Item 2D: Resolution on Low-Income Rental Housing Property Tax Exemption for City View Street

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ECC UGENE ITY OUNCIL AIS GENDA TEM UMMARY Action: A Resolution Approving a Low-Income Rental Housing Property Tax Exemption for the Property Located at 1535-1563 City View Street, Eugene, Oregon (St. Vincent De Paul Society of Lane County, Inc./Applicant) Meeting Date: July 23, 2012 Agenda Item Number: 2D 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 Stellar Apartments, located at 1535-1563 City View Street. The developer of the project is St. Vincent de Paul Society of Lane County, Inc. (SVDP). The ownership entity is Stellar 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 Systems Development Charge waivers to the selected development proposal. These local resources are combined with state and federal subsidies in order to achieve rents affordable to low-income persons. In addition, approving Stellar Apartment’s property tax exemption application reinforces the Envision Eugene pillar of providing housing affordable to all income levels. The Envision Eugene Housing Affordability Pillar includes strategies 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 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. In 2011, the council unanimously approved extending the 20-year, low-income rental housing property tax exemption program for an additional ten years. The approved ordinance also enables recipients to reapply for the 20-year, low- income rental housing property tax exemption after the initial 20-year period has expired. The council reviews each tax exemption request on a case-by-case basis. Most recently, the council approved a low-income rental housing tax exemption for Metropolitan Affordable Housing’s Willakenzie Crossing Apartments in June, 2011. If an application meets the substantive criteria [EC 9.239(2)(a)-(i)] as referenced in the Report and Recommendation (Attachment A), the City must grant S:\CMO\2012 Council Agendas\M120723\S1207232D.doc