policy
Eugene Council Mandates 15% Affordable Units in New Apartment Projects
The measure sets aside 15 percent of units as income-restricted in qualifying developments, changing options for renters in neighborhoods such as Whiteaker and River Road.
How we reported this
The Eugene City Council voted 6-3 on July 8 to adopt the Inclusionary Housing Ordinance, which requires developers to designate 15 percent of units in projects exceeding 20 units as affordable for households earning up to 60 percent of area median income.
The ordinance follows the 2025 Lane County Housing Needs Assessment, which documented a gap of 4,800 rental units priced below market rates for low-income residents. City staff presented the measure after reviewing similar rules in Portland and Bend that took effect in prior years.
Effects on Housing Access for Local Households
For a household earning $48,000 annually in Eugene, the policy means eligibility for units capped at roughly $960 monthly rent in future buildings, compared with current market averages near $1,450. Residents in the Bethel neighborhood, where several multifamily projects are planned, will encounter these requirements once permits are issued after January 2027.
Policy analysts note that the rule applies only to new construction and does not alter existing leases or single-family zoning. Community advocates point out that the city’s 2026 budget already directs $1.8 million toward rental assistance programs, which will operate alongside the ordinance.
Implementation Timeline and Next Steps
The legislation states that the planning department will issue guidelines by October and begin reviewing applications in the first quarter of 2027. Developers must submit compliance reports every six months after occupancy, with fines starting at $5,000 per noncompliant unit.
Further council review of the ordinance is scheduled for July 2028, when staff will present data on units produced and any adjustments needed based on construction activity recorded through that date.