HomeMy WebLinkAboutOrdinance No. 19667ORDINANCE NO. 19661
AN ORDINANCE CONCERNING PROPERTY TAX EXEMPTION
FOR NEW LOW-INCOME HOUSING; ADDING SECTIONS 2.931,
2.938, 2.939, AND 2.944 TO THE EUGENE CODE, 1971;
AND DECLARING AN EMERGENCY.
THE CITY OF EUGENE DOES ORDAIN AS FOLLOWS:
Section 1. Sections 2.937, 2.938, 2.939, and 2.940 are hereby added to
the Eugene Code, 1911, to provide:
2.937 Low-Income Rental Housin Pro ert Tax Exem tion - Definitions.
Far purposes of sections 2.938 to 2.940, the following words and
phrases mean:
Cit mono er. The city manager of the city of Eugene, or his
ar her designee.
Low-income. Income lower than that established far very low-
income families as defined by 42 U.S.G. Section 1431a~b}42} as
amended before December 1, 1984.
2.938 Low-Income Rental Housin Pro ert Tax Exem tion - A lication.
~1} An application for exemption from property taxes hereunder for
low-income rental housing units constructed after the effective date of sec-
tions 2.937 to 2.940 of this code shall be filed with the city manager, on
a form provided by the city manager, which shall contain the fallowing:
~a} A description of the property, or portion thereof, for
which the exemption is requested;
fib} A description of the purpose of the project and whether
all or a portion of the property will be used for that purpose;
~c} A certification of the income levels of low-income occu-
pants;
~d} A description of how the tax exemption will benefit pro-
ject occupants; and
fie} Any other information required by the city manager.
42} The information contained in the application shall be verified
by oath ar affirmation of the applicant.
~3} At the time the application is filed, the applicant shall sub-
mit the application fee established by the city manager pursuant to section
2.020 of this code. If the application is approved, the portion of the fee
attributable to the county assessor's cost in administering this program shall
be paid by the city to the county assessor. If the application is denied, the
city shal] retain that portion of the application fee attributable to its own
administrative costs and shall refund the portion attributable to the county
assessor's administrative casts to the applicant.
~4} Except as provided in DRS 311.4103}, an application for exemp-
t i on hereunder shal 1 be f i 1 ed on or before December 1 of the calendar year
immediately preceding the first assessment year for which an exemption is re-
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quested.
~5} An application which does not contain all the required informa-
tion and is not accompanied by the required fee shall be returned. Any appli-
cation returned for these reasons shall be deemed not to have been filed,
2.939 Low-Income Rental Housin Pro ert Tax Exem tion - Review, A royal
or Denial of A lication.
~1} Upon receipt of the application and required fee, the city
manager shall review the applicatian and make a written recommendation there-
on tv the council in sufficient time to allow the council to act within 90
days from the date the applicatian is filed.
~2} Upon receipt of the city manager's recommendation the council
shall consider the application and grant or deny the property tax exemption.
The city manager shall recommend approval of an application, and the counci l
shall grant the exemption upon determining satisfactory compliance with or
mit~gat~on of the follaw~ng criteria:
~a} The property is offered for rent;
fib} The property, or portion thereof subject to the property
tax exemption, is occupied solely by law-income persons;
~c} The required rent payment reflects the full value of the
property tax exemption;
~d} The housing units on the property were constructed after
the effective date of sections 2.931 to 2.940 of this code;
fie} The policies set forth in the Standards and Guidelines
far Low-Income Rental Housing Property Tax Exemption adopted by
counci 1 resolution;
~f} The proposed development is consistent with the city's
housing dispersal policy;
,fig} The proposed development does not cause displacement of
low-income persons unless the city and developer can reach agree-
ment 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 2.403 of this code},
except:
1. Where development has proceeded according to historic
property moving and demolition procedures as set forth in sec-
tion 2.411 of this code, or
Z. The property is granted an exception by the council;
and,
~i} The proposed development is otherwise consistent with
this code and adopted city regulations and policies.
~3} At the meeting at which the city manager's recommendation is
considered the council shall adopt a resolution approving the applicatian
and granting the property tax exemption, or adopt a resolution disapproving
the application and denying the property tax exemption.
~4} 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;
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~d} Any specific conditions upon which the approval is
based;
fie} If only a portion of the property is approved, a des-
cription of the portion approved; and
~f} A certification that the property or portion thereof,
is exempt from ad valorem taxation.
~5} ~lithin ten days from the date of its adoption, the city man-
ager shall forward to the applicant a copy of the resolution adapted by the
council approving an application, and, an or before April 1 following approval
shall file a copy thereof with the county assessor. The cagy shall contain
therein or be accompanied by a notice explaining to the applicant the
grounds for possible termination of the exemption prior to the end of the
exemption period or thereafter, and the effects of termination.
~fi} A resolution denying an application shall state the reasons
for denial, shall be forwarded to the applicant within ten days of its adop-
tion, and shall inform the applicant of the right to appeal in the manner set
forth i n ORS 34.010 to 34.100.
2.940 Low-Income Rental Housin Pro ert Tax Exem tion - Termination.
~1} If after a resolution approving an application for exemption
hereunder has been filed 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 be-
fore January 1, 2000, and no extensions or exceptions as provided
in subsection ~4} hereof have been granted; or,
fib} The applicant has failed to comply with the provisions of
ORS 301.515 to 301.523, the provisions of this code, or any provi-
sions of the standards and guidelines adopted by council resolution;
or,
~c} The applicant has failed to comply with any conditions
imposed in the resolution approving the application,
the city manager shall recommend to the council, and notify the owner of the
property, at the owner's last known address, of the manager's recommendation
that the exemption be terminated. The notice shall 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 be Z0 days or more
from the date the notice was mailed, to show cause, if any exists, why the
exemption should not be terminated.
~2} 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, the council shall adopt a resolution
terminating the exemption, which shall contain its findings in support there-
of. Copies of the resolution shall be filed with the county assessor and
mailed to the property owner, at the owner's last address, within 10 days
from the date adopted. If a determination is made that the exemption should
continue as previously granted, the council shall adopt a motion rejecting
the manager's recommendation, and notify the property owner of that action
within 1o days from the date of the hearing.
~3} All reviews of council action in denying an application or
terminating an exemption shat 1 be governed by the procedures set forth i n DRS
34.010 to 34.100 and correction of assessments and tax rolls and the evalu-
ati on of the property shal 1 be i n conformity with subsection ~ ~} of DRS
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301.533. The council's action on an exemption shall not be a land use deci-
sion for purposes of administrative review.
~4} Upon receipt of a request from the property owner, the council
may, by resolution, extend the deadline beyond January 1, 2000 for completion
of construction of the low-income rental housing for a period not to exceed
12 consecutive months, i.e., January 1, 2001, if it finds the failure to
complete construction by January ), 2000, was due to circumstances beyond
the control of the owner, and that the owner had been and could reasonably
be expected to act in good faith and with due diligence. if property granted
an exemption hereunder is subsequently destroyed by fire or act of Gad, or is
no longer 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 shall the low-income housing granted an exemption
by the council be exempt from ad valorem taxation far more than 10 successive
years beginning with the assessment year commencing immediately fallowing
the calendar year in which the application was approved. The exemption shall
not include the land or any improvements thereon not apart of the low-income
housing unit. The exemption shall be in addition to any other exemption pro-
vided by law.
tfi} Any exemption granted by the council shall terminate immedi-
ately, without right of notice or appeal, in the event the county assessor
determines that a change of use to other than that allowed has occurred for
the housing unit, or portion thereof, or a declaration as defined in ORS
100.005 is presented to the county assessor or tax collector for approval
under DRS 100.110. Termination shall be in accordance with the provisions
of ORS 301.531.
Section 2. The Council requests that other taxing districts that levy
taxes on property within the City of Eugene agree to the policies of tax
exemption set forth in this Ordinance. When sufficient taxing districts have
notified the City Manager of their agreement to the policies of tax exemption
set forth herein sa that, in combination with the City, their combined tax
levy equals 51 percent or more of the total combined rate of taxation on
property certified by the City for limited assessment, the City Manager shall
notify the Lane County Tax Assessor that an exemption certified by the City
shall apply to the tax levy of all taxing districts in which the property is
located.
Section 3. That the matters contained herein concern the public welfare
and safety, and in order to provide for the orderly implementation of the
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provisions hereof, an emergency is hereby declared to exist, and this Ordi-
Hance shall become effective immediately upon its passage by the City Council
and approval by the Mayor.
Passed by the City Council this
~2th day of February, I990
~~l /~ • 1
.~~ City Recorder
Approved by the Mayor this
12th day of February, 1990
Mayor
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