Presented by: ECONorthwest March 17, 2011

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 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 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 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 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 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 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 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 Current rate is 9.5% and generated $2.2 M in % 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 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 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 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 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 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 Tiny homes are structures that range from 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 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 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 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 Preliminary evaluation Any options to add? Any options to eliminate? Any options to bundle? Preliminary prioritization Refinement of high-priority options