Colorful buildings provide the makeup of the Peace Village Co-Op, one of several affordable housing projects in Eugene, Ore., on Jan. 18, 2024. (Eric Becker/Emerald)
On Jan. 4, the city of Eugene announced its third annual proposal submission for the Affordable Housing Trust Fund. The 2023 AHTF cycle has raised $1 million for a new affordable housing project in Eugene.
The fund raised the money via the Eugene Construction Excise Tax. The tax, which went into effect in 2019 in Eugene, is a 0.5% tax on building permits that result in a new structure or additional living space. As a result of the structure of the tax, the amount of money in the AHTF fluctuates by year depending on the number of building permits issued in Eugene.
Eugene is currently seeking developers to submit affordable housing development proposals. In order for the proposal to be eligible it must:
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Consist of four dwellings or more
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Be built within Eugene City Limits
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Developers can request a maximum of 50% of the funds in the AHTF (500,000 for the 2023 cycle)
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Developers must be ready to begin construction within 18 months of being approved
Proposals, which are due Mar. 1, will be reviewed by the Eugene AHTF Advisory Committee. In June, proposals will then be brought before the Eugene City Council, which will decide which proposals receive funding. More than one proposal can win funding or partial funding for a project.
In 2023, the Eugene City Council dispersed $1.2 million in AHTF money that helped to fund the Coleman housing development, the Bridges on Broadway housing development and the Grant Street Grow Homes project.
AHTF aims to provide affordable housing to all and does not specifically discriminate against students, however none of the projects built with prior fund money have been turned into student housing.
As rent for students becomes increasingly unaffordable for so many students, UO freshman Jessa Mutch hopes to see a future collaboration with AHTF and the University of Oregon to create more student housing.
“It’s almost impossible to live off campus as a student working part time [and] going to school full time,” Mutch said. “I hope they [Eugene and UO] do [provide more affordable student housing]. I’m just a freshman, but hopefully in the future I want to live off campus [and] as of right now I can’t imagine affording it.”
Income limits for affordable housing eligibility and rent maximums are based on the percentage of “area median income” an individual makes. The U.S. Department of Housing and Urban Development considers an individual making 80% of the Area Median Income to be “low income,” and an individual making 30% of the AMI to be “extremely low income.”
In Eugene, anyone making below 100% AMI ($55,800 for 2022) is eligible for affordable housing.
“It [AMI] is a way of ensuring that when we’re making affordable housing available, that it is actually going to folks that are in those lower income levels,” Eugene Housing Tools Analyst Laura Hammond said. “We are ensuring that they [low-income individuals] have first access to that housing, because they’re actually the ones that are having the hardest time finding housing they can afford.”
Housing developers can offer affordable housing to anyone making below 100% AMI. However, preferred features in a proposal would serve individuals who are “extremely low-income” or making less than 30% AMI and proposals that serve individuals making between 60-80% AMI.
After a development that receives funding from the AHTF is completed, it is mandated to stay affordable for a minimum of 20 years. This concept, commonly known as a “Community Land Trust Model,” ensures that the unit is sold at the same affordable price after the original tenant moves out.
Many community land trusts around the country last for perpetuity, however, Hammond argued that a permanent land trust for Eugene is unfeasible and could push away prospective contractors from applying for AHTF money.
“We [Eugene] chose 20 years because it felt like something that still made it approachable for smaller developers who might not be able to make that commitment,” Hammond said. “We certainly like to see proposals that are for longer than 20 years.”
Hammond went on to say that the AHTF committee attempts to incentivize developers to voluntarily commit to keeping their housing affordable for longer than 20 years by offering extra points toward their point total during the review process.
Other incentives offered to developers by AHTF include a 20-year property tax exemption for rental housing that serves households making below 60% AMI.
After a proposal is chosen, money is given to the developer via a 20-year zero interest loan from the city of Eugene. If the developer keeps the property affordable for the 20 years, they are then released from the loan. According to Hammond, this is the city’s way of ensuring developers keep their word and keep their housing affordable for the 20-year minimum agreed upon.
Letters of intent to submit a proposal are due Feb. 1 with applications due on Mar. 1. More information about applying can be found here.
The Daily Emerald reached out to Eugene Affordable Housing Production Manager Ellen Meyi-Galloway and did not receive a response for comment.
