inclusionary zoning in oregon - old presentation from 2011 i did

PROJECT

DATE AUTHOR04.13.11 PETER KOEHLER

INCLUSIONARY ZONING:AN AFFORDABLE HOUSING STRATEGY FOR OREGON

What is Inclusionary Zoning?

WHAT?A law that requires market rate residential developments to include an “affordable” component.

WHY?

WHAT?A law that requires market rate residential developments to include an “affordable” component.

To create a relatively permanent supply of affordable housing for a diverse labor force; to create mixed income neighborhoods

WHERE?

WHY?

WHAT?A law that requires market rate residential developments to include an “affordable” component.

To create a relatively permanent supply of affordable housing for a diverse labor force; to create mixed income neighborhoods

In many jurisdictions. Usually in municipalities, but also some counties, and even entire states.

The Oregon Context

‣ Oregon is the only state that prohibits IZ

‣ 1999 ban on IZ a response to pressure from developers

‣ Recent efforts to repeal the ban have seen traction in the legislature.

Image Source: Eugene, Oregon Lane County Agriculture Extension Service Closes, www.smartgrowthusa.wordpress.com

The Problem:The State of Oregon has an affordable housing deficit.

Many Oregonians spend too much on housing and are priced out of certain areas.

Image Source: Citizens’ Housing and Planning Association, www.chapa.org

The Solution:The Oregon legislature should overturn the inclusionary zoning ban.

This would help supply affordable housing for a diverse work force and spur mixed-income neighborhoods.

Image Source: Citizens’ Housing and Planning Association, www.chapa.org

4%4%

1%2%

5%

6%

4%

10%

12% 18%

34%

Avg. U.S. Household Expenditures

HousingTransportationFoodInsurance/PensionsApparel and ServicesHealthcareEntertainmentEducationPersonal CareCash ContributionsMisc.

Source: Consumer Expenditures, US Dept. of Labor, US Bureau of Labor Statistics, 2009

0

10

20

30

40

50

Bottom 20% Second 20% Third 20% Fourth 20% Top 20%

Percentage of Household Income spent on Housing Costs by Quintiles of Income

Source: Consumer Expenditures, US Dept. of Labor, US Bureau of Labor Statistics, 2009

Oregon Housing Wage:$14.93 / hr

Average Wage for Renters:$12.84 / hr

Source: US Census via Eugene Register Guard

$0

$50,000

$100,000

$150,000

$200,000

$250,000

1990 2006

Median Home Value in Oregon, 1990 and 2006

Source: US Census via Eugene Register Guard

$0

$50,000

$100,000

$150,000

$200,000

$250,000

1990 2006

Median Home Value in Oregon, 1990 and 2006

A 254% INCREASE!

Source: US Census via Eugene Register Guard

The Magnitude of the Problem

0

20

40

60

80

99-Q1 00-Q2 01-Q3 04-Q2 05-Q3 06-Q4 08-Q1 09-Q2 10-Q3

NAHB HOUSING OPPORTUNITY INDEX

HO

I Sco

re

NATIONAL

PORTLAND MSA

Source: Wells Fargo/NAHB HOI Website

HOUSEHOLDS IN PORTLAND ARE MORE COST-BURDENEDTHAN THE NATION AS A WHOLE

0%

10%

20%

30%

40%

50%

Portland US

Source: Portland Bureau of Planning and Sustainability 2009 Housing Affordability Report

Work hours needed per week to afford units of various sizes at fair market rents in Portland (2009)

0

20

40

60

80

100

120

140

0 BR 1 BR 2 BR 3 BR 4 BR

Hou

rs o

f wor

k/w

eek

Minimum wage earnerMean renter wage earner

Source: Portland Bureau of Planning and Sustainability 2009 Housing Affordability Report

0

1000

2000

3000

4000

5000

6000

1988 1994 1996 1997 1998 1999 2002 2004 2007 2010

Total Units of Housing in Downtown Portland affordable to single, full time minimum wage earner

Source: 2010 Northwest Pilot Project Downtown Portland Affordable Housing Inventory

Source: Portland Bureau of Planning and Sustainability 2009 Housing Affordability Report

Source: Portland Bureau of Planning and Sustainability 2009 Housing Affordability Report

OTHER CONTRIBUTING FACTORS

‣ Oregon’s Urban Growth Boundary

‣High unemployment

‣ Loss of rental housing due to condo conversions (4500 condo conversions between 2000 and 2007

‣ Closure of mobile home parks

Source: Portland Bureau of Planning and Sustainability 2009 Housing Affordability Report

Case Studies

1. Montgomery County, MD

2. California

3. Boston Suburbs

Alternatives

AlternativesSTATE MUNICIPALITIES

Alternatives

Do Nothing. Maintain IZ Prohibition.

STATE MUNICIPALITIES

Alternatives

Do Nothing. Maintain IZ Prohibition.

Overturn ban and allow municipalities

to determine IZ programs.

STATE MUNICIPALITIES

Alternatives

Do Nothing. Maintain IZ Prohibition.

Overturn ban and allow municipalities

to determine IZ programs.

Overturn ban and create mandatory state IZ program.

STATE MUNICIPALITIES

Alternatives

Do Nothing. Maintain IZ Prohibition.

Overturn ban and allow municipalities

to determine IZ programs.

Overturn ban and create mandatory state IZ program.

Do not create IZ program

STATE MUNICIPALITIES

Alternatives

Do Nothing. Maintain IZ Prohibition.

Overturn ban and allow municipalities

to determine IZ programs.

Overturn ban and create mandatory state IZ program.

Do not create IZ program

Create voluntary IZ program

STATE MUNICIPALITIES

Alternatives

Do Nothing. Maintain IZ Prohibition.

Overturn ban and allow municipalities

to determine IZ programs.

Overturn ban and create mandatory state IZ program.

Do not create IZ program

Create voluntary IZ program

Create mandatory IZ program

STATE MUNICIPALITIES

Alternatives

Do Nothing. Maintain IZ Prohibition.

Overturn ban and allow municipalities

to determine IZ programs.

Overturn ban and create mandatory state IZ program.

Do not create IZ program

Create voluntary IZ program

Create mandatory IZ program

STATE MUNICIPALITIES

Recommendation

Do Nothing. Maintain IZ Prohibition.

Overturn ban and allow municipalities

to determine IZ programs.

Overturn ban and create mandatory state IZ program.

Do not create IZ program

Create voluntary IZ program

Create mandatory IZ program

STATE MUNICIPALITIES

Recommendation

Do Nothing. Maintain IZ Prohibition.

Overturn ban and allow municipalities

to determine IZ programs.

Overturn ban and create mandatory state IZ program.

Do not create IZ program

Create voluntary IZ program

Create mandatory IZ program

STATE MUNICIPALITIES

State Overturn IZ Ban

Provide incentives and flexibility for developers

Provide incentives and flexibility for developers

Recommendation

State Overturn IZ Ban

Adopt Mandatory IZ program

Provide incentives and flexibility for developers

Provide incentives and flexibility for developers

Recommendation

State Overturn IZ Ban

Adopt Mandatory IZ program

Provide incentives and flexibility for developers

Provide incentives and flexibility for developers

Provide incentives and flexibility for developers

Recommendation

State Overturn IZ Ban

Adopt Mandatory IZ program

Provide incentives and flexibility for developers

Encourage IntersectoralPartnerships

Provide incentives and flexibility for developers

Provide incentives and flexibility for developers

Recommendation

State Overturn IZ Ban

Adopt Mandatory IZ program

Provide incentives and flexibility for developers

Encourage IntersectoralPartnerships

Provide incentives and flexibility for developers

Provide incentives and flexibility for developers

Track Progress

Recommendation

CAN IT HAPPEN?

1. Oregon has an affordable housing deficit

CONCLUSIONS

1. Oregon has an affordable housing deficit

CONCLUSIONS

2. Inclusionary Zoning is a tool utilized nationwide by municipalities to create affordable housing units.

1. Oregon has an affordable housing deficit

CONCLUSIONS

2. Inclusionary Zoning is a tool utilized nationwide by municipalities to create affordable housing units.

3. The State of Oregon banned IZ.

1. Oregon has an affordable housing deficit

CONCLUSIONS

2. Inclusionary Zoning is a tool utilized nationwide by municipalities to create affordable housing units.

3. The State of Oregon banned IZ.

4. Depending on whom you ask, IZ is either effective or not. Criteria matters!

1. Oregon has an affordable housing deficit

CONCLUSIONS

2. Inclusionary Zoning is a tool utilized nationwide by municipalities to create affordable housing units.

3. The State of Oregon banned IZ.

4. Depending on whom you ask, IZ is either effective or not. Criteria matters!

5. Oregon should overturn the IZ ban.

1. Oregon has an affordable housing deficit

CONCLUSIONS

2. Inclusionary Zoning is a tool utilized nationwide by municipalities to create affordable housing units.

3. The State of Oregon banned IZ.

4. Depending on whom you ask, IZ is either effective or not. Criteria matters!

5. Oregon should overturn the IZ ban.

6. Municipalities, especially those with low affordability and integration, should implement mandatory IZ programs in exchange for development incentives.