HomeMy WebLinkAboutAdmin Order 53-25-04-F -- MUPTE Rule Amendments
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ADMINISTRATIVE ORDER NO. 53-25-04-F
of the
City Manager of the City of Eugene
AMENDING AND REPLACING MULTIPLE-UNIT HOUSING
PROPERTY TAX EXEMPTION RULE R-2.945 ADOPTED BY
ADMINISTRATIVE ORDER NO. 53-22-09-F.
The City Manager of the City of Eugene finds that:
A. Sections 2.019, 2.945 and 2.946 of the Eugene Code, 1971, authorize the City
Manager to adopt rules for administration of the City’s Multiple-Unit Property Tax Exemption
program. Pursuant to that authority, on January 14, 2023, I issued Administrative Order No. 53-
22-09-F adopting the most recent amendments to Multiple-Unit Housing Property Tax Exemption
Rule R-2.945 (“the Rule”).
B. On October 23, 2024, Ordinance No. 20713 was passed by the City Council
amending Sections 2.945, 2.946, and 2.947 of the Eugene Code, 1971, to implement an
Accelerated Multiple-Unit Property Tax Exemption program.
C. On January 31, 2025, I issued Administrative Order No. 53-25-04 ordering that
notice be given of the opportunity to submit written comments on a proposal to amend the Rule so
that the Rule aligns with the amendments made to the Eugene Code by Ordinance No. 20713.
D. Notice of the proposed Rule amendments was given by making copies of the Notice
available to any person who had requested such notice and by publication of the Notice in the
Register Guard newspaper on February 7, 9, 10, 11, and 12, 2025; providing interested persons an
opportunity to submit comments on the proposed amendments until the end of the day on February
24, 2025. No comments concerning the proposed Rules were submitted within the time or in the
manner set out in the Notice. Following the comment period, the Rule was updated to recent name
changes for two State programs (the Oregon State Office of Minority, Women, and Emerging
Small Businesses has been renamed the Certification Office for Business Inclusion and Diversity,
and the Oregon State Qualified Rehabilitation Facilities Program has been renamed Oregon
Forward). Those name changes are reflected in Rule R-2.945-C 1.2.2. In addition, the definition
of “Workforce Housing Unit” has been updated to clarify that rent that may be charged for
workforce housing units includes the estimated cost of utility services.
On the basis of these findings, I order that:
1. Multiple-Unit Housing Property Tax Exemption Rule R-2.945 is amended as set
forth below as of the effective date of this Order.
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2. The unamended provisions of Multiple-Unit Housing Property Tax Exemption
Rule R-2.945 adopted by Administrative Order No. 53-22-09-F are reaffirmed and incorporated
into Multiple-Unit Housing Property Tax Exemption Rule R-2.945 adopted by this Order.
3. Administrative Order No. 53-22-09-F is superseded by this Administrative Order
No. 53-25-04-F as of the effective date of this Order.
4. As of the effective date of this Order, the following is Multiple-Unit Housing
Property Tax Exemption Rule R-2.945:
MULTIPLE-UNIT HOUSING PROPERTY TAX EXEMPTION RULE R-2.945
R-2.945-A Definitions. For purposes of these rules, the following words and phrases mean:
Area Median Income (AMI). The income which divides the income distribution
of an area into two groups of equal size, half with incomes above the median and half with
incomes below the median, as published on an annual basis by the U.S. Department of
Housing and Urban Development (HUD) for the Eugene-Springfield metropolitan
statistical area and used interchangeably by HUD as Median Family Income and HUD
Area Median Family Income. The AMI determined by HUD and in effect on the date the
application is submitted shall be used as the AMI to determine what qualifies as workforce
or moderate-income housing for purposes of reviewing an application that includes such
housing units.
City Manager. The City Manager of the City of Eugene, or the City Manager’s
designee.
Form-based Zone. A form-based approach emphasizes the relationship between
building facades and the public realm, the form and mass of buildings in relation to one
another, and the scale and types of streets and blocks. The intent of a form-based code is
to achieve a predictable built environment with a focus on providing quality public spaces.
Historic Locale. A building that has historic, cultural and/or architectural
significance, locally, regionally, or nationally. A historic locale can also include a building
acknowledged by the Eugene Historic Review Board as strongly or possibly eligible for
City Landmark or National Register listing.
Historic Structure. Any building, structure or object which has been identified as
a primary or secondary historic resource (strong or possible eligibility for City Landmark
or National Register status) in a survey acknowledged by the Eugene Historic Review
Board and the State Historic Preservation Office, or which is an "historic property" as that
term is defined by section 9.0500 of the Eugene Code, 1971 (EC).
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Local Firm. A business organization or individual residing or doing business
primarily in Lane County.
Moderate-Income Housing. Means “workforce housing.”
Multiple-Unit Housing.
Newly constructed structures, newly constructed stories or other additions to
existing structures, and structures converted in whole or in part from other uses to dwelling
units that meet the following criteria:
(a) The project must include the number of dwelling units required by
R-2.945-B 4. or B 5.;
(b) The dwelling units must not be designed or used as transient
accommodations, including but not limited to hotels and motels; and
(c) The project must have those design elements benefitting the general
public required by section R-2.945-C.
Potential Historic Structure. Any building or structure which is older than 50
years in age and located in an area of the City which has not been canvassed as part of a
historic resource survey acknowledged by the Eugene Historic Review Board and the State
Historic Preservation Office.
Workforce Housing Unit. A unit in an apartment or condominium with rent,
including the estimated cost of utility services paid by the tenant, that is equal to or less
than 30% of the area median income (AMI). Estimated utility allowances are based on
typical local utility charges from the most recent utility allowance schedule published by
Homes for Good Housing Agency.
R-2.945-B Eligible Structures.
To be eligible for local property tax exemption hereunder, a project must comply with the
following subsections 1-3 and either subsection 4 or subsection 5:
1. Be multiple-unit housing as defined above, which must be completed on or before
the date specified in Section 2.946(2) of the Eugene Code.
2. Meet the approval criteria set forth in this Rule.
3. Not be designed for the leasing of individual rooms or beds, rather than entire
apartment units, or be designed primarily for individuals attending college.
4. If the applicant chooses to proceed under the Standard MUPTE criteria in EC
2.946(2)(d), the project must:
4.1 Provide five or more new dwelling units;
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4.2 Be located within the area shown on Map 2.946(2)(d)2.; and
4.3 Meet the following density requirements:
4.3.1 If the project is located in the R-1 Low Density Residential, R-2
Medium Density Residential, R-3 Limited High Density Residential or R-4 High
Density Residential zones: 175% of the minimum density applicable to the zone.
4.3.2 If the project is located in a form-based zone with a height limit of
three or four stories: 30 units per acre.
5. If the applicant chooses to proceed under the Accelerated MUPTE criteria in EC
2.946(2)(e), the project must:
5.1 Be located within the area shown on Map 2.946(2)(e)2.; and
5.2 Except in the case of conversion of a building or portion of a building from
another use to housing, the project must result in a minimum residential density of 25 units
per acre; and
5.3 Provide at least the following number of new dwelling units:
5.3.1 Four, if the dwelling units will be newly constructed;
5.3.2 Two, if the building or portion of the building where the new
dwelling units are located is converted from another use to housing; or
5.3.3 If the project will cause existing dwelling units to become
uninhabitable (for example, because the existing units are demolished or converted
to another use) the project must result in a number of dwelling units that is at least
150% of the original number of dwelling units that were located on the site (ex. if
a building containing 10 dwelling units is demolished, in order for new units to be
eligible for an Accelerated MUPTE, the project must include at least 15 dwelling
units).
R-2.945-C Approval Criteria.
1. Public Benefit. The City Council places a great deal of importance on adding high
quality housing to the downtown area. Therefore, applicants must include in their application an
explanation of how each of the following public benefits relate to the proposed project.
For projects proceeding under the Standard MUPTE criteria in EC 2.946(2)(d), the applicant’s
written explanation and other materials included with the application shall be reviewed by staff.
The financial information provided by the applicant shall be reviewed by the independent outside
professional consultant. The City Manager shall then convene the Project Review Panel authorized
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by EC 2.945(8) to review the application and the consultant’s conclusions. The Project Review
Panel shall make a recommendation to the City Manager on the application, and the City Manager
shall provide the Council with the City Manager’s recommendation on the application.
For projects proceeding under the Accelerated MUPTE criteria in EC 2.946(2)(e), the applicant’s
written explanation and other materials included with the application shall be reviewed by staff.
Staff shall make a recommendation to the City Manager on the application and the City Manager
shall provide the Council with City Manager’s recommendation on the application.
Public Benefits:
1.1 Green Building Features. The green building requirements apply only to
the residential occupancy and common areas associated with residential areas (e.g.,
hallways, stairwells, centralized HVAC or hot water heating, laundry facilities) and do not
apply to the commercial areas or ancillary amenities (e.g., parking garage, swimming
pools, recreation centers). Additionally, all projects that provide on-site parking must
install conduits for future electric vehicle charging stations. Documentation of compliance
with the chosen green building pathway must be submitted within 18 months of receiving
a certificate of occupancy.
1.1.1 One - Three Story Multifamily Buildings: Pathways for complying
with the requirement in EC 2.946(2)(f)1. and 2. that projects perform at least 10%
more efficiently than the performance established in the Oregon Energy Efficiency
Specialty Code (OEESC) include:
1.1.1.1 Obtain LEED v4 Homes Design and Construction or
LEED v4.1 Residential BD+C Multifamily Homes certification and
modeled at least 10% above current OEESC; or
1.1.1.2 Obtain Earth Advantage Silver certification and provide a
commissioning report.
1.1.2 Four Stories and above Multifamily Buildings: Pathways for
complying with the requirement in EC 2.946(2)(f)1. and 2. that projects perform at
least 10% more efficiently than the performance established in the OEESC include:
1.1.2.1 Obtain LEED v4 for Homes Design and Construction or
LEED v4.1 Residential BD+C Multifamily Homes certification and
modeled at 10% above current OEESC; or
1.1.2.2 Obtain Earth Advantage Silver certification; or
1.1.2.3 City of Eugene Building and Permit Services review of
project. Model building energy performance shows that the building will
perform 10% above current OEESC performance, utilizing software that
meets the energy modeling guidelines defined in Appendix G of the most
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recent version of ASHRAE 90.1 being used as base model code under
OEESC or use the LEED for homes midrise energy modeling methodology.
Construct to modeled plans, provide a commissioning report within 18
months following issuance of certificate of occupancy, and work with the
City to report multi-family occupancy energy use data to the City for the
life of the MUPTE tax exemption.
Table 1.1: MUPTE Energy Performance Pathways
Pathway Building Size
1-3 Stories >3 Stories
LEED v4 Homes Design and
Construction or v4.1 Residential
BD+C Multifamily Homes +
modeled at 10% above OEESC
v4 Homes Design and
Construction or v4.1 Residential
BD+C Multifamily Homes +
modeled at 10% above OEESC
Earth Advantage Silver Certification +
commissioning report
Silver Certification +
commissioning report
City of Eugene BPS N/A Model at 10% above OEESC +
commissioning report
1.2 Local Economic Impact Plan. In order to ensure that a substantial portion
of the local tax benefit yields a benefit to the local community, applicant shall submit a
Local Economic Impact Plan (Impact Plan), which shall include at least the following
elements:
1.2.1 Demonstrate that more than 50% of the dollar volume of the
combined professional services and construction contracts are or will be from local
firms, as that term is defined in this Rule.
1.2.1.1 Materials are excluded from the dollar volume calculation.
1.2.1.2 Where applicant can provide evidence that a trade is not
available locally, payment for services attributed to that trade may be
excluded from the dollar volume calculation.
1.2.2 Ensure qualified minority and women business enterprises have an
equitable opportunity to compete for contracts and subcontracts. At a minimum,
the Impact Plan shall demonstrate the following:
1.2.2.1 Developer shall access lists of certified minority, women,
emerging small business or disadvantaged business enterprises from the
Certification Office for Business Inclusion and Diversity.
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1.2.2.2 Developer shall search for Oregon Forward Contractors
from whom to procure products and services via the Oregon Forward
Program website.
1.2.2.3 Developer shall advertise in general circulation, trade
association, and minority focused media about prime subcontracting
opportunities.
1.2.3 Developer shall post information about the City’s Rights Assistance
Program in English and Spanish on the job site.
1.2.4 Ensure that the developer, its contractors and subcontractors comply
with wage, tax and licensing laws. At a minimum, the Impact Plan shall
demonstrate the following:
1.2.4.1 Methods are in place to ensure all contractors performing
work are licensed and performing in compliance with ORS 701
(Construction Contractors and Contracts).
1.2.4.2 The developer will provide the City with a list of all
contractors performing work on the project. Before a contractor performs
any work on the project, the contractor must be included on the list on file
with the City. Owner shall confirm that each contractor has valid, current
licensing, insurance, bonding and workers compensation coverage.
1.2.4.3 The developer shall require that each contractor provide an
affidavit attesting to the fact that (1) the contractor, owner or responsible
managing individual for the contractor does not have any unpaid judgments
for construction debt, including unpaid wages; and (2) the contractor is in
compliance with Oregon tax laws described in ORS 305.620 (local taxes)
and ORS Chapters 316, 317 and 318 (state income taxes).
1.3 Moderate-Income Housing Contribution.
1.3.1 The owner of a project located within the area depicted on Map
2.946(2)(d)2. or the area depicted on Map 2.946(2)(e)2. must pay a fee to be
dedicated to moderate-income housing. The fee will be 10% of the total exemption
benefit for the 10-year benefit. The owner may choose to pay the fee annually
during years three through ten of the exemption, or upfront with a 5% discount.
Alternatively, the owner may include not less than 30% of the total units as
moderate-income housing units.
1.3.2 The Project Review Panel provided for in Section 1 of R-2.945-H
shall annually review each project that received an exemption pursuant to the
Standard MUPTE criteria in EC 2.946(2)(d) to ensure conformance with the
moderate-income housing requirements of EC 2.946(2)(d)9.
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1.3.3 If the Project Review Panel finds that the moderate-income housing
requirements are not complied with, it shall report that finding to the City Manager.
If the City Manager finds that the developer or other owner has failed to comply
with the moderate-income housing requirements, the City Manager shall initiate
termination proceedings pursuant to EC 2.947.
1.3.4 Staff shall annually review each project that receives an exemption
pursuant to the Accelerated MUPTE criteria in EC 2.946(2)(e) to ensure
conformance with the moderate-income housing requirements of EC 2.946(2)(d)9.
If staff find that the moderate-income housing requirements are not complied with,
it shall report that finding to the City Manager. If the City Manager finds that the
developer or other owner has failed to comply with the moderate-income housing
requirements, the City Manager shall initiate termination proceedings pursuant to
EC 2.947.
1.4 Project Design and Compatibility. The application must demonstrate that
the proposal addresses the following basic design principles:
1.4.1 Scale, form and quality of the building(s). Buildings are designed
for the human scale, are appropriate to local climate and natural resiliency, engage
the street, promote transparency, help define a sense of place, fit the neighborhood,
and employ high-quality and contextually appropriate materials and colors.
1.4.2 Mixture of project elements. The proposal employs a mixture of
project elements that: contribute to a walkable downtown; encourage biking and
transit use; enrich the streetscape; and support community comfort and safety at all
hours.
1.4.3 Relationship to the street and surrounding uses. The proposal is
designed to engage and enrich the streetscape, as well as respect and enhance the
existing surrounding uses.
1.4.4 Parking and circulation. Parking is designed to provide, to the
greatest extent possible, locations for car sharing, integrated shared-parking
strategies, electric car charging stations, and safe and attractive pedestrian/bicycle
connections between parking and adjacent buildings and streets.
Applicants should refer to the Community Design Handbook in addressing these
design principles.
1.5 Historic and Existing Housing Sensitivity.
1.5.1 Adjacent or Contiguous Historic Locale. Any application for a
project that is immediately adjacent or contiguous to a historic locale shall include
a plan to mitigate impacts to the historic locale. The project shall preserve and
enhance an existing historic locale, as evidenced by a concept plan that has been
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reviewed by a Planning & Development Department staff person with expertise in
design and historic preservation.
1.5.2 Removal of Historic Structure or Potential Historic Structure. No
exemption shall be granted for any property where a historic structure or potential
historic structure has been demolished or removed from the property within the two
years immediately preceding the date of application for the exemption. This
restriction shall be waived if the owner of the property gave notice of the intent to
demolish or move the structure to Eugene Planning staff responsible for historic
review issues at least 60 days before the owner's application for a demolition or
moving permit from the City.
2. Public Benefit Beyond the Period of Exemption. The applicant must
demonstrate that one or more of the public benefits described in the application will extend beyond
the period of the tax exemption.
3. Compliance with Local Law. The proposed construction, addition or conversion
project is or will be in conformance with the following:
3.1 At the time of completion, all local plans and planning regulations,
including special or district-wide plans developed and adopted pursuant to ORS chapters
195, 196. 197, 215 and 227, that are applicable at the time the application is approved; and
3.2 In all phases of development of the project, wage, tax and licensing laws.
4. Project Would not be Built Without Exemption. The applicant must
demonstrate that the project as proposed could not be built but for the benefit of the tax exemption.
The applicant must submit documentation, including a ten-year pro-forma and an analysis of the
projected ten-year cash-on-cash rate of return for the proposed project.
5. Comments from the Appropriate Neighborhood Association. Although
neighborhood association support is not a requirement for MUPTE approval, the application must
include evidence that the applicant and at least one of the applicant’s principals arranged for and
attended one public engagement opportunity with residents in the neighborhood, including the
board of any City-recognized affected neighborhood association, to share information and seek
input. An applicant must provide a copy of comments received from the neighborhood association,
if any are received. Staff must provide all comments received from the Neighborhood Association,
as well as other public comments, to the City Council.
R-2.945-D Application for Exemption.
On or before February 1 immediately preceding the first assessment year for which
exemption is requested, the applicant shall submit to the City Manager, on a form provided by the
City, an application for exemption, as follows:
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1. The applicant's name, address, telephone number and signature of a property owner,
or other documentation of the applicant’s authority to apply for the tax exemption on the owner’s
behalf.
2. A legal description of the property and the assessor's property account number for
the site;
3. A written description of the existing use of the property, including a justification
for the elimination of, or a plan for the relocation of existing sound or rehabilitable housing located
on the property;
4. A schematic drawing, drawn to a minimum scale of one inch equals 16 feet (1" =
16'), which shows the site plan and major features and dimensions of the proposed development,
and a schematic drawing, drawn to a minimum scale of one inch equals 16 feet (1" = 16'), that
shows both a side and front elevation of the proposed development that will be attached to the
approval resolution, if Council decides to approve the exemption.
5. A written statement that:
5.1 Pinpoints the location of the proposed development;
5.2 Describes the number, size, and type of dwelling units, and dimensions of
structures;
5.3 Identifies public and private access, parking and circulation plans, and
landscaping uses;
5.4 Clearly states whether the applicant elects to have the application evaluated
under the Standard MUPTE criteria in EC 2.946(2)(d) or the Accelerated MUPTE criteria
in EC 2.946(2)(e); and
5.5 Describes the public benefits in section R-2.945-C that must be included in
the project, one or more of which will extend beyond the period of the tax exemption,
pursuant to Section 2 of R-2.945-C.
6. Information on the costs and financing and other information required by the City
on the financial feasibility of the project.
7. A Local Economic Impact Plan that complies with Section 1.2 of R-2.945-C.
8. Where applicable pursuant to Section 1.5 of R-2.945-C, a plan to mitigate impacts
to a historic locale.
9. Documentation of neighborhood engagement pursuant to Section 5 of R-2.945C.
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10. The application shall be verified by oath or affirmation of the applicant and
submitted with an application processing fee to be set by the City Manager pursuant to EC 2.020.
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 publication
costs, financial consultant costs, and appraisal costs, if any are incurred by the City in processing
the application. Any additional costs shall be paid to the City by the applicant prior to the granting
of any final approval.
R-2.945-E Recommendations on Applications.
The City Manager shall:
1. Review the application and all supportive material to verify that the applicant has
provided the information required and notify the applicant of any omissions.
2. Publish a one column, 3" minimum display ad in the Register Guard soliciting
recommendations or comments from the public. The ad will advise that written comments may
be submitted to the City for a period of 30 days from the first publication date. Recommendations
or comments shall also be solicited from the neighborhood group(s) (if any).
3. For projects proceeding under the Standard MUPTE criteria in EC 2.946(2)(d),
retain a financial independent outside professional consultant to review the project’s financial
proforma and report results to the Project Review Panel.
4. For projects proceeding under the Standard MUPTE criteria in EC 2.946(2)(d),
convene the Project Review Panel to review the project’s application and the independent
consultant’s conclusions.
5. Within 135 days of submission of an application, the City Manager shall
recommend to the Council that the application be denied, approved, or approved subject to
conditions. The recommendation shall set forth specific findings in support of the City Manager’s
recommendation, based upon this Rule, Council resolutions and ordinances, applicable State
statutes, and the written comments received. The written comments shall be forwarded to the City
Council with the City Manager’s recommendation.
R-2.945-F Compliance Review.
Following approval of an application for tax exemption by the Council, and during the
developer’s design process and before the final design drawings are completed, the developer shall
hold at least one neighborhood engagement opportunity to allow members of that neighborhood
to provide comments on the proposal. At least one of the developer’s principals must attend the
meeting. (This is separate from the pre-application meeting described in R-2.945-C.) In addition,
once the final design is completed and before it is submitted for permits, the developer shall submit
the design to staff to review conformance with the design attached to the approval resolution. The
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City Manager may determine in writing that proposed deviations from the approved design provide
the same or greater degree of adherence to the design attached to the approval resolution. Staff
will also allow the neighborhood an opportunity to review and comment on that final design.
If construction commenced prior to Council approval of a tax exemption, the applicant
shall review the construction documents and other documents with the Project Review Panel (if
proceeding under the Standard MUPTE criteria in EC 2.946(2)(d)), or with staff (if proceeding
under the Accelerated MUPTE criteria in EC 2.946(2)(e)) prior to completion of construction to
ensure that the project will comply with the approval conditions upon completion.
R-2.945-G Reports.
If requested by the Council, the City Manager shall submit reports to the Council for
transmittal to the House and Senate Revenue Committee of the Oregon Legislature describing the
effect of this program in the City of Eugene. The reports shall describe the number of housing
developments and residential units to which the exemption applies, the value of the developments
constructed, the value of the tax exemptions granted, and the general effectiveness of the property
tax exemption as an incentive for construction of housing. The reports shall be submitted to the
Council sufficiently in advance so as to permit the Council to file them at least 60 days prior to the
beginning of each regular legislative session.
In addition, the Project Review Panel shall assist the City Manager in preparing annual
reports to the Council on the progress of the projects that will also include information about the
program volume cap and review of the documentation to evaluate compliance with workforce
housing requirements, unless the project’s owner is paying the equivalent moderate-income
housing fee or is exempt pursuant to EC 2.946(2)(d)9. The regular reporting from the developer
shall include the home city or zip code of the construction labor workers, and any other information
required by this Rule.
R-2.945-H Review Panel Selection Process.
1. A Project Review Panel, which will provide third-party review of individual
applications proceeding under the Standard MUPTE criteria in EC 2.946(2)(d), shall be selected
as follows:
1.1 Two at-large neighborhood representatives selected by neighborhood
association boards. The City’s Human Rights and Neighborhood Involvement staff shall
assist in the selection of these representatives.
1.2 Two representatives selected by the board of the neighborhood association
from the neighborhood in which a proposed project is located. City staff will work directly
with the specific neighborhood association board on an as needed basis as soon as an
application is received.
1.3 Six technical professionals from the following six groups : architects/green
building specialists ; building trades union ; developers; environmental profes sionals; public
health professionals ; and human rights representatives. These representatives shall be
selected by the City Manager as follows:
1.3 .1 Those interested in a position shall submit a letter of intere st and
provide evidence of their technical expertise ; and
1.3.2 Applicants for the building trades union seat must be a union
member or have a written recommendation from a building trades union.
Applicants for the human rights representative seat must be a member of a human
rights organization or have a written recommendation from a human rights
organization.
2. A Program Review Panel shall be comprised of the eight members described in
Rule R-2 .945-H, sections 1.1 and 1.3 , and shall submit reports to the City Manager concerning the
addition of eligible areas and , at least every 12 months , review the efficacy of the program.
Dated and effective this 24th day of March, 2025.
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Sarah Medary
City Manager