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ownership multi-unit housing within the MUPTE boundary (see Exhibit A “MUPTE Boundary”). The exemption is granted on the new investment for a maximum of 10 years. (The land and non-housing value of the project is not included in the exemption). Projects must include a minimum of five new housing units. Tax exemption requests are reviewed and approved by City Council. Example: The Tate Condominiums The Tate Condominiums received a MUPTE in 2004 for new construction of 47 units. The annual tax exemption (to be granted to condo owners) in 2006 was estimated at $285,000, and is estimated to total $3.2 million over the 10-year period. Other examples include Broadway Place and High Street Terrace. Downtown Eugene Vertical Housing Development Zone: Vertical Housing Development Zone Summary ? Mixed-Use (ground level commercial and 1 or more levels of housing) ? 20% tax exemption per housing floor; 80% maximum ? 10-year property tax exemption Established under state law in 2001, vertical housing development zones encourage dense "mixed-use" development and redevelopment in urban cores. Specifically, an eligible project consists of ground-level commercial with one or more upper floors of residential housing that has been newly constructed, reconstructed, or rehabilitated. The Downtown Eugene Vertical Housing Development Zone was established in 2003 and matches the Downtown Plan boundary (see Exhibit B “Vertical Housing Development Zone Boundary”). The program offers a 10-year property tax exemption on the new structure, or incremental change in the property value of the building that comprises the project. The program grants a tax exemption of 20% for each floor of housing that is incorporated above ground floor commercial, with a maximum tax exemption of 80% for any single project. Tax exemption requests are reviewed and approved by the State of Oregon. The exemption is effective upon initial occupancy or re-occupancy and does not require City Council approval. No exemptions have been granted under this program to date. Example: A $25 million 3-story building, with 2-levels of housing would receive a 40% property tax exemption (20% for each floor of housing). Overall, the total annual property tax exemption would be approximately $100,000 and would be $1 million over the 10-year period. E. Affordable Housing Tools Affordable Housing Summary ? Low-Income Housing Tax Credits State administered o Equity for mixed-income or entirely affordable projects o ? Other potential tools for downtown: SDC Waivers, Property Tax Exemption, and Homeownership Assistance Program The City has developed a set of tools to invest in the development of affordable rental and ownership housing that is affordable to low-income households. The tools are typically used in combination with one another and with other subsidies allocated at the state level to make up the difference between development costs and the rents paid by low-income residents. The typical affordable rental housing development uses between 10 and 15 sources of funding to cover all necessary costs. The majority of the affordable housing resources may not be applicable to many downtown developments with the largest exception being the use of Low-Income Housing Tax Credits. Low Income Housing Tax Credits support the investment in affordable housing by providing equity for mixed-income or entirely affordable projects. The Federal program is administered by the State of Oregon.