TO: Mayor and City Council
THROUGH: Krishna Namburi, Acting City Manager
FROM: Kristin Retherford, Community Planning and Development Director
SUBJECT:
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Work session to provide an update on Salem’s Housing Production Strategy project
Ward(s): All Wards
Councilor(s): All Councilors
Neighborhood(s): All Neighborhoods
Result Area(s): Welcoming and Livable Community.
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SUMMARY:
summary
The City is working to develop Salem’s first Housing Production Strategy, which will outline the specific actions that the City plans to take to encourage housing development. City staff, working with a consultant team from ECONorthwest, has developed a list of proposed actions based on Salem’s housing needs, data analysis, and input from the community, Planning Commission, and City Council.
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ISSUE:
Information regarding the development of Salem’s first Housing Production Strategy
RECOMMENDATION:
recommendation
Information only
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FACTS AND FINDINGS:
The City is working to develop Salem’s first Housing Production Strategy (HPS), which will outline the specific actions that the City plans to take to encourage housing development over the next six years. Staff, working with a consultant team from ECONorthwest, has developed a list of proposed actions and is seeking feedback from the Planning Commission and City Council at this joint work session. Input from the Planning Commission and City Council will inform revisions to the proposed actions, which will then be included in the draft HPS.
The proposed actions fall into four broad categories: Financial, Regulatory, Land/Partnerships, and Other Actions. The proposed actions are listed below and described more in detail in Attachment 1.
Regulatory Actions
• Revise the zoning code to support housing development
• Revise the zoning code to promote accessible housing
• Update the zoning code to preserve nonconforming housing
• Improving the permitting process
• Expand the Ready-Build program
Financial Actions
• Create an urban renewal area (URA) in the north waterfront area
• Expand the use of the Single Property URA program
• Create a new URA program for middle housing
• Revise the system development charges methodology
• Create a new Multi Unit Housing Tax Incentive Program
• Provide homebuyer assistance
Land/Partnership Actions
• Support permanent supportive housing
• Expand access to areas of high opportunity
• Continue affirmatively furthering fair housing
• Support community land trusts
Other Actions
• Fund infrastructure for housing
• Advocate for manufactured home park residents
• Raise awareness of existing programs
The proposed actions are based on Salem’s housing needs, data analysis, and input from the community, Planning Commission, and City Council. A summary of the community engagement activities is included below.
Community Engagement Summary
Since February of 2024, the City has been working with the consultant ECONorthwest to better understand Salem’s housing needs by analyzing data and engaging the community. This has included meeting with community and neighborhood groups and holding focus groups with organizations that serve marginalized or underserved communities, including people with disabilities, communities of color, lower-income residents, students, and people at risk of losing their homes. The City also participated in events that were co-hosted by the Micronesian Islander Community and Enlace Cross-Cultural Community Development Project. In addition, the City conducted a webinar and a citywide survey, which was translated into three languages in addition to English.
In the fall and winter, the City held several focus groups with the development community to get input on potential barriers to housing development as well as ideas for proposed actions to promote development. ECONorthwest also interviewed developers to understand the local housing market and the feasibility of development in different areas of Salem. The City also conducted a second webinar and survey that focused on potential actions to encourage development.
Summaries of the public input received through focus groups and surveys are available on the Housing Production Strategy project website: www.cityofsalem.net/housingproduction <https://www.cityofsalem.net/housingproduction> Presentations from the webinars can also be found on that webpage. Staff received one public comment by the writing of this staff report, and it is attached as Attachment 2.
Next Steps
Based on the input from the Planning Commission and City Council, staff will revise the list of proposed actions to promote housing development. Those revised actions will be included in the draft HPS. In the draft HPS, each action will include a timeline for implementation and an estimated magnitude of impact.
Staff expect to bring the draft HPS through the adoption process in the late spring or early summer. This will include public hearings at the Planning Commission and City Council.
BACKGROUND:
A HPS outlines how a city plans to address the housing needs identified in its analysis of housing capacity. Salem adopted its Housing Needs Analysis (HNA) in 2022 with the adoption of the Our Salem project. That multi-year project redesignated and rezoned enough land to accommodate Salem’s projected housing needs, including land for multifamily housing.
Developing a HPS is the next step in helping meet Salem’s housing needs, as it focuses on actions to promote the production of housing. Developing an HPS is also listed in Salem’s updated Comprehensive Plan as a project to implement and advance that plan’s goals and policies. The City received a Housing Planning Assistance Grant to help develop its HPS from the Oregon Department of Land Conservation and Development (DLCD). The State therefore is paying for a consultant to help the City develop its HPS. The City is required by State rules to adopt a HPS by December 31, 2025.
Eunice Kim
Long Range Planning Manager
Attachments:
1. Description of Proposed Housing Production Actions
2. Public comment