HomeMy WebLinkAboutItem 3C: Low-Income Tax Exemption for Prairie View
ECC
UGENE ITY OUNCIL
AIS
GENDA TEM UMMARY
Adoption of Resolution 4985 Approving a Low-Income Rental Housing Property Tax
Exemption for the Property Located at 560 - 588 South Danebo Street, Eugene, Oregon
(Prairie View LLC, Applicant)
Meeting Date: July 13, 2009 Agenda Item Number: 3C
Department: Planning and Development Staff Contact: Richie Weinman
www.eugene-or.gov Contact Telephone Number: 682-5533
ISSUE STATEMENT
The City Council is asked to approve a resolution for a low-income housing tax exemption. The
resolution grants a 20-year property tax exemption for Metropolitan Affordable Housing Corporation’s
Prairie View development at 560 – 588 South Danebo Street.
BACKGROUND
The City of Eugene has an over 20-year history of taking actions and providing incentives to increase
the supply of low-income housing. In order to address the shortage of housing affordable for
households with low incomes, the council has adopted a variety of tools which include this 20-year, low-
income tax exemption. The exemption is enabled by a state statute that was adopted after a bill was
submitted at Eugene’s request nearly 20 years ago. The council reviews each request on a case by case
basis. The full benefit of the tax exemption is reflected through reduced rents.
The City and other local taxing districts forgo revenue when property is exempted from taxes. A
property tax exemption plays a very significant role in reducing rents by approximately $100 per month
per apartment. Prairie View has 64 apartments for very low-income households ranging from studios to
three bedrooms. As a result, the development provides homes for a variety of households including
many families with children. Some of the Prairie View tenants have been homeless or receive case
management because of their disability.
This project was developed on a 2.77-acre City of Eugene landbank site. Metro was selected as the
developer by the Eugene City Council following a request for proposals and a recommendation from the
Housing Policy Board. In addition to land, the City is providing subsidies through federal HOME funds
($316,121) and waivers of System Development Charges ($115,000). EWEB has also waived water
SDC’s ($67,861) and Lane County contributed Road Funds ($213,700).
When the council took past actions related to this project, this property tax exemption was projected to
be part of the financing package that enables the HUD-required rents to serve households at or below
50% of median income.
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RELATED CITY POLICIES
Since 1987, the City Council has adopted annual goals related to homelessness and increasing the
availability of low-income housing. Support for low-income housing also is found in the City’s Growth
Management Goals and the adopted HUD Consolidated Plan.
COUNCIL OPTIONS
The City Council may approve or deny the tax exemption.
CITY MANAGER’S RECOMMENDATION
The City Manager recommends the approval of the resolution granting a 20-year property tax exemption
to Prairie View.
SUGGESTED MOTION
Move to adopt Resolution 4985 approving a low-income rental housing property tax exemption for the
property located at 560 - 588 South Danebo Street, Eugene, Oregon (Prairie View LLC, Applicant).
ATTACHMENTS
A. Proposed Resolution
B. PDD Director’s Recommendation
FOR MORE INFORMATION
Staff Contact: Richie Weinman
Telephone: 682-5533
Staff E-Mail: richie.d.weinman@ci.eugene.or.us
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ATTACHMENT A
RESOLUTION NO. _____
A RESOLUTION APPROVING A LOW-INCOME RENTAL HOUSING
PROPERTY TAX EXEMPTION FOR THE PROPERTY LOCATED AT
560 - 588 SOUTH DANEBO STREET, EUGENE, OREGON. (PRAIRIE
VIEW LLC, APPLICANT.)
The City Council of the City of Eugene finds that:
th
A.
Prairie View LLC (the applicant), located at 277 West 8 Avenue, Eugene,
Oregon, 97401, is the owner of real property located at 560 - 588 South Danebo, Eugene,
Oregon, 97402 (Assessor’s Property Account Number 1735974), and has submitted an
application pursuant to Subsection 2.939(2) of the Eugene Code, 1971, for an exemption from ad
valorem taxes under the City's Low-Income Rental Housing Property Tax Exemption Program
(Sections 2.937 to 2.940 of the Eugene Code, 1971).
B.
The proposed project consists of the development of eight studio units, ten one
bedroom units, 38 two bedroom units, and eight three bedroom units, with rent ranging from
$327 per month to $651 per month.
C.
The Report and Recommendation of the Executive Director of the Planning and
Development Department (“the Executive Director”), as designee of the City Manager, attached
as Exhibit A to this Resolution, recommends that the application be approved and the exemption
granted. In making that recommendation, the Executive Director found that the applicant
submitted all materials, documents and fees required by the application and Section 2.938(1) of
the Eugene Code, 1971, and is in compliance with the policies set forth in the Standards and
Guidelines adopted by Resolution No. 4623. In addition, as described more fully in Exhibit A,
the applicant has complied with the criteria for approval provided in Section 2.939(2) of the
Eugene Code, 1971.
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, and the findings in the Executive Director’s
Report and Recommendation attached as Exhibit A, the City Council approves the application of
Prairie View LLC for an ad valorem property tax exemption under the City's Low-Income Rental
Housing Property Tax Exemption Program for the property located at 560 - 588 South Danebo,
Eugene, Oregon, 97401 (Assessor’s Property Account Number 1735974), subject to the
following condition:
Upon completion of construction, the project shall consist of eight studio units,
ten one bedroom units, 38 two bedroom units, and eight three bedroom units, with
rent ranging from $327 per month to $651 per month.
Resolution - Page 1 of 2
Section 2.
The land and units described in Section 1 above are declared exempt from
local ad valorem property taxation commencing July 1, 2010, and continuing for a continuous
period of twenty (20) years unless earlier terminated in accordance with the provisions of Section
2.940 of the Eugene Code, 1971, which provides for termination after an opportunity to be heard
if:
2.1 Construction or development of the exempt property differs from the construction
or development described in the application for exemption, or was not completed by
January 1, 2010, and no extensions or exceptions were granted; or
2.2 The property owner fails to comply with provisions of ORS 307.515 to 307.523,
provisions of the Eugene Code, 1971, the Standards and Guidelines adopted by Council
Resolution No. 4623, or any conditions imposed in this Resolution.
The tax exemption shall be terminated immediately, without right of notice or appeal, pursuant to
the provisions of ORS 307.531 in the event:
2.3 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
2.4 The county assessor determines that a change of use to other than that allowed has
occurred for the housing unit, or portion thereof, or, if after the date of this approval, a
declaration as defined in ORS 100.005 is presented to the county assessor or tax collector
for approval under ORS 100.110.
Section 3.
The City Manager, or the Manager's designee, is requested to forward a copy
of this Resolution to the applicant within ten days from the date of adoption of this Resolution,
and to cause a copy of this Resolution to be filed with the Lane County Assessor on or before
April 1, 2010. The copy of the Resolution sent to the applicant shall be accompanied by a notice
explaining the grounds for possible termination of the exemption prior to the end of the
exemption period and the effects of the termination.
Section 4.
This Resolution shall become effective immediately upon its adoption.
The foregoing Resolution adopted the _____ day of _________________, 2009.
_______________________________________
City Recorder
00230369.DOC
Resolution - Page 2 of 2