HomeMy WebLinkAboutResolution No. 4623
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COUNCIL RESOLUTION 4623
A RESOLUTION ADOPTING AMENDED
STANDARDS AND GUIDELINES FOR
PROCESSING APPLICATIONS FOR NEW
LOW-INCOME RENTAL HOUSING LOCAL
PROPERTY TAX EXEMPTION AND
REPEALING RESOLUTION NO. 4418.
DA TE SUBMITTED: March 13, 2000
PASSED: 5/0
ABSENT: Nathanson, Meisner & Taylor
REJECTED:
DEFERRED TO:
RESOLUTION NO. 4623
A RESOLUTION ADOPTING AMENDED STANDARDS AND
GUIDELINES FOR PROCESSING APPLICATIONS FOR
NEW LOW-INCOME RENTAL HOUSING LOCAL
PROPERTY TAX EXEMPTION AND REPEALING
RESOLUTION NO. 4418.
The City Council of the City of Eugene finds that:
A. Issues related to low-income housing have long been given a high priority by the City
Council. As an incentive to encourage construction of new low-income rental housing within the
City of Eugene, provisions enacted by the Oregon Legislature that provided a procedure for
implementation by cities of a program for exempting newly constructed low-income rental housing
from ad valorem taxes were adopted by the City Council and codified at Sections 2.937 to 2.940 of
the Eugene Code, 1971.
B. In compliance with ORS 307.521(3), prior to processing any applications for
exemptions under the program, standards and guidelines therefor were adopted by the City Council
on February 12, 1990 and subsequently amended on May 26, 1992 and June 13, 1994. The
Standards and Guidelines included policies to be complied with prior to granting approval of an
application, and established the process to be followed by the City Manager in reviewing and making
recommendations on applications for property tax exemption for new low-income rental housing.
C. The City Council has amended some of the provisions of Sections 2.937 to 2.940 of
the Eugene Code, 1971 to bring those sections into conformity with amendments to the state statutes
under which they are authorized effected during the 1997 and 1999 sessions of the Oregon
Legislature. Pursuant to Section 7 of the Standards and Guidelines, the City Manager has
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recommended revisions thereto in order to ensure compliance with state law and Sections 2.937 to
2.940 of the Eugene Code, 1971. Resolution No. 4418, and the Standards and Guidelines adopted
therein should therefore be repealed, and the Amended Standards and Guidelines attached as Exhibit
A hereto should be approved and adopted as the process to be followed by the City Manager in
reviewing and making recommendations on applications for property tax exemption for new low-
income rental housing or land that is held for future development of low income rental housing.
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, which are hereby adopted, the Amended
Standards and Guidelines for Processing Applications for New Low-Income Rental Housing Local
Property Tax Exemption attached as Exhibit "A" hereto are approved and adopted as the procedures
to be followed in considering applications for exemption filed after January 1, 2000, and the policy
contained therein is declared to be the policy of the City of Eugene governing the basic requirements
for applications filed after January 1,2000.
Section 2. Resolution No. 4418 and the Standards and Guidelines adopted therein are hereby
repealed, except the procedures set forth in those Standards and Guidelines will continue to be
followed for applications filed before January 1, 2000.
The foregoing Resolution adopted the 13th day of March, 2000.
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Exhibit "A" to Resolution No. 4623
AMENDED STANDARDS AND GUIDELINES FOR
PROCESSING APPLICATIONS FOR NEW LOW-INCOME
RENTAL HOUSING LOCAL PROPERTY TAX EXEMPTION
UNDER ORS 307.515 TO ORS 307.537
Pursuant to the provisions of Resolution No. 4623 of the City Council of the City of Eugene,
the City Manager shall be governed by the following rules in considering applications filed after
January 1, 2000 and making recommendations for local property tax exemption for new low-income
rental housing and property held for the purpose of developing low income rental housing.
ADMINISTRATIVE PROCESS
F or purposes of these rules, the following words and phrases mean:
City Manager. The City Manager of the City of Eugene, or his or her designee.
Low-income. Income at or below 60 percent of the area median income as
determined by the State Housing Council based on information from the United States
Department of Housing and Urban Services.
Low-Income Rental Housing. Rental housing constructed after February 12, 1990
which is occupied by low-income persons.
1. Statement of Program Purpose. The purpose of the low-income rental housing
local property tax exemption program is to provide an incentive that will encourage construction of
new rental housing for low-income persons.
2. Eligible Property. To be eligible for local property tax exemption hereunder:
2.1 Ifunoccupied, the property is offered for rental solely as a residence
for low-income persons, or held for the purpose of developing low income rental
housing;
2.2 If occupied, the property, or portion thereof subject to the property tax
exemption, must be occupied solely as a residence for low-income persons;
2.3 The required rent payment must reflect the full value of the property
tax exemption;
2.4 The housing units on the property must be constructed after February
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12, 1990;
2.5 The property owner must agree to comply with the policies set forth
in Section 5 of these Amended Standards and Guidelines;
2.6 The proposed development must be consistent with the City's Housing
Dispersal Policy;
2.7 The proposed development will not cause displacement of low-
income persons unless the City and developer can reach agreement on provisions (to
be provided by the developer) that reflect satisfactory mitigation thereof;
2.8 The proposed development will not cause destruction of historic
properties (as defined in Section 9.202 of the Eugene Code, 1971) except:
2.8.1 Where development has proceeded according to historic
property moving and demolition procedures as set forth in Section 9.212 of
the Eugene Code, 1971, or
2.8.2 The property is granted an exception by the council;
2.9 The proposed development will be otherwise consistent with
provisions of the Eugene Code, 1971 and adopted City regulations and policies; and
2.10 As an alternative to the criteria set forth in subsections 2.1, 2.2, 2.3
and 2.4 of this section, an application shall be approved if it meets the criteria in
subsections 2.5, 2.6, 2.7, 2.8 and 2.9 of this section and all of the following criteria:
2.10.1 If unoccupied, the property is offered for rental solely as a
residence for low-income persons, or is held for the purpose of developing
low income rental housing;
2.10.2 If occupied, the property, or portion thereof subject to the
property tax exemption, is occupied solely as a residence for low-income
persons;
2.10.3 The applicant's application was filed prior to January 1, 2010;
2.10.4 The property is owned or being purchased by a nonprofit
corporation organized in a manner that meets the criteria for a public benefit
corporation, as described under ORS 65.001(31) or for a religious
corporation, as described under ORS 65.001(33); and
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2.10.5 The property is owned or being purchased by a nonprofit
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 for low-income persons, or for the provision of
on-site child care services for the residents of the rental property.
F or purposes of this subsection, a nonprofit corporation that has only a leasehold
interest in property is considered to be a purchaser of that property if the nonprofit
corporation is obligated under the terms of the lease to pay the ad valorem taxes on
the real and personal property used in the rental activity on that property, or the rent
payable has been established to reflect the savings resulting from the exemption from
taxation.
3. Application for Exemption. Prior to December 1 of the calendar year immediately
preceding the first assessment year for which the exemption is requested, or, if the property is
acquired after November 1, within 30 days of the date of acquisition, but no later than January 1 of
the next calendar year, the applicant shall submit to the City Manager, on a form provided by the
City Manager, an application for exemption, containing the following information:
3.1 A description of the property or portion thereof, for which the
exemption is requested;
3.2 A description of the purpose of the project and whether all or a portion
of the property will be used for that purpose;
3.3 A certification of the income levels of low-income occupants;
3.4 A description of how the tax exemption will benefit project occupants;
3.5 Evidence that, if unoccupied, the property is offered for rental solely
as a residence for low-income persons, or is held for the purpose of developing low
income rental housing;
3.6 Evidence that, if occupied, the property is occupied solely as a
residence for low-income persons;
3.7 If the application is for an exemption described in subsection 2.10,
evidence that the property is owned or being purchased by a nonprofit corporation
which meets the criteria for a public benefit corporation as described in ORS
65.001(31), or a religious corporation, as described in ORS 65.001(33); and evidence
that the nonprofit corporation 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 for low-income persons, or for the provision of on-site
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child care services for the residents of the rental property;
3.8 A description of the plans for development of the property if the
property is being held for the future development of low income rental housing; and
3.9 Any other information required by the City Manager.
The application shall be verified by oath or affirmation of the applicant and submitted with
an application and processing fee to be set by the City Manager pursuant to Section 2.020 of the
Eugene Code, 1971, which shall include therein the fee to be paid to the County Assessor by the City
as the County's agreed processing fee for those applications receiving Council approval. The amount
of the basic fee shall be prominently displayed on the application, together with a statement that the
applicant may be required to pay other reasonable costs, including appraisal costs, if any are incurred
by the City or the County in processing the application. Any additional costs shall be paid to the City
by the applicant prior to the granting of any final approval. In the event an application is denied, the
portion of the fee reserved for the County Assessor will be refunded to the applicant by the City. An
application which does not contain all the required information and is not accompanied by the
required fee shall be returned to the applicant. Any application returned for these reasons shall be
deemed not to have been filed.
4. Duration of Tax Exemption. An exemption from ad valorem taxes may be granted
for a period of no more than twenty successive years for the land and the improvements located
thereon that are a part of the newly-constructed low-income rental housing or for land that is being
held for future development of low income rental housing.
5. Policies. In addition to the criteria set forth in Section 2.939(2) of the Eugene Code,
1971 and Section 2 above, unless the land is being held for future development of low income rental
housing, the applicant must demonstrate compliance with the following policies in order to be
eligible for a property tax exemption hereunder:
5.1 Rent Regulatory Agreement. The owner must agree to execute and
maintain in effect for the duration of the tax exemption period, a Rent Regulatory
Agreement in a form approved by the City, and which contains, but is not limited to,
provisions establishing regular reporting requirements and periodic inspection
periods, and demonstrates that the required rent payment reflects the full value of the
property tax exemption.
5.2 Inspection of Premises. The owner must consent in writing that for
the duration of the tax exemption period the City may inspect the property for which
the exemption is granted at reasonable times, without prior notice, to insure that the
premises are maintained in decent, safe and sanitary conditions for the occupants.
6. Recommendations on Applications. Upon receipt of an application for property tax
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exemption hereunder, the City Manager shall:
6.1 Review the application and all supportive material to verify that the
applicant has provided the information required and paid the required fee. The City
Manager shall promptly notify the applicant of any omissions.
6.2 Solicit recommendations or comments from interested City
departments, agencies, and the affected neighborhood group(s). Within 20 days of
forwarding referrals, written comments shall be submitted to the City Manager by the
agencies, departments and groups to whom referral is made. Failure to respond
within 20 days will be deemed approval of the proposal as submitted.
6.3 If necessary to address comments or recommendations received,
establish a meeting with the applicant, or the applicant's authorized representative to
review the application.
6.4 Within 30 days from the date the application is filed, forward his or
her recommendation to the Council that the application be denied, approved, or
approved subject to conditions. The recommendation shall be based upon and
contain findings of compliance or non-compliance with these Standards and
Guidelines, Sections 2.937 to 2.940 of the Eugene Code, 1971, Council resolutions,
ordinances and adopted policies, and applicable State statutes, that support his or her
recommendation.
7. Amendments to Guidelines. The City Manager may, from time to time, propose
such revisions, deletions, or amendments to these Standards and Guidelines as he or she may deem
necessary or desirable for the efficient implementation of the low-income rental housing local
property tax exemption program, but no such revision, deletion, or amendment shall be effective
until approved by Council Resolution.
The foregoing Standards and Guidelines recommended to the City Council the 13th day of
March, 2000.
James R. Johnson
City Manager
APPROVED by Resolution No. 4623
of the Eugene City Council on
the 13th day of March, 2000.
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City Recorder
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