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HomeMy WebLinkAboutOrdinance No. 20472COUNCIL ORDINANCE NUMBER 20472 COUNCIL BILL NUMBER 5047 AN ORDINANCE CONCERNING LOW - INCOME HOUSING PROPERTY TAX EXEMPTIONS AND AMENDING SECTIONS 2.916, 2.920, 2.938, 2.939 AND 2.940 OF THE EUGENE CODE, 7971. ADOPTED: April 13, 2071 SIGNED: April 74, 2011 PASSED: 8/1 REJECTED: OPPOSED: ABSENT: EFFECTIVE: May 15,2011 ORDINANCE NO. 20472 AN ORDINANCE CONCERNING LOW- INCOME HOUSING PROPERTY TAX EXEMPTIONS AND AMENDING SECTIONS 2.916, 2.920, 2.938, 2.939 AND 2.940 OF THE EUGENE CODE, 1971. THE CITY OF EUGENE DOES ORDAIN AS FOLLOWS: Section 1 . Sections 2.910 and 2.920 of the Eugene Code, 1971, are amended to provide: 2.916 Low - Income Housing Property Tax Exemption - Annual Application Renewal. (1) Applicants who have received a property tax exemption under section 2.912 of this code must reapply each ' year, following - the procedures set forth in section 2.912, no later than March 1 in order to be qualified for property tax exemption for the following tax year. (2) Applicants for property tax exemption under section 2.912 of this code shall apply for, and may be eligible for property tax exemptions for tax years beginning on or after July 1, 1 994, and before July 1, 2014. 2.920 Low - Income Housing Pronertv Tax -Exemption -Assessment Exemption. (1) Property for which an application for a property tax exemption has been approved under the provisions of sections 2.910 to 2.922 shall be exempt from ad valorem taxation for one tax year beginning on or after July 1 of the year immediately following the calendar year in which construction is completed, determined by that stage in the construction process when, pursuant to ORS 307.330, the property would have gone on the tax rolls in the absence of the exemption. The exemption provided for herein shall be in addition to any other exemption provided by law. (2) Applications for property tax exemption under section 2.912 shall apply to and may be approved for tax years beginning before July 1, 2914. Section 2. Subsection (1)(g) of Section 2.938 of the Eugene Code, 1971, is amended to provide: 2.938 Low - Income Rental Housing Property Tax Exemption - A lication. (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: Ordinance - Page 1 of 3 (g) Evidence that the property is owned or being purchased by a non- profit corporation which meets the criteria for a public benefit corporation as described in ORS 65.001(37), or a religious corporation, as described in ORS 65.001(39); Section 3. Subsections (2)(h), (3)(c) and (3)(d) of Section 2.939 of the Eugene Code, 1971, are amended to provide: 2.939 Low - Income Rental Houslna 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 approval of an application, and the council shall grant the exemption upon determining satisfactory compliance with or mitigation of the following criteria: (h) The proposed development does not cause destruction Historic properties (as defined in section 9.0500 of this code), except: . 1. Where development has proceeded according to historic property moving and demolition procedures as set forth in sections 9.8160, 9.8180 and 9.8185 of this code, or 2: - The. property is granted an exception by the council; and, � (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: (c) The applicant's application was filed prior to January 1, 2020; (d) The property is owned or being purchased by a nonprofit corporation organized in a manner that rneets tFie criteria fora public benefit corporation, as described under ORS 65.001(37) or for a religious corporation, as described under ORS 65.001(39); and Section 4 . Subsections (1)(a), (4) and (5) of Section 2.940 of the Eugene Code, 1971, are amended to provide: 2.940 Low - Income Rental Housina Property Tax Exemption - Terminations. (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 developrnerit 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., 2020, Ordinance - Page 2 of 3 and no extensions or exceptions as provided in subsection (4 ) hereof have been granted; or, (4) Upon receipt of a request from the property owner, the council may, by resolution, extend the deadline beyond January 1, 2020 for completion of construction of the low- income rental housing for a period not to exceed 12 consecutive months, i.e., January 1, 2021, if it finds the failure to complete construction by January, 1, 2020 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 30 7.531 or 307.533. (5) The low - income housing granted an exemption by the council shall be exempt from ad valorem taxation for 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 o_f.the low- income rental housing unit, or land that is being held for future developrnent of low income rental housing. The exemption shall be in addition to any other exemption provided by law. In the final year of low- income housing tax exemptions, applications for subsequent low - income housing tax exemptions for the property may be submitted. Such applications shall be processed in accordance with sections 2.937 to 2.940 of this code. Section 5 . The City Recorder, at the request of, or with the consent of the City 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 13 day of April, 2011 Approved by the Mayor this /Y day of April, 2011 Deput Cit R111 Mayor 0 Ordinance - Page 3 of 3