Item 1: Ordinance on MUPTE Boundary

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ECC UGENE ITY OUNCIL AIS GENDA TEM UMMARY Public Hearing: An Ordinance Concerning Multiple-Unit Housing Property Tax Exemption and Amending Sections 2.945 and 2.947 of the Eugene Code, 1971 Meeting Date: July 21, 2008 Agenda Item Number: 1 Department: Planning and Development Staff Contact: Richie Weinman www.eugene-or.gov Contact Telephone Number: 682-5533 ISSUE STATEMENT The Mayor and City Council requested a public hearing to discuss the boundary and selection criteria associated with the Multi-Unit Property Tax Exemption Program (MUPTE), section 2.945 of the Eugene Code, 1971. BACKGROUND The MUPTE program is enabled by state statute. In 1975, the Oregon legislature adopted the enabling statutes for the MUPTE program as an incentive tool to complement the state land-use laws that were approved in 1973. The intent was to “stimulate the construction of rental housing in the core areas of Oregon’s urban centers…” Eligible developments must be five units or more, and provide a public benefit, as determined by the local jurisdiction. The program enables a ten-year property tax exemption on housing improvements. The land and any non-housing improvements continue to be taxed. The exemption applies to taxes owed to all jurisdictions because School District 4J also formally accepted the provisions. This is permissible under state law because Eugene and 4J together collect over 50% of the property taxes. Each application for an exemption must be approved by the council on a case-by-case basis. The state enabling legislation sunsets in 2012 unless extended during a future legislative session. If that occurs the City must then also adopt the revised provisions in order to continue offering the program. Council Action History In July 1977, the City Council adopted the provisions of this state-authorized tax exemption program through a resolution that included “. . . to complement the Eugene Community Goals and Polices adopted in 1974 which stated that ’High density dwellings should be encouraged close-in to accommodate those people who prefer to live near the center of activity’…” Since that time both the state statutes and Eugene’s implementation of them have been amended. For instance, the statutes now allow multi-family ownership in addition to rental housing. The following is a summary of related council actions during the last twelve years: Z:\CMO\2008 Council Agendas\M080721\S0807211.doc