Eugene staff propose 'microvillage' housing and two 10-year tax-exemption incentives to boost production

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)…