Lane County OKs $5.5M ADU program to add affordable units upriver after Holiday Farm fires
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Summary
The Lane County Board delegated authority to the county administrator to contract for multiple affordable accessory dwelling units (ADUs) in the Mackenzie River Valley using $5.5 million in CDBG‑DR funds, prioritizing wildfire survivors and requiring 8–10 years of affordability at ≤80% AMI.
The Lane County Board of Commissioners on Dec. 16 delegated authority to the county administrator to execute contracts to purchase and place multiple affordable accessory dwelling units (ADUs) in the Mackenzie River Valley, approving up to $5.5 million for the program.
Disaster Recovery Manager Matt McGray told commissioners the funding comes from Community Development Block Grant–Disaster Recovery dollars administered through the state and that the county’s ADU proposal seeks to site roughly 20 units upriver to help wildfire survivors. ‘‘The goal here is to site approximately 20 ADUs upriver in the Holiday Farm fire affected area,’’ McGray said, adding that the program boundaries extend slightly beyond the fire area so owners not rebuilding can participate.
Under the program, units would be 900 square feet or smaller (state limit), placed on parcels of two acres or more where state law requires, and rented to households at or below 80% of area median income for an 8–10 year affordability period. Property owners would receive forgivable loans covering the unit and improvements; for a 10‑year forgivable loan the amount would be forgiven in equal annual installments and obligations would end once forgiven. The property owner would manage the unit; the Mackenzie Community Land Trust would act as rental coordinator and screen tenants, and a separate asset manager would oversee the loan instrument and compliance. McGray said the county has received interest from about 25 property owners and has undertaken initial site screenings and environmental assessments.
Commissioners asked whether state rules would permit short‑term rentals after the affordability period; McGray said state law prohibits ADUs from being used for short‑term rentals and that prohibition would remain. Commissioners praised the proposal as an innovative recovery tool using one‑time federal disaster funds.
Commissioner Buck moved to approve the delegation order for up to $5.5 million; Commissioner Farr seconded and the motion passed 5‑0.