Article provided as an update to the Laurel Hill Valley Citizens Summer 2026 Newsletter
Floral Hill Terrace Update: Application Paused, Community Concerns Remain
Residents of the Laurel Hill Valley neighborhood have been closely monitoring a proposed housing development at 2725 Floral Hill Drive, known as Floral Hill Terrace (Application FHT ST 26-2). The project, submitted by DevNW, a nonprofit affordable housing developer, proposes a 40 unit Community Land Trust subdivision consisting of multiplex middle housing units along the upper reaches of Floral Hill Drive.
(Photo credit Sebastiane Power)
Where Things Stand
On June 5, 2026, the City of Eugene Planning Division formally notified DevNW that its land use application has been deemed incomplete. The reviewing city planner cited multiple missing or insufficient materials across the Tentative Subdivision, twelve Middle Housing Land Division, and Adjustment Review components of the application. Under Oregon law, DevNW has 180 days from the original filing date to supply the missing information; if no materials are submitted within that window, the application becomes void. The committee anticipates the developer will address the identified deficiencies and resubmit in the near term.
The project’s primary financing, an $8.1 million forgivable loan through Oregon Housing and Community Services (OHCS) LIFT HO program, remains uncommitted. DevNW is currently on a wait-list and has indicated confidence in securing funding in the 2027 cycle. Without this funding, the project likely will not proceed as proposed. Additionally, the full committee of the Eugene Affordable Housing Trust Fund did not recommend additional dollars for the project in the 2026 funding cycle. Eugene City Council will make the final decision at its July 13, 2026 meeting.
Community Concerns
Throughout the review process, Laurel Hill Valley residents have raised a range of concerns about the project’s readiness and compatibility with the neighborhood’s existing infrastructure.
Road Access and Infrastructure: Floral Hill Drive is a narrow, winding road that residents say is already strained under current traffic loads. The proposed development would bring dozens of new residential units and the vehicles that come with them onto a corridor with limited width, no sidewalks, and few connections to transit or essential services. Walkability and access to public transportation were repeatedly cited by neighbors as unresolved challenges for future residents.
A Larger Footprint on the Horizon: The current application may not represent the full scope of development DevNW envisions for this corridor. In its own written statement, DevNW notes that the project’s internal street network is deliberately designed to connect to neighboring properties, describing an unannexed three acre parcel to the north, currently home to a single residence, as “a likely property for future development.” A second undeveloped parcel to the south is also identified as a future connection point. Residents have raised concerns that the infrastructure being built today is sized and positioned to serve a significantly larger development footprint than the 40 units currently proposed, and that cumulative impacts on traffic and road capacity have not been fully accounted for.
Wildfire Safety: The Laurel Hill Valley sits within a designated Wildland Urban Interface zone, a designation confirmed in the Draft Eugene Springfield Community Wildfire Protection Plan 2026. At a recent Town Hall, Oregon State Fire Marshal Travis Medema outlined three key safety benchmarks for new development in the Wildland Urban Interface: adequate water supply for fire suppression, reliable emergency access and egress for fire personnel, and fire resistant construction standards for new buildings. Residents have pointed to a 2025 house fire on Floral Hill Drive, in which fire crews arrived after the structure had already collapsed, as a concrete illustration of the access challenges facing emergency responders on the road. Historical fire events in the region, including major fires in 1966 and 2020, further underscore the area’s vulnerability.
For more in depth information on the concerns regarding this development,
visit http://www.IsFloralHillTheRightPlace.com
What Comes Next
The committee will continue to monitor the application’s status and DevNW’s response to the City’s incompleteness determination. Residents who wish to weigh in on the OHCS funding decision are encouraged to submit public comments to Jessica MacKinnon at OHCS (jessica.mackinnon@hcs.oregon.gov) before the September 2026 deadline. That funding decision represents a pivotal moment for the project’s future.
The committee will provide further updates as developments warrant.
For more in depth information on the concerns regarding this development,
visit http://www.IsFloralHillTheRightPlace.com
Residents with questions are welcome to reach out to Julie Rossberg at gpeppers@gmail.com.
This article was written by the The Laurel Hill Valley Neighborhood Association’s Land Use Review Committee co-chaired by Joe Young and Julie Rossberg for the July issue of the Laurel Hill Valley Citizens Summer Newsletter. The Committee has been evaluating the Tentative Subdivision Plan for a housing development at 2725 Floral Hill Drive, known as Floral Hill Terrace (Application FHT ST 26-2). The project, submitted by DevNW, a nonprofit affordable housing developer, proposes a 40-unit Community Land Trust subdivision consisting of 22 buildings on less than 4 acres many of them 3 story four-plexes of middle housing units along the upper reaches of Floral Hill Drive.
