SUMMIT WORKGROUP RESULTS

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					SUMMIT
WORKGROUP
RESULTS
On February 21, 2006, over 200 part icipants from Jackson, Josephine, and Curry count ies
gat hered in Medford, Oregon for t he Sout hern Oregon Workforce Housing Summit , t he region’s
first event of it s kind. The summit was the culminat ion of eight months of planning by a group of
fift een individuals represent ing bot h public and private sect or organizat ions.

The day-long event was structured to accomplish several t hings:
   (1) Create an awareness and consistency of understanding among attendees about the
       increasing inabilit y of the region t o provide affordable workforce housing. Init ial
       orientat ion to t he issue was the task of t he Direct or of t he Oregon Depart ment of Housing
       and Communit y Services, who was followed by a stat ist ical overview t hat focused on the
       region given by t he Oregon Employment Depart ment’s Regional Economist ;
   (2) Allow attendees t o hear case studies from a panel of major regional employers about t he
       impact s of a lack of workforce housing. Part icipat ing on t he panel were representat ives
       from Curry Count y government , Asante, Bear Creek Corporat ion, and MasterBrand
       Cabinets;
   (3) Ex pose attendees t o ex amples from other areas of programs and st rategies t hat have
       proven effect ive in improving the affordabilit y and availabilit y of workforce housing.
       Part icipat ing on t his panel were representat ives from t he Vancouver Housing Aut horit y,
       t he Marin Workforce Housing Trust , St. Vincent de Paul Societ y, and David Evans &
       Associates (for t he Cit y of Milwaukie); and
   (4) Allow attendees to discuss, priorit ize, and refine a collect ion of workforce st rategies
       gat hered as a result of ex tensive research by t he planning group, and to gat her any
       addit ional ideas from t he t hirteen workgroups of attendees.

The summary below, and t he attached workgroup result s, document t he outcome of t he work
performed described in (4). To perform t he work, attendees divided int o four focus areas:
   o   How Can We Improve Access and Affordability? Strategies for housing providers, land
       holders, and builders (private or public associat ions, co-ops, t rusts, non-profit s, et c.) to
       increase housing affordabilit y and accessibilit y (four groups). ....................... see page 3
   o   What Can the Public Sector Do? Addit ions, changes, or refinements t o regulat ions
       impact ing t he costs and availabilit y of land and housing, t he t imeliness of development ,
       and the location, mix , and determinat ion of housing t ypes (four groups). ..... see page 4
   o   What Can Employers Do? Employer-driven st rategies to assist employees wit h housing,
       eit her by affect ing wages and benefit s, assist ing wit h t he lending process, or by the direct
       provision of land and/ or housing (t wo groups).............................................. see page 5




                  Major funding for this event generously provided by
                                Evergreen Federal Bank, and
                         Oregon Housing & Com m unity Services.
    o   What Can Be Done on the Money Side? St rategies t o improve effect iveness and
        availabilit y of funding sources for development, ownership or rental of workforce housing
        (t hree groups). .............................................................................................. see page 7

Each workgroup was asked t o review t he st rategies for it s workgroup, and t o choose t hose t hat
t he part icipants felt were most likely t o have t he most impact in t he region if enacted. They were
t hen asked for any refinement s or comment s pertinent to t he selected st rategies, whether it
would be in t he longer or shorter term before t hey could be operat ional in t he region, and what
t he lead sector would be t hat would be most effect ive in putt ing t he st rategy in place. In
addit ion, part icipant s were given t he opportunit y t o propose addit ional st rategies.

In t he summary workgroup result s that follow, “majorit y st rategies” were t hose chosen by more
t han t he majorit y of workgroups in each focus area; “minorit y strategies” were those chosen by
fewer t han a majorit y of workgroups in each focus area; and “addit ional st rategies” were those
t hat were new st rategies proposed by t he part icipants.

This report includes:
Summary workgroup result s, by focus area .................................................................. page 3
Transcript ion of workgroup boards, by focus area ........................................................ page 9
Descript ion of preliminary st rategies evaluated by workgroups, by focus area ............ page 19
Local newspaper art icles on t he Summit ............................................................... at t achm ent s




Southern Oregon Workforce Housing Sum m it Report                                 INTRODUCTION                          page 2
SUMMARY WORKGROUP RESULTS

Workgroup Results: HOW CAN WE IMPROVE ACCESS & AFFORDABILITY?
Majorit y St rategies
The most popular strategies across the four “Access and Affordability” workgroups addressed the
need for a viable and well-funded community land tr ust, enhanced visibility for existing
housing pr ogr ams and mechanisms, a region-wide focus on infill, and t he necessit y of
conduct ing a comprehensive needs assessment on workforce housing demands prior t o
developing region-wide public programs.
o   The major attract ion of a comm unit y land t r ust for part icipants was it s abilit y t o provide long
    term affordable housing by t aking ownership of t he land, while allowing the structure itself to
    become part of t he housing market . Some of t he comment s of t he groups were t hat it should
    be regional, non-profit, include mix ed uses, and that the housing be available for use by those
    in t he workforce.
o   There was acknowledgement that there are import ant exist ing pr ogr am s of housing available
    in t he region, and that it was important to make every effort to disseminate informat ion about
    t hese to all concerned. The groups t hought t hat effort s should be both passive and act ive –
    from a comprehensive web site t hat could be ex tensively linked t o a variety of regionally
    popular web sites, t o brochures wit h program descript ions and contact informat ion, to
    targeted out reach and events. Also ment ioned was the need to characterize t he beneficiaries
    of workforce housing as people who work hard t o make societ y funct ion.
o   Inf ill was considered an important t ool in it s use of vacant or underutilized land and buildings
    in urban areas, especially if incentives were offered to encourage the use of that land to create
    workforce housing. There were a number of comment s t hat focused on t he land to involve
    t he surrounding neighborhood in the discussion to establish workforce housing, and an equal
    number t hat st ressed t he importance of combining commercial and resident ial whenever
    possible t o increase t he financial viability of the project. Flex ibility was a common theme, due
    t o t he often odd shapes and smaller sizes of t he available parcels, as was the need t o look at
    increased densit ies, building up, and smaller home sizes.
o   Perhaps the most universal agreement was on the import ance of a com pr ehensive needs
    assessm ent to establish both a stat ist ical and int uitive guide for designing future workforce
    housing programs. Comment s centered on t he import ance of having bot h a local and
    regional focus for t he assessment , using a uniform approach, involve all t he players in t he
    communit y, and agree to use the results in designing public/ private sector programs.

Minorit y St rategies
Ot her st rategies chosen by one or more of the workgroups were r ecor dable r egulator y
agr eements, minimal house sizes, r eduction in complexity in constr uction and design, non-
pr ofits oper ating r ental pr oper ties, r edevelopment of industr ial and commer cial pr oper ties,
public sector pur chase of r ur al lands, and the donation of publicly-owned lands.
o   Recor dable r egulat or y agr eement s were chosen as an important st rategy for much t he same
    reason as the communit y land t rusts were – because of t heir abilit y t o provide longer term
    affordabilit y. Part icipant s did see t he value in subsidizing t he initial purchaser as long as that
    subsidy would be protected by a limit on appreciat ion int o the future, and that the property in
    future sales could only be purchased by a member of t he workforce as a primary dwelling.
o   Bot h minim al house sizes and the need to r educe complexit y in const ruct ion and design were
    chosen as means of reducing init ial home prices. Comments dealt with the need for attractive
    designs, creat ing a sense of place, creat ing a posit ive image for smaller and modular homes


Southern Oregon Workforce Housing Sum m it Report           SUMMARY WORKGROUP RESULTS               page 3
    among t he public at large, incorporat ing addit ional st rategies such as incremental and flex
    housing as appropriate, and t he need to see if adjust ment s could be made t o building codes
    t o make it work.
o   Interest in increasing t he supply of land were ex pressed through t hree st rategies –
    r edevelopment of indust r ial and commer cial pr oper t ies, the targeted public sect or pur chase of
    r ur al lands, and t he donat ion of publicly-owned lands. In t he potent ial of using some
    indust rial and commercial propert ies for resident ial uses, part icipants were int erested in t he
    possibilit ies of eit her creat ive mix ed uses or t he full dedicat ion for resident ial use of some of
    t hese lands that were no longer as viable as t hey once were for employment uses. The idea of
    t he public sect or purchasing selected rural lands was a possibilit y as long as the land were
    designed to be permanent ly affordable whet her it stayed in public hands or not , and an
    addit ional recommendat ion was made t hat land in private hands be allowed in cit ies as long
    as a significant port ion be dedicated t o workforce housing. There was an impression that the
    public sector had a significant invent ory of urban land, developed and undeveloped, t hat
    could be made available for housing. Cit ies were also encouraged t o seek donat ions of land
    from private owners.
o   Finally, part icipant s wanted t o st ress that the solution lay not just in homeownership, but also
    in t he availabilit y of rental unit s. Non-pr of it owner ship and m anagem ent of r ent al unit s was
    considered an import ant means of ensuring t he availabilit y of lower-priced unit s, especially if
    part nerships were created bet ween t he non-profit operat ors and public and private sectors.

Addit ional Proposed St rategies
The “Access and Affordabilit y” workgroups also proposed four addit ional st rategies – t he
legalization of inclusionar y zoning and the r eal estate tr ansfer tax, and establishing
minimum densities. Each of these strategies were chosen in other workgroups and are described
t here.


Workgroup Results: WHAT CAN EMPLOYERS DO?
Majorit y St rategies
As t heir most popular st rategies, t he “Employer” workgroups chose employee demand sur veys,
home buyer and financial liter acy education, individual development accounts, gr oup
mor tgage or ientation plans, and employer par tner ships with agencies/ non-pr ofits.
o   Em ployee sur veys on housing dem and as the most import ant first step in any employer
    program. As was ex pressed by t he “Access and Affordabilit y” workgroups in t heir support of
    a regional housing needs assessment , part icipants here t hought programs should be
    established only after a part icular organizat ion’s needs were fully understood. Part icipants
    felt t hat it would be import ant t hat both rental and home ownership need be understood, and
    t hat the ident ified need be quant ified. Fannie Mae was ment ioned as a resource in assist ing
    in designing a model survey.
o   Home buyer and f inancial lit er acy educat ion was ident ified as a crit ical and yet inex pensive
    element of an employer housing program. Part icipants st ressed t he benefit s of employers
    part nering wit h organizat ions offering this kind of education, and of offering the education to
    all new employees, and to all ex ist ing employees contemplat ing home ownership.
o   Individual developm ent account s for t he ex pressed purpose of saving for t he purchase of a
    house were considered t o be a potent ially powerful recruit ment tool and ex isting employee
    benefit . Alt hough a 50-50 mat ch by t he employer could prove ex pensive, rest rict ing the
    benefit to t he first -t ime homebuyer, and lowering t he mat ch, could reduce t he cost while st ill
    preserving an import ant major element of an employer program. Part icipants t hought the
    benefit should be t ied to a financial lit eracy course.



Southern Oregon Workforce Housing Sum m it Report          SUMMARY WORKGROUP RESULTS               page 4
o   Gr oup m or t gage or ient at ion plans, which are essent ially volume discount programs for
    mort gage costs, were considered a high impact / low cost benefit for larger employers, or
    employers that could group t hemselves under an associat ion, such as the Chamber of
    Commerce. Emphasis was placed on the reciprocal benefit s t hat could accrue from a
    lender/ employer partnership of t his t ype.
o   Part icipants put a high degree of importance t o the establishment of em ployer par t ner ships
    wit h agencies and non-pr of it s. They emphasized the benefit to the employer of relying on the
    t remendous ex pert ise ex ist ing in specialized organizat ions, as well as t he benefit to t he
    agencies and non-profit s of potent ially adding a new source of revenue.

Minorit y St rategies
Ot her st rategies chosen by t hese workgroups were down payment loans and/ or closing cost
assistance, mor tgage guar antees, mor tgage buy-downs, pur chase of mor tgage backed
secur ities, employer -developed homeowner ship units, and t he encouragement of enhanced
feder al tax cr edits.
o Part icipants considered st rategies that direct ly reduce t he cost of owning a home, such as
    down paym ent loans and/ or closing cost assist ance, m or t gage buy-downs, and m or t gage
    guar ant ees part icularly powerful. Part icipants pointed out that , depending on how t hey are
    st ructured, employers could t ie eventual payback t o employee longevit y, t hus reducing costs
    associated wit h employee turnover.
o Pur chase of m or t gage-backed secur it ies was cited as a potent ially useful way of funding
    programs of housing assistance, and of establishing partnerships with public sector agencies
    and financial inst it ut ions. In addit ion, as anot her means of lessening t he financial impact of
    employee programs, participants pointed to the proposed “Housing America’s Workforce Act”,
    a bill pending in Congress t hat proposes a tax credit for bot h homeownership and rental
    assistance provided through employer programs.
o Finally, participants were interested in the possibility of employer -developed housing, although
    it would be a benefit rest ricted to larger employers or a consort ium of employers. They
    agreed wit h t he import ance of ensuring t he long-term affordabilit y of t he homes, but
    proposed no mechanisms in part icular.

Addit ional Proposed St rategies
Part icipants added a st rategy directed at raising as much awar eness as possible of t he
import ance of employer housing assistance programs, one that st ressed the import ance of
establishing a clear inghouse for employers of informat ion about st rategies and on the ground
programs, and one that proposes a collaborative effort t o advocate for incentive mechanisms to
assist employers in offering housing programs.


Workgroup Results: WHAT CAN BE DONE ON THE MONEY SIDE?
Majorit y St rategies
The t hree “Money” workgroups shared majorit y support for st rategies calling for an emphasis on
t he low income housing tax cr edits pr ogr am, an incr ease in the r ecor dation fee or the
establishment of a r eal estate tr ansfer fee, t he creat ion of a housing tr ust f und, and t he
ut ilizat ion of “silent” second mor tgages.
o   Low incom e t ax cr edit s were emphasized because of t he crit ical role t hey play in t he
    acquisit ion, rehabilit at ion, or const ruction of rental propert ies. Even t hough part icipants
    point ed out t hat t he program needs t o reduce it s complex it y, dramat ically increase it s
    funding, and lengt hen t he t imeline for mandat ory affordabilit y, it was recognized as an
    ex t remely important tool even wit h it s present const raint s.
o   An incr ease in t he r ecor dat ion f ee and/ or t he est ablishm ent of a r eal est at e t r ansf er f ee was
    acknowledged as the most successful funding mechanism of housing programs nat ionwide.


Southern Oregon Workforce Housing Sum m it Report              SUMMARY WORKGROUP RESULTS                 page 5
    Part icipants were aware of t he difficult y in Oregon of inst it ut ing t his st rategy, but saw no
    alternat ive. Proposals were made that the money collected could only go t o workforce
    housing, that t here could be ex empt ions for such things as first -t ime home buyers, for t he
    first $150,000 of t he housing cost , that t here would be limit s to increases in t he fee, etc.
    Part icipants also suggested t hat t here be a limit to who could benefit from t he program,
    perhaps no more t han 120% of median income, and t hat money be dedicated t o specific
    programs.\
o   A regional Housing Tr ust Fund was suggested as the logical financial mechanism for funds
    collect ed through an increased recordat ion fee or a real estate t ransfer fee. Fees would be
    used for t he development, rehabilit at ion, and preservat ion of affordable housing units, either
    homeownership or rental. Funds would be rest ricted t o workforce housing programs, have
    local/ regional cont rols, and be st ructured to receive funding from as many different sources
    as possible.
o   “Silent ” second mor t gages were seen as an attractive mechanism to reduce the monthly cost of
    homeownership for either private or public sector employees and for discouraging speculation
    and high employee turnover, alt hough t he st rategy does not provide affordabilit y beyond the
    benefited homeowner unless combined wit h anot her mechanism such as a recordable
    regulatory agreement or a land t rust .

Minorit y St rategies
Ot her st rategies chosen by t he t hree “Money” workgroups were new mar kets tax cr edits,
demolition taxes, linkage fees, individual development accounts, coor dinated CRA
compliance, and shar ed owner ship mor tgages.
o   Part icipants chose dem olit ion t axes and linkage f ees as appropriate ways in which t o raise
    funds for housing programs because of their relationship with affordable housing - demolition
    fees because it is often the affordable housing stock t hat is demolished t o make way for
    unaffordable housing, and linkage fees because commercial and indust rial development
    create jobs, which t hen require employees who in turn require housing. There were
    numerous recommendat ions on how t o design t hese programs, such as waiving t he
    demolit ion fee if t he st ructure is being replaced by affordable housing, or increasing it if t he
    st ructure being removed is an import ant source of shelter for lower income workers, as well
    as ex empt ing living wage employers from t he linkage fees, and mix ing t he result ing housing
    t o include rental and homeownership unit s.
o   The t wo st rategies chosen for t heir use in increasing t he supply of affordable housing were
    new m ar ket s t ax cr edit s and coor dinat ed CRA compliance. New markets tax credits were seen
    as a useful way of indirect ly subsidizing t he workforce housing port ion of a mix ed-use
    development by providing tax credit s for t he non-resident ial port ion. In addit ion, t he
    potent ial of providing residents wit h essent ial services and employment opportunities locally
    in a mix ed-use development could potent ially mean savings in reduced t ransportat ion costs.
    Coordinated CRA compliance was seen as an opportunity for establishing needed coordination
    bet ween t he public and private sect or on workforce housing projects, and for direct ing
    statewide funding to areas wit h t he most crit ical need, rat her t han basing t he dist ribut ion of
    funds on populat ion. Part icipants also cit ed the benefit of pooling funds for larger projects.
o   Individual developm ent account s were recommended, as t hey were by one of the “Access and
    Affordabilit y” workgroups, for t heir potent ial in accelerat ing the t ime period in which an
    employee would be able t o qualify for home ownership. Part icipants recommended
    combining t hese accounts with programs such as “silent” second mortgages, one of the major
    st rategies cited above, or shar ed owner ship m or t gages, which permit homeowners t o
    gradually assume larger mont hly mortgage costs over t ime as t heir earnings increase by
    purchasing increased shares in t heir houses.



Southern Oregon Workforce Housing Sum m it Report         SUMMARY WORKGROUP RESULTS               page 6
Addit ional Proposed St rategies
Participants proposed several additional strategies that would address the affordability issue from
several different direct ions. A community investment f und would permit local funding of
housing project s, akin t o bonding. Another suggest ion was t o encourage landlords t o offer a
“lease to own” opt ion t o renters, and anot her to fund r ent subsidies with the ex pressed purpose
of allowing small landlords wit h fewer than 5 propert ies t o set rents at a lower amount than t heir
mort gage and operat ing costs. Finally, there was a suggest ion that CDBG monies only be used
for workforce housing programs in t he future, with the rational being that housing costs could be
t he most limit ing factor in the near future in businesses staying or locat ing in the region.


Workgroup Results: WHAT CAN THE PUBLIC SECTOR DO?
Majorit y St rategies
Inclusionar y zoning was selected by all four “Public Sect or” workgroups, and t his st rategy was
also added to t he mix by one of t he “Access and Affordabilit y” groups. Ot her st rategies which
received a majorit y response from t he Public Sect or groups were accessor y dwelling units,
mixed-use development, r edevelopment of industr ial and commer cial pr oper ties, and
housing constr uction and r ehabilitation code amendments. In addit ion, half t he Public Sector
groups plus one of t he Access and Affordabilit y groups chose to focus on minimum densities.
o   Groups t hat selected minim um densit ies endorsed achieving more densit y per acre, and
    encouraging mult i-family zones for better ut ilizat ion of land dedicated to affordable
    workforce housing. It was suggested that a model code could be created and promot ed for
    small cit ies.
o   Several groups wanted t o allow more accessor y dwelling unit s (ADUs) in single family zones.
    Part icipants noted t hat the unit could be inside the primary dwelling rat her t han attached or
    separate. The size and occupancy of t he ADUs were considered, as well as a requirement that
    t he propert y owner reside eit her in t he primary unit or t he ADU.
o   Mixed-use developm ent generated a wide range of comment s. In addit ion t o encouraging
    higher density and more affordable housing in close prox imit y t o employment , retail and
    commercial centers, groups comment ed that “mix ed-use” should also refer to mix ed income
    housing as well as mix ed housing t ypes and densit ies. Mix ed use can be wit hin a single
    building, or t o provide greater flex ibilit y for uses throughout a neighborhood. There were
    also comments on hi-rise housing and environmental uses such as st orm detent ion. It was
    noted t hat t here would need to be a change in t he law t o allow mix ed use (mix ed income)
    development by housing authorit ies.
o   Comments on inclusionar y zoning included acknowledgment of the need to change state law,
    and potential opposition to that change. Suggestions included encouraging local jurisdictions
    t o pass resolut ions direct ing t he Oregon legislature t o overturn the ban. In the meant ime,
    benefit s could be provided to developers who voluntarily do inclusionary building. Groups
    comment ed that , once available, inclusionary zoning should enable a variety of housing types
    and allow innovat ive forms as well as have a workforce housing focus.
o   In select ing r edevelopment of indust r ial and commer cial pr oper t ies, groups wanted t o
    encourage use of underut ilized public or private propert ies. By looking at resident ial uses in
    indust rial zones, ex ist ing infrast ructure can be used. Redevelopment can help cit ies
    rebalance their supplies and needs for indust rial/ commercial and resident ial lands.
o   Housing const r uct ion and r ehabilit at ion code amendment s were primarily seen as a way to
    take advantage of non-t radit ional building met hods. Part icipants t hought t hat building and
    development codes should be changed in light of improvements in building technology, and
    should not prohibit or discourage alternat ive const ruct ion. Comment s focused on allowing
    modular and manufactured opt ions.


Southern Oregon Workforce Housing Sum m it Report       SUMMARY WORKGROUP RESULTS             page 7
Minorit y St rategies
Many ot her st rategies were selected by one or t wo Public Sect or workgroups: incr eased zoning
for multi-family development, density bonuses, accessor y dwelling units, minimum lot and
building size, cluster design, joint municipal planning, pr ior ity r eview of affor dable housing
pr ojects, constr uction of smaller homes, development fee waiver s or abatements for
affor dable housing, pr oper ty tax abatement or exemption for r ehabilitated buildings used
for wor kfor ce housing, pr oper ty tax abatement or exemption for constr uction of new
wor kfor ce housing, r esidential tax cr edit for r ehabilitating affor dable housing, pr efer ential
expansion of city ur ban gr owth boundar ies for the cr eation of wor kfor ce housing, maximum
char itable tax cr edits for individual donations to affor dable housing, and annexation/ UGB
agr eements.
o   Several st rategies were selected which, when added to t he majority st rategies above, indicate
    a belief t hat building codes and zoning can keenly impact workforce housing affordabilit y.
    These st rategies – incr eased zoning f or m ult i-f amily development , densit y bonuses, minim um
    lot and building size, clust er design and const r uct ion of sm aller hom es – point t o increasing
    t he amount of housing t hat can be accommodated on a piece of land. Comments referred to
    innovat ive house and neighborhood designs, easing incorporat ion of higher densit ies by
    mix ing smaller houses in wit h t he “McMansions,” and scaling fees and permit costs. These
    st rategies could be promoted t hrough development of model codes for small cit ies. Another
    select ion related t o t his group of code and zoning st rategies, priorit y r eview of af f or dable
    housing pr oj ect s, would provide an addit ional incent ive for builders.
o   Selected st rategies which look at the bigger pict ure planning process include j oint m unicipal
    planning, annexat ion/ UGB agr eement s, and pr ef er ent ial expansion of cit y ur ban gr owt h
    boundar ies f or t he cr eat ion of wor kf or ce housing. Groups commented on working across
    jurisdict ions t o meet needs regionally. Select ive annex at ion or UGB inclusion based on
    voluntary development of workforce housing brought part icipants back t o a discussion of
    inclusionary zoning. Participants also mentioned efficient use of available land, and prox imity
    t o public t ransportat ion, retail and recreat ional opportunit ies.
o   A variet y of st rategies target t he use of credit s, waivers and ex empt ions of tax es and fees to
    encourage const ruct ion or rehabilit ation of workforce housing. These revolved primarily
    around using local property t ax or development fees (development fee waiver s or abat ement s
    f or af f or dable housing, pr oper t y t ax abat ement or exempt ion for r ehabilit at ed buildings used
    f or wor kf or ce housing, and pr oper t y t ax abat ement or exem pt ion f or const r uct ion of new
    wor kf or ce housing). There were also strategies which could take advantage of state or federal
    tax incent ives (r esident ial t ax cr edit for r ehabilit at ing af f or dable housing, and m axim um
    char it able t ax cr edit s f or individual donat ions t o af f or dable housing).




Southern Oregon Workforce Housing Sum m it Report           SUMMARY WORKGROUP RESULTS               page 8
TRANSCRIPTION OF WORKGROUP BOARDS
LEAD SECTORS: d – Developers                      e – Employers                f – Financial Institutions
              g – Local Government                l – Legislature              n – Non-profits
              r – Realtors                        s – State Government


Workgroup Transcription: HOW CAN WE IMPROVE ACCESS & AFFORDABILITY?
1) Com m unit y Land        lead sect or: d, g, f, n, e      selected by: 3 groups             term: short and long
Trust                       o land trust and recordable agreement hand in hand to ensure affordabilit y
                            o acq / rehab t o upgrade neighborhoods
                            o regionalize the land trust , jx -jo
                            o make trust s slanted away from cit y or count y board t o private board (use nat ional
                               trust models, non-government board)
                            o educate com m unit y on the value of perpet uity
                            o regional approach t o CLT
                            o emphasis on mix ed use and mix ed income level housing
                            o more applicable to large com m unit ies - cooperat ion of stakeholders can be difficult
                               to obtain
                            o work through CLT wit h business to develop housing for employees
                            o ownership
                            o increase opport unit y t o buy a house
                            o lowers initial cost of unit by removing land cost from the equat ion
                            o management of com m unit y funds
                            o sufficient money - need 'angel' funder
                            o needs to be applied toward m ult iple unit development / single log development
                               would provide reason for nimby
                            o allow cit izens (police, fire, teachers) t o stay in com munit y
2) Recordable               lead sect or: none noted         selected by: 2 groups             term: short
Regulat ory                 o ensures terms of affordabilit y
Agreement                   o couple with equit y assurance
                            o pride of ownership keeps value
                            o owner doesn't take advantage of housing inflat ion equit y
                            o selling point to get additional private sect or involvement
                            o equit able way to assure continued affordability
                            o recycles house back t o another workforce home owner
3) Improving the            lead sect or: g, s, n, f, e      selected by: all 4 groups         term: short
visibilit y of ex ist ing   o form public-private coalit ion - use resources and clout of group t o partner with
programs                       media, flyers, banners, brochures, et c
                            o clearinghouse for workforce housing related informat ion
                            o incentives from public sect or for developers
                            o addit ional housing events
                            o promote programs through very public means - don't keep secrets
                            o sum mit for developers, realtors, financers
                            o is there a program t o which developers can go - learn what programs they might do?
                               (ACCESS)
                            o publicit y essent ial to achieve public input , approval and understanding
                            o have a booklet which lays out all programs available and update annually - include
                               names, phone numbers, emails
                            o count y-wide PR campaign
                            o provide tax credit s to builders/ developers of work force housing
                            o market the money aspect or incentives to developers
                            o incentivize developers t o establish awareness campaign of program availabilit y and
                               establish accountabilit y t o a part y for follow t hrough
                            o com mon agency/ com mitt ee chronicles and publishes for region in form of test imony,
                               case st udy
                            o educat ion for builders, realtors, developers, bankers t o develop com mon shared
                               marketing and finance strategies
                            o act ively pursue/ recruit developers, decision makers with already proven successful
                               st rategies
                            o cit y hall should be the place where people get informat ion on this
                            o support agencies that are already successful - spread their techniques t o other


Southern Oregon Workforce Housing Sum m it Report                  WORKGROUP TRANSCRIPTIONS                 page 9
                       com m unit ies, public, private sect ors
                    o agencies market each others' programs - broad-based sharing of info
                    o cit y, count y info on web sit es, include info on infill, et c.
                    o regular meet ings of designated folks from each cit y or jurisdict ion
                    o informat ion clearinghouse (Pueblo-st yle) where only one storyline is circulated
                    o work force knows what alternat ives are available
                    o com m unit y educat ion by monthly newspaper articles
                    o allows builder/ developer t o part icipate if informed of programs
                    o could increase partnerships
                    o change is possible - 'affordable' can be someplace I'd like to live
                    o ask builder to participat e - care about com m unit y
                    o help builders to preserve the com m unit y and qualit y of construct ion
                    o coordinate programs through central agency (SOHRC)
5) Minimal House    lead sect or: g, r, d           selected by: 1 group               term: long
Size                o CCRs, code enforcement , com m unit y buy-in
                    o design and promot e more of an efficient cottage st yle living, creating a more imitate
                       village town effect
                    o cit y form new zones, small lots and minimum square foot age
                    o change how m edia depict s ideal american home
                    o smaller families = smaller houses
                    o people who don't have shelter will be happy wit h anything
                    o current house size result of m arketing - minimal size would need same before it
                       becomes norm
                    o spread equally through all neighborhoods (Kurt Creager ex ample)
                    o balance uniformit y with unique architect ure
                    o validify need and benefit s must be well ex plained to cit izens
                    o change codes to allow clustering of cott age size dwellings
                    o densit y bonuses and init ial SDC relief
                    o proport ion SDCs by house size and/ or dwelling unit s - SDCs maintain ut ilit ies
6) Reduct ion in    lead sect or: d, f, g           selected by: 2 groups              term: short/ long
Complex it y        o incremental and flex housing included
                    o relief in approval process and cost s
                    o maybe dependent on changes in universal building codes?
                    o use modular ex amples of com m unit ies in Denmark
                    o housing can look like low-roofed box es
                    o subdivision has t o be designed properly so people will want to live there, and they
                       will last 50 years
                    o have t o regulate through design st andards
                    o create a test com m unit y
                    o incentivize new product s and zoning
10) Non-profit      lead sect or: n                 selected by: 1 group               term: short
rentals             o partnership with employers and/ or local government
                    o provides out side money t o local com m unit ies
                    o provides housing for disabled and seniors that are part of workforce
                    o long term affordabilit y
                    o st reamline regulat ion for nonprofit s
12) Redevelopment   lead sect or: d, g, f           selected by: 2 groups              term: long
of Industrial and   o think out of the box - mix ed uses that are compat ible
Com mercial         o if in out lying areas, make sure transportation is easily available, so not stranded or
properties             forced t o use cars
                    o need more flex ibilit y
                    o problems with cit y hist orical or park usage com mittees - developers may have other
                       ideas than affordable (e.g., old lumber yard in Ashland - bring people together)
                    o regularly evaluate inventory of ind & com mercial land that could be converted and
                       publish (PR)
                    o emphasis on mix ed use and mix ed income level housing
                    o environmental problems
                    o blighted neighborhoods
                    o packing house conversion
                    o jurisdict ions want more industrial for economic development
                    o go higher
                    o building codes on old buildings



Southern Oregon Workforce Housing Sum m it Report          WORKGROUP TRANSCRIPTIONS               page 10
14) Public sector       lead sect or: g, s               selected by: 1 groups              term: long
purchase of rural       o ex pand UGB for just affordable (no purchase, no money)
lands                   o increase available land, should drive price down and/ or be made available for
                           affordable housing
                        o bridge price of raw ag land to develop buildable lots (t rade some land for affordable
                           housing)
                        o no public funding necessary - allow inclusion in UGB in ex change for major raw land
                           donat ions to com m unit y land trust
15) Emphasis on         lead sect or: g, d               selected by: all 4 groups          term: short / long
infill const ruct ion   o build-up
                        o involve neighbors, no NIMBY
                        o acquire vacant through eminent domain
                        o look at com mercial and industrial land for mix ed use
                        o dispel percept ion that a smaller house (or living accom modat ion) or smaller lot is
                           somehow undesirable (PR)
                        o st reamlined process for building approval
                        o mix com mercial/ resident ial to help project s pencil with affordable units mix ed in
                        o reduce SDCs and land div. costs for infill - use of ex ist ing infrastruct ure act ually
                           reduces cost s
                        o emphasis on mix ed use and mix ed income level housing
                        o infill good if propert y owners can be brought into the process enough
                        o ut ilize energy tax credit s to redevelop downtown buildings / indust rial buildings
                        o provide tax incent ives for infill construct ion, vert ical housing tax abatement
                           programs
                        o discount fees for infill where ut ilit ies already ex ist
                        o st rong municipal regulat ory support for infill
                        o home size not under 1000 sq ft , lot size not under 5500 sq ft , different elevat ions
                        o make desirable t o live in mid- to high-rise by supplying amenities
                        o be flex ible with the rules and be open minded
                        o need to plan - need stakeholders involvement
                        o flex ible zoning on in-fill lot s to allow workforce housing at greater densit y
                        o zoning is compat ible
                        o odd size lot s need some flex ibilit y
                        o go on internet to get designs that fit skinny lot s
                        o st reamline permitt ing process - reduce regulat ory risk
16) Donat ion of        lead sect or: g, s               selected by: 1 group               term: short / long
publicly-owned land     o look at sacred cows such as parks and schools that could be donated for affordable
                           housing
                        o tax incentive to donate private lands to cit y t o develop workforce housing
                        o emphasis on mix ed use (com mercial, all t ypes of housing) and mix ed income level
                           housing
                        o encourage donat ion of land against SDCs, tax es, or fees
                        o careful planning required t o overcome bureaucrat ic inert ia and who get s the propert y
                        o incorporate city cervices (parks, rec, et c) with the housing to give people incent ive t o
                           donate (Vancouver YMCA ex ample)
17) Conduct a           lead sect or: g, h, s, e, d, n   selected by: all 4 groups          term: short
local/ regional needs   #1 priorit y
assessment on           o analysis of results of privat e and non-profit developers, partnerships
work force housing      o do something wit h results
demand prior to         o analysis of legislat ive barriers
designing public        o comprehensive inventory of all housing stock and availabilit ies of land, t o parcel level
programs                o one st udy for specifics in each com m unit y
                        o thoroughly understand the scope of a problem before you try t o solve it (in detail)
                        o essential - don't provide answers until the problem is thoroughly scoped out
                        o st ate/ cit ies don't have money to do this - use local resources / private developers to
                           do a report
                        o ut ilize university st udent s in this assessment
                        o st ate grants funding for development of regional housing needs assessment
                        o uniform syst em for each cit y assessment
                        o don't reinvent the wheel - use shared info, local stats
                        o follow t he lead of other cit ies/ st ates who have already addressed workforce housing
                        o assessment should be done with all players in mind



Southern Oregon Workforce Housing Sum m it Report                WORKGROUP TRANSCRIPTIONS                page 11
                        o informat ion gathered should look at short vs. long term, lower t o upper income
                           needs, and fam ily size
                        o you do not know what may work unt il you know what is needed
+) Legalize             lead sect or: l                 added by: 1 group                 term: long
Inclusionary Zoning     o huge developer opposit ion - need a strategy
+) Transfer Tax         lead sect or:                   added by: 1 group                 term:
                        o availabilit y of this tax necessary for government t o encourage participat ion in all
                           st rategies
+) Buffer Zone Land     lead sect or:                   added by: 1 group                 term: short
(non-agricult ural)     o affordable
Development Project     o locked-in price, only increase wit h cost of materials
                        o 1400 unit s
                        o planned unit development outside urban growt h boundary issue
                        o fee reduct ion
+) Minim um Densit y    lead sect or:                   added by: 1 group                 term:
                        o achieve more densit y per acre, development m ust achieve a cert ain percent of zoned
                           land
+) More Ways to         lead sect or:                   added by: 1 group                 term:
Bridge Raw Land-        o use school district and other public entit y ex cess lands t o develop workforce housing
Developed Lot Gap
Additional “Access and Affordability” comments not categoriz ed above:
o further ex pand eligibilit y thresholds – local government housing programs
o more public-private partnerships
o encourage mechanisms that ut ilize revolving funds
o build up, not out
o develop program t o allow employers t o invest (subsidize) em ployee housing as second liens
o employers rent propert y to employee or other housing opport unit y



Workgroup Transcription: WHAT CAN EMPLOYERS DO?
1) Employee surveys     lead sect or: f, e, g            selected by: both groups           term: short
on workforce            o use fannie mae as a resource
housing demand          o include surveys in new employee orientation
                        o use electronic survey t ool (zoomerang)
                        o ident ify need - renters vs homeowners
                        o ident ify need - income levels (individual, household)
                        o work force surveys
                        o ex it surveys
                        o survey public and health workers and their tenure 'potent ial champions'
                        o rent/ housing affordable?
                        o com m ut ing distance?
2) Home buyer and       lead sect or: e, f, i, n         selected by: both groups           term: short
financial literacy      o create a requirement for all housing support programs for employees
educat ion              o ex plore partnership opport unity (fnma, online, banks)
                        o brown bag workshops for first t ime homebuyers on site
                        o better chance of being successful in homeownership
                        o increased awareness of current resources
                        o relocat ion packet s
3) Down payment         lead sect or: e, f               selected by: 1 group               term: short
loans and/ or closing   o progressive forgiveness
cost assistance         o progressive payback
programs                o revolving loan fund
                        o performance related qualificat ion
4) Mortgage             lead sect or: e, f, d            selected by: 1 group               term: short
guarantees              o cont act financial instit ut ions - impact on business financials?
5) Mortgage buy-        lead sect or: e, g, f, s         selected by: 1 group               term: short
down programs           o conduct cost analysis (upfront vs t urnover)
                        o include promo materials - retet ion and recruitment t ool (com pet ive benefit s)
                        o partners share/ absorb cost - m arketing vs savings
6) Purchase of          lead sect or: e, g, f            selected by: 1 group               term: short



Southern Oregon Workforce Housing Sum m it Report                WORKGROUP TRANSCRIPTIONS                page 12
mortgage backed          o same com ments as #5
securit ies
10) Employer-            lead sect or:                 selected by: 1 group              term: long
developed                o no com ments
homeownership
unit s
15) Individual           lead sect or: e, f, n            selected by: both groups          term: short
Development              o savings opportunit y - educate and incentivize employees
Account s (mat ched      o evaluat e cost to employer (upfront vs t urnover)
savings accounts)        o use in promot ional materials (recruitement and retention t ool)
                         o evaluat e: how many employees per year, cost per year, program requirements
                         o focused investment
                         o for first t ime homebuyer
                         o t ie t o financial literacy courses
                         o 50-50 invest ment
16) Group mortgage       lead sect or: e, f, n, FNMA      selected by: both groups          term: short
orientat ion plans       o use as benefit plan enhancem ent
                         o issue RFP as tool t o partner with others
                         o seek opport unit ies for partnership (employers, non profit s, lenders, others)
                         o preferred cust omer relat ionship with lender
                         o more efficiencies realized wit h a larger com pany
                         o higher loan volume t o lender
18) Employer             lead sect or: e, o, g, n         selected by: both groups          term: short
partnerships with        o dist ribute and plan to include as educat ional resource
implement ing            o promote/ share down payment assistance resource
agencies/ nonprofit s    o ex plore loan program resource (employees, employers)
                         o ex plore construct ion financing
                         o promote low cost of funds
                         o include partnerships with other employers
                         o ex ist ing programs: ACCESS, Second Chance (for rental)
                         o shared resources, pooling
                         o professional associat ion funds programs
                         o work force housing advocacy and leadership coalit ions
                         o public/ private housing trust fund
                         o media buy-in
+) Employer              lead sect or: e, g, n, s         added by: 1 group                 term: short
awareness /              o conduct ongoing awareness campaign
com m unit y act ivism   o involve or present t o regional government s and professional organizat ions
                         o ex plain economic benefit to areas
                         o use press events t o distribut info
                         o ex plore potential for propert y tax abatement (part ial – full)
                         o create a think-tank or incubator to keep moment um and focus moving forward
                         o rvcog will develop and share goals from this sum mit and share with chambers of
                            com merce, economic development
                         o survey sum mit participants – what have you done since 2-21-06
+) Clearinghouse         lead sect or: e, g, n            added by: 1 group                 term: long
                         o high equit y owner clearing house with employers
                         o forms
+) Advocate for          lead sect or: e, n               added by: 1 group                 term: short
employer incent ives     o cit y, count y, state, federal
                         o employer incent ives needed
                         o advocat e for creation
                         o get involvement from local government
                         o will need to rais awareness t o employer



Workgroup Transcription: WHAT CAN BE DONE ON THE MONEY SIDE?
1) New Markets Tax       lead sect or: n, g           selected by: 1 group                 term: short
Credits                  o more awareness of access t o this program
                         o educate jurisdict ions about how t o access credit s, how t o do mix ed housing, and
                            com mercial developments



Southern Oregon Workforce Housing Sum m it Report                WORKGROUP TRANSCRIPTIONS               page 13
                        o work-live spaces
                        o index bet ween housing cost and median wage for area
                        o incentives for builders and developers t o consider workforce housing projects as
                           opposed to custom homes
                        o towards affordable condo units
                        o mix ed use com m unit ies are viable means to promote affordable housing for seniors
                           and disabled residents with needed resources within the com m unit y
                        o to assist development of new self-sust aining villages in urban areas with good
                           design, mix ed-income housing, local-serving retail, job-rich com mercial
                        o include neighborhood com mercial t o new housing
                        o encourage neighborhood focus - apart ment , laundry, bookstore in distressed area
2) Low Income           lead sect or: d, s, n           selected by: all 3 groups          term: long
Housing Tax Credit s    o mix ed use and income
                        o PR campaign to get developers t o buy in
                        o permanent affordabilit y for public subsidy
                        o st reamline paperwork process
                        o educat ion and outreach to private developers
                        o need to have educat ional training for developers, owner and invest ors on how t o use
                           the tax credit
                        o increase funding to many t imes the current amount
                        o lobby feds for more money each year
                        o simplify the program and the compet ition
                        o longer terms of loans
                        o crucial t o provide housing incent ives t o developers to build housing affordable t o
                           seniors and the disabled residents
4) Demolit ion Tax es   lead sect or: g, r              selected by: 1 group               term: long
                        o rates vary with desirabilit y of what ' s being torn down, e.g., high rate t o discourage
                           affordable housing removal
                        o can also require replacement of affordable housing (equal or greater square footage
                           of affordable housing elsewhere in town)
                        o money for st ate / local housing trust fund
                        o m ust be high enough t o discourage tear down
                        o tax t o help offset loss of more affordable unit
                        o deter destruct ion of hist oric homes in desire to build new homes (destroys pot ential
                           affordable housing)
                        o educate on value of older houses, how t o refurbish
                        o reuse/ recycle materials, tax would be waived
                        o encourage remodel/ rehab
                        o make affordable but proport ionate to value of land and ex ist ing struct ure
5) Linkage Fees         lead sect or: g                 selected by: 1 group               term: long
                        o incentive t o include housing in their invest ment
                        o ex empt living wage employers
                        o define affordable housing, home ownership vs. rental with a percent toward each
                           based on development project
                        o make affordable so they will happen
6) Increased            lead sect or: s, g, e, n, l     selected by: all 3 groups          term: short
Recordat ion Fee /      o PR campaign
Real Estate Transfer    o reasonable flat fee, e.g. $20
Fee                     o legislative?
                        o ex clude first $150k of cost of house, could be graduated (no consensus, no full
                           agreement )
                        o use trust fund wit h accountabilit y and with other programs (silent 2nd, et c.)
                        o if variable percent sale of house
                        o funds t o go to the housing trust fund
                        o ex empt ion index ed to median house price
                        o change the law, set a value
                        o best ways t o generate money to fund affordable housing programs
                        o most successful way nationwide to fund workforce housing
                        o m ust be used properly - not put into general fund
                        o a housing trust fund that can assist wit h down payment for affordable housing
                        o all collect ed fees from all sources go to same pot
                        o put fee into housing trust fund



Southern Oregon Workforce Housing Sum m it Report               WORKGROUP TRANSCRIPTIONS                page 14
                       o qualificat ion should be median income or higher
                       o even 100-120% median incom e need help staying/ getting in homes
                       o index t o incom e and area, renewable annually
                       o index ing good st rategy for homeownership programs
                       o affordable rental programs should target income levels not served by market , 0 - 50%
                         MFI
                      o brings families falling into cracks ont o playing field, i.e. family who don't qualify for
                         housing assistance
                      o make more homes affordable t o wage earners
                      o restrict t o homeownership
7) Individual         lead sect or: f, e             selected by: 1 group                term: long
Development           o should be a large amount of money that could be used as a silent second ($15-20k ) -
Account s                this would help as the cost of housing continues t o increase
                      o mat ching funds
                      o could be used by employers as an employer assisted housing program, have a
                         mat ching amount
                      o could ex pand to be used for rentals as well as home ownership
                      o employer capital advanced to employer is income t ax free paid into low income t ax
                         account for affordable housing
8) Coordinated CRA    lead sect or: n, f             selected by: 1 group                term: short
Compliance            o coordinate in region to bring money from other areas
                      o dist ribute CRA funds throughout ent ire st ate - not just based on populat ion (e.g.,
                         Port land housing not as big a problem, most CRA funds are focused there)
                      o max imize use of these funds wit h set percent t o housing
                      o coordinate CRA money t o correspond wit h local government priorit ies for preserving
                         building affordable housing
                      o enact rule that leverages partnerships
                      o coordinate com m unit y needs surveys
                      o give lenders incent ive t o pool funds for CRA credit and use them for as many unit s as
                         possible
                      o encourage appropriate bank personnel to part icipate in first t ime homebuyer
                         program for low income and affordable housing
9) Housing trust fund lead sect or: f, d, n, g, s, l selected by: all 3 groups           term: long
                      o public funds and private funds
                      o endowment from large employers and positive PR recognit ion
                      o locally cont rolled and administered
                      o PR campaign
                      o don't forget gap bet ween median and affordable housing
                      o public awareness
                      o using program more
                      o set up trust fund in rural areas for more income sources
                      o would allow public sect or t o contribute to public private housing or mix ed use
                         development
                      o keep rules as limit ed as possible, just dedicate t o affordable housing
                      o ident ify dedicated revenue stream t o cont inuously fund st ate or local housing trust
                         fund
                      o generate incom e from imposed new fees and t ax es (# 4, 5, 6)
                      o use for payment of closing costs or down payment assistance for hard to qualify
                         applicants
                      o tax incentives for individual renting single family dwellings (i.e., rehab, affordable
                         rent s, move rentals t o ownership)
                      o lottery funds t o go for housing trust fund
                      o create a 501(c)3 for the housing trust fund
                      o regional control by count y
12) “Silent” Second   lead sect or: f, e, d, g, n    selected by: 2 groups               term: short / long
Mortgage              o public awareness
                      o using program more
                      o 0% interest loan
                      o SDCs deferred if 100% below median income unt il home sells
                      o freezing of propert y tax es for period of t ime for low and moderate income buyers
                      o cit y requires by zone percentage of t otal development inclusionary housing wit h
                         silent second as t ool



Southern Oregon Workforce Housing Sum m it Report              WORKGROUP TRANSCRIPTIONS               page 15
                      o economic development
                      o revolving fund
                      o increase retention and employee morale (dem onstrate)
                      o m ult iple sources of money (cit y, employer, count y)
14) Shared            lead sect or: f, d, CPAs         selected by: 1 group              term: short
Ownership             o partnership with housing authorit y
Mortgages             o st andardize format for property owners to use as framework
                      o create a sweat equit y fact or
                      o create programs through cit y government s to offer t o residents
                      o educate propert y owners of incent ive
                      o target to employers
                      o use land trust model instead to ensure permanent affordabilit y
                      o REIT for equit y sharing on ex ist ing homes
+) Com m unit y       lead sect or: a                  added by: 1 group                 term: short
Invest ment Fund      o people invest in local com m unit y like local bonds
                      o Jackson Count y
                      o could fund second mortgages
+) Lease t o own      lead sect or: f, n, r.e. trust   added by: 1 group                 term: short
                      o buy-in of landlord or employers
                      o port ion of rent for down paym ent
                      o incentive for landlord, especially on vacant land (t ax credit )
+) Target CDBG        lead sect or: g                  added by: 1 group                 term: long
funds for housing     o target to rental housing
                      o put all CDBG money into affordable housing programs, none into other programs
                      o prevent CDBG from subsidizing normal cit y development business
                      o cost of housing is greatest obstacle t o new employees
                      o keep CDBG monies for infrastruct ure
                      o revise HUD boundaries allocat ing 75% of available funds t o housing project s, whether
                         sect ion 8, single or mult i family housing
                      o tax incentives for individual landlords renting out single fam ily homes, i.e., rehab,
                         affordable rents, moving renters to ownership
+) Rent subsidies     lead sect or: n, e               added by: 1 group                 term: long
                      o create incentives for landlords with 1 - 5 propert ies
                      o self -sufficiency model of HUD for renters and landlord
                      o means t o keep single family residences as rentals
                      o indirect subsidies to owners, loans only funds are recycled
                      o should be tied to landlords, developers, owners trying to preserve, provide affordable
                         housing
                      o subsidizes rents t o landlords willing to rent their propert y at a rate better than their
                         mortgage payment
+) Employer t ax      lead sect or:                    added by: 1 group                 term: long
credit s to assist    o use vest ing schedule
employee home         o great idea
ownership             o incentives for businesses to give a benefit y setting up a fund for home loans for
                         their employees
                      o incentives for employers t o invest in employees for long term employment and better
                         skilled employees



Workgroup Transcription: WHAT CAN THE PUBLIC SECTOR DO?
1) Increased zoning   lead sect or: g, s             selected by: 2 groups             term: short
for mult i-family     o promote model code for small cit ies
development           o work force affordabilit y sales / rent cap in perpet uit y
2) Densit y bonuses   lead sect or: g                selected by: 1 group              term: short
                      o no com ments
3) Minim um           lead sect or: g, s             selected by: 2 groups             term: short
densities             o promote model code for small cit ies
4) Accessory          lead sect or: g, d             selected by: 3 groups             term: short
Dwelling Unit s       o propert y owner m ust reside in primary or ADU
(ADUs)                o can also be inside primary dwelling
                      o size of unit


Southern Oregon Workforce Housing Sum m it Report                WORKGROUP TRANSCRIPTIONS             page 16
                          o occupancy
5) Minim um lot and       lead sect or: g                   selected by: 1 group             term: short
building size             o no com ments
6) Mix ed-use             lead sect or: g, d                selected by: all 4 groups        term: short
development               o change law t o allow mix ed use (mix ed incom e) by housing authorit ies
                          o high rise housing with MURA, Access, Inc., Housing Authorit y of JC
                          o make people aware of crit ical housing zone designation when available
                          o mix ed use t o include vert ical element and retail and mix ed income and amenit ies
                          o mix ed income housing
                          o greater flex ibilit y for different densities and uses throughout a neighborhood (not
                             just ground floor retail/ upper floor residential in downt own)
                          o not just employment centers or immediate prox imit y, but smart er mix ed use
                             development regionally (e.g., Twin Creeks in Central Point )
                          o wit hin PUD
                          o not just employment centers - could be near retail or other com mercial uses
                          o require vs. encourage (allow process for developer t o prove a mix ed use development
                             cannot be done)
                          o definit ion could include mix ed housing t ypes, like mult i-family, SFD and duplex es in
                             same development
                          o could include environmental or resource use such as wet land preservat ion, st orm
                             detention
7) Clust er design        lead sect or: g                   selected by: 2 groups            term: short
                          o this would be a great idea, we treat subdivisions as mast er site plans now
9) Joint municipal        lead sect or: g, r, d, n, e       selected by: 2 groups            term: short
planning                  o com mon terms - working t oward similar language in codes
                          o create regional ent it y, advocacy group
                          o another layer of regulat ory control?
                          o to build coalit ion t o change laws for inclusionary zoning, ident ify regional list of
                             possible mix ed use development project s and rehab of com mercial properties
                          o carry further the collaborat ion in regional problem solving t o address affordable
                             housing regionally
10) Priorit y review of   lead sect or: g                   selected by: 1 group             term: long
affordable housing        o no com ments
project s
11) Inclusionary          lead sect or: g, d, n, r, l    selected by: all 4 groups          term: long
zoning                    o ex pand focus t o include workforce housing
                          o housing coalit ion
                          o make housing affordabilit y m ore of a fact or in UGB ex pansion - including allow
                             inclusionary zoning ex pansions
                          o enable desired housing as a permitted use with high qualit y st andards, rather than
                             require condit ional use process (st reamline)
                          o enable variet y of housing t ypes so new/ innovat ive forms are not precluded (co-
                             housing, et c)
                          o requires changing the law
                          o encourage local cit ies and counties to pass resolut ion t o Oregon legislat ure to
                             overt urn ban
                          o under current state ban, developers who do 'voluntary' inclusionary zoning could
                             receive benefits such as densit y bonus or reduced st andards t o encourage diversit y
                             wit hin each development
12) Redevelopment         lead sect or: s, g, l          selected by: 3 groups              term:
of industrial and         o look at resident ial uses in industrial zones
com mercial               o Ashland, for ex ample, has not enough industrial or com mercial now, so changing
properties                   zoning may work everywhere
                          o encourage use of underut ilized public or private properties
14) Construct ion of      lead sect or: d, g             selected by: 2 groups              term: short / long
smaller homes             o scaled fees / permit s based on market cost
                          o ease incorporation of higher densities by requiring smaller houses mix ed in with the
                             m cmansion
                          o zero lot line houses
                          o innovative designs
                          o townhouses wit h com mon outdoor areas
17) Development fee       lead sect or: g, l             selected by: 1 group               term: short


Southern Oregon Workforce Housing Sum m it Report                 WORKGROUP TRANSCRIPTIONS               page 17
waivers or                o deferred paym ents, but not waivers
abatements for            o should be open t o all developers
affordable housing
18) Propert y tax         lead sect or: n               selected by: 2 groups               term: short / long
abatement or              o no com ments
ex empt ion for
rehabilitated
buildings used for
work force housing
19) Propert y-t ax        lead sect or:                 selected by: 1 group                term: long
abatement or              o no com ments
ex empt ion for
construct ion of new
work force housing
22) Residential tax       lead sect or: g, l            selected by: 1 group                term: long
credit for                o no com ments
rehabilitating
affordable housing
24) Preferential          lead sect or: g, l, s           selected by: 2 groups            term: short / long
ex pansion of cit y       o need state buy-in, or any ex pansion less than 50 acres follows a locally-determined
urban growt h                process
boundaries for the        o preferential annex at ion but not ex pansion of UGB unless it already falls into fut ure
creat ion of workforce       UGB lines in planning (e.g., Northeast Plan)
housing                   o set strong inclusionary zoning requirements such as percent of affordable housing
                             for different percent of median income
                          o related direct ly t o addressing need to meet projected populat ion growth with
                             efficient use of available land
25) Max im um             lead sect or:                   selected by: 1 group             term: long
charitable tax credit s   o no com ments
for individual
donat ions to
affordable housing
26) Housing               lead sect or: g, d, l, e, f, s selected by: 3 groups                term: long
construct ion and         o adopt ion of new building technology
rehabilitation code       o re-visit manufact ured housing
amendments                o ident ify constraints to adopt ing new construct ion technology into construct ion codes
                          o allow ex cess fees from building permit s t o be used for other government funct ions
                          o ex plore options of modular and manufact ured
                          o changes in building requirements for modular and other
                          o make sure building and development codes don't discourage or prohibit alternat ive
                             construct ion t ypes such as modular construction or use of non-traditional materials
                             that may be m ore affordable
27) Annex at ion /        lead sect or:                  selected by: 2 groups                term: short / long
UGB Agreements            o inclusionary zoning through annex at ion/ UGB amendment s
                          o for propert ies wit h prox imit y to public transportat ion and retail services, or
                             development s that include essent ial retail services and recreat ional open space
Additional “Public Sector” comments not categoriz ed above:
o find way t o require affordable housing to remain 'affordable' for a certain number of years
o require income limit s from a job in the area - be part of the work force
o retention of the unit s in the workforce housing pool
o rules for local government outside of regulatory or taking role
o propert y owner / lead by ex ample / innovat ion / role model
o building methods/ technology - occupy mix ed use buildings, et c.
o address/ remove regulatory cost barriers to affordable housing
o public partnerships wit h developers / non profit s – encourage affordable project s
o housing trust fund – use of publicly controlled housing trust fund for leverage
o real estate transfer t ax – Washington currently charges 1% ex cise t o seller of home, has not increased for
  many years
o st ate combining housing and economic development
o rental rehab




Southern Oregon Workforce Housing Sum m it Report                  WORKGROUP TRANSCRIPTIONS                page 18
PRELIMINARY STRATEGY DESCRIPTIONS
Website r efer ences below each descr iption pr ovide links for f ur ther infor mation and r esear ch.


Strategies: HOW CAN WE IMPROVE ACCESS AND AFFORDABILITY?
Strat egies for housing providers, land holders, and builders (public or private associat ions, t rusts, co-
ops, non-profit s, et c.) t o increase housing affordability and accessibilit y.

1) Community Land Trust: Funded by a number of different strat egies, comm unit y land trust s
assume and maint ain ownership of land used for affordable housing. The parcels are conveyed
t hrough long-t erm ground leases, while the st ruct ures are usually owned out right by t he owner (an
individual, cooperat ive housing corporation, or ot her nonprofit , government al, or even for-profit
ent it y).
    o www.iceclt .org/ clt (com prehensive overview of com m unit y land t rust )
    o www.plannersweb.com (a good searchable sit e for informat ion on land t rust s)
    o www.policylink.org/ EDTK?CLT?Why.ht ml (discusses why CLT is an effect ive st rategy)
    o www.ashland.or.us/ Page.asp?NavID=526 (overview of affordable housing and Ashland CLT)

2) Recordable Regulatory Agreement: The "recorded regulat ory agreement" is a recorded agreement
t hat provides t hat t he init ial owner and all subsequent owners, in ret urn for a highly subsidized init ial
purchase price, are required t o resell t he propert y only to a qualified low income buyer at an artificially
low price (usually t he original purchase price plus some small yearly percent age increase and any
capital improvements). Often such regulatory agreements will also grant the subsidizing governmental
ent it y an opt ion t o purchase t he propert y at t he preset resale price if t he owner claims t hat t hey
cannot find a qualified buyer.
   o www.floridacdc.org/ forms/ subsidy-recap.ht m (general pros and cons)

3) Improving the visiblity of existing programs: There are a variet y of workforce housing programs
t hat few developers know about . Publicizing t hese programs and making t hem available t o t he ent ire
development com munit y can make t hese programs more effect ive.
   o www.efn.org/ ~fairhous/ eng/ afford/ programs.ht ml (index of available federal opport unit ies)
   o www.ohcs.oregon.gov/ (Oregon Depart ment of Housing and Com m unit y Services)

4) Equity Assurance Program: To discourage resist ance t o higher densit y project s, especially rent al
unit s, an equit y assurance program enrolls propert y owners near higher-densit y resident ial project s
and pays t he difference between t he appraised value and t he sale value if it is negat ive.
   o www.fanniemaefoundat ion.org/ programs/ hff/ v5i1-t opt en.sht ml (descript ion from Fannie Mae)
   o www.fergusoncit y.com/ resident ial_resource/ equit y_assurance.asp (describes how EAP is used)

5) Minimal House Siz e: A reduct ion of m at erial and labor in const ruct ion, less cost ly t o maint ain and
furnish, more efficient use of land.
   o www.not sobighouse.com (com mercial sit e on making smaller homes att ract ive and funct ional)
   o www.nahn.com/ (nonprofit t hat plans for energy efficient houses built wit h communit y labor)

6) Reduction in Complexity: Use of st andard and modular dimensions, prefabricat ion of housing
component s, use of st andard plans.
   o www.angledend.com/ mirrors/ mhi2/ DR_dp_noji_gardens/ index .ht ml (Noji gardens in Seatt le)
   o www.cmhc-schl.gc.ca/ en/ imquaf/ afho/ afadv/ cot e/ usprho/ index .cfm (3 project case st udies)
   o www.smartcommunities.neat.org/ buildings/ affhousing.shtml (affordable green housing projects)
   o www.palmharborhomes.com/ index 2.asp (local fabricat or of manufact ured/ modular homes)

7) Flexible Housing (FlexHousing): Increases t he adapt abilit y of new homes by designing flex ible,
adapt able, and/ or unpart it ioned spaces to accomm odat e changing space needs, act ivities, and users,
and/ or include unfinished spaces for fut ure ex pansion (unfinished basement or att ic). The house is


Southern Oregon Workforce Housing Sum m it Report                PRELIMINARY STRATEGIES              page 19
equipped for such changes with pre-wiring and plumbing ready for adaptation. Flex ible housing is also
built t o be accessible wit h feat ures t o accom modat e young children, t he disabled and t he elderly.
Flex ible housing is usually designed t o permit surplus space t o be rent ed out t o eit her a non-relat ed
t enant or a family member and t hereby reduce t he cost s of ownership. As t he family size increases or
it s needs change, t he dwelling can be reconfigured.
    o www.cmhc-schl.gc.ca/ en/ imquaf/ afho/ afadv/ cohode/ deflho/ index.cfm (summary and examples)
    o www.abilit ies.ca/ include/ art icle.php?pid=&cid=&subid=&aid=1632 (overview, unique feat ures)

8) Incremental Houses: Building a home in st ages can make it more affordable in t he long run. An
increment al house begins wit h one or t wo finished floors on a small lot . The unfinished floors cont ain
or are ready for t he plumbing, wiring, st ruct ural configurat ion and duct work necessary for being
finished in the fut ure. As t he financial sit uat ion of t he homebuyers improves and t he space
requirement s of t he household increase, the unfinished floors are subdivided and com pleted t o meet
t he household’s needs.
   o www.cmhc-schl.gc.ca/ en/ imquaf/ afho/ afadv/ cohode/ buhoic/ index .cfm (summary, case studies)

9) Equity Cooperatives: In equit y co-operat ives, t he resident s cont ribut e equity in ex change for
shares t hat ent it le t hem t o occupy one of the units and use the common amenities. When the resident s
leave t he co-op, t hey are ent it led t o at least t heir init ial equit y and perhaps some part of t he
appreciated value of t heir shares, depending upon what approach t he co-op t akes.
   o www.cmhc-schl.gc.ca/ en/ imquaf/ afho/ afadv/ fit e/ eqco/ index .cfm (sum mary and case st udies)
   o www.coophousing.org/ about _nahc.sht ml (describes co-ops and links on how t o do your own)

10) Non-profit rentals: Non profit develops t he homes and ret ains ownership and rent s t he hom es.
www.landwatch.org/ pages/ issuesact ions/ fort ord/ clarkreport / chapter4.ht ml (m odels and case
ex amples, including how San Jose collaborated wit h for profit and non profit s t o build workforce
housing)

11) Shared housing: Facilit at e shared housing (t he occupancy of a dwelling unit by t wo or more
unrelat ed individuals sharing kit chen, bath, living, and dining space.
  o www.nat ionalsharedhousing.org/ index .ht ml (Nat ional Shared Housing Resource Cent er)
  o www.emoregon.org/ shared.ht m (shared housing from ecumenical minist ries of Oregon)

12) Redevelopment of Industrial and Commercial properties: Former industrial or commercial land
present opport unit ies t o redevelop sit es. Redeveloping sit es enables t he provision of affordable
housing because of t he increased density and t he use of ex ist ing infrastruct ure. Redevelopment can
range from one or t wo unit s on t he sit e of a former dwelling t o many hundreds of unit s on former
indust rial lands.
   o www.cmhc-schl.gc.ca/ en/ imquaf/ afho/ afadv/ rere/ resi/ index .cfm (sum mary and case st udies)
   o www.manatt .com/ mewsevent s.aspx ?id=1077&folder=23 (ex am ple of redevelopment in LA)

13) Mutual Housing Associations: Mut ual housing is owned by a Mut ual Housing Associat ion and
resident s are members of t he associat ion t hat owns the housing. The mut ual housing association as a
whole owns all t he housing development s. Alt hough resident s cannot buy or sell t heir unit s direct ly,
t hey do have a significant voice in decision-making, and have a lifet ime right t o live in t he housing.
Mont hly charges for t he unit s are based on a percent age of t he resident ’s income, and reflect t he
act ual operat ing cost s of t he housing. There is no equit y accumulat ion for members, or credit for
mort gage principal paid.
   o www.coophousing.org/ about _nahc.sht ml (background on cooperat ive housing mechanism s
      including mut ual housing associat ions from t he Nat ional Associat ion of Housing Cooperat ives)
   o www.mut ualhousing.org/ mut ualconcept / (overview of how mut ual housing associat ions work)

14) Public sector purchase of rural lands: The public sect or could purchase land out side of Urban
Growt h Boundaries, and t hen make specific ex pansions of t he UGB to t ake in t hose lands for use as
workforce housing or for t rade for ot her lands wit hin t he cit y.




Southern Oregon Workforce Housing Sum m it Report              PRELIMINARY STRATEGIES             page 20
15) Emphasis on infill construction: Development that makes use of vacant or underutilized land and
buildings in downt own or suburban areas.
  o www.ci.vacaville.ca.us/ depart ment s/ com munit y_development / _document s/ plans_report s/ Housin
     gReport 2005Ex ecSum.pdf (report t hat promot es infill const ruct ion, and gives ex ample of cit y's
     att empt t o evaluat e what act ions would be effect ive to support affordable housing)

16) Donation of publicly-owned land: Donation, by jurisdictions, of surplus land or propert y received
t hrough t ax liens/ foreclosure t o create or rehabilit at e permanent ly affordable housing.
    o www.nhhfa.org/ programdocs/ HousingSolut ions/ HousingSolut ions_4.pdf (overview on how
      propert y can be re-used, including donating lands)

17) Conduct a local/ regional needs assessment on workforce housing demand prior to designing
public programs: Assessing demand for workforce housing in t argeted urban areas will provide a
st at ist ical basis for public policy, while also demonst rat ing demand t o development and finance
com munit ies.


Strategies: WHAT CAN EMPLOYERS DO?
Employer-driven st rategies t o assist employees wit h housing, eit her by affect ing wages and benefit s,
assist ing wit h t he lending process, or by t he direct provision of land and/ or housing.

1) Employee surveys on workforce housing demand: Useful in providing informat ion t o employers
about which programs of employer-assist ed housing might be most effect ive for t heir employees.
   o www.nifa.org/ downloads/ eahsurvey.pdf (sam ple survey)
   o www.pdc.us/ pdf/ housing_serv/ pubs/ workforce_housing_report .pdf (sample from Port land)

2) Home buyer and financial literacy education: Programs offered t hrough employers t o assist
employees in making good decisions about home purchase and financing. In t his region, the Sout hern
Oregon Housing Resource Cent er is particularly act ive in t hese t ypes of act ivit ies.
   o news.minnesot a.publicradio.org/ feat ures/ 2005/ 10/ 27_Williamsb_disparities/ employerst oolkit .
     pdf (report t o inform employers about housing issues; includes financial literacy st rategy)

3) Down payment loans and/ or closing cost assistance programs: Down payment loan programs
can be st ruct ured in several ways including, reduced interest rate loans, deferred loans, and forgivable
loans. These programs are usually predicat ed on providing t he employee wit h an incent ive t o remain
wit h t he employer for an ex t ended period of t ime. Current ly, forgivable loans are t ax able, while
deferred loans can be designed t o have no t ax implicat ions. An employer offering a closing cost
subsidy program can pay closing point s on a mort gage (usually 1-3% of t he mortgage), or cover legal
cost s associat ed wit h t he purchase.
   o www.housingpartnershipinc.org/ eah/ Nort ons%     20EAH%   20News%  20Release.doc (article on Fannie
      Mae-support ed forgivable loan program offered by Nort on Healt hcare t o it s employees)
   o www.efanniemae.com/ sf/ ip/ eah/ eahlender.jsp (Fannie Mae product s t hat work wit h employer
      programs)
   o www.homestreetbank.com/ about/ news/ detail.aspx ?id=7 (newspaper article featuring HomeStreet
      Bank’s employer assist ed housing program )
   o www.freddiemac.com/ news/ archives2002/ fayett eville_031102.ht m (how Freddie Mac and
      part ners in public and privat e sect ors designed employer assist ed housing program )

4) Mortgage guarantees: Employers can guarantee all, or a portion of, a mortgage. By guaranteeing a
mort gage an employer can reduce lender risk. In ret urn t he lender can reduce down payment
requirement s (in some cases t o not hing), offer more flex ible loan underwrit ing criteria, and waive
private mort gage insurance premiums.
   o www.cfsinnovat ion.com/ managed_docum ent s/ affinit ylanding.pdf (ex ample of Seatt le housing
     program t hat addresses lack of educat ion, lack of funds, and affordabilit y gap)




Southern Oregon Workforce Housing Sum m it Report             PRELIMINARY STRATEGIES            page 21
5) Mortgage buy-down programs: The pract ice of subsidizing mort gage interest rat es - t hese
programs pay mult iple point s at t he t ime of closing, usually 6-l6 point s. Financial inst itut ions
somet imes offer a version of t he mortgage buy-down program by agreeing to hold a below market rate
loan in t he lender's own port folio.
   o www.nhhfa.org/ news/ release020523.ht m (New Hampshire Housing Finance Authority program)

6) Purchase of mortgage backed securities: Mort gage revenue bonds are commonly issued by local
and st at e agencies and many private real est ate lenders. Employers can request t hat t hese issuers
issue t ax able bonds paying a below market rate, which t he employer would purchase. The proceeds
from t he bonds would be used t o fund m ort gages or second mort gage down payment loans for t he
firm 's employees, and t he repayment of t he mort gages would repay t he employer's bond.
   o www.ucop.edu/ ucophome/ policies/ acctman/ f-117-65.pdf (UC program for faculty)

7) Group mortgage insurance: Offers t he same benefit t o t he employee as a mort gage guarant ee
program does. To t he employer t he difference between t he t wo programs is t hat a mort gage
guarantee result s in t he firm incurring a cont ingent liabilit y. An insurance program enables t he
employer t o transfer t his liabilit y t o an insurer in ret urn for a premium ..
   o policy.rut gers.edu/ eah/ hoffman_blueprint .ht ml (employer assist ed housing paper)

8) Rehabilitation assistance: Employer-provided funds for upgrading employee-owned and occupied
homes. Can be a loan, grant , or combinat ion loan/ grant .
   o www.fhlbt opeka.com/ housing_checklist .ht m (cat egories of programs t o address housing needs
     t hat includes rehabilit at ion and ot her links)

9) Employer-provided rental housing: Employers can hold mast er leases on apart ment unit s and/ or
own t own homes or condominium s t o provide below-market rent al or t ransit ional housing t o
employees.

10) Employer-developed homeownership units: Purchase and/ or development of housing t o sell t o
employees at below market rates. For long-t erm affordabilit y, deed rest rict ions or some like
mechanism would have t o be in force t o provide for cont inued affordabilit y and availabilit y t o fut ure
employees.

11) Housing site subsidy: Some firms m ay have ex cess land suit able for housing development, while
ot her firms, or a consort ium of firms, m ay be able t o purchase a site or even a building prox imat e t o
corporat e facilities. By selling at a discount , leasing, or donating the parcel to a developer (nonprofit or
for profit ) housing affordabilit y and availabilit y can be increased. Land can eit her be held by t he firm
or firms, leased t o a developer, or held by a nonprofit or land t rust .
   o policy.rut gers.edu/ eah/ hoffman_blueprint .ht ml (employer assist ed housing paper)

12) Construction financing: Major corporat ions can borrow short -term at or near t he prime rate. Real
est at e developers, part icularly nonprofit developers, can borrow only at much higher rat es. Major
employers could borrow or guarantee loans for housing developers and by doing so pass t hrough t he
firm 's borrowing capacit y t o t he developer.
   o policy.rut gers.edu/ eah/ hoffman_blueprint .ht ml (employer assist ed housing paper)

13) Purchase guarantees: Building housing t hat is meant for sale has cert ain risks for t he builder.
Perhaps greatest among t hose risks is t hat t he housing won' t be sold. Employers can help eliminat e
t he risk for a builder t hat unit s won’t be sold by agreeing t o purchase some num ber of unit s on a
cert ain dat e if t hose unit s are not sold by t he builder. What t his means for t he developer is t hat t here
is less risk of having t o carry propert y for a longer t ime t han planned, and of having t o pay longer for
on one or more const ruct ion loans. In ret urn for t he lowered risk, t he builder agrees t o market t he
unit s t o t he firm 's employees at a sales price discount . Purchase guarant ees can be especially useful if
t he t ype of housing being developed is considered “riskier” t han ot hers, such as mult iple family or
minimal square foot age.
    o policy.rut gers.edu/ eah/ hoffman_blueprint .ht ml (employer assist ed housing paper)


Southern Oregon Workforce Housing Sum m it Report                 PRELIMINARY STRATEGIES               page 22
  o www.shimberg.ufl.edu/ issues%20newslett ers/ Newslett-Oct 05.pdf (several st rategies)

14) Mutual housing associations: Employers can create housing associations with ot her employers to
be able t o part ner on financing and managing affordable unit s. Mut ual housing is owned by a Mut ual
Housing Association and residents are members of t he association that owns t he housing. The mut ual
housing associat ion as a whole owns all the housing developments. Although resident s cannot buy or
sell t heir unit s direct ly, t hey do have a significant voice in decision-making, and have a lifetime right to
live in t he housing. Mont hly charges for the unit s are based on a percent age of t he resident ’s income,
and reflect t he act ual operat ing cost s of t he housing. There is no equit y accumulat ion for members,
or credit for mort gage principal paid.
   o www.coophousing.org/ about _nahc.sht ml (background on cooperat ive housing mechanism s
       including mut ual housing associat ions from t he Nat ional Associat ion of Housing Cooperat ives)
   o www.mut ualhousing.org/ mut ualconcept / (an overview of how mutual housing associations work)

15) Individual Development Accounts (matched savings accounts): Employers can est ablish a
program t hat funct ions in the same way t hat deferred com pensat ion ret irement mat ching does, only
t he mat ch and t he savings would be t argeted for home purchase. Under t his EAH benefit , t he
employer's cont ribut ion is given t o t he employee only aft er t he employee has saved a specific amount
and has met a t enure requirement .
   o www.occ.t reas.gov/ ft p/ release/ 2005-25a.pdf (Treasury Depart ment overview)
   o www.kenan-flagler.unc.edu/ asset s/ document s/ CC_Financial_Inst it utions_and_IDAs.pdf (survey
     result s)
   o www.st ate.hi.us/ t ax / hrs/ chap257.pdf (law detailing Individual Development Account s in Hawaii)

16) Group mortgage orientation plans: Essent ially volume discount programs whereby a mort gage
lender voluntarily reduces mortgage interest rates, closing point s, and/ or application fees in return for
a bulk mort gage lending com mit ment or some ot her ex pect at ion of a certain level of mort gage
lending act ivit y. The lender subsidy will vary wit h t he number of mort gages originat ed and ot her
market conditions, but in any subst ant ial program t he value can be ex pect ed t o approx imat e a 25
                     )                                                                     )
basis point s (1/ 4% reduct ion on t he mort gage int erest rat e and about one point (1% lower on t he
closing cost s.
   o policy.rut gers.edu/ eah/ hoffman_blueprint .ht ml (employer assist ed housing paper)

17) Federal tax credit (Housing America's Workforce Act): Bill pending in Congress t o provide a tax
credit t o employers, equal to 50 percent of t he cost of housing assist ance up t o $10,000 or 6 percent
of t he purchase price, whichever is less. If t he employee is rent ing, t he employer would get a credit of
50 cent s for every dollar in rent al assist ance, up t o a max imum of $2,000. Rent al assist ance can be
used t oward securit y deposit s and rent al payment s, while homeownership assist ance can be used for
such t hings as subsidizing down payment s, closing cost s, or cont ribut ions t o an employee
homeownership savings account .
   o realt yt imes.com/ rt cpages/ 20050706_billspromot e.htm (sum mary of t he bill from Realt yTimes)
   o www.realt or.org/ PublicAffairsWeb.nsf/ Pages/ HousingAmerica'sWorkforceAct ?OpenDocument
      (describes t he bill and gives support )

18) Employer partnerships with implementing agencies/ nonprofits: Employers can take advantage
of ex ist ing ex pert ise in the region by part nering wit h agencies/ nonprofit s t o assist in t he
implement at ion of t heir programs.

19) State tax credit: Per HB 3378 (2005 regular session), a st ate tax credit t o employers who provide
financial cont ribut ions t owards employees’ home purchase.
   o www.leg.st ate.or.us/ 05reg/ measpdf/ hb3300.dir/ hb3378.int ro.pdf (t he t ex t of t he bill)


Strategies: WHAT CAN BE DONE ON THE MONEY SIDE?
Strat egies t o improve t he effect iveness and availabilit y of sources of funding for t he development of
workforce housing, as well as for it s ownership or rent al.


Southern Oregon Workforce Housing Sum m it Report                 PRELIMINARY STRATEGIES              page 23
1) New Markets Tax Credits: Can be used as a funding source for non-resident ial (economic
development ) port ions of mix ed-use development , t hereby making a development wit h affordable
housing more feasible.
  o www.frbsf.org/ publicat ions/ com munit y/ invest ment s/ cra01-1/ newmarket .pdf
     (Ent erprise Foundat ion art icle)
  o cdfifund.gov/ programs/ programs.asp?programID=5 (t he US DEPT of Treasury on NMTX)

2) Low Income Housing Tax Credits: Federal housing t ax credit s are awarded t o project s for t he
acquisit ion, rehabilit at ion, or new const ruct ion of rental propert ies. These credits are t hen sold t o
invest ors t o raise capit al (or equit y) for t he projects, which reduces t he amount of debt t o be
borrowed. Because t he debt is lower, a tax credit propert y can in t urn offer lower, more affordable
rent s.
   o www.frbsf.org/ publications/ community/ investments/ cra02-2/ lowincome.pdf (overview of LIHTC)
   o www.hud.gov/ offices/ cpd/ affordablehousing/ t raining/ liht c/ index .cfm (gov't pages on LIHTC)

3) Historic Rehabilitation Tax Credit: A Federal incentive tax credit that encourages the preservation
and reuse of t he nat ion’s built environment by offering federal t ax credit s t o t he owners of hist oric
propert ies. Cert ified hist oric st ruct ures are eligible for a credit equal t o 20% of t he cost of
rehabilit at ion (10% if locat ed in an hist oric dist rict , but considered t o be a non-hist oric, non-
cont ribut ing struct ure). Propert ies must be income-producing and must be rehabilit ated according to
st andards set by t he Secretary of t he Int erior.
    o www.nat ionaltrust .org/ communit y_revit alizat ion/ t ax credit guide/ index .ht ml (overview)
    o www.cr.nps.gov/ hps/ t ps/ t ax / index .ht m (an overview from t he Nat ional Parks Service)

4) Demolition Taxes: A t ax t o generat e revenue when ex ist ing resident ial st ruct ures are demolished.
Can be a t ax on all demolit ions, or only on t he demolit ion of resident ial housing. Tax can be
ex empt ed for replacement buildings t hat will meet t he definit ion of affordable housing. Proceeds
could benefit a housing t rust fund.
   o www.cit yhpil.com/ pdf/ DemoPermit s.pdf (affordable housing demolit ion t ax and permit fee)

5) Linkage Fees: A cit y fee assessed on com mercial/ indust rial development (including office, ret ail,
and hot el space), which is paid int o an affordable housing fund. The use of “linkage” in t he t it le refers
t o t he link bet ween t his t ype of development and t he creat ion of jobs (which bring workers, who in
t urn require housing).
    o www.policylink.org/ EDTK/ Linkage.How.ht ml (clear info on linkage fee and how t o use t hem;
       links t o financing, addresses developers’ concerns of developers)

6) Increased Recordation Fee / Real Estate Transfer Fee: A fee collect ed from t he t ransfer of t it le of
real propert y. For commercial propert y “t ransfer of a cont rolling int erest in any ent it y wit h an interest
in real propert y”. At present recordat ion fees are severely limit ed in t he st at e of Oregon, and a real
est at e t ransfer fee is not possible by law.
   o www.policylink.org/ EDTK/ RETT/ (good overview by PolicyLink)
   o www.t pl.org/ tier3_cdl.cfm ?cont ent _it em_id=1060&folder_id=825 (overview and major issues)

7) Individual Development Accounts: Tax -free savings account s t o be used for first t ime
homeownership cost s, including t he cost s of acquiring, const ruct ing, or reconst ruct ing a residence
and any regular sett lement , financing, or closing cost s. In order t o qualify, a t ax payer’s income could
not ex ceed a specified percent of t he area household median income, and t he cost of t he residence
could not ex ceed a specified percent of t he average area purchase price of such a residence.
  o www.occ.t reas.gov/ ft p/ release/ 2005-25a.pdf (Treasury Depart ment overview)
  o www.kenan-flagler.unc.edu/ asset s/ document s/ CC_Financial_Inst it utions_and_IDAs.pdf (survey
     result s)

8) Coordinated CRA Compliance: The CRA (Com munit y Reinvest ment Act ) is int ended t o encourage
deposit ory inst it ut ions t o help meet t he credit needs of t he communit ies in which t hey operat e,


Southern Oregon Workforce Housing Sum m it Report                  PRELIMINARY STRATEGIES              page 24
including low- and moderat e-income neighborhoods, consist ent wit h safe and sound banking
operat ions. Banks make t arget ed invest ment s in an effort t o comply wit h the CRA. Voluntary regional
or subregional coordinat ion, among local banks and ot her sect ors, of invest ment s made t o comply
wit h t he CRA could improve t he effect iveness of t he program.
   o www.ffiec.gov/ cra/ about .ht m (overview by Federal Financial Inst it ut ions Ex aminat ion Council)

9) Housing trust fund: A regional housing trust fund t hat may receive and dist ribute dedicated
sources of public funds t oward development , rehabilit at ion, and preservat ion of affordable housing
unit s.
   o www.policylink.org/ EDTK/ HTF/ How.ht ml (comprehensive overview of HTF’s from Policylink)
   o www.nht f.org/ about / background.asp (good background on HTF's)

10) Tax Increment Financing: A t ool t hat allocates new revenue from propert y t ax es in a designat ed
area t o pay for improvement s wit hin t hat area, rat her t han back t o a cit y’s general revenue st ream.
This is a general financing t ool t hat could have a certain percent age of t he funds dedicated to t he
creat ion of workforce housing.
   o www.nado.org/ pubs/ sept 6.ht ml (overview by Nat ional Associat ion of Dev’t Organizat ions)
   o www.house.leg.st ate.mn.us/ hrd/ issinfo/ divpresent .pdf (how revenue can and can’t be used)

11) 50- and 60-year Mortgages: Longer t erm mort gages can increase on-going housing affordabilit y.
These t ypes of mort gages are not offered at present for single family home loans, alt hough t he st ate
of Oregon does have programs t hat allow for 40-year loans for mult i-family development s .
   o www.charocorp.com/ news-may-04.pdf (art icle from Charo Com munit y Development Corp.)
   o news.bbc.co.uk/ 1/ hi/ business/ 2027576.st m (BBC news art icle)
   o www.ohcs.oregon.gov (Oregon Depart ment of Housing and Com m unit y Services)

12) “Silent” Second Mortgage: The buyer signs a promissory not e for t he value of a housing subsidy.
A lien is recorded against the propert y to secure t his not e. The not e carries a below market interest
rat e and requires no mont hly payment s. The int erest and original loan amount are due and payable
upon sale or transfer of t he home or if t he home buyer fails t o use t he property as t heir primary
residence. An opt ion could be a provision for waiving some or all of t he interest in order to protect the
home owner's equit y if t here is litt le or no appreciat ion during t heir t erm of ownership. The silent
second mort gage mechanism maint ains t he affordabilit y of t he propert y t o t he init ial owner while
discouraging t hat owner from im mediately selling t he propert y and obt aining a windfall. This t ype of
mort gage can be st ruct ured so t hat t he principal balance is fully forgiven aft er either a set period of
t ime, or increment ally forgiven by a cert ain percent age each year.
    o www.floridacdc.org/ forms/ subsidy-recap.ht m (st rat egies from Florida group)

13) Shared Appreciation Mortgage – SAM (Equity Sharing): Wit h a SAM, t he local agency receives a
share of t he sales price when t he home is sold. The SAM essentially index es the value of t he subsidy t o
t he local housing market . A $20,000 subsidy t hat represent s 20%of a t ypical $100,000 home today is
always wort h 20% of t hat home's value. If t he home's value inflat es t o $300,000, t he value of t he
subsidy grows t o $60,000. The proceeds could form part of a revolving housing fund. SAMs work best
in st rong real est at e markets and during inflat ionary periods.
   o www.floridacdc.org/ forms/ subsidy-recap.ht m (st rat egies from Florida group)
   o www.leadst eps.com/ shared-appreciat ion-mort gage.html (clear and concise info on SAMs)

14) Shared Ownership Mortgages: Through shared ownership an individual buys a share of t he
propert y and pays a rent on t he remaining share he/ she does not own. Gradually furt her shares may
be purchased unt il t he home is owned out right .
  o www.a-mort gages-websit e.co.uk/ shared-ownership/ default .asp (overview from t he UK)


Strategies: WHAT CAN THE PUBLIC SECTOR DO?
Addit ions, changes, or refinement s t o regulat ions impact ing t he cost s and availabilit y of land and
housing, t he timeliness of development , and t he locat ion, mix , and determinat ion of housing t ypes.


Southern Oregon Workforce Housing Sum m it Report               PRELIMINARY STRATEGIES             page 25
1) Increased zoning for multi-family development: Cit ies can consider increasing t heir land supply
appropriat e for affordable housing by zoning for more mult i-family development at medium and high
densit ies.
   o www.mhp.net / t ermsheet s/ Init iat iveguidebook/ zoningandlanduse.pdf (overview of zoning
     st rategies and how t hey have been effect ively used)
   o www.nhc.org/ index / policy-act ion-hot -issues-IZ-ULI (import ance of zoning t o meet local needs)
   o www.seatt le.gov/ dpd/ planning/ mult ifamily_code_updat e/ (multi-family friendly land use codes)

2) Density bonuses: Developers who com mit t o allott ing a certain percent age of unit s at below
market rates may be allowed t o reduce lot sizes or increase t he number of houses on a lot , t hereby
reducing land cost per unit . This can include bonuses for t he rehabilit at ion of ex ist ing subst andard
housing provided t he bonus unit s are available as affordable housing.
   o www.sonoma-count y.org/ cdc/ pdf/ DbBrochure.pdf (descript ion of Sonoma Count y program )
   o www.ci.salinas.ca.us/ Admin/ MuniCodes/ CodeFiles/ _DATA/ CHAP37/ Art icle_IV__Regulat ions_
     Applying_t / Sec__37_139__Affordable_housin.ht ml (regulations governing Salinas’ density bonus
     program )

3) Minimum densities: Establishing minimum densities for multi-family zones for better utilization of
land dedicated t o affordable housing.

4) Accessory Dwelling Units (ADUs): Allow ADUs as a permitted use in single family zones and
planned unit development s.
   o www.horsleywitt en.com/ smart -growt h/ pages/ mod-adu.ht ml (overview and case st udies)
   o www.cmhc-schl.gc.ca/ en/ imquaf/ afho/ afadv/ pore/ prgasu/ index .cfm (info, case st udies from
     Canada)

5) Minimum lot and building siz e: Eliminat e unnecessary minimum lot and building size
requirement s from zoning ordinances.
  o www.cat o.org/ pubs/ regulation/ reg19n2f.ht ml (advocat es eliminat ing unnecessary minimums)

6) Mixed-use development: Encouraging higher densit y development in employment cent ers to
encourage affordable housing in areas wit h immediat e prox imit y t o jobs.
   o www.t imbermillshores.com / concept .ht ml (ex ample of one mix ed-use development in Oregon)

7) Cluster design: Rat her than allowing cluster designs only as special ex ceptions or conditional uses,
permit t heir use wit hout ex cept ion or condit ional use requirement s.
   o www.mrsc.org/ Publicat ions/ t ex t aht .aspx #clust er (from t he Municipal Research and Services
     Cent er of Washingt on, a discussion of a num ber of affordable housing st rategies)

8) Parking requirements: Where advisable, especially in areas wit hin prox imit y t o public t ransport ,
cit ies can reduce t heir parking requirement s for affordable housing developm ent s (num ber and
dimensions).
    o www.policylink.org/ EDTK/ Infill/ (parking requirement s as a strategy in larger discussion of infill)

9) Joint municipal planning: Provide for coordination and uniformity among jurisdictions on land use
ordinances import ant t o workforce housing, t hus providing a bett er knowledge base and response t o
current housing needs, as well as a more uniform playing field for t he development communit y.

10) Priority review of affordable housing projects: Jurisdict ions could provide special services at all
levels of review and inspection for affordable housing project s.
   o www.huduser.org/ rbc/ search/ rbcdet ails.asp?DocId=1169 (a case study of t he Orange Count y
     Florida Affordable Housing Ex pedit ed Review Process)
   o www.fremont .gov/ Const ruct ion/ DevelopAffordableHousing/ default.ht m #49percent (strategies
     from t he cit y of Fremont , California)




Southern Oregon Workforce Housing Sum m it Report              PRELIMINARY STRATEGIES             page 26
11) Inclusionary zoning: Mandat ed link bet ween t he const ruct ion of market rate housing and low-
and moderat e-income housing. Oft en used in conjunct ion wit h densit y bonuses.
  o www.t ownofcary.org/ dept s/ dsdept / P&Z/ affordablehousing/ plancolor.pdf (t own of Cary Nort h
     Carolina’s affordable housing plan, which includes a discussion of inclusionary zoning)
  o www.brookings.edu/ es/ urban/ publicat ions/ inclusionary.pdf (com prehensive piece)
  o www.policylink.org/ EDTK/ IZ/ Success.html (step-by-step process to establish inclusionary zoning)
  o www.planning.org/ affordablereader/ (zoning pract ice and news; evaluat ion of programs)

12) Redevelopment of industrial and commercial properties: Former industrial or commercial land
present opport unit ies t o redevelop sit es. Redeveloping sit es enables t he provision of affordable
housing because of t he increased density and t he use of ex ist ing infrastruct ure. Redevelopment can
range in size from one or two unit s on the site of a former dwelling t o many hundreds of unit s on
former indust rial lands.
   o www.cmhc-schl.gc.ca/ en/ imquaf/ afho/ afadv/ rere/ resi/ index .cfm (case st udies from Canada)

13) Existing housing stock rehabilitation: Est ablish regulat ions t hat encourage (especially in t erms
of cost reductions) t he rehabilit at ion of ex ist ing housing.
   o www.st ate.nj.us/ dca/ codes/ forms/ rehab.ht m (award winning rehabilit at ion subcode)
   o www.hud.gov/ offices/ hsg/ sfh/ 203k/ 203kabou.cfm (describes rehabilit at ion programs)

14) Construction of smaller homes: Among ot her measures, t ie permit cost s t o home size, rat her
t han just num ber of unit s. This could m ake it more profit able for builders t o build smaller units.

15) Reduced condominium conversion: Rest rict and/ or discourage condominium conversions of
ex ist ing rent al st ock. Conversion t o condominiums (or single family homes) usually increases cost of
housing and oft en displaces resident s.
   o www.ci.berkeley.ca.us/ bmc/ berkeley%      5Fmunicipal%  5Fcode/ t it le%5F21/ 28/ 060.ht ml
       (condo conversion fee dedicated t o housing t rust fund)
   o www.ci.east -palo-alt o.ca.us/ uploads/ 3416/ Condo%    20Conversion%     20CC%  20% 20PC%  20Report %
       205.9.05_2_2%     20WEBSITE%  20COPY.pdf (Palo Alt o’s approach t o controlling condo conversions)
   o www.ci.fairfield.ca.us/ 3540.htm (the City of Fairfield’s regulations concerning condo conversions)

16) Residential alterations/ conversions: Permit / facilit at e t he conversion of ex ist ing single family
dwellings int o t wo or more resident ial unit s.

17) Development fee waivers or abatements for affordable housing: Can be part ial or full
reduct ions of development fees on affordable housing unit s. Availabilit y can be restrict ed t o non-
profit developers or open t o all.
  o www.pdc.us/ housing_serv/ hsg_development / dev-fee-waivers.asp (non-profit project s program)
  o www.huduser.org/ rbc/ newsletter/ vol3iss3more.html (Regulatory Barriers Clearinghouse overview
      of different development fee waivers, abatement s, or rebat e programs from around t he count ry)

18) Property tax abatement or exemption for rehabilitated buildings used for workforce
housing: A reduct ion in propert y t ax es for a set amount of t ime for rehabilit ation of vacant or
underut ilized buildings for use as workforce housing. Current ly, Oregon has a Vert ical Housing Tax
Credit Program , which allows up t o a 20%reduct ion in propert y t ax es per floor, up t o 4 floors or 80%,
for 10 years.
   o www.ohcs.oregon.gov/ OHCS/ HFS_Vert icalHousingProgram.sht ml (Vert ical Housing Program )
   o www.cit yofseatt le.net / housing/ Propert yEx empt ion.ht m (propert y t ax ex empt ion program )
   o www/ pdc.us/ housing_serv/ hsg_development / renguide.asp (rent al rehab guidelines)

19) Property-tax abatement or exemption for construction of new workforce housing: A reduct ion
in propert y tax es for a set amount of t ime t o encourage t he const ruct ion of workforce housing.
Oregon has several ex amples — one is an applicat ion made direct ly t o t he local Count y Assessor’s
office for a part ial property t ax reduct ion on affordable housing complex es, anot her is t he Vert ical




Southern Oregon Workforce Housing Sum m it Report               PRELIMINARY STRATEGIES            page 27
Housing Tax Credit Program , which allows up t o a 20% reduct ion in propert y t ax es per floor, up t o 4
             ,
floors or 80% for 10 years.
   o www.ohcs.oregon.gov/ OHCS/ HFS_Vert icalHousingProgram.sht ml (Vert ical Housing Program )
   o egov.oregon.gov/ DOR/ PTD/ docs/ 310-090.pdf (special assessment applicat ion)

20) Mechanisms to discourage land or structures left vacant: Adjust ment s t o t ax assessm ent s
and/ or ot her regulat ory mechanisms t o encourage owners of vacant land or st ruct ures t o develop
affordable housing.
   o www.buec.udel.edu/ craige/ nt a_lvt .ht m (argument for a land value t ax in which newer structures
     are t ax ed less t han det eriorat ing ones)
   o www.newcolonist .com/ t worat e.ht ml (argument in favor of reducing t he t ax on buildings and a
     simult aneous rise of t he t ax on land t o encourage development of vacant lot s)

21) Reduction of the tax rate for multi-family housing: Reduct ion of t he t ax rat e for affordable
mult i-family housing t o make t hem consist ent wit h or more favorable t han single-family housing.

22) Residential tax credit for rehabilitating affordable housing: A resident ial t ax credit applicable
t o t he cost s incurred during t he const ruct ion, alterat ion, or modificat ion of affordable housing.
    o www.st ate.hi.us/ t ax / t ir/ t ir2002-03.ht m (Hawaii’s t ax credit )

23) Replacement of demolished homes: Mandat ed replacement of m oderate- or low-priced single
family homes demolished as a result of a resident ial project by an equal number of equivalently priced
unit s, wit h first priorit y for occupancy given t o previous resident s.

24) Preferential expansion of city urban growth boundaries for the creation of workforce
housing: A st reamlined process for t he select ive ex pansion of UGBs for t he ex pressed purpose of
creat ing workforce housing.

25) Maximum charitable tax credits for individual donations to affordable housing: The creat ion
of a st ate t ax credit of X% of t he value of cash or in-kind donat ions t o affordable housing.
   o www.housingminnesot a.org/ downloads/ Tax CreditEx ecutiveSummary8-04.pdf (t hree model tax
      st rategies for affordable housing, including charit able t ax credit ; ex amples of effect ive uses)

26) Housing construction and rehabilitation code amendments: A cost / benefit analysis of codes
governing new house construction and rehabilitation to ascertain whether housing affordabilit y can be
increased without sacrificing safet y. Pot ent ially, could include a separat e set of codes for housing
rehabilit at ion.
   o www.metro-region.org/ library_docs/ land_use/ fchapt erfour.pdf (see page 55-56)
   o www.st ate.nj.us/ dca/ codes/ forms/ rehab.ht m (award winning rehabilit at ion subcode)

27) Annexation / UGB Agreements: Volunt ary agreement s bet ween cit ies and landowners to
dedicate a cert ain proport ion of developable land t o affordable housing as a condition for annex at ion
int o t he cit y or inclusion int o t he UGB.
   o www.ashland.or.us/ Code.asp?CodeID=3473 (18.106.030)




Southern Oregon Workforce Housing Sum m it Report              PRELIMINARY STRATEGIES            page 28
                                                                       February 24, 2006

Crisis in ‘workforce housing’ at hand
Regional gr oups gat her in sear ch of solut ions f or escalat ing housing pr ices
By Vickie Aldous, Ashland Daily Tidings

MEDFORD — More t han 200 developers, government               home sales as a viable met hod for generat ing money
officials, real est ate agent s, act ivist s, bankers and     for workforce housing project s.
represent at ives from nonprofit groups put t heir
                                                              A 0.5 percent t ax , for ex ample, could be charged on
collective heads t ogether to identify t he most promising
                                                              t he price of a home, wit h t he first $200,000 of t he cost
st rategies for t ackling Sout hern Oregon’s affordable
                                                              ex empt . The tax would generate $500 on a house t hat
housing crisis.
                                                              sold for $300,000.
The disparate groups gathered earlier t his week at
                                                              Talent Cit y Councilor Wendy Siporen said t he t ax could
Medford’s Red Lion Inn for t he Workforce Housing
                                                              help com munit ies generat e m oney off people who buy
Summit .
                                                              houses as invest ment s and t hen sell t hem at a profit ,
The event was organized in recognit ion of t he fact t hat    driving up prices.
it ’s no longer just low income resident s who can’t
                                                              But not everyone support ed t he real estat e t ax .
afford housing. “Workforce housing” is int ended t o
bridge t he gap for low, middle and even higher income        “It seems t o me it just adds t o t he price of a house,”
resident s who earn t oo much t o qualify for affordable      said banker Wayne Thompson.
housing subsidies but not enough t o rent or buy a
                                                              Tax support ers would have t o lobby t he Oregon
home, according t o event coordinat ors.
                                                              Legislat ure when it reconvenes in 2007 t o lift a st ate
While Ashland and Jacksonville have long been                 ban on real est ate sales t ax es. Money could go int o a
recognized as having high housing prices in t he Rogue        regional housing t rust fund.
Valley — with average house sales prices t opping
                                                              Some part icipant s said such a fund should be set up as
$450,000 in 2005 — prices have escalat ed in
                                                              a 501(c)3 nonprofit so it could receive tax deduct ible
surrounding      cit ies t hat  serve as        “bedroom
                                                              donat ions as well.
com munit ies” for workers, according t o dat a presented
at t he summit .                                              The employer side
The average house sales price rose above $200,000 in          Employers and ot hers worried about many workers’
White Cit y — the Rogue Valley’s lowest priced market —       inabilit y t o afford homes met in groups t o discuss what
in 2005, up from just over $100,000 in 2000.                  t hey considered t o be t he most viable strat egies for
                                                              meet ing t hose needs.
Talent ’s average house sales price spiked above
$375,000 in 2005, making it t he t hird highest -priced       Employers could creat e down payment and closing cost
market in Jackson Count y, t he dat a reveals.                assist ance programs, provide mat ches for workers who
                                                              set up savings account s t o save for a home or negotiate
Keynot e speaker David Pearce Snyder, a nat ionally
                                                              for discount ed group mort gage rat es for employees.
known fut urist , said Americans need to consider a
range of opt ions for reducing t he cost of housing.          Some of t he incent ives could be t ied to t he worker
Those opt ions include st reamlining t he land-use            st aying wit h t he company, which would help with
process, making t he home-buying process less                 ret ent ion. Employers also could be eligible for a st at e
ex pensive by bypassing middlemen, clust ering smaller        t ax credit if t hey help employees buy a home.
scale homes like European villages and building
                                                              Part icipant s emphasized t he need for educat ion for all
multigenerational housing where grandparents live with
                                                              part ies. They advocated that employers work wit h
families.
                                                              nonprofit s t hat are familiar wit h affordable housing
“Some of our adapt at ions may be reinvent ing American       issues, and t hat employees at tend home buyer and
suburbia,” he said.                                           finance classes.
The money side                                                Public and private
Summit part icipant s reviewed a number of met hods for       Com munit y land t rust s, like t he Ashland Com munit y
financing workforce housing and made t heir picks for         Land Trust , received high marks for t heir abilit y t o
what might work best . Many viewed a sales tax on             lower housing prices by retaining ownership of t he land
                                                              beneat h sold homes.
Nonprofit s and government agencies also could offer                   Government s could        consider  mandat ing        t he
subsidies t o buyers, who could buy a home at a below-                const ruct ion of low- and moderat e-income housing
market price but t hen would be com mit ted t o only sell             when market-rat e subdivisions are built. Developers
t he home t o anot her qualifying low-income person at a              could be allowed t o build more densely if t hey met t hat
below-market rat e. The agreement s generally allow t he              provision.
house t o appreciate a small percent age each year, wit h
                                                                      Government s also could reduce propert y taxes for a set
t he original buyer also get t ing credit for any
                                                                      period of t ime when developers rehabilit at e or
improvements he or she m ade t o t he propert y.
                                                                      const ruct buildings for workforce housing, many
Many developers said cit ies need t o st reamline t heir              sum mit part icipant s suggest ed.
land-use rules.
                                                                      Overall, part icipant s sift ed t hrough more t han 70
More affordable housing could be built if cit ies                     met hods for providing workforce housing t o make their
encouraged mix ed-use development , wit h commercial                  t op picks.
and resident ial uses coex ist ing. Former indust rial sit es
                                                                      The Sout hern Oregon Cent er for Com munit y
could be redeveloped for housing.
                                                                      Part nerships, founded in 2004, will advocate for t he
However, some said com munit ies could be resist ant t o              st rategies favored by part icipant s.
using comm ercial and indust rial land for homes
because t hey also are working t o at tract businesses
t hat provide jobs.
Encouraging infill, or const ruct ion on vacant areas t hat
are surrounded by development , boost s t he availability
of land for affordable housing. Cit ies need t o be more
flex ible about odd-sized lot s, according t o some
developers.




                                                          In Ashland, only two houses are on t he market for less t han $250,000 (one
                                                          shown above).




The median housing price hovers around $400,000 (middle).




                                                             A three-bedroom, three-bath house in a t reed sett ing wit h mount ain
                                                             views, decks and separat e living space downst airs is on t he market for
                                                             $769,000.




htt p:/ / 67.15.1.122/ 2006/ Feb%202006/ 0224/ 022406n1.sht ml
                                                                                       Published:
                                                                                       March 4, 2006

AFFORDABLE HOUSING GAP HURTS BUSINESSES
By Pet er Rice, Pilot st aff writer
GOLD BEACH – Wanted: people t o work at a
t hriving marine equipment manufact urer where
t he median income is $35,000 per year, which is
higher t han the count y median. Full family
medical benefit s and 401k provided.
An easy sell?
No.
The company is Freeman Marine, which makes
doors, hat ches and ot her equipment for boat s.
From t he Gold Beach headquarters, t he
company's 90 employees ship product to more
t han 50 count ries. The workers are a
combinat ion of administ rat ors, designers, t echs
and people who are just good at working wit h
t heir hands.
For various reasons, it 's not always easy
persuading recruit s t o relocat e t o Gold Beach,        Bo Schindle r , r ight , a nd D ugie Fr e e m a n sa y a t a sk for ce is
according t o Freeman Marine co-owner Bo                  ne e de d t o solve la ck of a ffor da ble housing pr oble m t ha t
Schindler. But one of t he bigger st icking point s       pla gue s t he ir busine ss a nd ot he r s.
is t he cost of housing.                                  The Pilot / Pet er Rice

"The housing is part of t he puzzle," he said. "If t he housing is good here, t hen t he long-t erm out look is a heck
of a lot bett er."
Schindler and business part ner Dugie Freeman have been int erest ed in t he problem of ex pensive housing for a
while now. Last week, t hey att ended a conference on t he issue in Medford wit h Curry Count y elected officials.
But aft er learning more, t hey're st ill between a rock and a hard place.
One simple free market answer would be t o raise wages t o att ract employees, but t hat 's t ough in a global
economy, where compet ing companies might be paying t heir workers much less.
Creat ing company housing for workers isn't easy eit her.
"You're t alking about a pile of money," Schindler said.
Ot her ideas, such as adding signing bonuses t o compensat ion packages or making down paym ent s on
employees' houses, would be nice, but would run int o similar problems.
Faced wit h a bad sit uat ion, Freeman and Schindler are calling on local government s t o do what t hey can.
"We need t o count ies and t he cit ies and t he port s t o come t oget her and work on t his t hing," Schindler said.
One idea t he t wo have: Get cit ies t o ex pand t heir boundaries. That would spread t he cost s of development ,
and t he ex t ra infrast ruct ure t hat comes wit h it t o a larger base of t ax payers. It would also be more efficient ,
t hey argue, because fewer people would administ er more public services.
The more efficient development would free up land t o be convert ed int o housing, t hus increasing t he supply
and lowering t he price, t he Schindler/ Freeman t heory goes.
That 's act ually been done, according t o Curry Count y Planning Direct or Dave Pratt . Bend ex t ended out t o it s
urban growt h boundary, t he est imat ed 20-year build-out border around a cit y.
Of course, t he idea of ex panding cit ies will likely prove unpopular wit h some, if t he recent annex at ion of part
of t he Harbor Hills is any indicat ion.
~~~
Government s can also encourage dense living arrangement s, Prat t said, which are smaller and t hus cheaper.
It 's also cheaper for government t o provide roads and wat er or sewer pipes t o dense living arrangement s.
But how t o encourage t hat ?
One way, Prat t said, is for government s t o leverage tax m oney. For ex ample, a city could buy a piece of
propert y for $200,000, t hen resell it t o a developer for $150,000 on t he condit ion t hat t he developer put up
affordable housing on t he land.
The only problem t here is gett ing t he money, no easy t ask for Curry Count y government s.
Planning depart ment s could also work to st reamline the development process, cutt ing out som e of t he red
t ape and working t o prevent cost ly construct ion delays, Pratt said.
"I t hink we could all be more efficient ," he added.
But while Oregon has a restrict ive land use syst em, t here are act ually clear limit s on how much government s
can boss developers around. For ex ample, if someone want s t o build one house on an acre of land, a
government can't simply order t he developer t o inst ead build 10 houses – living unit s t hat would likely be on
t he affordable side.
"Now it 's t his st ruggle bet ween propert y right s and what 's good for t he general public," Pratt said.
At t he count y and at t he city of Brookings, ideas on t weaking t he rules t o encourage cheaper housing are st ill
in t he early discussion phase. Brookings Mayor Pat Sherman met Friday wit h planner Dianne Snow, Planning
Com missioner Rick Dent ino and Pet e Bilodeau and Bret Curt is of Chet co Federal Credit Union for a
brainst orming session on housing.
Ideas kicked around included:
• Adding a "densit y bonus" t o cit y ordinances. That could, wit hin cert ain t ypes of zones, allow developers t o
build more houses in less space.
• Rezoning some areas t o allow for denser "mult i-family" development .
• Making it easier t o develop "accessory dwellings," also known as "mot her-in-law unit s," for older family
members.
• Leaning on t he st ate legislat ure t o implement reform at t hat level.
• Organizing a local housing conference t o get local players t oget her.
One it em not on t he t able, according t o Sherman, is using t he fees t hat t he cit y charges developers as
encouragement t o build cheaper and denser housing. The fees, called syst ems development charges, help
finance cit y infrast ruct ure.
Cit ies could, in t heory, raise all of t he charges while at t he same t ime cutt ing t hem for projects t hat would
create affordable housing. Or t hey could just lower t he fees on favored project s out right .
But t hat 's not in t he cards for Brookings, which just raised t hose fees.
"Given where t he cit y is now I can say flat out t hat we're not going t o do it ," Sherman said.
She did, however, say t hat ot her proposals would be brought before t he cit y council soon.

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