Oregon to launch affordable housing pilot program

The Oregon Land Conservation and Development Commission said Wednesday it has approved administrative rules to launch an affordable housing pilot program .

The rules adopted at the LCDC’s meeting in St. Helens last Thursday implement House Bill 4079, which allows two cities to develop affordable housing on up to 50 acres outside their urban growth boundaries without going through the normal urban growth boundary expansion process.

“This is the latest of several efforts by the Department of Land Conservation and Development to address the shortage of affordable housing,” said Commissioner Robin McArthur. “I’m especially proud that the rules and rulemaking process lay out a comprehensive list of measures cities can take to promote affordable housing, even if they are not part of the pilot program.”

The commission will select two cities for the pilot program, one of up to 25,000 population and one with more than 25,000.

At least 30 percent of the housing developed by the pilot projects must be affordable to families whose incomes are at or below 80 percent of the area median income, unless the development is a manufactured home park (in which case the income limit is 100 percent of the area median income).

House Bill 4079 states cities in Multnomah, Clackamas, Washington, Polk, Marion and Jefferson counties are not eligible for the program, and the pilot projects cannot be sited on high-value farmland.

“We are eager to see applications from cities and housing partners. The application requirements were constructed to be flexible and open to different types of development, and encourage a race to the top for the most compelling, competitive proposals – those that provide a higher percentage of affordable housing, and those that serve the neediest among us – to win approval,” said Commissioner Bart Eberwein. “We are grateful to our various partners who helped develop this pilot program.”

The Department of Land Conservation and Development developed the rules through a nine-month rulemaking process, which included a committee of people representing housing developers, cities, counties, researchers and affordability advocates.

The process included two webinars attended by representatives of local government, housing developers, homebuilders and consultants. Given the urgency of the issue, the commission moved quickly and adopted the rules more than five months before the legislative deadline of July 1, 2017.

“We hope this pilot program can provide long-term affordable housing for those Oregonians who desperately need it,” said DLCD Director Jim Rue. “We also hope the program enhances our understanding of the barriers to the development of affordable housing, including the intersection of urban growth boundaries and housing prices.”

Applications for the pilot program will be available in the late spring. The department will provide technical assistance to cities and their partners who are interested in the opportunity. Cities interested in the program should contact Gordon Howard, Principal Urban Planner, at (971) 673-0964.

House Bill 4079 was part of a package of four housing bills passed by the 2016 Oregon Legislature. Housing affordability remains a top concern of the 2017 Oregon Legislature, as well as the Department of Land Conservation and Development. DLCD plans to publish additional resources on affordable housing in the coming months.

For more about the rules, visit: http://www.oregon.gov/LCD/Pages/HB4079_AHPP.aspx