July 10, 2018 TO

Memorandum Date: June 22, 2018

Order Date: July 10, 2018

TO: Board of Commissioners

DEPARTMENT: Health & Human Services

PRESENTED BY: Karen Gaffney, Director

Steve Manela, Human Services Division Manager

AGENDA ITEM TITLE: IN THE MATTER OF APPROVING AN INTERGOVERNMENTAL AGREEMENT WITH HOMES FOR GOOD FOR THE HOUSING FIRST BUILDING SITE AND DELEGATING AUTHORITY TO THE COUNTY ADMINISTRATOR TO SIGN THE APPROVED AGREEMENT IN THE DEPARTMENT OF HEALTH & HUMAN SERVICES

I. MOTION In The Matter Of Approving an Intergovernmental Agreement With Homes For Good for the Housing First Building Site and Delegating Authority to the County Administrator to Sign the Approved Agreement In The Department Of Health & Human Services

II. AGENDA ITEM SUMMARY The Board of County Commissioners is being asked to consider the transfer of ownership of property adjacent to the County Behavioral Health Building. This property is zoned (PL) public land and would be used for the development of a 50-unit Housing First building . The property will be transferred for the price of one dollar based upon conditions that are outlined in the Intergovernmental Agreement attached to this agenda memo. The County Administrator would be delegated authority to determine that the conditions have been met and to sign the agreement. This will allow Homes for Good Housing Agency to apply for funding from the Oregon Health Authority Health Systems Division for a $650,000 grant in support of housing homeless person with severe and persistent mental illness.

III. BACKGROUND/IMPLICATIONS OF ACTION A. Board Action and Other History

The BCC last received an update on Housing First efforts in a board memorandum dated July 10, 2017 that included portions of a predevelopment portfolio for the construction and operation of a 50-unit Housing First Building to be built adjacent to the Lane County Behavioral Health building at 2411 Martin Luther King, Jr Blvd, Eugene, OR 97401. Since that time, Lane County Health and Human Services (H&HS) and Homes for Good have worked on funding applications to the State of Oregon Housing and Community Services, Federal Reserve Bank, Myer Memorial Trust and prepared documents and made solicitations to major healthcare companies for contributions for Housing First project construction and services.

B. Policy Issues Given the unmet need for supportive housing for homeless residents with behavioral and/or physical health needs, the Lane County Poverty and Homelessness Board (PHB) has developed a housing initiative as a part of their strategic plan called “Operation 600”. Operation 600 will move chronically homeless adults, unaccompanied youth and families with children into supportive housing. The PHB has pledged to create 600 units by 2021 for residents most vulnerable to homelessness to include 200 Housing First Permanent Supportive Housing units, in the next several years. The PHB Supportive Housing and Shelter Committee chaired by Commissioner Farr are moving this effort forward. Jacob Fox the Executive Director of the Homes for Good and Steve Manela the Human Services Division Manager staff this committee.

Supportive housing is a community-based service model that provides housing integrated with support services such as: mental health services, primary health care, alcohol and drug services, case management and social services to help homeless individuals with behavioral health issues gain stability and live more productive lives.

C. Board Goals The Lane County Strategic Plan calls for addressing the communities need for affordable housing and addressing homelessness. Specifically, it calls for increasing housing options for residents to reduce the incidence of homelessness and increase affordability. Specific strategies including: convening, sponsoring, and implementing a collaborative multi-jurisdictional affordable housing action plan; identifying and implementing programs for supportive housing, short-term transitional housing, and long-term and permanent solutions to address homelessness; increasing access to prevention and treatment services and developing programs; and for developing policy focused on behavioral health, community health, and youth. It also calls for identifying and enhancing programs to address food security and access to healthy food.

D. Financial and/or Resource Considerations Lane County is being asked to transfer ownership to Homes for Good for one dollar for Lane County owned property adjacent to its Behavioral Health Building for the development of the 50 unit housing first building. Lane County H&HS is being asked to identify and commit resources for providing services to building residents. H&HS has proposed transferring existing HUD Continuum of Care Funds and State of Oregon EHA funds and billing for eligible Medicaid reimbursable services. Homes for Good has proposed using project based federal Section 8 certificates to subsidize most of the operating costs for the 50 units. However at this time additional operating funds are needed to be identified by Homes for Good and H&HS.

E. Health Implications Hospital emergency departments, inpatient services and jails are inundated with large numbers of chronically homeless individuals and families, many of whom have complex, unmet needs not effectively or efficiently dealt with in high-cost, acute care settings and jails. The PHB goal of creating additional housing first opportunities was to create a more responsive system that would proactively address housing needs, produce better outcomes, and free up emergency department resources for acute medical crises and also allow jails to address criminal behaviors rather than mental health challenges.

F. Analysis Lane County’s housing inventory for homeless persons currently does not provide enough bed capacity to shelter and house all of Lane County’s homeless population leaving 1133 people unsheltered on any given night. The poverty and homeless board has a goal of creating 600 units of supportive housing for homeless persons with behavioral health needs and 300 units of emergency shelter along with homeless prevention and diversion programs to bridge the current gap and reduce the number of unsheltered persons on any given night. The MLK Housing First Project is Permanent Supportive Housing (PSH) is a combination of housing and services designed for people with serious mental illnesses or other disabilities who need support to live stably in their communities. These services can include case management, substance abuse or mental health counseling, advocacy, and assistance in locating and maintaining employment. PSH is a proven solution for people who have experienced chronic homelessness as well as other people with disabilities, including people leaving institutional and restrictive settings. Housing First is an approach and framework for ending homelessness that is centered on the belief that everyone can achieve stability in permanent housing directly from homelessness and that stable housing is the foundation for pursuing other health and social services goals. The County has property, zoned (PL) public land, available adjacent to the County Behavioral Health Building that is available for the development of a 50- unit Housing First building where specialized housing is permitted as an outright use when it is operated by the public agency that owns the development site, as would be the case if the land were transferred to Homes for Good. The Lane Use analysis indicates that the site must be surveyed and partitioned in order to move forward. Attached is a site map drawing that shows the proposed foot print for the building in relation to the entire Lane County Behavioral Health site. If Lane County were to retain the land and Homes for Good were own the structure and operate the PSH project, a few major land use processes would be required to enable the proposed use: 1. Metro Plan Amendment approval to change the plan designation from Government & Education to a suitable corresponding designation (i.e. Medium Density Residential); 2. Zone Change approval to change the zoning designation from Public Land (PL) to a suitable designation (i.e. Medium Density Residential (MDR)).

G. Alternatives/Options 1. Delegate authority for the County Administrator to sign an intergovernmental agreement with Homes for Good to transfer property for the development of the Housing First building. 2. Retain ownership of the Housing First project site and proceed with Lane Use changes in order to make it available to Homes For Good for development and program operation. 3. Retain ownership of the site and develop an alternative finance strategy for County to own and operate the Housing First project. 4. None of the above.

IV. RECOMMENDATION Delegate authority for the County Administrator to sign an intergovernmental agreement with Homes for Good to transfer property for the development of the Housing First building.

V. TIMING/IMPLEMENTATION Following approval of this board order Homes for Good will proceed with hiring a surveyor and prepare the application for partition of the site. Homes for Good will proceed in working with the City of Eugene on the environmental sit review including the HUD Flood plan review. In addition to other resource development, in March 2019 Homes for Good will submit a 9% Low Income Housing Tax Credit Application to the State of Oregon for approval. In September 2019 all predevelopment activities should be completed to proceed with development and construction of the project.

VI. FOLLOW-UP The parties must complete all the conditions listed in the Intergovernmental Agreement (IGA) attached in order to proceed with the development of the project. The BCC will be notified when all the conditions in the IGA are met and will be updated on the progress of the project.

VII. ATTACHMENTS

Board Order Intergovernmental Agreement Draft Lane Use Analysis Site Map Supportive Apartment Community on MLK Blvd. Overview BEFORE THE BOARD OF COMMISSIONERS OF LANE COUNTY, OREGON

ORDER NO: IN THE MATTER OF APPROVING AN INTERGOVERNMENTAL AGREEMENT WITH HOMES FOR GOOD FOR THE HOUSING FIRST BUILDING SITE AND DELEGATING AUTHORITY TO THE COUNTY ADMINISTRATOR TO SIGN THE APPROVED AGREEMENT IN THE DEPARTMENT OF HEALTH & HUMAN SERVICES

WHEREAS, the Housing First model is effective for people that have long histories of homelessness with complex service needs and provides permanent stable housing as a first priority; and

WHEREAS, The Housing and Community Services Agency of Lane County, dba Homes for Good Housing Agency of Lane County (“Homes for Good”) has undertaken the development of a Housing First Apartment Community on Lane County property adjacent to the Lane County Behavioral Health Building; and

WHEREAS, Homes for Good is seeking funding from the Oregon Health Authority Health Systems Division that requires an option agreement to purchase the project property; and

WHEREAS, Lane County has the aforementioned property available that is zoned (PL) public land where specialized housing is permitted as an outright use when it is operated by the public agency that owns the development site;

NOW, THEREFORE, the Board of County Commissioners of Lane County ORDERS as follows:

1. An option to transfer ownership of Lane County property adjacent to Lane County Behavioral Health to Homes for Good for the price of one dollar once conditions laid out in the attached Intergovernmental Agreement are met is approved. 2. An Intergovernmental Agreement between Lane County and Homes for Good for the Housing First building site is approved in a final form to be negotiated by the parties. 3. The County Administrator is delegated authority to execute the resulting Intergovernmental Agreement.

ADOPTED this 10th day of July, 2018.

APPROVED AS TO FORM Jay Bozievich, Chair Date Lane County Board of Commissioners

LANE COUNTY OFFICE OF LEGAL COUNSEL INTERGOVERNMENTAL AGREEMENT FOR HOUSING FIRST BUILDING SITE

This Agreement is entered into by and between Lane County, a political subdivision of the State of Oregon (“County”), and The Housing And Community Services Agency of Lane County, (“HACSA”) dba Homes for Good Housing Agency of Lane County, (“Housing Agency”), referred to collectively in this Agreement as the Parties. County and Agency agree as follows: 1. RECITALS

1.1 ORS 190.010 and the Lane County Home Rule Charter provide that units of local government may enter into agreements for the performance of any or all functions and activities that a party to the agreements, its officers, or agents, have authority to perform. 1.2 The Parties recognize the need to address the issue of people in our community that have been chronically homeless. 1.3 The Parties recognize the chronically homeless use proportionally a much higher per capita share of community resources, including shelters, emergency services and have a higher rate of incarceration and recidivism. 1.4 Building on past successful collaborative efforts, the Lane County Board of Commissioners and the Housing Agency Board of Commissioners have determined that it is in their mutual interests to develop, operate and provide Housing First services in support of chronically homeless adjacent to the County Behavioral Health Building; histories of homelessness with complex service needs and recognize the need to provide permanent stable housing as the first priority. 1.5 The Housing Agency has undertaken the development of a Housing First Apartment Community on Martin Luther King Boulevard in Eugene Oregon to address this community need. 1.6 The Housing Agency wishes to obtain assistance from the Oregon Health Authority Health Systems Division to provide funding for units specifically set aside for individuals with severe and persistent mental illness. 1.7 The Parties desire to build on past successful collaborative efforts, the Lane County Board of Commissioners and the Housing Agency Board of Commissioners have determined that it is in their mutual interests to develop, operate and provide Housing First services in support of chronically homeless adjacent to the County Behavioral Health Building. 1.8 The County has property available adjacent to the County Behavioral Health Building that is available for the development of a 50-unit Housing First building that is zoned (PL) public land were specialized housing is permitted as an outright use when it is operated by the public agency that owns the development site. The property is described in Exhibit “A”.

Intergovernmental Agreement, rev. 01/01/2017 1 1.9 ORS 271.330(1) permits Lane County to transfer title to its real property to a governmental body if the property is used for a public purpose for not less than 20 years. 1.10 Housing And Community Services Agency of Lane County dba Homes for Good Housing Agency of Lane County is a governmental body as that term is defined in ORS 271.330(1).

2. SCOPE OF AGREEMENT.

2.1 County shall:

.1 The County will transfer ownership of the property in Exhibit A to Housing Agency for the price of one dollar for the development of a 50 unit Housing First Building once the conditions in Section 2.2 are met. .2 Commitment of all financing for the services for the project by County. County will be utilizing certain forms of financial assistance provided for by federal and state law, and by County policy. This assistance may include, but is not limited to, the use of Continuum of Care funding, Emergency Housing Account funding, billable Medicaid services under the Oregon Health Plan. County shall use its best efforts to determine availability of public financial assistance as expediently as possible. .3 Commitment of all financing for the operations by the parties. The Housing Agency and County will be utilizing certain forms of financial assistance provided by federal and state law, and the parties policies. The assistance may include Project Based Section 8 Certificates and Continuum of Care funding, and others. The parties shall use their best efforts to determine availability of public assistance as expediently as possible.

2.2 Housing Agency shall:

.1 Complete a Due Diligence Investigation: Housing Agency shall have the right to conduct an investigation of the Property to determine, among other things, its suitability for use as low income housing. This Due Diligence Investigation, which is at Housing Agency’s sole cost and expense, may include, but is not necessarily limited to, a physical inspection of the Property, including, without limitation, soil, geological, environmental, structural, mechanical, engineering, title review, and any other assessments and tests the Housing Agency deems necessary or desirable. Such Due Diligence Investigation may also include investigation of financial, legal and political matters, which may affect the Housing Agency’s ability to develop the property as it proposes. .2 Complete an Environmental Review: The Housing Agency shall have no obligation to purchase the Property, and no transfer of title to Housing Agency may occur,

Intergovernmental Agreement, rev. 01/01/2017 2 unless and until Housing Agency has provided County written notification that: (1) it has completed a federally required environmental review and its request for release of federal funds has been approved and, subject to any other Contingencies in this Agreement, (a) the purchase may proceed, or (b) the purchase may proceed only if certain conditions to address issues in the environmental review shall be satisfied before or after the purchase of the property; or (2) it has determined that the purchase is exempt from federal environmental review and a request for release of funds is not required. .3 Complete a Partition of the Property: Housing Agency shall arrange for a surveyor to develop plot map for legal partition of property. County shall review and approve the partition. .4 Commitment of all financing for the development of the entire project by Housing Agency: Housing Agency intends to finance the purchase of the property and development of the housing by utilizing certain forms of financial assistance provided for by federal and state law, and by Housing Agency policy. This assistance may include, but is not limited to, the use of tax-exempt mortgage financing, federal low income housing tax credits, exemptions from real and personal property taxation, Community Development Block Grant, HOME Investment Partnerships Program, payment of building permit fees and system development charges, and low interest loans. Housing Agency shall use its best efforts to determine the availability of public financial assistance as expediently as possible. .5 Commitment of all financing for the services for the project by County. County will be utilizing certain forms of financial assistance provided for by federal and state law, and by County policy. This assistance may include, but is not limited to, the use of Continuum of Care funding, Emergency Housing Account funding, billable Medicaid services under the Oregon Health Plan. County shall use its best efforts to determine availability of public financial assistance as expediently as possible. .6 Commitment of all financing for the operations by the parties. Housing Agency and County will be utilizing certain forms of financial assistance provided by federal and state law, and the parties policies. The assistance may include Project Based Section 8 Certificates and Continuum of Care funding, and others. The parties shall use their best efforts to determine availability of public assistance as expediently as possible.

3. DOCUMENTS FORMING THE AGREEMENT

3.1 The Agreement. The Agreement consists of this document and all exhibits listed below, which are incorporated into this Agreement. 3.2 Exhibits. With this document, the following exhibits are incorporated into the Agreement: Exhibit A: Property description.

Intergovernmental Agreement, rev. 01/01/2017 3 4. CONSIDERATION AND PAYMENT

4.1 In consideration for Housing Agency's performance under this Agreement, County shall: .1 The County will transfer ownership of the property in Exhibit A to Homes Agency for the price of one dollar for the development of a 50 unit Housing First Building.

4.2 In consideration for County's performance under this Agreement, Housing Agency shall: .1 Develop, build and operate a 50 unit Housing First Apartment facility on the property. 5. EFFECTIVE DATE AND DURATION

5.1 Effective Date. Upon the signature of all parties, this Agreement is effective or July 19, 2018 whichever is sooner. 5.2 Duration. Unless extended or terminated earlier in accordance with its terms, this Agreement will terminate two (2) years from July 10, 2018. However, such expiration shall not extinguish or prejudice either party's right to enforce this agreement with respect to any breach or default in performance which has not been cured.

6. AUTHORIZED REPRESENTATIVES. Each of the parties designates the following individuals as their authorized representatives for administration of this Agreement. Any notice required under this Agreement must be addressed to the authorized representative stated here. A party may designate a new authorized representative by written notice to the other. 6.1 County's Authorized Representative. Steve Manela, Lane County Health & Human Services, [email protected] , 541-682-3797 6.2 Housing Agency's Authorized Representative. Jacob Fox, Homes for Good Housing Agency, [email protected], 541-682-2527 7. INDEMNIFICATION. To the extent permitted by the Oregon Constitution, and to the extent permitted by the Oregon Tort Claims Act, and to the extent otherwise provided for in private contracts of insurance, each party agrees to indemnify, defend, and hold the other and its officers, employees, or agents, harmless from all damages, losses and expenses, including but not limited to attorney fees, and to defend all claims, proceedings, lawsuits, and judgments arising out of or resulting from the indemnifying party’s negligence in the performance of or failure to perform under this Agreement. No party to this Agreement will be required to indemnify or defend the other party for any liability arising solely out of wrongful acts of another party, or that party's own officers, employees, or agents.

Intergovernmental Agreement, rev. 01/01/2017 4 8. MODIFICATION AND TERMINATION. No modification or amendment to this Agreement will bind either party unless in writing and signed by both parties. The parties may jointly agree to terminate this Agreement at any time by written agreement.

9. MISCELLANEOUS PROVISIONS 9.1 Disputes. The parties are required to exert every effort to cooperatively resolve any disagreements that may arise under this Agreement. This may be done at any management level, including at a level higher than the persons directly responsible for administration of the Agreement. In the event that the parties alone are unable to resolve any conflict under this Agreement, they are encouraged to resolve their differences through mediation or arbitration, using such process as they may choose at the time. 9.2 Waiver. Failure of either party to enforce any provision of the Agreement does not constitute a waiver or relinquishment by the party of the right to such performance in the future nor of the right to enforce that or any other provision of this Agreement. 9.3 Severability. If any provision of this Agreement is declared by a court to be illegal or in conflict with any law, the validity of the remaining terms and provisions are not affected; and the rights and obligations of the parties are to be construed and enforced as if the Agreement did not contain the particular provision held to be invalid. 9.4 Time is of the Essence. The parties agree that time is of the essence with respect to all provisions of this Agreement. 9.5 No Third-Party Beneficiaries. County and Housing Agency are the only parties to this Agreement and are the only parties entitled to enforce its terms. Nothing in this Agreement gives or may be construed to give or provide any benefit or right to third persons, either directly or indirectly, that is greater than the rights and benefits enjoyed by the general public, unless that party is identified by name in this Agreement. 9.6 Headings. The headings and captions in this Agreement are for reference and identification purposes only and may not be used to construe the meaning or to interpret the Agreement. 9.7 Force Majeure. Neither party will be held responsible for delay or default due to Force Majeure acts, events or occurrences unless they could have been avoided by the exercise of reasonable care, prudence, foresight, and diligence by that party. 9.8 Multiple Counterparts. This Agreement and any subsequent amendments may be executed in several counterparts, facsimile or otherwise, all of which when taken together will constitute one agreement binding on all parties, notwithstanding that all parties are not signatories to the same counterpart. Each copy of this Agreement and any amendments so executed will constitute an original. 9.9 Merger. This Agreement contains the entire agreement of County and Housing Agency with respect to the subject matter of this Agreement, and supersedes all prior negotiations, agreements and understandings.

Intergovernmental Agreement, rev. 01/01/2017 5 EACH PARTY, BY EXECUTION OF THIS AGREEMENT, HEREBY ACKNOWLEDGES THAT IT HAS READ THIS AGREEMENT, UNDERSTANDS IT, AND AGREES TO BE BOUND BY ITS TERMS AND CONDITIONS.

HOUSING AGENCY, DBA: COUNTY: HOMES FOR GOOD OF LANE COUNTY LANE COUNTY, OREGON

By: By:

Title: Title:

Date: Date:

Homes for Good Housing Agency Lane County, Public Service Building 177 Day Island Road 125 E. 8th Avenue Eugene, Oregon, 97401 Eugene, Oregon 97401

Intergovernmental Agreement, rev. 01/01/2017 6

Memorandum

To: Kristen Karle, SVDP Jacob Fox, HACSA

From: Colin McArthur, AICP

Date: December 12, 2016

Subject: SVDP/HACSA Housing First Land Use Feasibility Review

OVERVIEW

The purpose of this review is to inform the St. Vincent de Paul Society of Lane County (SVDP) and the Housing and Community Services Agency of Lane County (HACSA) in their planning for the development of a 54 dwelling unit, Housing First Project. The review considers current conditions and planned conditions to assess whether development can fulfill applicable requirements established by the City of Eugene. SVSP and HACSA have particular interest in identifying factors affecting overall feasibility, timing, and cost of the project. The feasibility review results in the identification of land use requirements that potentially affect timing and cost and includes recommendations for resolving those requirements.

BACKGROUND

Existing Conditions The proposed site is identified on Assessor’s Map 17-03-29-40 as Tax Lot 00400. The site is a 13.42-acre parcel within Eugene and is designated Government & Education by the Eugene- Springfield Metro Plan and Public Land (PL) by the Eugene Zoning Ordinance. A Water Resource Conservation Overlay (/WR) also applies to a portion of the site. Additionally, the entire parcel lies within the FEMA designated 100-year Floodplain (Zone AE, 1% Annual Chance). The parcel is the site of the Lane County Behavioral Health facility, which occupies the eastern half of the site. The remainder of the site is vacant and has historically been used for temporary University of Oregon football game day parking and tailgating; and, as a temporary homeless shelter.

The site is bounded by Martin Luther King Jr. Boulevard to the south (a Minor Arterial), the Q Street Channel to the north and west, and Scout Access Road to the east (a local street). Scout Access Road currently provides site access to the Lane County Behavioral Health facility and the Oregon Trail Council Boy Scouts of America facility, located to the east of the site. The City of Eugene’s 2035 Transportation System Plan identifies Coburg Road, Country Club Road, and Martin Luther King Jr Boulevard as near capacity and recommends further monitoring, including the intersection of Martin Luther King Jr Boulevard and Leo Harris Parkway, immediately west of the site.

Cameron McCarthy 1 SVDP/HACSA Housing First Land Use Feasibility Review December 12, 2016

Given the subject site’s location in an urbanized, developed area and the relatively recent development of the Lane County Behavioral Health complex, and no known capacity and availability issues, it is assumed that utility lines in the vicinity of the site (water, wastewater, stormwater, power) are available and of sufficient capacity to accommodate proposed development.

Environmental The proposed site is within a water resource protection area, with an associated Water Resource Conservation Overlay (/WR) designation. According to the Eugene Code, the purpose of the /WR overlay zone is to protect significant riparian, wetlands, and other water- related wildlife habitat areas included in the City’s adopted Goal 5 inventory. Development occurring within the /WR Conservation Overlay will require adherence to conservation setback requirements, measured from the top of the high bank or ordinary high water mark, specific to various Stream and Wetland Classifications.

According to Eugene’s Goal 5 Water Resources Conservation Plan, the site contain two Goal 5 Resources associated with the Q Street Channel. Site Alton Baker (Riparian) (E42 C-1) is a designated riparian corridor and is classified as a Category C Stream. Site Alton Baker wetland (WKZ-14B1) is a designated wetland is classified as a Category A Wetland. EC 9.4920 (1)(c)(2) specifies a Conservation Setback for Category C Streams of 40 feet from the tip of high bank measurement, or 50 feet from the ordinary high water mark. EC 9.4920(2) specifies a 50 feet setback from Category A Wetland boundaries. Both setbacks apply to the subject site. There are no significant Wildlife Habitat areas identified on or near the site.

The entire site is located within the FEMA designated 100-year Floodplain (Zone AE, 1% Annual Chance) with a base flood elevation of approximately 418.5 feet. According to the Eugene Code and Eugene Public Improvement Design Standards Manual, a Floodplain Development Permit is required prior to any development occurring within the regulatory floodplain. Current floodplain regulations specify that buildings be elevated one foot above the base flood elevation.

Floodplain regulations will be revised in the future based on a lawsuit at the federal level related to the Endangered Species Act and protection of salmon habitat. The current timeline calls for cities in Oregon to adopt new regulations by April 2018; however, depending on how the process at the state and federal level unfolds, it may occur later. It is not yet known exactly what the changes will entail, but it appears that it may become more difficult to build in the floodplain.

DEVELOPMENT REQUIREMENTS

Building Program The project, as initially envisioned, involves a single four (4) story building with three (3) residential floors, above one (1) floor of administrative offices and health-oriented services. Original projections estimate 50 units at approximately 350 square feet, with a small living room on each floor and a larger community space on the top floor. The total gross area estimated for the project is 40,580 square feet; of which, 32,580 square feet is residential, and 8,145 square feet is administrative and residential service area. The estimated timeline for the having the facility operational is June 2019.

Cameron McCarthy 2 SVDP/HACSA Housing First Land Use Feasibility Review December 12, 2016

Funding The only primary source of funding available for the project is the Federal Low Income Housing Tax Credit (LIHTC). Funded projects receive an allocation in tax credits per year over a 10-year period. Since non-profit housing agencies such as HACSA have federal tax liability, they must partner with an investor on the project in order to use the tax credits. Typically, a partnership is formed as a limited liability corporation (LLC) for profit entity.

Zoning and Development Standards Assuming the existing PL zoning is retained, the following base zone, overlay zone, and specific use standards apply to proposed development and inform the preliminary stages of design (EC 9.4900, /WR Water Resource Conservation Overlay Zone; EC 9.5500 Multiple- Family Development Standards; and EC Chapter 7, Public Improvement Standards).

▪ Lot area: 6,000 sq. ft. for all lots (EC (9.2686), 50 ft. minimum width for corner lots. ▪ Minimum street frontage: Lots: 50 ft. for corner lots (EC 9.2686). ▪ Maximum lot coverage and density: None. ▪ Minimum setbacks for primary structures: 10 ft. for front and interior yard setbacks (EC 9.2684). ▪ Maximum building height: None for Main or Accessory Buildings (EC 9.2684). ▪ Landscaping and open space: None (EC 9.2644) ▪ Parking: Design and location of internal circulation and parking areas, including entrances and exits shall consider the capacity of adjacent streets (EC 9.2684(2)(a). ▪ Streets: All access connections shall be designed and constructed in accordance with Design Standards and Guidelines for Eugene Streets, Bikeways, and Accessways beginning at EC 7.408. The EC specifies that each development site is entitled to at least one (1) access connection (EC 7.410). If a parcel has frontage on two or more streets of different street classifications, the access connections shall access the street with the lowest classification (EC 7.420 (1)(c). However, the EC allows one or more development sites to share an access connection; provided the City Engineer approves of the shared access connection finding that it will result in safe and efficient ingress and egress (EC 7.410 (6)). The property owners of the shared connection must also execute a recordable agreement providing for the shared use of the access connection (EC 7.410 (8)). The EC specifies that access connections to local streets shall have the connection begin no less than 20 feet from the end of the radius of the curb, or 20 feet from the property corner if there is no curb (EC 7.420(3)(c). Due to current capacity constraints with Martin Luther King Jr Boulevard and the proximity of the site to the Martin Luther King Jr Boulevard/Leo Harris Parkway intersection, it is assumed that the City would not allow a new access connection from the development site to Martin Luther King Jr. Boulevard. Site access may be taken from Scout Access Road (a local road), consistent with access guidelines, or shared with the Lane County Behavior Health facility. ▪ Stormwater: Proposed development must demonstrate adequate capacity of the existing and/or proposed stormwater management systems, consistent with the policies set forth in the Stormwater Management Manual, City’s Stormwater Basin Master Plans, Standard Specifications and Drawings, and Eugene Code Chapter 6 and 7. A stormwater study is required for all stormwater systems that carry runoff from more than one acre of land. It is assumed that stormwater systems in the vicinity of the site are of sufficient capacity to accommodate proposed development. ▪ Wastewater: Sanitary sewers to serve each new development must connect to existing mains. Proposed development must be designed and constructed in accordance with the City’s Wastewater Master Plan, Standard Specifications, and Eugene Code Chapters 6 and 7. Wastewater service to the site shall be extended in conformance with the approved wastewater basin master

Cameron McCarthy 3 SVDP/HACSA Housing First Land Use Feasibility Review December 12, 2016

plans, and public mains shall be extended at minimum slope unless an engineering study demonstrates the basin can adequately be served by steeper grades or shallower mains. Wastewater mains shall also be extended to the limits of the development served for the purpose of future extension. It is assumed that wastewater systems in the vicinity of the site are of sufficient capacity to accommodate proposed development, and no future extension requirements apply to the site.

Land Use Processes As described in the funding section, and given that the developer must be a for profit, land use feasibility was evaluated under three options:

▪ Option 1. The facility is owned by a for profit limited partnership, which leases land from HACSA. The facility is operated by a nonprofit (i.e. SVDP). ▪ Option 2. The facility is owned by a for profit limited partnership, which leases land from HACSA. The facility is operated by HACSA. ▪ Option 3. The facility and land are owned by a for profit limited partnership. The facility is operated by a nonprofit or HACSA.

The proposed use (specialized housing with accessory support services) is not explicitly listed in EC 9.2682 Public Land Zone Uses and Permit Requirements. However, the EC does provide direction on permitted Public or Semi-Public uses according to operation and ownership structures. According to EC 9.2682(1)(b) a Public Use is permitted outright the PL public land zone, when the use is:

“Operated by the public agency that owns the development site, except the intensification of uses that require a site review or conditional use permit according to EC 9.2683 Special Use Limitations. Examples include government offices, libraries, park and recreation facilities, neighborhood and community centers, post offices, fire stations, pump stations, electrical substations, school district offices, schools, reservoirs, and specialized housing. (Refer to EC 9.2683 Special Use Limitations.)” (emphasis added)

The proposed project is consistent with the intent of specialized housing. Operation of the facility and ownership of the land are the other determinants in establishing consistency with this code provision.

The subject property is presently owned by Lane County. HACSA was created by the Lane County Board of Commissioners in 1949 as the Lane County Housing Authority and was renamed HACSA in 1977 following a reorganization. HACSA is independent agency from Lane County, although the Agency’s seven person Board of Commissioners is comprised of five Lane County commissioners and two appointed commissioners.

Because HACSA is an independent agency, and because they do not own the subject development site, the proposed project (specialized housing) would not be considered an outright permitted use in the PL zone. Therefore, none of the above options are currently viable. However, HACSA can pursue initial actions that enable development of the project under Option 2. These include:

▪ Joint Ownership: Lane County listing HACSA as a co-owner of the subject property (Tax Lot 00400). or

Cameron McCarthy 4 SVDP/HACSA Housing First Land Use Feasibility Review December 12, 2016

▪ Single Ownership: Partition the subject property into two separate tax lots and transfer ownership of the lot to be developed as Housing First to HACSA.

Based on a literal interpretation of EC 9.2682(1)(b), only Option 2 is permitted within the current PL zone designation contingent upon HACSA obtaining ownership of the property to be developed. There are no restrictions on the lease of the facility to another entity so long as the land remains owned by the public agency and is operated by the same public agency (i.e. HACSA).

The PL zone does not contain any allowances for permitting specialized housing as a special use or a conditional use. Therefore, Option 2 is the only viable development scenario within the current PL zone designation. Option 1 and Option 3 are not feasible under the current zoning. Correspondence with City staff planning during the course of the review confirmed this finding.

Should SVDP/HACSA wish to proceed with development and operation/ownership of the facility in accordance with Option 1 or Option 3, several land use processes will be required to enable the proposed use: ▪ Partition approval to create a separate tax lot and development site and to transfer ownership to HACSA; ▪ Metro Plan Amendment approval to change the plan designation from Government & Education to a suitable corresponding designation (i.e. Medium Density Residential); ▪ Zone Change approval to change the zoning designation from Public Land (PL) to a suitable designation (i.e. Medium Density Residential (MDR)).

Partition applications are reviewed in accordance with Type II procedures with a decision by the planning director; Zone Change applications are reviewed in accordance with Type III procedures with a decision by the hearings official; and, Metro Plan amendments are reviewed in accordance with Type IV procedures with a decision by the City Council (CC) following a recommendation by the Planning Commission (PC). All applications can be processed concurrently and elevated to the highest level (Type IV). Correspondence with City planning staff revealed a strong likelihood of support for the project at the PC/CC levels. The project is expected to comply with all applicable approval criteria, or can be designed for compliance. Thus, approval of the project through the process outlined above appears feasible. The timeline for approval of Partition, Zone Change, and Plan Amendment application is approximately 6-12 months, not including preparation time. Estimated City review fees are $14,840.35, not including planning services.

SUMMARY

The findings from the land use feasibility review indicate that, to be permitted outright within the PL zone, the project will require a development scenario in which the land is owned by a public agency and operated by the same agency (i.e. HACSA). The facility itself may be leased by anther entity. There are significant advantages to the project being permitted outright as specialized housing in the PL zone, including the avoidance of land use processes that expend

Cameron McCarthy 5 SVDP/HACSA Housing First Land Use Feasibility Review December 12, 2016

time and cost and can be challenged or appealed. Therefore, the following option is recommended: ▪ The facility is owned by a for profit limited partnership, which leases land from the HACSA. The facility is operated by HACSA.

Alternatively, the project can be realized under other development scenarios using available land use processes. The primary tradeoff is that these processes will consume time, add cost, and are subject to extensive public scrutiny, hearings, and appeal provisions.

EXHIBITS

▪ Exhibit A RLID Property Report ▪ Exhibit B Goal 5 Map & Tables ▪ Exhibit C FEMA Map

Cameron McCarthy 6 SVDP/HACSA Housing First Land Use Feasibility Review December 12, 2016

EXHIBIT A

RLID Property Report

Cameron McCarthy Exhibit A

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Detailed Property Report

Site Address 2345 MARTIN LUTHER KING JR BLVD Eugene, OR 97401 Property Owner 1 Map & Taxlot#17-03-29-40-00400 LANE COUNTY SIC N/A LANE COUNTY COURTHOUSE Tax Account# 0248920 a EUGENE, OR 97401 a Additional site address(es) are associated with this tax account See Owner/Taxpayer section for additional owners

Tax account acreage 12.78 Mapped taxlot acreage† 13.42

† Mapped Taxlot Acreage is the estimated size of a taxlot as derived from the county GIS taxlot layer, and is not to be used for legal purposes.

Map & Taxlot # 17-03-29-40-00400

Business Information

RLID does not contain any business data for this address

Improvements

Photos & Sketches for Tax Account

Building 1: C02 Office Building

Year Built 2001 Sq Ft 40792 Effective Year Built 2001 Fireproof Steel Sq Ft 0 Grade 5 Reinforced Concrete Sq Ft 40792 Floor Number 1 Fire Resistant Sq Ft 0 Wall Height Ft 12 Wood Joist Sq Ft 0 Occupancy Number 344 Pole Frame Sq Ft 0 Pre-engineered Steel Sq Ft 0

Commercial Appraisal Card 1703294000400

Site Address Information

2345 MARTIN LUTHER KING JR BLVD EUGENE, OR 97401

House # 2345 Suffix N/A Pre-directional N/A Street Name MARTIN LUTHER KING JR Street Type BLVD Unit type / # N/A Mail City EUGENE State OR Zip Code 97401 Zip + 4 N/A Create Date Mar 01, 2007 Update Date May 13, 2016 Produced by Cameron McCarthy Gilbert & Scheibe on 7/27/2016 at 11:48AM using RLID (www.rlid.org) Page 2 of 5

Land Use 6729 Other Protective Functions & Their Related Activities USPS Carrier Route N/A

Additional site address(es) attached to this tax account 2411 MARTIN LUTHER KING JR BLVD

General Taxlot Characteristics

Geographic Coordinates Taxlot Characteristics Incorporated City Limits EUGENE X 4244994 Y 882981 (State Plane X,Y) Urban Growth Boundary Eugene Latitude 44.0609 Longitude -123.0729 Year Annexed 1960 Annexation # N/A Zoning Approximate Taxlot Acreage 13.42 Approx Taxlot Sq Footage 584,575 Zoning Jurisdiction Eugene Eugene 2010 Census Tract 3102 Parent Zone PL PUBLIC LAND 2010 Census Block Group 3 Overlay WR Water Resource Plan Designation Metro Plan Map Eugene Neighborhood Harlow Neighbors Metro Area Nodal Dev Area No Land Use Historic Property Name N/A General Land Use City Historic Landmark? No National Historical Register? No Code Description G Government

Detailed Land Use Code Description 6749 Other Correctional Institutions

Service Providers

Fire Protection Provider Eugene Fire & EMS Department Ambulance Provider Eugene Fire & EMS Ambulance District WC Ambulance Service Area West/Central LTD Service Area? Yes LTD Ride Source? Yes Soil Water Cons. Dist/Zone UPPER WILLAMETTE / data not available Emerald People's Utility District N

Environmental Data

FEMA Flood Hazard Zone Code Description AE Areas of 100-year flood, base flood elevations determined.

FIRM Map Number 41039C1137F Community Number 410122 Post-FIRM Date 09/29/1986 Panel Printed? Yes

Soils Soil Map Unit# Soil Type Description % of Taxlot Ag Class Hydric % 97 Newberg-Urban land complex 92% 2 0 W Water 8% 8 0

Schools

Code Name School District 4J EUGENE Elementary School 4157 Bertha Holt Middle School 524 Monroe High School 538 Sheldon

Political Districts

Election Precinct 1455 State Representative District 13 City Council Ward E4 State Representative Nancy Nathanson City Councilor George A. Poling State Senate District 7 County Commissioner District 3 (Eugene-South) State Senator Chris Edwards County Commissioner Pete Sorenson EWEB Commissioner John Brown LCC Board Zone 5

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Liens

None

Building Permits

Eugene Building Permits

Log Number Project Description 02-05585-01 New commercial building on Lane County Land 02-05596-01 Erosion prevention for new commercial building on Lane County land.

Land Use Applications

Eugene Land Use Applications

Log Number Project Description M-72-019 Minor Partition CU-72-013 Conditional Use MA-97-001 Metro Plan Amendment Z-05-008 Zone Change

Eugene Land Use Application Search Page

Petitions

None

Tax Statements (current and previous tax years)

ACCOUNT#: 0248920 View tax statement(s) for: 2015 2014

Owner/Taxpayer

Owners No. Owner Address City/State/Zip 1 LANE COUNTY LANE COUNTY COURTHOUSE EUGENE, OR 97401 2 COUNTY OWNED LANDS DEPT LANE COUNTY COURTHOUSE EUGENE, OR 97401

Taxpayer Party Name Address City/State/Zip LANE COUNTY ATTN: JEFF TURK EUGENE, OR 97408 3050 N DELTA HWY