McMinnville outlines 16‑point housing production strategy to meet state mandate; affordable housing funds to help implementation

City planning staff and consultant Echo Northwest presented a draft Housing Production Strategy (HPS) to the council and asked for council feedback ahead of a May planning commission public hearing and a required state submission.

“This is something that's mandated by the state,” Community Development Director Heather Richards said, describing the work as an 8‑year action plan that must be adopted to show how McMinnville will meet its identified housing needs.

Beth Goodman of Echo Northwest said the HPS the city will submit contains 16 actions grouped into land use planning, regulatory actions, incentives and programs and land‑based initiatives. She told the council the actions range from rezoning and area planning to incentives like a multi‑unit property tax exemption and land provision strategies, and that each action is its own project with separate implementation and cost implications.

Key points staff highlighted: - Buildable land and area plans: staff recommended finishing the Southwest area plan and starting the Riverside South area plan; Echo Northwest estimated $350,000 in consultant costs and $100,000 in staff time for an area plan. - Zoning and regulatory changes: potential rezoning to the multifamily (R‑5) zone, code audits to align zoning with the city’s Great Neighborhood Principles, and amendments to encourage transitional housing and missing‑middle products. - Incentives: evaluation of a multi‑unit property tax exemption (MUPTE) program, potential SDC adjustments favoring smaller units, and incentives for accessible and affordable design. - Land strategies: evaluating surplus city land for affordable housing, partnering with community land trusts, and exploring manufactured‑home park preservation.

Costs and funding: staff said many of the near‑term, resource‑intensive actions can be funded with the city’s affordable housing construction excise tax (CET). Richards said the CET fund “currently has about… $1,200,000 in there” and that the CET is expected to generate roughly $300,000 per year during the near term (staff cautioned collections depend on future development pace). Echo Northwest provided order‑of‑magnitude consultant estimates for several actions.

Next steps and deadlines: staff said the HPS will be reviewed by the Affordable Housing Committee and the Planning Commission (public hearing planned for May 15), and the city hopes to submit an adopted HPS to the state by mid‑June to preserve a related grant opportunity. Richards and staff asked council members to provide questions or comments by email so staff can incorporate them before the planning commission hearing.

Council reaction: councilors discussed priorities including preserving manufactured‑home parks, land provision, and whether actions should emphasize preservation or production. Several councilors urged swift work on infrastructure planning and area plans so rezoning can support near‑term housing production.

Staff emphasized the HPS is a menu of actions, not a single prescriptive mandate, and that the city will track and report implementation progress to the state, including a required 4‑year evaluation of how effective chosen actions have been.