What housing strategies are the city evaluating?

1. Provide supportive services for people experiencing houselessness.

  • Action – Develop Housing Options And Services To Address And Prevent Houselessness
    The City is looking at ways to partner with agencies and nonprofit organizations that provide housing and services to people experiencing houselessness. This might include:


  • Partnering with and supporting Clackamas County's affordable housing development and rehabilitation projects in Milwaukie
  • Collaborating with community partners to provide a continuum of programs that address the needs of unhoused persons and families, including temporary shelters, alternative shelter models, long-term housing, and supportive services.
  • Seeking opportunities to leverage grants or programming to support additional resident services or supportive housing services
  • Reducing barriers associated with siting and allowing transitional housing projects and services.

2. Expand affordable rental housing options for households earning less than $50,000 per Year

  • Action – Explore/Consider Multiple-Unit Property Tax Exemption Program
    This tax exemption is used to support development of affordable multifamily rental housing affordable to low-income and moderate-income households. The Multiple-Unit Property Tax Exemption (MUPTE) program is flexible, and eligibility criteria can be set locally. This allows the City to target the exemption to meet its needs. The City could explore using MUPTE in two possible ways:


  • To incentivize mixed income development through inclusion of below-market units (units affordable for households earning below 80% of MFI, or $77,500 per year).
  • To incentivize owners of existing low-cost market rate housing to rehabilitate properties without displacing existing tenants or escalating rents.


  • Action – Use the City’s Construction Excise Tax to support affordable housing development
    A Construction Excise Tax (CET) is a tax assessed on construction permits issued by local cities and counties. The City of Milwaukie already collects a CETand has plans to use existing funds to support new affordable housing units, including:


  • A multi-unit development with 275 units affordable to households that earn between approximately $30,000 and $60,000 per year.
  • A middle housing courtyard development, which will be operated as a land trust.[1]


The City is evaluating ways to use future funds from its Construction Excise Tax (CET) program to support affordable housing development.

[1] Land trusts support affordable housing development by holding land in perpetuity and selling or leasing the housing on the land at below-market rate prices. Land trusts most frequently provide opportunities for homeownership that remain affordable over the long-term.


3. Preserve and maintain existing housing.

  • Action – Use a revolving loan fund for homeownership assistance
    The City is evaluating ways to contribute funding to a loan program that would support homeownership for lower-income households. The City is considering funding sources, including the CET program, Community Development Block Grants, the Healthy Homes Grant Program, and other state or federal funding sources. The City would contribute funds to other organizations that run homeownership assistance loan programs. Individuals that might not qualify for other financing would be able to apply for these loans.

    Loans might be used for:
      • Down Payment Assistance. Typically for first time home buyers, generally with incomes below 80% of MFI ($77, 500 per year).
      • Home Repairs. For existing low-income homeowners to make major repairs on their home, such as fixing the roof, foundation, or other major repairs, generally for households with incomes below 80% of MFI.
      • Weatherization. For existing low-income homeowners to make major repairs on their home, such as replacing windows, adding insulation, and other weatherization efforts, generally for households with incomes below 80% of MFI.
      • Accessibility Improvements. For homeowners at or below 80% MFI, seniors, people with disabilities, to add accessibility features like ramps or widen doorways.

4. Ensure existing and newly developed affordable housing stays affordable long term.

  • Action – Develop a Land Bank Strategy and Partnerships to Support Affordable Housing Development
    Land banks support low- and moderate-income affordable housing development by reducing or eliminating land cost from development. This increases a nonprofits’ capacity to build affordable housing. The City can contribute city-owned land or funding to use for affordable housing development and control the type of development that may occur on that land. Long-term affordability can be ensured through a couple ways:
      • The City can contribute land to affordable housing developers for development of housing at agreed-on level of affordability, such as housing affordable to households earning below 60% of MFI or $58,000 per year. Housing affordable at this level is financed with state and federal funds, which mandate long-term affordability (e.g., maintaining affordability for 30 years or longer).
      • The City could contribute land or funding to a land trust or housing cooperative that provides opportunities for homeownership that remain affordable over the long-term.

5. Increase areas where residents can access goods and services by walking or biking.

  • Action – Use Urban Renewal Funding
    Milwaukie has an Urban Renewal District that covers downtown and the city’s Central Milwaukie area. The purpose of the District is to encourage improvements to this area by funding infrastructure development, economic development, and housing development. Over the next five-year period, the City expects to have $2 million in its Urban Renewal Fund to support housing development. Housing within the urban renewal district will be mixed-use multi-unit housing primarily. Much of this housing is expected to be affordable at less than 120% MFI (or $XX,XXX/yr). The City will need to decide how to use the funding, such as paying for development fees or building infrastructure needed to support housing development.


  • Action – Increase allowable densities in the High-Density Residential (HDR) Zone
    The City is considering options to increase allowable residential densities in the HDR zone, which would allow for more development of multi-unit housing, both for affordable housing and market-rate multi-unit housing. There are very few vacant sites in the HDR, so increased densities would mostly create opportunities for future redevelopment. The City’s HDR zones tend to be in areas where residents have more transportation options to access goods and services within walking or biking distance.


  • Action – Evaluate Incentives for Affordable Housing Development such as Density Bonuses
    The City is evaluating regulatory incentives that could support development of multi-unit housing in desired locations and/or encourage development of particular types of housing, such as mixed-use residential development or income-restricted affordable housing. Bonuses might include permitting a larger number of units, greater building height, smaller minimum lot sizes, and smaller setback requirements for affordable housing developments.

  • Action – Explore Inclusionary Zoning
    The City is evaluating a policy that would require developers to provide a certain percentage of low-income housing. According to state law, a city’s inclusionary zoning policy:

  • Can only apply to multifamily housing with 20+ units
  • Cannot require more than 20% of units be affordable
  • Must allow fee-in-lieu of building units on-site
  • Must be paired with incentives (e.g., SDC or fee waivers/reductions, property tax exemptions, or other financial incentives)

    Since this policy would only apply to multi-unit developments with 20 units or more, the City would likely see impacts in its high-density zones, where residents have more transportation options to access goods and services within walking or biking distance.

Please contact Laura Weigel, Planning Manager at weigell@milwaukieoregon.gov(link sends e-mail) or 503.786.7654 with questions. The deadline for comments is April 24, 2023.

Engagement period for project has concluded.