Terry Harding, principal planner for the City of Eugene, opened the council's Nov. 12 work session by outlining the 2026 Urban Growth Strategies adoption package and saying staff would focus first on housing actions required by new state rules.

Leah Rausch, senior planner, summarized the Oregon Housing Needs Analysis and the scale of the challenge: "we know that Eugene will need to support the production of more than 26,000 new dwelling units in the next 20 years." She said that, on average, the city needs about 1,600 new units annually over the next decade to meet that need, significantly higher than recent production.

Rausch described a proposed new housing type — "microvillage" housing — intended to serve people with the lowest incomes and those transitioning from homelessness. The concept envisions very small dwelling units (generally under 400 square feet) with an in-unit bathroom and a shared multi-use building with cooking facilities and other amenities. "The hope is that these dwellings are faster and less expensive to develop than traditional multi unit rental housing," she said, and staff emphasized flexibility in configuration (detached, attached or stacked units) and sites (small infill lots, institutional properties such as churches).

Rausch also said staff will propose land-use code amendments to clarify standards for single-room occupancy units and to ensure microvillage housing and SROs are distinct regulatory paths that comply with recent state law.

Amanda D'Souza, the community development division's development programs manager, laid out two incentive concepts to address gaps in production: two proposed 10-year property-tax-exemption programs enabled by a state incentive for transit-supportive multi-unit housing. "The proposed action is to create 2 new 10 year property tax exemption programs," she said. One would target moderate-income housing (roughly 60'120% of area median income) within a quarter-mile of a transit route; the other would be a market-rate incentive focused on mixed-use centers and commercial corridors to encourage more housing citywide.

D'Souza also described staff's exploration of a state-capitalized revolving loan fund for moderate-income housing as an alternative tool with a roughly comparable financial benefit to a tax exemption, and noted staff are presenting high-level program parameters to seek council feedback before returning with program design details.

Councilors broadly welcomed the concepts but pressed for more quantification and targeted approaches. Councilor Zelenka said past efforts had been "hijacked by the building community" and asked for estimates of how many affordable units the new actions would produce. Councilor Yeh urged staff to consider incentives that could promote homeownership. Will Dowdy, community development director, said staff are evaluating state programs such as the Housing Infrastructure Fund but noted limited windows and capacity for those grants.

Staff said they plan to return to the council on Nov. 24 to consider initiation of the adoption package (initiation starts the public process but does not approve changes) and will provide follow-up work in coming months with program details, quantification of expected outcomes and coordination with county and regional partners.

No formal vote or ordinance was taken at the Nov. 12 work session; council directed staff to refine proposals and return with targeted options and additional financial and programmatic detail.