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Mackenzie Valley group and county outline 20-ADU plan for fire-affected properties, limited by state two‑acre rule

5914492 · October 6, 2025
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Summary

Mackenzie Valley Long Term Recovery Group described a plan to place 20 accessory dwelling units (ADUs) on private two‑acre parcels for households at or below 80% area median income, using federal CDBG-DR funds administered by Lane County; timeline aims for site work this fall and units within a year of approval.

Mackenzie Valley Long Term Recovery Group and Lane County staff described a program to bring rental housing back quickly by placing accessory dwelling units on private properties in the fire-affected McKenzie Valley.

Betsy Hunter, housing and real estate development manager for the Mackenzie Valley Long Term Recovery Group, told the board the proposal envisions 20 ADUs on 20 separate private parcels. Under the current program rules cited in the presentation, eligible properties must be at least two acres; ADUs may be up to 900 square feet. The program would target households at or below 80% of area median income; staff used an example of roughly $66,000 for a three-person family to illustrate the income cutoff.

Hunter said early outreach produced about three dozen property owners expressing interest and that program staff have screened owners for septic capacity, electrical capacity, insurance eligibility and zoning to queue projects for faster processing once an administrative package is approved.

Matt McCray, Lane County staff, said the ADU work will be managed using CDBG-DR (Community Development Block Grant Disaster Recovery) dollars allocated to the county, specifically referencing the county’s $17.4 million affordable housing development allocation as the funding source discussed earlier in the session. Hunter said the project team hopes to present an approval package to Oregon Housing and Community Services in September or October, begin procurement for materials and labor this fall, start site work early next year and complete the 20 units within about a year of full project launch — contingent on approvals and procurement timelines.

Commissioners pressed staff about the two-acre eligibility limit, and McCray and Hunter confirmed the restriction reflects a state-imposed limitation on the use of these funds in this program. Commissioners said relaxing that minimum would increase the pool of eligible parcels; Hunter said moving from two acres to one acre would expand interest and that those changes would require a change in state policy or an approved exemption.

Several commissioners also noted that ADUs are often costly per square foot and that conversions of existing structures (garages, portions of houses) can be less expensive than building a separate structure; Hunter and county staff acknowledged those tradeoffs and said the initial ADU proposal is one step meant to be replicable and to inform later program design.

No formal board votes were taken on the ADU proposal during the meeting; staff asked for direction and said they will return with procurement-ready documents once OHS completes its review.

Background: staff said the ADU proposal is being developed in partnership with Mackenzie Community Land Trust and other local recovery organizations as part of broader recovery investments in the McKenzie Valley.