HomeMy WebLinkAboutOrdinance No. 19854ORDINANCE ND. 19854
AN ORDINANCE CONCERNING NON-PROFIT L4W~~INCOME HOUSING
TAX EXEMPTIONS, LOW-INCOME RENTAL HOUSING PROPERTY TAX
EXEMPTIONS, AND MULTIPLE-UNIT RENTAL HOUSING PROPERTY
TAX EXEMPTIONS; AMENDING SECTIONS 2.912, 2.91fi, 2.92D,
2.938, 2.939, 2.94D, 2.945, AND 2.941 OF THE EUGENE
CODE, 1911; AND DECLARING AN EMERGENCY.
THE CITY OF EUGENE DOES ORDAIN AS FOLLOWS:
Section 1. Subsectian ~4} of 5ectian 2.912 of the Eugene Code, 1911, is
amended to provide:
2.912 Low Income Housin Tax Exem tion ~ A lication for Exem tion.
~4} An application must be f i 1 ed on or before the March 1
immediately preceding the tax year for which the exemption is requested.
Section 2. Subsection ~2} of Section 2.916 of the Eugene Code, 1971, is
amended to provide:
2.916 low Income Housin Pro ert Tax Exem tion - Annual A lication
Renewal.
~2} Applicants for property tax exemption under section 2.912 of
this code shall apply and may be eligible for property tax exemptions for tax
years beginning an or after July 1, 1959, but na later than July 1, 1994.
Section 3. Section 2.90 of the Eugene Code, 1911, i s amended to pravi de
2.920 Low Income Housin Pro ert Tax Exem tian -Assessment Exem tion.
~ 1 } Property for which an application for a property tax exemption
has been approved under the provisions of sections 2.910 to 2.922 shat 1 be
exempt from ad va]orem taxation for one tax year beginning on or after July 1
of the year immediately following the calendar year i n which construction i s
completed, determined by that stage i n the construction process when, pursuant
to ORS 301.330, the praperty would have gone on the tax rolls i n the absence of
the exemption. The exemption provided for herein shall be in addition to any
other exemption provided by law.
~2} Applications far property tax exemption under section 2.912
shall apply to and may be approved for tax years beginning no later than July
1, 1994.
Section 4, Section 2.938 of the Eugene Code, 1911, i s amended to provide :
2.938 law- Income Rental Housin Pro ert Tax Exem t i on - A l i cat i on .
~1} An application for exemption from praperty taxes hereunder for
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1 ow- i ncOme rental housing units constructed after February 12, 1990 shall be
f i 1 ed with the city manager, on a form provided by the city manager, which shat l
cantain the following, of applicable:
~a} A description of the praperty, or portion thereof, for
which the exemption is requested;
fib} A description of the purpose of the project and whether
all or a porn on of the property wi 11 be used for that purpose;
~c} A certi f e cati on of the income 1 evel s of 1 ow-income
occupants;
~d } A descri pti on of how the tax exemption wi 11 benef i t
project occupants;
fie} Evidence that, i f unoccupi ed, the property i s offered
for rental solely as a residence for low-income persons;
~f} Evidence that, if occupied, the property is occupied
solely as a residence for low-income persons;
fig} Evidence that the property is owned or being purchased
by a nan-profit corporation which meets the criteria for a public
benefit corporate on as described e n ORS 65. Dol X31 } , or a rel i gi aus
corparation, as described in ORS 65.40133};
~h} Evidence that the nonprofit corporation expends no more
than ten percent of its annual i ncame from residential rentals for
purposes other than acque se to on, maintenance or repair of
residential rental praperty for law-income persons; and
~i} Any other information required by the city manager.
~Z} The information contained in the application shall be verified
by aath or affirmation of the applicant.
~3} At the time the application is filed, the applicant shall
submit the application fee established by the city manager pursuant to section
2.420 of this code. If the application i s approved, the portion of the fee
attributable to the caunty assessor's cost in administering this program shall
be paid by the city to the county assessor. If the application i s denied, the
city shall retain that portion of the application fee attributable to its own
administrative costs and shall refund the pardon attributable to the county
assessor's administrative costs to the applicant.
~4} An application for exempti an hereunder shall be f i 1 ed on ar
before December 1 of the calendar year immediately preceding the first tax year
for which an exemption i s requested. However, i f the praperty i s acquired after
November 1, the application shall be filed within 34 days after the date of
acquisition, but no 1 ater than January 1 of the next calendar year.
~ 5} An application which does not contain al 1 the required
information and is not accompanied by the required fee shall be returned. Any
application returned for these reasons shall be deemed not to have been filed.
Section 5. Section 2.939 of the Eugene Code, 1971, is amended to provide:
2.939 low-Income Rental Housin Pra ert Tax Exem tion -Review A royal
or Denial of A licateon.
~ 1 } Upon receipt of the application and required fee, the city
manager shall review the application and make a written recommendation thereon
to the counci 1 i n sufficient time to allow the counci 1 to act within fi0 days
from the date the application is filed,
~~} Upon receipt of the city manager's recommendation the council
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shall consider the application and grant or deny the property tax exemption.
The city manager shall recommend approval of an application, and the counci 1
shall grant the exemption upon determining satisfactory compliance with or
mitigation of the following criteria;
~a} The property i s offered for rent;
fib} The property, or portion thereof subject to the property
tax exemption, is occupied solely by low-income persons;
~c} The required rent payment reflects the ful 1 value of the
property tax exemption;
~d} The housing units on the property were constructed after
February 12, 1990;
fie} The pal i ci es set forth i n the Standards and Guidelines
for low-Income Rental Hauling Property Tax Exemption adopted by
counci 1 resolution;
~ f } The proposed development i s consistent with the city's
housing dispersal policy;
fig} The praposed development does not cause displacement of
low-income persons unless the city and developer can reach agreement
on provisions Ito be provided by the developer} that reflect
satisfactory mitigation thereof;
~h} The proposed development does not cause destruction of
historic properties has defined in section 9.202 of this code},
except;
1. Where development has proceeded according to
historic property moving and demolition procedures as set
forth in section 9.212 of this code, or
2. The property is granted an exception by the
council; and,
ti} The praposed development es otherwise consistent with
this code and adopted city regulations and policies.
t3} As an alternative to an application considered under
subsection ~2~ of this section, the city manager shall recommend approval of an
application, and the council shall grant the exemption upon determining the
applicant meets the criteria set forth in subsections ~2}fie}, ~f}, ~g}, th} and
~i} of this section and all the following criteria:
~a} If unoccupied, the property is offered far rental solely
as a residence for low-income persons;
fib} If occupied, the property is occupied solely as a
residence for low-income persons;
~ c } The applicant's application was f i 1 ed prior to July 1,
2oaa;
~d} The property i s owned or being purchased by a nonprof i t
corporate on organized i n a manner that meets the criteria for a
public benefit corporation, as descre bed under ORS fi5. oat X31 } ar for
a religious corporation, as described under ORS fi5.oo1~33}; and
fie} The property i s owned or being purchased by a nonprof i t
corporation that expends no more than ten percent of its annual
income from residential rentals for purposes other than acquisition,
maintenance or repair of residential rental property far low-income
persons.
44} At the meeting at which the city manager's recommendati an i s
considered the council shall adopt a resol uti on approving the application and
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granting the property tax exemption, or adopt a resolution disapproving the
application and denying the property tax exemption .
~5} A resolution approving an application shall contain:
~a} The owner's name and address;
fib} A description of the housing unit;
~c} The 1 egal description of the property or the county
assessor's property account number;
~ d } Any specific conditions upon which the approval i s
based;
fie} If only a portion of the property i s approved, a
description of the portion approved; and
~ f } A cent i f i cat i on that the property or portion thereof ,
i s exempt from ad val arem taxation.
~6} Within ten days from the date of its adoption, the city
manager shall forward to the appl icant a copy of the resolution adopted by the
caunci 1 approving an application, and, on or before Apri 1 1 fol l owi ng approval
shal 1 f i 1 e a copy thereof with the county assessor. The copy shal 1 cantai n
therein or be accompanied by a noti ce expl ai,n i ng to the applicant the grounds
for passible termination of the exemption prior to the end of the exemption
period ar thereafter, and the effects of termination.
~1} A resol uti on denying an application shall state the reasons
for denial , shat 1 be forwarded to the applicant within ten days of its adoption,
and shall inform the applicant of the right to appeal in the manner set forth
in ORS 34.010 to 34.100.
Section 6. Subsection ~1} ~a}, ~4}, and ~5} of Section 2.940 of the Eugene
Code, 1971, are amended to provide:
2.940 law-Income Rental Ho sin Pro ert Tax Exem t i on -Termination .
~1} If after a resolution approving an application for exemption
hereunder has been f i 1 ed with the county assessor the city manager finds that :
~a} Construction of the housing unit was not completed
within two years after the date the application was approved, or on
or before July 1, 2000, and no extensions or exceptions as provided
in subsection ~4} hereof have been granted; ar,
~4} Upan receipt of a request from the property owner, the caunci 1
may, by resolution, extend the deadline beyond July 1, 2000 for campl eti an of
construct i an of the 1 ow-income rental housing f or a peri od not to exceed 12
consecutive months, i .e., July 1, 2001, if it finds the failure to complete
construction by July 1, 2000, was due to circumstances beyond the control of the
owner, and that the owner had been and could reasonably be expected to act i n
good faith and with due di 1 igence, If property granted an exemption hereunder
i s subsequently destroyed by fire or act of God, or i s no 1 anger capable of
owner-occupancy due to circumstances beyond the control of the owner, the
exemption shall cease, but no additional taxes shall be imposed upon the
property under ORS 301.531 or 301.533.
~ 5} In no event shat 1 the 1 ow-income housing granted an exemption
by the caunci 1 be exempt from ad vat arem taxation far more than 20 successive
years beginning with the tax year commencing immediately fallowing the calendar
year i n which the app1 i cat i on was approved . The exemption shal 1 not include the
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1 and or any improvements thereon not a part of the low-income haus i ng unit. The
exemption shall be i n addition to any other exemption provided by 1 ave.
Section 1. Subsections ~1} and ~2} of Section 2.945 of the Eugene Cade,
1971, are amended to provide:
2.945 Multi l e-Unit Rental Housi n -Pro ert Tax Exem ti on.
~1} Based upon the findings contained in Resolution No. 2111
adopted by the counci 1 on July 11, 1971, and the provisions of Resolution No.
4328 adapted by the council on May 26, 1992, the provisions of ORS 3o1.fi00 to
301.690 are hereby readopted as the city's multiple-unit rental housing property
tax exemption ,program within the area generally bounded by the Willamette River
and Skinner's Butte Park on the north, Washington Street on the west, 13th to
19th Avenues on the South, and on the east by Hi lyard Street between Broadway
and 11th Avenue and Patterson Street between 11th and 13th Avenues, and Kincaid
Street between 14th and 15th Avenues, more or less, and Alder Street between
15th and 18th Avenues, more or less, and Patterson Street between 18th and 19th
Avenues, more or 1 ess, al 1 of which i s more particularly described i n Attachment
1 to Exhibit "A" to Resolution Na. 4328 referred to above.
~2} Applications for property tax exemption hereunder shall be
filed with the city manager and processed i n accordance with the amended and
restated standards and guidelines attached as Exhibit "A" to Resolution No.
4328, As used i n sections 2.945 and 2.947 of this code and the amended and
restated standards and guidelines referred to above, "city manager" includes
the manager's designee.
Section 8. Subsections ~1}, ~4}, t5}, and ~6} of Section 2.941 of the
Eugene Code, 1911, are amended to provide:
2.947 Multiple-Unit Rental Housing -Termination of Approval, Review.
~ 1 } After a resol uti on approving an application has been f i 1 ed,
if the city manager finds that:
~ a} Construction of multiple-unit rental housing was not
completed on or before July 1, 1998, and no extensions as provided
in subsection ~4} hereof have been granted, or
~ b} The applicant has f ai i ed to campl y with the provisions
of ORS 307.600 to 307.690, the provisions of this code, any
pray i s i ons of the amended and restated standards and guidelines
attached as Exhibit A to Resolution No. 4328, or
~c} The applicant has fai 1 ed to comply with any conditions
imposed in the resolution approving the application,
the city manager shat l notify the counci 1 and the owner of the property, at the
owner's 1 ast known address, of the manager's intention to recommend to the
counci 1 that the exemption be terminated. The notice shat l clearly state the
reasons for the proposed termination, and shall require the owner to appear
before the counci 1, at a time specified i n the notice, which shat l not be 1 ess
than 20 days from the date the notice was mai 1 ed, to shave cause, i f any exists,
why the exemption should not be terminated.
~4} Upon receipt of a request from the property owner, the council
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may, by resolution, extend the deadline for completion of construction of
multiple-unit rental housing for a period not to exceed 12 consecutive months,
i , e. , July 1, 1999, i f i t finds the fai 1 ure to complete construction by July 1,
.1998, was due to circumstances beyond the control of the owner, and that the
owner had been and could reasonably be expected to act i n good faith and with
due diligence.
~ 5} In any event, na multiple-unit housing granted an exemption
by the council shall be exempt from ad valorem taxation for mare than 10
successive years beginning the tax year comnenci ng during the calendar year
immediately f of 1 owi ng the calendar year i n which construction i s completed,
determined by that stage i n the construction process when, pursuant to ORS
30l .330 the improvement would have gone on the tax rolls i n the absence of the
exemption . The exemption shat 1 not include the 1 and or any improvements thereon
not a part of the multiple-unit housing and shall be i n addition to any other
exemption provided by 1 aw.
~fi~ Any exemption granted by the council shall terminate
immediately, without right 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 a declaration as
defined in 0R5 100.005~12~ is presented to the county assessor or tax collector
for approval i n connection therewith. Termination shall be i n accordance with
the provisions of ORS 301.675.
Section 9. The City Recorder, at the request of, or with the concurrence
of the City Attorney, i s authorized to administratively correct any reference
errors contained herein or in other provisions of the Eugene Code, 1911, to the
provisions added, amended or repea] ed herein .
Section lo. That the matters contained herein concern the public welfare,
and in order to ensure the orderly implementation of the provisions amended
herein an emergency i s hereby declared to exist, and this Ordi Hance shall become
effective itmnedi ately upon its passage by the City Council and approval by the
Mayor, retention by the Mayor for more than ten days, or readoption over a
Mayoral veto by two-thirds of all members of the Council.
Passed by the City Council this
2fith day of May, 1992
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City Recorder
Approved by the Mayor thi s
26th day of May, 1992
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