Presented by:

ECONorthwest

March 17, 2011

AgendaProject 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 issuesLimited multifamily apartment developmentHigher-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 nonprofitsCLT’s purchase land for development and

enter into long term leases with ownersPrice of home is separated from price of landFocus appears to be on owner products

Housing Authority’s develops low-income/cost housingFocus on a variety of populationsHave access to a range of funding programs

Land aggregation/site assemblyPotential 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 LandsPotential 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 developableWould require a detailed evaluation of each

property

ECO RecommendationsCreate a land bank program that involves the

City and nonprofit partners (CLT, LCHA, CDC, etc)

Evaluate city-owned propertiesFurther research potential funding optionsFurther research issues related to sale of

city-owned properties

Restructure SDCsLegal analysis for Wilder indicates city has the

ability to provide SDC reliefPotential equity issuesNot clear that the city can use higher rates to replace

lost revenuesSome cities use “in lieu of” fees to help support housing

programs

ECO Recommendations: Table SDC discussionECO conduct further analysis of in lieu of fees

Use URD fundsUse of urban renewal is possible for housing

projectsWould 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 revenueCurrent rate is 9.5% and generated $2.2 M in

200970% of revenue must be spent on tourism or

tourism-related activitiesWorkforce housing is probably not a tourism-

related activityUse 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 TaxTax is $1 per 1000 sfTax 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 programsOHCS department has a range of grant

programsHUD programs, include dollar home programLCHA already uses some of theseOthers 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 zoneNewport’s multifamily zones (R-3/R-4) allow

single-family housing typesMany are located in areas that are not conducive

to multifamily housingMore than 50% of land is designated HDRIt 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 housingECO’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 sizeThis strategy would apply to R-1 and possibly

R-2 zoneSmaller lot sizes would reduce housing costCould address a segment of workforce

housing need

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

Allow tiny homesTiny 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 sideTAC suggested requiring tiny homes comply with

applicable building code standardsIdentify a list of pre-approved designsMany potential options for how to address tiny homes

Rec0mmendation: Develop a more refined concept for tiny homes

Accessory dwelling unitsADU: 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 streetsReduces housing costs by reducing land used

and infrastructureSome 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 designCreates amenity that may make multifamily

housing more attractiveIncludes 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

DiscussionPreliminary evaluation

Any options to add?Any options to eliminate?Any options to bundle?

Preliminary prioritizationRefinement of high-priority options