Lane County holds public hearing on $17.5 million in federal housing funds for Holiday Farm fire survivors

Lane County officials on Feb. 11 held a public hearing in Harris Hall to gather comment on proposed uses of $17,483,497 in Oregon Housing and Community Services (OHCS) Community Development Block Grant—Disaster Recovery (CDBG‑DR) funds intended to serve renters displaced by the 2020 Holiday Farm Fire.

Disaster recovery manager Matt McCray told the Board of County Commissioners that the $17,483,497 is Lane County’s portion of a larger $422,000,000 CDBG‑DR allocation to Oregon. "These funds are not yet available to Lane County," McCray said, adding that the county is working with OHCS and local partners to finalize contracts and planning before dollars are released.

McCray described three proposed development types and draft dollar allocations: $5,000,000 for accessory dwelling units (ADUs), $5,000,000 for single‑family cottage‑cluster developments, and $5,000,000 for a manufactured/modular home park. He said the remaining roughly $2,500,000 would be held for administration and contingency, bringing the Lane County total to about $17.48 million.

Why it matters: the funds are prioritized for low‑ and moderate‑income households and given preference to Holiday Farm wildfire survivors. If implemented, the projects would create affordable rental or homeownership opportunities upriver in and adjacent to the Mackenzie River Valley, including Blue River, where redevelopment and rezoning work has been under way. McCray emphasized that federal rules attach environmental, accessibility and long‑term affordability requirements to CDBG‑DR dollars, and that the county is trying to complete preparatory work before funds arrive so construction can move faster once contracts are executed.

Key proposal details and constraints

- ADUs: McCray said the ADU program would target building ADUs on private properties within or near the Holiday Farm Fire footprint and on properties owned by homeowners willing to add an ADU. Lane County’s code currently limits ADUs to 900 square feet, he said. The county would contract with property owners requiring that ADUs be rented to low‑ and moderate‑income households for a minimum of 10 years, with a preference for wildfire survivors. McCray added, "we're proposing to allocate $5,000,000 of the CDBG‑DR funds for this use." He also said Lane County has a rule preventing ADUs from being converted to short‑term rentals while under current program constraints.

- Cottage clusters: The county proposes $5,000,000 for clusters of small single‑family homes on a single lot (sometimes called cottage clusters). McCray said where these are allowable by zoning—Blue River is one example—units would be affordable for at least 20 years and at least half would be reserved for low‑ and moderate‑income households. Environmental assessments would be required before construction.

- Manufactured/modular home park: The proposed $5,000,000 set‑aside for a manufactured or modular home park would require finding and rezoning a suitable site; McCray said no properly zoned, vacant sites currently exist upriver. He told the board the county is studying that option and consulting with Homes for Good and others about feasibility and lessons learned from recent ribbon‑cutting projects.

Environmental, land‑use and implementation notes

McCray said environmental assessments will be completed on proposed sites before any work begins and mitigation plans will be implemented as required by federal rules. He noted that federal stormwater and related environmental requirements will apply to on‑site infiltration and runoff control. County staff and partner organizations are already conducting property scans, land‑use compatibility checks and environmental reconnaissance using nonfederal funds where possible so federal requirements do not delay construction once funds are available.

McCray and other staff stressed that CDBG‑DR dollars are administratively complex and that the county intends to work with development partners or intermediaries to deliver procurement, compliance and property‑management services so homeowners and small contractors can participate. Procurement manager Sean Hubbell was specifically thanked for helping move planning forward.

Public testimony and local partners

Three residents testified at the hearing in Harris Hall. Steve Severn of Old Mackenzie Highway questioned cost overruns and the use of outside contractors on the Lazydays/Homes for Good project and urged greater use of local contractors. Margaret Bealhard of Blue River asked whether ADUs can be plumbed into existing septic systems and raised concerns about short‑term rentals reducing local housing stock. Brandy Crawford Ferguson, interim executive director of the McKenzie Community Land Trust, described the land trust’s Rose Street neighborhood project in downtown Blue River—six homes in development—and said the CLT is seeking land acquisition and construction funding to ensure homes remain affordable for full‑time residents.

McCray clarified that ADU construction funding would go to build the ADU on the homeowner’s property, that the homeowner would own the ADU, and that the county would place a contractual affordability requirement for 10 years. He also reiterated the county code preventing ADUs from being used as short‑term rentals while subject to the program’s restrictions.

Commissioners’ questions and board actions

Commissioners pressed staff on zoning limits, septic/wastewater issues and timelines. Commissioner Farr asked which jurisdictions and parcels in the Mackenzie area prohibit ADUs; McCray said county code currently allows ADUs only on parcels of 2 acres or larger in many rural areas and noted floodway and other constraints. Steve Adams, the board’s policy director, later confirmed the two‑acre limit is set in Oregon statute and multiple state bills addressing middle‑housing and ADU rules are under review this legislative session.

Vice Chair Ryan Senegate, Commissioner Buck and others discussed program timing and local contractor use. Several commissioners said ADUs are the fastest route to put housing on the ground, while cottage clusters and any home‑park approach would likely take longer.

Board assignment: Commissioner Trigger asked staff to research options for caps or other restrictions on short‑term rentals in the Holiday Farm Fire area and adjacent neighborhoods to protect housing availability for local residents and wildfire survivors; county administration accepted the assignment and staff will return with information. No allocation of the funds was approved at the hearing; McCray said these public hearings and planning steps are intended to inform a future subrecipient agreement with OHCS and later decisions.

Procedural items

Earlier in the morning the board approved its consent calendar on a single motion moved by Vice Chair Ryan Senegate and seconded by Commissioner Buck; the vote was recorded as 5‑0 in favor. The board recessed into an executive session earlier under ORS 192.660(2)(h) to consult with counsel on litigation matters and returned to public session for the hearing.

Next steps and how to comment

McCray said the county will accept written comments for 30 days and will publish written responses to comments received during the period. Staff said they are also arranging direct outreach to displaced renters and holding an evening hearing in the Mackenzie area; project partners and county staff will continue site scans, environmental assessments and partner contracting ahead of fund availability. The county will return to the board with formal agreements, procurement steps and any required land‑use actions before funds are spent.

Quotes

"These funds are not yet available to Lane County," Matt McCray said, urging patience while contracts and environmental reviews are completed.

"We're all doing our best. We're all learning on the job," Brandy Crawford Ferguson said, describing the McKenzie Community Land Trust’s work in Blue River.

Ending

The hearing closed with board members thanking staff and members of the public for testimony. No votes were taken on the proposed fund allocations at the Feb. 11 hearing; staff will return with draft agreements, environmental results and options for implementation and regulation, including a staff report on short‑term rental options requested by the board.