Item 2C: Resolution Approving Low-Income Rental Housing Property Tax Exemption for Willakenzie Crossing - and attsA-D

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ECC UGENE ITY OUNCIL AIS GENDA TEM UMMARY Adoption of Resolution 5034 Approving a Low-Income Rental Housing Property Tax Exemption for the Property Located at 3057 Willakenzie Road, Eugene, Oregon (Metropolitan Affordable Housing, Corporation/ Applicant) Meeting Date: June 27, 2011 Agenda Item Number: 2C Department: Planning and Development Staff Contact: Becky L. Wheeler www.eugene-or.gov Contact Telephone Number: 541-682-5532 ISSUE STATEMENT The City Council is asked to approve a resolution for a 20-year low-income rental housing property tax exemption for Willakenzie Crossing, located at 3057 Willakenzie Road. The developer of the project is Metropolitan Affordable Housing, Corporation (Metro). The ownership entity is Willakenzie Crossing Apartments Limited Partnership. BACKGROUND The City of Eugene utilizes federal and local subsidies to facilitate the development of housing affordable to low-income persons. Each year, the City issues a Housing Request for Proposals to identify proposed developments. The council typically awards land, federal HOME Investment Partnerships funds, and System Development Charge waivers to the selected development proposal. Once construction begins, or is near completion, developers typically apply to the City for a 20-year low-income rental housing property tax exemption. These local resources are combined with state and federal subsidies in order to achieve rents affordable to low-income persons. In addition, approving Willakenzie Crossing’s property tax exemption application reinforces the Envision Eugene pillar of providing affordable housing for all income levels. The draft Envision Eugene proposal presents strategy number 4 to meet the growing and changing housing needs of Eugene residents by supporting subsidized affordable housing projects. Continuing to provide property tax exemptions to low-income rental housing developments has been identified as an action to help successfully implement this strategy. Summary of the low-income rental housing property tax exemption program - The City adopted the low-income rental housing property tax exemption program in 1990. Since then, Eugene has approved tax exemptions for more than 20 developments with over 1,000 units. On April 13 of this year, the council unanimously approved extending the 20-year low-income rental housing property tax exemption program for an additional ten years. In addition, the approved ordinance enables recipients to reapply for the 20-year low-income rental housing property tax exemption after the initial 20-year period has expired. \\Cesrv500\cc support\CMO\2011 Council Agendas\M110627\S1106272C and attsA-D.doc