgtitable access to community resources for all residents. In doing so. the City shall comply with federal and state housing laws,including the Fair Housing Act, as well as applicable implementing administrative rules and regulations. Exhibit B 10. The City shall enact policies that provide for eauitable housing opportunity without discrimination or disparity based on tenure. familial status. or household composition of the occupants of any tune of housing, 11. The City shall encourage the development of mixed-income neighborhoods and ensure opportunity for economic mobility and intergenerational wealth through affordable homeownership programs. 12. The City shall implement findings and recommendations from the 2013 Tigard Housing Strategic; Rcport 2021 Tigard Housing Needs Analysis and Housing Market Analysis and from the 2019 Affordable Housing Plan. at u7W0rper.tcd in Recommended Action Measures: i. Update the City's Buildable Land Inventory regularly to monitor the rate of development and the availability of residential land. ii. Monitor regional and local housing trends and periodically review and update the City's land use policies and regulations accordingly to provide the range of housing development opportunities needed by Tigard's residents. iii. Allow manufactured homes on individual lots subject to standards to ensure their compatibility with single-family residential housing types. iv. Encourage homeowners to add accessory dwelling units to their properties through incentives such as education.fee waivers.and resource connections., v. Increase opportunities for higher-density mixed-use development in the Downtown Urban Renewal District, Washington Square Regional Center, Tigard Triangle, and designated Corridors to enable residential uses to be located in close proximity to retail, employment,and public facilities;such as transit and parks. vi. Provide incentives to encourage the development of a range of housing choices, including affordable housing units at transit-supportive densities near existing and planned transit routes, and/or in proximity to major activity centers such as employment,commercial areas,schools,and recreation areas. vii. Provide incentives to encourage affordable middle housing development in low- and medium-density residential areas throughout the city.. including in areas of new development and redevelopment. viii. Lower development costs for affordable housing by subsidizing City fees and charges, giving higher priority to housing projects close to major activity centers and transit services and/or providing additional incentives to their development. ix. Amend City System Development Charge fSDC1 structure to allow for tiered fees based on home size. x. Communicate the availability of local, state, and federal affordable housing incentives and subsidies to those involved in the housing industry. xi. Participate with other Portland Metropolitan area jurisdictions and agencies to address both local and regional affordable and workforce housing needs. Exhibit B xii. Develop and implement strategies to encourage affordable housing in the City's regional (Washington Square) and town centers (Downtown) and other areas designated for mixed use and high residential densities. xiii. Coordinate with the Washington County Housing Authority, private non-profit housing corporations, H.U.D. and other federal, state, and regional agencies for the provision of subsidized housing programs in Tigard. xiv. Increase Tigard's diversity of housing types through financial incentives and regulatory tools such as density transfer and planned development standards; transit, and vertical oriented housing tax credits;reduced parking requirements;height and density bonuses; voluntary inclusionary zoning,etc. xv. Work with Metro and Washington County to determine the City's projected regional share of affordable, workforce, and special needs housing and to develop and implement strategies to accommodate projected local and regional needs. xvi. Work with the Washington County Housing Authority;and non-profit corporations to encourage preservation or replacement of affordable and special needs ese housing, including housing for seniors, housing accessible to people with disabilities, and housing for people experiencing homelessness.when: A. redevelopment occurs in older areas of the City; B. single family dwellings are upgraded for sale or higher rent;or C. apartments are converted to condominiums or to rentals that are more expensive. xvii. Encourage the development of affordable housing when opportunities arise to redevelop public property and private institutional lands. xviii. Support affordable housing development through land acgjjisition. development or narticination in a land bank. xix. Provide opportunities for affordable home ownership by: A. Adapting the City's land use program to allow for the development of a variety of residential building types and ownership arrangements; B. Supporting the activities of non-profit housing providers such as Habitat for Humanity,community land trusts,and others;tutel C. Supporting the efforts of Washington County Housing Authority, the Community Housing Fund, and developers of affordable housing to utilize a variety of public and private subsidies and incentives..-; D.Using dedicated funding streams such as CDBG. CET revenue, or other available funding to provide homebuyer assistance. such as down payment or closing cost assistance:and E.Affirmatively marketing available home ownership nroprams to all prospective residents. including residents with limited English proficiency. xx. Support housing types, such as shared housing, accessory dwelling units, smaller homes, cottage clusters,adult foster homes, and other assisted living arrangements that allow the elderly to remain in their community as their needs change. Support Exhibit B accessibility modifications to allow the elderly and people with disabilities to remain in their homes if desired. xxi. Support development of affordable rental housing through partnerships with the Community Housing Fund and other affordable housing providers. Engage with Low Income Housing Tax CrPriit developers to attract LIHTC development in Goal 10.2: Maintain a high level of residential livability. Policies: 1. The City shall adopt measures to protect and enhance the quality and integrity of its residential neighborhoods. 2. The City shall seek to provide multi-modal transportation access from residential neighborhoods to transit stops, commercial services, employment, and other activity centers. 3. The City shall commit to improving and maintaining the quality of community life, public safety, education, transportation, community design, and eouitable housing access; (a strong economy,parks and recreai-z_ :tia) as the bases s-for sustaining a high-quality residential environment. 4. The City shall protect the habitability and quality of its housing stock through code inspection services and enforcement. 5. The City shall encourage housing that supports sustainable development patterns and climate change prrparPdness and miti ag tion by promoting the efficient use of land, conservation of natural resources, easy access to public transit and other efficient modes of transportation, easy access to services and parks, resource-efficient design and construction,and the use of renewable energy resources. 6. The City shall promote innovative and well-designed housing development y allowing flexibility in standards through application of planned developments-afil 7. The City shall ensure that residential uses densities—are appropriately related to locational characteristics and site conditions such as the presence of natural hazards and natural resources, availability of public facilities and services, and existing land use patterns. 8. The City shall require measures to mitigate the adverse impacts from non-residential differing,or more intense,land uses on residential living environments,such as: A. Reduction of off-site impacts between residential zones: erderly tran3itic ii ;Xx:,flt rcaidcnnal d.3iiy to another; B. protection of existing vegetation, natural resources and provision of open space areas;and C. installation of landscaping and effective buffering and screening. 9. The City shall require infill development to be designed to address compatibility with existing neighborhoods. Exhibii B 10. The City shall regulate home-based businesses (occupations) to prevent adverse impacts on residential areas. Recommended Action Measures: i. Encourage future housing development on designated buildable lands in areas where public facilities and services can be most readily provided. u. Engage Tigard's residents citizens in public policy decisions,programs,and projects to improve neighborhood quality of life such as improving public safety; providing high quality public services;enhancing mobility and easy access to activity centers;improving community design; providing parks and open space; and promoting a green environment. Offer translation and interpretation to ensure residents with limited English proficiency can eng a in public nolicv decisions, programs. and projects. iii. Promote Planned Development, density transfer, site and building design standards, and other regulations to protect natural areas preserve open spaces and enhance Tigard's residential environment. iv. Develop standards to enhance livability for those living in housing adjacent to major streets such as appropriate setbacks,buffering and screening,noise mitigation,building orientation,landscaping,ete. v. Update and maintain the City's land use regulations, engineering standards, and building codes to be consistent with federal and state requirements and responsive to current conditions and anticipated development trends. vi. Promote the maintenance of habitable housing in Tigard through Housing Inspection and Enhanced Housing Safety programs. Contribute tc trnacrg ��' rJiy� to assist tl.tia .-rk3 kxc hour if; due io safcty/habitability problems. Develop fegula. ons, tanJ rds,educational tools;and incentives to induce property owners to maintain residential property and to rehabilitate or redevelop deteriorated or marginally habitable residential properties. vii. Encourage those who must make habitability and safety improvements to their homes to access low interest loan and grant programs offered by the Washington County Housing Rehabilitation Program. viii. Develop resources or coordinate access to existing resources to assist those who lose housing_due to safety/habitability problems to obtain suitable alternative housing.Contribute to an Emergency Housing Fund to assist those who lose housing due to safety/habitability jx 2rms. ix. Promote the habitability and quality of existing housing stock through means such as effective code enforcement and code violation follow-through, habitability standards, and rental licensing and inspection. Enforce code to abate public health and safety problems associated with the unlawful use of residential properties. x. Establish and maintain standards to regulate non-residential accessory structures to protect the character and quality of existing neighborhoods. xi. Provide incentives and technical assistance to make resource-efficient (green) technologies and materials part of new development and the remodeling or retrofitting of existing development. Opportunities include but are not limited to: energy conservation, water re-use,water quality enhancements, green building materials, solar heating/cooling,and drought tolerant landscapinge. Exhibit B xii. Adopt and maintain clear and objective approval standards, criteria, conditions, and review processes for needed housing per state requirements. xiii. Develop partnerships with neighboring jurisdictions on multijurisdictional code enforcement issues. xiv. Provide incentives to encourage inf r a i about accessible design practices in to housing development developers to help ensure that new housing is accessible to people with physical and mobility limitations,including aging residents. xv. Provide informational materials and other technical assistance to housing developers to ensure that residential development procedures and processes are as easy to understand and navigate as possible. xvi. Provide opportunities for city planning staff to obtain training and knowledge of housing development issues to ensure they can continue to effectively implement housing goals,policies,and action measures. xvii. Provide incentives to Eencourage all residential developers to incorporate housing affordable to low-and moderate-income residents in their proposed developments. xviii. Encourage large employers to consider implementing employer-assisted housing programs. EXHIBIT C __ SUPPLEM7,121p.:?PA0CaKEITFOR City of Tigard (DATE OF MEETING) Memorandum To: Honorable Mayor Jason Snider and Tigard City Council From: Schuyler Warren, Senior Planner Re: CPA2021-00002 Amended Findings Date: May 24, 2021 This memo is intended to address comments received by Housing Land Advocates related to the Goal 10 findings of the Planning Commission recommendation to Council. Staff requests that Council amend the ordinance to adopt the findings and conclusions presented in Exhibit C,with the findings related to Goal 10 amended as shown below. Statewide Planning Goal 10—Housing: This goal requires cities and counties to provide adequate capacity for needed housing. OAR Chapter 660 Divisions 7 and 8, which implement Goal 10, states that "the purpose of this division is to ensure opportunity for the provision of adequate numbers of needed housing units and the efficient use of land within the Metropolitan Portland (Metro) urban growth boundary, to provide greater certainty in the development process and so to reduce housing costs." FINDING: The purpose of this legislative process is to update the city's Housing Needs Analysis in accordance with statewide planning Goal 10. The Housing Needs Analysis is used to determine the city's need for residential land to accommodate at least 20 years of future growth. As part of this analysis,the city is required to ensure that its existing policies enable flexibility in housing location,type,and density. Further,the city is required to provide an overall density of 10 or more units per acre and an opportunity for 50 percent of new units to be attached single family or multifamily.The city exceeds this requirement.The housing policy reforms adopted by Council in 2018 allow for attached units in all residential zones,and provide for maximum flexibility in housing type, size, and tenure. Additionally, the OAR requires that if the city proposes to restrict housing supply based on tenure,it would need to provide justification. The city not only does not propose any tenure restrictions,it has eliminated all tenure-based language from the development code. Comprehensive Plans are required to include a Housing Needs Analysis that includes a projection of housing needs as well as an inventory of buildable lands. This analysis must look at a broad range of factors related to supply and demand of housing,including housing mix and type, affordability, and tenure, among others. This analysis provides the basis for the city's housing policies and actions in the adopted Comprehensive Plan. The Housing Needs Analysis under consideration includes all of the information required under Divisions 7 and 8, as well as ORS 197.296(3).Additionally,the document includes a Housing Market Analysis that is intended to provide supplemental data and information beyond what is required under state law.Taken together, this analysis provides a snapshot of the city's current and projected housing conditions,and directly informs the polices of the Comprehensive Plan, as amended according to the recommendations of the document. Some key findings of the Housing Needs Analysis include: • Roughly 59%of the city's housing stock is single detached houses. • Housing supply for both purchase and rental is extremely constrained,with rates far lower than in Washington County and the state as a whole. • The median home price is $409,000,making most home unaffordable to those at or below the area median income. • The increase in rental rates has outpaced inflation every year since at least 2015. • Residents surveyed as part of the analysis reported that the city needs more housing, including more affordable housing, as well as a greater variety of housing. • Residents prefer housing in areas with safe streets and sidewalks. • Land availability is a barrier to the construction of more affordable housing units. • The city will need an additional 7,416 housing units,but has only capacity for an additional 4,206 units,leaving a shortfall of 3,210 units. • Increased land capacity is needed to meet the city's projected growth. Taken together with the city's Affordable Housing Plan, adopted in 2018,and the Strategic Plan, updated in 2020, Goal 10 of the city's Comprehensive Plan provides a policy guide for the equitable and sustainable provision of housing for the city's diverse and growing population. - 1 ! • . . ! . : .. - • . - -- • - • . . . ! . • tkat`st.bzN - • -. •- - - . . . . . . . , - . , tZ.; cote." FINDLNG'.. Th:, p cu'r v cf this lcgislati r ske dt's dards Analysis in accod&n- .- - . .. _ ;; !. . - .. -.- - : •.. -: . ..: . T e. put f OAR 660, v i ion 7.Thc amendment adopts the-Housing N\cc&A:rJy&\;e,-which was completed fr2limit,the rule* e,wtiacd in.Derision 7 and COMpare3 projected demand -- • .: : -•• • : - -:3 s :1:Ju1. Llzc qty's policies and iu�h a»�� V eirc c�rwcc : r t tic,: .).d20 year apply. Thc I t,u ' Needs Amdy3i3 elcmon3trateJ p ovidc adcquat:,h u'i to meet the needs .. . ., : - vidoy guidance for future wue-_k a rel lc iu yui . .... . . . - : . : a dist . _:., - : . ,. :. :.. .:-- : - - city's C-omprchcntiv%. Pkn analysi3. Th:, t -�`rri»1��Land C:,r,sci'&tires iiia Dc=n-cUp»�.1,whc ; Di.—i c ;'was con3ultcd through the proccz3 anti wcic rcciucoicd to 3Uhirti t.r/.lilncnha. CommCTIL3 rcccivc C addres3cd in the .`:.civet dri L. Th..helot/doh of the Tigard Popes anti mousing Rcvicw and thc amendment to thc Tigarcl Compichensivc P1&i mtiitItins-the-eity's c✓mp;iiancc with Coal 10. Hearing Date: May 25.2021 Time: 730 PM PLANNING COMMISSION RECOMMENDATION TO THE .• . ■ CITY COUNCIL FOR THE CITY OF TIGARD, OREGON TIGARD SECTION I. APPLICATION SUMMARY CASE NAME: TIGARD HOUSING NEEDS ANALYSIS UPDATE CASE NO.: Comprehensive Plan Amendment(CPA) CPA2021-00002 PROPOSAL: To adopt the 2021 Housing Needs Analysis and Housing Market Analysis as an ancillary document to the Tigard Comprehensive Plan;and to amend the current Tigard Comprehensive Plan Goal 10:Housing goals,policies,and recommended action measures. The proposed Comprehensive Plan text amendments for the City Council's review are included in Attachment 2 and summarized below in Section III of this report. APPLICANT: City of Tigard 13125 SW Hall Blvd. Tigard,OR 97223 ZONES: Citywide LOCATION: Citywide APPLICABLE REVIEW CRITERIA: Statewide Planning Goals 1 (Citizen Involvement), 2 (Land Use Planning); and 10 (Housing); Metro's Urban Growth Management Functional Plan Titles 1 and 8; Comprehensive Plan Goals 10.1 and 10.2, and Policies 1.1.2, 2.1.1, 2.1.2, 2.1.3, 2.1.4, 2.1.19,and 2.1.25;and Tigard Development Code Chapters 18.710 and 18.790. SECTION II. PLANNING COMMISSION RECOMMENDATION Planning Commission recommends adoption by ordinance of the proposed updates to the Tigard Housing Needs Analysis as a ancillary document to the Tigard Comprehensive Plan (Attachment 1) and adoption of the proposed amendments to the Tigard Comprehensive Plan (Attachment 2) as further amended by staff and with any alterations as determined through the public hearing process. SECTION III. BACKGROUND INFORMATION AND PROJECT SUMMARY HOUSING NEEDS ANALYSIS UPDATE COMPREHENSIVE PLAN AMENDMENTS CPA2021-00002 5/25/2021 PUBLIC HEARING,PLANNING COMMISSION RECOMMENDATION TO THE CITY COUNCIL PAGE 1 OF 8 Project History The City of Tigard last updated its Housing Needs Analysis and Goal 10 of its Comprehensive Plan in 2013 as part of the periodic review requirement under state law. Since that time,the city and the region have experienced an historic housing crisis driven by continued population growth and underproduction of housing in the wake of the 2008 financial crisis and subsequent recession. Issues of housing equity,affordable housing, and houselessness have grown increasingly important as the gap between housing access for higher-and lower- income households grows wider across the region. In response to these crises,the City of Tigard has implemented several policies and initiatives to meet its housing goals,including housing options code reform, financial incentives,and new funding measures.The Metro regional government has responded as well,with a region-wide affordable housing bond and a houseless supportive services measure both receiving voter approval within the last three years. Finally, several housing policy reforms adopted in recent years at the state level,including the landmark HB2001,have the potential to shift the housing market toward more equitable housing opportunity. Given the challenges in housing and the shifting regulatory landscape,the city determined that an update to its housing needs analysis was needed.This new look at housing needs will provide needed guidance for a number of current and planned long-range projects,including the River Terrace 2.0 Concept Plan and Community Plan, the Washington Square Regional Center Plan update,and various code amendments to provide The city is also seeking to expand the scope of its Housing Needs Analysis,incorporating a Housing Market Analysis that takes a deeper look at the factors influencing housing availability and affordability,particularly affordable housing. The city received two grants from the Oregon Department of Land Conservation and Development to provide for technical consultant assistance. The 2021 Housing Needs Analysis (HNA)was developed in compliance with OAR 660 Division 10 (Statewide Planning Goal 10:Housing) and is a technical study that compares projected demand for land for housing to the existing supply of such land.The purpose of this HNA is to provide needed analysis and policy guidance to the city in meeting its needs and desires to provide housing opportunity for all residents,as outlined in Chapter 10 of the Comprehensive Plan,while complying with state and Metro housing goals and requirements. The analysis looks at population projections and demographic trends along with the amount and location of available land. It includes a list of potential strategies to meet the city's future demand for housing based on that analysis.The project also provides a qualitative analysis of the housing market and consumer preferences for housing. The city convened a Community Advisory Committee (CAC) for the project.This committee reviewed the findings and key recommendations included in the HNA. The tasks include examining future population projections and demographic trends to assess Tigard's housing development potential,projecting household growth and determining short-and long term demand for residential land.This demand is compared to an inventory of suitable residential land (supply) to assess the sufficiency of immediate and longer-term (20-year) supply of residential land in the city. HOUSING NEEDS ANALYSIS UPDATE COMPREHENSIVE PLAN AMENDMENTS CPA2021-00002 5/25/2021 PUBLIC HEARING,PLANNING COMMISSION RECOMMENDATION TO THE CITY COUNCIL PAGE 2 OF 8 The project meets the state requirements for a Goal 10 population and housing analysis and acts as a resource for staff, decision makers,and the public. One important task in the development of the HNA was to consider land use planning efforts underway or already completed. Proposal Description Housing Needs Analysis The Housing Needs Analysis serves as a component and ancillary document of the Tigard Comprehensive Plan. It identifies the amount of needed residential land for the next 20 years and strategies to implement the city's vision related to housing. It builds on a comprehensive study of the local housing market and future trends and an in-depth review of current local, regional, state and federal housing requirements, goals and initiatives.The strategies in the report will help to guide future decisions. Amendments to Tigard Comprehensive Plan Chapter W A key outcome of the analysis is amended language in Chapter 10 of the Comprehensive Plan, which was originally adopted in 2008 and subsequently revised in 2013. The core Chapter 10 goals as well as most of the policies and recommended action measures remain relevant. However, a review of the policies and action measures indicated that some were outdated or did not adequately reflect the current action areas in housing. The narrative portion of the chapter required minor updates and the Key Findings section is proposed to be replaced with data from the current HNA.These amendments are shown as strikethrough in Attachment 2. Amendments to the Ti.zard Community Development Code During the time that the HNA was being completed, the Department of Land Conservation and Development was simultaneously developing the Oregon Administrative Rules related to the implementation of HB2001. The project team preserved the option to include housing-related amendments to the Community Development Code in the project should the timing of the state rulemaking allow such. Those rules were not adopted by the Land Conservation and Development Commission until December of 2020. Based on that narrow window of time in coordination with DLCD staff, city staff determined that the scale and scope of needed amendments would exceed the capacity of the project. As a result, no amendments to the Community Development Code are proposed at this time.A subsequent code project may be necessary to fully comply. Summary The primary goals in updating the city's Housing Needs Analysis, performing the Housing Market Analysis, and amending Chapter 10 Housing of the Comprehensive Plan are threefold: • Ensuring that the City's Comprehensive Plan remains a relevant and informative tool for decision- makers; • Complying with statewide planning Goal 10: Housing and the associated OAR 660 Division 8;and Providing needed analysis and information for current and future long-range planning efforts, including the River Terrace 2.0 Concept Plan and Community Plan, the Washington Square Regional Center update, the Affordable Housing Plan implementation,and other relevant code projects. Changes to City Council Draft There were no changes from the Planning Commission draft and the proposed draft. HOUSING NEEDS ANALYSIS UPDATE COMPREHENSIVE PLAN AMENDMENTS CPA2021-00002 5/25/2021 PUBLIC HEARING,PLANNING COMMISSION RECOMMENDATION TO THE CITY COUNCIL PAGE 3 OF 8 SECTION IV. APPLICABLE CRITERIA. FINDINGS AND CONCLUSIONS STATEWIDE PLANNING GOALS AND GUIDELINES State planning regulations require cities to adopt and amend Comprehensive Plans and land use regulations in compliance with the state land use goals. Because the proposed Comprehensive Plan amendments have a limited scope,only applicable statewide goals are addressed below. Statewide Planning Goal 1—Citizen Involvement: This goal outlines the citizen involvement requirement for adoption of Comprehensive Plans and changes to the Comprehensive Plan and implementing documents. FINDING: This goal has been met by complying with the Tigard Development Code notice requirements set forth in Section 18.710.110 (Legislative Procedure). A notice was published in the Tigard Times newspaper on April 1, 2021. Project information and documents were published to the City website prior to the public hearings. A minimum of two public hearings will be held (one before the Planning Commission and the second before the City Council). These hearings present an opportunity for public testimony. A minimum of three drafts of the proposed Comprehensive Plan amendments (Proposed Draft to the Planning Commission, and Planning Commission Recommendation to City Council) will be made available to the public for review prior to hearings and adoption.This goal is satisfied. Statewide Planning Goal 2—Land Use Planning: This goal outlines the land use planning process and policy framework. FINDING: The Department of Land Conservation and Development(DLCD)has acknowledged the city's Comprehensive Plan as being consistent with the statewide planning goals. Changes to the city's Comprehensive Plan must also be consistent with the statewide planning goals. The process for review of Comprehensive Plan changes is the Post-Acknowledgment Plan Amendment (PAPA). The city submitted the draft Housing Needs Analysis to DLCD for review through the PAPA process. DLCD staff provided comments on the draft, and. those comments were addressed and incorporated into the final document. This goal is satisfied. Statewide Planning Goal 10—Housing: This goal requires cities and counties to provide adequate capacity for needed housing. OAR Chapter 660 Division 8, which implements Goal 10, states that "the purpose of the division is to ensure opportunity for the provision of adequate numbers of needed housing units, the efficient use of buildable land within urban growth boundaries, and to provide greater certainty in the development process so as to reduce housing costs." FINDING: The purpose of this legislative process is to update the city's Housing Needs Analysis in accordance with statewide planning Goal 10. This amendment is required periodically as part of OAR 660, Division 7. The amendment adopts the Housing Needs Analysis, which was completed following the rules outlined in Division 7 and compares projected demand to current supply of buildable lands to ensure the city's policies and implementing actions are sufficient to meet the needed 20-year supply. The Housing Needs Analysis demonstrates in detail the city's capacity to provide adequate housing to meet the needs of the Tigard community, and provides policy guidance for future work to expand housing equity and opportunity among Tigard residents. Updates to the narrative and key findings sections of the city's Comprehensive Plan chapter 10 are to reflect this updated analysis. HOUSING NEEDS ANALYSIS UPDATE COMPREHENSIVE PLAN AMENDMENTS CPA2021-00002 5/25/2021 PUBLIC HEARING,PLANNING COMMISSION RECOMMENDATION TO THE CITY COUNCIL PAGE 4 OF 8 The Department of Land Conservation and Development, who administers Division 7, was consulted through the process and were requested to submit comments. Comments received were addressed in the current draft. The adoption of the Tigard Population and Housing Review and the amendment to the Tigard Comprehensive Plan maintains the city's compliance with Goal 10. CONCLUSION: Based on the findings above and the related findings below, staff finds the proposed map and text amendments are consistent with applicable Statewide Planning Goals. METRO'S URBAN GROWTH MANAGEMENT FUNCTIONAL PLAN State planning regulations require cities within the Metro service area to adopt and amend Comprehensive Plans in compliance with Metro's Urban Growth Management Functional Plan. Because the proposed Code Amendments have a limited scope and the text amendments address only some of the topics in Metro's Urban Growth Management Functional Plan,only applicable Titles are addressed below. Title 1—Housing Capacity The Regional Framework Plan calls for a compact urban form and a "fair-share" approach to meeting regional housing needs. It is the purpose of Title 1 to accomplish these policies by requiring each city and county to maintain or increase its housing capacity except as provided in section 3.07.120. FINDING: The Housing Needs Analysis includes a housing needs projection based on Metro's TAZ allocations that include fair share distribution of housing needs regionally. In addition, the city requested revisions to the last TAZ analysis to increase the number of projected housing units above the baseline. This standard is met. Title 8—Compliance Procedures Title 8 requires that the city's Comprehensive Plan and plan amendments be consistent with the Urban Growth Management Functional Plan. FINDING: The Comprehensive Plan has been previously acknowledged by Metro to be in compliance with Title 8. The only portion of the Comprehensive Plan being amended is Chapter 10 Housing. The housing needs projection is based on Metro's own TAZ projections. The UGMFP does not include other regulatory requirements for housing policy. Notice and a copy of the proposed Comprehensive Plan amendments were provided to Metro. CONCLUSION: Based on the findings above, staff finds that the proposed map and amendments are consistent with Metro's Urban Growth Management Functional Plan. TIGARD COMPREHENSIVE PLAN State planning regulations require cities to adopt and amend their comprehensive plans in compliance with the state land use goals and consistent with their adopted comprehensive plan goals and policies. Because the Comprehensive Plan amendments have a limited scope, only applicable goals and policies are addressed below. Comprehensive Plan Goal 1: Citizen Involvement Policy 1.1.2: The City shall define and publicize an appropriate role for citizens in each phase of the land use planning process. FINDING: This policy has been met in multiple ways. The city provided a role for residents to participate in the Community Advisory Committee,which was broadly advertised to the community.The city's consultant team conducted multiple interviews with housing stakeholders, including affordable housing providers and HOUSING NEEDS ANALYSIS UPDATE COMPREHENSIVE PLAN AMENDMENTS CPA2021-00002 5/25/2021 PUBLIC HEARING,PLANNING COMMISSION RECOMMENDATION TO THE CITY COUNCIL PAGE 5 OF 8 developers. City staff with assistance from a community-based organization held a Spanish-language for to discuss housing needs. Notice was provided in accordance with the requirements set forth in Tigard Development Code Section 18.710.110 (Legislative Procedure). A notice was published in the Tigard Times newspaper on April 1, 2021. Project information and documents were published to the City website prior to the public hearings. A minimum of two public hearings will be held (one before the Planning Commission and the second before the City Council) at which an opportunity for public input is provided. A minimum of two drafts of the proposed code changes (Proposed Draft to the Planning Commission, and Planning Commission Recommendation to City Council) will be made available to the public for review prior to hearings and adoption.This policy is satisfied. Comprehensive Plan Goal 2: Land Use Planning Policy 2.1.1: The City's land use program shall establish a clear policy direction, comply with state and regional requirements, and serve its citizens' own interests. FINDING:The proposed Comprehensive Plan amendments comply with all state and regional requirements, as the previous findings indicate. The proposed amendments update the Comprehensive Plan policies and recommended action measures to be in alignment with new state laws and rules regarding housing provision. The proposed amendments also establish a clear policy direction for the equitable provision of housing in the city.This policy is satisfied. Comprehensive Plan Goal 2: Land Use Planning Policy 2.1.2: The City's land use regulations, related plans, and implementing actions shall be consistent with and implement its Comprehensive Plan. FINDING: As demonstrated in this staff report, the proposed amendments are consistent with the Tigard Comprehensive Plan. This policy is satisfied. Policy 2.1.3: The City shall coordinate the adoption, amendment, and implementation of its land use program with other potentially affected jurisdictions and agencies. FINDING: Copies of the proposed text amendments were sent to affected agencies and each agency was invited to comment on the proposal. Comments submitted by affected agencies have been incorporated into this report and the proposed amendments. This policy is satisfied. Policy 2.1.4: The City's land use program shall promote the efficient use of land through the creation of incentives and redevelopment programs. FINDING: The proposed amendments include provisions that promote the efficient use of land. Several policies provide guidance in developing and maintaining programs that will provide incentives to develop affordable housing options and to redevelop properties to provide greater housing diversity and opportunity. This policy is satisfied. Policy 2.1.19: The Planning Commission may at any time recommend to the City Council that it consider initiating legislative amendments to the Comprehensive Plan, Plan/Zoning Maps, and/or Community Development Code. FINDING: The recommendation of the Planning Commission regarding the proposed changes will be brought to the City Council for consideration of adoption. This policy is satisfied through the provisions of 18.710.110 (Legislative Procedure). HOUSING NEEDS ANALYSIS UPDATE COMPREHENSIVE PLAN AMENDMENTS CPA2021-00002 5/25/2021 PUBLIC ITEARiNG,PLANNING COMMISSION RECOMMENDATION TO THE CITY COUNCIL PAGE 6 OF 8 Policy 2.1.25: The City shall use the most recently adopted Metro population and employment forecast, as allocated to Tigard,for planning purposes. FINDING: The city used the most recent population forecasts from Metro to generate the housing needs projection as demonstrated previously.This policy is satisfied. CONCLUSION: Based on the findings above, staff concludes that the proposed map and text amendments are consistent with applicable provisions of the Tigard Comprehensive Plan. APPLICABLE PROVISIONS OF THE TIGARD DEVELOPMENT CODE Section 18.790: Zoning Map and Text Amendments 18.790.020 Legislative Amendments Legislative amendments are processed through a Legislative procedure, as provided in Section 18.710.110. FINDING: The proposed amendments are legislative in nature. Therefore, the amendments will be reviewed under the Legislative Procedure as set forth in the chapter.This standard is met. Section 18.710: Decision Making Procedures 18.710.110 Type IV Procedure Notice of hearing. 1. All Legislative applications require two hearings, one before the Planning Commission and one before the City Council. FINDING: This procedure requires public hearings by both the Planning Commission and City Council. These public hearings will be conducted on April 19,2021 and May 25,2021 respectively. This standard is met. 2. A notice of hearing will be provided as required by state law, and an affidavit of mailing will be included in the record that identifies the mailing date and the names and addresses of the mailing recipients. FINDING: State law provides for specific noticing requirements for legislative changes. Notice must be provided to the Department of Land Conservation and Development (DLCD) of a proposed Post Acknowledgement Plan Amendment at least 35 days prior to the first hearing.Notice meeting this requirement was provided to DLCD on March 15,2021, 35 days prior to the first hearing.This standard is met. CONCLUSION: Based on the findings above, staff concludes that the proposed map and text amendments are consistent with applicable provisions of the Tigard Development Code. SUMMARY CONCLUSION: As shown in the findings above, staff concludes that the proposed amendments are consistent with the applicable Statewide Planning Goals; Metro's Urban Growth Management Functional Plan;applicable Tigard Comprehensive Plan goals and policies, and the applicable provisions of the City's implementing ordinances. HOUSING NEEDS ANALYSIS UPDATE COMPREHENSIVE PLAN AMENDMENTS CPA2021-00002 5/25/2021 PUBLIC HEARING,PLANNING COMMISSION RECOMMENDATION TO THE CITY COUNCIL PAGE 7 OF 8 SECTION V. AGENCY COMMENTS TVF&R, METRO, ODOT, DLCD, CWS, TTSD, Tigard Water District, City of Beaverton, City of King City, City of Lake Oswego, and Beaverton School District were notified of the proposed Comprehensive Plan amendments. No comments have been received from these agencies at the time of the staff report. SECTION VI. PUBLIC COMMENTS No public comments have been received at the time of the staff report. Public comments were received during the Planning Commission hearing and are summarized in the minutes. ATTACHMENTS: Attachments: 1. Draft 2021 Housing Needs Analysis 2. Draft Comprehensive Plan Amendments May 11.2021 PREPARED BY: Schuyler Warren DATE Senior Planner J(^f" '7 'JO' 4€ May 11. 2021 APPROVED BY: Tom McGuire DATE Assistant Community Development Director HOUSING NEEDS ANALYSIS UPDATE COMPREHENSIVE PLAN AMENDMENTS CPA2021-00002 5/25/2021 PUBLIC HEARING,PLANNING COMMISSION RECOMMENDATION TO THE CITY COUNCIL PAGE 8 OF 8 FSUPORPLErsrEI..t1,0P,TA(CKET (DAATE9iOndF‘..._MEI4ETelN2) . .r.., ...• I • 4 1) -"0,b. .. C, •.::--. tv. . •.-', • , ' ., • r f .; - . 1 ' , - Jr/ . - ',k- • ."'":-- 10p • i— ,...L.- r It . if i 4r4 : ., 4Pge L,--- , , Ii.T. ' y, • r--40., -11 4,... L 4, 1 - i 1 t • r I ; . • Ilk%goo" . , -."--AL . :.• - ", -71,"'• -. • -. •- '4,-,v',•‘' -..:' • ; — . Tir •?'',14-)401§1__. ''L a. ' — :. - ',..'•' •-- • ' . . • „ _. 2 _,....... _.2.,r iy il fla j, __ . 1. r ''• ' . '7. ' il : - • . . .., p. .. .40,...., . 11 HvmE w.i.-. .w.i.--- -- ..„ IW.. . .... ' • .. _ .... _ ,-,. .E, ,,,--e- ,-, - II!' '..,4 .,...:.:• . ..- .; - ' .” - •-- 1 litil ..- , -- - '...-7 I . i •- ' . 14 • - I - 11 '4,t; 1 ..• .""-j':.,-'....*-'- ' ' . •i- 1 ! . , '• • --.1.7: , 1 ' ' 0 . - •:. - .111 ' 1 . ._ . f- : '2. `--s'•• - 7 ti ' ''.!0.1 'M,;:,,`!1 . F•;21.• _'.,• A k , , , ._..,,._ , ; -- .-. .... . . •' "1.-.4-07 I I 1 Tigard Housing Needs Analysis 111 , TIGARD City Council Presentation I May 25, 2021 40 , µ s Keyj. - Fr • What housing does Tigard have now? ,;* , _ -- - ---------- ,-._.f-:,- : . , ,...•,. ..•.• %� - , • ' What housing does Tigard need? - _ f *; __ :'., T How can Tigard plan to meet that need? •'� til ' ' . . 1 �v4. Fi. ir :. _ i '' -- � be- _ Housing Needs Analysis Project Overview .1114 q Photo from Sightline Missing Middle Homes Photo Library, ¢ Z https://www.flickr.com/people/sightline_middle_housing/ TIGARD 0 Community Engagement _y 7�n :74'41 M �.,,,,-07- ---,:1:;--t-.,}, ' i-. ; � r ).. Community Advisory Committee i- E� -0 ., s , L °itz ,e, [:'� .._�at�4S�a+ �La/��wir�. r-,,,,"-5--;-,,-y4:,. o Five meetings, Oct 2020 to March 2021 : TCitywide Housing .;� ; ' r . ;, , Analysis o Spanish translation & interpretation , 0,.4i ,� fy �; a .:•,;- ' [: a- 4� Analisis de vivienda m Public survey : `: �_ de la ciudad o Online Nov to Dec 2020 rir ,s o Reponses from 139 residents k' Let's discuss: • Spanish language focus group ' � .t- —_, ;;"-- • Based on what you thinkmakesa ' • . o - neighborhood thrive,are there any iii t i •, 1. areas in the city where we need more 'r- '4 of a specific housingtype?a'.: 4 Interviews with housing developers • Basandose en lo que usted piensa que Housingj11' 'i Tigard es necesario para que un vecindario g prospere,cHay areas en la ciudad donde se necesita mas un tipo La vivienda en Tigard vivienda especifico que otros tipos? 3 What housing does Tigard -4 � — ----- 'd ...,:if ;f- ' �:r 't? • .� r . Rthave now? `` -; h. Single-family homes are the most common housing 1 r � sir ,. •Y . c i! ` `.�-�.. Housing Type in Tigard a tea. r , - k _ -� i i 1 "iii4417t,... .'-- '1'. - ..,•1 ' = = 11111P re Single Family House pp. 59% Many forms of housing are not available or are rare in Tigard Small Multifamily Buildings - 13% Large Multifamily Buildings 12% 11./ �► i 11114. +�+ �•- ordo +.. 1��i �,ri }fir ZEN Townhouse or Rowhouse Iffit4 ► i --.;>-‘1,1 ,7i 4:14 �' ' �r Live/Work 8% ilhalk '__'_�—�li Lo[SizPezSoo sf se �' .1/6 ■I , 1... �_1�k Duplex, Triplex, QuadplexIII Units rLorr Rowhouse �.-_ _ 0 unR:per Lor., Duplai -----------`---..,__..._.....,..„.:11----______1:11,t_14471 _1`, `41 �� ��,_t�,�� Units a rLot sf v _ Units ` v —IJtll 0 5,000 10,000 15,000 Cottage Cluster LetSize Varins f• Units per 1.1 44 Medium Dwelling plus ADU � Number of Homes 1 4 Scurce: 2014-2018 5-Year American Community Survey i From the data. . . Average Tigard Rent Growth vs. Inflation 2015 - 2020 For-Sale Market o Median sales price of about $409,000 — Actual Increase in Average Rent $1,336 o Price is heavily impacted by size of home Average Rent Increase at $1,300 o Highly-constrained supply with very little Same Rate as Inflation $1,245 vacancy $1,215 _ . o Makes up about 60% of Tigard housing $1,109 $1,225 $1,253 ..,,, ..••••` $1,198 $1,119 ....... $1,171 $1,145 Rental Market $1,119 o Average rent of about $1,330 in Tigard o Rent growth outpaced inflation since 2015 2015 2016 2017 2018 2019 2020 o Low rental vacancy Source: Tigard Average Rents (Costar, 2021); National inflation Rates (U.S. Bureau of Labor Statistics, 2021). o Makes up about 40% of Tigard housing 5 What housing does Tigard need? Variety of Types Equitable 1 • • wwalka le :„ Afford ear z / eso u rces 6 • From survey participants. . . Please indicate how strongly you agree with the following statements. 63% somewhat or strongly agree Tigard needs greater variety of housing in terms of housing types and prices. 60% somewhat or strongly agree Lack of affordable housing is an important issue in Tigard. 0% 20% 40% 60% 80% 100% Share of Survey Takers Strongly Disagree ■ Somewhat Disagree Neither Agree nor Disagree 7 Somewhat Agree ■ Strongly Agree From survey participants . . . • Preference for homeownership What factors make it difficult to find housing in Tigard? Desired features: Cost is too expensive o Safe streets and sidewalks Not enough housing for sale o Size of home Not enough single-story accessible homes o Off-street parking o Front or back yards Not enough housing with desired features/amenities o Trees and natural features Not enough small homes o Price of home Not enough housing for rent o Parks, open space, trails Not enough large homes o Condition of home Distance from work,school or other destinations 0 10 20 30 40 50 60 70 80 N umber of Su rveyTa kers 8 • From Community Advisory Committee . . . Access to greenspace New construction is often 4- and walkable or 5- bedroom houses. We'd communities are love to see some smaller important. homes. We want to live up to our equity goals and see housing for all. Policies are needed to realize this vision. Community land ti cooperatives and Downtown and Tigard Triangle permanently affordable are great opportunities for housing is needed in apartments and more density. Tigard. 9 From the data. . . 20-Year Housing Need vs Housing Capacity, City of Tigard HOUSING UNITS HOUSING UNIT DIFFERENCr NEEDED CAPACITY Residential — Low Density 1,409 635 (774) Residential — Medium Density 3,411 2,272 (1,139) Residential — Medium-High Density 1,336 706 (630) Residential — High Density 519 0 (519) Mixed Use 741 593 (148) Total 7,476 4,206 (3,27n) Possible responses: • Encouraging greater infill housing — including middle and affordable housing types 1. • Expanding the UGB to increase housing capacity 10 ■ ��� _ s �� Tr�V question i h� What policies can Tigard enact to ; achieve housing goals . ---- u rr`- ;'AT --, ....:-. 11111 lir Housing Needs Analysis Strategies & Policies T ■ , I1 Photo from Park East Facebook page .�i GARS •• I Input from Development Community Development fee waivers and tax exemptions o Tigard has made positive steps to reducing fees o Opportunities to structure fees by housing type/size Land Availability o Land banks and property held by public agencies or nonprofit organizations is helpful o Allows affordable developers time to put together financing that is needed for a project - Zoning o Incentive zoning or strong affordability goals/requirements in development areas Middle Housing Types o Habitat for Humanity and Proud Ground collaborate on affordable, for-sale middle housing programs o More difficult for tax credit developers (3-4 story apts work better with tax credit program) 12 Housing Strategies MOO - . i : .,01,- \, 4r '461V:.:Fetr. ,,,--A ,,,. Land banking to support affordable -a , X, ,f .„, ifigt ' rental and homeownership7 opportunities - 3 i miiiia IV _ y ,111 1 Community Land Trust model for ,- - permanent affordableMR , , iI homeownership . 7 ,---C.., -a--• L °I 3-11 El 1 . 4- - Targeted use of affordable housing - - ` funds in key development or Recent home purchased through Proud Ground,Portland, redevelopment areas From https://proudground.org/ 13 r;; ti Housing Strategies r y. , . , ..710011 ,� r - —I _ Zoning incentives and/or lending programs I.,r i Bast for affordable and middle housing E. rer1 r ; . _� Kitchen r System Development Charges based on • rrr.•�•;r1� r: l� r'f ' �.-4, . 14 — home size s• ++ Dining Room •r. u'i OFrl 1E Kii iri.1 - ---- Pre-permitted models • • • _ ' Living Room Ploorplar s and pre-permitted models from f * Developer outreach to attract desired Portland`Living Smart'program, I "��(if Photo credit:Bryan Higgins,Architect,from housing types (middle housing, affordable huduser.gov/portal/casestudies/study_101711_1.html C _wo housing) r 1-Car r 4 Affirmative marketing & fair housing efforts • Garage I Entry Porch ■ . _ J - 14 Comprehensive Plan Housing Component • Edits to key findings, policies, and action measures based on HNA • Key takeaways: o Increased capacity needed to accommodate projected growth o Affordability is a continued and growing "Provide opportunities to derelop a narietjr of concern Iwrrsm;lyper that meet the neett3;prcferencn; and Aura&capabilities of Tigan o A diverse housing mix will best meet resident present anrl/atrrreresidents. needs on price and preferences o Proactive approaches by the City are needed to achieve housing goals 15 ■ Comprehensive Plan Housing Policies Housing Strategy Land banking to support affordable rental and homeownership opportunities Comprehensive Plan Policy • The City shall continue to develop, dedicate, and administer funding resources to support affordable housing for rental and homeownership, including new construction and preservation of existing affordable housing. Comprehensive Plan Action Measure • Support affordable housing development through land acquisition, development or participation in a land bank. 16 Comprehensive Plan Housing Policies Housing Strategy Zoning incentives and/or lending programs for affordable and middle housing Comprehensive Plan Policy • The City shall adopt and maintain land use policies, codes, and standards that provide opportunities to develop a variety of housing types that meet the needs, preferences, and financial capabilities of Tigard's present and future residents. Comprehensive Plan Action Measure • Provide incentives to encourage affordable middle housing development in low- and medium- density residential areas throughout the city. • Provide incentives to encourage all residential developers to incorporate housing affordable to low- and moderate-income residents in their proposed developments. 17 ■ Comprehensive Plan Policies & Action Measures Recommended Action Measures: i. Update the City's Buildable Land Inventory regularly to monitor the rate of development and the availability of residential land. Recommended Action Measures: ii. Monitor regional and local housing trends and periodically review and update the City's land use policies and regulations accordingly to provide the range of housinc i. Encourage future housing development on designated buildable lands in areas development opportunities needed by Tigard's residents. where public facilities and services can be most readily provided. iii. Allow manufactured homes on individual lots subject to standards to ensure their ii. Engage Tigard's fesidenig citizens in public policy decisions,programs,and projects compatibility with single-family residential housing types. to improve neighborhood quality of life such as improving public safety;providing iEncourage homeowners to add accessorydwellinghigh quality public services;enhancing mobility and easy access to activity centers; v. units to their properties through improving community design;providing parks and open space:and promoting a incentives such as education,fee waivers,and resource connections. green environment. Offer translation and interpretation to ensure residents with v. Increase opportunities for higher-density mixed-use development in the Downtowr limited English proficiency can engage in public policy decisions, programs,and Urban Renewal District,Washington Square Regional Center,Tigard Triangle,anc projects. designated Corridors to enable residential uses to be located in close proximity tc iii. Promote Planned Development,density transfer,site and building design standards. retail,employment,and public facilities;such as transit and parks. and other regulations to protect natural areas preserve open spaces and enhance vi. Provide incentives to encourage the development of a range of housing choices Tigard's residential environment. including affordable housing units at transit-supportive densities near existing ant iv. Develop standards to enhance livability for those living in housing adjacent to major planned transit routes, and/or in proximity to major activity centers such a: streets such as appropriate setbacks, buffering and screening, noise mitigation. employment,commercial areas,schools,and recreation areas. building orientation,landscaping,et-e. Provide incentives to encourage affordable middle housing development in low-anc v Update and maintain the City's land use regulations, engineering standards, and medium-density residential areas throughout the city, including in areas of nee building codes to be consistent with federal and state requirements and responsive development and redevelopment. to current conditions and anticipated development trends. viii. Lower development costs for affordable housing by subsidizing City fees anc vi. Promote the maintenance of habitable housing in Tigard through Housing charges,giving higher priority to housing projects close to major activity center: Inspection and Enhanced Housing Safety programs.Contribute to an Emergency and transit services and/or providing additional incentives to their development. ix. Amend City System Development Charge(SDC)structure to allow for tiered fee: Develop rog ati^n^ ^t^^dard ,educational tools;and incentives to induce property based on home size. owners to maintain residential property and to rehabilitate or redevelop deteriorated or marginally habitable residential properties. x. Communicate the availability of local, state, and federal affordable housinc incentives and subsidies to those involved in the housing industry. vii. Encourage those who must make habitability and safety improvements to their homes to access low interest loan and grant programs offered by the Washington xi. Participate with other Portland Metropolitan area jurisdictions and agencies tc County Housing Rehabilitation Program. address both local and regional affordable and workforce housing needs. xii. Developand implement strategies to encourage affordable housingviii. Develop resources or coordinate access to existing resources to assist those who P g g in the City': lose housing due to safety/habitability problems to obtain suitable alternative regional (Washington Square) and town centers (Downtown) and other area: housing.-- e - - --• - - designated for mixed use and high residential densities. 18 • Staf "1N12ecommendation • Adopt Housing Needs Analysis and Housing Market Analysis • Adopt amendments to Goal 10 of the Tigard Comprehensive Plan 4 19 TIGAR❑ • 4, .? Y . it: • t., "—. _ . ,. . 't 4 ' - ' r 4. •Z i • w 1r, *-.1,•• • 0 • . .#1 ,' * '! if ' ..1 ' , • . .••,.-* 0., 4 : I' .4, • ,, ,• , - .., , - • I *V ly,, 4 ' t ` 4 . ,4 t it...,., VI% r . •44.4„ : . 7.: 4; ... ' ..• ' .7 a. $ . • • i !.,..:ili , . . I 'a. • - '".!1 -1. I• I `.01 i. • '' °IT,0411 I • irrA „ • or. v ..^ . . ..• N .• ... • . I ,. . . ' A•a4-..fie:'- , er'AIV ...,. . .„„ I t la ,-'• i, ' -,. . 1, f * . 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Pr ' • A • FAIR SUPPLEMENTAL PACKET HOUSING FOR5--. 5-- 2 o z 1 COUNCIL (DATE OF MEETING) s OF OREGON May 25,2021 �}GfLn d� ��� City of Tigard Planning Commission 13125 SW Hall Blvd Tigard,OR 97223 RE:CPA2021-00002 To adopt the 2021 Housing Needs Analysis and Housing Market Analysis as an ancillary document to the Tigard Comprehensive Plan; and to amend the current Tigard Comprehensive Plan Goal 10: Housing goals, policies,and recommended action measures. Dear Commission Members: This letter is submitted jointly by Housing Land Advocates (HLA)and the Fair Housing Council of Oregon (FHCO). Both HLA and FHCO are non-profit organizations that advocate for land use policies and practices that ensure an adequate and appropriate supply of affordable housing for all Oregonians. Both HLA and FHCO commend the City, and support the adoption of CPA2021-00002,the adoption of the 2021 Housing Needs Analysis and Housing Market Analysis, and amendment to the current Tigard Comprehensive Plan Goal 10. Additionally,the planning staff created an inciteful and detailed supplemental memo,with well written Goal 10 findings.This will be used as a good example for other jurisdictions. Good luck with the continuation of this project! Thank you for your consideration of our comments. Sincerely, 1914-- Allan Lazo Executive Director Fair Housing Council of Oregon Cc: Gordon Howard, DLCD 1221 SW Yamhill Street, Portland, Oregon 97205 AIS-4627 7. Business Meeting Meeting Date: 05/25/2021 Length (in minutes): 10 Minutes Agenda Title: TCDA Public Hearing: Consider Resolution for Town Center Development Agency Fourth Quarter Budget Supplemental Prepared For: Steve Kang Submitted By: Steve Kang, Finance and Information Services Item Type: Motion Requested Meeting Type: Town Center Resolution Development Agency Public Hearing Yes Newspaper Legal Ad Required?: Public Hearing Publication 05/20/2021 Date in Newspaper: Information ISSUE The Town Center Development Agency will consider adopting a FY 2021 Fourth Quarter Budget Supplemental. STAFF RECOMMENDATION / ACTION REQUEST The recommendation is that the Town Center Development Agency approve the FY 2021 Fourth Quarter TCDA Budget Supplemental. KEY FACTS AND INFORMATION SUMMARY The following item requires council action for FY 2021 in the Fourth Quarter Budget Supplemental: •04TCDA01 Key Bank 2019B Debt Service Payment—This request is to add the debt service payment for the payment scheduled in FY2021. The TCDA debt offering in 2019 was divided into 2019A (Tax Exempt) and 2019B (Federally Taxable). At the time of budgeting, payment for the 2019A was budgeted, however, the 2019B payment was not budgeted. This request will add debt service payments for the 2019B part of the debt offering. OTHER ALTERNATIVES Do not approve the FY 2021 Fourth Quarter TCDA Budget Supplemental. COUNCIL OR TCDA GOALS, POLICIES, MASTER PLANS N/A DATES OF PREVIOUS CONSIDERATION This is the first consideration. - - Fiscal Impact Cost: $295,000 Budgeted (yes or no): No Where Budgeted (department/program):City Center Debt Service Additional Fiscal Notes: The FY 2021 Fourth Quarter Supplemental will increase the budget by$295,000 in City Center Debt Service Fund. The expenditure increases are supported through reserves for future expenditures. Please refer to Exhibits B which summarize the fiscal impact of the quarterly supplemental budget by fund. Attachments FY21 ()4 TCDA - Resolution V1 FY21 04 TCDA Supplemental Summar FY21 04 Exhibit A -TCDA FY21 04 Exhibit B -TCDA CITY OF TIGARD, OREGON TIGARD TOWN CENTER DEVELOPMENT AGENCY RESOLUTION NO. 21- A RESOLUTION TO ADOPT THE FY 2021 FOURTH QUARTER BUDGET SUPPLEMENTAL INCLUDING BUDGET ADJUSTMENTS TO TOWN CENTER DEVELOPMENT AGENCY (TCDA) URBAN DEVELOPMENT. WHEREAS, the TCDA acknowledges those items that were unknown at the time the FY 2021 budget was adopted; and WHEREAS,the TCDA recognizes approximately$295,000 of unanticipated budget in debt service;and WHEREAS, the increase in budget is offset by reserves for future expenditures, unanticipated fund balance, miscellaneous revenue,and contingency. NOW,THEREFORE,BE IT RESOLVED by the Tigard Town Center Development Agency that: SECTION 1: The FY 2020-21 Budget is hereby amended Q4 Supplemental Sumrnary Exhibit B. SECTION: This resolution is effective immediately upon passage. PASSED: This day of 2021. Chair-TCDA ATTEST: TCDA Recorder-TCDA RESOLUTION NO.21- Page 1 TOWN CENTER DEVELOPMENT AGENCY-BUDGET SUPPLEMENTAL c/s/ron FY 2020-2021 Quarter: 4 Item# Department Fund Division Request Title Request Funding Total Amount Detailed Description Source Q4TCDA01 TCDA 930-City Center Debt 7000-Bonded Debt Service Key Bank 2019B Debt Service TECHNICAL Reserves for $ 295,010 l ;req:gest is to add the debt service payment for the payment scheduled in FY2021.The TCDA debt offering in 2019 was divided into Service Payment Future 2019A(Tax Exempt)and 2019B(Federally Taxable). At the time of budgeting,payment for the 2019A was budgeted but failed to budget Expenditures for the 20198 payment This request will add debt service payments for the 2019B part of the debt offering. 1 oft Exhibit A 04TCDA01-Key Bank 2019B Debt Service Payment This request is to add the debt service payment for the payment scheduled in FY2021. The TCDA debt offering in 2019 was divided into 2019A(Tax Exempt)and 2019B(Federally Taxable). At the time of budgeting, payment for the 2019A was budgeted but failed to budget for the 2019B payment. This request will add debt service payments for the 2019B part of the debt offering. FY 2021 Q4 Revised City Center Debt Service Adopted Amendment Q4 Resources Beginning Fund Balance $ 566,100 $ - $ 566,100 Property Taxes $ 590,000 $ - $ 590,000 Franchise Fees $ - $ - $ - Special Assessments $ - $ - $ - Licenses &Permits $ - $ - $ - Intergovernmental $ - $ - $ - Charges for Services $ - $ - $ - Fines &Forfeitures $ - $ - $ - Interest Earnings $ 11,100 $ - $ 11,100 Miscellaneous $ - $ - $ - Other Financing Sources $ - $ - $ - Transfers In from Other Funds $ - $ - $ - Total Resources $ 1,167,200 $ - $ 1,167,200 Requirements Community Development $ - $ - $ - Community Services $ - $ - $ - Policy and Administration $ - $ - $ - Public Works $ - $ - $ - Program Expenditures Total $ - $ - $ - Debt Service $ 130,025 $ 295,000 $ 425,025 Loan to TCDA $ - $ - $ - Work-In-Progress $ - $ - $ - Transfers to Other Funds $ 412,000 $ - $ 412,000 Contingency $ - $ - $ - Total Budget $ 542,025 $ 295,000 $ 837,025 Reserve For Future Expenditure $ 625,175 $ (295,000) $ 330,175 Total Requirements $ 1,167,200 $ - $ 1,167,200 Exhibit B City Center Debt Service FY 2021 Revised City Center Debt Service Adopted Q4TCDA01 Q4 Resources Beginning Fund Balance $ 566,100 $ - $ 566,100 Property Taxes $ 590,000 $ - $ 590,000 Franchise Fees $ - $ - $ - Special Assessments $ - $ - $ - Licenses&Permits $ - $ - $ - Intergovernmental $ - $ - $ - Charges for Services $ - $ - $ - Fines&Forfeitures $ - $ - $ - Interest Earnings $ 11,100 $ - $ 11,100 Miscellaneous $ - $ - $ - Other Financing Sources $ - $ - $ - Transfers In from Other Funds $ - $ - $ - Total Resources $ 1,167,200 $ - $ 1,167,200 Requirements Community Development $ - $ - $ - Community Services $ - $ - $ - Policy and Administration $ - $ - $ - Public Works $ - $ - $ - Pam Expenditures Total $ - $ - $ - Debt Service $ 130,025 $ 295,000 $ 425,025 Loan to TCDA $ - $ - $ - Work-In-Progress $ - $ - $ - Transfers to Other Funds $ 412,000 $ - $ 412,000 Contingency $ - $ - $ - Total Budget $ 542,025 $ 295,000 $ 837,025 Reserve For Future Expenditure $ 625,175 $ (295,000) $ 330,175 Total Requirements $ 1,167,200 $ - $ 1,167,200 AIS-4659 8. Business Meeting Meeting Date: 05/25/2021 Length (in minutes):20 Minutes Agenda Title: RECEIVE UPDATE ON CITY FACILITIES CONSOLIDATION PROJECT Prepared For: Steve Rymer, City Management Submitted By: Carol Krager, Central Services Item Type: Update, Discussion, Direct Staff Meeting Type: Council Business Meeting- Main Public Hearing: No Publication Date: Information ISSUE The City has been evaluating the potential of consolidating its public facilities to better use valuable downtown land and build a modern, environmentally friendly community campus. This is known as the City Facilities Consolidation (CFC) project. STAFF RECOMMENDATION / ACTION REQUEST Receive updated report and provide direction on the CFC project and timing of a potential ballot measure. KEY FACTS AND INFORMATION SUMMARY Our facilities are aging, undersized, and are in need of expensive safety improvements, repairs, and system replacements. To meet the needs of our community now and into the future, we're considering consolidating city services in new buildings that will save our community members money over time, improve the safety of our facilities, add housing, and support a vibrant downtown. Our dialogue with the community on the CFC project has been continuous since the last Council update in January. Community members provided input on two different online surveys and city teammates gathered feedback from a number of boards and committees including the Committee for Community Engagement, Community Roundtable, Library Board, and Youth Advisory Council. Along with gathering input,we raised awareness about the importance of the CFC project via the 2021 State of the City, monthly Fireside Chats with Mayor Snider, and social media updates. The purpose of this report is to provide an update on our progress since the January 2021 Council presentation. City teammates will discuss a community polling plan, facility due diligence, and timing of a potential ballot measure. Our highest priority is ensuring we provide the Council with the necessary information you will need to make the right decisions for our community. OTHER ALTERNATIVES N/A COUNCIL GOALS, POLICIES,APPROVED MASTER PLANS A vibrant downtown and modern, environmentally friendly public facilities are important factors in advancing our Strategic Priorities and the Council's adopted 2021-23 Community Resiliency goal. Set the standard for excellence in public service and customer experience. Create a well-connected, attractive and accessible pedestrian network. Ensure development and growth supports the vision. DATES OF PREVIOUS COUNCIL CONSIDERATION 2/18/2020 - Discussion on Redevelopment of City Properties 1/19/2021 - Phase 2 Feasibility Report on City Facilities Consolidation Project Attachments No file(s) attached.