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Presented by: ECONorthwest March 17, 2011

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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Presented by: ECONorthwest March 17, 2011

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  1. City of NewportHousing Needs AnalysisTechnical Advisory Committee #4Preliminary Discussion of Housing Policy Options Presented by: ECONorthwest March 17, 2011

  2. 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)

  3. 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

  4. Land based options

  5. 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

  6. 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

  7. 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

  8. 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

  9. Finance Tools

  10. 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

  11. 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)

  12. 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)

  13. 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

  14. 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

  15. Regulatory Options

  16. 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)

  17. 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)

  18. 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)

  19. 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

  20. 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)

  21. 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

  22. 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

  23. 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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