Affordable Housing Trust Fund

In 2016, Oregon Legislature passed Senate Bill 1533 authorizing Oregon cities and counties to establish a construction excise tax (CET) on commercial and residential improvements. The tax applies to all improvements which result in a new structure, additional square footage to an existing structure, or addition of living space to an existing structure.


In May of 2019, the Eugene City Council passed Ordinance No. 20609 establishing the tax in Eugene. An information sheet about Eugene's construction excise tax is available. The tax will create a dedicated source of funding for affordable housing, called the Affordable Housing Trust Fund. This fund will pay for projects and programs that increase availability and access to owner- and renter-occupied housing that is affordable to lower income community members.


The City of Eugene has supported the creation of affordable housing using both federal and local funds for over 40 years. To learn more about the recent use of federal funds, affordable housing developments, rehabilitation projects and human service programs, see the Housing and Human Service Plans webpage.


What is Affordable Housing?

Across the United States, housing costs are considered "affordable" if the monthly rent or mortgage, plus utilities, add up to no more than one-third (or 30%) of gross household earnings. Affordable housing developments receive public subsidies in exchange for a commitment to provide homes with limited rents for people with limited incomes.


The Fund will support projects, programs, incentives, and services related to the housing of households earning 100% of area median income (AMI). AMI is a federal calculation based on census data from every geographic area. Households earning less than the AMI, are very likely to be adversely affected by housing costs.


To learn more about affordable housing and non-profit partners in Eugene, please visit the Looking for an Affordable Home webpage.


Affordable Housing Trust Fund Advisory Committee

The City will form a citizen advisory committee that will advise on the use of Affordable Housing Trust Fund resources. A request for applications will likely be released in August. It is anticipated that funds will be allocated to housing programs and projects starting in early 2020.

If you would like to keep informed about the Affordable Housing Trust Fund, please sign up below to join the list for interested parties. Information including notifications of meetings, events, committee recruitment, and participation opportunities will be delivered to your inbox.

Resources

Construction Excise Tax Information Sheet

Construction Excise Tax Exemption Form

Building Fees, including Construction Excise Tax

Contact 

Questions about Construction Excise Tax collection

Lydia Kaye

Email: LKaye@eugene-or.gov

Phone: 541-682-5482


Questions about utilizing the Affordable Housing Trust Fund for affordable housing 

Email: SJennings@eugene-or.gov

Phone: 541-682-5529

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