Council workshop probes annexation rules and a proposed 25% affordable unit target in draft concepts

Scott Woodford, the city’s Community Development Director, presented draft concepts for tying affordable-housing expectations to annexation approvals. He said staff used the city’s housing plan and the Oregon Housing Needs Analysis (ONA) to estimate future needs across income bands and proposed translating those needs into a percentage-mix target for new development.

Woodford outlined example targets by AMI and noted tradeoffs: lower-income bands (0–30% AMI) typically require rental units and supportive services and are harder to fund, while middle bands may be better served by ownership or mixed approaches. He said, as presented in the packet, an initial concept had a 25% minimum affordable requirement of the total units; private-market developers and affordable-housing providers differed in views about that percentage’s feasibility.

"As written, this ordinance would not produce any affordable housing," Woodford said at one point, relaying early feedback from a local developer who reviewed the draft. Councilors discussed alternatives: allowing parcel-level mixes, conveying land to nonprofit developers, phasing infrastructure obligations, or applying a construction excise tax (CET) on commercial or industrial annexations. Council members also asked staff to consider off-ramps and alternate compliance pathways (e.g., deeded land, land leases, or fees) to avoid blocking development where financing or timing makes on-site units impractical.

Several councilors and staff emphasized the need for more developer input and careful drafting; Woodford said the item would return for additional review and that annexation provisions are the appropriate venue for discretionary inclusionary tools.