Item 5: Low-Income Rental Housing Property Tax Exemption - River Road

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The Community Development Manager’s proposed Report and Recommendation evaluating the exemption is attached (Attachment A). Housing Policy Board Review While not required by City Code or the adopted standards and guidelines, staff requested that the Housing Policy Board review the application for consistency with City Code and housing policies. A volunteer committee of the board held a public meeting on October 23, 2012. The meeting was attended by neighbors, neighborhood leaders, and the applicant. Committee members discussed each code criteria, the standards and guidelines, and the applicant’s responses. The members of the Housing Policy Board Committee agreed the application met criteria set forth in City Code, yet ended the meeting with a request that staff follow up with the City Attorney regarding the applicability of the Housing Dispersal Policy (HDP). After review, the City Attorney advised that the HDP’s policy of discouraging more than 60 units of “subsidized housing” is expressly limited by the HDP to housing for families at or below the 50 percent of median income. Since the Evergreen Housing project is for families at 60 percent of median income level, the City Attorney advised that the HDP policy is not applicable. 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. In 2011, the council unanimously approved extending the 20-year low-income rental housing property tax exemption program for an additional 10 years. The approved ordinance also permits 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 St. Vincent de Paul’s Stellar Apartments in July 2012. Approval of the low-income rental housing property tax exemption If an application meets the substantive criteria [EC 2.939(2)(a)-(i) or EC 2.939(3)(a)-(e)] as referenced in the Community Development Manager’s Draft Report and Recommendation (Attachment A), the City must grant the exemption by resolution. A decision to deny the exemption cannot be made by simple motion or inaction; it would need to be made by a resolution that explains how the applicant has failed to demonstrate that the tax exemption meets applicable criteria for approval. RELATED CITY POLICIES The proposed tax exemption supports multiple City priorities and policies including the Eugene- Springfield 2010 Consolidated Plan, Growth Management Policies, the Housing Dispersal Policy, and Envision Eugene. Eugene-Springfield 2010 Consolidated Plan - As noted previously, the proposed project directly supports the goals of the Plan by creating 216 units for low-income families and individuals. S:\CMO\2012 Council Agendas\M121119\S1211195.doc