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HomeMy WebLinkAboutOrdinance No. 19595ORDINANCE N0. 19595 AN ORDINANCE ESTABLISHING A PROGRAM FOR TAX EXEMPTION OF LOW INCOME HOUSING PROVIDED BY TAX EXEMPT CORPORA- TIONS; AND ADDING SECTIONS 2,910, 2.912, 2.914, 2.916, 2.918, 2.920, AND 2.922 TO THE EUGENE CODE, 1971. THE CITY OF EUGENE DOES ORDAIN AS FOLLOWS: Section 1. Sections 2.910, 2,912, 2.914, 2.916, 2.915, 2.920, and 2.922 are hereby added to the Eugene Code, 1971, to provide: 2.910 Low Income Housin Tax Exem tion - Definitions. For purposes of sections 2.912 to 2,922 of this code, the following words and phrases mean: Cit mono er. The city manager of the city of Eugene, or the manager's designee. Eli ible cor oration. A corporation which is exempt from in- come taxes under 26 U.S.C. 501~c}~3} or ~4} as amended before December 1, 1984, and which demonstrates that upon liquidation, the assets of the corporation are required to be applied first in pay- ment of all outstanding obligations, and the balance remaining, in cash and kind, to be d~str~buted to corporations exempt from taxa- tion and operated exclusively for religious, charitable, scientific, literary or educational purposes or to the State of Oregon. Eli ible ra ert . Property within the limits of the city of Eugene which is: owned by an eligible corporation; actually and exclusively used for the purposes described in 26 U.S.C. 5o1~c}~3} or,~4}; and, occupied by low income persons, For the purposes of the s sects on property wi 11 be deemed to be accupi ed by 1 aw income persons ~ f ~ t i s made oval 1 abl a and reserved exclusively far 1 ow income persons and has been occupied by a low income tenant within the last six months. Only that portion of the property occupied by low income persons sha11 be eligible property. Low income. Income lower than that established for very low income families as defined by 42 U.S.C. section 1431a~b}~2} as amended before December 1, 1984, Owner or owned. The owner or purchaser of property for which- an exemption is sought. For purposes of this section a corpora- t~ on why ch has only a 1 easehol d interest i n property i s deemed to be a purchaser of that property if: ~a} The corporation is obligated under the terms of the lease to pay the ad valorem taxes on the real and personal property used to provide low income housing; or fib} The rent payable by the corporation has been estab- lished to reflect the savings resulting from the exemption from taxation. Ordinance - 1 2.912 Low Income Housin Tax Exem tion - A lication for Exem tion. ~1} An eligible corporation seeking tax exemption for eligible property shall submit an applicatian on a form provided by the city manager and pay the fee set by the city manager pursuant to section 2.020 of this code. The applicatian shall contain the following information: ~a} The applicant's name, address, and telephone number; fib} The assessor's property account number for each parcel of eligible property for which application is being made; ~c} The number of units and the exempted amount of each parcel which is in part eligible property, and the portion of the parcel which wil] be eligible property; ~d} A description of the property for which the exemption is requested; fie} A description of the charitable purposes of the project and whether all or a portion of the property is being used for that purpose; ~f} A certification of income levels of low income occupants and a declaration that the income levels of all occupants of the property for which the exemption is being applied, at the time of the application or within 30 days of the filing of the application are lower than that established far very low income families as defined by 42 U.S.C. section 1437~b}~2} as amended before December 1, 1984; ~g}, A description of haw the tax exemption will benefit pro- ~ect residents; ~h} A declaration that the corporation is an eligible corpora- tion; and ~i} 5uch other information as requested by the city manager. ~2} The applicant shall verify the information in the application by oath ar affirmation. ~3} An application which does not contain all the information re- quired by this section and not accompanied by payment of the proper fees shall be returned. Any application returned for these reasons shall be deemed not to have been filed. ~4} Except as provided in ORS 311.4103}, an application must be filed on yr before March 1 of the assessment year far which the exemption is to be applied. 2.914 Law Income Housin Pro ert Tax Exem tion ~ Review of A licatian. ~1} Applications for the low income housing property tax exemp- t7 on shal l be f ~ l ed w~ th the city manager. ~2} The city manager shall process each application and the manager shall make a written recommendation to the council in sufficient time to allow the council to act within 30 days of the filing of the application ~3} The city manager shall recommend approval and the counci l shal l grant an annual exemption for any eligible property owned by an eligible cor- poration. ~4} Upon receipt of the city council shall consider the application. determine if the applicant qualifies for the exemption, the council shall adopt a which contains findings on the approval manager's written recommendation, the At that meeting the council shall the exemption. If the caunci 1 allows resolution approving the application, criteria and certifies to the Lane Ordinance - 2 County Tax Assessor that all or a portion of the property for which a lica- tian was made shall be PP exempt from the ad valorem property tax levy of the city of Eugene. 2.916 Low Income Housin Pro ert Tax Exem tian - Annual A lication Renewa] . ~1} Applicants for property tax exemption under section 2.912 of this code must apply each year no later than March 1 in order to be ualified for ro ert tax exem d o q P P y p n for the fallowing tax year. ~~} Applicants for property tax exemption under section 2.912 of this code shall apply and may be eligible for property tax exem tions for P assessment years beginning on or after January 1, 1989, but no later than January 1, 1994. 2.918 Low Income Housin Pro ert Tax Exem tion - Re ulatar Power. The city manager may issue rules necessary for the implementation of sections 2.910 to 2.922 by following the process set out in section 3.012 of this code. 2.920 Low Income Housin Pro ert Tax Exem tion - Assessment Exem tion. ~1} Property for which an application far a property tax exem - tion has been a roved under t P pp he provisions of sections 2.910 to 2.922 shall be exempt from ad valorem taxation for one assessment year be innin on or after Januar 1 o g g f y, f the year immediately following the calendar year in which construction ~s completed, determined by that stage in the construction ro- cess when ursuant to ORS P p 301.330, the property would have gone on the tax rolls in the absence of the exemption. The exemption provided far herein shall be in addition to any other exemption provided by law. ~2} Applications for property tax exemption under section 2.912 shal 1 apply to and may be approved for assessment years be i nni n no 1 ater g 9 than January 1, 1994. 2.922 Low Income Housin Pro ert Tax Exem Lion - Termination. . ~1} If, after a certificate of qualification approving the exem - t~ on has been f ~ 1 ed w~ th P the county assessor, the city manager finds that non-compliance has occurred or that any provision of sections 2.91o to 2.922 is not being complied with, the city manager shall give notice in writin to the owner mailed t g o the owner s.last known address, of the proposed ter- m~nat~on of the exemption. The notice shall state the reasons for the ro- P posed termination Of exemption and require the owner to appear before the council to show cause at a specified time, not more than 20 days after mai]- ~ng of the notice, why the exemption should not be terminated. ~2} If the owner does not appear or if the owner appears and fails to show cause why the exemption should not be terminated, the exem tion shall be terminated, A c P vpy of the termination shall be filed with the county assessor and a copy sent to the owner at the owner's last known address, w~th~n ten days after its adoption. ~3} If the council finds that the non-compliance was due to cir- cumstances beyond the control of the owner, and that the owner had been act- Ordinance - 3 ing,and could reasonably be expected to act in goad faith and with due diligence, the council may continue the exemption or some portion for the duration of the current application. ~4} All reviews of council action in denying, approving or ter- minating an exemption shall be governed by the procedures set forth in ORS 34.010 to 34.I00 and correction of assessments and tax rolls and the evalua- tion of the property shall be in conformity with subsection ~2} of OR5 307.680. The council's action on an exemption shall not be a land use deci- sion for purposes of administrative review. Section 2. The Council requests that all 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 and notify the City Manager of the City of Eugene of their agreement. When sufficient taxing districts have notified the City Manager of their agreement to the policies of tax exemption set forth herein so 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, Passed by the City Council this 13th day of February, 1989 ~~~"` ~ ~ City Reco der Approved by the Mayor this 13th day of February, 1989 iG~~,. ayor Ordinance - 4