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HomeMy WebLinkAboutResolution No. 4917 ....:.~= COUNCIL RESOLUTION NO. 4917 A RESOLUTION APPROVING A LOW-INCOME RENTAL HOUSING PROPERTY TAX EXEMPTION FOR THE PROPERTY LOCATED AT 1025 WEST 7TH AVENUE, EUGENE, OREGON _ (ASSESSOR'S PROPERTY ACCOUNT NUMBER 0473015). (ST. VINCENT DE PAUL SOCIETY OF LANE COUNTY, INC.) PASSED: 8:0 REJECTED: OPPOSED: ABSENT: RECUSED: CONSIDERED: October 8, 2007 RESOLUTION NO. 4917 A RESOLUTION APPROVING A LOW-INCOME RENTAL HOUSING PROPERTY TAX EXEMPTION FOR THE PROPERTY LOCATED AT 1025 WEST 7TH AVENUE, EUGENE, OREGON (ASSESSOR'S PROPERTY ACCOUNT NUMBER 0473015). (ST. VINCENT DE PAUL SOCIETY OF LANE COUNTY, INC.) The City Council of the City of Eugene finds that: A. The St. Vincent de Paul Society of Lane County, Inc. (705 S. Seneca Road, Eugene, Oregon 97402) is the owner of real property located at 1025 West 7th Avenue, Eugene, Oregon, 97402 (Assessor's Property Account Number 0473015), and has submitted an application pursuant to Subsection 2.939(2) of the Eugene Code, 1971, for an exemption from ad valorem taxes under the City's Low-Income Rental Housing Property Tax Exemption Program (Sections 2.937 to 2.940 of the Eugene Code, 1971). B. The proposed project consists of the development of a 12-unit complex (4 units will be available for participants with HUD V ASH Section 8 vouchers and will pay no more than 30% of their monthly income in rent; 3 units will be available for veterans eligible for VA Grant Per Diem payments and no rent will be charged for these units; 5 units will be rented at $230 per month) which will provide transitional and permanent housing for chronically homeless Lane County veterans. Intensive case management, counseling and health care will be provided in partnership with the Lane County VA clinic. C. The Report and Recommendation of the Director of the Planning and Development Department ("the Director"), as designee of the City Manager, attached as Exhibit A, recommends that the application be approved and the exemption granted. In making that recommendation, the Director found that the applicant submitted all materials, documents and fees required by the application and the City as set forth in Section 2.939(2) of the Eugene Code, 1971, and is in compliance with the policies set forth in the Standards and Guidelines adopted by Resolution No. 4623. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF EUGENE, a Municipal Corporation of the State of Oregon, as follows: Section 1. Based upon the above findings, and the findings in the Director's Report and Recommendation attached as Exhibit A which are adopted, the City Council approves the application of St. Vincent de Paul Society of Lane County, Inc. for an ad valorem property tax exemption under the City's Low-Income Rental Housing Property Tax Exemption Program for the property located at 1025 7th Avenue, Eugene, Oregon (Assessor's Property Account Number 0473015), subject to the following condition: Resolution - 1 Upon completion of construction, the project shall consist a 12-unit complex (4 units will be available for participants with HUD V ASH Section 8 vouchers and will pay no more than 30% of their monthly income in rent; 3 units will be available for veterans eligible for V A Grant Per Diem payments and no rent will be charged for these units; 5 units will be rented at $230 per month) which will provide transitional and permanent housing for chronically homeless Lane County veterans. Section 2. That the land and units described in Section 1 above are declared exempt from local ad valorem property taxation commencing July 1, 2008, and continuing for a continuous period of twenty (20) years unless earlier terminated in accordance with the provisions of Section 2.940 of the Eugene Code, 1971, which provides for termination after an opportunity to be heard if: 2.1 Construction or development of the exempt property differs from the construction or development described in the application for exemption, or was not completed by January 1,2010, and no extensions or exceptions were granted; or 2.2 The property owner fails to comply with provisions of ORS 307.515 to 307.523, provisions of the Eugene Code, 1971, the Standards and Guidelines adopted by Council Resolution No. 4623, or any conditions imposed in this Resolution. The tax exemption shall be terminated immediately, without right of notice or appeal, pursuant to the provisions of ORS 307.531 in the event: 2.3 The exempt property is being held for future development of low income rental housing and it is used for any purpose other than the provision of low income rental housing; or 2.4 The county assessor determines that a change of use to other than that allowed has occurred for the housing unit, or portion thereof, or, if after the date of this approval, a declaration as defined in ORS 100.005 is presented to the county assessor or tax collector for approval under 0 RS 100.110. Section 3. The City Manager, or the Manager's designee, is requested to forward a copy of this Resolution to the applicant, and to the other taxing affected districts, within ten days from the date of adoption of this Resolution, and to cause a copy of this Resolution to be filed with the Lane County Assessor on or before April 1, 2008. Section 4. This Resolution shall become effective immediately upon its adoption. The foregoing Resolution adopted and effective t e 8th day of October, 2007. I~~~ Resolution - 2 REPORT AND RECOMMENDATION of the Director of the Planning and Development Department Application of St. Vincent de Paul Society of Lane County, Inc. For Low Income Rental Housing Property Tax Exemption (Section 2.937 to 2.940 of the Eugene Code, 1971) for Property at 1025 West 7th Avenue, Eugene, Oregon The Director of the Planning and Development Department of the City of Eugene finds that: 1. St. Vincent de Paul Society of Lane County, Inc. (SVDP) is the owner of the real property located at 1025 West 7th Avenue, Eugene, Oregon (Assessor's Property Account Number 0473015), as more particularly described in its application submitted pursuant to Subsection 2.939(2) of the Eugene Code, 1971 (EC), for an exemption from ad valorem taxes under the City's Low Income Rental Housing Property Tax Exemption Program (Sections 2.937 to 2.940 of the Eugene Code, 1971). 2. I have reviewed the application and find: 2.1 The applicant has submitted all materials, fees, and documents required by the application, and is in compliance with the provisions of EC 2.939(2)(a)-(i). Specifically I find: (a) and (b) The property subject to the property tax exemption is occupied solely as a residence for low-income persons. (c) The required rent payment will reflect the full value of the property tax exemption. (d) The housing units on the property were constructed after February 12, 1990. (e) The policies set forth in the Standards and Guidelines for Low-Income Rental Housing Property Tax Exemption adopted by council Resolution No. 4623 as required in Sections 2, 3 and 5, have been met. The findings for policies contained in Section 2 are identical to those in EC 2.939(2) and those findings are being addressed in this section. The findings for policies contained in Sections 3 and 5 are as follows: 3.1 An exemption is being requested for all of the property located at 1025 West 7th Avenue, Eugene, Oregon. 3.2 The purpose of the project is to provide transitional and permanent housing for chronically homeless Lane County veterans. Intensive case management, counseling and health care will be provided in partnership with the Lane County VA clinic. The project consists of the development of a 12-unit complex (4 units will be available for participants with HUD V ASH Section 8 vouchers and will pay no more than 30% of their monthly EXHIBIT A to Resolution No. 4917 -- Report and Recommendation - 1 income in rent; 3 units will be available for veterans eligible for VA Grant Per Diem payments and no rent will be charged for these units; 5 units will be rented at $230 per month). 3.3 A certification of the income levels of low-income occupants is attached to the application. 3.4 The tax exemption will benefit project occupants in that the rents proposed for this proj ect will range from 30% of participant income to $230 per month. This is a rent affordable to persons at or below 35% median income. The effective annual operating income for the project is $3,400 per year. With property taxes, the project would have an operating deficiency of approximately $3,000 per year. 3.5 and 3.6 The property will be occupied solely as a residence for low-income persons as evidenced by a statement of SVDP's Executive Director attached to the application. 3.7 The application is not for an exemption described in subsection 2.10 of the Standards and Guidelines for Low-Income Rental Housing Property Tax Exemption. 3.8 The property is not being held for the future development of low income rental housing. 5.1 SVDP has agreed to execute and maintain in effect for the duration of the tax exemption period, Rent Regulatory Agreement. 5.2 The owner has consented in writing that for the duration of the tax exemption period, the city may inspect the property for which the exemption is granted. (f) The proposed development is consistent with the city's housing dispersal policy. (g) The proposed development will cause displacement of low- income persons, however, a relocation plan is in place. All HUD notices have been given and relocation costs are being provided by the City contracted Relocation Specialist. All effected tenants will be provided better and more affordable housing. (h) The proposed development does not cause destruction of historic properties (as defined in section 9.202 of this code). (i) The proposed development is otherwise consistent with the Eugene Code, 1971, and adopted city regulations and policies. Therefore, based on the above findings, the proposed project conforms with all applicable City Code provisions, local plans, planning regulations, the Metropolitan Area General Plan, and the criteria set forth in the City's adopted Standards and Guidelines for EXHIBIT A to Resolution No. 4917 -- Report and Recommendation - 2 Low-Income Rental Housing Property Tax Exemption, and I recommend that the application be approved. Dated this 3rd day of October, 2007. Isl Susan Muir Susan Muir Executive Director Planning and Development Department, City of Eugene EXHIBIT A to Resolution No. 4917 -- Report and Recommendation - 3