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Draft ordinance targets 25% affordable/workforce housing in UGB expansions, commissioners raise feasibility concerns
Summary
Staff proposed a 25% affordable/unit target for annexations with a detailed AMI mix; commissioners and local developers warned the mix and percentage may be difficult to achieve and discussed alternatives including density bonuses, fee‑in‑lieu and deeded land options.
Planning staff told commissioners the draft annexation ordinance as presented to the commission includes a goal that 25% of units in developments inside the expanded UGB be affordable or workforce housing, with a suggested mix aimed at matching the city’s housing-needs analysis.
“25% of the total of the total number of units,” the staff member said, outlining a proposed breakdown drawn from the housing needs analysis that included percentages of units for households at various area‑median‑income (AMI) bands, including units at about 30% AMI and other tiers. The staff said the numbers were checked against state and local housing needs work but acknowledged the model is not a ready‑made fit for all developers.
Commissioners and members of a developer working group noted the target and the required mix could be challenging for private builders without additional subsidies. One commissioner warned the stacking of funding requirements could make projects infeasible, while staff pointed to alternative compliance routes — such as density bonuses, deeded land transfers to nonprofit developers, payment‑in‑lieu options, or an approved "alternative plan" — intended to preserve flexibility.
Staff said phasing and timing standards are being considered so affordable units are not deferred to a project's final phase, and noted nonprofit housing providers (e.g., Habitat and Northwest Housing Alternatives) and local partners have been part of a housing working group that advised the draft. Commissioners asked staff to continue meeting with the working group and to return with refined metrics and options that balance policy aims against development realities.
