Item B: Multi-Unit Property Tax Exemption Program

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ATTACHMENT A MUPTE PROJECT: Minimum Threshold Criteria The following are options that could be considered as “minimum threshold criteria” which each MUPTE project would be required to meet to be considered for approval. Density OBJECTIVE: Promote compact urban development and efficient transportation options, mixed- use development, maximize the efficient use of land, and meet the multi-family housing needs within the existing Urban Growth Boundary. Option 1:  Mirror state statute – 5 or more units Option 2:  For Mixed-Use projects (housing above commercial): 5 or more units  For Housing-only projects: Exceeds minimum density code requirement (for example, 2x minimum density) Project Need OBJECTIVE: Verify that the project would not be built “but for” the tax exemption. Option 1:  10-year pro forma reviewed by staff, the Loan Advisory Committee (or newly created panel, third party), and City Council.  If the overall rate of return at the end of the exemption period exceeds 10 percent (“cap”), then a payment equal to 25 percent of the earnings in excess of the cap will be made to the City.  Payments made under the cap provision shall be used by the City in support of local affordable housing needs, or other City needs. Option 2:  10-year pro forma reviewed by staff, the Loan Advisory Committee (or newly created panel, or third party), and City Council.  If the rate of return is projected to exceed 10 percent (“cap”) during the 10-year period, then one of the following shall be considered: Shorten the period of exemption. o Applicant will have the option to add public benefit features (ex. open space, affordable o units, higher quality materials). Applicant will have the option to agree to make payments to the City in lieu of the tax o exemption in later years.