HomeMy WebLinkAboutItem 2C: Resolution on Low-Income Housing
ECC
UGENE ITY OUNCIL
AIS
GENDA TEM UMMARY
Adoption of Resolution 4955 Approving A Low-Income Rental Housing Property Tax
Exemption For The Property Located At 1070 West 6th, Eugene, Oregon (Assessor’s
Property Account Number 0473056). (St. Vincent dePaul Society of Lane County, Inc.)
Meeting Date: September 22, 2008 Agenda Item Number: 2C
Department: Planning and Development Staff Contact: Richie Weinman
www.eugene-or.gov Contact Telephone Number: 682-5533
ISSUE STATEMENT
The City Council is asked to consider a resolution related to a low-income housing tax exemption. The
resolution grants a twenty-year property tax exemption for St. Vincent dePaul’s (SVDP) Vet Lift Phase
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III project at 1070 West 6 Avenue.
BACKGROUND
The City of Eugene has a history of supporting increases to the supply of low-income housing. In order
to address the need, the council has adopted a variety of subsidy tools. One tool is the 20-year low-
income tax exemption. The council reviews each request on a case-by-case basis.
The City and other local taxing districts forgo revenue when property is exempted from taxes. A
property tax exemption plays a very significant role in reducing rents. This particular project will serve
chronically homeless veterans, a severely under-served population with very limited resources. The
development will have ten housing units and the residents will also receive intensive case management
services.
This project is supported by the Housing Policy Board. The council has previously approved $400,000
of Community Development Block Grant (CDBG) funds to assist St. Vincent dePaul with acquisition of
the property and relocation of tenants. The City is also making an $118,201 CDBG loan for
rehabilitation. The loan is at 0% interest with payments deferred until the property is sold or transferred.
RELATED CITY POLICIES
Since 1987, the City Council has adopted annual goals related to homelessness and increasing the
availability of low-income housing. A current goal is to “Help the Homeless in Eugene.” For low-
income households, this always requires subsidies. Support for low-income housing also is found in the
City’s Growth Management Goals and the adopted HUD Consolidated Plan.
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COUNCIL OPTIONS
The City Council may approve or deny the tax exemption.
CITY MANAGER’S RECOMMENDATION
The City Manager recommends the approval of the resolution granting a 20-year property tax exemption
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to the SVDP Vet Lift Phase III Project at 1070 West 6 Avenue.
SUGGESTED MOTION
Move to adopt a resolution approving a low-income rental housing property tax exemption for the
property located at 1070 West 6th, Eugene, Oregon (Assessor’s property account number 0473056). (St.
Vincent de Paul society of Lane County, Inc.)
ATTACHMENTS
A. Resolution to Approve
B. Resolution to Deny
C. PDD Director’s recommendation
FOR MORE INFORMATION
Staff Contact: Richie Weinman
Telephone: 682-5533
Staff E-Mail: richie.d.weinman@ci.eugene.or.us
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ATTACHMENT A
RESOLUTION NO. _____
A RESOLUTION APPROVING A LOW-INCOME RENTAL HOUSING
PROPERTY TAX EXEMPTION FOR THE PROPERTY LOCATED AT 1070
TH
WEST 6 AVENUE, EUGENE, OREGON. (ST. VINCENT DE PAUL SOCIETY
OF LANE COUNTY, INC., APPLICANT.)
The City Council of the City of Eugene finds that:
A.
The St. Vincent de Paul Society of Lane County, Inc. (P.O. Box 24608, Eugene, Oregon
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97402) is the owner of real property located at 1070 West 6 Avenue, Eugene, Oregon, 97402
(Assessor’s Property Account Number 0473056), 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 10 one-bedroom units varying in
size from 512 square feet to 646 square feet, and a community space of 880 square feet. The community
space will serve chronically homeless veterans and house an office for the VA Homeless Outreach
Worker. It will also provide meeting space for the approximately 31 veterans from VetLIFT I and II, as
well as those residing at the site. Rents will range from $385 per month to $453 per month. St. Vincent
de Paul Society of Lane County, Inc. has been awarded a four-year Oregon Housing and Community
Services subsidy to supplement rents so that no veteran will be paying more than 30% of their income
for rent. After the four-year subsidy period has ended, St. Vincent de Paul will establish a rental subsidy
fund to continue to subsidize six veteran units.
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
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, 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 1070 West 6th
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Avenue, Eugene, Oregon (Assessor’s Property Account Number 0473056), subject to the following
condition:
Upon completion of construction, the project shall consist of 10 one-bedroom units
varying in size from 512 square feet to 646 square feet, and a community space of 880
square feet, with rents ranging from $385 per month to $453 per month. Due to an award
of an Oregon Housing and Community Services subsidy to supplement rents, no veteran
shall pay more than 30% of their income for rent for the duration of the four-year
subsidy. After the four-year subsidy period has ended, St. Vincent de Paul will establish
a rental subsidy fund to continue to subsidize six veteran units.
Section 2.
That the land and units described in Section 1 above are declared exempt from local
ad valorem property taxation commencing July 1, 2009, 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 ORS 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, 2009.
Section 4.
This Resolution shall become effective immediately upon its adoption.
The foregoing Resolution adopted and effective the ____ day of September, 2008.
_______________________________________
City Recorder
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ATTACHMENT B
RESOLUTION NO. _____
A RESOLUTION DENYING A LOW-INCOME RENTAL HOUSING
PROPERTY TAX EXEMPTION FOR THE PROPERTY LOCATED AT
TH
1070 WEST 6 AVENUE, EUGENE, OREGON. (ST. VINCENT DE
PAUL SOCIETY OF LANE COUNTY, INC., APPLICANT.)
The City Council of the City of Eugene finds that:
A.
The St. Vincent de Paul Society of Lane County, Inc. (P.O. Box 24608, Eugene,
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Oregon 97402) is the owner of real property located at 1070 West 6 Avenue, Eugene, Oregon,
97402 (Assessor’s Property Account Number 0473056), 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 10 one-bedroom units
varying in size from 512 square feet to 646 square feet, and a community space of 880 square
feet. The community space will serve chronically homeless veterans and house an office for the
VA Homeless Outreach Worker. It will also provide meeting space for the approximately 31
veterans from VetLIFT I and II, as well as those residing at the site. Rents will range from $385
per month to $453 per month. St. Vincent de Paul Society of Lane County, Inc. has been
awarded a four-year Oregon Housing and Community Services subsidy to supplement rents so
that no veteran will be paying more than 30% of their income for rent. After the four-year
subsidy period has ended, St. Vincent de Paul will establish a rental subsidy fund to continue to
subsidize six veteran units.
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 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.
Notwithstanding the above findings and the Report and Recommendation of
the Director of the Planning and Development Department attached as Exhibit A, the City
Resolution - Page 1 of 2
08 SVDP-Vet Lift - 1070 W. 6 Denial Resol. (00206403).DOC
Council denies 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 1070 West 6th Avenue, Eugene, Oregon
(Assessor’s Property Account Number 0473056).
Section 2.
The City Manager, or the Manager’s designee, is requested to forward a
copy of this Resolution to the applicant within ten days.
Section 3.
This Resolution shall become effective immediately upon its adoption.
The foregoing Resolution adopted and effective the ____ day of September, 2008.
_______________________________________
City Recorder
Resolution - Page 2 of 2
08 SVDP-Vet Lift - 1070 W. 6 Denial Resol. (00206403).DOC
ATTACHMENT C
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 1070 West 6th 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
0473056), 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 that:
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 Section 5 of the Standards and Guidelines for
Low-Income Rental Housing Property Tax Exemption adopted by council Resolution No.
4623 have been met. The findings for policies contained in Section 5 are as follows:
5.1 SVDP has agreed to execute a Rent Regulatory Agreement
and maintain the agreement in effect for the duration of the tax exemption
period.
5.2The 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, the tenants are receiving relocation assistance and are working with the
City of Eugene contracted Relocation Specialist.
(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,
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1971, and adopted city regulations and policies.
2.2 In addition, I find that the application complies with the requirements contained in
Section 3 of the Standards and Guidelines. Specifically, I find that:
3.1An exemption is being requested for all of the property
located at 1070 West 6th Avenue, Eugene, Oregon.
3.2The purpose of the project is to provide housing and
services to chronically homeless veterans. All of the property will be used
for that purpose.
3.3A certification of the income levels of low-income
occupants is attached to the application.
3.4The tax exemption will benefit project occupants in that the
rents proposed for this project will range from $385 to $453 per month. A
four-year subsidy awarded to St. Vincent de Paul will supplement rents so
that no veteran will pay more than 30% of their income for rent for the
duration of the four-year subsidy. After the four-year subsidy period has
ended, St. Vincent de Paul will establish a rental subsidy fund to continue
to subsidize six veteran units.
3.5 and 3.6The 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.
3.7The application is not for an exemption described in
subsection 2.10 of the Standards and Guidelines for Low-Income Rental
Housing Property Tax Exemption.
3.8The property is not being held for the future development
of low income rental housing, construction of the project began in August,
2008.
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 Low-Income Rental Housing Property Tax
Exemption, and I recommend that the application be approved.
Dated this ____ day of September, 2008.
____________________________________
Susan Muir, Executive Director
Planning and Development Department
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