Affordable Housing Trust Fund

Background

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 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.