HomeMy WebLinkAboutOrdinance No. 20192
ORDINANCE NO. 20192
AN ORDINANCE CONCERNING LOW INCOME RENTAL
HOUSING PROPERTY TAX EXEMPTION, AND AMENDING
SECTIONS 2.938, 2.939, AND 2.940 OF THE EUGENE CODE,
1971.
THE CITY OF EUGENE DOES ORDAIN AS FOLLOWS:
Section 1.
Subsection (1)(h) and (1)(e) of Section 2.938 of the Eugene Code, 1971 are
amended, a new Subsection (1)(i) is added thereto, and the current Subsection (1)(i) is relettered
(1)(j), to provide:
2.938 Low-Income Rental Housing Property Tax Exemption - Application.
(1) An application for exemption from property taxes hereunder for low-income
rental housing units constructed after February 12, 1990 shall be filed with the city manager, on a
form provided by the city manager, which shall contain the following, if applicable:
(e) 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;
(h) 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;
(i) A description of the plans for development of the property if the
property is being held for future low income rental housing development; and
(j) Any other information required by the city manager.
Section 2.
Subsections (2)(a), (2)(b), (3)(a), and (3)(c) of Section 2.939 of the Eugene Code,
1971, are amended to provide:
2.939 Low-Income Rental Housing Property Tax Exemption - Review, Approval
or Denial of Application.
(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
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approval of an application, and the council shall grant the exemption upon determining satisfactory
compliance with or mitigation of the following criteria:
(a) If unoccupied, the property:
1. Is offered for rental solely as a residence for low income
persons; or
2. Is held for the purpose of developing low income rental
housing;
(b) If occupied, the property, or portion thereof subject to the property tax
exemption, is occupied solely as a residence for low-income persons;
(3) 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)(e), (f), (g),
(h) and (i) of this section and all the following criteria:
(a) 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;
(b) If occupied, the property, or portion thereof subject to the property tax
exemption, is occupied solely as a residence for low-income persons;
(c) The applicant's application was filed prior to January 1, 2010;
Section 3.
Section 2.940 of the Eugene Code, 1971, is amended to provide:
2.940 Low-Income Rental Housing Property Tax Exemption - 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 or development of the exempt property differs from the
construction or development described in the application for exemption, or was not
completed or on or before January 1, 2010, and no extensions or exceptions as
provided in subsection (4) hereof have been granted; or,
(b) The applicant has failed to comply with the provisions of ORS 307.515
to 307.523, the provisions of this code, or any provisions 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, and every known lender, at the last known address of each such lender, 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 20 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 city manager shall notify every known lender and shall allow each such lender not less than 30
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days after the date the notice of the failure to appear and show cause is mailed to cure any
noncompliance or to provide assure adequate to the council that all noncompliance shall be remedied.
If the owner fails to appear and show cause why the exemption should not be terminated, and the
lender fails to cure or give adequate assurance that any noncompliance will 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 the lender, at the lender's last known 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 10 days from the date of the hearing.
(3) All reviews of council action in denying an application or terminating an
exemption 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 307.533. The council's action on an exemption shall not be a land use decision 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, 2010 for completion of construction of the low-
income rental housing for a period not to exceed 12 consecutive months, i.e., January 1, 2011, if it
finds the failure to complete construction by January 1, 2010 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 God, 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 307.531 or 307.533.
(5) In no event shall the low-income housing granted an exemption by the council
be exempt from ad valorem taxation for more than 20 successive years beginning with the tax year
commencing immediately following the calendar year in which the application was approved. The
exemption shall apply only to the land and improvements located thereon that are a part of the low-
income rental housing unit, or land that is being held for future development of low income rental
housing. The exemption shall be in addition to any other exemption provided by law.
(6) Any exemption granted by the council shall terminate immediately, without
right of notice or appeal, in the event:
(a) 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
(b) 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 ORS 100.110.
Termination shall be in accordance with the provisions of ORS 307.531.
Section 4.
The City Recorder, at the request of, or with the concurrence of the City
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Attorney, is authorized to administratively correct any reference errors contained herein or in other
provisions of the Eugene Code, 1971, to the provisions added, amended or repealed herein.
Passed by the City Council this Approved by the Mayor this
thth
13 day of March, 2000 13 day of March, 2000
/s/ Warren G. Wong /s/ James D. Torrey
City Recorder Mayor
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