Item 4 - Low-Income Prop Tx Ex. - Laserfiche WebLink

Home Browse Search

Richie Weinman Wednesday, July 28, 2004 City of Eugene 99 W. 104 Avenue Eugene Oregon 97401 Re: property tax exemptions for affordable housing The property tax abatement for affordable housing granted by the City of Eugene is a critical component in the development of our housing projects. The tax abetment helps us make housing projects pencil out initially and contributes to the overall affordability of the project. The tax exemption allow projects to move forward that would otherwise not be financially feasible and helps ensure that rental rates remain low enough to serve members of the community at the lower end of the earning spectrum who are desperately in need of housing. Property tax assessment is nuanced and complex, but simple calculations indicate that property tax abatement saves St. Vincent de Paul $92,867.00 per year in property taxes on our 60 unit affordable housing development, Santa Clara Village and directly results in more affordable rents for our tenants. The savings calculations are based on hard construction costs and assessed value of the land and millage rates provided by the county assessors office. Millage rates and assessed values are subject to change. In addition, new bond measures can increase the property tax assessed and the retirement of existing bonds can cause an decrease in tax assessed. The abatement of property taxes directly benefits those in our communities who are most in need of help and aid in the provision of desperately needed housing. This housing is often the critical factor in allowing people to move towards a better life, rather than continuing to spiral downward into homelessness. Regards, Robert Ault St. Vincent de Paul of Lane County 541-687-5820 ext 139 rault~svdp.us