Item 2D: Resolution on Low-Income Housing Tax Exemption

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Twelve of the units will be used for providing permanent low-income rental housing for the veterans. One unit will be used for an on-site manager familiar with the needs and characteristics of the tenants. It is anticipated that the manager will be a low-income occupant, as well. 3.3 A certification of the income levels of low-income occupants is attached to the application. 3.4 The tax exemption will benefit project occupants in that the tenants will pay no more than 30% of their annual income in rent. Operating costs for this project are estimated at $65,000. Grant funds will pay $42,000 of the operating costs for the next two years and it is anticipated that the grant will be extended indefinitely. Rents will be applied to the annual operating budget which will leave the project with $13,000 to fund services not covered by the current grant. Estimated services based on a current population of five participants are $10,000 per year, which leaves an estimated $3,000 to cover eight additional veterans. Without the tax exemption, the service deficit would increase substantially. 3.5 and 3.6 The property will be occupied solely as a residence for low-income persons as evidenced by a statement of SVDP's Executive Director attached to the application. 3.7 The application is not for an exemption described in subsection 2.10 of the Standards and Guidelines for Low-Income Rental Housing Property Tax Exemption. 3.8 The property is not being held for the future development of low income rental housing. 5.1 SVDP has agreed to execute and maintain in effect for the duration of the tax exemption period, Rent Regulatory Agreement. 5.2 The owner has consented in writing that for the duration of the tax exemption period, the city may inspect the property for which the exemption is granted. (f) The proposed development is consistent with the city's housing dispersal policy. (g) The proposed development will cause displacement of low- income persons, however, HOME grant funds of $104,000 have been allocated for relocation of current eligible tenants and the City has hired a consultant who is working with St. Vincent de Paul Property Management staff to identify comparable units for affected tenants. (h) The proposed development does not cause destruction of historic properties (as defined in section 9.202 of this code). (i) The proposed development is otherwise consistent with the Eugene Code, 1971, and adopted city regulations and policies. EXHIBIT B -- Report and Recommendation - 2 LICMOl2006 Council AgendaslM0604l 0lS0604l 02D-attC.doc