inclusionary zoning in oregon - old presentation from 2011 i did
TRANSCRIPT
PROJECT
DATE AUTHOR04.13.11 PETER KOEHLER
INCLUSIONARY ZONING:AN AFFORDABLE HOUSING STRATEGY FOR OREGON
What is Inclusionary Zoning?
WHAT?A law that requires market rate residential developments to include an “affordable” component.
WHY?
WHAT?A law that requires market rate residential developments to include an “affordable” component.
To create a relatively permanent supply of affordable housing for a diverse labor force; to create mixed income neighborhoods
WHERE?
WHY?
WHAT?A law that requires market rate residential developments to include an “affordable” component.
To create a relatively permanent supply of affordable housing for a diverse labor force; to create mixed income neighborhoods
In many jurisdictions. Usually in municipalities, but also some counties, and even entire states.
The Oregon Context
‣ Oregon is the only state that prohibits IZ
‣ 1999 ban on IZ a response to pressure from developers
‣ Recent efforts to repeal the ban have seen traction in the legislature.
Image Source: Eugene, Oregon Lane County Agriculture Extension Service Closes, www.smartgrowthusa.wordpress.com
The Problem:The State of Oregon has an affordable housing deficit.
Many Oregonians spend too much on housing and are priced out of certain areas.
Image Source: Citizens’ Housing and Planning Association, www.chapa.org
The Solution:The Oregon legislature should overturn the inclusionary zoning ban.
This would help supply affordable housing for a diverse work force and spur mixed-income neighborhoods.
Image Source: Citizens’ Housing and Planning Association, www.chapa.org
4%4%
1%2%
5%
6%
4%
10%
12% 18%
34%
Avg. U.S. Household Expenditures
HousingTransportationFoodInsurance/PensionsApparel and ServicesHealthcareEntertainmentEducationPersonal CareCash ContributionsMisc.
Source: Consumer Expenditures, US Dept. of Labor, US Bureau of Labor Statistics, 2009
0
10
20
30
40
50
Bottom 20% Second 20% Third 20% Fourth 20% Top 20%
Percentage of Household Income spent on Housing Costs by Quintiles of Income
Source: Consumer Expenditures, US Dept. of Labor, US Bureau of Labor Statistics, 2009
Oregon Housing Wage:$14.93 / hr
Average Wage for Renters:$12.84 / hr
Source: US Census via Eugene Register Guard
$0
$50,000
$100,000
$150,000
$200,000
$250,000
1990 2006
Median Home Value in Oregon, 1990 and 2006
Source: US Census via Eugene Register Guard
$0
$50,000
$100,000
$150,000
$200,000
$250,000
1990 2006
Median Home Value in Oregon, 1990 and 2006
A 254% INCREASE!
Source: US Census via Eugene Register Guard
The Magnitude of the Problem
0
20
40
60
80
99-Q1 00-Q2 01-Q3 04-Q2 05-Q3 06-Q4 08-Q1 09-Q2 10-Q3
NAHB HOUSING OPPORTUNITY INDEX
HO
I Sco
re
NATIONAL
PORTLAND MSA
Source: Wells Fargo/NAHB HOI Website
HOUSEHOLDS IN PORTLAND ARE MORE COST-BURDENEDTHAN THE NATION AS A WHOLE
0%
10%
20%
30%
40%
50%
Portland US
Source: Portland Bureau of Planning and Sustainability 2009 Housing Affordability Report
Work hours needed per week to afford units of various sizes at fair market rents in Portland (2009)
0
20
40
60
80
100
120
140
0 BR 1 BR 2 BR 3 BR 4 BR
Hou
rs o
f wor
k/w
eek
Minimum wage earnerMean renter wage earner
Source: Portland Bureau of Planning and Sustainability 2009 Housing Affordability Report
0
1000
2000
3000
4000
5000
6000
1988 1994 1996 1997 1998 1999 2002 2004 2007 2010
Total Units of Housing in Downtown Portland affordable to single, full time minimum wage earner
Source: 2010 Northwest Pilot Project Downtown Portland Affordable Housing Inventory
Source: Portland Bureau of Planning and Sustainability 2009 Housing Affordability Report
Source: Portland Bureau of Planning and Sustainability 2009 Housing Affordability Report
OTHER CONTRIBUTING FACTORS
‣ Oregon’s Urban Growth Boundary
‣High unemployment
‣ Loss of rental housing due to condo conversions (4500 condo conversions between 2000 and 2007
‣ Closure of mobile home parks
Source: Portland Bureau of Planning and Sustainability 2009 Housing Affordability Report
Case Studies
1. Montgomery County, MD
2. California
3. Boston Suburbs
Alternatives
AlternativesSTATE MUNICIPALITIES
Alternatives
Do Nothing. Maintain IZ Prohibition.
STATE MUNICIPALITIES
Alternatives
Do Nothing. Maintain IZ Prohibition.
Overturn ban and allow municipalities
to determine IZ programs.
STATE MUNICIPALITIES
Alternatives
Do Nothing. Maintain IZ Prohibition.
Overturn ban and allow municipalities
to determine IZ programs.
Overturn ban and create mandatory state IZ program.
STATE MUNICIPALITIES
Alternatives
Do Nothing. Maintain IZ Prohibition.
Overturn ban and allow municipalities
to determine IZ programs.
Overturn ban and create mandatory state IZ program.
Do not create IZ program
STATE MUNICIPALITIES
Alternatives
Do Nothing. Maintain IZ Prohibition.
Overturn ban and allow municipalities
to determine IZ programs.
Overturn ban and create mandatory state IZ program.
Do not create IZ program
Create voluntary IZ program
STATE MUNICIPALITIES
Alternatives
Do Nothing. Maintain IZ Prohibition.
Overturn ban and allow municipalities
to determine IZ programs.
Overturn ban and create mandatory state IZ program.
Do not create IZ program
Create voluntary IZ program
Create mandatory IZ program
STATE MUNICIPALITIES
Alternatives
Do Nothing. Maintain IZ Prohibition.
Overturn ban and allow municipalities
to determine IZ programs.
Overturn ban and create mandatory state IZ program.
Do not create IZ program
Create voluntary IZ program
Create mandatory IZ program
STATE MUNICIPALITIES
Recommendation
Do Nothing. Maintain IZ Prohibition.
Overturn ban and allow municipalities
to determine IZ programs.
Overturn ban and create mandatory state IZ program.
Do not create IZ program
Create voluntary IZ program
Create mandatory IZ program
STATE MUNICIPALITIES
Recommendation
Do Nothing. Maintain IZ Prohibition.
Overturn ban and allow municipalities
to determine IZ programs.
Overturn ban and create mandatory state IZ program.
Do not create IZ program
Create voluntary IZ program
Create mandatory IZ program
STATE MUNICIPALITIES
State Overturn IZ Ban
Provide incentives and flexibility for developers
Provide incentives and flexibility for developers
Recommendation
State Overturn IZ Ban
Adopt Mandatory IZ program
Provide incentives and flexibility for developers
Provide incentives and flexibility for developers
Recommendation
State Overturn IZ Ban
Adopt Mandatory IZ program
Provide incentives and flexibility for developers
Provide incentives and flexibility for developers
Provide incentives and flexibility for developers
Recommendation
State Overturn IZ Ban
Adopt Mandatory IZ program
Provide incentives and flexibility for developers
Encourage IntersectoralPartnerships
Provide incentives and flexibility for developers
Provide incentives and flexibility for developers
Recommendation
State Overturn IZ Ban
Adopt Mandatory IZ program
Provide incentives and flexibility for developers
Encourage IntersectoralPartnerships
Provide incentives and flexibility for developers
Provide incentives and flexibility for developers
Track Progress
Recommendation
CAN IT HAPPEN?
1. Oregon has an affordable housing deficit
CONCLUSIONS
1. Oregon has an affordable housing deficit
CONCLUSIONS
2. Inclusionary Zoning is a tool utilized nationwide by municipalities to create affordable housing units.
1. Oregon has an affordable housing deficit
CONCLUSIONS
2. Inclusionary Zoning is a tool utilized nationwide by municipalities to create affordable housing units.
3. The State of Oregon banned IZ.
1. Oregon has an affordable housing deficit
CONCLUSIONS
2. Inclusionary Zoning is a tool utilized nationwide by municipalities to create affordable housing units.
3. The State of Oregon banned IZ.
4. Depending on whom you ask, IZ is either effective or not. Criteria matters!
1. Oregon has an affordable housing deficit
CONCLUSIONS
2. Inclusionary Zoning is a tool utilized nationwide by municipalities to create affordable housing units.
3. The State of Oregon banned IZ.
4. Depending on whom you ask, IZ is either effective or not. Criteria matters!
5. Oregon should overturn the IZ ban.
1. Oregon has an affordable housing deficit
CONCLUSIONS
2. Inclusionary Zoning is a tool utilized nationwide by municipalities to create affordable housing units.
3. The State of Oregon banned IZ.
4. Depending on whom you ask, IZ is either effective or not. Criteria matters!
5. Oregon should overturn the IZ ban.
6. Municipalities, especially those with low affordability and integration, should implement mandatory IZ programs in exchange for development incentives.