Understanding HB 4006 (2018) New Statutory Requirements - DLCD AND OHCS WEBINAR FOR LARGER CITIES SEPTEMBER 21, 2018 - Oregon.gov
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Understanding HB 4006
(2018)
New Statutory
Requirements
DLCD A N D O HC S
W E BI N AR FO R L A RG ER CI T I ES
S E PTEMBER 2 1 , 2 0 1 8
1Agenda
I. Agency introductions
II. HB 4006 Summary
III. OHCS Administrative Rules Overview
IV. Timeline
V. Public Meeting
VI. Reporting – Survey, permit data and meeting information
VII. Resources
VIII. Contacts
IX. Q&A (Recorded Questions and Answers from the Sept 21, 2018 Webinar)
2HB 4006 (2018)
The intent of the legislation:
• Increase local awareness of rent burden causes and potential solutions
in an effort to encourage local jurisdictions to take steps and/or
communicate what support they need to address severe rent burden in
their community;
• Collect housing related information to better understand the
effectiveness of solutions; and
• Assist cities in housing planning efforts (technical assistance grants)
3HB 4006 (2018)
Cities with populations over 10,000 where greater than 25% of renter households pay more than
50% of monthly income on rent must
Hold at least one public meeting to discuss rent burdens causes and potential solutions.
Report meeting minutes and attendees.
Complete and submit a survey.
Report the number of permitted and produced residential units in several different categories
•Cities with populations over 10,000 (not severely rent burdened) must
Report the number of permitted and produced residential units in several different categories
$1.73 million: DLCD technical assistance grants and
$270,000: OHCS study the costs of affordable housing and provide technical assistance grants to
promote the development of subsidized affordable housing.
4OHCS Rules - OAR 813-112
Public comment period closes today, September 21, 2018
https://www.oregon.gov/ohcs/pdfs/rulemaking/813-112/RentBurden_Notice_8-31-2018.pdf
Outline of Rules:
• Applicability and Purpose
• Definitions
• Cities Rent Burden Determination
• Public Meeting
• Housing Affordability Survey
• Reporting Requirements
5Severe Rent Burden Determination
U.S. Census Bureau, American Community Survey 5-Year Estimates:
• Table B01003: Total Population
• Table B25070: Gross Rent as a Percentage of Household Income in the Past 12
Months
67
City Requirements
Larger Cities Severely Rent Burdened Cities
(population > 10,000) (population > 10,000)
1. DLCD/OHCS Survey
1. Report to DLCD/OHCS - Permitted and
Produced Units 2. Public Meeting
3. Public Meeting Submittal to OHCS
2. (optional) DLCD/OHCS Survey ◦ meeting agenda
◦ list of attendees, their affiliation and location
4. Report to DLCD/OHCS - Permitted and
Produced Units
82018 Calendar
Oct 1: OHCS Sends Survey to
Cities*
Sept 1: OHCS Sends Notice and
Rent Burden Data to Cities*
Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec
Cities Submit Survey (60 days after receipt)
Dec 31: Severely Rent Burdened Cities -
Public Meeting - Complete by Date
*correspondence will be sent to Mayor and City Managers
92019 and On-going Calendar
March 1: OHCS Sends Notice
and Rent Burden Data to July 1: OHCS Sends Survey to
Cities > 10,000 population* Cities*
Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec
Feb 1: Cities > 10,000 population
submit Permitted and Produced
Sept 1: Severely Rent Burdened Cities
Units to DLCD and OHCS
Submit Survey (60 days after receipt)
Feb 1: Severely Rent Burdened Cities
Submit Public Meeting Report to
OHCS
Time Period Severely Rent Burdened Cities Have to
Hold Public Meeting (Complete by Date, Dec 31)
*correspondence will be sent to Mayor and City Managers
10Required Public Meeting*
1. Can take place within another meeting
2. Requires specific invitations:
a) Representation from local housing providers and service providers, and
b) Residents experiencing severe rent burden
3. Items to discuss:
a) Causes and consequences of severe rent burdens within the city;
b) Barriers to reducing rent burdens; and
c) Possible solutions to reduce the rent burdened households
*only required for severely rent burdened cities with population > 10,000
11Housing Affordability Survey –
Development and Purpose
Development
OHCS and DCLD, University of Oregon’s Statewide Housing Survey as a base.
Purpose
Cities: Reporting on actions taken to reduce rent burden and increase
housing affordability.
Agencies: Identify the tools that are being used, measure success, prioritize
technical assistance.
12Housing Affordability Survey – Logistics
1. Distributed via email to Mayors and City Managers; may be completed by
any designated city staff
• 2018: October 1
• 2019 and on-going July 1
2. Survey Monkey
3. Approximately 45 minutes to complete
4. One response per city
5. Due 60 days after receipt – Friday, November 30th
13Housing Affordability Survey – Overview
1. Understanding Housing Needs
• Income levels
• Populations
• Housing Types
2. Barriers to Reducing Rent Burden and Increasing Housing Affordability
3. Actions Considered or Taken to Reduce Rent Burden and Increase Housing
Affordability
14Housing Affordability Survey – Definitions
“Regulated affordable unit” is a residential unit subject to a regulatory
agreement that runs with the land and that requires affordability for an
established income level for a defined period of time.
“Housing affordability” or “housing that is affordable” describes the
relationship between expenditure on housing (mortgage payments or rents) and
household incomes (30% of household income).
15Housing Affordability Survey - Examples
16Housing Affordability Survey - Examples
17Housing Affordability Survey - Examples
18Housing Affordability Survey - Examples
19Reporting – Permitted and Produced
Units - Purpose
Cities: Compile data annually on residential development for information and
planning purposes.
Agencies: Look at data trends over time on a regional and statewide basis for
numbers and types of residential development, including subsidized affordable
residential development.
20Reporting – Permitted and Produced
Units - Logistics
1. Required for all cities >10,000 in population
2. Due February 1 every calendar year.
3. Data from the preceding calendar year.
4. Reporting format and submittal details to be determined.*
* Agencies will work with PSU to clarify different reporting requirements and prevent duplicative work.
21DEFINITIONS
1. “PERMITTED” = issued a building permit
2. “PRODUCED” = issued a certificate of occupancy
3. “SINGLE-FAMILY UNIT” = single-family detached homes, duplexes,
townhomes, row homes and mobile homes
4. “MULTI-FAMILY UNIT” = triplexes and up
5. “REGULATED AFFORDABLE UNIT” = subject to a regulatory agreement that
runs with the land and that requires affordability for an established income
level for a defined period of time
22Reporting – Permitted and Produced
Units - Overview
Number of units that were permitted and number of dwelling units that were produced for the
following:
Multi-family residential units, including the total number of units, and whether the unit is in a
triplex, fourplex, or structure with five or more dwelling units;
Regulated affordable multi-family residential units, including the total number of units, and
whether the unit is in a triplex, fourplex, or structure with five or more dwelling units;
Single-family units, including the total number of units, and whether the unit is a single-family
detached home, accessory dwelling unit, townhome, row home, manufactured home, or in a
duplex; and
Regulated affordable single-family units, including the total number of units, and whether the
unit is a single-family detached home, accessory dwelling unit, townhome, row home,
manufactured home, or in a duplex.
23Resources
Causes, consequences & barriers to reducing rent burdened:
Pew Charitable Trust Report
https://www.pewtrusts.org/-/media/assets/2018/04/rent-burden_report_v2.pdf
National Low Income Housing Coalition
http://nlihc.org/sites/default/files/gap/Gap-Report_2018.pdf
Oregon Office of Economic Analysis – Josh Lehner Blog:
https://oregoneconomicanalysis.com/author/oregoneconomicanalysis/
24Resources
Considering possible solutions:
1. Cities can convene local partners and impacted residents to understand into local data &
dynamics.
https://www.census.gov/programs-surveys/acs/
https://www.qualityinfo.org
https://www.oregon.gov/ohcs/Pages/research-multifamily-housing-inventory-data.aspx
2. DLCD Housing Resource Page – Model development code, studies, city work products, etc.
https://www.oregon.gov/lcd/pages/housing.aspx
25Contacts
DLCD
Gordon Howard
Community Service Division Manager
Department of Land Conservation and Development
503-934-0034
gordon.howard@state.or.us
OHCS
Kim Travis
Housing Integrator
Oregon Housing and Community Services
503-428-3843
Kim.Travis@oregon.gov
26Questions and Responses from HB 4006 Webinar provided by OHCS and DLCD September 21, 2018
Identifying Severe Rent Burden
1. Why is ACS data the basis for the rent burden determination and not CHAS data? ACS data is from the US Census
Bureau, which is the required data source referenced in the legislation. CHAS data, available through HUD’s Data
Portal is an additional tool available to cities and community partners to explore if desired.
2. Should the margin of error be considered for cities right on the edge of having 25% of severely rent burdened
households? Margin of error will not be considered in terms of changing the severely rent burdened determination.
3. Does rent include utilities and other housing expenses? Is this different from HBD's definition? Gross rent provides
information on the monthly housing cost expenses for renters. Gross rent is the contract rent plus the estimated
average monthly cost of utilities (electricity, gas, and water and sewer) and fuels (oil, coal, kerosene, wood, etc.) if
these are paid by the renter (or paid for the renter by someone else). Gross rent is intended to eliminate differentials
that result from varying practices with respect to the inclusion of utilities and fuels as part of the rental payment. The
estimated costs of water and sewer, and fuels are reported on a 12-month basis but are converted to monthly figures
for the tabulations. HUD uses Median Gross Rent.
4. Are cities required to have an action plan to reduce rent burden? Is there a time frame involved? No. Cities are not
required to submit an action plan to reduce rent burden. The only time frames are related to completing the meeting
and reporting requirements of the legislation.
27Questions and Responses from HB 4006 Webinar provided by OHCS and DLCD September 21, 2018
Public Meeting
5. What best practices could be used for reaching out to rent burdened residents to provide notice of the public meeting? How can
cities ensure they are reaching out to a broad base and that they are reaching the affected population? What works will vary by
community. Our recommendations include:
• Work with your housing and service providers or leaders in the faith based community can to help you invite those their
clients and residents (e.g., post flyers and meeting notices). Housing authorities and community action agencies may help
refer clients seeking assistance.
• Post notices about the public meeting in a variety of places, such as the local employment department, DHS office, food
banks, or community centers. Each locality will have a different mix of appropriate locations to post the meeting notice.
• Invite and seek participation from housing and service providers who can represent the needs of those who are experiencing
severe runs rent burden. Some residents may be seeking rental assistance from the service providers but, as mentioned,
there's not enough resource to go around and
• Consider the meeting location and time. Some cities have suggested holding several public meetings to increase accessibility.
While only one meeting is required, holding multiple meetings at different times and locations will increase the opportunity
for participation.
6. Could the city hold the public meeting during either a City Planning Commission or City Council meeting as a noticed item? Yes.
The public meeting to discuss rent burden may be held during another city meeting, such as the City Planning Commission or City
Council Meeting. In addition to regular notice, however, a city would still need to invite representation from local housing providers
and service providers, and residents experiencing severe rent burden to the public meeting, including the Public Housing Authority,
Community Action Agency, and nonprofit housing and service providers.
28Questions and Responses from HB 4006 Webinar provided by OHCS and DLCD September 21, 2018
Public Meeting (continued)
7. What type of notice is required - individual property owner letter, newspaper, etc. - and who must run the meeting? The notice
required is the same as for a regular public meeting, and not a land use hearing. Therefore, no individual property owner notice is
required under state law. A city's governing body most senior administrative employee or delegate of the governing body must
conduct the meaning and provide notice in accordance with Oregon's public meetings laws are as required by cities under ORS
192.610 to 192.690.
8. What are the required outcomes of the public meeting? The desired outcome is to begin the conversation within the community
or to enhance a community wide discussion among decision makers and citizen residents of your community regarding housing
needs so that when your city council begins to take action, whether it is updates to zoning codes or applying to OHCS or DLCD for
technical assistance, those actions are rightly aimed at the needs of your community. Many cities have formal or informal housing
committees that are discussing these issues. The public meeting requirement can facilitate communication between existing
committees and elected officials. The intent is not to have another meeting for the sake of having the meeting, but rather provide a
venue for those conversations to connect with decision makers.
9. Can neighboring cities hold a joint public meeting? Yes, neighboring cities can hold a joint public meeting (so long as the meeting is
held within one of the cities’ jurisdictional boundaries).
10. Rather than one meeting, can a city have multiple meetings and provide attendees and minutes from all of them? Yes, while only
one public meeting is required, a city may hold multiple meetings if it feels doing so better achieves the objectives. The city would
be required to submit the public meeting agenda together with a list of attendees, their affiliation and geographic location for all
the meetings to the Housing and Community Services Department by February 1.
29Questions and Responses from HB 4006 Webinar provided by OHCS and DLCD September 21, 2018
Survey
11. If our city is not considering one of the measures listed in Questions 20-22, how should we answer? Check the “Not Adopted”
option if your city has not adopted and is not considering one of the housing measures.
12. Can we select multiple counties if applicable? We recognize that there are a few cities that span two counties. However, for
purposes of this survey, just select one county.
Reporting of Permitted and Built Units
13. Will the reporting format and schedule be coordinated with what cities already report to PSU? Yes. We will be coordinating with
Portland State University to eliminate or minimize any duplication. We will also determine if we can coordinate schedules with
Portland State University.
14. When where/will the reporting template be available? The reporting template will be available before the end of this calendar
year. The template will be sent to city planning directors as well as city managers.
15. Could you clarify if we are supposed to track only permits that have successfully led to development? Or we are tracking all
permits regardless of the outcome? Cities will be tracking both “permitted” units, in the form of issued building permits, and
“produced” units, in the form of certificates of occupancy. This is required by the legislation. It is expected that the “produced” units
number, over time (see response to #22 below), will be slightly less than the “permitted” units number, because a (presumably
small) percentage of building permits are never carried to occupancy by the builder.
16. Are we reporting the number of building permits issued within the categories, or the units approved through zoning and
entitlements? For housing production, are we reporting based on certificates of occupancy? Cities will be reporting on the number
of building permits issued (“permitted units”) and certificates of occupancy issued (“produced units”) within the categories of
dwelling units, not the number of units approved as part of quasi-judicial development review applications.
30Questions and Responses from HB 4006 Webinar provided by OHCS and DLCD September 21, 2018
Reporting of Permitted and Built Units (continued)
17. How far back should our permitted and produced housing info go? Cities will report by February 1 the number and type of units
that were permitted and produced in the previous calendar year. For example, by February 1, 2019 cities must report on the
number and type of units that were permitted and produced during the 2018 calendar year.
18. Are ADUs included in the reporting requirement? The rules will require reporting of accessory dwelling units permitted and
produced. They are classified as a type of single-family residential development, so cities will include those numbers as a subset of
single-family residential development in submitted reports.
19. How should a city report mixed-use residential units? Cities will report units in mixed residential/non-residential developments
based upon the type of unit permitted and produced. For example, if the mixed use project has detached units, or townhomes,
those units would be included in the single family category. If the mixed use project has a building or buildings with three or more
units then those units would be counted as multifamily units.
20. Regarding mixed use: How should the cities report building permits for renovation of upper floor housing in existing buildings
that have not been used for years? There is some discretion required of the city in determining how to classify residential units in
this particular situation. If the units were habitable, but in need of significant renovation, then they would not be counted as new
residential dwelling units. If the units had been unused for at least several years and were no longer habitable, then they would be
counted as new residential units.
21. In looking at the reporting requirements for new housing units, will there be any data collected about new housing units outside
of the city but in close proximity? No, the legislation and rules do not require reporting for cities under 10,000 population and
counties.
31Questions and Responses from HB 4006 Webinar provided by OHCS and DLCD September 21, 2018
Reporting of Permitted and Built Units (continued)
22. How do we avoid double counting if building permits are counted in one year and certificates of occupancy are issued and
counted in the following calendar year for the same housing unit(s)? Since issued building permits and certificates of occupancy
for the same residential unit are sometimes issued by a city in different calendar years, any differences between these two numbers
will only have significance over a multi-year period.
23. Would you count conversion of market rate units to regulated affordable housing units? or the other way, regulated affordable
housing to market rate? Cities are not required to report conversion of new units from market-rate to affordable, or affordable to
market-rate. Cities are required to report only new units permitted or produced.
24. To the extent they reduce housing supply, should we be submitting permit information on residential demolitions, or residential
to commercial conversions? Cities are generally not required to report demolitions or conversions of residential units. There are
two situations where demolitions are relevant: 1) if the new residential unit permitted or produced is replacing a demolished
residential unit (that was habitable at the time of demolition), then it should not be included; and 2) if a site with two or more new
residential units had an existing unit or units of a lesser number that were demolished, the city should report only the net increase
in units, both in number and type.
25. The definition of "single family" in HUD's Single Family Policy Handbook is 1 - 4 units. The US Census's definition does not specify
a unit number. Would the definition used in this reporting requirement create any inconsistency when local governments look at
data from different sources? The legislation and rules include a definition of “single-family” that differs from the definition found in
other sources. The best source of data for a city to use in providing the required information would be its own record of building
permits permitted and produced.
26. Are you working with any of the online permitting vendors such as Accela to produce standardized reports that can be used to
produce this data (hopefully) easily? The department will study this issue.
32Questions and Responses from HB 4006 Webinar provided by OHCS and DLCD September 21, 2018
Other
27. Can you repeat when the slides will be available, and from where we can download them? The slides will be available and sent
out via email the week of September 24.
28. Will issues / concerns raised in today's webinar be conveyed to the rule making committee in time for today's deadline?
Comments should be submitted through the appropriate channel provided on the rulemaking notice.
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