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ATTACHMENT A Multi -Unit Property Tax Exemption ( MUPTE) Program MINIMUM THRESHOLD CRITERIA To be considered for MUPTE approval, projects must meet the following minimum threshold requirements. Terms and conditions not fully defined herein will be further defined by an updated administrative rule: • Eligible Boundary — Projects must be located within the boundary illustrated on the map attached as Exhibit A. • Density —For mixed -use projects (housing above commercial), the structure must have five or more dwelling units. For housing -only projects, the project must meet a density threshold that is greater than the minimum allowed in the Eugene code. • Project Need — Analysis of the project pro forma must establish that the project would not be built but for the benefit of the tax exemption. The applicant must submit documentation, including a pro forma and an analysis of the projected rate of return for the proposed project demonstrating that the anticipated overall rate of return for the project (with MUPTE) for the maximum period of exemption (10 years) will not exceed 10 percent. The pro forma and assumptions will be reviewed and adjusted by a MUPTE review panel. o If the projected overall rate of return for the maximum exemption period is below 10 percent, and the Minimum Threshold Criteria is met, the project is eligible to receive the maximum 10 -year exemption. o If the projected overall rate of return for the maximum exemption period is above 10 percent: - The term of the exemption will be decreased by the number of years necessary to bring the rate of return down to 10 percent, or - The applicant can add project elements included in the Additional Public Benefit Criteria to increase the term of the exemption up to 10 years Green Building — The project must be built to meet a minimum green building standard of LEED Silver or an equivalent standard acceptable to City. • Neighborhood Contact — Although neighborhood association support is not required for MUPTE approval, the application must include evidence that the applicant made an effort