HomeMy WebLinkAboutOrdinance No. 20246
ORDINANCE NO. 20246
AN ORDINANCE CONCERNING PROPERTY TAX
EXEMPTIONS FOR MULTIPLE-UNIT HOUSING;
AMENDING SECTIONS 2.945 AND 2.947 OF THE EUGENE
CODE, ]1971; AND ~PEALING ORDINANCE NO. 20045.
THE CITY OF EUGENE DOES ORDAIN AS FOLLOWS:
section 11 Ordinance No. 20045 is hereby repealed as of the effective date of this Ordinance.
Sections 2.945 and 2.947of the Eugene Code, 1971, are amended to provide:
2.945 __M[!!fiple-Unit Housing - Properly Tax Exemption.
(1) The provisions of ORS 307.600 to 307.691 enable cities to grant local
Property tax exemptions fk>r multiple-unit housing located in core areas designated by the city. This
incentive supports the concept of a compact urban growth form, and there is a need and demand ibr
better housing at rental rates or sale prices accessible to a broad range of the general public in 'the
downtow~ area which is not likely to be produced without this incentive. This incentive is intended
to:
(a) Stimulate the construction of transit supportive multiple-unit housing
in the city's core areas to improve the balance between the residential and
commercial nature of those areas, and to ensure fhll-time use of the areas as places
where citizens of the community have an opportunity to live as well as work;
(b) Encourage the development of vacant or under utilized sites in core
areas, rather than sites where sound or rehabilitable multiple-unit housing exists;
(c) Encourage the development of multiple-unit housing, with or without
Parking, in structures that may include groined level commercial space;
(d) Encourage the development of multiple-unit housing, with or without
parking, on sites with existing single-story commercial structures;
(e) Encourage the development of multiple-unit housing, with or without
parking, on existing surface parking lots; and
(f) Preserve existing publicly assisted housing that is affbrdable to low
income persons by providing the incentives authorized in ORS 307.690 to 307.691
to existing multiple-unit housing that is subject to a low income housing assistance
contract with an agency or subdivision of this state or the United States.
(2) In order to provide the incentives described in subsection (1) of this section,
the provisions of ORS 307.600 to 307.691 are hereby adopted as the city's multiple-trait housing
property tax exemption program for the city's core area. The city's core area shall include the area
generally bounded on the west by Lincoln Street, on the south by 13th Avenue, on the east by High
Street, and on the north by the Union Pacific Railroad tracks, as more particularly described in the
standards and guidelines adopted by the city manager in the manner prescribed in section 2.019 of
Ordinance
this code. The standards and guidelines shall include provisions to relate the net financial benefit
~kom the property tax exemption to the public benefits provided by the improvements~
(3) Applications for property tax exemption hereunder shall be filed with the city
manager on or before February 1 immediately preceding the first assessment year for which
exemption is requested and shall be accompanied by an application fee. The application shall be
processed in accordance with the standards and guidelines adopted by administrative rule of the city
manager. As used in this section and section 2.947 of this code and the standards and guidelines
referred to above~ "city manager" includes the manager's designee.
(4) Upon receipt of the city manager's written recommendation, the councit shall
consider the application, the city manager's written recommendation, and any' written cornments
submitted &tdng the 30 day comment period on the application at its next scheduled meeting, if the
council falls to act on an application which has been timely referred to it as provided in the standards
and guidelines within 180 days from the date it was filed, the application shall be deemed approved
and processed thereafter in accordance with subsection (8) of this section.
(5) At the meeting at which the city manager's recommendation is considered, the
council shall adopt a resolution approving the application and granting the property tax exemption~
or adopt a resolution disapproving the application and denying the property tax exemption.
(6) In approving an application, the com~.cil must find that:
(a) In the case of the construction of, or the addition or conversion to
multiple-unit housing:
1~ The construction, addition or conversion will be completed on
or before January 1, 2006;
2. The owner has agreed to include in the construction, addition
or conversion~ as a part of the multiple-unit housing, one or more public
benefits, including but not limited to open spaces, parks and recreational
facilities, common meeting rooms, child care fhcilities, transit amenities and
transit or pedestrian design elements, or as othemdse specified in the
standards and guidelines referred to above;
3. The proposed construction, addition or conversion project is,
or will be at the time of completion, in conformance with all local plans and
planning regulations, including special or district-wide plans developed and
adopted pursuant to ORS chapters 195, 196, 197, 215 and 227, that are
appiicable at the time the application is approved;
(b) In the case of housing subject to a low income housing assistance
contract with an agency or subdivision of this state or the United States,
1~ The application for exemption was made on or before January
t, 2006;
2. It is important to the community to preserve the housing as
low income housing and it is probable that the housing would not be
produced as or remain low income housing without the exemption being
granted; and
(c) The owner has complied with all the provisions of the city's standards
and guidelines referred to above~
Ordinance - 2
Unless the council makes each of the findings, the council shall deny the application. In addition
to the owner's name and address, and a legal description or the assessor's property account number
for the subject multiple-unit housing, the resolution approving the application shall contain the above
findings and set ibrth the specific conditions of approval or exclusions therefrom arid specify the
percentage and duration of the exemption. A resolution denying an application shall set forth the
specific reasons for denial.
(7) The city' manager shall forward to fhe applicant a copy of the resolution
adopted by the council within 10 days from the date a determination is made urlder subsection (6)
above~ and on or before April 1 folloxving approval shall file with the county assessor a copy of the
resolution approving an application.
(8) With respect to an application deemed approved under subsection (4) hereof,
onor 'befbre April 1 following the expiration of the 180-day period, the city manager shall file with
the county assessor an adrninistrativ'e order containing the sarne findings and information as required
to be set fbrth in a resolution approving an application and forward a copy thereof to the applicant.
(9) In the case of a structure to which stories or other improvemems are added
or a structure that is converted in whole or in part from other use to dwelling units, only, the increase
in value attributable to the addkion or conversion shall be exempt from taxation.
(10) If the multiple-unit housing is subject to a low income rental assistance
contract with an agency of this state or the Un/ted States, the city may extend the exemption thorough
June 30 of the tax year during which the expiration date of the contract falls.
2~947
finds that:
Multiple-Un/t Housing.- Termination of Approval, Review.
(1) After a resolution approving an application has been filed, if the city manager
(a) Construction of multiple-unit housing was not completed within the
time specified in the resolution, and no extensions as provided in subsection (5)
hereof have been granted, or
(b) The applicant has failed to comply with the provisions of ORS
30T600 to 307.691~ the provisions of this code, any provisions of the standards and
guidelines adopted by the city manager, or
(c) The applicant has failed to comply with any conditions imposed in the
resolution approving the application, or
(d) Construction ofmultiple-un/t housing was not completed on or before
January 1, 2006, or
(e) In the event units within the development are sold individually, a unk
owner lb_ils to comply with applicable requiremems described in paragraphs (b) or (c)
of this section,
the city manager shall notify the council and the owner of the property, at the owner's last known
ad&ess, and to any known lender~ mailed to the lender's last~known address of the manager's
~ntention to reconnnend to the council that the exemption be terminate& The notice shatl clearly
state the reasons for the proposed termination, and shall require the owner to appear before the
council at a time specified in the notice, which shall not be less than 20 days ~kom the date the notice
was ma~ted~ to show cause, if any exists, why the exemption should not be terminated.
Ordinance - 3
(2) If the owner fails to appear and show cause why the exemption should not be
terminated, the city shall further notify every known lender and shall allow the lender a period of not
Less than 30 days, beginning with the date that the notice of failure to appear and show cause is
mailed to the lender, to cure any noncompliance or to provide adequate assurance that the
noncompliance Mll be remedied.
(3) If the owner fails to appear before the council at the time specified in the
notice, or if the owner appears and fails to show cause why the exemption should not be terminated,
arid a lender fails to cure or give adequate assurance that any noncompliance w~ll be cured, the
council shall adopt a resolution terminating the exemption, which shall contain its findings in
support thereof. Copies of the resolution shall be filed with the county assessor and mailed to the
property owner~ at the owner's last address, and to any lender at the lender's last-known address,
witl:fin 10 days from the date adopted. Ifa determination is made that the exemption should continue
as previously granted, the council shall enter written findings of record in support of/he continued
exemption and forward a copy' thereof to the property owner and to any lender within 10 days from
the date of the hearing.
(4) All reviews of council action in denying, approving, or terminating an
application shall be governed by the procedures set forth in ORS 34.010 to 34.100, and correction
of assessments and tax rolls and the evaluation of the property shall be in conformity' with subsection
(2) of ORS 307.680~ The council's action on an exemption shall not be a land use decision for
purposes of administrative review.
(5) [f construcfion, addkion, or conversion of multiple-unit housing is not
completed by January 1, 2006, upon receipt of a request from the property owner, the council may,
by resolution~ extend the deadline for completion of construction of multiple-unit housing for a
period not to exceed 12 consecutive months~, if it finds the failure to complete construction by the
time specified in the resolution was due to ckcumstances beyond the control of the owner~ and that
the owner had been and could reasonably be expected to act in good faith and w4th due diligence.
(6) In an5' event, no multiple-unit housing granted an exemption by the council
shall be exempt from ad valorem taxation fbr more than 10 successive years. The first year of
exemption shallbe the assessment year beginning January I immediately following the calendar year
in which construction, addkion or conversion is completed, determined by that stage in the
construction process when, pursuant to ORS 307.330 the improvement would have gone on the tax
rolls in the absence of the exernption. The exemption shall not include the land~ nor any
improvements located thereon that are not a part of the multiple-unit housing but may include
parking constructed as part of the multiple-unit housing construction, addition or conversion, and
shall be in addition to any- other exemption provided by law. However, no property shall be exempt
beyond 100 percent of its real market value.
(7) Any exemption g~anted by the council shall terminate immediately, withom
fight of notice or appeal, in the event the county assessor determines that a change of use to other
than residential or housing has occurred for the multiple-use housing, or portion thereof, or if a low
income housing assistance contract wSth an agency or subdivision of this state or the United States
is breached or terminated prematurely, or a declaration as defined in ORS 100~005 (12) is presented
to the county assessor or tax collector for approval in connection therewith. Termination shall be
in accordance with the provisions of ORS 307.675.
Ordinance - 4
~ction3_~ The City Recorder~ at the request of, or with the concurrence of the City Attomey,
is authorized ~o administratively correct any re~rence errors contained herein or in other provisions
of the Eugene Code~ t 97 I~ to the provisions added, amended or repealed herein.
Recorder
Approved 'by the Mayor this
28~h day of January, 2002.
Mayor
Ord~nar~ce ~ 5