Housing Development Incentives
Land Acquisition for Affordable Housing
The City’s Land Acquisition Program has been nationally recognized as a model for helping create quality, affordable homes in Eugene. Also known as the “Land Bank” program, the City of Eugene uses federal grants and other funds to purchase properties and prepare them for future affordable housing development. The acquisition process involves selection of an appropriate site, neighborhood outreach, environmental review and other due diligence activities, and a review by an Evaluation Committee. The City Council makes final decisions on land acquisition.
The development process for sites acquired through the Land Acquisition program is separate, and likely to happen several years after the acquisition is complete. The City performs neighborhood outreach, and releases a Request for Proposals to solicit development proposals from housing providers. An Evaluation Committee reviews and scores the development proposals and makes a recommendation to City Council for final decision.
Since 1979, the Land Acquisition for Affordable Housing Program has purchased over 90 acres and helped create over 950 affordable homes in our community. These units provide homes to people with limited incomes, including people with disabilities, low-income families, individuals, youth, seniors, and others with special needs.
If you have a property that you’d like to sell to make an impact for people in need of housing stability, please contact us.
Low-income Rental Housing Property Tax Exemption (LIRHPTE) The 20 year Low-income Rental Housing Property Tax Exemption (LIRHPTE) is enabled by state statute. The LIRHPTE provides a 20 year exemption for rental properties constructed after February 12, 1990, or rental properties owned by 501c(3) non-profits. LIRHPTE is for properties that are offered for rent or held for the purpose of developing low-income rental housing. The income limit for the program is 60 percent of the area median income based on household size, as determined annually by the US Department of Housing and Urban Development. More information here.
City of Eugene Systems Development Charge (SDC) Exemptions
Housing for low-income persons is eligible for an exemption from paying local charges imposed by Eugene City Code (EC) 7.705, per EC section 7.725. The SDC exemption may be used to support rental development and homeownership development. The income limit for rental development is 60 percent of the area median income, and for homeownership development it is 80 percent of the area median income, based on the income limits published annually by the US Department of Housing and Urban Development. The affordability requirement must be met for a minimum period of five years. The City uses a Request for Proposals (RFP) process to allocate exemptions.
Visit the SDC Exemption website for more information regarding SDC exemptions and the RFP.
Federal Environmental Review
The federal government awards funds to Affordable Housing and other development projects through the US Department of Housing and Urban Development (HUD). Funding through a variety of HUD programs may be awarded by HUD directly (including Congressionally Directed Spending), awarded through Oregon Housing and Community Services, and through the City of Eugene. When a developer or agency receives a HUD award for a project, it must follow many different federal regulations, including Environmental Review required regulations. Developers cannot enter a contract to expend any federal funds until the Environmental Review has been completed. If a developer receives a HUD award for a project within Eugene, the City will conduct a site-specific Environmental Review. In cases where a developer is awarded HUD funds not from the City of Eugene, the developer will contract with City staff to complete the required federal Environmental Review, which makes the City the Responsible Entity that assumes the HUD environmental responsibilities for that project.
City of Eugene Green Building Incentives
The City has a voluntary Green Building Incentive Program to encourage sustainable building practices in our community.