Item 3C: Adoption of Resolution 4854 Concerning the Low-Income Rental Housing Property Tax Exemption Granted Redwood Partners

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ECC UGENE ITY OUNCIL AIS GENDA TEM UMMARY Adoption of Resolution 4854 Concerning the Low-Income Rental Housing Property Tax Exemption Granted Redwood Partners, LLC., and Amending Resolution No. 4853 Meeting Date: October 24, 2005 Agenda Item Number: 3C Department: Planning and Development Staff Contact: Richie Weinman www.eugene-or.gov Contact Telephone Number: 682-5533 ISSUE STATEMENT The City Council is asked to amend a previously approved resolution, correcting an error in the legal description, related to a low-income housing tax exemption. The resolution grants a twenty-year th property tax exemption for Redwood Park Apartments at 4103 W. 18 Avenue. BACKGROUND On August 8, 2005, the council approved a low-income housing tax exemption for Redwood Park Apartments. Due to an error in their initial application, the property was not described accurately and the adopted resolution does not, therefore, accurately describe the project. This revised resolution corrects this error, and identifies the new name of the partnership owning the project. Otherwise, the project remains exactly as the council approved it. A key element in creating low cost affordable housing for low-income households is an exemption from property taxes for twenty years. A property tax exemption plays a very significant role in reducing th rents. Redwood Park, at the northwest corner of 18 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 then 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. It 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. RELATED CITY POLICIES 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. L:\CMO\2005 Council Agendas\M051024\S0510243C.doc