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EUGENE CITY COUNCIL AGENDA ITEM SUMMARY Adoption of Resolution 4853 Approving A Low-Income Rental Housing Property Tax Exemption For The Property Located At 4103 West 18th Avenue, Eugene, Oregon (Assessor's Number 0718914) (Redwood Partners, LLC.) Meeting Date: August 8, 2005 Agenda Item Number: 2E Department: Planning and Development Staff Contact: Richie Weinman www. eugene-or, gov Contact Telephone Number: 682-5533 ISSUE STATEMENT City Council is asked to consider a resolution related to a low-income housing tax exemption. The resolution grants a 20-year property tax exemption for Redwood Park Apartments at 4103 W. 18th Avenue. BACKGROUND The council has a history of supporting low-income housing tax exemptions and has approved virtually every request to date from either non-profit or for-profit developers. Since 1987, one of the City Council's annual goals has related to homelessness or increasing the availability of low-income housing. For low-income households, this typically requires subsidies. Support for low-income housing also is found in the City's Growth Management Goals and the adopted HUD Consolidated Plan. A key element in creating low cost affordable housing for low-income households is an exemption from property taxes for 20 years. A property tax exemption plays a significant role in reducing rents. Redwood Park, at the northwest corner of 18th Avenue and Bertlesen Road., is currently a market-rate development that is proposed to be purchased, substantially rehabilitated, and then rented exclusively to low-income tenants. The project will also include adding 16 new low-income units. The proposed property tax exemption will both enable this project to proceed and will result in an average per-unit monthly savings of $40 to $50 for the tenants. The Housing Policy Board reviewed this proposal on December 6, 2004 and discussed the value of public/private partnerships for low-income housing and the benefit of adding a substantial number of units to the low-income housing stock for a comparatively small subsidy. The HPB determined there was no conflict with Eugene's Housing Dispersal Policy and unanimously recommended approval. Financial and/or Resource Considerations The City and other local taxing districts forgo revenue when property is exempted from taxes. This is an existing housing development that has a 2004 taxable value of $2,408,252 and paid $44,275.66 in L:\CMO\2005 Council Agendas\M050808\S0508082E.doc