Madras Planning Commission members spent a March work session reviewing a draft update to the city's 2018 housing action plan and asked staff and consultants to return with a more detailed, item-by-item discussion before the commission makes a recommendation to the City Council.

The work session was led by consultants from EcoNorthwest, who summarized a market analysis, stakeholder interviews and a financial feasibility review intended to shape a refreshed set of actions the city could take to support housing production at multiple income levels. Scott Goodman, project manager for EcoNorthwest, opened by saying, "So where I wanted to start off with this is, making a point about what excellent work Madras has done already in advancing housing solutions." Becky Hewitt, a project director at EcoNorthwest, added that her team's role is to "help communities around Oregon pick the actions that are gonna best help them, advance their housing goals."

Why it matters: EcoNorthwest told the commission that roughly 40% of Madras households are cost-burdened (paying 30% or more of income for housing), and that the city's mix of relatively low land costs and regionally comparable labor and material costs makes some common cost-saving tools (like density alone) less effective. The consultants said smaller-unit product types and manufactured housing may deliver affordability more readily in Madras' market but require careful calibration of incentives and financing.

Key findings and discussion points
- Market profile: EcoNorthwest reported that smaller housing types (apartments, townhouses, cottage housing or small detached homes) generally price in a range affordable to households earning about 80% to 120% of area median income (AMI). The consultants noted that, for a household of four, that range was "somewhere in the vicinity of, like, 65 to 90 something thousand dollars" (approximate estimate provided during the presentation). The commission heard that because land is inexpensive in Madras but labor and materials are not much lower than the region, developers face a narrow margin to produce lower-cost units.
- Incentives and finance: Staff reminded the commission that the city received an $80,000 grant from the Oregon Department of Land Conservation and Development (DLCD) in February 2023 to support the homelessness report and the housing plan update. Discussion of the housing Urban Renewal District (URD) and System Development Charge (SDC) reductions recurred as the primary local tools the city currently controls to create subsidies; commissioners asked staff to clarify which incentives come from city revenue versus state or grant programs and how those incentives have performed.
- Developer and financing constraints: EcoNorthwest summarized stakeholder feedback that small local developers welcome the city's actions but that larger regional production builders typically need higher volume to operate profitably, limiting their interest in Madras-scale projects. The consultants also described the financing challenges for affordable housing in small markets and how developers sometimes combine or scale projects to meet financing program thresholds.
- Homeownership and demand-side supports: Commissioners asked about demand-side tools such as down-payment assistance, first-time homebuyer programs and job-pay support. Staff and consultants said the city's direct incentives are mostly targeted to developers (subsidies, fee waivers) and that regional partners and state programs (including Oregon Housing and Community Services and HUD-backed programs) provide many buyer-side tools; staff pointed to NeighborImpact and Housing Works as regional providers of counseling and matched savings programs.

What the commission asked staff to do
- Convene one more targeted work session that walks through the specific recommended code changes and the incentive mechanics (eligibility, timing and likely sources) so commissioners can comfortably make a recommendation when the draft plan is presented for a formal vote.
- Provide a clearer, prioritized list of incentives showing which actions give the most quantifiable "bang for the buck" and how they have performed in Madras' recent projects.
- Circulate the finalized slides and the draft housing action plan (when available) in advance of the next work session.

Actions and immediate next steps
This meeting was a discussion-only work session; no motions or votes were taken. EcoNorthwest and city staff will prepare more detailed materials (including a draft of the updated housing action plan and line-by-line code-change proposals) and return to the Planning Commission for an in-depth work session before the commission is asked to make a formal recommendation to City Council.

Context and background
The consultants and staff repeatedly framed the update as an evolution of the 2018 housing action plan, not a wholesale restart. Scott Goodman told commissioners that Madras has "already set yourself up with a really good framework and foundation" and that the update is meant to recalibrate tools to current market realities. Staff noted the plan update and subsequent code amendments will be used to guide future development agreements and any incentives the city offers.

Ending
Commissioners agreed that a follow-up work session focused on the specific recommended code changes and the incentive mechanics would be appropriate before any formal action. EcoNorthwest and city staff will coordinate dates and circulate the draft materials in advance of that session.