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City of Newport Housing Needs Analysis Technical Advisory Committee #4 Preliminary Discussion of Housing Policy Options. Presented by: ECONorthwest March 17, 2011. Agenda. Project progress report (5 minutes) Overview of potential policy options (ECO, 30 minutes)

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City of NewportHousing Needs AnalysisTechnical Advisory Committee #4Preliminary Discussion of Housing Policy Options

Presented by:

ECONorthwest

March 17, 2011


Agenda
Agenda

  • Project progress report (5 minutes)

  • Overview of potential policy options (ECO, 30 minutes)

  • Prioritization and discussion of policy options (All, 80 min)

    • Prioritization

    • Refinement of options

  • Next steps (5 min)


Key issues
Key issues

  • Limited multifamily apartment development

  • Higher-density residential land located in the wrong place (inconsistent with the zoning intent or with constraints)

  • Aging housing stock—particularly multifamily. This provides a limited inventory of multifamily units with amenities such as open space

  • Lack of affordable workforce housing in Newport

  • Substantial in-commuting by workers at Newport businesses who live in outlying areas



Work with lincoln clt lcha and other nonprofits
Work with Lincoln CLT/LCHA and other nonprofits

  • CLT’s purchase land for development and enter into long term leases with owners

    • Price of home is separated from price of land

    • Focus appears to be on owner products

  • Housing Authority’s develops low-income/cost housing

    • Focus on a variety of populations

    • Have access to a range of funding programs


Land aggregation site assembly
Land aggregation/site assembly

  • Potential Goals:

    • Provide sites for rental apartments in appropriate locations close to services

    • Reduce the cost of developing multifamily rental units

  • Potential funding sources:

    • URD tax increment, lodging tax, grants, donations, in lieu of fees or special assessments, general fund

  • Potential issues:

    • Restrictions on use of funds, on sale of land


Inventory evaluate surplus city lands
Inventory/Evaluate Surplus City Lands

  • Potential Goals:

    • Provide sites for rental apartments in appropriate locations close to services

    • Reduce the cost of developing multifamily rental units

  • About 110 city-owned acres in residential areas

  • Not all developable

  • Would require a detailed evaluation of each property


Eco recommendations
ECO Recommendations

  • Create a land bank program that involves the City and nonprofit partners (CLT, LCHA, CDC, etc)

  • Evaluate city-owned properties

  • Further research potential funding options

  • Further research issues related to sale of city-owned properties



Restructure sdcs
Restructure SDCs

  • Legal analysis for Wilder indicates city has the ability to provide SDC relief

    • Potential equity issues

    • Not clear that the city can use higher rates to replace lost revenues

    • Some cities use “in lieu of” fees to help support housing programs

  • ECO Recommendations:

    • Table SDC discussion

    • ECO conduct further analysis of in lieu of fees


Use urd funds
Use URD funds

  • Use of urban renewal is possible for housing projects

  • Would probably require establishing a new district on the North side of the bay

  • ECO Recommendation:

    • Consider URD as a lower priority strategy, but retain on list of options as a potential medium-term option (2-5 years)


Use lodging tax revenue
Use lodging tax revenue

  • Current rate is 9.5% and generated $2.2 M in 2009

  • 70% of revenue must be spent on tourism or tourism-related activities

  • Workforce housing is probably not a tourism-related activity

  • Use of funds for housing would compete with other uses

  • ECO Recommendation: City staff to conduct further analysis in short-term (1-2 years)


Consider additional exemptions from school tax
Consider additional exemptions from School Tax

  • Tax is $1 per 1000 sf

  • Tax already exempts affordable housing projects that are available to households than earn less than 60% of median HH income for area

  • ECO Recommendation: drop this option


Research grant programs
Research grant programs

  • OHCS department has a range of grant programs

  • HUD programs, include dollar home program

  • LCHA already uses some of these

  • Others would be available to the City

  • ECO Recommendation: Staff should work with project partners to identify which programs have the most promise for Newport



Establish exclusive multifamily zone
Establish exclusive multifamily zone

  • Newport’s multifamily zones (R-3/R-4) allow single-family housing types

  • Many are located in areas that are not conducive to multifamily housing

  • More than 50% of land is designated HDR

  • It is not clear that the prohibition of single-family types would result in more rental dwellings

  • ECO Recommendation: Reassess as a medium-term option (2-5 years)


Evaluate regulatory barriers to multifamily housing
Evaluate regulatory barriers to multifamily housing

  • ECO’s preliminary evaluation did not identify any major barriers

  • ECO Recommendation: Consider adding more housing types to definitions and allowable housing type list (row houses, co-housing, etc)


Reduce minimum lot size
Reduce minimum lot size

  • This strategy would apply to R-1 and possibly R-2 zone

  • Smaller lot sizes would reduce housing cost

  • Could address a segment of workforce housing need

  • ECO Recommendation: Consider as medium-term strategy (2-5 years)


Allow tiny homes
Allow tiny homes

  • Tiny homes are structures that range from 80-400 s.f.

  • Preliminary research identified a lot of activity on the design side, but less on the regulatory side

  • TAC suggested requiring tiny homes comply with applicable building code standards

  • Identify a list of pre-approved designs

  • Many potential options for how to address tiny homes

  • Rec0mmendation: Develop a more refined concept for tiny homes


Accessory dwelling units
Accessory dwelling units

  • ADU: an independent dwelling unit that shares, at least, a tax lot in a single-family zone

  • Many policy variations—some are controversial

  • Our research in other cities suggests low production

  • Recommendation: Consider as a mid-term strategy (2-5 years)


Allow narrow streets
Allow narrow streets

  • Reduces housing costs by reducing land used and infrastructure

  • Some precedence in Newport (Wilder)

  • TGM has a lot of materials on narrow streets

  • Recommendation: Consider as a middle-term option: 2-5 years


Multifamily housing design
Multifamily housing design

  • Creates amenity that may make multifamily housing more attractive

  • Includes amenities such as open space, play areas, covered parking, etc.

  • Regulatory standards may add cost

  • Recommendation: Consider as a middle-term option: 2-5 years


Discussion
Discussion

  • Preliminary evaluation

    • Any options to add?

    • Any options to eliminate?

    • Any options to bundle?

  • Preliminary prioritization

  • Refinement of high-priority options


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